Bangladesh Economy: News & Updates

[eastwatch]

www.theindependent-bd.com

ADB GIVES $100 million LOAN
Wednesday, 01 September 2010
Author / Source : STAFF REPORTER

The Asian Development Bank (ADB) is extending a $100-million equivalent loan for a cross-border electricity initiative between India and Bangladesh, which will provide impetus to increased power trading in South Asia, said an ADB statement issued yesterday. ADB's Board of Directors yesterday approved the loan for the Bangladesh-India Electrical Grid Interconnection Project.

The fund will be used to build a 40-km 400-kv transmission line, along with a high voltage direct current substation and connecting loop, linking the western electrical grid of Bangladesh with India's eastern grid. Around 500 mw power is expected to flow into Bangladesh by 2012 as a result of the project, with the possibility of more in the future.

Bangladesh's fast growing economy has seen power demand sharply outstripping supply, resulting in frequent power cuts, voltage fluctuations and losses in economic output, estimated at nearly $1 billion a year. While the economy has grown by an average of 6 per cent a year since 2005, less than half the population of 156 million has access to power.

"In this backdrop, the project promises to signal a new era in energy cooperation in South Asia and is likely to herald further power trading agreements, resulting in the more effective use of existing energy resources in the region," said Director General of ADB's South Asia Department Dr Sultan Hafeez Rahman.

"Connecting the two grids will demonstrate substantial economic benefits that come from enhanced regional cooperation and help to address energy gaps across the region," Dr Rahman said.

It would also allow Bangladesh to reduce its current reliance on stop-gap power measures, such as rental generation facilities, and help to generate jobs and new business opportunities by providing a more reliable supply of power to industries, the statement said.

Staff from the Power Grid Company of Bangladesh will be trained to manage the new facilities, while officials of the state-owned Bangladesh Power Development Board will learn cross-border power trading skills.

ADB's assistance from its concessional Asian Development Fund makes up 63 per cent of the total investment cost of $156.8 illion. The loan has a 32-year term, including a grace period of eight years, with interest charged at 1.0 per cent per annum during the grace period and 1.5 per cent per year for the rest of the term.

The balance of the investment of $58.6 million will be funded by the Government of Bangladesh, while interconnection facilities on the Indian side will be financed, developed and operated by India.

The Power Grid Company of Bangladesh is the executing agency for the project, which is due for completion in December 2012.

 

[idune]

Awami regime forcing Bangladeshis carry $1 billion debt for indian benefit. Now again taking $100 million in name of indian power import from ABD. Indo - Awami looting of Bangladesh has reached a new height.

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ADB GIVES $100 million LOAN
Wednesday, 01 September 2010
Author / Source : STAFF REPORTER

The Asian Development Bank (ADB) is extending a $100-million equivalent loan for a cross-border electricity initiative between India and Bangladesh, which will provide impetus to increased power trading in South Asia, said an ADB statement issued yesterday. ADB's Board of Directors yesterday approved the loan for the Bangladesh-India Electrical Grid Interconnection Project.

Result: Bangladeshis carry more burden of increasing forign debt only so Awami stooge regime can serve indian interest and looting.

Country’s per capita debt rising fast

Shakhawat Hossain

Unfavourable and fluctuating currency exchange rates and a rapid rise in borrowings from abroad increased the country’s per capita debt liabilities by about $2.3 a year, on an average, over the last six years, officials said on Saturday.

At the end of 2008-09, Bangladesh’s per capita debt obligation stood at $ 151.21, up from $136.92 in 2003-2004.

The country’s per capita debt obligation rose to $139.91 in fiscal 2005-2006.

Per capita debt burden has been on the rise in 2008-9 and onward requiring the government to repay more to service debt liability, said economist.

 

[TopCat]

A new ainternational airport is a dream project which will remain in dreams for the coming years, because the price tag at $8 billion is a very big money. However, it is necessary that the present ZIA be extended with another new and longer runway. But, the situation around this airport does not allow much such works.

