Bangladesh Economy: News & Updates

[Skies]

Bangladesh inflation accelerates on food prices

Reuters - 38 minutes ago


DHAKA, Nov 11 - Bangladesh's consumer price inflation picked up to 7.61 percent in September from 7.52 percent the previous month, the government said on Thursday, driven by rising food prices.

Inflation in the 2009/10 fiscal year that ended in June hit 7.31 percent on the back of soaring food costs, above the government's target of 6.5 percent.

Food prices rose 9.72 percent from September 2009, compared with 9.64 percent year on year in August, the Bangladesh Bureau of Statistics said.

Non-food inflation eased to 3.69 percent in September from 3.76 percent in August.

Inflation accelerated due to a spike in prices of rice, pulses, fish, meet and spices, a senior bureau official said.

Recent global commodity price increases raise the risk that domestic food prices will spike further in the coming months, the World Bank said in its latest report on the Bangladesh economy.

"Prices in Bangladesh are affected by price developments in the international market, especially food prices in India. India has been experiencing double-digit food inflation since June 2009, and that contributed to food inflation in Bangladesh."

Rice and wheat prices soared 50 percent over the past year, forcing the government to resume sales of rice from stocks at a subsidised rate and to expand social safety net programmes.

Rising food prices are a major concern for the government as nearly 38 percent of the country's more than 150 million people live on less than $1 a day and spend 70 percent of their income on food.

A senior central bank official said inflation was not very worrying yet and he hoped it would come down to 6.5 percent in the second half of the current fiscal year.

"The rise is in line with expectation. We are taking all necessary steps to tame inflationary pressures," he added.

On Aug. 19, the central bank raised both the repo and reverse repo rate by 1 percentage point to 5.5 percent and 3.5 percent, respectively.

The rates were cut by 2 percentage points in late 2009 to shield the economy from the fallout of the global financial crisis.

The rate hikes followed an increase in bank reserve requirements in May.

 

[CaPtAiN_pLaNeT]

Mobil Jamuna to inaugurate 3 new plants in Ctg Nov 11

Posted on November 11, 2010

Mobil Jamuna to inaugurate 3 new plants in Ctg Nov 11

Mobil Jamuna to inaugurate 3 new plants in Ctg Nov 11

http://www.thefinancialexpress-bd.com/images/news_image_2010-11-08_16521.jpg

FE Report

MJL Bangladesh Ltd, popularly known as Mobil Jamuna Lubricants Ltd, will inaugurate its three new plants-”Grease, Viscosity Index Improver and Transformer Oil” — in Chittagong on November 11.

State Minister for Power and Energy Enamul Huq is expected to inaugurate the plants as the chief guest.

This was disclosed at a press conference at a city hotel Sunday.

Sanaul Haque, chief executive officer (CEO) of the company, said the plants and their technology have been designed and implemented by highly experienced former ExxonMobil personnel who are currently working for product development of the company.

“These new plants are import substitutes and will help save foreign currency worth around Tk 1.27 billion,” he told the FE adding: “All major equipment, including control system of these plants, have been sourced from North America, Australia and Europe”.

The CEO said they will manufacture 850 tonnes of premium grade grease, which is 50 per cent of total annual domestic demand. At present this demand is fully met through import, he said.

The pack-size of the product will be 0.5 kg, 1 kg, 2kg, 3 kg, 5 kg, 10 kg, 20 kg and 180 kg.

Sanaul Haque told the reporters that they, however, could have double shifts in production of the grease, if necessary, to meet total demand of the country.

Viscosity Index Improver and Transformer Oil plants have been set up for the first time in the country, he said.

He said demand for Transformer Oil is increasing rapidly in the country with the demand of electricity and it is entirely imported. Presently, they will be able to supply 8000 tonnes out of total demand of 2000 tonnes, he added.

MJL high officials Mukul Hossain and Tipu Sultan were present in the press conference.

