Awami govt set to destroy backbone of Bangladesh economy

[idune]

Dhaka in 10 global worst business cities

Aon Hewitt, a US based human resource consultancy firm has identified Dhaka in a group of 10 worst business cities in the world. The study was carried out in terms of recruitment, employment and relocation prospects.

Of the 138 cities selected by Aon Hewitt — based on population size, rate of population growth, level of business investment and geographic spread among the cities covered — Dhaka came in at 130 of the People Risk Index.

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The lack of a stable and transparent government, the study said, is a major obstacle to implementing and enforcing business-friendly employment practices and investing in talent development initiatives in these cities.
“Furthermore, the lack of government investment in developing and improving the education and talent development infrastructure increases an employer’s risk in finding skilled talent, as the current infrastructure is unable to support employers’ workforce demands.”
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Holiday

 

[idune]

Awami League further constraining economy by artificially proping up reserve, impact from this could severe. In addition Awami League crippling local banks with policy and allowing loan from foreign banks. When repayments from these loans will hit reserve impact will be felt throughout system.

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Forex reserve crosses $15b mark on BB dollar buying spree
Staff Correspondent

The country’s foreign exchange reserve on Tuesday crossed the $15-billion mark for the first time due mainly to the Bangladesh Bank’s dollar buying spree, slump in imports in the first nine months of this financial year and increased inflow of remittance, said official of the central bank.
A BB official said that the foreign exchange reserve had stood at $15.069 billion on Tuesday from $14.936 billion on Monday.
The BB purchased dollars worth more than $4 billion from the commercial banks in this financial year with a view to stopping devaluation of the greenback against the local currency taka which played a significant role in crossing the $15-billion mark of the foreign exchange reserve, he said.

Full Report:
Forex reserve crosses $15b mark on BB dollar buying spree

 

[idune]

Manpower export drops to half

Manpower export from Bangladesh dropped sharply this year mainly due to virtual closure of the UAE labour market to its workers, officials said Monday.

Export of Bangladesh manpower came down since September 2012, when the UAE government imposed restrictions on entry visas to Bangladeshi workers citing security concerns as the reason, said Bureau of Manpower, Employment and Training officials.
Manpower export during the first five months of this year dropped by about 50 per cent compared to the same period of the last year, they said.

They saw no immediate prospects of a radical change in the situation unless Bangladesh finds new employment destinations for its workers.According to immigration clearance of BMET 1,74,277 workers got overseas jobs in the first five months of the current year compared to 3,21,727 during the corresponding period of 2012.

Malaysia would be a big destination when it starts full scale recruitments, a senior BMET official told New Age. A five-member government delegation led by Expatriate Welfare and Overseas Employment Ministry secretary held several meetings with UAE authorities during a recent visit to Abu Dhabi, officials said. EWOW ministry officials said the UAE was unlikely reopen its job market for Bangladeshi workers any time soon as several long standing issues remain unresolved.The UAE officials called for corrective measures over a series of gross irregularities committed by Bangladeshi migrant workers, they said.

According to BMET, only 2,957 Bangladeshi workers got jobs in UAE from January to April of the current year compared to 1,14,024 during the same period of last year. A joint initiative from the government and Bangladesh Association of International Recruiting Agencies alone could bring dynamism in manpower export, BAIRA, secretary general Ali Haider Chowdhury told New Age. BAIRA is keen to work with the government in reopening the closed job markets, he said.

 

[idune]

Government may ignore economic, political realities: CPD

Staff Correspondent

Centre for Policy Dialogue executive director Mustafizur Rahman and distinguished fellow Debapriya Bhattacharya are seen at a briefing at the CPD office in the city on Monday. â�� New Age photo Centre for Policy Dialogue executive director Mustafizur Rahman and distinguished fellow Debapriya Bhattacharya are seen at a briefing at the CPD office in the city on Monday. — New Age photo

The Centre for Policy Dialogue has said it anticipates that the government is going to formulate a budgetary framework for the next fiscal year ignoring economic and political realities.The new government which is expected to take charge at the beginning of the next year might face huge challenges in implementing the national budget for FY 2013-2014, it said.

‘It is anticipated that the proposed fiscal framework will be formulated ignoring economic and political realities existing in the country. As a result the new government may face considerable challenges while implementing it,’ CPD observed in its analytical review of macroeconomic performance in FY 2013.