There have been encroachments to the airport land. There are many high-rise bldgs. surrounding it. A new airport somewhere in Tangail must be connected to the City center with modern facilities like monorail and expressway. Without these, the proposed airport will be as useless as the existing one.

I am excited about the new airport as it will bring 8 billion dollar of FDI and will create huge economic activities during the construction phase, create employment and will uplift the image of BD.

 

[eastwatch]

Eskayef gets Australian certification

Tuesday, August 31, 2010
ESKAYEF GETS AUSTRALIAN CERTIFICATION

Star Business ReportThe Therapeutic Goods Administration (TGA) of Australia accredited Eskayef Bangladesh Ltd, a leading local pharmaceutical, for its new world-class facility at Tongi.

Eskayef is the only company in Bangladesh that achieved both the UK MHRA and TGA, Australia.

“It is one of the toughest registration processes for pharmaceuticals in the world, which allows products to be marketed and distributed in Australia. It also opens up an opportunity for us to enter the New Zealand market,” said AM Faruque, managing director of the company.

“This is not only another milestone for the company but also an opportunity to export our products to developed countries. Now we will be able to contribute more to our country's economy by earning foreign currencies in the coming days,” he said.

Eskayef signed a technology transfer agreement with Novo Nordisk last year. It is set to manufacture insulin soon.

“Being the successor of Smith Kline and French, USA, we have been maintaining the standard operating procedures of a multinational company from inception. And the TGA accreditation proved that we are producing high-quality pharmaceutical products of European standards,” added Faruque.

Eskayef has started groundwork to win the US FDA certification, he said.

Eskayef, which has been growing at 30 percent a year, is one of the top four fastest growing companies in Bangladesh.

The annual turnover of the company stood at Tk 400 crore in 2009, and the company exports products to around 20 countries.

"We aim to become a global player and hold our country's flag up high in the coming days,” said Faruque.

 

[eastwatch]

Myanmar set to build hydropower plants targeting B'desh

MYAMMAR SET TO BUILD HYDROPOWER PLANTS TARGETING B'DESH
M Azizur Rahman

Myanmar has agreed to build two hydropower plants aimed at exporting around 575 megawatts (mw) of electricity to energy-starved Bangladesh, top officials said Tuesday.

A high-powered Bangladesh delegation received Myanmar's consent over cross-border electricity trade during its recent visit to the country, said a senior power ministry official.

He said a Myanmar delegation would visit Dhaka shortly to sign a memorandum of understanding (MoU) on the electricity trade between the two neighbouring countries.

Before signing the final deal, Myanmar has sought power purchase guarantee from Bangladesh, said the official, also a member of the delegation that visited Myanmar last week.

The delegation included top officials from the power ministry and Power Development Board (PDB).

The power plants having the electricity generation capacity of 500mw and 75mw respectively have been planned to be installed at Michuang and Lemro areas under Rakhine state in Myanmar, which are close to Bangladesh's Cox's Bazar.

Shwe Taung Development Company, a Myanmar company, has already tied up with a Chinese firm to build these power plants targeting to export the output to Bangladesh.

It has already got lease of land in the Rakhine state to set up the power plants.

Officials said after signing power transmission deal with the neighbouring India, Bangladesh has approached Myanmar to import electricity under similar arrangements.

Bangladesh never dealt in electricity with overseas countries before.

The country's unprecedented electricity crisis has pushed the government to adopt multi-pronged strategy ranging from diversifying of fuel sources to import of electricity to ease the mounting electricity demand.

Bangladesh has already inked a 35-year deal with India to initiate importing around 250mw of electricity from India by 2012 under cross-border electricity trade.

Electricity import from India would pick up to 500mw after 2012. India would also take electricity from Bangladesh, if necessary, under the deal.

Bangladesh is now reeling under an acute electricity and gas crisis with the electricity generation hovering around 4200mw against the demand for over 6000mw and gas output at around 1980 million cubic feet per day (mmcfd) against the demand for over 2300 mmcfd.