 

[CaPtAiN_pLaNeT]

Int’l shipbuilding show from Jan 11
Posted on November 11, 2010

Bangladesh Sangbad Sangstha (BSS)

Int’l shipbuilding show from Jan 11

DHAKA, Nov 8 (BSS) – A three-day international exhibition on marine technology, shipbuilding and renewable energy will be held here from January 11, 2011 to display state-of-the-art materials.

ExpoNet Exhibition Ltd of Bangladesh and ExpoNet Exhibition Ltd of India will jointly organize the show at Hotel Sheraton.

The exhibition, first of its kind in Bangladesh’s marine sector, will bring 15 decision makers and qualified buyers under one roof in the capital resulting in business transactions worth millions.

Apart from Bangladesh, Germany, Denmark, Korea, the United Kingdom, Singapore, China, Spain, India, Indonesia are among the countries that will showcase high-tech products and technologies for shipyards, marine equipment suppliers and marine technology specialists and green energy manufacturers.

“I believe the exhibition will pave the way for creating skilled manpower and increasing modern technology use in the country’s dockyards,” Industries Minister Dilip Barua said at a pre-exhibition ceremony at a city hotel yesterday.

Denmark ambassador to Bangladesh Svend Olling, Indonesian Ambassador to Bangladesh Dr Zet Mirzal Zainuddin, managing director of Chittagong Dry Dock Ltd Eng Enamul Baqi, managing director of Rahimafrooz Solar Munawar Misbah Moin, managing director of Prantik Group M Golam Sarwar, former BUET Prof Dr Abdur Rahim were present, among others.

Dilip Barua said Bangladesh’s shipbuilding industry is growing faster but is still lagging behind neighboring countries in terms of maintaining quality and timely supply of ships.

Referring to the shipbuilding giant Singapore, he said the country had such problems but came out of the problems in the last 10 years as a result of holding a series of trade shows.

Svend Olling said the exhibition has become highly important for countries striving for market development and international commercial cooperation. Denmark embassy also has a strong focus on collaboration between Danish and Bangladeshi companies in the important and rapidly growing IT sector, he said.

Dr Zainuddin said multi-industrial events to be held on the sidelines of the exhibition will bring huge benefit for the professionals in these industries in Bangladesh.

Chief Executive Officer of Infrastructure Development Company Ltd (IDCOL) Islam Sharif said a total of 75 million Bangladeshis have no access to electricity and the answer lies only in sustainable, market-based renewable energy solutions.

Director of ExpoNet exhibition Ltd Rashedul Haque said the exhibition will create an unprecedented opportunity for Bangladesh not only to display the unique aspects of the recent developments but also shed light on its progress to the global maritime community.

 

[CaPtAiN_pLaNeT]

Govt to allow private companies to set up oil refineries

Posted on November 11, 2010

Business

Govt to allow private companies to set up oil refineries
Staff Correspondent

The energy ministry on Wednesday decided that private companies would be allowed to set up oil refineries ignoring the opposition of the state-run Eastern Refinery Ltd.

The ministry officials at an inter ministerial meeting, chaired by prime minister’s adviser Tawfiq-e-Elahi Chowdhury, presented a draft policy guideline for allowing private companies to set up refineries.

Tawfiq, however, asked the officials to shorten the policy keeping consistencies with the existing petroleum and environment acts.

The adviser said that the private companies would be allowed to set up refineries but the government would not give any guarantee of purchasing fuel oils from them and the refineries would have to be export-oriented.

Energy officials, however, said that the refiners would have to sell fuel oils to government once the government asked for.

But the ERL officials opposed the government move as they believed that their plant alone can meet the local demand if its capacity is enhanced through BMRE (balancing, modernisation, rehabilitation and expansion) programme.

At present, the country has only a state-owned refinery – Eastern Refinery Limited – with annual production capacity of 1.5 million tonnes.

The state-owned Bangladesh Petroleum Corporation imports crude oil and then it refines the fuel oils through its subsidiary ERL for local use.

The government imports refined petroleum to meet the rest of the total demand of 38 million tonnes of fuel oil in the country a year.

