Bangladesh Economy: News & Updates

[eastwatch]

Remittance tops $15bln

Remittance tops $15bln | Bangladesh | bdnews24.com

Wed, Jun 30th, 2010 2:40 pm BdST

Dial 2000 from your GP mobile for latest news
Dhaka, June 30 (bdnews24.com) – Foreign remittance topped $15 billion in the outgoing fiscal breaking all previous records.

Prime minister Sheikh Hasina told the parliament on Wednesday during a question-answer session that Bangladesh had earned over Tk 1054 billion (about $15.26 billion) in remittance until May 10 this year.

The $15 billion remittance figure is almost 50% more than what all of us were expecting. Allahu Akber. The figure is what the country has received only until May 10. So, in the remaining 51 days it has risen to more than $16 billion. We may have to wait for a few more weeks before the Bangladesh Bank can tally the total and declare the updated figure.

What an achievement! BD people, specially who are from villages, talk less, do not really understand jokes and work hard. Anyway, praise be to Allah that they ate well, kept themselves in good health and worked hard.

 

[bd_4_ever]

The $15 billion remittance figure is almost 50% more than what all of us were expecting. Allahu Akber. The figure is what the country has received only until May 10. So, in the remaining 51 days it has risen to more than $16 billion. We may have to wait for a few more weeks before the Bangladesh Bank can tally the total and declare the updated figure.

What an achievement! BD people, specially who are from villages, talk less, do not really understand jokes and work hard. Anyway, praise be to Allah that they ate well, kept themselves in good health and worked hard.

Big achievement indeed....!!!

I just hope the government channels this money and puts it to use....along with it, spend at least 1/10th of it behind defence as i mentioned earlier.....inshALLAH we will develop as a prosperous nation where no one will be hungry and can lead a safe, secured, well-off life....


Cheers!!!

 

[TopCat]

The $15 billion remittance figure is almost 50% more than what all of us were expecting. Allahu Akber. The figure is what the country has received only until May 10. So, in the remaining 51 days it has risen to more than $16 billion. We may have to wait for a few more weeks before the Bangladesh Bank can tally the total and declare the updated figure.

What an achievement! BD people, specially who are from villages, talk less, do not really understand jokes and work hard. Anyway, praise be to Allah that they ate well, kept themselves in good health and worked hard.

something misquoted here. remittance figure is $11 bln this year.

 

[ironman]

Bangladesh likely to sign $1.0b loan deal with India this month

FHM Humayan Kabir

Bangladesh has completed negotiations for securing US$1.0 billion loan from India for building infrastructure, which aims at developing regional transportation facilities, officials said Thursday.

"We completed negotiation with India last month. The neighbouring country has $1.0 billion credit to Bangladesh," economic relations division (ERD) secretary M Musharraf Hossain Bhuiyan told the FE.

“We are hopeful to sign the loan agreement with the Indian state-owned EXIM bank this month," he said.

Under a bilateral discussion in New Delhi between the prime ministers of the two countries in January this year, the Indian government agreed to provide the credit.

Communications minister Syed Abul Hossain said: "The Indian soft loan will be helpful to upgrade the country's existing under-developed infrastructure. The fund will definitely facilitate to set up the regional transport network covering the neighbouring states."

"The money will be mostly used to upgrade our railway network facilities, which will be helpful for reintroduction of transportation networks with the neighbouring countries," he told the FE

ERD secretary Mr Bhuiyan said "The fund will be spent on implementing development projects in road, railway, waterways and some other sectors. The Bangladesh government will undertake projects on a priority basis."

A senior government official requesting anonymity said the Indian government is mainly lending the credit to upgrade Bangladesh's road, rail and waterways so that it could use those transport facilities to carry goods to its northeastern states.

ERD officials said the proposed Indian soft loan might carry interest rate at 1.75 per cent and is repayable in 24 years.

Bangladesh likely to sign $1.0b loan deal with India this month

 

[CaPtAiN_pLaNeT]

something misquoted here. remittance figure is $11 bln this year.

Yes you are right... it talks about the total remittence during the time period of awamileague govenment from january, 09 to may 10, 10.

The Daily Jugantor - June 30, 2010

but i am just wondering whether bangladesh will be able to reach its set up target of $30 billion from remittence by the year 2015!!!

