Bangladesh Economy: News & Updates

[Raquib]

ADP to be amended to Tk 22,500 crore: official

Tue, Mar 18th, 2008 2:39 pm BdST
Abdur Rahim Harmachhi
bdnews24.com senior correspondent

Dhaka, March 18 (bdnews24.com) – The government has planned to slash the Annual Development Programme (ADP) to Tk 22,500 crore from Tk 26,500 crore apparently for the administration's failure to use the allocation for the current fiscal year.

The interim government has used only 25 percent of the total allocation of the ADP in July-January of the current fiscal year while it was 40 percent during the same period in fiscal 2006-07, according to the statistics of the Planning Commission.

Officials have said the sluggish implementation of the annual plan has prompted the government to slice down the total allocation.

Planning secretary Jafar Ahmed Chowdhury told bdnews24.com on Monday: "The ministry has decided to slash the size of the ADP to Tk 22,500 crore. But everything will be finalised in a meeting of the Executive Committee of National Economic Council (Ecnec) on March 24."

A draft on the ADP for fiscal 2008-09 will also be placed before the meeting, he said.

Economists in a pre-budget consultation advised the government Monday to speed up the implementation of the ADP.

The economists also asked the government not to go for an ambitious ADP for the upcoming fiscal year.

In a post meeting briefing, finance adviser AB Mirza Azizul Islam Monday told reporters: "The economists advised the government to speed up the ADP implementation (for the current fiscal year). They also asked the government to keep the size of the ADP for fiscal 2008-09 small and manageable."

The adviser had said the government would give importance to the suggestions by the economists.

According to the Bangladesh Economic Review, the size of the ADP for fiscal 2006-07 was Tk 26,000 crore but at the end of the year the plan had been slashed by Tk 4,400 crore.

In fiscal 2005-06, the ADP was for Tk 24,500 crore but later it had been cut down to Tk 21,500 crore.

But the government could not even implement the amended ADP in the previous fiscal years.

 

[Raquib]

Malaysia keen to invest in power sector

Malaysia has shown deep interest to invest in power sector, construct the Dhaka-Chittagong Elevated Express Highway and recruit skilled Bangladeshi manpower. Malaysian High Commissioner in Dhaka Dato Abdul Malek bin Abdul Aziz said this at a press conference at the National Press Club in the city on Tuesday.

The high commissioner opined that quick decision in the power and energy sector if Bangladesh really intends to woo foreign direct investment (FDI) in the sector. Malaysia has mainly invested in the information technology (IT), shipbuilding, telecom, power and food and beverage sectors with total investments in Bangladesh till November, 2007, standing at US$ 1.337 billions. Abdul Malek said a high-powered Malaysian delegation will arrive in the city to explore new investment opportunities in Bangladesh and informed the press that one-to-one business matching sessions, to be organised jointly by MATRADE and BMCCI at Dhaka Sheraton Hotel.

To question of reducing bilateral trade gap, Dhaka must diversify its export basket and add new products to offer Malaysian consumers. Malaysia also interested to establish Hal Shopping Mall in Bangladesh through which they want to develop Halal Products in Bangladeshi for local consumption as well as for export to third countries. He also said Dhaka should offer leather, knitwear, ceramic and pharmaceutical to Kuala Lumpur as these products have high demand in the Malaysian market.

On export of manpower and harassment of some Bangladeshis in Kula Lumpur, the high commissioner told the press that 230,000 Bangladeshis are working in the SE Asia, adding that the incidence of harasmant of workers is very insignificant.
Abdul Malek also opined that prompt and timely decision, consistency and continuity in policy, security to entrepreneurs and transparency in bureaucracy will give Bangladesh an edge over its competitors in wooing foreign direct investment (FDI).
Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) is organizing the Showcase-Malaysia-2008 for the first time in Bangladesh in collaboration with Malaysia High Commission in Bangladesh and Malaysia South-South Association (MASSA), Malaysia External Trade Development Corporation (MATRADE) and Ministry of Entrepreneurs and Cooperative Development (MECD). Foreign Adviser Iftekhar Ahmed Chowdhury will inaugurate the three-day trade show at the Dhaka Sheraton Hotel on Thursday.

