Homo Sapiens
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Decision have taken already to count GDP growth quartery from the next year.
Bangladesh Economy: News & Updates
- Thread starter Raquib
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Its a daunting task. Lets see.
10 May 2017, 00:11:09
IMF predicts 6.9pc growth for BD in '17
Inflation to stay at 6.4pc
FE Report
The International Monetary Fund (IMF) has projected a 6.9 per cent economic growth for Bangladesh in 2017.
The organisation has also forecasted a 7.0 per cent GDP (gross domestic product) growth for the country in 2018, according to IMF's Regional Economic Outlook: Asia and Pacific.
"Growth reached 6.9 per cent (in 2016) in Bangladesh, largely driven by private consumption," said IMF in the outlook, released on Tuesday.
Besides, it has also projected Bangladesh's current account balance to be -0.5 percentage and -1.0 percentage of GDP in 2017 and 2018 respectively.
The rate of year-on-year inflation in the country has also been projected to be 6.4 per cent in 2017, while the rate would be 5.8 per cent in 2018, according to IMF.
The outlook also forecasted that a disruption of labour flows could also reduce remittance inflows to emerging Asian countries.
Citing the estimates by the World Bank (2016), it said the remittances from the countries of Gulf Cooperation Council (GCC), the euro area, the UK, and the US collectively accounted for about three-quarters of total remittance inflows to Asian emerging markets in 2015. Those remittances were particularly significant in Nepal (almost 25 percent of GDP), followed by the Philippines, Sri Lanka, Bangladesh, and Vietnam (4.5 percent to 7 percent of GDP).
About the near-term regional outlook, IMF said Asia's growth outlook remains strong, with expectations of benign but rising inflation.
IMF predicts 6.9pc growth for BD in '17
Inflation to stay at 6.4pc
FE Report
The International Monetary Fund (IMF) has projected a 6.9 per cent economic growth for Bangladesh in 2017.
The organisation has also forecasted a 7.0 per cent GDP (gross domestic product) growth for the country in 2018, according to IMF's Regional Economic Outlook: Asia and Pacific.
"Growth reached 6.9 per cent (in 2016) in Bangladesh, largely driven by private consumption," said IMF in the outlook, released on Tuesday.
Besides, it has also projected Bangladesh's current account balance to be -0.5 percentage and -1.0 percentage of GDP in 2017 and 2018 respectively.
The rate of year-on-year inflation in the country has also been projected to be 6.4 per cent in 2017, while the rate would be 5.8 per cent in 2018, according to IMF.
The outlook also forecasted that a disruption of labour flows could also reduce remittance inflows to emerging Asian countries.
Citing the estimates by the World Bank (2016), it said the remittances from the countries of Gulf Cooperation Council (GCC), the euro area, the UK, and the US collectively accounted for about three-quarters of total remittance inflows to Asian emerging markets in 2015. Those remittances were particularly significant in Nepal (almost 25 percent of GDP), followed by the Philippines, Sri Lanka, Bangladesh, and Vietnam (4.5 percent to 7 percent of GDP).
About the near-term regional outlook, IMF said Asia's growth outlook remains strong, with expectations of benign but rising inflation.
EastBengalPro
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The Bank and Financial Institutions Division will place a proposal at the next meeting of the Cabinet Committee on Economic Affairs (CCEA), seeking permission for three business groups of the country to make equity investments in as many foreign countries. The division has prepared the proposal in line with a letter from the Bangladesh Bank, sources said. The CCEA meeting is scheduled on Sunday (May 14).
According to the proposal, Akij Jute Mills Ltd applied to the central bank to make equity investments worth USD 20 million in Malaysia. The Ha-Meem Group wants to invest USD 10.44 million in Haiti to set up a garment factory. The Nitol-Niloy Group wishes to invest USD 37.44 million in Gambia to establish a commercial bank titled the Gambia Commerce and Agriculture Bank Ltd.
But the central bank is yet to give its nod to the companies. It instead wrote to the Bank and Financial Institutions Division recently: “Applications for equity investment abroad by local companies is increasing by the day. The pressure on the reserves of the Bangladesh Bank would increase if the
applications are considered. There is no guarantee that the equity investments of these companies would return to the country.”
“The growth of foreign exchange reserves of the country has slowed down. The flow of remittances is also declining due to increasing import costs of capital machinery, essentials and fuel. Foreign transactions declined to USD 0.79 billion from the end of last year. The existing reserves are enough to meet the import cost of essentials and service for seven to eight months,” the letter added.
It further said: “The government has decided to form a USD 10-billion fund from the Bangladesh Bank reserves and call it the Bangladesh Sovereign Assets Fund. Besides, an Export Development Fund worth USD 2.5 billion has already been formed to import industrial machinery and equipment with the aim to increase exports. The amount of long- and mid-term reserves of the private sector external debt is USD 9.4 billion.”
“On the other hand, the government is establishing 100 economic zones across the country. Local businessmen can invest in those,” the central bank letter said.
The Bangladesh Bank has also asked the division to think whether it was justified to invest abroad instead of home. The letter pointed out: “Currently, Tk. 277,956.29 crore is lying unutilised in banks.”
After receiving the letter, the secretary of the Bank and Financial Institutions Division informed its matter to the finance minister, who told the division to place a proposal before the CCEA in this regard, according to sources.
The Foreign Exchange Regulation Act, 1974, restricts equity investment abroad. For offshore equity investment, the government’s permission has to be taken, says the FER Act, 1974.
http://www.theindependentbd.com/post/94001
According to the proposal, Akij Jute Mills Ltd applied to the central bank to make equity investments worth USD 20 million in Malaysia. The Ha-Meem Group wants to invest USD 10.44 million in Haiti to set up a garment factory. The Nitol-Niloy Group wishes to invest USD 37.44 million in Gambia to establish a commercial bank titled the Gambia Commerce and Agriculture Bank Ltd.
