Bangladesh Economy: News & Updates

[eastwatch]

Please note that if the international price of natural gas is $5 per thousand cft, then 1 trillion cft gas is worth $5 billion and 4.4 trillion cft is worth $22 billion. It is only the base price. When power is produced by using this gas, its economic benefits will be about 50 times more than the base value.

 

[TopCat]

Yea I know and we are wasting them as if we got them free. There is no way on earth BD could afford to use those scarce resource for producing power or using them in CNG run automobiles. The gas must be preserve only to be used in specialized industry and house hold cooking.

 

[leonblack08]

FDI inflow sets a new benchmark​

Star Business Report
Bangladesh ranks third among the Sough Asian countries in foreign direct investment (FDI) inflow list for 2008. The country received $1.09 billion in the year.

This is for the first time the country crossed the billion-dollar-mark in terms of FDI inflow, according to the World Investment Report (WIR) 2009, released globally yesterday.

The WIR 2009 shows that Bangladesh received 63 percent more FDI in 2008 than that of 2007. FDI inflow was $666.3 million in 2007.

Prepared by United Nations Conference on Trade and Development (UNCTAD), the report subtitled "Trans-national Cooperation, Agricultural Production and Development" was released by the Board of Investment (BoI) in Bangladesh yesterday.

In 2008 India received $41.56 billion FDI and Pakistan $5.4 billion, making them top two FDI receiving countries in the area. India ranked 13th globally, while the global ranking for Bangladesh was not available.

Despite a worldwide financial crisis, India, Bangladesh, Sri Lanka and Afghanistan have made significant progress in receiving FDI.

But FDI inflow in Pakistan, Nepal and Bhutan declined during the time, while it remained static in the Maldives at $15 million both in 2007 and 2008, the report says.

“The rise in FDI shows that investors prefer Bangladesh for their business,” SA Samad, executive chairman of BoI, told journalists at the report launching programme.

Samad however termed the FDI inflow in the country 'very low' compared to the position of other countries. He said small countries like Taiwan and Singapore received a huge amount of FDI for congenial business environment and adequate infrastructure facilities.

“We are among the worst performers in the global ranking," said the BoI executive chairman.

He said gas, power and infrastructure are some of the lucrative areas that interest the foreign investors.

He also stressed infrastructure development, and branding Bangladesh positively to attract more FDI.

According to the report, telecommunication sector performed the best in 2008 receiving $641.39 million, which was $201.90 million in the previous year.

Textiles and weaving pulled in $126.36 in 2008, while the amount was $102.35 million in 2007.

Banking, the third largest FDI recipient, attracted $141.76 million, which was $79.96 million in 2007.

Food industry received $22.89 million in 2008, agriculture and fisheries $14.43 million and others $139.5 million, while the figures were $9.84 million, $7.33 million and $264.99 million respectively in 2007.

Egypt emerged as the top investor in 2008 with $373.4 million as its telecom company Orascom invested heavily in Bangladesh's mobile phone operator Banglalink. The second largest investor was UK with $130.57 million. Bangladesh received $102.19 million from the United Arab Emirates, $70.72 million from Malaysia, $57.15 million from Japan and $44.64 million from South Korea in the period.

The United States, Hong Kong, Norway and the Netherlands were the other major investors in 2008.

BoI officials at the function said a total of 89 foreign companies registered themselves with the BoI in the first eight months of 2008 till August to invest Tk 4,161 crore, while registration in the same period of 2007 was worth Tk 4,668 crore.

Dr M Ismail Hossain, professor of economics at Jahangirnagar University, presented the report, while Abu Reza Khan, executive member of BoI, also spoke among others.


The Daily Star - Details News

 

[leonblack08]

Bangladesh achieves 5.9% GDP growth in 2008-09 fiscal: ADB​

DHAKA, Sept. 15 (Xinhua) -- Bangladesh's GDP grew by 5.9 percent in the 2008-09 fiscal year ended in June, slightly lower than 6.2 percent in the previous fiscal year due mainly to global economic slowdown, the Asian Development Bank said here Tuesday.

