Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

Automation in banking boosts GDP growth

Saturday, 04 September 2010 21:05

http://nation.ittefaq.com/issues/2010/09/05/news0560.htm

Automation in banking boosts GDP growth
BSS, Dhaka

The ongoing automation of the country's banking sector is expected to gear up the economic growth by at least 1 percent on its completion in around two-year time.

Bangladesh Bank (BB) is carrying out an integrated automation programme with assistance from the Department for International Development (DFID) under which two major components of the banking services will come under cyber technology by next year.

BB Governor Dr Atiur Rahman and Consultant of the project Randy Kahn are confident that the automation of the banking services will accelerate economic growth by no less than 1 percent.

Under the programme, automated clearinghouse will replace the traditional cheque clearing system by this year end and the Bangladesh Electronic Fund Transfer Network (BEFTN) will be in place next year.

The central bank already conducted a successful simulation of its automated clearinghouse, which would link all 48 banks under an automated cheque clearing system by November 1.

The system will facilitate all the banks clear their cheques in two days whereas the current system takes about 21 days to clear a cheque from banks outside Dhaka. The banks in Dhaka city, however, are enjoying the automated facility from April this year.

The central bank directed all the banks phase out all non- MICR (Magnetic Ink Character Recognition) cheques by October as the clearinghouse will not entertain any traditional cheque from November 1.

Dr Atiur Rahman said the fund flow would be faster with introduction of the automated clearing system for all the banks across the country.

The faster fund flow, he continued, would eventually accelerate businesses when the automated system would ensure hassle-free and secured transactions.

With the launching of the electronic fund transfer network, all the transactions like bill payment, fund transfer, tax payment and payments for online shopping will only be a click away.

Randy Kahn expected that this system would be in place by next year, offering a speedy fund transfer to stimulate further the economic activities.

Lauding the efficiency and commitment of the BB's staff, he said the automaton process is progressing faster even than the process in the United States due to the skill and dedication of people working in the central bank.

Kahn said automating the US banking sector was a difficult task and took more time than the progress in Bangladesh.

He observed the automation process as a driving force in achieving the vision for Digital Bangladesh and advised continuous effort to make people tech-savvy.

"It is easy to change technology, but hard to change people," Kahn said.

 

[CaPtAiN_pLaNeT]

YKK to expand its business in Bangladesh

Saturday, 04 September 2010 21:07

YKK to expand its business in Bangladesh

YKK to expand its business in Bangladesh
FE Report

Japanese zipper maker YKK is going to expand its apparel zipper plant in Bangladesh as part of its latest expansion plans, online apparel news portal just-style.com reported recently.

The company said it has a rapidly growing export market on its hands, particularly for processed products in European markets.

YKK established its first Bangladesh overseas plant in 2000 named YKK Bangladesh, in Dhaka. In 2002 Dhaka saw its first expansion, with the second phase of plant expansion in 2004.

Phase III will see the factory grow by 45 per cent before 2015, YKK official said. Sales goals from the plant are US$78 million by 2015 and total investment in the expansion will be US$27 million over four years.

The leading Japanese zipper company through its establishments in Bangladesh is helping the local garment manufacturers and exporters to be better prepared to overcome the challenges in the quota-free world. It regularly holds seminars for garment personnel where its exporters deliver the latest market information and strategies.

As the world's largest zipper manufacturer, YKK Group is most famous for making zippers. However it also manufactures other fastening products, architectural products, and industrial machinery.

YKK claims to be the first zipper company to promote environmental protection measures. It has developed a line of "environmentally friendly zippers", following the company's philosophy "The Cycle of Goodness" which means that one prospers when one renders benefit to others.

The group has manufacturing facilities in 68 countries, has the world's largest zipper manufacturing center located in Macon, Georgia, where they have 900 employees.

 

[CaPtAiN_pLaNeT]

RMG exporters get a boost

Saturday, 04 September 2010 21:12

RMG exporters get a boost

RMG exporters get a boost
Govt taskforce decides 5pc incentive for penetrating new markets
Staff Correspondent

The government will provide development incentive to the garment industry for three years for exporting clothes to new markets.

The incentive would be five percent on export earning in the first year, four percent in the second year and two percent in the third year.

