Bangladesh Economy: News & Updates

[M_Saint]

What the hell you are talking about... have you read the article.... the bidder put more money then their initial budget of 55 million. That is the reason ADB came to provide the remaining 45 million funding. For the 3rd project US is providing the funding. Do you think that ADB and US those who are providing the fund only for looting and without checking the feseability of the project???

If anything good is happening try to acknowledge it instead of saying everything bad. This sort of mentality that what ever the opponant of my supported party do is bad, hindering the developmant of bangladesh.

If anything good is happening try to acknowledge it instead of saying everything bad. This sort of mentality that what ever the opponant of my supported party do is bad, hindering the developmant of bangladesh

Dalal that were brought to power by expansionist Bharati-Malaun could do no for BD in anything, period. Try to get that in your brain first, before flooding thread with phony development news. Dalals of expansionists might differ from each-other cosmetically but history proves that they work for their master's interest by the expence of indigenous people, understand?

 

[TopCat]

What the hell you are talking about... have you read the article.... the bidder put more money then their initial budget of 55 million. That is the reason ADB came to provide the remaining 45 million funding. For the 3rd project US is providing the funding. Do you think that ADB and US those who are providing the fund only for looting and without checking the feseability of the project???

If anything good is happening try to acknowledge it instead of saying everything bad. This sort of mentality that what ever the opponant of my supported party do is bad, hindering the developmant of bangladesh.

Just ignore those troll brother.. few people who lost the face of their next 14 generation by collaborating with pakistani rape and killing are trying to malign everything the good people do in this country. Dont forget people still spit/pee on the grave of Mir Jafar after 300 years of his death...

 

[M_Saint]

Go educate yourself on Awami version of development aka deception
YouTube - Sajeeb Wazed Joy ( son of Sheikh Hasina ) took $ 5 million bribes from CHEVRON !

Just ignore the Malaun rapists brother. By conspiring thousand yrs, those dhotis succeeded in 71 to call us what actually they were all along. Their lesson from Valmiki on how to play with woman taught them to score century in rapes on Bengali women and Katulia's diciples demonstrated on how to shift that blame on W Pakistanis. Within hundred generations, those turtoises alike wouldn't come-out in daylight to show their faces whereas act like demonic warriors in virtual world. And finally don't forget to teach your sons, daughter the name of 71's Mir Jafar was Sheik Malaun Mujib, 2008's one was Malaun MUA, thanks.

 

[CaPtAiN_pLaNeT]

Just ignore the Malaun rapists brother. By conspiring thousand yrs, those dhotis succeeded in 71 to call us what actually they were all along. Their lesson from Valmiki on how to play with woman taught them to score century in rapes on Bengali women and Katulia's diciples demonstrated on how to shift that blame on W Pakistanis. Within hundred generations, those turtoises alike wouldn't come-out in daylight to show their faces whereas act like demonic warriors in virtual world. And finally don't forget to teach your sons, daughter the name of 71's Mir Jafar was Sheik Malaun Mujib, 2008's one was Malaun MUA, thanks.

What is your opinion on your beloved razakar jamat... n its follower nizami, muzahid and golam azam... those who killed innocent man, woman and children and raped uncountable number of woman of bangladesh... if you are atleast a bangladeshi you should not have supported all these bas***ed.

 

[CaPtAiN_pLaNeT]

Go educate yourself on Awami version of development aka deception
YouTube - Sajeeb Wazed Joy ( son of Sheikh Hasina ) took $ 5 million bribes from CHEVRON !

@idune sir what is your view on this.... hope to get a reply from you...

 

[CaPtAiN_pLaNeT]

Record $2.08b foreign aid received in ’10


FHM Humayan Kabir

The government has received record US$2.08 billion foreign aid in the last financial year (2009-2010), $236 million up from the previous financial year, due to highest ever payment by the Asian Development Bank, officials said Sunday.

A finance ministry official said the foreign assistance is also $22 million up from the last record disbursement of $2.06 billion in FY2007-08.