 

[CaPtAiN_pLaNeT]

China allows duty-free access from today

Wednesday, 30 June 2010 22:11

Business

China allows duty-free access from today
Shakahawat Hossain

China will provide duty-free entry to major Bangladeshi products into its market from today which is expected to open up an untold opportunity for the local exporters, said commerce ministry officials.

The Made in Bangladesh products would enjoy the facility as China has already listed Bangladesh and some 32 developing countries across the world for duty-free access from July 1 in keeping with its commitment to the World Trade Organisation.

‘It’s a big opportunity for the exporters and good news for the country’s exports,’ joint chief, Mostafa Abed Khan, of Bangladesh Tariff Commission told New Age on Wednesday.

BTC, the think tank on trade issues under the Ministry of Commerce, has already examined the Chinese offer which came up after the high profile visit by Prime Minister, Sheikh Hasina, to Beijing in March this year.

It is expected that the country’s major exportable items such as garments, frozen food, jute and leather would be included in the Chinese duty-free list of 4,721 items.

The offer is almost similar to the European Union trade facility under ‘Everything But Arms’ policy that helped Bangladeshi products to enjoy duty-free access to 27 EU nations.

The country’s apparel sector has become a twelve billion dollar industry in just a little over a decade because of the EU preferential facility.

Experts observed that the prospect for a market in China came when Dhaka has been desperately in the look out for new export destinations following lack of demand of its products in the traditional markets in the Western countries because of economic recession.

They emphasised on the competitiveness of the local manufacturers which would play as the key factor for the local products to get a foothold in the Chinese market to ease the yawning trade gap of $2.5 billion annually, vastly in favour of Beijing.

But the onus is on the businessmen and their competitiveness for tapping the opportunities in a new market, says Mostafa K Mujeri, director general of Bangladesh Institute of Development Studies—a government-backed economic think tank.

Another economist, Mustafizur Rahman, who is executive director of the Centre for Policy Dialogue—a private think tank—pointed out that businessmen should seriously concentrate on the competitiveness as they would be in the fray with other developing nations wanting to have a slice of the Chinese market.

China also offered the duty-free facility to Afghanistan, Nepal, Samoa and Vanuatu in the Asia-Pacific region while Ethiopia, Kenya, Liberia, Mali, Madagascar, the Comoros and the Democratic Republic of Congo, Burundi, Malawi, Mozambique, Benin, Togo, Uganda, Zambia from the Africa region.

Exporters were upbeat about utilising the duty-free access in China, the fastest growing economy that has already overtaken Japan for the second place.

Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Haque was hopeful that the local manufacturers would enjoy comparative advantages against their rivals as a producers of lower end products.

He pointed out that the existing transportation facility would pose a major barrier for the knitwear exporters of Bangladesh to convince the Chinese importers.

The country's major export items to China include raw jute, leather, shrimps, woven garments, camera parts, copper wire, plastic wastes and engineering products. But all these products were subjected to face tariff at different rates.

 

[CaPtAiN_pLaNeT]

Foreign firms keen to invest in power sector


Thursday, 01 July 2010 22:09

Foreign firms keen to invest in power sector

Foreign firms keen to invest in power sector
175 firms respond to govt call for $10b investment
Jasim Uddin Khan

The government has received responses from 75 foreign companies to its call for $10 billion investment in the country's power and energy sector, representatives of which are expected to participate in a post road show conference in Dhaka on Saturday. Most of the respondents are Asian.

The Ministry of Power, Energy and Mineral Resources organised three separate road shows in London, New York, and Singapore last year, to attract investment from global power and energy companies, and non-resident Bangladeshis.

Lanco India, Malaco Malaysia, Daewoo Heavy Industries (DHI) of South Korea, Genting Power of Malaysia, and Dongfeng Electric Corporation of China are some respondent power companies already registered with the government to participate in the conference.

GCM Resources plc, formerly known as Asia Energy; and British Petroleum Asia are also expected to participate. A total of 140 company representatives are expected to participate.

"Most of the companies already participated in the pre-qualification bidding process for investment in Bangladesh's power and energy projects. We have arranged the post road show conference for facilitating one to one dialogues between company representatives and government officials," Mizanur Rahman, director of system planning for Bangladesh Power Development Board, said.