But the central bank is yet to give its nod to the companies. It instead wrote to the Bank and Financial Institutions Division recently: “Applications for equity investment abroad by local companies is increasing by the day. The pressure on the reserves of the Bangladesh Bank would increase if the
applications are considered. There is no guarantee that the equity investments of these companies would return to the country.”
“The growth of foreign exchange reserves of the country has slowed down. The flow of remittances is also declining due to increasing import costs of capital machinery, essentials and fuel. Foreign transactions declined to USD 0.79 billion from the end of last year. The existing reserves are enough to meet the import cost of essentials and service for seven to eight months,” the letter added.
It further said: “The government has decided to form a USD 10-billion fund from the Bangladesh Bank reserves and call it the Bangladesh Sovereign Assets Fund. Besides, an Export Development Fund worth USD 2.5 billion has already been formed to import industrial machinery and equipment with the aim to increase exports. The amount of long- and mid-term reserves of the private sector external debt is USD 9.4 billion.”
“On the other hand, the government is establishing 100 economic zones across the country. Local businessmen can invest in those,” the central bank letter said.
The Bangladesh Bank has also asked the division to think whether it was justified to invest abroad instead of home. The letter pointed out: “Currently, Tk. 277,956.29 crore is lying unutilised in banks.”
After receiving the letter, the secretary of the Bank and Financial Institutions Division informed its matter to the finance minister, who told the division to place a proposal before the CCEA in this regard, according to sources.
The Foreign Exchange Regulation Act, 1974, restricts equity investment abroad. For offshore equity investment, the government’s permission has to be taken, says the FER Act, 1974.
http://www.theindependentbd.com/post/94001
Banglar Bir
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Govt must come out of short-term rental power policy
Published: 00:05, May 11,2017
THE government’s policy on the purchase of electricity form rental power plants — which has been in place for quite some years now and is set to roll further — has proved to be a double-edged sword because of the government’s negligence towards the implementation of mid- and long-term power projects, which, fully implemented, could have afforded some relief. And the policy cuts the consumers most, having to pay in increased power tariff, and the government less, as it does not seem to feel the pinch, while it lines the pocket of the politically powerful people who run the plants.
The policy has also come to be a drain on the national exchequer as the government has already paid 20 rental power plants, during their original contract tenure since 2010, Tk 60 billion and is set to pay 15 of them that have their contract tenures extended Tk 20 billion more in capacity charge till 2020. The capacity charge that the rental power suppliers now realise, after having the return on their investment during the original contract tenure, is both illogical and unjustifiably high.
A further extension of the contract tenure with the rental power suppliers, which the government will in all likelihood be forced to effect in view of a tangible progress in its mid- and short-term power projects only after 2024, would compound the situation. The government, as New Age reported on Wednesday, is almost set to continue buying electricity by paying higher in capacity charge as there is no respite in sight, not until 2024 at least, from rental plants because of the government’s failure to do what it should have done by now.
There is no way out for the government from the grip of short-term rental power supply as 35 per cent of the mid-term projects, which should have been completed by 2015, is, as power board officials are quoted as saying, yet to be implemented. Coupled with this, there has been no significant progress in the implementation of long-term power projects which aim to increase power generation capacity by 13,000MW by 2021.
In such a situation when the government claims to be generating 14,000MW of power, consumers are forced to pay higher for power only because less than a fourteenth of the total generation needs to be sourced from the rental plants.
While allegations are rife that this failure of the government in going ahead properly with the mid- and long-term power projects is deliberate, to advantage a handful of the politically powerful people, speculations are also there that the government does not reduce prices of fuel oil used in the power sector, although the prices have been much lower on the international market for two years and a half, as it shores up money from fuel oil to pay for the rental power.
Yet still, the Energy Regulatory Commission increased prices of electricity by 69.25 per cent, up from Tk 3.75 a unit to Tk 6.33, in eight phases between March 2010 and September 2015. The government must come out of its policy on expensive, short-term rental power and attend to mid- and long-term power projects.
- See more at: http://www.newagebd.net/article/153...term-rental-power-policy#sthash.2wqBnhqG.dpuf
Published: 00:05, May 11,2017
THE government’s policy on the purchase of electricity form rental power plants — which has been in place for quite some years now and is set to roll further — has proved to be a double-edged sword because of the government’s negligence towards the implementation of mid- and long-term power projects, which, fully implemented, could have afforded some relief. And the policy cuts the consumers most, having to pay in increased power tariff, and the government less, as it does not seem to feel the pinch, while it lines the pocket of the politically powerful people who run the plants.
The policy has also come to be a drain on the national exchequer as the government has already paid 20 rental power plants, during their original contract tenure since 2010, Tk 60 billion and is set to pay 15 of them that have their contract tenures extended Tk 20 billion more in capacity charge till 2020. The capacity charge that the rental power suppliers now realise, after having the return on their investment during the original contract tenure, is both illogical and unjustifiably high.
A further extension of the contract tenure with the rental power suppliers, which the government will in all likelihood be forced to effect in view of a tangible progress in its mid- and short-term power projects only after 2024, would compound the situation. The government, as New Age reported on Wednesday, is almost set to continue buying electricity by paying higher in capacity charge as there is no respite in sight, not until 2024 at least, from rental plants because of the government’s failure to do what it should have done by now.
There is no way out for the government from the grip of short-term rental power supply as 35 per cent of the mid-term projects, which should have been completed by 2015, is, as power board officials are quoted as saying, yet to be implemented. Coupled with this, there has been no significant progress in the implementation of long-term power projects which aim to increase power generation capacity by 13,000MW by 2021.
In such a situation when the government claims to be generating 14,000MW of power, consumers are forced to pay higher for power only because less than a fourteenth of the total generation needs to be sourced from the rental plants.