"Disbursement of highest $1.08 billion loans and grants by the ADB pushed the foreign aid flow up last year," a senior official of Economic Relations Division (ERD) told the FE.

Out of $1.08 billion assistance, the Manila-based lender bankrolled $744 million credit for recovering from the impact of the global economic meltdown on Bangladesh's economy and for minimising the budget deficit.

"The foreign assistance this year could touch $2.50 billion mark if Bangladesh's largest multilateral and bilateral donors-- World Bank and Japan respectively -- provide money as per their commitments," he said.

The Washington-based largest multilateral lender World Bank (WB) disbursed only $345 million aid during the 12 months in FY2010, lowest in its six years' history.

Similarly, largest bilateral donor Japan provided only $79 million fund during the period from July 2009 to June 2010, which was also the lowest in its last three years' history.

"The foreign assistance could be higher than the amount if the government agencies were able to implement the development projects in time," the ERD official said.

"We slashed the project aid target to $1.73 billion in the middle of last financial year from the preliminary $1.85 billion estimation due to poor project implementation status in the annual development programme (ADP)," he said.

In FY2010, the government implemented 91 per cent of Tk285 billion (US$4.10 billion) ADP where the project aid (foreign aid) spending rate was only 83 per cent, planning ministry data said.

The foreign aid disbursement depends on implementation of the donor-funded projects. The donors usually provided their committed funds after execution of the development projects.

The foreign donors and lenders have disbursed loans and grants for developing Bangladesh's infrastructure and upgrading social sectors to steer its economic growth and make it a middle-income country by 2020.

Out of the record $2.08 billion foreign aid, the multilateral and bilateral donors and lenders disbursed $1.596 billion loans and $486.85 million grants in FY2010.

http://www.thefinancialexpress-bd.com/more.php?news_id=107301&date=2010-07-26

 

[CaPtAiN_pLaNeT]

Just ignore the Malaun rapists brother. By conspiring thousand yrs, those dhotis succeeded in 71 to call us what actually they were all along. Their lesson from Valmiki on how to play with woman taught them to score century in rapes on Bengali women and Katulia's diciples demonstrated on how to shift that blame on W Pakistanis. Within hundred generations, those turtoises alike wouldn't come-out in daylight to show their faces whereas act like demonic warriors in virtual world. And finally don't forget to teach your sons, daughter the name of 71's Mir Jafar was Sheik Malaun Mujib, 2008's one was Malaun MUA, thanks.

MOD how come any one launch such an personal attack mentioning religion in this forum... I think it is clear violation of rules and law of this forum. Hope, appropriate action will be taken against such people... those who just troll and launch hate based on religion and nationality.

[[[[ I living 1000s of mile apart from bd, despite of all the work and study, come into this forum... to get some good news about bd... not to see trolling and hate speech based on religion, nationality and political ideology.

I personally also do not like many activity of india... but it does not mean that I will have to generalize all the indian national and will have to curse them based on their religion and nationality. Nither our religion islam does teach this things to us nor our bangladeshi culture and tradition.]]]

 

[idune]

MOD how come any one launch such an personal attack mentioning religion in this forum... I think it is clear violation of rules and law of this forum. Hope, appropriate action will be taken against such people... those who just troll and launch hate based on religion and nationality.

[[[[ I living 1000s of mile apart from bd, despite of all the work and study, come into this forum... to get some good news about bd... not to see trolling and hate speech based on religion, nationality and political ideology.

I personally also do not like many activity of india... but it does not mean that I will have to generalize all the indian national and will have to curse them based on their religion and nationality. Nither our religion islam does teach this things to us nor our bangladeshi culture and tradition.]]]

Who is interested in your personal story????? And your indo muslim bashing color already evident in your post and some post deleted by MOD. Refrain from acting victim.

If you like to talk for indo-awami cause show guts dont hide behind Bangladeshi identity.