Syed Moazzam Hossain, Secretary General of BMCCI, has requested high commissioner to pursue Malaysian investors to invest in textiles, clothing, ceramic and porcelain and pharmaceutical sectors in joint ventures in a bid to tap the European and the USA markets. Hossain said local textile sector needs investment worth several billion dollars and Malaysian entrepreneurs can set up textile mills in joint venture with 100 per cent ownership. Moazzam Hossain said Bangladesh enjoys special privilege including Generalised System of Preference (GSP) to the USA and the EU markets and Malaysia can tap this opportunity. He urged the high commissioner to import more Bangladeshi goods in the days to come as Kula Lumpur enjoys a huge trade surplus with Dhaka.

Bangladesh exported goods worth US$ 16.90 million in 2006-2007 to Malaysia, while exports to Bangladesh valued at of US$ 384.16 millions during the same year. He also mentioned as labour cost is rising in SE Asian country, Malaysia can shift labour intensive industries to low cost destination like Bangladesh that offers congenial environment and special export processing zones (EPZs). “As a measure to reduce the trade gap we will participate in the INTRADE Malaysia 2008 exhibition to be held in Kuala Lumpur in November this year as we participated in the previous events,’ Moazzam. The main objective of the showcase is to provide a platform for business communities of Bangladesh and Malaysia to establish and foster business linkages and collaborations.

About 50 Malaysian companies including manufacturers, exporters, traders, educational institutions, service providers like, telecommunication, banking, airlines, health care and medical, tourism, shipping, etc. are participating in showcase with their products and services including food and beverages, palm oil, pharmaceutical products, herbal, health supplement, cosmetics, personal care products, household items, home appliances, gift and decorative items, electrical and electronic products, generators, children play ground equipment, rubber roller for printing, drinking water vending machine, automotive products, lead acid batteries, shipping services, tours and travel services, furniture, etc.

 

[Raquib]

Malaysia keen to invest in power sector

Malaysia has shown deep interest to invest in power sector, construct the Dhaka-Chittagong Elevated Express Highway and recruit skilled Bangladeshi manpower. Malaysian High Commissioner in Dhaka Dato Abdul Malek bin Abdul Aziz said this at a press conference at the National Press Club in the city on Tuesday.

The high commissioner opined that quick decision in the power and energy sector if Bangladesh really intends to woo foreign direct investment (FDI) in the sector. Malaysia has mainly invested in the information technology (IT), shipbuilding, telecom, power and food and beverage sectors with total investments in Bangladesh till November, 2007, standing at US$ 1.337 billions. Abdul Malek said a high-powered Malaysian delegation will arrive in the city to explore new investment opportunities in Bangladesh and informed the press that one-to-one business matching sessions, to be organised jointly by MATRADE and BMCCI at Dhaka Sheraton Hotel.

To question of reducing bilateral trade gap, Dhaka must diversify its export basket and add new products to offer Malaysian consumers. Malaysia also interested to establish Hal Shopping Mall in Bangladesh through which they want to develop Halal Products in Bangladeshi for local consumption as well as for export to third countries. He also said Dhaka should offer leather, knitwear, ceramic and pharmaceutical to Kuala Lumpur as these products have high demand in the Malaysian market.

On export of manpower and harassment of some Bangladeshis in Kula Lumpur, the high commissioner told the press that 230,000 Bangladeshis are working in the SE Asia, adding that the incidence of harasmant of workers is very insignificant.
Abdul Malek also opined that prompt and timely decision, consistency and continuity in policy, security to entrepreneurs and transparency in bureaucracy will give Bangladesh an edge over its competitors in wooing foreign direct investment (FDI).
Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) is organizing the Showcase-Malaysia-2008 for the first time in Bangladesh in collaboration with Malaysia High Commission in Bangladesh and Malaysia South-South Association (MASSA), Malaysia External Trade Development Corporation (MATRADE) and Ministry of Entrepreneurs and Cooperative Development (MECD). Foreign Adviser Iftekhar Ahmed Chowdhury will inaugurate the three-day trade show at the Dhaka Sheraton Hotel on Thursday.