The decision came at a meeting of the taskforce on making strategies for the country's export sector suffering for global economic recession. Finance Minister AMA Muhith chaired the meeting at his office at the secretariat.

The minister told reporters after the meeting that, “Garment manufacturers making exports to countries other than the USA, Canada and European Union will get the incentive”.

For this, the government would create a new fund from the budgetary allocation of Tk 2000 crore for providing incentives to exporters of different sectors, he said.

The exporters will get the new incentive in addition to the earlier five percent incentive given to all garment exporters, he mentioned.

The meeting also took some other decisions which will be notified in a circular to be issued tomorrow, Muhith noted.

He also said the backward linkage industries of the garment sector, which do not get any incentives now, would also be provided with a five percent incentive for a year on their sales.

The industries, however, have to be certified by the Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association for the incentive.

In the present fiscal year, the government raised the tax at source to 0.50 from 0.25 percent. Since then, garment exporters have been demanding that the tax rate should be lowered.

Sources said the meeting decided to lower the tax at source to 0.40-0.30 percent. The National Board of Revenue will decide it.

Bangladesh Bank Governor Dr Atiur Rahman, Finance Secretary Dr Mohammad Tareq, NBR Chairman Dr Nasiruddin Ahmed and other high officials of the finance ministry were present at the meeting.

 

[CaPtAiN_pLaNeT]

Japanese IT co to set up 'Data Entry Centre' in Ctg

Saturday, 04 September 2010 21:08

Japanese IT co to set up 'Data Entry Centre' in Ctg

Japanese IT co to set up 'Data Entry Centre' in Ctg
FE Report

City Computer Corporation Limited, a Japanese IT company has planned to establish a data entry centre for the development of human resources and employment opportunities with the help of the Chittagong Chamber of Commerce and Industry (CCCI) in Chittagong recently, said a press release.

A representative body of four members, headed by City Computer Corp President Sumiyuki Kawahara, took a 5-day visit to Chittagong on this occasion.

At that time, the company recruited some skilled IT professionals for their programme who are going to Philippines next month for higher training.

Following this occasion, an office named 'Trade Promotion Centre' was opened by CCCI in Tokyo headed by CCCI President M A Latif MP to develop Bangladesh-Japan trade and investment promotion.

Consequently, investment procedure has been started including employment generation in Chittagong as well as all over the country.

CCCI President (in-charge) M Salam, Vice President S M Shafiul Haque and Director Shahin Alam along with the representative body were also present on the occasion.

During the discussion, City Computer Corp President expressed his thoughts to invest to the IT sector of Chittagong, the South-Asian Regional Hub and commercial capital of Bangladesh.

Sumiyuki Awahara evinced his interest to open an office in the World Trade Centre, being constructed in the port city.

Other members at the representative body were: City Computer Corp Director Toshiko Tamaki, General Manager in Philippine Masatoshi Saito and Tokyo Branch Deputy Manager Masatomo Kawahara.

In addition, to invest jointly in the sports sector, another representative body of the Japanese company Naigai will visit Chittagong for a discussion with the related businessmen in the CCCI head office in Chittagong on Sept 6, the press release added.

 

[CaPtAiN_pLaNeT]

Khaleda seeks increased IDB support in energy, power

Leader of the Opposition in Parliament and BNP Chairperson Khaleda Zia performs Umrah in Makkah along with family members and party leaders on Friday midnight. Photo: BNP Unb, Jeddah

BNP Chairperson Khaleda Zia discussed various development projects and investments in Bangladesh with Islamic Development Bank (IDB) President Ahmed Mohamed Ali here yesterday.

Khaleda also met with Organisation of Islamic Countries (OIC) Secretary General Ekmeleddin Ihsanoglu at the OIC headquarters in Jeddah on September 1.

During her visit to the IDB headquarters, IDB's senior management gave an extensive briefing and presentation of its latest overall position after the various major reforms it has undertaken. Following the reforms, the IDB is now the Islamic Development Bank Group.

Nijad Subei of IDB presented the multimedia presentation, touching the bank's priority areas of investment, its vision for the next 10 years and the major reforms.