ERL officials felt that the government would ultimately ditch a plan for BMRE of the refinery to purchase oils from the influential private companies.

Finding huge potential in refinery business, a number of local and international companies offered the government to set up plants in the country.

Official sources said the government so far received six proposals from local and international investors to set up private refinery, adds United News of Bangladesh.

Local Basundhara Group and Mobil Jamuna Fuels Limited, and a Czech and a Saudi oil firm are among the interested parties who submitted proposals to set up private refinery in the country.

Of them, Basundhara Group offered to invest $700 million while MJFL proposed to invest $ 110 million for a plant.

The Czech state-owned export bank offered to invest $ 2.5 billion in the refinery business.

The local Beximco Group also submitted a proposal to the government seeking permission for refinery business, said a source.

 

[CaPtAiN_pLaNeT]

Laptop to cost only Tk 15,000

Posted on November 11, 2010

Laptop to cost only Tk 15,000

Laptop to cost only Tk 15,000

Staff Correspondent

Telephone Shilpa Sangstha (TSS) will start manufacturing and assembling laptop and notebook computers in the country within six months in collaboration with a Bangladeshi IT company and a Malaysian equipment manufacturer.

Under the joint venture initiative, the highest price of a laptop or notebook will be Tk 15,000.

The decision came at the weekly cabinet meeting at Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair.

The meeting approved a proposal to merge TSS Ltd, the state-run telephone equipment manufacturer, with 2M Corporation Ltd, Dhaka and TFT Technology, Penang, Malaysia for assembling and production of laptop and notebook.

TFT Technology Group is a leading original equipment manufacturer of audiovisual products and computer peripherals including LCD monitors, LCD TVs and integrated home theatre solutions while 2M Corporation is a trading house and service provider of renewable energy, hi-tech security and surveillance products.

The decision was taken with an aim to make laptop and notebook available to common people in rural areas as part of the government’s pledge to build digital Bangladesh.

The joint venture company, to be named as TSS-2M-TFT, will manufacture laptop and notebook in three sizes–8.5″, 9.5″, 12″ and the highest price will be Tk 15,000, prime minister’s Press Secretary Abul Kalam Azad told reporters after the meeting.

Total capital for launching the project has been fixed at Tk 148 crore in which TSS will have 30% share, he said adding this initiative will create employment opportunities and also save foreign currencies.

Talking to The Daily Star, Mesbah Ahmed, managing director of 2M Corporation, said the laptop and notebook will be manufactured maintaining international standards. “The prices of the notebook and laptop will be less and their quality will be better than other similar items in the market.”

It would take at least six months to sell laptops and notebooks in the market because TFT would take at least two to three months time to bring machinery and set them up in the TSS factory in Tongi, he said.

TSS’s existing infrastructure will be used to manufacture laptops and notebooks.

“Primarily we will be manufacturing 5,000 laptops and notebooks per month although the government’s desires of supplying 10,000 units a month,” said Mesbah.

The initiative was taken a year back but remained stalled due to bureaucratic tangles, he said.

“After getting the official order, we will formally invite TFT to set up the machinery,” he added.

 

[Skies]

ADB: $120M Loan to Improve Urban Planning, Services, in Bangladesh

11/11/2010 11:25 (14:47 minutes ago)

The FINANCIAL -- Bangladesh, supported by a $120 million equivalent Asian Development Bank (ADB) loan, is planning an overhaul of urban planning and infrastructure in two of its biggest city regions where services have struggled to keep up with booming populations.

The ADB Board of Directors approved the loan for the Bangladesh City Region Development Project, which will target energy-efficient, environmentally friendly urban services, more coordinated regional development planning, and stronger management capacity for municipalities in the sprawling city regions of Dhaka and Khulna, which include surrounding secondary towns.



"The goal is to increase the growth potential and environmental sustainability of these two city regions," said Masayuki Tachiiri, Urban Economist in ADB’s South Asia Department.