Syed Moazzam Hossain, Secretary General of BMCCI, has requested high commissioner to pursue Malaysian investors to invest in textiles, clothing, ceramic and porcelain and pharmaceutical sectors in joint ventures in a bid to tap the European and the USA markets. Hossain said local textile sector needs investment worth several billion dollars and Malaysian entrepreneurs can set up textile mills in joint venture with 100 per cent ownership. Moazzam Hossain said Bangladesh enjoys special privilege including Generalised System of Preference (GSP) to the USA and the EU markets and Malaysia can tap this opportunity. He urged the high commissioner to import more Bangladeshi goods in the days to come as Kula Lumpur enjoys a huge trade surplus with Dhaka.

Bangladesh exported goods worth US$ 16.90 million in 2006-2007 to Malaysia, while exports to Bangladesh valued at of US$ 384.16 millions during the same year. He also mentioned as labour cost is rising in SE Asian country, Malaysia can shift labour intensive industries to low cost destination like Bangladesh that offers congenial environment and special export processing zones (EPZs). “As a measure to reduce the trade gap we will participate in the INTRADE Malaysia 2008 exhibition to be held in Kuala Lumpur in November this year as we participated in the previous events,’ Moazzam. The main objective of the showcase is to provide a platform for business communities of Bangladesh and Malaysia to establish and foster business linkages and collaborations.

About 50 Malaysian companies including manufacturers, exporters, traders, educational institutions, service providers like, telecommunication, banking, airlines, health care and medical, tourism, shipping, etc. are participating in showcase with their products and services including food and beverages, palm oil, pharmaceutical products, herbal, health supplement, cosmetics, personal care products, household items, home appliances, gift and decorative items, electrical and electronic products, generators, children play ground equipment, rubber roller for printing, drinking water vending machine, automotive products, lead acid batteries, shipping services, tours and travel services, furniture, etc.

 

[azmax007]

Thanks for all that, but the actual GDP of Bangladesh is higher than the official numbers bcz a lot of money in BD are not accounted for on the official papers. With all these great development I hope that there is a FTA between Pakistan and Bangladesh.

 

[Raquib]

Govt rolls out Tk 100 crore project for rural poor

Tue, Apr 8th, 2008 11:30 pm BdST
Dhaka, April 8 (bdnews24.com) – The government has taken up a Tk 100 crore special job creation project to help the rural poor earn money, a government official said Tuesday.

Work on the project named 'Money for Work' begins in April, said Molla Wahiduzzaman, acting secretary of the food and disaster management ministry.

Wahiduzzaman said that the people enjoying VGF or VGD facilities would not benefit from this project.

Each worker under the project will get Tk 150 a day.

The secretary said deputy commissioners had been asked to implement the project.

Upazila Nirbahi Officers in cooperation with Union Councils will identify the 'real poor' and create jobs for them.

The project includes repairing embankments and roads, excavating canals to boost agricultural output, planting trees, building bamboo bridges as well as public health and environment related works.

Divisional commissioners will inspect the projects and report to the ministry to ensure they are being implemented properly.

A senior official of the food and disaster ministry said that deputy commissioners would allocate money for upazilas on the basis of population size and needs.

 

[Raquib]

Standard RMG export to cross $145m this year
Refayet Ullah Mirdha

Standard Group, one of the country's leading ready-made garment (RMG) manufacturing companies, said its export will increase by more than 10 percent this year exceeding US$ 145 million.

Behind the export surge has been increased demand from the US, Canada and the European Union with sales of trousers and skirts doing particularly well.

The group, having more than 10 factories, exported apparels worth $130 million in the last fiscal, Managing Director of Standard Group Mosharraf Hussain said yesterday.