 

[idune]

Stock market sees steepest single-day fall in 14 years
Orders limiting exposure of banks, brokerage houses trigger massive offloading

FE Report

Dhaka stocks suffered Sunday the highest single-day fall since the 1996 crash.

The unusual fall began as banks and brokerage houses started trimming their respective portfolios in line with the directives issued separately by the central bank and the securities regulator limiting their exposure to stock market.

The benchmark DSE General Index (DGEN) shed 204.75 points --- its highest single-day drop since November 6, 1996, when the index had lost 233 points --- to close at 6200, which is 3.19 per cent down from the previous day.

The bloodbath started from the morning and continued until close of the trading session as heavy selling pressure was witnessed in the banking, leasing, fuel and power, and engineering stocks.

Bangladesh Bank (BB) has sent show-cause notices to the seven banks for not to complying with its directive to bring their overexposure to the market within the permissible limit.

Early this month the BB asked banks not to have more than 10 per cent of their liabilities in the stock market and adjust overexposure by next month.

Last week, the Securities and Exchange Commission put cap on the single-borrower exposure of the merchant banks and the brokerage houses to bring about discipline in the stock market.
The exposure limit has been set at Tk 100 million in the case of merchant banks and Tk 50 million for brokerage houses. The decision on exposure limit came into effect from yesterday (Sunday).

The broader DSE All Shares Price Index (DSI) plummeted 173.55 points or 3.25 per cent to close at 5158.39, while DSE 20 comprising blue chips ended at 3630.37 with a steep fall of 133.18 points or 3.53 per cent.

"Central bank's and securities regulator's directives have pulled the market down," said Shakil Rizvi, president of the Dhaka Stock Exchange.

"There is no reason for panic", he added.

Share prices of more than 80 per cent securities declined but the volume was relatively impressive. Out of 244 issues traded, 51 gained, 191 declined and two remained unchanged.

All the sectors, except mutual funds that rose 2.26 per cent, closed in negative terrain as the selling across the board was seen.

"In my opinion, selling pressure came from forced liquidation of positions at the level of financial institutions, which were the subject of show cause notices by authorities for market over-exposure," said Hasan Imam, managing director of the RACE Asset Management Company.

"Generally, forced liquidation of significant size destabilizes the financial markets, orderly selling over an extended periods is preferred," he said.

"As fund manger, we are not taking any drastic sell action in our funds. Mutual fund managers have the responsibility to act as a stabilizing force during market downtrends. We will step in and support the market if needed and at the appropriate time," Imam said.

Even after tightening exposure limit, the daily turnover was relatively good as it stood at Tk 14.97 billion, down 14 per cent over the previous session.

The banking sector --the market's bell weather-- went into a steep dive with the banks trading in the red. The sector lost 5.0 per cent with the IFIC Bank falling the highest 8.69 per cent, followed by the Pubali Bank 6.95 per cent, the AB Bank 6.55 per cent and the Islami Bank 5.42 per cent.

The non-banking financial institution sector dropped 3.0 per cent, energy 2.82 per cent, cement 5.39 per cent and engineering 4.11 per cent.

The top turnover leaders were Titas Gas, AB Bank, LankBangla Finance, BSRM Steel, Beximco, RAK Ceramics, DESCO, United Airways and Summit Power.

The prominent gainers included Prime First ICB AMCL Mutual Fund, United Airways, Dacca Dyeing, Atlas Bangladesh, ICB AMCL Second NRB, Gemini Sea Food, ICB Employee First and ICB Third NRB.

Stock market sees steepest single-day fall in 14 years

 

[idune]

^^^^^^
How did Sami and indo-awami team failed to post this important economic news - once in 14 years event. More importantly when Awami policy (through party apoointed BB govornor and SEC) orchestrated this fall of index. Same way Awami league regime let stock exchange collapse in 1996 by letting indian marwaris looted money from Bangladesh stock exchange with help of Awami league. This goes to show Sami and his ghoti buddies are here to just feed polish up economic condition hiding and deceiving real economic situation in Bangladesh.