It has closed operation of four major gas guzzling fertiliser factories making room for generating electricity from gas-based power plants as more than 80 per cent of the country's power plants are based on gas.

Compressed Natural Gas (CNG) filling stations have been put to halt for six hours daily for the first time in the country to ensure smooth gas supplies to power plants.

The power ministry has distributed 5.5 million compact fluorescent lights (CFLs) free of cost across the country in June this year to reduce electricity consumption.

Businessmen, especially the shop and mall owners, have been asked to maintain the maximum austerity in electricity consumption with restriction on air-conditioner use.

Holiday staggering in industries is still continuing with halt to new connections both for natural gas and electricity.

The country's hectic economic activities have sky-rocketed energy demands over the past two years.

The government has targeted to produce additional 10,000mw electricity by 2014.

 

[eastwatch]

Wednesday, September 1, 2010
RMG makers get $57.5m export orders from US show
Unb, Dhaka

Bangladeshi readymade garment makers got export orders worth $57.5 million from a Las Vegas show in the US held recently.

Under the auspices of Export Promotion Bureau, eight garment manufactures participated in the four-day 'Men's Apparel Guild in California' (MAGIC) Show from August 16, said a statement.

MAGIC is the largest trade show in the North America that organises two shows annually -- one in February and the other in August.

The consulate general of Bangladesh in Los Angeles provided help in coordination with the EPB, MAGIC authorities and exhibitors.

Participants said Bangladeshi exhibitors got export orders of around $57.5 million.

A delegation from Bangladesh, led by Lutful Hai, chairman of the parliamentary standing committee on the commerce ministry, attended the show, inspected the Bangladesh stalls and exchanged views with the MAGIC authorities.

 

[CaPtAiN_pLaNeT]

Investment shows strong rebound

Wednesday, 01 September 2010 00:47

Investment shows strong rebound

Investment shows strong rebound
Rejaul Karim Byron

Investment in the country is on the rebound, according to various bank credit information. Bankers said the rise was mainly because of an expansion of the existing factories, increased SME loans and rental power.

Bankers said existing industries are taking out loans to expand operations and install generators to tackle the power crunch because the government suspended giving new gas and power connections.

According to Bangladesh Bank, capital machinery imports increased by only four percent in the last fiscal year, while the letters of credit (L/C) opened to import machinery went up by about 54 percent.

Even though the import of industrial raw materials decreased but the number of L/C opened increased by 18 percent.

This is a sign that investment and industrial production will rise this fiscal year.

Looking at an industry-wise breakdown, the L/C opened for capital machinery in jute increased by 222 percent, leather by 902 percent, textiles by 42 percent, garments by 31 percent, pharmaceuticals by 129 percent and plastic by 131 percent.

Last fiscal year, industrial term loan disbursement rose by 30 percent, which fell in the previous fiscal year.

Total industrial term loan disbursement was Tk 25,875 crore in the last fiscal year, which was Tk 19,972 crore the year before.

A stagnant situation prevailed in the market for the last two to three years because of global recession on one hand, and political uncertainty on the other.

Recent indicators show that the situation is picking up in the industrial sector, but bankers say if the government cannot quickly improve the gas and power scenario, it will be difficult to hold on to the rising trend.

Krishi Bank Chairman Khondker Ibrahim Khaled told The Daily Star that the economy is taking off but if the electricity and gas problems cannot be solved, sustaining development will be difficult.

He said the finance minister has allowed duty-free import of captive power generators, resulting in an increase in its imports, which the banks are financing.

Khaled also said the banks' investment in rental power is also increasing.

Janata Bank Managing Director (MD) SM Aminur Rahman said the bank alone invested about Tk 170 crore in four rental power stations. He said the increase in loans was mainly to fund modernisation and expansion of the existing industries.