“Every year we have a target to increase the export by 10 percent. In the coming year the export might grow more than 10 percent as the trend of placing orders by buyers is still high,” Mosharraf Hussain said.

He said since the woven and sweater production of his group has been maintaining a steep rise over the last few years, the company will now focus on establishing spinning mills to source yarn from its own mill.

“I have a plan to set up a spinning mill soon probably this year or in the next year. Now I import most of the raw materials mainly from China, India, Pakistan and Korea,” he said.

Chief of the group said higher competition from other countries like China, Vietnam and India contributed to a reduction of profit margin in the global RMG markets, although buying orders in Bangladesh have been increasing.

He declined to comment on his company's profit margin and total investment of the group.

Mosharraf Hussain said Standard Group strives to maintain its position as one of the major players in the country's RMG industry.

However, he warned of a future bottleneck in production due to the lack of skilled workers.

Investors in the sector said the country's position in the global RMG market has strengthened due to the recent appreciation of Chinese currency against the US dollar and political turmoil in Pakistan.

When asked, Mosharraf Hussain said Bangladesh receives more orders, compared with those of other countries, as the country produces average value added items whereas China, the largest RMG supplier in the world, produces high value added items.

He said the recent appreciation of Chinese currency against the US dollar would contribute to the growth of RMG sector in Bangladesh as buyers can hardly make profit out of high-vale added items.

“At present, majority of the apparel products of his factories are manufactured according to the designs supplied by the buyers,” Mosharraf Hussain said, adding that he has a plan to open a design house for developing new designs and fashion.

He said, gas rationing in the factories was a wrong decision of the government as the sector uses gas as its primary source of energy.

Standard Group is one of the main suppliers of school trousers and dresses to British stores in UK.

The company, employing 25,000 workers, has been supplying school dresses in the UK market over the last few years. The group's other products include shirts, trousers, sweaters and women's wear.

USA based GAP and Sears and Europe based ASDA are the major buyers of the group.

:The Daily Star: Internet Edition

 

[Raquib]

Export earnings rise by 11.33 per cent in 8 months

DHAKA, Bangladesh, April 15 (BSS)- Bangladesh's export earnings
reached 8932.59 million US dollars in the first eight months (July - February) of the current fiscal, showing an 11.33 per cent rise over the earnings in the corresponding period in fiscal 2006-07.

Quoting Export Promotion Bureau (EPB), an official handout today said the export target in the first eight months of fiscal 2007-08 was 9324.95 million US dollars.

Export earnings from knitwear sector in the July-February period in the current fiscal were 3469.65 dollars against 2980 dollars in the corresponding period in the previous fiscal.

The export earrings in the woven garment sector in the first eight months of the current fiscal were 3289.23 million dollars against 3113.83 million dollars in the corresponding period in the previous fiscal.

Other sectors that showed upward trend in export earnings are: frozen food, jute goods, home textiles, leather, raw jute, petroleum byproduct, footwear, agricultural products, chemicals, pharmaceuticals, tea, ceramic products, textile fabrics, terry towel and other primary and industrial products.

However, export earnings have reduced in engineering products, handicrafts, chemical fertilizer, computer services, and melamine and tableware sectors, the handout said.

No impact of phasing out textile quota system, and worldwide social, economic and political instability was visible on Bangladesh's export activities.

Export earnings are increasing gradually as the government has taken multifarious steps for diversifying export bases and expanding export market to face the challenges of globalization, according to the handout.

Bangladesh Sangbad Sangstha (BSS) - Home

 

[solid snake]

I heard Bangladesh is getting a lot of remittances. Good for them.

 

[azmax007]

yes the next generation of Bangladeshis are planning to boost the country to a middle-income country. We already have $3 billion just from the UK Bangladeshis for the investments of just a district, the Sylhet district.

Poverty is being reduced tremendously, and education, and health services is now easy to gain.

In general Bangaldeshis are tired of seeing poor people in the coutnry so we're aggresively expanding Grameen and BRAC to totally obliterate poverty Bangladesh. Insh'Allah we'll be successful but 2030.