According to June 2009 issue of the Manila-based bank's Quarterly Economic Update for Bangladesh released here Tuesday, the country's GDP growth deterred because of the moderation in aggregate demand affected by a slowdown in exports and remittance inflows, and also underpinned by private consumption (about 75 percent of GDP), which rose by 6.0 percent.

It said several downside risks to the economy in the near term include a delayed recovery of the global economy, likely shortfalls in revenue collections and mobilization of external financing, and the onset of natural disasters.

According to the Quarterly Economic Update released through a press statement, the country's industry sector growth declined to 5.9 percent in 2008-09 from previous year's 6.8 percent as export production in the second half of the fiscal year slowed due to the global slowdown.

But the South Asian country's agriculture sector managed to post 4.6 percent in growth in 2008-09, up from 3.2 in the previous 2007-08, owing to high growth in food-grain production aided by favorable weather and strong government support.

The ADB update said weak investor sentiment also affected manufacturing growth. Growth in the power and gas subsectors dropped to 4.5 percent in 2008-09 from 6.8 percent in 2007-08, while growth in the construction sector dipped slightly to 5.7 percent.

The service sector growth also slowed slightly to 6.3 percent in 2008-09, due to the slowdown in remittance inflows, lower trade activities, and moderation in industry growth, it said.

Exports grew 10.3 percent in 2008-09, a sharp deceleration from the 15.9 percent in 2007-08 as retail sales in developed economies fell while imports in the same year rose only 4.1 percent. As a result, the trade deficit narrowed to 4.7 billion U.S. dollars in fiscal year 2008-09, from 5.3 billion U.S. dollars in 2007-08.

The Quarterly Economic Update said revenue collection remained unchanged at 11.2 percent of GDP in 2008-09 because of the sharp fall in import growth due to the fall in international fuel and commodity prices, the global economic crisis and slower expansion of economic activity.

Private sector credit growth slowed to 14.6 percent year-on-year in June 2009, down from 24.9 percent in June 2008, because of the slower trade growth and slack in investment activities due to the global economic recession.

The weighted average nominal exchange rate (taka/dollar) remained mostly stable in fiscal year 2008-09 with modest depreciation, moving between 68.5 taka-69.1 taka to one U.S. dollar, benefiting from the healthy and stable foreign exchange reserve position and high remittance inflows.

Growth of workers' remittances remained robust at 22.4 percent and pushed the current account surplus of 2.5 billion U.S. dollars in fiscal year 2008-09 from 680 million U.S. dollars in fiscal year 2007-08. The overall balance of payments surplus ballooned to 2.1 billion U.S. dollars in 2008-09 from 331 million in 2007-08.

Gross foreign exchange reserves were 7.5 billion U.S. dollars at the end of June 2009, up 1.3 billion U.S. dollars during the fiscal year while the falling trend in inflation continues with point-to-point inflation reaching 6.7 percent 2008-09 from 9.9 percent in 2007-08.

Bangladesh achieves 5.9% GDP growth in 2008-09 fiscal: ADB _English_Xinhua

 

[leonblack08]

Please note the downsizing of Indian export volume to BD. It is about $580 million less in the last fiscal than the previous one. Most of this can be attributed to less import of foodstuff.

The caretaker govt (CTG), specially Gen. Moeen, used all his authority to boost food production immediately after SIDR. Only due to Gen. moeen's efforts, the country took only two years to become virtually self-sufficient in staple food production. The govt before the CTG intentionally discouraged food self sufficiency, so that the Party cronies could import Indian food.

I hope, the present govt will do all the follow up works to keep on increasing agri output.

You will like this.ADB's words are supporting your view.

But the South Asian country's agriculture sector managed to post 4.6 percent in growth in 2008-09, up from 3.2 in the previous 2007-08, owing to high growth in food-grain production aided by favorable weather and strong government support.