During the presentation Khaleda Zia wanted to know about IDB projects in Bangladesh, particularly its future projects in the fields of energy, power and education.

Ahmed Hariri, who looks after the West and Southeast Asia department, apprised the meeting that presently some 79 projects, in areas including education, health, power and energy sectors, worth a total of US $6.8 billion are now running in Bangladesh with IDB involvement.

Human resources development is now the topmost priority of IDB. Saudi Arabia is the major donor to IDB, which has 56 Muslim countries as members.

Khaleda Zia requested increased IDB support for the operational costs of the Islamic University of Technology (IUT) in Gazipur, as well as an increase in the number of the scholarships available at the IUT.

She also wanted to know about IDB's emergency disaster management fund, as not only Bangladesh, which has always been a victim of natural disasters and climate change, but also many other countries including Pakistan which is also vulnerable to such disasters.

BNP Vice Chairman Shamser Mobin Chowdhury, who was at the meeting, said Khaleda also emphasised further strengthening the IDB's human resource development projects in Palestine.

The IDB president recalled that late president Ziaur Rahman had a great role in establishing the Islamic Development Bank in 1975. He also termed Zia as a special friend of the IDB, said Shamser Mobin.

Ali assured continued IDB support to Bangladesh in the days ahead.

Khaleda said like in the past Bangladesh would continue its cooperation and support to IDB.

Later, Leader of the Opposition Khaleda went around IDB headquarters and talked with Bangladeshi officers and staff working there. Khaleda stayed for about 2 hours in the bank's headquarters.

BNP chairperson's Adviser Sabihuddin Ahmed, Press Secretary Maruf Kamal Khan and Special Assistant Shimul Biswas were present.

Khaleda came to Jeddah from Makkah and went back to Makkah after concluding the programme at the IDB.

She arrived in Saudi Arabia on August 30 to perform Umrah.

Khaleda seeks increased IDB support in energy, power

 

[CaPtAiN_pLaNeT]

Dhaka metro rail to be mostly elevated

Saturday, 04 September 2010 21:14

Dhaka metro rail to be mostly elevated

Dhaka metro rail to be mostly elevated
First phase to link Sonargaon crossing with Pallabi; project likely to end by 2015



Sharier Khan

The first part of a mostly elevated metro rail system in the capital will be built mainly over government land and existing roads, based on a Japanese study, said Communications Minister Syed Abul Hossain.

Japan showed interest in financing 80 percent of the project cost as well, amounting to US$1.7 billion. The remaining 20 percent of the cost will be borne by the government.

The government is expecting Japan to finalise the funding during Prime Minister Sheikh Hasina's visit to that country in January or February next year.

Japan International Cooperation Agency (Jica) conducted the study on the metro rail system, and determined that it will be doable if the majority part is built over the surface. The communications minister said some parts however will be underground.

"This project will not be a public private partnership like the elevated expressway," Syed Abul Hossain told The Daily Star recently. Rather it will be a government project funded by Japan, he added. If Japan provides untied loan, the government will go for open tender.

The Jica study chalked out three routes. Japan showed interest in the first part dubbed Mass Rail Transit-6.

This part will be 22-kilometre long, said Dr SM Salehuddin, additional executive director of Dhaka Transport Coordination Board. The route stretches between Uttara Third Phase and Sayedabad via Pallabi, Chandrima Udyan, and Hotel Sonargaon crossing.

The remaining two parts involve circular routes from Gulshan-1, Mirpur, Azimpur, National Press Club, and Gulshan-2.

Dr Salehuddin noted that enterprises from China, Iran, India and Malaysia showed interest in the second and third parts of the project.

The Chinese and Iranians are particularly interested in the Gulshan to Mirpur route.

According to the study, financial negotiations between Japan and Bangladesh could be completed by June next year, after which a detailed engineering study will be carried out till December 2013.

By July 2013, the government will be able to begin construction of the first phase. An ongoing environmental impact assessment will be completed by January next year.

In the first stage of construction, the metro rail will be built between Pallabi and Hotel Sonargaon crossing between 2013 and 2015. In the second stage the route between Sonargaon crossing and Sayedabad, and in the third stage the Pallabi to Uttara route will be built.

