Bangladesh Economic & Infrastructure Development - Updates & Discussions

[UKBengali]

Max generation peak does not equal the total year integral. Why dont you check actual relevant numbers? Too hard for low IQ?

https://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC?locations=BD

310 kwH in 2014 per capita consumption.

You claim a doubling to 2018 in realised aggregated consumption....so around 600 by now.

Instead it seems to be around 450 kwH in 2017:

https://en.wikipedia.org/wiki/List_of_countries_by_electricity_production

(74,700 / 165)

Original source: https://www.bp.com/content/dam/bp/e...l-review/bp-stats-review-2018-full-report.pdf

Not to mention the fact electricity is only a small portion of total energy consumption (in oil equivalent).

1 kwH = 0.086 kg of oil equivalent

310 kwH (BD electricity per capita consumption in 2014) = 27 kg of oil equivalent

Its total energy consumption per capita (in 2014) = 222 kg of oil equivalent per capita.

So literally you are making a hue and cry, be all + end all argument over the increases found in what...12% of BD energy consumption profile to begin with?

I think its very clear who has the "low cranial capacity" here. It will be confirmed as usual by the aggregate data when its actually published in world bank etc....its always hillarious when the BD STRONK ego gets deflated right on cue (Walton STRONK exports 1 billion by 2018?........naaaaah give us another 10 years pls...and then give us another 10 years when its 2028 mmmm k?).

Thanked by four dumb and butt-hurt dudes so far.

Now try to explain away how BD electricity consumption is able to increase by twice between 2014-2018 while other areas of energy usage do not also increase rapidly?
Electricity consumption increase happens in a vacuum?

 

[Nilgiri]

Impose much higher tax on expensive items from China and India.

Its not that simple. One has to analyse how important such items are to various other cogs of BD economy...and what is the viable substitution rate BD can have to replace (over time) with local production.

Worst combination to highlight this would be to tax (just becuz its "expensive") something that is both vitally important to BD larger economy (i.e revenue and production it creates in further manufacturing or services etc) and which Bangladesh has no easy way to subsititute with current capital buffers + priorities it has.

Basically you would start to destroy your own GDP by doing so.

The reverse of course can be looked at (taxing expensive things that do not have much participation in feedback loops in BD economy and are also things BD can easily produce right now locally)...and of course an approach for things that satisfy just 1 out of 2 of these criteria.

But needs careful approach....rather than tax it because its expensive etc. Even a mercedes car provides employment for car cleaners and car drivers etc (not to mention it becomes a clear long term taxable wealth asset instead of kept underwater in black economy)....you have to analyse the full spectrum of every class of good's trends/feedbacks in larger BD economy.

 

[Nilgiri]

Now try to explain away how BD electricity consumption is able to increase by twice

It didn't. 310 to 450 (from 2014 - 2017) is not a dbling (again you seem to have it in your low capacity head that peak rate = 1:1 correlation with total integral....Mr. Dirac would find you quite amusing...Mr. Laplace would have you thrown out of the room....doubt you know why I bring them up in first place...mr severely compromised IQ).

while other areas of energy usage do not also increase rapidly?

Yeah why would a 12% component grow differently to the rest of the 88% (non-electricity energy)? Gee a real tough one given their very different demand portfolios. Hint: you are a LDC.

Electricity consumption increase happens in a vacuum?

No, but neither does it have to be 1:1 with non-electric energy....and the biggest low IQ stretch is thinking a 12% component trend is scaleable to the rest of the 88% automatically.

Again you can wait and see for yourself (just like the walton export target reality check) on the world bank data. The BP energy handbook analysis is already deflating your ludicrous feelz claim....what else can we expect between actual real data and a BAL STRONK-devotee clown?

 

[Nilgiri]

We indeed need to be cautious. FDI is welcomed. Rising trade deficit is not.

Especially when the FDI is just designed to import more Chinese stuff in the long run rather than impart technical know-how for local long term substitution/technical capacity etc.

But BD cant be too choosy I suppose given its at a nascent stage and running a trade deficit on a not very diverse export portfolio (i.e significant capital pressure developed outside).

Bd simply has to keep bulking up (and hopefully more diversely as it can manage...cant just be doing bicep curls ) so it can bargain better in future.

 

[SBUS-CXK]

Especially when the FDI is just designed to import more Chinese stuff in the long run rather than impart technical know-how for local long term substitution/technical capacity etc.