 

[eastwatch]

Yea I know and we are wasting them as if we got them free. There is no way on earth BD could afford to use those scarce resource for producing power or using them in CNG run automobiles. The gas must be preserve only to be used in specialized industry and house hold cooking.

You cannot produce power without using fuel, and you cannot run the factories without power. How can we increase our GDP if the factories do not run? However, a time may come in the future, when BD economy is worth, say, $500 billion and its export is, say, $50 billion. A part, say, $8 billion out of that $50 billion export may then be used to import oil, gas and liquefied petroleum gas (LPG) from abroad.

At that stage of big GDP, the economy will become self-propelled. We will produce a certain amount of goods, export a good part of it and then purchase raw materials, foods and FUELS with the export proceeds. At the present stage of development, BD is luckier than many other developing countries to have a huge stock of coal and natural gas.

BD coal reserve is about five times more than the reserve of gas. BD should make best use of these fuel reserves so that the economy grows at a fast rate to reach a level when it can be self-propelled. At that point only, we can keep our gas underground and run the economy with the imported fuel.

However, please note that many of the gas fields are spread over the border to India and Burma. Will it be okay then, that we keep the gas underground only to be stolen by our two great neighbours?

 

[M_Saint]

If government need to pay $6 billion for the electricity, then so be it. We need power to get our economy moving. $6 billion in the vault of BB means nothing to the economy if we dont use them.
Most of the power projects are BOO or BOT. And big investment is also coming through PPP. So investors have to bring money from overseas which in turn will increase our foreign currency reserve, forget reducing.

Le Halua! If that is the case then what's wrong with BNP wala's accommodating TK 2,0000 (Around $3.5 B and that is too a hoax) CRORE in electricity sector? Seems like justice in AWAMY style, " Bichar mani kintu boro talgash ta amaar" has come into play with the push.

 

[eastwatch]

No we will do elevated express way which might include Rail as well. PM sent back the elevated expressway proposal last week to incorporated rail in it.
Regarding subway, we must go underground. Otherwise it will be limited to to only over the existing few big roads in Dhaka as there is no more space to run them through in the residential and commercial areas. If we go by open cut method then the question of relocating existing utility will come but with boring method we dont have to, as the subway will be way deeper than the existing utility lines.

A commuter train line and an expressway do not necessarily go to the same destination. I do not think such a project will be feasible in the long run. Separation of expressway and commuter rail road is needed. The foundation and the structures will be too heavy for a combined system and, therefore, it will be too expensive.

An underground system is also too expensive and takes too long to build one. On the other hand, an elevated or an over the ground loop line can be built in a much shorter time span. A proposed loop line may be skirted around the city, although, at some points, it can be laid overhead of the existing roads. Depending upon the availability of space, the rail tracks may be supported on either one-legged or two-legged (called 'rahmen') piers.

Some of the rail stations can be inter-connected initially by bus and finally by underground trains in order to facilitate transport to places in between these two stations. In case of both the deep tunnel or open cut constructions, the design and construction companies must get all the data related to the existing structures, such as utility lines, water canals, rivers, drains, manholes, roads, highways, building piles etc.

Whether some of these will be removed, relocated or dismantled is a different matter. These information are needed to select the route, its depth from the surface and to select the locations of stations and air-venting facilities. Therefore, even if the govt deptts provide necessary information, an extensive survey on the existing facilities must precede the selection of route.

 

[eastwatch]

The Daily Star - Details News

ADB PROJECTS 5.2pc GDP GROWTH FOR BANGLADESH
Star Business Report

The Asian Development Bank (ADB) forecast Bangladesh's economic growth at 5.2 percent for the current fiscal year (2009-10), down from nearly 5.9 percent the previous year.

The ADB report blames the effects of global slowdown on exports and remittances and a low consumer spending and domestic demand for this downturn in growth.

“GDP growth is forecast to slide further to 5.2 percent in fiscal 2009-10 as the global economic slowdown persists with continued moderation in external and domestic demand,” said the Manila-based international lender in Asian Development Outlook (ADO) 2009 report, released Tuesday.