The study noted that the construction cost of the elevated part will be around 12 million dollars per km, while the underground structure will cost 48 million dollars per km.

The communications ministry also decided to shelve an idea of building a mono rail. The minister said initially it was thought that a mono rail could be built along with the ongoing bid for the 21 km Dhaka Expressway. But a primary study found that to be technically impossible.

 

[CaPtAiN_pLaNeT]

Govt signs deal with US oil giant this month


FE Report

The government, struggling to shore up energy supply, plans to sign an initial deal with US oil giant ConocoPhillips this month to initiate hydrocarbon exploration in the deep sea.

State-owned Petrobangla will sign the deal with ConocoPhillips following a process initiated two and a half years ago through invitation of international tender.

Top officials of the energy ministry and Petrobangla held a meeting with ConocoPhillips last week before reaching the decision of signing the deal.

Under the deal ConocoPhillis will initiate conducting survey and exploration in the undisputed areas in two deep water offshore blocks.

The final production sharing contract (PSC) will be signed after resolving the dispute of overlapping gas blocks with the neighbouring India and Myanmar, a senior energy ministry official told the FE.

During last week's meeting the government accepted ConocoPhillips' demand for changing the location of arbitration from Dhaka to Singapore, said the official.

ConocoPhillips has been awarded two deep water gas blocks -- DS-08-10 and DS-08-11 blocks -- in the country's 2008 offshore bidding round.

Irish Tullow Oil was also selected for shallow block SS-08-05 following the bidding.

But signing of production sharing contracts (PSCs) remained stalled due to overlapping dispute with neighbours as Myanmar and India have claimed part ownership over the three offshore blocks awarded to ConocoPhillips and Tullow Oil.

Bangladesh had asked both ConocoPhillips and Tullow Oil not to carry out hydrocarbon exploration in the disputed areas of the offshore blocks.

Bangladesh is now in talks with neighbors to settle the maritime boundary disputes and commence explorations in the prospective offshore structures.

It has also lodged suit with the United Nations tribunal to settle the maritime boundary disputes with the neighbours.

Bangladesh's foreign ministry is also working on demarcation of the disputed areas in the ConocoPhillips and Tullow awarded blocks to immediately start exploration work there.

Currently, UK's Cairn Energy operated Sangu gas field is the country's lone operational offshore field with the output hovering around 35 million cubic feet per day (mmcfd).

The country's total gas output is now around 1,980 mmcfd against the demand for over 2,300 mmcfd.

Govt signs deal with US oil giant this month

 

[CaPtAiN_pLaNeT]

NEW INT’L AIRPORT
Site selection depends on
investors: minister
Mustafizur Rahman

The government is yet to select a site for the proposed Bangabandhu Sheikh Mujib International Airport, to be built under public-private partnership, as the matter depends on the investors’ choice.
‘The investors will conduct a separate feasibility study for construction of the international airport and give their choice for the site,’ civil aviation and tourism minister GM Quader told New Age on Thursday.
The civil aviation authorities initially selected three sites – two in Madhupur of Tangail and one in Mymensingh’s Trishal for the Tk 50,000 crore project expected to be completed by 2015.
Locals in Mymensingh said that land prices in Trishal was on rise following media reports that the new airport would be built there while some others were protesting against the project in fear of loss of land.
‘This is nothing final…We can select any other site and it depends on the investors’ choice. The investors must consider the viability of the project,’ the minister said.
The authorities are preparing documents so that interested investors can be provided with information on demand on the giant project, said officials.
Quader said it was a challenge for the government at the moment to attract investors for the project. ‘Very soon we will float tender seeking expression of interest for construction of the new international airport.’
The cabinet committee on economic affairs on August 29 approved in principle that Bangabandhu Sheikh Mujib International Airport would be built under public-private partnership, prompting various quarters to buy lands in the probable areas for the site.
The idea of PPP, meant to boost investment in power and infrastructure sector, was put forth by the finance minister, AMA Muhith, during his budget speech for the last fiscal.
It, however, took almost a year for the government to finalise the guidelines for the scheme as it was published in a gazette notification on August 1.
The airport would be built on about 6,000 acres of land, said officials adding that the estimated cost of the project includes expenses for construction of an elevated expressway between Dhaka and the airport and a monorail.
The civil aviation ministry meanwhile proposed formation of a cell to speed up the construction of Bangabandhu Sheikh Mujib International Airport.
‘We have proposed to form a four-member cell led by an additional secretary to the prime minister to expedite the activities of the project,’ the civil aviation minister mentioned.