Although the road shows attracted many reputed US and UK companies as well, a very few of them showed interest to participate in the conference.

Towfiq-e-Elahi Chowdhury, energy adviser to the prime minister, said Bangladesh kept its promises to maintain the scheduled deadlines for the various biddings so far, adding, "We saw enthusiasm among the participants during the road show, and I am hopeful that the investors will be happy to see our commitment and incentives for the thrust sector."

 

[eastwatch]

something misquoted here. remittance figure is $11 bln this year.

Newspapers are run by stupid people in BD. So, it is $10 billion for the first 11 months. I am a little disheartened. But, the correct figure is also too good. There was a time when BD's yearly total foreign exchange earnings were less than $1 billion. Now, it is about $27 billion including the remittances. Not bad for an upstart country like ours.

 

[fallstuff]

Remittance tops $15bln

Remittance tops $15bln | Bangladesh | bdnews24.com

Wed, Jun 30th, 2010 2:40 pm BdST

Dial 2000 from your GP mobile for latest news
Dhaka, June 30 (bdnews24.com) – Foreign remittance topped $15 billion in the outgoing fiscal breaking all previous records.

Prime minister Sheikh Hasina told the parliament on Wednesday during a question-answer session that Bangladesh had earned over Tk 1054 billion (about $15.26 billion) in remittance until May 10 this year.

New job markets have been opened up at a number of countries including Libya, Iraq, Italy and Papua New Guinea, according to Hasina.

She added her government was continuing its efforts to further explore the job market for Bangladeshi workers in Africa and Europe as well.

The prime minister said that over 640,000 workers had been sent abroad until May 10 during the current fiscal ending this month.

Hasina told the parliament that 14 journalists were killed and 384 cases were filed in connection with attacks and police harassment on journalists, during the tenure of the BNP-led four-party alliance government.

It is bewildering. When manpower export rate are keep going down, this number is really interesting. Indian remittance is about $30 billion a year. Indian members can help with more information?

 

[CaPtAiN_pLaNeT]

It is bewildering. When manpower export rate are keep going down, this number is really interesting. Indian remittance is about $30 billion a year. Indian members can help with more information?

Indian remittance at 2009 was 55 billion USD... as far as i heard, bangladesh government is planning to send more well educated and qualified man power to earn more money instead of construction worker, driver etc.

1 of the biggest priority is to send qualified nurse.... that will also include females in the man power exporting fleet.

N for other qualified professionals bangladesh government is planning to capture the market of canada, new zeland, eastern european countries like polland, rumania and ukraine.

Lets see what happen next... but my personal opinion is that this year remittance should be around 12-13 billion USD.

 

[CaPtAiN_pLaNeT]

Private expatriate bank soon

Saturday, 26 June 2010 21:43

Private expatriate bank soon

Private expatriate bank soon

A migrant worker adjusts his bag while leaving Shahjalal International Airport in Dhaka. Bangladesh Bank is now working on in setting up a private expatriate bank.Photo: STARA migrant worker adjusts his bag while leaving Shahjalal International Airport in Dhaka. Bangladesh Bank is now working on in setting up a private expatriate bank.Photo: STAR

Sajjadur Rahman

The central bank has started work on setting up an expatriate bank in the private sector to foster manpower exports and provide services to non-resident Bangladeshis.

The proposed bank will be established with full expatriate equity and management, officials said.

“We'll invite tenders to seek bids for the bank in a couple of months,” Bangladesh Bank Governor Dr Atiur Rahman told The Daily Star.

The bank will be a fully commercial scheduled bank, he said.

On establishment of the bank, Bangladesh will have two expatriate banks.

The government is now working to set up a specialised expatriate welfare bank under its management. A draft act has also been formulated in this regard. The bank will start operations in a few months, central bank officials said.

Bangladesh's dependence on remittance is increasing. It helps the country maintain a handsome foreign exchange reserve and a positive balance of payments account.

The country received $9.7 billion in remittance in fiscal 2008-09 and the figure reached nearly $9.2 billion during the first 10 months of the outgoing fiscal year. Bangladesh's annual remittance income was below $2 billion a decade ago.