NOTE to READERS: most of these post by sami are here to give one sided version of Bangladesh economy to prop up indo awami activity.
Financial express BD, newagebd nation ittefaq are newspapers perhaps give better picture of Bangladesh economic condition.

 

[TopCat]

Stocks in tailspin

Dhaka stocks yesterday suffered the biggest drop in a decade, mainly because of the regulators' market-cooling tightening of credit.

The regulator's move to cap single-client borrowing, and the central bank's show-cause notice to seven banks -- for not adjusting their overexposure to the capital markets -- prompted a panic sale in the secondary market, stockbrokers said.

The benchmark index of Dhaka Stock Exchange -- DSE General Index -- nosedived 204 points, or 3.19 percent, to 6,200.

The benchmark index of Chittagong Stock Exchange -- CSE Selective Categories Index -- also plummeted by 366.47 points, or 2.98 percent, to 11,903.84.

The DSE's was the steepest drop since the 1996 crash, when the market bubbled and then burst. On November 5 of 1996, the index rose to 3,649 points from 957 points on July 2 of 1996.

But the market started plummeting from November 6 of the same year with the index shaving 233 points on the day. The index went down by some 600 points to 3,065 points on November 30, and the decline continued to May of 1999.

The stockbrokers blamed the regulators' intervention in controlling the credit flow into the market.

"Securities regulator's and the central bank's move pulled the market down," said Md Shakil Rizvi, managing director of Shakil Rizvi Stock Ltd, a brokerage house.

However, he said, the market should not panic over the latest measures. "The banks' exposure to the stockmarket will be less than 10 percent of their total market capitalisation," explained Rizvi, also president of the DSE.

He also said they may sit with the Securities and Exchange Commission (SEC) to discuss its latest regulatory measures, which are eroding the investors' confidence.

The SEC stepped in at least four times in the last two months to calm the market through controlling the credit flow.

The latest measure -- capping credit exposure to a single-client borrower at Tk 10 crore for merchant banks and Tk 5 crore for the stockbrokers -- came into effect yesterday.

Prior to that, the SEC also tightened the credit facilities by reducing the loan margin ratio to 1:1 from 1:1.5, and slashing the price-earnings (PE) ratio for marginable securities to 40PE from 50PE.

Last week, Bangladesh Bank (BB) served notice on seven banks for not complying with its directive on adjusting their overexposure to the stockmarket. Earlier, BB also asked all commercial banks not to invest more than 10 percent of their liabilities in the stockmarket, and to adjust their exposure by August.

Yesterday's shock, which reigned over the entire trading session, also prompted the SEC to increase single-client borrowing to Tk 10 crore from Tk 5 crore for the stockbrokers.

The SEC also extended the deadline to September 30 from August 31 this year for adjusting the margin loan for those clients whose credit exposure is over Tk 10 crore.

Most investors came to know about the latest move after the trading session.

Panicked by the cooling measures of the SEC, many rushed to sell shares, even at huge losses.

"I incurred Tk 6 crore losses today [yesterday], as I had to start selling to adjust my portfolio in line with the SEC directive on single-client exposure," said Md Sabuj Mia, an investor.

"Now I heard of an increase in single-client exposure and expansion in the deadline for adjustment. Who will take the responsibility for my losses?"

The premier bourse's four major sectors -- banking, non-bank financial institutions, fuel and power, and engineering -- contributed heavily to the dip in the market.

All sectors, except mutual funds, closed lower, as selling pressure dominated the board
Stocks in tailspin

 

[TopCat]

^^^^^^^^^^^^

Very good and timely move by Central Bank to cool the stock market down.
Also prudent decission for not allowing financial institutions over exposure to stock market which might put the ordinary depositor at risk.

 

[TopCat]

Pilot project on cards to tap Jamalganj coal

The government is going to undertake a pilot project to produce coal from Jamalganj coalfield using Underground Coal Gasification (UCG) and Coal Bed Methane (CBM) technologies, the prime minister's energy adviser said yesterday.