Front Page

 

[CaPtAiN_pLaNeT]

Tk 750cr move planned to free
Mirpur Road of signals
Shakhawat Hossain

The communication ministry has planned to turn Azimpur-Gabtoli route into a signal-free road at a cost of Tk 750 crore for easing traffic congestions in the city’s western fringe, ministry officials said.
It has already drawn the layout of a project with the help of Bangladesh University of Engineering and Technology to upgrade about two dozens of intersections along the 14-km road with ‘U’ and the ‘loop’ shaped overpasses.
Besides, tunnels for movement of vehicles would be built at Russel Square and at Sangsad Bhaban for uninterrupted ride between Azimpur and Gabtoli.
Communication ministry officials expected that a vehicle could reach Gabtali from Azimpur in less than 30 minutes with the planned upgradation.
Roads and highways department would implement the project, the name of which has been proposed to be ‘Bangabandhu Memorial Corridor’.
When completed, it would help to curb traffic congestions in the western part of the capital where people are facing immense suffering because of chronic traffic jams at places like New Market, Elephant Road, Kalabagan, Asad Gate and Shymoli.
It would be a good news if the government can build such transport facility on Azimpur-Gabtali road, said Sirajul Islam, a businessman of Gausia market.
Islam, who lives in Mirpur, said traffic jam often forced him to reach his place of work in more than three hours.
Experts, however, suggested for checking unbridled development of shopping malls and business establishments having no parking facilities along the road to reduce pressure on it.
They also urged the authorities to check the high growth of educational institutions and food shops in Dhanmondi residential area which compounded traffic jams.
Without checking those the upgradation of the road would not bring about dividend in curbing traffic congestion, said former communication ministry secretary Mahbubur Rahman.
Last week, a review meeting on the proposed project was held in the ministry with communications minister Abul Hossain in the chair. The meeting decided to seek opinions from professor Jamilur Reza Chowdhury about the design and other technical issues.
Traffic congestion in the city and its adverse impacts on everyday life became a major cause of concerns for the government which has already taken some other plans like construction of flyover from Sanir Akhra to Palashi.
The government is also seriously planning to introduce metro rail and circular waterways to address nagging problem of traffic congestion in the city.

 

[TopCat]

Tk 750cr move planned to free
Mirpur Road of signals
Shakhawat Hossain

The communication ministry has planned to turn Azimpur-Gabtoli route into a signal-free road at a cost of Tk 750 crore for easing traffic congestions in the city’s western fringe, ministry officials said.
It has already drawn the layout of a project with the help of Bangladesh University of Engineering and Technology to upgrade about two dozens of intersections along the 14-km road with ‘U’ and the ‘loop’ shaped overpasses.

Nice to see local engineers are making those complex designs.

 

[bd_4_ever]

Nice to see local engineers are making those complex designs.

Yes exactly!!....btw just for knowledge, where usually does the BUET students get internships or industry experience in....any ideas??


Cheers!!!

 

[Skies]

I think it depends upon subjects. Like CSE, EEE, Civil and others. And where they got scope for internship. Can be big or small company. My friend did in Beximco chemical.

 

[TopCat]

Yes exactly!!....btw just for knowledge, where usually does the BUET students get internships or industry experience in....any ideas??


Cheers!!!

When I was a student in BUET we had to do 2/3 weeks of industrial training and BUET paid for it. I am not sure about current facilities but once I saw some BUET students were surveying on the Airport road, must be something related to their internship programme or related to the projects discussed here.

 

[akash57]

Deepening economic relations with Myanmar

Bangladesh's big neighbour to the east, Myanmar, has for a long time been known as a country with which it could promote in a planned manner stepped-up interactions in the economic and trade matters. But the potentialities have remained little exploited or explored to the detriment of the interests of both countries. Only in recent years, suggestions have been made for boosting trade and economic relationship with Myanmar. But the process was hazarded by the influx of Rohingya refugees from Myanmar to Bangladesh, the growing military stand-off between the two countries over demarcation of their sea boundaries, etc.