The report is an ADB's flagship annual economic publication. This year's report has forecast economic expansion in developing Asia to come in at 3.9 percent, up from the 3.4 percent predicted in March. In 2010, the growth projection is likewise upgraded to 6.4 percent from 6 percent. Stronger growth in East Asia and South Asia underpinned the improved prospects.

Prospects for South Asia improved to 5.6 percent this year, up from the previous forecasts of 4.8 percent as the outlook for five of the eight sub-regional economies were upgraded.

The sub-region's limited reliance on trade partly shielded it from the adverse effects of the global slump. Emerging signs of a recovery in private business confidence and a continued large fiscal stimulus announced in the July 2009 budget helped bolster India's projected economic expansion to 6 percent this year, upgraded from 5 percent in March.

Bleaker prospects are projected for the Maldives, on account of weak tourism receipts, and for Pakistan and Sri Lanka due to tight domestic demand and the weak global economy.

 

[TopCat]

A commuter train line and an expressway do not necessarily go to the same destination. I do not think such a project will be feasible in the long run. Separation of expressway and commuter rail road is needed. The foundation and the structures will be too heavy for a combined system and, therefore, it will be too expensive.
An underground system is also too expensive and takes too long to build one. On the other hand, an elevated or an over the ground loop line can be built in a much shorter time span. A proposed loop line may be skirted around the city, although, at some points, it can be laid overhead of the existing roads. Depending upon the availability of space, the rail tracks may be supported on either one-legged or two-legged (called 'rahmen') piers.

Some of the rail stations can be inter-connected initially by bus and finally by underground trains in order to facilitate transport to places in between these two stations. In case of both the deep tunnel or open cut constructions, the design and construction companies must get all the data related to the existing structures, such as utility lines, water canals, rivers, drains, manholes, roads, highways, building piles etc.

Whether some of these will be removed, relocated or dismantled is a different matter. These information are needed to select the route, its depth from the surface and to select the locations of stations and air-venting facilities. Therefore, even if the govt deptts provide necessary information, an extensive survey on the existing facilities must precede the selection of route.

You are right. Express way and train track shoud be separated venture. But we must need underground as if you had circular rail and all how you could get to the center of the town. Also if you want to 100% discourage privately owned car then you have to follow New York model where a person is always in walking distance from a subway station. In addition to subway we also need circular rail, Gajipur-Dhaka-Narayanganj expressway etc.

 

[TopCat]

Le Halua! If that is the case then what's wrong with BNP wala's accommodating TK 2,0000 (Around $3.5 B and that is too a hoax) CRORE in electricity sector? Seems like justice in AWAMY style, " Bichar mani kintu boro talgash ta amaar" has come into play with the push.

Spending public money for the benifits of public is different than the spending public money in owns interest. BNP not only misappropriated the public money but also failed to secure any donor funding due to rampant corruption. We all know the mini power plants licensing scheme and how those were sold to BNP goons and WB had no other choice but to abandon the whole project. Also Tongi station, total waste of money, then Big Khambas with Tarique scam.

 

[eastwatch]

You are right. Express way and train track shoud be separated venture. But we must need underground as if you had circular rail and all how you could get to the center of the town. Also if you want to 100% discourage privately owned car then you have to follow New York model where a person is always in walking distance from a subway station. In addition to subway we also need circular rail, Gajipur-Dhaka-Narayanganj expressway etc.

Building a metropolitan railway system is an ongoing process. It will continue for at least 50 years. Important thing is how to plan a system that combines all the methods of rail way transportation. A circular loop line shall be around Dhaka, but it may not necessarily be completely skirting the city. Route can be decided on availability of land.

We have to understand that Dhaka is not something static. Today, where it is not a busy locality, tomorrow there will be thousands of houses and lakhs of people. A loop line will help Dhaka expand outwards.