Full report:
Government may ignore economic, political realities: CPD

 

[ExtraOdinary]

Awami league and her highness Ms. Sheikh Hasina's visionary leadership has put BD on the international stage. Hasina is BD and BD is Hasina. Haters can hate

 

[idune]

Produce only 10 pc electricity - Quick rentals taking away 80pc subsidy

Anisul Islam Noor

As peak summer is drawing closer and load shedding is running high, the government dependence on rental and quick rental power plants is also going up in an election year what may be its cost in terms of subsidy to the nation.

The government had earlier planned to shut some quick rental power plants, because the authorities have to pay them for unutilized capacity in one hand and for huge subsidy on fuel supply to old, obsolete plants which use more fuel and produce less power on the other.

But its failure to expedite implementation of some big regular power plants or rework some of the plants lying out of power generation, is only forcing it to rely more and more on rental and quick rental plants. This in turn is forcing people and business to pay higher cost of electricity, besides payment of huge subsidy by government which may be around Tk 9,000 crore this year.

Rental and quick rental power plants, now 41 in operation however, eat away two thirds of power subsidy although they are generating less than 30 percent of total electricity now available in the national grid. Among those, 17 quick rental power plants are eating 8o percent of subsidy by generating only 10 percent electricity, Power division official said.

He said, Power development Board (PDB) pays Tk 12 crore daily now as subsidy to therental and quick rental power plants. PDB lost Tk 4,187 crore to balance the gap between buying cost and selling cost of electricity from rental and quick rental power plants during the last fiscal year. It may even surpass Tk 6000 crore this year. PDB sources said.

"The government should try to phase out the rental power plants as early as possible to supply power to the nation," the Centre for Policy Dialogue (CPD) said Monday in view of its adverse impact on macroeconomic stability of the nation.

Power sector subsidy in the current fiscal may reached an all time high at around Tk 9,000 crore because of buying electricity at higher cost from quick rental power plants, Power division official said.

PDB is forced to purchase electricity from private producers at exorbitant rates ranging up to Tk 17 and Tk 22 per unit in some cases under the power generation contracts and it account for 80 per cent of subsidy, he said. On the other hand, PDB is selling this electricity to buyers at rates varying from Tk 3.15 to 5.5 at households to Tk 9 to 12 to business and industry.
Thus for every unit of electricity the loss for the exchequer stands enormous.


Alone in July last year, the government paid a subsidy bill of Tk 534 crore to quick rental power plants out of a total subsidy of Tk 650 crore, the PDB official; said explaining the overwhelming burden of quick rental plants. The present government has mostly set up the 17 quick rental power plants now in operation.

Referring to growing demand for electricity in the peak summer season, the PDB source said the government dependence on quick rental is only increasing. The policy focus is both political and business. The government is continuing the quick rental plants, set up by persons closer to political establishments to bring them undue benefits as part of the benefit are reportedly recycled to powerful quarters within the government.

So there is hardly any chance of shelving the rental and quick rental plants under the next few months of the government. Rather some new plants may be set up to supply more electricity at whatever the cost, the sources said.

http://www.thenewnationbd.com/newsdetails.aspx?newsid=75993

 

[Skies]

Quick Rental is a great deceptive scheme by the great Saitan AL to make the party rich and wash the eyes of people.

Although people are enjoying less load shedding but the other developments are minimized which will cause suffer in future I think.

 

[idune]

BB counts Tk 5,519cr in losses from dollar, gold reserve

Bangladesh Bank counted Tk 5,519.11 crore in losses from its foreign currency, gold and silver reserve in the past financial year 2012-2013, according to latest BB data.

The BB made a profit of Tk 3,952.27 crore in the FY12 by investing in currencies, gold and silver.

BB officials told New Age on Thursday that the central bank had counted the amount in losses as the local currency taka had appreciated significantly against the dollar, and the price of gold and silver decreased on the local and foreign market.

A BB official said the central bank had invested a major portion of foreign currencies with the US dollar resulting that the BB counted a loss of Tk 3,847.97 crore in the FY13 from a profit figure of Tk 3,173.10 crore in the FY12.The BB record book showed that the central bank had bought a highest amount of dollars worth $4.53 billion in the FY13 since FY05.

With the dollar purchase and rise in remittance inflow and lower import growth the BB’s international reserve including dollar and gold, soared to around $15.31 billion in June 2013 from around $10.38 billion in July 2012.Around 70 per cent of Bangladesh’s forex reserve is tied up to the US dollar, followed by around 20 per cent to the euro. Gold accounts for around six per cent of the reserve.