While allegations are rife that this failure of the government in going ahead properly with the mid- and long-term power projects is deliberate, to advantage a handful of the politically powerful people, speculations are also there that the government does not reduce prices of fuel oil used in the power sector, although the prices have been much lower on the international market for two years and a half, as it shores up money from fuel oil to pay for the rental power.
Yet still, the Energy Regulatory Commission increased prices of electricity by 69.25 per cent, up from Tk 3.75 a unit to Tk 6.33, in eight phases between March 2010 and September 2015. The government must come out of its policy on expensive, short-term rental power and attend to mid- and long-term power projects.
- See more at: http://www.newagebd.net/article/153...term-rental-power-policy#sthash.2wqBnhqG.dpuf
EastBengalPro
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Bangladesh’s first LNG-run power plant by June 2019
First power plant of Bangladesh that will run on regasified imported LNG will be set up by mid-June 2019, a senior official at the Ministry of Power, Energy and Mineral Resources said Thursday.
State-owned North West Power Generation Company Ltd., or NWPGCL, has issued an invitation of pre-qualification for engineering, procurement, construction and commissioning of the 800-MW combined cycle power plant at Rupsha in the country's southern Khulna region.
The power plant will have two gas-fired units, each 400 MW, reports S&P Global Platts.
The proposed power plant may be fueled by regasified LNG from India or Qatar
Some 125,000 Mcf/d of regasified LNG would be required to generate electricity from the proposed power plant, the official added.
NWPGCL is the implementing authority of the Rupsha power plant and state-run Petrobangla will supply the regasified LNG, NWPGCL managing director A.M Khurshedul Alam said.
Bid submission deadline is July 12.
Asian Development Bank, or ADB, would provide $600 million and Islamic Development Bank, or IDB, would provide $200 million for development of the $950 million Rupsha power plant, Alam said, adding that the remaining $150 million would be provided by the Bangladesh government.
http://www.thefinancialexpress-bd.c...desh’s-first-LNG-run-power-plant-by-June-2019
China to fund Bangladesh's 9th friendship bridge
China will fund Bangladesh for construction of the ninth Bangladesh-China Friendship Bridge and other infrastructure development projects.
Bangladesh's Economic Relations Department (ERD) Secretary Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang signed an agreement in this regard on Thursday in Bangladeshi capital Dhaka, reports Xinhua.
Ma said China has been supporting Bangladesh's infrastructure development to help it realize its economic development goals.
"I hope that we can use this money smartly and more efficiently so that more and more people can benefit from this excellent relationship between Bangladesh and China," Ma said.
Kazi Shofiqul Azam said Bangladesh's relationship with China is excellent and outstanding.
Seven friendship bridges have been completed across Bangladesh under Chinese grants, and the eighth one is under construction, he said.
"It will be a symbol of friendship actually. We hope that we will be able to sign another grant agreement in near future."
The Chinese assistance will play a vital role on the economic and social development of the country as well as the communication sector, an ERD statement said.
ERD said the location of the ninth Bangladesh-China Friendship Bridge and other infrastructure projects will be settled later on through negotiations of the two governments.
The eighth friendship bridge is under construction over Kocha River in southern Bangladesh. The length of the bridge will be 1,400 meters and Bangladesh Roads and Highway department has been carrying out the project.
The construction of the first Bangladesh-China Friendship Bridge, with a span of more than 917 meters in length, began in October 1986, and was completed in February 1989.
http://www.thefinancialexpress-bd.c...a-to-fund-Bangladesh's-9th-friendship-bridge
First power plant of Bangladesh that will run on regasified imported LNG will be set up by mid-June 2019, a senior official at the Ministry of Power, Energy and Mineral Resources said Thursday.
State-owned North West Power Generation Company Ltd., or NWPGCL, has issued an invitation of pre-qualification for engineering, procurement, construction and commissioning of the 800-MW combined cycle power plant at Rupsha in the country's southern Khulna region.
The power plant will have two gas-fired units, each 400 MW, reports S&P Global Platts.
The proposed power plant may be fueled by regasified LNG from India or Qatar
Some 125,000 Mcf/d of regasified LNG would be required to generate electricity from the proposed power plant, the official added.
NWPGCL is the implementing authority of the Rupsha power plant and state-run Petrobangla will supply the regasified LNG, NWPGCL managing director A.M Khurshedul Alam said.
Bid submission deadline is July 12.
Asian Development Bank, or ADB, would provide $600 million and Islamic Development Bank, or IDB, would provide $200 million for development of the $950 million Rupsha power plant, Alam said, adding that the remaining $150 million would be provided by the Bangladesh government.
http://www.thefinancialexpress-bd.c...desh’s-first-LNG-run-power-plant-by-June-2019
China to fund Bangladesh's 9th friendship bridge
China will fund Bangladesh for construction of the ninth Bangladesh-China Friendship Bridge and other infrastructure development projects.
Bangladesh's Economic Relations Department (ERD) Secretary Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang signed an agreement in this regard on Thursday in Bangladeshi capital Dhaka, reports Xinhua.
Ma said China has been supporting Bangladesh's infrastructure development to help it realize its economic development goals.
"I hope that we can use this money smartly and more efficiently so that more and more people can benefit from this excellent relationship between Bangladesh and China," Ma said.
Kazi Shofiqul Azam said Bangladesh's relationship with China is excellent and outstanding.
Seven friendship bridges have been completed across Bangladesh under Chinese grants, and the eighth one is under construction, he said.
"It will be a symbol of friendship actually. We hope that we will be able to sign another grant agreement in near future."
The Chinese assistance will play a vital role on the economic and social development of the country as well as the communication sector, an ERD statement said.
ERD said the location of the ninth Bangladesh-China Friendship Bridge and other infrastructure projects will be settled later on through negotiations of the two governments.
The eighth friendship bridge is under construction over Kocha River in southern Bangladesh. The length of the bridge will be 1,400 meters and Bangladesh Roads and Highway department has been carrying out the project.