According to Bangladesh Bank statistics, 80 percent of the total outstanding loans till March are SME loans. In March, SME loans increased by about 17 percent compared to the same period in the last fiscal year.

The Janata MD also said investment would have gone up by four to five times if there was no gas and power crisis.

 

[CaPtAiN_pLaNeT]

61.854m using mobile network: BTRC

Wednesday, 01 September 2010 00:46

61.854m using mobile network: BTRC

61.854m using mobile network: BTRC
MD AKRAM HOSSAIN

About 38 per cent population of Bangladesh are using mobile network, according to an official data.

Bangladesh Telecommunication Regulatory Commission (BTRC) statistics showed in July that 61.854 million Bangladeshis are under six mobile phone operator's network.

According to BTRC, the total number of the country's cell phone subscribers has reached at 61.845 million at the end of July 2010 and added 13.875 million new users, about 28.92 per cent increase, from the same period of the previous year.

The statistics showed that country's six mobile phone operators provided 13.875 million new connections to the Bangladeshis from July 09 to July 10 whereas 9.415 million connections were provided during the first seven months of this year. BTRC official data showed, Grameenphone is holding top position by reaching at 27.276 million subscribers and highly connected 6.126 million people among other mobile phone operators from July 09 to July 10.

Reaching at total 16.804 million Banglalink is in the second position, added 5.534 million new subscribers, about 49 per cent increase from the previous year. Robi, formerly known as Aktel, is holding 11.326 million subscribers and it newly brought total 1.426 million people under its network services. Besides, Warid telecom was able to connect 0.686 million people from July 09 to July 10 and providing its services to 3.296 million people right now.

Meanwhile, Citycell is the only provider of CDMA service across the country and the first mobile phone operator which has connected only 1.147 million subscribers till July 2010. But Teletalk, a government owned organisation, is in the last position among the existing operators as it holds only 1.147 million subscribers, statistics showed.

 

[CaPtAiN_pLaNeT]

Indian brands eye shirt imports from Bangladesh

Wednesday, 01 September 2010 21:31

Business

Indian brands eye shirt imports from Bangladesh

A file photo shows garment workers are busy in a factory in Dhaka. Some Indian brands are eying import of shirts from Bangladesh as local suppliers can offer competitive prices and quality. — New Age photoA file photo shows garment workers are busy in a factory in Dhaka. Some Indian brands are eying import of shirts from Bangladesh as local suppliers can offer competitive prices and quality. — New Age photo

Kazi Azizul Islam

Some Indian brands are eying import of shirts from Bangladesh as local suppliers can offer competitive prices and quality.

Sources at the Bangladesh Garment Manufacturers and Exporters’ Association said Rs 1,500-crore NSL Textile, which is launching menswear brand Constello, had started talks with several garment manufacturers in Bangladesh.

‘Several Indian brands, including NSL, are exploring tie-ups with garment-makers in Bangladesh by brining fabrics from India,’ a BGMEA official told New Age.

Former BGMEA president Anwar Ul Alam Chowdhury said for years Indian brands had been interested in buying formal shirts and trousers from Bangladesh but some import hassles discouraged them.

Parvez said as Bangladeshi export industry enjoys duty-free imports of fabrics, there is attraction for Indian brands for importing Bangladeshi shirts made of imported blended and non-cotton fabrics, where Indian Industry has less strength.

‘India is a huge market. Moreover, brands there are interested about Bangladeshi garments. If the government works with Indian authorities to remove para-tariff barriers including unnecessary delays in clearing shipments, Bangladesh’s garment exports to India will boost,’ said Parvez.

Latest report of the Export Promotion Bureau, meantime, shows that Bangladesh garment exports to India has started increasing in recent times.

Industry sources told New Age that exports of certain quantity of duty-free garments are gaining markets in Indian. Indian importers are procuring shirts and blouses using duty-free quota.

In the fiscal year 2009-10, ended in June, garments export to India amounted to $13 million with an 18 per cent growth over the year. Two years back, in 2007-08 fiscal year, garment exports to India was less than $5 million.