The BB official said that the central bank had been compelled in purchasing the record amount of dollars in the last financial year due to lower import growth against a higher export earning and increased inflow of inward remittance.The BB had taken the move also with a view to curbing depreciation of the greenback against the local currency taka, but its effort failed as the value of dollar depreciated significantly, he said.

The BB data showed that the dollar depreciated by 4.95 per cent against the taka in the FY13 from that of the FY12, as the greenback was quoted Tk 77.75 on June 30, 2013 and Tk 81.80 on June 30, 2012.The dollar, however, appreciated by 10.30 per cent in the FY12 from that of FY11 as the greenback was quoted Tk 74.10 on June 30, 2011.

The BB official said that the central bank had also made a large amount of loss by investing gold and silver in the FY13, as the price of the two metals decreased significantly on both the global and local market. The BB counted a loss of Tk 1,657.60 crore in gold investment in the FY13 against a profit of Tk 827.15 crore in the FY12.

The gold price on the international market fell to around $1,200 per ounce in June this year from around $1,600 in July 2013 The BB, however, registered a loss in silver investment both in the FY13 and FY12. The central bank data showed that the loss amount had increased by investing silver in the FY13 as the loss figure was Tk 13.68 crore in the last financial year from Tk 4.98 crore in the FY12.The silver price on the international market came down to around $19.66 per ounce in June 2013 from around $27.32 in July 2012.

The BB official said, ‘The loss in foreign currencies, gold and silver have not put any impact on the central bank’s annual profit and loss balance sheets. The BB keeps aside the loss or profit of the reserve from its annual balance sheet.’ The BB data showed that the operating profit of the central bank in the FY13 increased by Tk 7.61 per cent to Tk 4,152.38 crore from Tk 3,858.63 crore in the FY12.

In the FY13, the BB had earned significant amount of profit from interest on government borrowing. The profit from the interest on the government borrowing in the year rose by 5.20 per cent to 3,145.55 crore from Tk 2,990.17 crore in the FY12, showed the BB data.The profit from the interest of REPO, special REPO, liquidity support facility and other sources, however, decreased by 6.19 per cent to Tk 1,334.72 crore in the FY13 from Tk 1,422.86 crore in the FY12.The official said, ‘The BB gave a large amount of interest to the banks which invested their money in the reverse REPO in the FY13. For this reason, the central bank counted in losses in the sector.Another BB official said the central bank usually transferred its net operating profit to the statutory fund, interest reserve account, currency fluctuation reserve, revaluation reserve and asset renewal and replacement fund.
After transferring the amount, the BB will pay Tk 3,630.20 crore to the government in the FY13 which was higher by 4.28 per cent from that of the previous financial year, he said. In the FY12, the BB paid Tk 3,481.10 crore to the government.

BB counts Tk 5,519cr in losses from dollar, gold reserve

 

[idune]

[AL]Politics blamed for unrest in RMG sector

A minister’s open involvement in garment workers’ politics has been blamed for the latest unrest in the country’s RMG sector. People tend to believe that narrow politics must not destabilize the industry.

Violence in the country’s garment sector took a fiercer turn as the garment workers passed off the 6th consecutive day vandalizing and agitating on the streets on Thursday last which indicates that the industry is facing a fresh crisis and destabilization. The government deployed Border Guard Bangladesh (BGB) personnel at Gazipur on the weekend to protect factories and vehicles in the Dhaka-Tangail highway.

Apart from Gazipur, the violence has spread to Ashulia, Savar and Narayanganj around the capital. It is also reported in the port city of Chittagong as the workers are putting a united front to realize the minimum wage package. Owners have so far offered a 20 per cent wage hike from existing Tk 3000 minimum wage only to cause serious reaction from the workers’ side.

There is a consensus that the workers must get a decent wage package in the wake of the Rana Plaza collapse which brought the plight of the garment workers to headlines in the global media. But various quarters are also reportedly at work to exploit the workers’ anger against the factory owners to create rooms for realizing their own political interest.

In fact, the demand for higher wages turned into

Shipping Minister’s role
a crisis from last Saturday when Shipping Minister Shahjahan Khan gathered garment workers at a rally at the city’s Suhrawardy Udyan from the industrial belts around the capital. He arranged hundreds of transports for the workers to carry them to the city centre and declared he has strong support behind them.