The construction of the first Bangladesh-China Friendship Bridge, with a span of more than 917 meters in length, began in October 1986, and was completed in February 1989.
http://www.thefinancialexpress-bd.c...a-to-fund-Bangladesh's-9th-friendship-bridge
Banglar Bir
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BD FM Muhith says new budget will put pressure on people for 30 percent revenue rise
SAM Staff, May 12, 2017
Finance Minister AMA Muhith understands that the government will not be able to pressurise the people for revenue in the budget before the election, so he plans to do this in the upcoming one.
Speaking at a pre-budget discussion with newspaper editors and top executives of TV stations on Thursday, he said a 30 percent rise in revenue target would be proposed in the budget for 2017-18 fiscal year.
The 11th parliamentary election is set to be held in early 2019. The current Awami League government will give its last budget for 2018-19 fiscal year.
Muhith, 83, also says the 2018-19 budget, his 12th, will be his last one.
He has made 10 budgets, including eight consecutive ones as the Awami League’s finance minister.
“The 2018-19 budget will be the budget before the election. I don’t think we will be able to mount pressure in that one. So, all the pressure will have to be exerted this year,” he told the discussion.
“Pressurising means increase in revenue by 30 percent, where the usual percentage is something like 15 to 16. We are making it 30 percent,” he said enlarging on ‘the pressure’.
“Then some promises that have already been made…,” he added.
Muhith has been increasing the size of budget every year.
He is now ready to face criticism for an ambitious budget.
He has hinted that the size of the budget for 2017-18 would be Tk 4.2 trillion.
Earnings from domestic sources will have to be increased for such a mammoth budget.
“In the course of eight years, this will be the best budget,” he said at the discussion.
He said Tk 3.18 trillion of the Tk 3.4 trillion budget for 2016-17 fiscal year has been implemented.
The finance minister claimed the deficit was ‘less’ this fiscal year and no changes were made in the Annual Development Programme. “This has happened for the first time in Bangladesh’s history.”
The National Board of Revenue told the discussion that it is collecting 37 percent of the targeted revenue through VAT, 36 percent through income tax and the remaining through customs duty.
SAM Staff, May 12, 2017
Finance Minister AMA Muhith understands that the government will not be able to pressurise the people for revenue in the budget before the election, so he plans to do this in the upcoming one.
Speaking at a pre-budget discussion with newspaper editors and top executives of TV stations on Thursday, he said a 30 percent rise in revenue target would be proposed in the budget for 2017-18 fiscal year.
The 11th parliamentary election is set to be held in early 2019. The current Awami League government will give its last budget for 2018-19 fiscal year.
Muhith, 83, also says the 2018-19 budget, his 12th, will be his last one.
He has made 10 budgets, including eight consecutive ones as the Awami League’s finance minister.
“The 2018-19 budget will be the budget before the election. I don’t think we will be able to mount pressure in that one. So, all the pressure will have to be exerted this year,” he told the discussion.
“Pressurising means increase in revenue by 30 percent, where the usual percentage is something like 15 to 16. We are making it 30 percent,” he said enlarging on ‘the pressure’.
“Then some promises that have already been made…,” he added.
Muhith has been increasing the size of budget every year.
He is now ready to face criticism for an ambitious budget.
He has hinted that the size of the budget for 2017-18 would be Tk 4.2 trillion.
Earnings from domestic sources will have to be increased for such a mammoth budget.
“In the course of eight years, this will be the best budget,” he said at the discussion.
He said Tk 3.18 trillion of the Tk 3.4 trillion budget for 2016-17 fiscal year has been implemented.
The finance minister claimed the deficit was ‘less’ this fiscal year and no changes were made in the Annual Development Programme. “This has happened for the first time in Bangladesh’s history.”
The National Board of Revenue told the discussion that it is collecting 37 percent of the targeted revenue through VAT, 36 percent through income tax and the remaining through customs duty.
Export earnings failed to hit target in July-April
Bangladesh’s export earnings for 2016-17 fiscal failed to hit the target, according to statistics of Export Promotion Bureau (EPB).
As per statistics, the country earned US 28,721.71 million dollars during the period against the target of US$ 37,000 million.
However, the statistics revealed that Bangladesh witnessed 3.92 per cent growth in export earnings during the period of July-April of 2016-17 fiscal compared to the same period of the 2015-16 fiscal.
The export earnings during the July-April (2015-16) were US$27,637.22 million.
In addition, the statistics say the country earned US$2775.69 million (3.82 per cent) during the month of April.
Target for the month of April was US$2886 million.
Exported items such as knitwear, jute, tea and leather products resulted in the growth Bangladesh achieved during the July to April period.
Knitwear exports went up by 4.81 per cent to $11254.17 million in July-April.
Tea exports also went up by 165.13 per cent to $4.03 million while raw jute exports increased by 25.22 per cent to $154.02 million.
Leather products shipments rose 19.08 per cent to $373.31 million while that of leather footwear went up by 14.05 per cent to $431.65 million in July-April period.
Home textiles registered a growth of 6.58 per cent to fetch $664.8 million in the first 10 months of the ongoing fiscal year.
Engineering equipment exports also increased by 50.37 per cent to $249.91 million during the period.
On the other hand, export performance for frozen and live fish, shrimps and crabs slipped downward during the period.
http://www.thefinancialexpress-bd.c...t-earnings-failed-to-hit-target-in-July-April
Bangladesh’s export earnings for 2016-17 fiscal failed to hit the target, according to statistics of Export Promotion Bureau (EPB).
As per statistics, the country earned US 28,721.71 million dollars during the period against the target of US$ 37,000 million.
However, the statistics revealed that Bangladesh witnessed 3.92 per cent growth in export earnings during the period of July-April of 2016-17 fiscal compared to the same period of the 2015-16 fiscal.
The export earnings during the July-April (2015-16) were US$27,637.22 million.
In addition, the statistics say the country earned US$2775.69 million (3.82 per cent) during the month of April.