‘Still Bangladesh’s garment export to India is very tiny if compared to the $12.5 billion worth of annual garment shipments that mainly destined to US and EU markets. But India’s potential is huge,’ said Parvez.

Indian domestic apparel market is worth $35 billion with $2-billion market for shirts.

Bangladeshi shirts makers can take a significant pie there as they have decades of experiences in catering western brands like Wal-Mart, H&M and JC Penney.

 

[CaPtAiN_pLaNeT]

Major change in forex rule to boost ICT sector

Thursday, 02 September 2010 21:18

The New Nation - Internet Edition

Major change in forex rule to boost ICT sector
BSS, Dhaka

Bangladesh Bank (BB) has brought a major change to the foreign exchange regulation to give a further boost to the country's growing ICT sector.

The change allows ICT firms and software developers remit US $10,000 per year for their business purpose without prior permission from the central bank.

A BB circular issued on Thursday said the ICT and software firms would remit the stipulated amount through authorized dealer (AD) for visiting abroad, participating in export fairs and seminars, establishing and maintaining offices abroad and importing raw materials, machinery and spares.

Currently, there is no such facility for the ICT and software firms.

BB Governor Dr Atiur Rahman told BSS that the change was brought in line with the government's vision for Digital Bangladesh.

He said apparently this is a small step, but it is significant for the development of the ICT sector.

Shameem Ahsan, Chairman of the Standing Committee on Export Facilitation of the Bangladesh Association of Software and Information Services (BASIS), termed the change as a very positive approach to the development of the ICT sector.

He said the ICT firms would now be able to expand their businesses beyond border and could strengthen their capacity without going through hassles of earlier tight regulation.

Ahsan said the change also create a bigger scope for expanding e-commerce, which would voluminously increase net-based trading of Bangladeshi goods.

He explained that under the relaxed foreign exchange regulation, ICT firms could easily remit enough green bucks for their business expansion abroad, which would eventually increase transaction of local goods and products through internet.

According to the circular, ICT and software firms with the recommendation of BASIS will get an International Card (IC) from an AD initially loaded with US $1,000. The card may be refilled for another US $1,000 each time until the quota is fulfilled.

 

[CaPtAiN_pLaNeT]

Sixth Plan eyes Bangladesh a middle-income country by 2021

Thursday, 02 September 2010 21:19

Sixth Plan eyes Bangladesh a middle-income country by 2021

Sixth Plan eyes Bangladesh a middle-income country by 2021
JAGARAN CHAKMA

The sixth five year plan is going to set a total of 16 core targets for economic growth, employment, poverty reduction, human resources development, gender balance and environmental protection. If the targets are achieved, the socio- economic environment of the country will transform it from a low-income economy to the first stages of middle- income country.

Along with higher per capita income, the Vision 2021 projects a development scenario, where citizens will have a higher standard of living, better education, having social justice with more equitable socio-economic environment and the sustainability of development will be ensured through better protection from climate change and natural disasters, the draft said. Explaining the strategy of the plan, it said that an essential pre-requisite for rapid reduction of poverty was to attain a high economic growth, ensuring sustainable productive employment and incomes for a large number of people in Bangladesh.

The growth-employment-poverty reduction linkage will be ensured by focusing on labour intensive urban and rural manufacturing production, based on domestic and export markets and organised services, the draft added.

The productivity will be improved through adaptation of new technology based on strategic partnership with foreign investment and implantation of better Information and Communication Technology, the draft plan visualises.

The access of the poor to essential services like health, education, nutrition water supply and sanitation will be substantially expanded along with effort to increase access to key production inputs like irrigated water, fertilizer, electricity, rural roads and institutional finance.

The sixth plan will support equal opportunities for women in all section of the society with an objective of integrating them better into the social and economic sphere.