Workers were inspired by the call of the minister from early morning of the day and went berserk as they took to the street at mid-morning. Violence immediately spread to Gazipur and Ashulia area and later to Savar and Narayanganj industrial belt. At Gazipur workers attacked an Ansar camp and reportedly looted arms and ammunition, set fire on vehicles and attacked factories.

The matter did not slip attention of others. People immediately started questioning as to why a minister has become so enthusiastic to organize garment workers when he is known as a leader of the transport workers and now holding a cabinet portfolio of the ministry of shipping.

There is a minister for labour and yet another minister for textile but what prompted the shipping minister to take the leadership of the garment workers in hand at a sensitive political situation.

No government reaction
But it appears strange that there is no government reaction for breaking the internal discipline of the functional order of the cabinet. Two years ago, when minister Shahjahan Khan openly came intervening with the functioning of the ministry of communication in matters related to issuing of driving license to illiterate and unskilled people, there was similar acquiesce from the government side. But this time the minister’s indulgence to garment workers politics has been blamed for adding provocations to workers to become violent. BNP secretary general Mirza Fakhrul Islam Alamgir said garment sector was normal but the minister’s call has turned the workers to abandon work place and become violent. He said, clearly the minister is exploiting the situation to harvest political gain.

Labour leaders stunned

Industry owners and labour leaders are similarly stunned by the open involvement of Shahjahan Khan to garment politics. They held the view that the garment sector is facing a new conspiracy towards destabilization. Vested interest quarters at home and abroad are working to create renewed image problem to the global community similar to one it faced after the collapse of Rana Plaza in which over 1100 workers perished.

Pointing to a news item by BBC last week, they said it was promotional news and vested interest quarter had a hand behind it to harm the country’s garment sector which is by far the largest employment sector and the highest foreign currency earner to the nation. Obviously there may be conspiracy around it; but open political exploitation had never been so acute as it stands out now.

Meanwhile, buyers have expressed concerns. One Spanish retailer’s representative in the capital said they are observing the situation adding with every unrest in the garment sector buyers also suffer from unrest about change in shipment schedules. If the situation continues, buyers may tend to look for third country sources.

Industry owners on Thursday said several hundred factories remained closed throughout last week and their production loss appears around Tk 500 crore so far. The cost of airlifting urgent deliveries is not included in this estimate.

The industry is fighting to sustain attacks while the core issue of wage fixation is hanging in the balance. A newly formed wage commission is working on the matter but agitation in the industry has created a situation in which a free decision is becoming difficult. There is no doubt that workers should get a decent wage. But it is also true that a long jump from Tk 3000 to Tk 8000 may hit the affordability of many.

The industry is at the crossroads. It must achieve a transition by working out higher productivity and managerial efficiency. The days of family- run industry is over and a corporate outlook must slowly replace the existing feudal business practice.

Minimum wage
Centre for Policy Dialogue (CPD) has put forward a timely solution to the issue. It has suggested that the BGMEA may agree to pay Tk 6560 as minimum wage for the first year to elevate it to Tk 8260 in the second year. Meanwhile owners must reorganize their production and marketing. CPD has recommended the scale after a survey in the wake of the debate on minimum wage saying Tk 6,444 is the upper poverty line and any minimum wage may be at its border line.

It must be noted that owners’ greed or inefficiency must not cause the workers to sell their labour at highly exploitative rates. In free market, an inefficient owner has to quit to make rooms for more capable ones. These are hard mathematics and there is no room for politics to overshadow business. There is an urgent need for workers, owners and the government to work together a solution to restore discipline in the industry and return the workers to their machine. It will save the industry and the workers will survive if only the industry survives.

Holiday

 

[idune]

Awami League ministers and Sheikh Hasina's son and advisors loot 1200 cr taka bill due to Bangladesh Telecom and Regulatory Commission (BTRC). Even after repeated try from BTRC Awami League leaders did not make payment and used their power to get away with whole sale looting from Bangladesh economy.


Report in Bangla

 

[idune]

IMF cuts GDP growth projection to 5.8pc
Staff Correspondent

The International Monetary Fund on Tuesday cut further the projection of GDP growth of Bangladesh to 5.8 per cent in the current fiscal year 2013-2014.The lender in its October issue of World Economic Outlook 2013, released on Tuesday, cut the country’s GDP growth projection for this fiscal year for the second time.