Target for the month of April was US$2886 million.
Exported items such as knitwear, jute, tea and leather products resulted in the growth Bangladesh achieved during the July to April period.
Knitwear exports went up by 4.81 per cent to $11254.17 million in July-April.
Tea exports also went up by 165.13 per cent to $4.03 million while raw jute exports increased by 25.22 per cent to $154.02 million.
Leather products shipments rose 19.08 per cent to $373.31 million while that of leather footwear went up by 14.05 per cent to $431.65 million in July-April period.
Home textiles registered a growth of 6.58 per cent to fetch $664.8 million in the first 10 months of the ongoing fiscal year.
Engineering equipment exports also increased by 50.37 per cent to $249.91 million during the period.
On the other hand, export performance for frozen and live fish, shrimps and crabs slipped downward during the period.
http://www.thefinancialexpress-bd.c...t-earnings-failed-to-hit-target-in-July-April
Export to China crosses last year’s total
FE Online Report
Merchandise export to China in the first 10 months of the current fiscal year has already crossed the total annual export of the past fiscal year.
Statistics available with the Export Promotion Bureau (EPB) showed that export to China stood at $809.82 million in July-April period of the current fiscal year (FY17).
On the other hand, total annual export to China was $808.14 million in the last fiscal year (FY16).
Thus, current fiscal year’s 10-month export surpassed the total annual export to China by 0.20 per cent.
According to the official data of the country’s export promotion agency, export to China was $625.32 million in the first 10 months of FY16.
Thus, export to China in the first 10 months of current fiscal year increased by 29.50 per cent over the same period of past year.
If the growth trend continues for the next two months, annual export to china will cross $1 billion level for the first time in the history of two countries bilateral trade.
http://www.thefinancialexpress-bd.com/2017/05/12/70074/Export-to-China-crosses-last-year’s-total
FE Online Report
Merchandise export to China in the first 10 months of the current fiscal year has already crossed the total annual export of the past fiscal year.
Statistics available with the Export Promotion Bureau (EPB) showed that export to China stood at $809.82 million in July-April period of the current fiscal year (FY17).
On the other hand, total annual export to China was $808.14 million in the last fiscal year (FY16).
Thus, current fiscal year’s 10-month export surpassed the total annual export to China by 0.20 per cent.
According to the official data of the country’s export promotion agency, export to China was $625.32 million in the first 10 months of FY16.
Thus, export to China in the first 10 months of current fiscal year increased by 29.50 per cent over the same period of past year.
If the growth trend continues for the next two months, annual export to china will cross $1 billion level for the first time in the history of two countries bilateral trade.
http://www.thefinancialexpress-bd.com/2017/05/12/70074/Export-to-China-crosses-last-year’s-total
Banglar Bir
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12:00 AM, May 14, 2017 / LAST MODIFIED: 03:07 AM, May 14, 2017
Purbachal New Town 'to be ready by 2018'
A walled plot of land . Photo: Zahid I Khan
Ainul Haque Pramanik
The Rajdhani Unnayan Kartripakkha is planning to complete the development works of Purbachal New Town project by the end of next year.
Around 80 percent of the land development work has been completed. Possession of some 13,000 plots out of the total 25,016 has been handed over to allottees, said Rajuk officials.
“We have already spent around Tk 2,700 crore to step up the implementation of the project,” ASM Raihanul Ferdous, chief engineer of Rajuk, told The Daily Star.
However, the city planner is conducting feasibility studies on the project's water treatment and waste management plants.
It is implementing the Tk 7,700 crore project on around 6,000 acres of land to create residential accommodation for around 1.5 million people.
The Rajuk had conducted a feasibility study on the project around 26 years ago. In 1992, it started acquiring land for the project and the development work began in 2007.
Purbachal New Town is located between the Shitalakhya and the Balu rivers in Rupganj of Narayanganj and Kaliganj of Gazipur.
The project area is divided into 30 sectors, with 21.66 percent for commercial, educational and sporting institutions, 25.90 percent for road, island and footpath and 13.70 percent for lakes, parks and forest, the chief engineer said.
Ujjwal Mallick, additional director of the project, blamed the slow implementation of the project on sluggish acquisition of land. According to him, it took Rajuk about 16 years to do the job.
A completely-built road, in Purbachal New Town project. Plot owners' wait to move into their land could end next year as about 80 percent of the development work has been done. The photos were taken recently. Photo: Zahid I Khan
“We have already installed overhead electricity cables in the project area to supply power to 13,000 plots,” he said.
About supply of gas, Raihan said an LPG (liquefied petroleum gas) bank would be set up in each of the 30 sectors to supply bottled LPG to households.
Development of lakes, canals, internal road, drains and installation of street lamps were underway, the Rajuk official added.
Bangladesh Navy has been tasked with the construction of 62 bridges in the project area. Of them, 30 have already been built and two are under construction.
The project area is linked to the capital by a 300-feet expressway which is connected to the Airport Road via Pragati Sarani intersection.
Ujjwal said many businesses and government offices, like the headquarters of Fire Service and Civil Defence, would be relocated to Purbachal.
Two police lines and four police stations will be set up at some strategic points in the town to maintain law and order.
The government has planned to build 142-storey Iconic Tower on 75 acres of land in Purbachal. The building will have an international convention centre and a modern sports complex, among other facilities.
The Rajuk official said once the project is completed, it would facilitate trade and commerce and create jobs.
Around 144 acres of land have been earmarked by Rajuk for reserved forest. Only 38 percent space of the total project area would be used for housing purpose, he told this correspondent.
Besides, 62,000 flats will be built on 90 acres of land for low income people.
Purbachal New Town 'to be ready by 2018'
A walled plot of land . Photo: Zahid I Khan
Ainul Haque Pramanik
The Rajdhani Unnayan Kartripakkha is planning to complete the development works of Purbachal New Town project by the end of next year.