"Bangladesh’s cities have been growing at breakneck pace with the urban population expected to double to 74 million by 2035. However, planning and services have failed to expand at the same pace, resulting in sanitation, drainage, water supply and other problems, which have restricted economic and social activities. A metropolitan development plan for Dhaka, covering the period 1995 to 2015, has been slow to rollout and is fast becoming outdated, undermining the city’s potential for growth," ADB informs.



Along with physical improvements to water, drainage, urban transport and other facilities the project will incorporate a pilot program that will install energy-efficient water pumps and solar-powered street lights. This will deliver substantial cost savings for municipal authorities as well as reducing carbon dioxide emissions - an increasingly important issue for Bangladesh, which is one of the most vulnerable countries in the world to climate change. Based on a study to simulate climate change impacts, the project will also support adaptation measures to strengthen climate change resilience, notably the improvement of drainage in Khulna.



"Municipalities are not well prepared to adapt to the expected negative impacts of climate change, and are not well aware of the potential benefits of efficient energy use, and this project will help address these concerns," said Mr. Tachiiri.



To tackle planning weaknesses, the project will review and update existing urban plans including the Dhaka Metropolitan Development Plan, and draw up a framework for integrated, coordinated regional development. Support will be given to help municipal agencies improve their capabilities for urban planning, tax assessment, property tax collection, human resource management and public participation.



Performance-based funding for a previous urban infrastructure project in Bangladesh was successful in meeting planned outcomes, and ADB will again link its financing to performance criteria, providing an incentive for participating municipalities to meet targets.



Technical assistance will be extended to lay the groundwork for project activities, including support for regional planning and governance improvements, the promotion of energy efficiency programs in municipalities, and detailed energy audits to pave the way for energy-efficient pumps and solar-powered lights.



The loan from ADB’s ordinary capital resources covers about 71% of the total project cost of $170 million. It has a 32-year tenor, with an 8-year grace period carrying an annual interest charge of 1%, which rises to 1.5% for the balance of the term. The Government of Bangladesh will provide counterpart support of $50 million.



The technical assistance will include a $675,000 grant from ADB’s concessional Technical Assistance Special Fund, while ADB will also administer a grant of $1.5 million from the Government of Japan-established, Asian Clean Energy Fund, held under the Clean Energy Financing Partnership Facility.



The Local Government Engineering Department is the executing agency for the project, which is due for completion in December 2016.

 

[eastwatch]

Laptop to cost only Tk 15,000

Tuesday, November 9, 2010
Front PageLaptop to cost only Tk 15,000

Staff CorrespondentTelephone Shilpa Sangstha (TSS) will start manufacturing and assembling laptop and notebook computers in the country within six months in collaboration with a Bangladeshi IT company and a Malaysian equipment manufacturer.

Under the joint venture initiative, the highest price of a laptop or notebook will be Tk 15,000.

The decision came at the weekly cabinet meeting at Bangladesh Secretariat with Prime Minister Sheikh Hasina in the chair.

The meeting approved a proposal to merge TSS Ltd, the state-run telephone equipment manufacturer, with 2M Corporation Ltd, Dhaka and TFT Technology, Penang, Malaysia for assembling and production of laptop and notebook.

TFT Technology Group is a leading original equipment manufacturer of audiovisual products and computer peripherals including LCD monitors, LCD TVs and integrated home theatre solutions while 2M Corporation is a trading house and service provider of renewable energy, hi-tech security and surveillance products.

The decision was taken with an aim to make laptop and notebook available to common people in rural areas as part of the government's pledge to build digital Bangladesh.

The joint venture company, to be named as TSS-2M-TFT, will manufacture laptop and notebook in three sizes--8.5", 9.5", 12" and the highest price will be Tk 15,000, prime minister's Press Secretary Abul Kalam Azad told reporters after the meeting.

Total capital for launching the project has been fixed at Tk 148 crore in which TSS will have 30% share, he said adding this initiative will create employment opportunities and also save foreign currencies.