The governance improvement strategy will focus on ensuring the equality of opportunity, personal freedom and dignity, ensuring the role of law, improving delivery of basic services, capacity building in key public entities, and adoption of electronic governance.

To achieve 8 per cent growth by 2015 the government will emphasise on manufacturing and organised services. Increasing the growth rate to 8 per cent by the end of plan period will require the investment rate to increase from 24 per cent of GDP of 32 per cent.

It said that much of the higher investment would be deployed to reduce the infrastructure constraint and human development.

It will promote diversification in agriculture by emphasising incentives, research and extension, rural infrastructure and rural finance and it will focus on promoting rural and urban manufacturing production based on domestic and export markets.

The plan will focus on removing the constraints through massive investment in power and transports through better efficiency and demand management and through energy trade with neighbours.

To achieve the objective of a rapid increase in tax revenue and reduce dependence on trade taxes it envisages fundamental reforms in the tax laws and modernization of tax administration.

The plan will emphasise on equity, better service delivery through improvement in governance and management, improving education financing. including a significant increase in public funding as a share of GDP and promoting public-private partnership in education.

About the population, health and nutrition, the plan provides importance to equity and gender balance in the distribution of health care services, strengthening private sector role and ensuring accountability as well as strengthening partnerships with NGOs.

To mitigate the adverse consequences of climate change, the plan will explore collaboration with the international community.

The sixth five year plan will seek to address the income inequity, high income jobs, improving farm productivity and incomes to reduce poverty and safety net. The strategy will be to design and implement a range of social protection programmes that meets the needs of this under-privileged group.

Priority will be given to the implementation of e-governance through the Digital Bangladesh initiative to provide better and speedier service and to improve the transparency and accountability of public service agencies.

Besides, attention will be focused on developing and strengthening a number of core public institutions, including the central bank, the Ministry of Finance, the Tax Department, the Planning Commission, Audit and Accounts, the parliamentary sub-committees, land administration and the public utilities.

 

[akash57]

Tk 1000cr employment scheme for ultra poor begins in Oct

BSS, Dhaka

A programme involving Taka 1,000 crore is set for generating employment opportunities for thousands ultra poor all over the country.

The Ministry for Food and Disaster Management will be implementing the programme, providing up to eight lakh extreme poor with the means of living during October to December when rural job scarcity leads many to starvation.

The programme targets covering eight lakh poor people with a daily wage of Taka 120. The number of the beneficiaries would come down to 6.5 lakh if the wage increases to Taka 150.

Similar to the food for work project, the programme will involve the poor people in different rural development projects.

The ministry has planned disbursing the money to the beneficiaries' bank accounts directly so middlemen cannot reap any benefit out of it as they usually do in such cases.

The ministry also held a meeting with representatives of Bangladesh Bank and state-owned commercial and specialized banks to implement its plan.

Official sources said the central bank received a request from the ministry for allowing the extreme poor open bank accounts for Taka 10 like the farmers' account.

BB Governor Dr Atiur Rahman told BSS today that the central bank would offer Taka 10 bank accounts to the poor as it would ensure transparency of the employment project while assure hassle-free payment.

"These accounts would stop payments to ghost workers who used to cash in on such programme without any participation," the governor said.

He said that the facility would also increase the depth of the central bank's strategy for financial inclusion.

He added that the accounts would remain active for all other banking purposes like a savings account.

Dr Atiur said the existing bank branches in rural areas would manage the accounts without facing any problem as each branch would be required to handle 150 such accounts.

The New Nation - Internet Edition

 

[akash57]

Coca-Cola plans to set up state-of-the-art plant

Sheikh Shahariar Zaman

Coca-Cola, a global leader in beverage industry, has submitted its second investment proposal to the government expressing its intention to set up two companies - one for production and the another for distribution.

"We have received the proposal and scrutinised it," economic adviser to the prime minister Dr Mashiur Rahman told the FE.

"We are positive about the investment proposal and it is likely that the issue will be settled by this year," he said.