Around 80 percent of the land development work has been completed. Possession of some 13,000 plots out of the total 25,016 has been handed over to allottees, said Rajuk officials.
“We have already spent around Tk 2,700 crore to step up the implementation of the project,” ASM Raihanul Ferdous, chief engineer of Rajuk, told The Daily Star.
However, the city planner is conducting feasibility studies on the project's water treatment and waste management plants.
It is implementing the Tk 7,700 crore project on around 6,000 acres of land to create residential accommodation for around 1.5 million people.
The Rajuk had conducted a feasibility study on the project around 26 years ago. In 1992, it started acquiring land for the project and the development work began in 2007.
Purbachal New Town is located between the Shitalakhya and the Balu rivers in Rupganj of Narayanganj and Kaliganj of Gazipur.
The project area is divided into 30 sectors, with 21.66 percent for commercial, educational and sporting institutions, 25.90 percent for road, island and footpath and 13.70 percent for lakes, parks and forest, the chief engineer said.
Ujjwal Mallick, additional director of the project, blamed the slow implementation of the project on sluggish acquisition of land. According to him, it took Rajuk about 16 years to do the job.
A completely-built road, in Purbachal New Town project. Plot owners' wait to move into their land could end next year as about 80 percent of the development work has been done. The photos were taken recently. Photo: Zahid I Khan
“We have already installed overhead electricity cables in the project area to supply power to 13,000 plots,” he said.
About supply of gas, Raihan said an LPG (liquefied petroleum gas) bank would be set up in each of the 30 sectors to supply bottled LPG to households.
Development of lakes, canals, internal road, drains and installation of street lamps were underway, the Rajuk official added.
Bangladesh Navy has been tasked with the construction of 62 bridges in the project area. Of them, 30 have already been built and two are under construction.
The project area is linked to the capital by a 300-feet expressway which is connected to the Airport Road via Pragati Sarani intersection.
Ujjwal said many businesses and government offices, like the headquarters of Fire Service and Civil Defence, would be relocated to Purbachal.
Two police lines and four police stations will be set up at some strategic points in the town to maintain law and order.
The government has planned to build 142-storey Iconic Tower on 75 acres of land in Purbachal. The building will have an international convention centre and a modern sports complex, among other facilities.
The Rajuk official said once the project is completed, it would facilitate trade and commerce and create jobs.
Around 144 acres of land have been earmarked by Rajuk for reserved forest. Only 38 percent space of the total project area would be used for housing purpose, he told this correspondent.
Besides, 62,000 flats will be built on 90 acres of land for low income people.
Kunming Steel in talks with BSRM to invest $2.2b
Refayet Ullah Mirdha
Chinese company Kunming Steel is in talks with BSRM to invest $2.2 billion to form a joint venture and serve the fast growing domestic market, said a top official of the local steel giant.
Negotiations between the two companies have been underway for a few months now, said an official of BSRM.
Chairman and managing director of BSRM could not be reached over phone as they are abroad now.
Representatives from Kunming Steel are coming to Bangladesh later this month for further negotiations with the Chittagong-based local steel mill, according to the official.
The factory would be set up at Mirsarai in Chittagong, if the Bangladesh Economic Zones Authority (BEZA) allocates land to the new venture.
The mill will produce basic steel products primarily for the local market, and for export as well, the official said. Both the companies held meetings with BEZA for land allocation.
The BSRM official said many steel products and raw materials have to be imported as local millers do not have the capacity to produce those. “We will make the goods as import substitutes,” he added.
With the robust growth of the economy, demand for steel products is rising at more than 10 percent a year, industry players said.
Currently, BSRM meets more than 30 percent of the local demand estimated at about 4.5 million tonnes per year, the official said. BSRM also began exporting steel products to the Northeastern region of India a few years ago. Paban Chowdhury, executive chairman of BEZA, said officials of both the companies met him and collected forms to apply for land allotment at the Mirsarai economic zone. It is near the Bay of Bengal and gives access to the easy transportation of goods by seaways.
Chowdhury said the proposed company wants to set up the steel mill with a production capacity of 2 million tonnes of steel products a year. BEZA will allocate the land if the company fulfils the conditions.
Such a huge investment proposal from China proves that Bangladesh is a lucrative destination for investment, said Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, at a programme on Bangladesh-China business and investment at Westin Dhaka hotel on Monday.
During Chinese President Xi Jinping's visit to Bangladesh last year, 13 Bangladeshi entities signed joint venture agreements with Chinese companies, involving $13.6 billion.
Under the agreements, Chinese investors will spend on infrastructure, power, railways, sports and special economic zone.
http://www.thedailystar.net/business/kunming-steel-talks-bsrm-invest-22b-1403413
Local firms look beyond borders
Despite considerable progress over four decades, only eight Bangladeshi businesses have been allowed to invest abroad
Bangladesh Bank’s conservative attitude is holding back businessmen from leveraging significant foreign investment opportunities. The fate of about $37 million worth of investment hinges upon further liberalisation of the foreign exchange regime.
Although the Foreign Exchange Regulation Act of 1947, which governs Bangladeshi investment abroad, was amended as recently as 2015, it only allows limited foreign investment on a case-by-case basis.
Despite considerable progress over four decades, only eight Bangladeshi businesses have been allowed to invest abroad.
These include Square Pharmaceuticals with $5 million for business expansion in US), BSRM with $4.67 million to build factory in Kenya, DBL Group with $3 million to build an RMG factory in Ethiopia and MJL with $547,000 in a joint venture in Myanmar.
ACI was permitted to invest $447,000 in the USA, while Incepta was permitted to invest £10,000 in the UK and €2,500 in Estonia.
Convertibility of capital accounts which liberalises overseas investment would see three large proposals worth $37 million go through.
According to the central bank, these proposals are wide and varied. The largest plan is from Akij Group for $20 million to buy a Malaysian cardboard company. Clothing giant Ha-Meem Group wants build an RMG factory in Haiti for $10 and Nitol-Niloy Group is looking to invest $7 million in Gambia to set up a bank.