Despite global recession, some 475,000 Bangladeshis went abroad for work in 2009. Manpower export to the main markets, such as Saudi Arabia, Malaysia and Kuwait, declined in 2009 than last year. However, the government and private sector entrepreneurs have been working to find new markets for manpower exports.

The government set a target to export 577,000 workers in fiscal 2010-11, expecting new markets, such as Libya, Lebanon, Sudan and Algeria, to employ more people from Bangladesh.

New Zealand and Canada are two other major markets with potential, according to government projection.

The government also formed a fund worth Tk 70 crore to develop skills of the people who intend to go abroad for work. New technical institutes will also be set up at different districts.

Senior BB officials said the two expatriate banks would provide exclusive services, including low-cost loans, for the overseas job seekers. New products, including pension schemes, would be developed for the expatriates, they said.

They said remittance would increase significantly after these two banks are established.

 

[CaPtAiN_pLaNeT]

Danish envoy upbeat on Bangladesh's potential in shipbuilding


Saturday, 12 June 2010 21:54

Danish envoy upbeat on Bangladesh's potential in shipbuilding

Danish envoy upbeat on Bangladesh's potential in shipbuilding
Star Business Report

Bangladesh can emerge as a quality shipbuilder, provided the nation cashes in on the growing demand in the post- recession time worldwide, Danish Ambassador in Dhaka Einar H Jensen has pointed out.

“The government has to play the key role by creating the frameworks and policies to address the shipbuilders' problems, including financial constraints, the envoy told a seminar in Dhaska yesterday.

Sheba Bangladesh Foundation organised the seminar on 'post-global economic recession: prospects of shipbuilding industry in Bangladesh' at the LGED auditorium.

The Danish envoy, who has been closely observing the sector over the three and half years, said the foreign buyers also believe Bangladesh has huge potential in shipbuilding industry.

In November last year, he said, 21 investors from Denmark visited Bangladesh and had meetings with the local entrepreneurs. “More than half of them are already in business in the sector, while others are coming,” said Jensen.

He observed that business is back now, as the demand for ships is rising again with the recession showing signs of recovery. Such demand marked a downtick on the onslaught of the financial meltdown worldwide, Jensen further said.

“The government should stand by the local businessmen willing to make investments in the shipbuilding industry by easing the bank finance for them. High lending rate and the cost of getting bank guarantee are the two major problems these businessmen are facing,” he said, adding: “If the government does so, it will help strengthen the confidence and interests of foreign buyers and investors.”

Industries Minister Dilip Barua said, “We'll provide all support to the shipbuilding sector, considered a new horizon of industrial development.”

Admitting that the high lending rate and absence of cash incentives still hinder the growth, the minister assured the entrepreneurs concerned of doing the needful to develop the sector.

Dr Abdur Rahim in his keynote paper pointed to the fact that more than 50 percent of the world's ships are over 20 years old and require replacement in the next 5-10 years. Referring to a study conducted by the Danish embassy, the shipbuilding sector expert said Bangladesh can build ships at a cost 15 percent lesser than other countries.

Rahim suggested the government help develop new shipyards, train a workforce for both the local and foreign markets and facilitate backward linkage industries for flourishing the industry.

Dr Abdullahel Bari, chairman of Ananda Shipyard and Slipways Limited, demanded that the government provide 20 percent incentives for the sector. “India gives 30 percent, Vietnam 40-45 percent and China 20 percent,” Bari cited the examples.

Shipbuilding businessmen Hafiz Rashed, Hafizur Rahman and Nurul Islam expressed their dismay as the sectoral problems, especially the issues relating to building shipyards, remain unresolved for long.

Agrani Bank Chairman Professor Khandaker Bazlul Haque chaired the seminar where former director general of shipping AKM Shafiqullah and chairman of Sheba Bangladesh Foundation Professor Shawkat Ara Hossain also spoke.

 

[CaPtAiN_pLaNeT]

2 satellite towns to be built up at Gazipur, Savar

Friday, 02 July 2010 21:33

The New Nation - Internet Edition

2 satellite towns to be built up at Gazipur, Savar
Staff Reporter

The government has taken an initiative to build up two satellite towns at Gazipur and Saver with a view to reducing the traffic jam and pressure of over population in Dhaka city.