The adviser, Dr Tawfiq-e-Elahi Chowdhury, told this to journalists after attending a seminar on "Prospect of coal gasification" at Petrobangla in the capital.

Jamalganj is the deepest and largest coalfield with deposits at a depth of 500 to 1,000 metres, having a reserve of 1 billion tonnes of coal.

The presence of aquifer is a challenge to both underground and open pit mining in Bangladesh.

“We will discuss the pilot project with the experts and then take it up," Tawfiq said, adding that the government is looking for sources of alternative energy rather than gas.

The adviser also said the government would publish the coal policy within this year.

To ensure adequate gas supply to the power plants, Tawfiq urged the industrialists to shut their factories during peak hours in the month of Ramadan.

He said if the gas supply remains sound, load shedding would be in a tolerable level during the holy month.

Tawfiq said the government is thinking of load management of gas during the peak hours.

Prof Badrul Imam of Dhaka University Geology Department explained the technologies presenting a keynote paper at the seminar.

He said CBM, which remains in absorbed state, is produced by lowering water pressure and by extracting water from the coal.

With UCG technology, oxygen and water are injected into coal. The coal is burnt and it produces hydrogen, methane, carbon monoxide and carbon dioxide gases, said Imam.

Of the gases, only methane is extracted from the coal and used after purification, he added.

In his paper, Imam emphasised the need for equal attention to both conventional and unconventional techniques of coal exploitation.

Prof Imam said UCG is a fast emerging technology involving conversion of coal into gas and lifting the gas for use.

In Bangladesh, UCG technology can be used in Jamalganj coalfield, Imam said.

Secretary to the Energy and Mineral Resources Division Mohammad Mejbahuddin was also present at the seminar, which was chaired by Petrobangla Chairman Prof Md Hussain Mansur
Pilot project on cards to tap Jamalganj coal

 

[TopCat]

Dhaka stocks bounce back

Dhaka stocks bounced back Monday, regaining the major part of the ground that was lost on the previous day.

The decision of the Securities and Exchange Commission (SEC) to raise the exposure limit of brokerage houses to individual investors to Tk.100 million helped the market to return to a positive territory, market insiders said.

The benchmark DSE General Index (DGEN) shot up by 125.56 points or 2.02 per cent to end at 6325.76, recovering from previous session when it plunged 3.19 per cent or 204.75 points -- its highest single-day drop since November 6, 1996.

But trading activity was rather lacklustre as the market witnessed lesser number of buy orders from retailers who, apparently, were taking time to recover from the last Sunday's shock, said stockbrokers. Institutional investors dominated the Monday's trading.

The broader DSE All Shares Price Index (DSI) gained 1.95 per cent or 100.89 points to 5259.28, while DSE 20 comprising blue chips ended at 3704.58 with a rise of 74.21 points or 2.04 per cent.

Sunday's drop prompted the Securities and Exchange Commission to raise single-client borrowing to Tk 100 million from Tk 50 million from the stockbrokers.

It also extended the deadline to September 30 from August 31 for adjusting the margin loan for those clients whose credit exposure is over Tk 100 million.

"The decision has helped the market make a turnaround," said Abdul Awal, managing director of the Multi Securities and Services Ltd.

Turnover stood at Tk 12.84 billion, down 11.3 per cent over the previous session. Out of 252 issues traded, 198 gained, 46 lost and eight remained unchanged.

All the major sectors, apart from mutual funds, gained ground unlike previous session when all the sectors except mutual funds fell due to the securities regulator's putting cap on single-client borrowing and the central bank's show-cause notice to seven banks for not adjusting their overexposure to the capital markets.

Experts criticised the regulator's such intermittent directives that were hurting the investors, particularly small ones. "The regulator should look for long-term solution to cool off the overheated market," said an expert.

Banking issues--the market bell weather-- was up by 1.83 per cent with Southeast Bank rose highest 3.91 per cent, followed by Exim Bank 3.27 per cent and Islami Bank 2.44 per cent.