Talking to The Daily Star, Mesbah Ahmed, managing director of 2M Corporation, said the laptop and notebook will be manufactured maintaining international standards. “The prices of the notebook and laptop will be less and their quality will be better than other similar items in the market.”

It would take at least six months to sell laptops and notebooks in the market because TFT would take at least two to three months time to bring machinery and set them up in the TSS factory in Tongi, he said.

TSS's existing infrastructure will be used to manufacture laptops and notebooks.

"Primarily we will be manufacturing 5,000 laptops and notebooks per month although the government's desires of supplying 10,000 units a month," said Mesbah.

The initiative was taken a year back but remained stalled due to bureaucratic tangles, he said.

“After getting the official order, we will formally invite TFT to set up the machinery,” he added.

 

[eastwatch]

Bangladesh, Uzbekistan agree to
form joint trade commission
United News of Bangladesh . Dhaka

Bangladesh and Uzbekistan have agreed to form a joint trade commission to identify and settle problems for boosting bilateral trade.

The decision came from a meeting between deputy prime minister and foreign economic affairs minister Ganiyev E Majidovich and visiting commerce minister Faruk Khan on Thursday, says a commerce ministry press release.

During the meeting, Faruk Khan accepted the proposal made by Majidovich on the formation of a joint trade commission.

Majidovich also proposed Bangladesh to set up textile mills and invest in pharmaceutical industries in Uzbekistan.

Joint secretary (export) at the commerce ministry Monoj Kumar Roy, Bangladesh Textile Mills Association president Abdul Hai Sarker, leading cotton traders and other members of the Bangladesh delegation were present in the meeting.

According to the proposed commission, both countries will prepare recommendations after reviewing different trade related issues and take steps as per the recommendations for boosting trade between the two countries.

 

[eastwatch]

Bangladesh to Purchase Tk.4000 Crore to Buy Rly Engines and Cars. Below is a report from Amader Arthaniti, a Bengali vernacular:

The Daily amaderorthoneeti - November 13, 2010

 

[CaPtAiN_pLaNeT]

UK co’s $ 800m plan to develop Mongla port

UK co's $ 800m plan to develop Mongla port

Mongla Port. Source: Monglaport - Welcome To Mongla Port

FE Report

A British company has submitted a US$ 800 million plan for the development of Mongla port to make it an efficient transit port which will cater to the need of the neighbours.

Port Evolution Management Company in its development plan said that the project will include a container terminal, an oil terminal, a water treatment plant and a special economic zone with its own 300-450 megawatt (mw) power plant.

The company Thursday made a presentation at the shipping ministry where Shipping Minister Shahjahan Khan, Secretary Abdul Mannan Howlader, British High Commissioner Stephen Evans, Chairman of Port Evolution James Sutcliffe and other officials were present.

The shipping minister said importance of Mongla port is immense as Nepal and Bhutan will use it as a transit port.

“We will evaluate the proposal and take further decision,” he said adding “it will be done through public private partnership (PPP).”

The ministry signed an agreement a year back and the company, after evaluating all the aspects, submitted the proposal.

Howlader said under the PPP, the government will provide land and logistics and other development works will be done by the private party.

Port Evo is a worldwide company specialised in Greenfield port development and its achievements include a current $ 300 million development project in Nigeria, development of Poland’s largest deep-sea container terminal in 2007 and ownership and operation of some successful ports of UK.

 

[CaPtAiN_pLaNeT]

Rahimafrooz Globatt enters China

Rahimafrooz Globatt enters China

Source: Welcome to Globatt Battery

Sayeda Akter

Rahimafrooz Globatt Ltd will export a $15 million consignment of maintenance-free batteries to China in three years. The company sent two consignments on Wednesday, the first export of such an item to China by any local company.

“We will export at least half a million units of maintenance-free automotive, tractor, and inverter batteries to Dynavolt, China, within the next three years,” said Munawar Misbah Moin, managing director of Rahimafrooz Globatt.

“We hope to earn revenues worth $15 million a year from this deal,” he said. “This is the country’s first ever export of engineered goods to China.”