After completion of Purbachal New Town Project, the capital development authority, is going to develop two more townships-one at Gazipur and the other at Savar, on the outskirts of the capital.

The proposed Gazipur Township project will be home to 12 lakh people while the Savar Township project will accommodate over eight lakh people.

Gazipur and Savar have been earmarked as part of the prime minister's desire to develop four satellite towns around the metropolitan area, Rajdhani Unnayan Kartripakkha (RAJUK) chairman, Engineer Md Nurul Huda told BSS.

RAJUK has kept the option in both the projects -Gazipur and Savar - to allocate a significant number of plots and apartments of different sizes for resolving the housing problem of low and middle-income group people, he said. According to the plans for the new townships, Nurul Huda said, modern civic amenities like schools, colleges, parks, playgrounds, hospitals, graveyards, police stations, IT-based industries and factories would be provided for making these as complete environment-friendly satellite towns. Ensuring planned urbanization in and around the capital, he said, the government has already approved the Detailed Area Plan (DAP) for Dhaka Metropolitan area.

In the 2001 census, RAJUK chief said, the current estimated population under 590 square miles area of DAP is over 10.24 million, which would increase to 18.43 million by 2015, up 4.29 per cent on an average.

On a query, he said, the approved existing DAP for (2009- 2015) would cover a few areas of Gazipur and Savar municipalities and RAJUK is committed to implementing the policy to stop unplanned urbanization for making the capital a good place to live in.

The government has already formed a committee to review the existing DAP, the RAJUK chairman said, adding that the committee could recommend by following Section six of the natural water- body protection act, 2000 to update the existing DAP, considering public interest.

Following the field survey, the proposed Gazipur new township project would be earmarked about 4,500 acres and it would be formed incorporating two areas-Bashan and Gachha-along with a portion of Tongi municipal area of the district.

The project proposal is now awaiting approval of the housing and public works' ministry and after that the land acquisition process will start.

In the Savar new township project, over 2,100 acres of land has been earmarked in Birulia, Ashulia and a portion of Savar municipal area under the upazila. A concept paper has already been submitted in this regard to the housing and public works' ministry for approval.

The other two townships, RAJUK officials said, would be developed at Keraniganj in the south of the city, while the other on the eastern side of the capital near the Balu river.

Infusing dynamism in the RAJUK, they said, the Asian Development Bank (ADB) which is now working with the LGED has already been come forward to provide support to the capital development authority for increasing its capacity.

Earlier, RAJUK developed 13 townships in and around the capital including Dhanmondi Residential Area, Gulshan Model Town, Banani Model Town, Baridhara Residential Area & Diplomatic Zone, Baridhara 'J' Block Residential Area, Uttara Model Town (1st, 2nd and 3rd phase), Nikunja-1 Residential Area and Nikunja-2.

Besides, development work in the Jhilmil residential project, at Keraniganj adjacent to Dhaka-Mawa Highway, is going on in full swing is scheduled to be completed by December this year.

RAJUK officials expressed the hope that they will offer application for plots and apartments at the end of this year or the beginning of the next year.

 

[CaPtAiN_pLaNeT]

Rising China wage may relocate factories to Bangladesh: Citi

Monday, 28 June 2010 21:44

Rising China wage may relocate factories to Bangladesh: Citi

Rising China wage may relocate factories to Bangladesh: Citi
Star Business Desk

Rising wage pressures in China could prompt a relocation of labour-intensive activities toward lower cost economies such as Bangladesh, Indonesia and Vietnam, says Citi, a leading global financial services company.

The company in its 'Asia Macro and Strategy Outlook' also forecasts Bangladesh growth, inflation and current account balance.

Bangladesh grew by 5.7 percent last fiscal year (2008-09), according to the Citi outlook, released on June 25. For the current fiscal year, the country's GDP (gross domestic product) growth has been forecast at 6.1 percent and for the next year 6.7 percent.

Inflation was around 7 percent last year, while the rate will be 6.5 percent this year and 6 percent next fiscal year, says Citi.

On Asia, the outlook says capacity utilisation is tightening, and credit and liquidity conditions will remain sufficiently accommodative to fund investments.

"Structurally, there is also room for investment shares to GDP in Asean to recover after plummeting post-Asian financial crisis."