Grameenphone, the country's top mobile operator and most weighted shares in DSE, gained 2.28 per cent. Non-banking financial institutions (NBFIs) gained 2.55 per cent

Lanka Bangla Finance was the top turnover leader with shares worth Tk 688.40 million traded.

Titas Gas came second after remaining top position over the two weeks. Its shares worth Tk 594.39 changed hands.

The other turnover leaders were PLFSL, Aftab Automobiles, Summit Alliance Port (SAPORT), Beximco Ltd, AB Bank, Summit Power and RAK Ceramics.

The prominent gainers included Marico, Confidence Cement, SAPORT, United Airways, Fine Foods, First BSRS and Bay Leasing.

Savar Refractories, Prime First ICB AMCL Mutual Fund, Monno Staffler, Apex Spinning, Dhaka Fisheries and ICB AMCL Second NRB were among the major losers.
Dhaka stocks bounce back

 

[TopCat]

Bangladesh ratifies two key APTA deals

Bangladesh on Sunday formally joined the big Asian economies to promote investment and faster trade facilitation by ratifying two key agreements, a top official in the Ministry of Foreign Affairs (MoFA) said.

Foreign Minister Dipu Moni ratified the agreements. The agreements are the Framework Agreement on Promotion, Protection and Liberalisation of Investment and the Framework Agreement on Trade Facilitation, the official added.

The commerce ministers of Bangladesh, China, South Korea, India, Sri Lanka and Laos, the six member countries of Asia Pacific Trade Agreement (APTA) signed the two framework agreements in December 2009 in South Korean capital Seoul.

The MoFA informed the APTA Secretariat in Bangkok on Sunday about the ratification of two agreements concerned by the government, it is learned.

The APTA was signed in November 2005 and it came into effect from July 01, 2006.

"We have formally joined the big Asian economies through the ratification two agreements on investment and trade facilitation to boost regional trade and investment," a top MoFA official said.

"It will also help us enhance our capacity in trade, modernize customs department and contain cross-border smuggling," the official added.

"The agreements will be a major tool to attract foreign direct investment from major Asian countries, particularly from China and Korea as those would provide protection to investment to the investors from APTA member countries."

Presently, trade of more than 4,000 items originating from APTA member countries including those from Bangladesh enjoys tariff concessions under the deal, officials in the Ministry of Commerce (MoC) said.

According to the Framework Agreement on Promotion, Protection and Liberalisation of Investment, member countries will enact new laws to give full security and protection to investments to be made in the countries that are its members.

The contracting countries under the framework agreement will not practise any unreasonable or discriminatory measures, impairing the operations, management, maintenance, disposition or liquidation of investment to be made by member countries, said the agreement.

The member countries of the agreement will protect and uphold the principles of Intellectual Property Rights, in line with the spirit of the World Trade Organisation (WTO), the agreement said further.

No restriction could be imposed on transfer of capital, profit to be derived from such investment, royalties and other income, said the agreement referring to basic criteria of foreign investment.

All sorts of movable and immovable products, share, debenture and stock will be considered as investment, the agreement said.

The member countries of the Investment Pact will promote free flow of investments and encourage transfer of technology among participating countries, according to the regional investment agreement.

"The least developed countries (LDCs) will be provided flexibility, in terms of observing and maintaining the main features of the agreement," a trade diplomat said.

As far as Framework Agreements on Trade Facilitation is concerned, the six countries would also enhance cooperation in 10 major areas including market access and speedy release of goods from the ports.

In addition, it would cover other key areas such as harmonisation of HS Codes, handling foreign passengers in airports, and exchange of best practices to contain customs corruption, sources said.

Meanwhile, the MoC on Monday started the process to form a Working Group comprising representatives from different ministries to finalise the schedule of commitments under the two deals and determine the negotiation strategies with partner countries, sources said.

The first round of negotiation under the two deals will begin from September, a trade diplomat said.
Bangladesh ratifies two key APTA deals