But BD cant be too choosy I suppose given its at a nascent stage and running a trade deficit on a not very diverse export portfolio (i.e significant capital pressure developed outside).

Bd simply has to keep bulking up (and hopefully more diversely as it can manage...cant just be doing bicep curls ) so it can bargain better in future.

China has done this, like Bangladesh.

 

[Nilgiri]

China has done this, like Bangladesh.

Your exports even in the 80s have always been a lot more diverse than BD (thanks to Deng reforms). You didn't get a LDC quota thing either (for RMG).

Both of these are causing some long term dependencies in BD which are not good....and makes the transition lot more fragile compared to China and India.

 

[doorstar]

It didn't. 310 to 450 (from 2014 - 2017) is not a dbling (again you seem to have it in your low capacity head that peak rate = 1:1 correlation with total integral....Mr. Dirac would find you quite amusing...Mr. Laplace would have you thrown out of the room....doubt you know why I bring them up in first place...mr severely compromised IQ).



Yeah why would a 12% component grow differently to the rest of the 88% (non-electricity energy)? Gee a real tough one given their very different demand portfolios. Hint: you are a LDC.


No, but neither does it have to be 1:1 with non-electric energy....and the biggest low IQ stretch is thinking a 12% component trend is scaleable to the rest of the 88% automatically.

Again you can wait and see for yourself (just like the walton export target reality check) on the world bank data. The BP energy handbook analysis is already deflating your ludicrous feelz claim....what else can we expect between actual real data and a BAL STRONK-devotee clown?

I am wondering whether we should tell them (and list) LDC STRONKs about the billions of dollars worth of grants, interest free loans, and charity that has been poured into this corrupt and bottomless swamp (and other LDC related benefits) at the expense of hard working taxpayers of the world?

 

[UKBengali]

I am wondering whether we should tell them (and list) LDC STRONKs about the billion of dollars worth of grants, interest free loans, and charity that has been poured into this corrupt and bottomless swamp (and other LDC related benefits) at the expense of hard working taxpayers of the world?

What is your ethnic origin dude?

It didn't. 310 to 450 (from 2014 - 2017) is not a dbling (again you seem to have it in your low capacity head that peak rate = 1:1 correlation with total integral....Mr. Dirac would find you quite amusing...Mr. Laplace would have you thrown out of the room....doubt you know why I bring them up in first place...mr severely compromised IQ).



Yeah why would a 12% component grow differently to the rest of the 88% (non-electricity energy)? Gee a real tough one given their very different demand portfolios. Hint: you are a LDC.



No, but neither does it have to be 1:1 with non-electric energy....and the biggest low IQ stretch is thinking a 12% component trend is scaleable to the rest of the 88% automatically.

Again you can wait and see for yourself (just like the walton export target reality check) on the world bank data. The BP energy handbook analysis is already deflating your ludicrous feelz claim....what else can we expect between actual real data and a BAL STRONK-devotee clown?

Ouch, looks like the reference to cranial or lack of capacity has touched a nerve there!

 

[Homo Sapiens]

http://www.newagebd.net/article/56492/70pc-japanese-firms-in-bangladesh-want-to-expand-business

70pc Japanese firms in Bangladesh want to expand business

Bangladesh Sangbad Sangstha . Dhaka | Published: 00:43, Nov 19,2018 | Updated: 01:06, Nov 19,2018



About 70 per cent of Japanese companies in Bangladesh wanted to expand their business in the next one to two years as their confidence had improved, said the Japan External Trade Organisation country representative in Dhaka D Arai on Sunday.

‘About 270 Japanese companies are operating their businesses in Bangladesh. Even after the Holey Artisan incident in 2016, no single Japanese company withdrew businesses from the country,’ said the JETRO country representative in Dhaka at a press conference held at the JETRO office in the capital.

The Japan Bangladesh Chamber of Commerce and Industry organised the press conference titled ‘Current Trend of Japanese Companies in Bangladesh’.

D Arai, also the JBCCI president, said the Japanese investors were looking for an alternative destination like Bangladesh, pulling back their investments from China for the high wages and production cost.

He said the Japanese investors were showing keen interest to invest in Bangladesh as the wages in the country was the lowest among the Asian and Oceania countries as well as one with the lowest production costs in the region.