“We are producing batteries designed specially for the markets of developed nations, including the US, Europe, Korea and Australia,” said Moin.

The company exported 1.75 lakh pieces of car batteries worth $5.5 million in October-June last fiscal year.

Globatt is a flagship project under Rahimafrooz’s global expansion plans that were put in place in August 2009. Its exports started in October of the same year.

The batteries, which will be free of maintenance costs, were exported to 12 countries, including all Saarc nations, except Pakistan, and Singapore, Kuwait, Qatar, United Arab Emirates, Tanzania, Angola and Namibia.

In addition, Rahimafrooz plans to export a million battery units to Australia and Europe by the end of this fiscal year.

The company’s projected revenue was around $28 million in 2009-10, which would grow to $70 million this year. It started to export to 18 countries in the South Asian and Asean regions, Middle East and Africa, and exported over 250,000 units so far, said Moin.

Earlier, Rahimafrooz doubled its annual automotive battery production capacity to 25 lakh units, Moin said, adding that the establishment of a world class manufacturing plant is a part of global strategic plans.

The Tk 110 crore project situated in Ishwardi EPZ is using the latest in technology, including business software solution applications and services. It went into production in May 2009.

The project received the country’s first-ever equity investment from Frontier Fund, a local partner of Brummer and Partners, Sweden’s largest hedge fund manager, in January 2009.

Founded in 1954, Rahimafrooz is the pioneer in producing industrial batteries, solar power and IPS (instant power system) in the country. The company also spearheaded the export of batteries to more than 40 countries.

Currently, the group has seven operating companies, three other business ventures and a non-profit social enterprise.

sayeda@thedailystar.net

 

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Dutch ship breaker plans green facility

Dutch ship breaker plans green facility


ECONOMIC REPORTER

A Dutch-Bangladeshi joint venture has decided to build a ship breaking unit at Chittagong using environmentally friendly practices, with its investors saying they consider Bangladesh the best place to set it up after carrying out a study on the location. Doebren Mulder, one of the patent owners of the Greendock BV project, has already met the minister for Environment and Forests, industries minister, delegation of European Commission, ship breakers in Chittagong and some new potential investors in the technology on his recent visit, says a press release.

The project will cost 50 million Euro and take one year to begin its operations, Mulder said.

He added that the first Grenndock site to be set up in Bangladesh was much cheaper than the original Ecodock site in Europe.

Mulder said, “We just finished a study with all recent figures and statistics.

Our experts are working to prepare the final report to share its findings with different local and international
stakeholders.”

Greendock is headquartered in Groningen.

Mulder said the steel infrastructurefor each dismantling site is to be built locally in low-cost Asian countries.

The concept involves floating pre-cleaned panamax-size ships into a specially-built graving dock and onto a steel pontoon of around 20,000 cbf, which is then raised by pumping in air. Mulder said that ships could then be cut into 20 pieces, each of around 500 tones, which are then wheeled to a dismantling site for further cutting.

Greendock claimed its system could dismantle vessels in 15 days, as compared with five to eight months for ships that are beached.

The company said that dismantling in a closed environment would reduce environmental pollution.

Mulder said that the feedback from the group of Scandinavian investors has been positive.

The investors have agreed to pay around EURO 66 per ton for pre-cleaning and then a fee similar to that earned by brokers for the dismantling.

Greendock would also receive commission for finding a buyer of the steel, proceeds of which go the vessel owner.

Initially, interest in the concept came from China but the investors then examined sites in Bangladesh and Thailand.

In Bangladesh the company has been registered as a Joint Stock Company with the Ministry of Commerce and a joint venture partnership has been set up in the name of “GreenDock Bangladesh Limited”.

Having its set up in Chittagong, a dynamic well trained and equipped Greendock team is working to realize the project step by step, Qumrul Islam Chowdhury, resident director of Greendock Bangladesh Ltd in Chittagong said, “Greendock is aiming to develop a database of workers who are now jobless.