However, it is happy to note that the political problems between Myanmar and Bangladesh are showing signs of a resolution. Myanmar has taken some of the Rohingya refugees back and remains committed to facilitate the return of the rest. The dispute over the demarcation of sea boundaries that at one stage seemed explosive has died down and Myanmar took some policy decisions likely to be helpful for a reasonable and negotiated settlement of that dispute. Thus, the political relations which have a way of powerfully impacting on trade and economic relations, are improving for both countries. For Bangladesh, it remains imperative to keep Myanmar engaged in this constructive spirit and do everything possible to sort out the political issues on the two sides at the fastest. The doing of this, successfully, will pave the ground well for speedier interactions in the economic and trade spheres.

As it is, very useful developments in the economic sphere are envisaged between the two countries. Power supply is proving to be a big worry for the Bangladesh economy. Recently, a delegation from Yangoon visited Bangladesh to discuss the prospect of producing hydro-electricity in the Rakhine state of Myanmar for supplying to Bangladesh. It appears that there are much possibilities of importing -- substantially -- hydro-electricity produced in Myanmar for use in Bangladesh. Similarly, there are also prospects of importing gas from Myanmar. The cross-border trading in energies can be very complementary for both countries. Presently, Bangladesh is starved for energy and needs to get them from any source at the fastest. Myanmar in the present undeveloped state of its economy has a surplus of both gas and power that it stands ready to export. The importing of the same in bulk can be cost-efficient as well as strategically sound for Bangladesh in all respects.

Apart from energy, cooperation can be developed between the two countries in the field of agricultural production. Bangladesh made a proposal to Yangoon sometime ago about leasing vast tracts of unutilized fertile farmlands in Burma. Bangladeshi agro-farms can be allowed to set up enterprises in Burma for producing cereals and diverse agro-produces on the basis of joint ownership. Initiatives for trans-border agricultural production of this nature can be gainful for both countries, specially for Bangladesh with fast growing population and rising concern about building its long-term food security.

A meeting of the Bangladesh-Myanmar Joint Trade Commission (BMJTC) is scheduled for holding in Dhaka on September 22. The meeting will be devoted mainly to easing problems faced by business persons on both sides in their bilateral trade. But the meeting may also utilize part of its time in exploring the bigger fields of economic interactions between the two countries. At any rate, the relevant ministries in Bangladesh need to play a singularly focused role from now on to give a planned boost to economic cooperation with Myanmar in the wider fields.

Deepening economic relations with Myanmar

 

[akash57]

New Industrial Policy to turn Bangladesh a mid income country

The draft of the Industrial Policy-2010 will have an aim to protect and promote local industries with a target of achieving eight percent growth rate by next three years and turn Bangladesh into a mid income country.

The industries minister told BSS that the policy, which will be placed before the cabinet tomorrow, envisaged fitting the local industries with regional and international ones by taking necessary active steps.

The fiver-year industrial policy that was prepared keeping the Vision 2021 of the present grand alliance government insight has envisaged for 10% annual growth by 2017.

Industries Minister Dilip Barua said t the foremost objectives of the new Industrial Policy is to set up planned industries considering the real domestic demand, prospect of exporting goods abroad.

The proposed industrial policy has given priority on development of small and medium enterprises, he said.

The minister said the main objective of the new industrial policy is to build up a sustainable industrial sector in the country through short, medium and long-term measures.

He said the policy laid importance on private public partnership (PPP) and encourage foreign investment to accumulate capital for rapid economic growth.

The proposed industrial policy was initially prepared by the past caretaker government and the present government over the last 18 months closely studied on it to make it pragmatic one to boost the sector.

The industrial policy proposed for special economic zone in the northern districts of Rangpur and Rajshahi divisions and periodic tax holiday for the industries in Dhaka and Chittagong.

It also proposed for seven years tax holiday for the industries in Rajshahi, Khulna, Sylhet, Barisal, Rangpur and three hill districts, ministry officials said.

The policy also proposed preservation of quota in Export Procession Zones (EPZs) for women entrepreneurs.

The New Nation - Internet Edition