A senior central bank executive said the proposals would be forwarded to the cabinet committee since the central bank or the ministry did not have enough authority to make such a decision. “The volume of money is simply too large for the central bank to approve according to the foreign exchange guidelines.”
President of the International Business Forum of Bangladesh, Hafizur Rahman Khan said local firms have already invested significant volumes in Bangladesh and are now looking to expand beyond the borders into the global market.
Explaining the benefits of an open economy, Hafizur said the foreign currency reserve was large enough to allow investment abroad. “Restrictions on overseas investment contradict with government’s declared free market policy.”
The International Monetary Fund (IMF), which advocates free market policy, also recommended liberalisation of foreign exchange rules.
According to official figures, the national foreign reserve was worth $32.21 billion in March. But the central bank remains cautious about letting local firms invest abroad, which would hardly be a pinch in the vast reserve volume.
Hafizur said such large reserves could lead to inflation because of increasing money supply. “Overseas investment could mitigate such risks and ensure optimum usage of the reserves.”
“But our foreign reserve is not sitting idle. We have invested it in the international market and are planning to invest part of it on development projects domestically, rather than opening up the reserve for overseas investment,” said a senior executive of the central bank.
BB deputy governor, Abu Hena Mohd Razee Hassan, acknowledged that the central bank was being conservative in its approach to liberalise the foreign exchange regulations. He also said that the prevailing ‘case-by-case method’ would be more accommodating when considering the worthiness of a project.
Quarters suggest that this adamance is what leads to illicit capital flight — to the tune of $62 billion between 2005 and 2014, according to the Global Financial Integrity.
Swiss National Bank data show that in 2015 alone Bangladeshi nationals made deposits worth CHF 550,850 million, rising by almost 9% over 506,047 million Swiss francs of 2014.
Towfiqul Islam Khan, research fellow at Centre for Policy Dialogue (CPD), told the Dhaka Tribune that the government should have a provision obligating businesses to repatriate profits to Bangladesh.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Matlub Ahmad, who also heads the Nitol Niloy Group, told the Dhaka Tribune that Bangladeshi investors had not become experienced and skilled enough to carry out business abroad and harness maximum benefits. “It will be unfair if the restrictions still remain.”
The FBCCI president urged the government to formulate a policy for overseas investment to replace the existing case-by-case system.
AB Mirza Azizul Islam, a former advisor to the caretaker government, however opposed the generalised rules for overseas investment and said emphasis should be on policy to ensure more efficiency and accuracy of the existing case-by-case permission system. “The policy should be such that it encourages firms to invest in the country first.”
Azizul pointed out that private investment as a portion of GDP has remained stagnant at 21-22% for the last seven or eight years which he said should be higher. “If the private sector invests more locally, it will help us boost our exports even further.”
The government has begun pondering policy guidelines to facilitate Bangladeshi investment abroad to cater to market demands at the moment. The Prime Minister’s Office formed an inter-ministerial committee on March 14 to look into this very possibility.
The committee, headed by Bangladesh Investment Development Authority (BIDA) Executive Member Ajit Kumar Paul, met on May 2 for the first time.
BIDA Executive Chairman Kazi M Aminul Islam told Dhaka Tribune that the committee was indeed looking to formulate a policy regarding foreign investment. “Local firms will also have to be aware of international standards and rules of business when they invest there.”
http://www.dhakatribune.com/bangladesh/2017/05/14/local-firms-look-beyond-borders/
Refayet Ullah Mirdha
Negotiations between the two companies have been underway for a few months now, said an official of BSRM.
Chairman and managing director of BSRM could not be reached over phone as they are abroad now.
Representatives from Kunming Steel are coming to Bangladesh later this month for further negotiations with the Chittagong-based local steel mill, according to the official.
The factory would be set up at Mirsarai in Chittagong, if the Bangladesh Economic Zones Authority (BEZA) allocates land to the new venture.
The mill will produce basic steel products primarily for the local market, and for export as well, the official said. Both the companies held meetings with BEZA for land allocation.
The BSRM official said many steel products and raw materials have to be imported as local millers do not have the capacity to produce those. “We will make the goods as import substitutes,” he added.
With the robust growth of the economy, demand for steel products is rising at more than 10 percent a year, industry players said.
Currently, BSRM meets more than 30 percent of the local demand estimated at about 4.5 million tonnes per year, the official said. BSRM also began exporting steel products to the Northeastern region of India a few years ago. Paban Chowdhury, executive chairman of BEZA, said officials of both the companies met him and collected forms to apply for land allotment at the Mirsarai economic zone. It is near the Bay of Bengal and gives access to the easy transportation of goods by seaways.
Chowdhury said the proposed company wants to set up the steel mill with a production capacity of 2 million tonnes of steel products a year. BEZA will allocate the land if the company fulfils the conditions.
Such a huge investment proposal from China proves that Bangladesh is a lucrative destination for investment, said Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, at a programme on Bangladesh-China business and investment at Westin Dhaka hotel on Monday.
During Chinese President Xi Jinping's visit to Bangladesh last year, 13 Bangladeshi entities signed joint venture agreements with Chinese companies, involving $13.6 billion.
Under the agreements, Chinese investors will spend on infrastructure, power, railways, sports and special economic zone.
http://www.thedailystar.net/business/kunming-steel-talks-bsrm-invest-22b-1403413
Local firms look beyond borders
- Shariful Islam
- Published at 01:21 AM May 14, 2017
Despite considerable progress over four decades, only eight Bangladeshi businesses have been allowed to invest abroad
Bangladesh Bank’s conservative attitude is holding back businessmen from leveraging significant foreign investment opportunities. The fate of about $37 million worth of investment hinges upon further liberalisation of the foreign exchange regime.