‘Garment sector wages of workers in China is four times higher than in Bangladesh. Japan, thus, wants to shift its companies to other countries, including Bangladesh,’ he added.
He said nearly 70 per cent of local employees would be increased in Japanese companies next year as the government had taken various initiatives to increase the number of skilled manpower.

D Arai informed that the development of Japanese EZ in Araihazar was likely to be complete within 2020 as the land acquisition had already been finished.

He said the Japanese investors were showing keen interest to invest in various sectors, including information technology and infrastructure.

He also identified some risk and problems which were creating barriers in the way of expanding businesses in Bangladesh.

The risk and problems included lack of infrastructure, weakness of governance and compliance, taxation system and lack of skilled workforce.

The JETRO country representative urged the authorities concerned to take necessary steps for removing the risks in investment and to make the country more investment friendly.
He also called upon the government to take more steps to reduce the freight time at the seaport or airport as it was higher than in other Asian and Oceania countries.

Among other, the JBCCI vice-president Shariful Alam, director Masud Karim, adviser Akhtaruzzaman and honorary executive director AKM Moazzem Hussain were present.
Shariful Alam said the Japanese investment in Bangladesh was worth around $326 million until June of this year and the Japanese ODA was about $12 billion for Bangladesh while $7 billion had already been disbursed.

He believed the Japanese government was continuing its contribution for Bangladesh’s development and many Japanese companies would also come to set up businesses in the country.

Akhtaruzzaman said if there was a good election, many Japanese companies would come to invest in the country.

 

[FuturePAF]

Good for Bangladesh. Pakistan needs to study what Bangladesh does right in attracting this kind of FDI. (Before anyone starts, no we can't cut defense spending to focus 100% on the economy; we need to maintain our national security interests too)

 

[Mage]

Good for Bangladesh. Pakistan needs to study what Bangladesh does right in attracting this kind of FDI. (Before anyone starts, no we can't cut defense spending to focus 100% on the economy; we need to maintain our national security interests too)

Study Vietnam instead. Bangladesh hardly attracts any FDI to begin with.

 

[Mage]

Especially when the FDI is just designed to import more Chinese stuff in the long run rather than impart technical know-how for local long term substitution/technical capacity etc.

But BD cant be too choosy I suppose given its at a nascent stage and running a trade deficit on a not very diverse export portfolio (i.e significant capital pressure developed outside).

Bd simply has to keep bulking up (and hopefully more diversely as it can manage...cant just be doing bicep curls ) so it can bargain better in future.

Right....we are not in a position to be choosy about FDI. If it comes in any sector it is welcomed. Most(almost all, I guess) investment being in transport and power sector means that it will eventually be used for what you are saying.

 

[FuturePAF]

Study Vietnam instead. Bangladesh hardly attracts any FDI to begin with.

Good Point. In Fact, unfortunately Pakistan exports raw cotton to Vietnam so they can make finished products for Export to the US. Pakistan needs to cut out the middle man and get its exports back on track.

 

[Mage]

MCCI: Inflation was under control, FDI increased 7.46% in first quarter
Tribune Desk

• Published at 10:31 pm November 19th, 2018

FDI inflow in Bangladesh is low compared to that in many countries that are at similar levels of development

In its recent “Economic Situation in Bangladesh review, July-September 2018 (Q1 of FY19)”, the Metropolitan Chamber of Commerce and Industry (MCCI), statedthat inflation was under control, exchange rate stable, and foreign exchange reserves rose to a comfortable level, in the first quarter of the current fiscal year.

The review further reportedthat although Bangladesh’s economy is progressing well, infrastructure bottlenecks and shortage of power and energy has resulted in its performance to remain below its true potential.

Quoting the government’s latest data, MCCI reportedthat all major macroeconomic indicators – per capita income, foreign currency reserves, import and export, and foreign direct investment (FDI) – depict a strong positive trend in terms of private and public sector revenue collection.

Price situation

In September 2018, the general point-to-point inflation in the country fell by 0.05% to 5.43% from 5.48% in August 2018.

The inflation in September was at its lowest in 18 months following the continuous fall in food prices. According to Bangladesh Bureau of Statistics (BBS), the lowest inflation rate was recorded at 5.39% in March, 2017.

In September of 2017, the inflation rate was 6.12%.

Food inflation came down 0.55% to 5.42% in September 2018 from 5.97% in August. However, year-on-year food inflation fell by 2.45% from 7.87%.