Dr Rahman is the head of the committee that is examining the investment proposal of the multinational company (MNC), which markets three popular brands -- Coke, Sprite and Fanta.

The other members of the committee are BoI executive chairman Dr SA Samad and State Minister of Liberation War Affairs AB Tajul Islam.

Coca-Cola in September last year submitted its first proposal to invest $51 million to expand its business in the country.

The company in its latest proposal expressed its intention to set up a modern production plant.

The proposal said that the company wants to "set up an indirect wholly owned local subsidiary that will establish a new state of the art beverage manufacturing facility in Bangladesh."

The company will take at least three years to complete the processes and the entire equity capital of this subsidiary will be funded by its foreign source, it added.

The processes involved acquisition of suitable land and setting up facility, securing all required approvals, licences, consents and permission from the proper authorities.

The global beverage maker requested the Board of Investment to take the new proposal on record and the local company will in due course apply for registration with the BoI.

"We will as our business evolves in Bangladesh keep reviewing our business structure in order to best meet the requirements of our business," the investment proposal said.

Coca-Cola started business in Bangladesh with an agreement with Tabani, owned by a Pakistani national, in 1965.

After the liberation, Tabani was put under the Freedom Fighters' Welfare Trust and it continued its business up to 2008.

"The MNC used to sell to us the liquid concentrate of its brands and here we produced cold drinks and marketed them," said a Tabani official.

The company asked Tabani to increase its capacity in 1978 but it failed to do so and later the MNC signed another agreement with Abdul Monem Group to produce the popular cold drink brands.

"Tabani had the right to distribute its products in greater Dhaka and Rajshahi divisions while Monem entered into a contract to distribute them in Chittagong and Khulna divisions," he added.

The companies at that time only produced regular glass bottle (RGB) drinks and it continued production until 2001, when Monem introduced PET bottles in the market.

The MNC in 2003 asked Tabani to improve its quality including setting up an effluent treatment plant on the factory premises but it failed to comply with the conditions, the official said.

Eventually, Coca Cola scrapped the contract with the Tabani in 2008 and now it has come with the investment proposal aiming to benefit from the emerging economy by itself.

Coca-Cola plans to set up state-of-the-art plant

 

[akash57]

MoC-FBCCI to prepare database of major traders

Jubair Hasan

The Ministry of Commerce (MoC) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) would make a special database of major traders to make monitoring easier in the event of price hike of essentials.

Product-related information of each of the traders would be included in the database so that the market monitoring taskforce can take legal action against unscrupulous businessmen who often increase prices of the essentials citing international market as well as creating artificial scarcity.

They took the decision as a number of market-controlling measures of government and private groups did little in bringing down prices of essentials within the purchasing capacity of common people.

FBCCI president AK Azad said, the database would have information about how many products the traders imported, its purchasing costs and the selling price. "It'll definitely force the traders to be accountable to the market watchdog," he said.

President of the country's apex apparel body said they received several allegations that some traders illegally raised prices of some important essentials, especially sugar and edible oil by creating artificial scarcity in the local market.

"The concerned ministry is investigating the alleged wrongdoings through a three-member probe committee. We'll take punitive measures against those found guilty," the FBCCI chief said without disclosing their names.

He, however, claimed that prices of the commodities have remained mostly stable during Ramadan excepting some isolated incidents as the joint price monitoring taskforce of FBCCI and MoC have been working hard across the country to check the price hike of commodities.

Gholam Hossain, secretary of MoC, said the database will play a very crucial role in establishing a stable market as it will make the traders accountable to people.

President of Consumers Association of Bangladesh Kazi Faruk appreciated the move after branding it as an appropriate step to cool down the market temporarily.

"It needs a legal framework for a permanent solution of the common problem," the CAB president said, adding the delivery order (DO) system should be eliminated immediately as it is one of the major causes behind the price hike.