Although the Foreign Exchange Regulation Act of 1947, which governs Bangladeshi investment abroad, was amended as recently as 2015, it only allows limited foreign investment on a case-by-case basis.
Despite considerable progress over four decades, only eight Bangladeshi businesses have been allowed to invest abroad.
These include Square Pharmaceuticals with $5 million for business expansion in US), BSRM with $4.67 million to build factory in Kenya, DBL Group with $3 million to build an RMG factory in Ethiopia and MJL with $547,000 in a joint venture in Myanmar.
ACI was permitted to invest $447,000 in the USA, while Incepta was permitted to invest £10,000 in the UK and €2,500 in Estonia.
Convertibility of capital accounts which liberalises overseas investment would see three large proposals worth $37 million go through.
According to the central bank, these proposals are wide and varied. The largest plan is from Akij Group for $20 million to buy a Malaysian cardboard company. Clothing giant Ha-Meem Group wants build an RMG factory in Haiti for $10 and Nitol-Niloy Group is looking to invest $7 million in Gambia to set up a bank.
A senior central bank executive said the proposals would be forwarded to the cabinet committee since the central bank or the ministry did not have enough authority to make such a decision. “The volume of money is simply too large for the central bank to approve according to the foreign exchange guidelines.”
President of the International Business Forum of Bangladesh, Hafizur Rahman Khan said local firms have already invested significant volumes in Bangladesh and are now looking to expand beyond the borders into the global market.
Explaining the benefits of an open economy, Hafizur said the foreign currency reserve was large enough to allow investment abroad. “Restrictions on overseas investment contradict with government’s declared free market policy.”
The International Monetary Fund (IMF), which advocates free market policy, also recommended liberalisation of foreign exchange rules.
According to official figures, the national foreign reserve was worth $32.21 billion in March. But the central bank remains cautious about letting local firms invest abroad, which would hardly be a pinch in the vast reserve volume.
Hafizur said such large reserves could lead to inflation because of increasing money supply. “Overseas investment could mitigate such risks and ensure optimum usage of the reserves.”
“But our foreign reserve is not sitting idle. We have invested it in the international market and are planning to invest part of it on development projects domestically, rather than opening up the reserve for overseas investment,” said a senior executive of the central bank.
BB deputy governor, Abu Hena Mohd Razee Hassan, acknowledged that the central bank was being conservative in its approach to liberalise the foreign exchange regulations. He also said that the prevailing ‘case-by-case method’ would be more accommodating when considering the worthiness of a project.
Quarters suggest that this adamance is what leads to illicit capital flight — to the tune of $62 billion between 2005 and 2014, according to the Global Financial Integrity.
Swiss National Bank data show that in 2015 alone Bangladeshi nationals made deposits worth CHF 550,850 million, rising by almost 9% over 506,047 million Swiss francs of 2014.
Towfiqul Islam Khan, research fellow at Centre for Policy Dialogue (CPD), told the Dhaka Tribune that the government should have a provision obligating businesses to repatriate profits to Bangladesh.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Matlub Ahmad, who also heads the Nitol Niloy Group, told the Dhaka Tribune that Bangladeshi investors had not become experienced and skilled enough to carry out business abroad and harness maximum benefits. “It will be unfair if the restrictions still remain.”
The FBCCI president urged the government to formulate a policy for overseas investment to replace the existing case-by-case system.
AB Mirza Azizul Islam, a former advisor to the caretaker government, however opposed the generalised rules for overseas investment and said emphasis should be on policy to ensure more efficiency and accuracy of the existing case-by-case permission system. “The policy should be such that it encourages firms to invest in the country first.”
Azizul pointed out that private investment as a portion of GDP has remained stagnant at 21-22% for the last seven or eight years which he said should be higher. “If the private sector invests more locally, it will help us boost our exports even further.”
The government has begun pondering policy guidelines to facilitate Bangladeshi investment abroad to cater to market demands at the moment. The Prime Minister’s Office formed an inter-ministerial committee on March 14 to look into this very possibility.
The committee, headed by Bangladesh Investment Development Authority (BIDA) Executive Member Ajit Kumar Paul, met on May 2 for the first time.
BIDA Executive Chairman Kazi M Aminul Islam told Dhaka Tribune that the committee was indeed looking to formulate a policy regarding foreign investment. “Local firms will also have to be aware of international standards and rules of business when they invest there.”
http://www.dhakatribune.com/bangladesh/2017/05/14/local-firms-look-beyond-borders/
14 May 2017, 17:41:18 | Updated : 14 May 2017, 20:51:46
GDP-investment ratio increases to 30.27pc
FE Online Report
Planning Minister AHM Mustafa Kamal on Sunday said the GDP-investment ratio of Bangladesh rose to 30.27 per cent in FY 2016-17. The ratio was 29.65 per cent in the previous year.
The minister said this while briefing reporters after the National Economic Council meeting at the Planning Commission in Dhaka.
According to Bangladesh Bureau of Statistics data, 23.01 per cent GDP-investment ratio was materialised from the private sector, while 7.26 per cent occured from the public sector.
The government is working to improve the country’s GDP-investment ratio, the minister further added.
GDP-investment ratio increases to 30.27pc
FE Online Report
Planning Minister AHM Mustafa Kamal on Sunday said the GDP-investment ratio of Bangladesh rose to 30.27 per cent in FY 2016-17. The ratio was 29.65 per cent in the previous year.
The minister said this while briefing reporters after the National Economic Council meeting at the Planning Commission in Dhaka.
According to Bangladesh Bureau of Statistics data, 23.01 per cent GDP-investment ratio was materialised from the private sector, while 7.26 per cent occured from the public sector.
The government is working to improve the country’s GDP-investment ratio, the minister further added.
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Dont tag this dumb...
I think we can still get few more billion of FDI. We have room for it. Lets see how we fare in those high tech park and SEZ. Few of those those come online by 2018.
most of it will be garment industries
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