On the other hand, non-food inflation increased by 0.72% to 5.45% in September 2018 from 4.73% in the previous month. Year-on-year non-food inflation, however, increased by 2.01% from 3.44%.

BBS data also reveals that prices of food items including sugar, edible oil, fish, vegetables, egg, andlentils dropped, while rent, cost of clothing, price of household goods, fuel, medical and transportation services, and education went up.

A comparison of point to point inflation data for urban and rural areas in September of FY19 shows that the inflation rate was higher in urban areas than in rural areas. Thus, the point-to-point general, food, and non-food inflation in rural areas in September were 4.99%, 4.86%, and 5.22%, respectively.

These rates in urban areas were 6.23%, 6.65%, and 5.74%, respectively.

Foreign direct investment

In the first two months of the present fiscal year (July-August of FY19), the net FDI increased by $15 million or 7.46%, from $201 million to $216 million in the corresponding two months of FY18.

FDI inflow in Bangladesh is low compared to that in many countries that are at similar levels of development.

Although Bangladesh’s low labor costs are generally believed to be attractive to foreign investors, they hesitate to make fresh investments in the country due to the country’s underdeveloped infrastructure, and impediments such as shortage of power and energy, lack of consistency in policy and regulatory framework, scarcity of industrial lands, corruption, and political uncertainty.

The report recommended that the government address these impediments to attract more FDI to the country.

Exchange rate and foreign exchange reserves

Between the end of June and end of September, 2018, the Taka depreciated by 0.06% in terms ofthe US dollar. On the inter-bank market, the US dollar was quoted at Tk83.7 at the end of June 2018 and Tk83.75 at the end of September 2018.

Bangladesh Bank's gross foreign exchange reserves stood at $31.958 billion (with ACU liability of $0.54 billion) as of end September 2018, as compared to $32.927 billion (with ACU liability of $1.15 billion) at the end of August.

The current foreign exchange reserve (less ACU liability) is equivalent to 6.35 months’ import payments.

Public finance

National Board of Revenue’s (NBR) revenue collection target for FY19 is Tk296,201 crore, which is about 19.34% higher than that of the previous fiscal year’s original target – Tk248,190 crore – about 31.64% higher than the revised target of Tk225,000 crore, and additionally, about 43.50% higher than the collected amount of Tk206,407 crore in FY18.

In the first two months of FY19 (July-August), the NBR collected Tk28,317 crore, which was just 1.58% higher than collection of Tk27,876 crore in the previous period of FY18. However, this revenue collection fell Tk7,260 crore (20.41%)short of the target – Tk35,577 crore – for the first two months of FY19.

The small increase in NBR’s revenue collection – 1.58% – in July-August of FY19 was mainly due to the negative growth in the collection of value-added tax and customs duties.

In these two months, the collection of VAT and customs duties declined by 0.45% and 5.55%, respectively.

Income tax collection, on the other hand, grew by 13.84% in this period.

https://www.dhakatribune.com/busine...r-control-fdi-increased-7-46-in-first-quarter

 

[Mage]

Walton starts exporting fridges to Yemen

• UNB News
• Publish Date - November 17, 2018, 07:09 PM
• UNB NEWS - UNB NEWS
• 273 Views
• Update Date - November 17, 2018, 07:39 PM

Dhaka, Nov 17 (UNB)- Middle East country ‘Yemen’ has been enlisted in the list of importing countries of Walton fridges recently.

Last month, Walton for the first time shipped out a large volume of fridges to a local brand of Yemen under the OEM (Original Equipment Manufacturer). This month, the second shipment of Walton made fridges, including huge power efficient glass door refrigerator and beverage cooler, was completed.

Edward Kim, President of Walton’s International Business Unit (IBU) said “We have a target of bagging US$ 1 billion earnings from the export of various electronics and electrical appliances and spare parts by 2028.”

To meet this target, he said that they are trying to nurture brand presence in the international market through sustainable partnership with customers while focusing on OEM (Original Equipment Manufacturer) business to drive the business volume and also to enhance our product quality management which is an assurance to customers.

Uday Hakim, deputy executive director of Walton Group, said they focused on expanding the global market and strengthening its international business unit.

Walton is setting up global product research and development centers and branch offices in many countries including Germany, United Kingdom, China, UAE, Taiwan and Thailand, he said.

http://www.unb.com.bd/category/Business/walton-starts-exporting-fridges-to-yemen/6661