MoC-FBCCI to prepare database of major traders

 

[CaPtAiN_pLaNeT]

Hospitality industry records 34pc growth in six months

Saturday, 04 September 2010 21:04

Hospitality industry records 34pc growth in six months

Hospitality industry records 34pc growth in six months
FHM Humayan Kabir

The country's booming hospitality industry has maintained an impressive 34 per cent growth in the first half of the current calendar year, thanks to political stability and increased flow of foreign tourists and businessmen, officials said Saturday.

Luxury hotels in Dhaka earned nearly Tk 1.20 billion in January-June period of 2010 against Tk 894.45 million in the corresponding period last year, the room revenue data of the hotels showed.

"The hospitality industry is expected to grow to a new height as four five-star and one three-star hotels in Dhaka earned nearly Tk 1.20 billion revenue in first six months this year, Tk 304.34 million up compared to same period last year," a senior manager of a hotel told the FE.

Bangladesh's major four five-star hotels -- Pan Pacific Sonargaon, Dhaka Sheraton, Radisson Water Garden and The Westin and another three-star hotel -- Dhaka Regency -- are all located in Dhaka.

Bangladesh is one of the emerging economies in the world. It attracts thousands of foreign tourists, especially the businessmen and ready-made garment buyers, every year, which help boost the growth of the hospitality industry.

ATM Hafizullah, assistant General Manager of the Dhaka Regency Hotel and Resort Ltd, said four five-star hotels in Dhaka earned Tk 1.18 billion from the rooms revenue in 2007, which has gone up to Tk 1.20 billion in only six months this year.

The room revenue data showed that the four five-star hotels in Dhaka earned Tk 970.42 million in 2006 and Tk 717.98 million in 2005.

"We are optimistic that the hospitality industry in Bangladesh will flourish further in coming days as the country's economy is growing fast with the increased flow of tourists and businessmen to the country," said Mr Hafizullah.

He said: "Businessmen around the world have chosen Bangladesh as one of the lucrative place for investment for its big market. This is helping the hospitality industry take to a new height."

The occupancy rates of the newly set up Radisson Water Garden and The Westin are higher than the older two other five start hotels -- Pan Pacific Sonargaon and Dhaka Sheraton, an official of the Radisson hotel said requesting anonymity.

He said the newly opened Dhaka's Radisson hotel's occupancy rate was 88.22 per cent during January-June period this year followed by 83 per cent at the Westin, 64.15 per cent at Dhaka Sheraton and 62.82 per cent at Sonargaon hotel.

"The winter season is the peak time for tourists flow. We expect more revenue earnings during the last quarter (October-December)," the official said.

"I hope the revenue earnings will cross Tk 2.5 billion mark in 2010. It will be a history for the country," he said.

In the first half (January-June) of 2010, the Westin hotel earned the highest Tk 412.40 million as room revenue, followed by the Radisson Tk 292.45 million, Sonargaon Tk 212.52 million, Dhaka Sheraton Tk 184.83 million and the Dhaka Regency Tk 96.58 million.

"I believe if the political situation in the country remains stable, the hospitality industry will grow further and will emerge one of the important industry in the country within a few years," ATM Hafizullah said.

"The country's hospitality industry has become very competitive like other countries as couple of new famous brand hotel has recently been added. It is now providing world class service, which is attracting many foreigners to Bangladesh," Toufiq Rahman, a local tourism expert told the FE.

"As per volume of orders from tourists from different countries, we can easily said that the occupancy of the luxury hotels will rise manifold," said Mr Rahman of the Journey Plus, a leading tour operator.

"Everyday, we receive many guests involving in a wide range of business activities, including garment merchants, telecom and energy sector investors, donor agency delegates, as well as a number of tourists," said a top official in Dhaka Sheraton Hotel.

The competition among the hotels has made the industry more lucrative to the local and foreign guests, who are offered world-class services, he said.

Yet in the next few years competition is likely to become more intense with at least four to five other international chain hotels, Best Western, Hilton, Holiday Inn and the Intercontinental planning to come in the business.