 

[Neo]

Bangladesh economy can grow 7pc or more: ADB​

Star Business Report

The Asian Development Bank (ADB) country director in Dhaka has said Bangladesh has the potential to achieve 7 percent or more economic growth a year, despite challenges of political uncertainty, weak infrastructure and vulnerability to natural disaster.

"Political stability is fundamental for economic growth and the economy will not be sustained without a stable political base," Hua Du told a press briefing yesterday while releasing the Bangladesh Quarterly Economic Update March 2008.

Hua Du is leaving next month after ending her four-year tenure as the ADB country director in Bangladesh.

The Quarterly report identified weak infrastructure, including serious power shortages, as serious obstacle to the country's economic growth apart from political uncertainty leading up to the December 2008 elections. Oil and food grain prices increase in the international market also posed significant risks, it said.

The report said Bangladesh's GDP is expected to grow by 6 percent in FY2008, down from 6.5 percent in FY2007 because of moderate agriculture growth following the extensive flooding and cyclone.

It said fear and uncertainty among the investor community, apparently created by the government's comprehensive anticorruption drives, have started to ease.

The ADB quarterly said a major global report (by the PricewaterhouseCoopers) identified 13 emerging economies, including Argentina, Bangladesh, Egypt, Iran, Malaysia, Nigeria, Pakistan, the Philippines, Poland, Saudi Arabia, South Africa, Thailand and Vietnam, as having the potential to grow faster.

The report concludes that long-term prospects of these countries are upbeat in addition to major emerging economies including Brazil, India, Indonesia, Mexico, China, Russia and Turkey.

The global centre for economic activity is already shifting to India, China and other large emerging economies, and Bangladesh must make all efforts to capitalise on its comparative advantages to benefit from this global paradigm shift, said the report.

On food price shocks in Bangladesh, the ADB report said market surplus of available food grains is estimated at 3.6 million tonnes in Fy2008.

The ADB observed that although domestic food grain prices are expected to moderate somewhat, high food prices are expected to persist in the foreseeable future. "Despite a bumper boro crop, risks of a supply shortage are possible if the next aman and boro crops are affected by natural disasters or other factors," it said.

"In that case, the shortfall will have to be offset by buffer stocks through higher imports," the report said.

Rapidly growing prices of food, mainly rice, seriously curtailed the purchasing capacity of the people living below the poverty line and the government employees, industrial workers and others with fixed income.

The focus of policy responses should be on targeted interventions to protect the poor and vulnerable in the face of rising food prices, the report remarked.

When asked about her experiences in Bangladesh in the last four years, Hua Du said Bangladesh people's hard work, friendly attitude and hospitability attracted her most.

"I have also noticed people's resilience here, specially the way they recovered from natural disaster is simply remarkable," she said.

She also suggested the government focus on governance issues for country's development. "Governance is also related to the improvement in efficiency," she added.

:The Daily Star: Internet Edition

 

[azmax007]

Insh'Allah it'll happen. The World Bank predicts Bangladesh to be a middle-income economic country like Malaysia, Philippines, and Brazil in the near future because of the social developments that's reducing poverty and increasing education.

Not to mention Bangladeshi abroad are returning and setting up institutions to further reduce poverty and increasing education.

 

[Neo]

Bangladesh adds 1.1m mobile phone users ​

Friday, August 15, 2008

DHAKA: Bangladesh’s six mobile phone operators signed up a total 1.1 million new subscribers in July, lifting the user base to 44.8 million in one of Asia’s fastest-growing cellular markets.

Top operator Grameenphone, controlled by Norway’s Telenor, which is gearing up for a $300 million public offer, raised its subscriber base to 20.84 million in July from 20.31million in June, telecoms regulator data showed on Thursday. Egypt-based Orascom Telecom’s Banglalink, the No 2 telecoms firm, signed up 440,000 new users in July to take its total to 9.90 million.

Third-ranked Aktel, majority owned by Telekom Malaysia International, added 130,000 users, taking its user base to 7.98 million at end-July.