Intra-Asia investments should also rise, with China expected to become a bigger source of capital to the region, as it attempts to tap into investment opportunities in infrastructure, production base and consumer markets around the region, Citi says.

"Most Asian countries retain the fiscal capacity to boost public investments."

Structural shifts in the growth model may have the potential to offset disinflationary effects of a cyclical moderation in growth. "In China for example, the forced increase in wages may be the beginning of structural cost normalisation that would alleviate price distortions in key factor markets," the outlook says.

In Singapore, tightened inflow of foreign workers to force productivity increases may exacerbate cyclical labour market tightness. "The implicit aim of policymakers may be to raise abnormally low wage shares of GDP (especially in Asean) that is a consequence in export-led, MNC-driven growth models, thereby raising consumption share of GDP."

China's wage inflation would enable other regional economies to tolerate wage increases.

The outlook says signs of a cyclical peak are gradually emerging, with production and leading indicators seeing a moderation across many countries in Asia except Singapore and India.

Inflation momentum has been moderating and contained for most countries in the region except India and Singapore, where demand-pull pressures are rising. Two risks include wage inflation and commodity price increases. "These are both cyclical as well as structural."

 

[CaPtAiN_pLaNeT]

Govt to set up 1350mw mega coal-fired power plant in Ctg

Friday, 02 July 2010 21:34

Govt to set up 1350mw mega coal-fired power plant in Ctg

Govt to set up 1350mw mega coal-fired power plant in Ctg
M Azizur Rahman

The government has decided to set up a mega coal-fired power plant worth over US$1.0 billion by independent power producer (IPP) to generate 1,350 megawatt (mw) of electricity in port city Chittagong, officials said Friday.

"We will build the coal-fired power plant under an IPP project to initiate electricity generation from the plant as soon as possible," Prime Minister's Adviser on energy issues Tawfiq-w-Elahi Chowdhury told the FE.

He said the coal-fired IPP project, which would be the first of its kind in the country, would be put on offer before the private sector.

Officials said the coal-fired power plant might initially be run by imported coal but later it would use local coal when coal extraction in local mines would begin.

The power ministry has moved for the mega power plant following repeated demands from the businessmen of the energy-starved port city.

Scores of industries in Chittagong could not be run after investment of billions only due to acute energy crisis.

The new plant would also help reduce the countrywide electricity crisis as overall electricity generation was now hovering around 4,000 mw against the demand for over 6,000 mw.

The planned coal-fired IPP power plant might be deliberated on during the day-long conference on power sector scheduled for today (Saturday) along with several new projects including those of Power Grid Company of Bangladesh (PGCB) and Eastern Refinery Ltd (ERL) for wooing investors.

The power ministry has organised the day-long conference styled, 'Investment in Power Sector of Bangladesh: Opportunities and Challenges' in a city hotel to entice investment in power sector.

Apart from the coal fired IPP power plant in Chittagong, the government is now working to build another 1,350 mw power plant in Khulna near the Mongla seaport under a joint venture between Power Development Board (PDB) and Indian state-owned National Thermal Power Corporation (NTPC).

The PDB and the NTPC have already signed a memorandum of understanding (MoU) for setting up the power plant.

Under the initial understanding Bangladesh and India would together invest 25 per cent of the total costs while the remaining 75 per cent would be met by loans from external sources.

At present the country has only one 250 mw capacity coal-fired power plant at Barapukuria, which is mostly run at half of its capacity due to technical glitches.

Currently over 87 per cent of the country's power plants are being operated using natural, gas, five per cent using coal, four per cent using furnace oil, three per cent using hydropower and one per cent using diesel.

But the country is diversifying its fuel sources 'consciously' to ensure the country's future energy security as gas reserve is depleting fast, said a senior official of the energy ministry.

The country is producing less gas than it needs and unless new gas fields are discovered, supplies are expected to start diminishing from 2011, said Petrobangla officials.

It forecasts that the country's gas reserves will run out by 2014-2015 at current consumption rates of 1980 million cubic feet per day (mmcfd).

Bangladesh has long been experiencing severe power outages resulting from years of under-investments, inadequate support from donor agencies and bureaucratic quagmire.

Frequent power outages along with low voltage are affecting industrial output, hampering day to day businesses and every day lives.