Subway is needed, but whatever the political people say, it cannot be built overnight. A combined surface and overhead loop line will take lesser time to build. There must be bus services in between diagonally opposite stations along the loop line. A country's govt who talk of underground should have money to purchase thousands of buses. Bus service is very normal in any developed country.

Even if there is a suitable bus system, Dhaka also needs an underground ultimately. But, my point is not all cannot be underground, there must be surface trains as well and there must be loop line.

There is no way to discourage private cars in Dhaka. It will keep on increasing. But, there are many other reasons for traffic jam. There is problem with rail crossings and with traffic signalling system. There are still rickshaws running along the same route that a car takes. There are not many by-passes and no underground parking spaces. People park their cars at places of their choice.

To relieve the congstions, these bottlenecks are the first things that need to be attended. But, bus service is for those who are without cars. Unfortunately, most of the cars have concentrated in Dhaka. Because of car jungle, ordinary people like me suffer.

 

[eastwatch]

Spending public money for the benifits of public is different than the spending public money in owns interest. BNP not only misappropriated the public money but also failed to secure any donor funding due to rampant corruption. We all know the mini power plants licensing scheme and how those were sold to BNP goons and WB had no other choice but to abandon the whole project. Also Tongi station, total waste of money, then Big Khambas with Tarique scam.

About KHAMBA project, the total expenditure was Tk.13,500 crore. The main beneficiary was that KOKKO. After spending this much of money, BD poors did not receive a single kilowatt of additional power.

Khambas have eaten up all the electricity by probably some unknown methods only the mother of those two SONAR CHAND knows. It surprises me people with education support stealing national wealths of a poor country by the politically connected ones.

I wish this govt to do better. But, I am also a little confused, they are talking too big, but have little preparedness.

 

[eastwatch]

$16.58b sought from donors for PRSP
Friday, September 25,2009

DHAKA: The government has sought $16.58 billion from donor agencies to implement the revised three-year poverty reduction strategy paper (PRSP), which aims to generate employment and achieve higher economic growth.

The total cost to implement the second PRSP is Tk 3,108.27 billion, of which the government will mobilise Tk 2,590 billion from the domestic sources.

The development partners will finalise their commitment at a Local Consultative Group meeting on January 17-20.

"The government has placed its revised PRSP requirement before the multilateral lending agencies to help us implement the strategy paper," finance minister AMA Muhith said after the meeting with the foreign aid agencies on Thursday.

The government briefed the development partners on the changes made to the development guidelines and indicative costs of achieving goals in 18 sectors under the revised PRSP. Some donors earlier expressed their reservations about the revision of the paper.

The revised second phase of the PRSP will be finalised in December after it is debated in parliament and the government will have only 18 months to implement the mammoth plan to develop the country and alleviate poverty.

The finance minister is upbeat about achieving this fiscal revenue collection target as the government has put much emphasis on mobilisation.

A part of the resource gap of $16.58 billion can also be met through public-private partnership initiatives as it is not possible to get such amount of committed fund, he said.

"We need to motivate potential investors and in the next month the government will announce PPP guidelines and formulated laws relating to special economic zones," he added.

The donors have expressed some doubt about the implementation of the PRSP and termed it as very ambitious, the finance minister said.

"The donors said investment guideline lacks key policies. And we will incorporate their views after scrutinising them," he added.

A meeting source said the World Bank wanted continuity of the development guidelines, which means the non-implemented of PRSP programmes should be included in the five-year plan.

"The Asian Development Bank wanted the government to identify specific development areas, whereas Japan wanted the local resource collection to be more specified," he said.

Mr Muhith said the government will inform the developmental partners about the changes made in the PRSP after the consultation is over in December.

Country head of Department for International Development (DFID) Chris Austin said the donors are committed to help Bangladesh and reduce poverty.

"The government has sought expertise and resources from us, and we will take the final decision after studying them," he said.

The development partners have expressed their concern with the government about the amended public procurement act and guidelines and that they are 'generally pleased' with the government response, he added.