Warid Telecom International of the United Arab Emirates, which launched its Bangladesh operations in May 2007, ended July with 3.48 million users from 3.31 million.

The only CDMA carrier, City Cell, a joint venture between Pacific Bangladesh Telecom Ltd and Singapore Telecommunication, saw its user numbers fall to 1.67 million in July from 1.70 million in June.

State-owned Teletalk’s user base stood at 930,000 in July. The number of mobile phone users rose nearly 58 per cent in 2007 to 34.4 million, the Bangladesh Telecom Regulatory Commission said, helped by competitive tariffs and cheap handsets.

Impoverished Bangladesh has the lowest average monthly cost for mobile telephone use at all levels of use, according to a recent report titled ‘Mobile Benchmark Studies in South Asia and Latin America’. Mobile phone services are an important contributor to the cash-strapped nation’s economy.

Bangladesh adds 1.1m mobile phone users

 

[Nafees]

High-profile teams to visit CIS to expand export basket in Jan by Refayet Ullah Mirdha
Source: :The Daily Star: Internet Edition

Two high-profile government trade delegations will go to Russia and some other CIS (Commonwealth of Independent States) countries next January for better trade ties, especially for augmenting Bangladesh's export volume.

The manufacturers and exporters hailed the move saying that it will open up a window for domestic product exports.

According to the Export Promotion Bureau (EPB), itineraries of these teams are now being worked out.

The countries they will visit include Russia, Ukraine, Uzbekistan and Kazakhstan, the state-run export promotional agency said.

"In this connection, EPB has already held three meetings with the high ups of the ministries concerned and stakeholders of different export oriented sectors,” its Director General Khalilur Rahman told The Daily Star yesterday.

He said CIS countries are potential markets for Bangladeshi products, but it needs exploration of markets through regular visits and interactions both at government and private levels.

He pointed to the fact that Bangladesh's trade with Russia and other CIS countries is not up to the expected level, as those markets remained untapped over the years.

He is of the opinion that the country should overcome some obstacles to expansion of business with these countries, which include complexity in banking clearance, long lead-time and long sea route.

EPB data shows Bangladesh products worth of US$48.88 million were exported to Russia during the first nine months of the immediate past fiscal year (2007-08), while in FY 2006-07 the figure was $31.71 million.

In FY 2007-08, goods worth $7.52 million were exported to Ukraine, while it was $6.22 million a year earlier.

Data also show that the trade gap with Uzbekistan is so high. Bangladesh imports 70 percent of the total yearly consumption of cotton from Uzbekistan.

In FY 2006-07, goods worth $243.97 million from Uzbekistan were imported against $0.28 million exports.

Fazlul Hoque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the government's move is welcome, as CIS countries are potential export destinations for Bangladesh's ready-made garment (RMG) items.

He said, “When Turkey has been making huge business with these countries through outsourcing RMG items from Bangladesh, we should put every effort to make direct business with these countries."

Khalilur Rahman said the EPB has also a plan to send trade delegation to some Latin American countries in mid-2009.

He said pharmaceutical products, shrimp, agro-products, processed foods and RMG products are the main target of exports to those countries.

Bangladesh earned $14.110 billion from exports in FY 2007-08, registering a growth of 15.87 percent over the previous fiscal.

 

[Nafees]

Bangladeshi Local firm to build 10 ships for Japan

Source: Bangladeshi Local firm to build 10 ships for Japan Positive Bangladesh

:The Daily Star: Internet Edition

Highspeed Shipbuilding & Engineering Co, a Bangladeshi local shipbuilder, has won a US$50 million order from Japan to build ten small ships, further evidence of the country’s booming shipbuilding industry.

This is the first time the country has won a Japanese contract and underlines the increasing global acceptance of Bangladesh as an emerging shipbuilding nation. The buyer is Japan based Tokyo Freighting Ltd, a shipping company. The agreement was signed on Wednesday in Dhaka. “Since the Japanese firm is very conscious about standards and compliance, Tokyo Freighting experts will constantly supervise the overall manufacturing of these ships,” said KM Mahmudur Rahman, managing director of Highspeed Shipbuilding & Engineering, who signed the deal with Shigeki Date, managing director of Tokyo Freighting.