The IMF in its April issue of WEO said that Bangladesh’s GDP in the year would grow by 6 per cent, lowering its earlier projection of 6.1 per cent made in October 2012.The international lender, however, did not specify why the growth projection was lowered for Bangladesh in the WEO although a visiting IMF delegation in Dhaka on Monday said political unrest ahead of the general elections would push down the GDP growth below 6 per cent. ‘Unrest and political uncertainty in the run-up to the elections are affecting economic activity by disrupting supply and curbing investment appetite, with real GDP growth now expected to moderate below 6 per cent in the fiscal year 2014,’ Rodrigo Cubero, the head of visiting IMF delegation, said at a news briefing in Dhaka.
He said indicators like import, export, private sector credit growth, tax collections and remittance inflow had slowed down in recent times due to volatile political environment and labour unrest, especially in garment sector.

Cubero said that the economic slowdown might continue for the next six months and the economic activities would pick up from the next fiscal year.The Asian Development Bank last week said that the country’s GDP growth would decline to 5.8 per cent this FY14 because of slowing business activities amid political tension ahead of the general elections. The IMF in the October WEO also cut the country’s growth projection for next fiscal year 2014-2015 to 6 per cent from its earlier projection of 6.4 per cent.

IMF cuts GDP growth projection to 5.8pc

 

[UKBengali]

5.8% a year is still pretty good growth for BD.

It is near enough the six per cent a year that it has achieved over the last 5 years.

 

[Saiful Islam]

when will a pdf Bangladeshi member will post something positive about awami govt ??

In my country Awami league is frowned upon by people no one ever says anything positive about them even their own supporters.

 

[idune]

Govt emptying banks before tenure ends
Borrows Tk 9,634cr from commercial banks in 3 months

The government has borrowed Tk 9,634.11 crore from the commercial banks in just three months of the current fiscal year keeping an eye on the next national elections, said bankers on Wednesday. According to the latest Bangladesh Bank data, the government’s net borrowing in July-September stood at around Tk 1,713.61 crore as it borrowed heavily from the commercial banks and repaid some of its loans it had taken from the central bank earlier.


‘The government is borrowing heavily from the commercial banks as it is nearing the end of its tenure. It has also reduced borrowing from the central bank,’ said a BB official.He said as the state-run commercial banks were facing capital shortfall, the government was borrowing heavily from the private commercial banks.

Although the banks will not face any problem in short-term as they have enough liquidity but in the next few months they might face problem as most of the loans which the government has taken through long-term treasury bonds would remain stuck for years, the official said.

BB data showed that till September 26 the government borrowed Tk 9,634.11 crore from the commercial banks and repaid the central bank Tk 7,920.50 crore.The BB official said that the government repaid the loans to BB after the central bank deposited its profit of Tk 4,072 crore for the last financial year 2012-13 to the government.BB data showed that till September 5, the government had a borrowing of Tk 5,998.07 crore from the commercial bank in the current fiscal year.

But, it took more than Tk 3,600 crore from the banks in over 20 days.Managing director of a private commercial bank told New Age on Wednesday that the government had increased borrowing from the commercial banks because of its increased expenditure ahead its tenure. ‘Many of the projects of the government are at final stage, that’s why it is borrowing heavily to pay for the projects,’ he said.


He, however, said that although the banks had enough liquidity, they might face trouble in six month times, after the elections, because of the increased government borrowing through treasury bills and bonds.

Former BB governor Salehuddin Ahmed told New Age that the government expenditure on politically motivated projects had increased ahead of the end of its tenure and the next elections. ‘Besides, the government has announced dearness allowance for the public servants which will also push up the government borrowing,’ he said. He said that such a huge borrowing from the banks would push up inflation.


‘The current business environment in the country is not expectable where private sector has become stagnant and the government is borrowing heavily,’ he said.

Another BB official said, ‘We apprehend that the government’s bank borrowing will rapidly increase in the rest of the period of its tenure as it has now given more attention to implementing those projects which will satisfy the voters ahead of the coming general elections.’

The government has set a target to take loan amounting to Tk 25,993 crore from the banking sector in FY14.BB officials said that the auction schedule of the T-bills and bonds were set in such a way that the government could borrow heavily in the first six month of the current fiscal year.

The BB data showed that the government’s outstanding bank borrowing, which had accumulated over the years, stood at Tk 1,14,366.05 crore as of September 26, 2014.

http://www.newagebd.com/detail.php?date=2013-10-10&nid=68695#.UlXzPlPy0is

 

[idune]

double post...