Mr Muhith made it clear that the second PRSP will be different from the first one as it will be debated in parliament and consulted with other stakeholders before the finalisation.

"The first one was never reviewed or monitored, but the current paper will be under the lens of the government," he said.

The public sector reform is essential to implement the development guidelines and it will also increase the efficiency of managing public expenditure, he added.

"The government will introduce sixth five-year plan from 2011-12, but there should be a development plan for the 2009-11 and the PRSP will fill up the gap," he explained.

Planning minister AK Khandkar said parliament will start debating the revised PRSP from October 4 and it will continue until November, he said.

"The planning ministry will also sit with line ministries in every one or two months to review the implementation of the development and PRSP projects," he added.

The government needs to strengthen the planning commission, Bureau of Statistics, IMED, and other government monitoring agencies for smooth implementation of the PRSP, Mr Khandkar said.

The government in the revised PRSP has projected growth of the gross domestic product (GDP) at 6.5 per cent in the final year of its implementation period in fiscal 2010-2011.

Besides, incorporation of the pledges made in election manifesto that aim to achieve eight per cent GDP growth by 2013, the governing party has also raised the execution cost of the three-year second PRSP.

The fund for social safety net programmes has been expanded by Tk 231 billion to Tk 265 billion, micro-credit by Tk 108 billion to Tk 113 billion, agriculture by Tk 80.5 billion to Tk 229 billion, food security by Tk 66 billion to Tk 151 billion and private sector development by Tk 24.64 billion to Tk 54 billion in the revised PRSP.

Representatives from the United Nations, International Monetary Fund, representatives of Japanese and Danish embassies, JICA, CIDA, EC Delegation, USAID, UNDP, among others, were present in the meeting.

The revised and amended PRSP-2 has been renamed as 'Steps towards Change: National Strategy for Accelerated Poverty Reduction II (FY: 2009-11)' and identified priority areas, including stable macroeconomic position and leash inflation in the backdrop of global recession.

It envisages effective steps against corruption, ensure supply of sufficient power and energy, remove poverty and inequality and establish good governance.

A sound macroeconomic management for higher economic growth and investment in priority and important areas is one of the main strategies to attain a society without inequality and poverty.

Required infrastructure, expansion of social safety net programme and development of human resources are the other strategies to reach the goals, the paper said.

Sustainability of the strategies will depend on promoting public-private partnership, specifying the proper roles of public and private sectors and providing stimulus package to offset the damage of the global recession.

The government will review the implementation of the PRSP every year and the three years mid-term budget framework will be replaced by five years term where new projects will be included along with the existing projects.

The second PRSP will emphasise on farm production increase, diversification of cash crop, input distribution at a reasonable cost, agriculture subsidy, promotion of agro processed industries, reconstruction of agriculture marketing management and establishment of price commission for the farm products.

Dredging, flood control and improved irrigation system will be undertaken to develop water resources management, and national rural development committee will be formed under the leadership of the prime minister to formulate rural development policies, the draft PRSP spelled out.

The government will construct four-lane highways and important bridges for effective road network and it will also develop road network at the border areas to boost regional trade.

The Padma Bridge will be constructed by 2013 and the Bangladesh Railway will undertake a massive planning to improve the mass people communication network for cheap transportation.

An action plan will be prepared for Petrobangla and its subsidiaries to increase their capacities and efficiency, and a guideline will be formulated under PPP initiative where local and foreign investors can take part in energy development.

The government has a target to generate 7,000 megawatt by 2013 and 8,000 megawatt by 2015.

Land record and management will be computerised, khas land will be distributed among the landless and laws will be formulated for planned utilisation of lands under the new PRSP.

The revised PRSP has attached importance to expanded social safety network programme to protect the vulnerable from social, economic and natural calamities and the main goal of the programme is to bring all vulnerable under the safety net umbrella.

Available food and purchasing power to buy those are two important components of the food security, and the government will emphasise on disaster and risk management, stipulates the PRSP.

Effective coordination among public and private organisations and introduction of insurance policies to compensate the affected people are the policies undertaken by the PRSP.