As per the agreement Tokyo Freighting Ltd will also provide technical support to Highspeed in developing its Narayanganj dockyard, in line with Japanese standards. Highspeed, which is to invest around US$ 5 million in the coming months to upgrade the manufacturing facility of its dockyard, will supply the ships by October 2010. Shigeki Date, managing director of Tokyo Freighting Ltd, along with Executive Director Yoshiteru Ikeda visited Highspeed dockyard recently and expressed their satisfaction, as it is well equipped with modern machinery. Manufacturing of the first four ships will start by December this year and will be delivered to Tokyo Freighting by March next year. The size of the ships, including dry cargo carriers and oil tankers, will vary from 2,000 tonnes to 4,000 tonnes. The Japanese company will supply all raw materials and other equipment.

Rahman said Japanese manufacturers are currently outsourcing small ships, as it is not cost effective now to manufacture them at huge dockyards. “It is a great development for the country’s shipbuilding industry as Japan, the most advanced shipbuilding nation in the world, starts building in Bangladesh. It may inspire other advanced shipbuilding nations to come to Bangladesh,” Rahman hoped. Currently local shipbuilders including Ananda Shipyard and Western Marine Shipyard are working on about US$ 400 million worth of orders for over 40 vessels for buyers from Germany, Denmark, Netherlands and Mozambique. The success of these two companies have encouraged other local companies such as Meghna Group of Industries, Rangs Group, Khan Brothers and Narayanganj Engineering & Shipbuilding to jump on the bandwagon of global shipbuilding market.

Behind the current boom of the industry is the global rise in the demand for new ships, especially smaller ones with a capacity below 15,000 dead weight tonnes (DWT). This has helped Bangladesh attract the attention of international shipping companies as traditional shipbuilding countries such as Japan, China, South Korea and Vietnam are not interested in building ships with under 20,000 DWT.

 

[Nafees]

Source: http://www.allheadlinenews.com/articles/7011870765
Siddique Islam - AHN South Asia Correspondent

Dhaka, Bangladesh (AHN) - Bangladesh's near-term economic outlook remains positive, but it faces several downside risks that might make economic management challenging in the near future, the central bank of Bangladesh said on Thursday.

"Output and productivity growth in the economy has been suffering from continuing power shortages, other infrastructure bottlenecks and socio-political events," the Bangladesh Bank (BB), the country's central bank, said in its quarterly report for April-June, released on Thursday.

Satisfactory growth in productivity is crucial to sustaining the positive near-term economic outlook, the report said, adding that it would be important to strengthen the infrastructure and other support services and ensure congenial business climate in the coming months.

"The authorities concerned should respond timely to face the challenges to avoid adverse impact on the economy," Mustafa K. Mujeri, chief economist of the central bank, told reporters in the capital while releasing the quarterly.

He also said socio-political stability will be restored following the general election in December 2008 and confidence among concerned stakeholders will be built regarding continuity of key economic polices in the post-election period.

The near-term policy thrust requires sustaining the recent turn-around of economic activities and strengthened support to lead the economy to higher growth for achieving the targeted growth, the central bank said. The gross domestic product (GDP) growth has been set at 6.5 per cent for fiscal 2008-09 (FY09).

"The upward growth trend of real sectors will have to continue for curbing inflationary pressures on the overall economy," Mujeri said, adding that coordination will be needed between growth and inflation to improve the macro-economic situation with a view to alleviating poverty.

In order to contain demand pressure needed for anchoring inflation expectations, the central bank of Bangladesh will closely monitor the monetary aggregates like reserve money, broad money and credit growth and will take corrective measures if necessary, the quarterly added.

"The inflationary pressure on economy will be eased further and the central bank will take whatever measures needed to keep it at a tolerable level," Mujeri noted.