The government will attach importance to primary, secondary and higher education to get knowledge-based society and to maximise the number of productive human resources in the country.

The main target of science and technology guideline is to have knowledge-based society through which growth will increase and poverty will reduce.

 

[eastwatch]

PM eyes $7b FDI by 2015 :: Bangladesh :: bdnews24.com ::

PM eyes $7b FDI by 2015
Fri, Sep 25th, 2009 3:50 pm BdST
Shehabuddin Kislu from New York

New York, Sept 25 (bdnews24.com)—Prime minister Sheikh Hasina has said her government has sets it sights on boosting foreign direct investment into the country to $7 billion by 2015.

At an address in front of a small group of investors at Grand Hyatt New York on Thursday evening, she said it has also set aside $350 million for three public-private partnership programmes in an effort to draw foreign money.

She urged global investors to invest in Bangladesh and said her government will extend all support to encourage investment.

She called upon the investors to consider Bangladesh as their next Asian investment destination as it offers low-cost labor, large domestic market and market access to nearly 3 billion people in Asia.

Bangdesh's economy has remained somewhat insulated from the fallout of the global financial downturn that has ravaged even many developed economies.

Hasina mentioned the envisaged improvement of the investment environment in the private sector, and the public-private-partnership (PPP) initiative will soon be brought under the PMO, which will enable it to work closely with the Board of Investment.

Geographically, Bangladesh is today considered a country of immense possibilities, as its millions of youths have already created waves in the global labour market, she said.

Highlighting the stupendous growth rates achieved by India and China in the recent past, Hasina said the two promising Asian giants expect to attain 50 percent more growth by 2050.

Bangladesh hopes to fall successfully into their footsteps soon by introducing e-governance throughout and cutting in on internet expenditure by 75 percent.

Sajeeb Wazed Joy, the prime minister's son, also spoke at the talk sponsored by Trans-First, a US-based money transfer agency.

JP Morgan, Citibank, Bear Stearns and other big business firms were represented at the seminar.

Last month, the Bangladesh Bank said FDI during 2008 topped $1 billion for the first time with the fast-growing telecommunications sector drawing nearly two-thirds of the money.

The government is now shifting focus to boost infrastructure projects and deal with a chronic power-shortage problem. Bangladesh can produce about 3,500 megawatts although it needs approximately 5,500 megawatts of energy production capacity.

The IMF projects the economy to grow 5 percent in 2009 and 5.4 percent in 2010. Hasina said her government expects 2009 growth of 6 percent.

Officials are also using Bangladesh's proximity to larger, more rapidly developing consumer markets like China and India as a key selling point, calling it the "India-plus-one strategy."

Bangladesh is especially targeting Bangladeshi ex-patriates to continue investing in the country.

During the fiscal year ended in June, remittances rose 22 percent, or by $1.2 billion, growing faster than the country's garment export business, its largest industry which has suffered during the global economic crisis.

Meeting with Nepal PM, Maldives president

Hasina met with Mohamed Nasheed, the president of the Maldives, and her Nepal counterpart Madhob Kumar Nepal at the United Nations HQ on Thursday.

Abu Taher, a journalist based in New York, said, quoting the the Maldives president, that the Indian Ocean island nation will will take 65 physicians from Bangladesh soon.

Nasheed also expressed his willingness to take soil from Bangladesh to raise the height of the country from the sea level to deal with the impacts of climate change.

Both the countries agreed to work together to fight the affects of the climate change.

Hasina and Nepal discussed the transit issue and use of Mongla Port.

The prime minister offered to give Nepal 15 percent special cut in service charge for using the port.

Hasina, who came to New York last Tuesday, will address the General Assembly on Saturday.

She joined a private working dinner with UN secretary-general Ban Ki-moon on Tuesday, a special ceremony and dinner hosted by US president Barack Obama on Wednesday and a luncheon with secretary of state Hillary Clinton on Thursday. She is due back on Oct 1.