We are also developing a complete plan with the help of French and Dutch experts to put a new know how.”

 

[CaPtAiN_pLaNeT]

Tk 700 crore deposited in Gas Development Fund

Bangladesh Sangbad Sangstha (BSS)

DHAKA, Nov 15 (BSS) – A significant amount of money has been deposited in `Gas Development Fund’ to carry out vigorous gas exploration, seismic and well augmentation work by the national gas and oil companies.

The fund was formed as per an order by Bangladesh Energy Regulatory Commission (BERC)) issued on July 13, 2009 to boost up gas exploration work by the national companies.

This is a separate fund for the energy sector from the regular budgetary allocation. The BERC in its order said that the fund must be utilised exclusively for gas sector development that includes exploration, production, transmission and distribution.

“About Taka 700 crore has been deposited in this fund so far. We need a policy guideline to use it by the national companies,” BERC Chairman Yusuf Hossain told BSS today.

BERC is the monitoring authority to oversee the utilization of this fund.

According to the BERC, it imposed a condition on gas price hike application by Petrobnagla as it observed that Petrobangla pays IOC’s (international oil companies) US$ 480 million per year as gas bill. It also observed that the IOC’s gas output surpassed that of the local’s as their combined gas output reached over 52 percent of total gas production although the country has five gas and oil exploration companies.

“We did not like to see a skeleton Petrobangla that gives all its milk to the IOC’s. We want to see that it will take measures to strengthen our own companies to carry out the risky exploration job, so BERC imposed a condition on them when they want to hike gas price”, the BERC chairman said.

Petrobangla in June 2008 applied to the commission for allowing it to increase gas prices by 65 percent at consumer level.

BERC conducted public hearing on it and increased gas price from last month. According to that verdict, Petrobangla increases gas price by 10 to 15 percent and creates this fund from the increased price of gas.

“We are formulating the policy guideline to use the money of this fund for strengthening our own gas exploration companies. Hopefully, we could start our journey very shortly,” Secretary of the Energy Division Mohammad Mejbahuddin told BSS.

Earlier, the energy sector was given Taka 3,500 to 4,000 crore per year from the budget which was very little for this sector to carry out vibrant exploration work or to do intensive seismic job.

 

[CaPtAiN_pLaNeT]

Turkey eyes $3b trade with Bangladesh

Turkey eyes $3b trade with Bangladesh

Prime Minister Sheikh Hasina speaks at a bilateral meeting with visiting Turkish Premier Recep Tayyip Erdogan at the Prime Minister's Office in Dhaka yesterday. Photo: PMO

Star Business Report

Turkish Prime Minister Recep Tayyip Erdogan has said bilateral trade between Turkey and Bangladesh will cross the $3 billion mark by 2015.
In the first 10 months of 2010, bilateral trade increased to $742 million from $648 million in 2009, despite the global financial crisis.

When the incumbent Turkish PM’s party assumed power in 2002 through a general election, two-way trade between Bangladesh and Turkey was only $47 million.

“Our target is to increase the bilateral trade to $1 billion at the end of the year and $3 billion at the end of 2015. The target is achievable, because we have determination,” said Erdogan yesterday at a luncheon meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Dhaka Sheraton Hotel.

He suggested Bangladesh utilise Turkish expertise in construction and infrastructure development as his country boasts skills to carry out those jobs.

Turkey achieved 11 percent economic growth in the first six months of this year, ranking number one in Europe and third globally, he said.

“The rate of unemployment has been increasing worldwide in the wake of the global recession, but Turkey successfully cut its unemployment rate by maintaining significant economic growth,” the Turkish PM said.

Tourist arrivals in Turkey are increasing while neighbouring Spain and Greece have been losing the numbers, Erdogan added.

Erdogan added that the most important asset of Bangladesh is the country’s young and dynamic people, which Bangladesh should utilise for achieving overall development.

He urged the government to enforce the trade and investment protection agreement signed between the two countries in 1987 to boost trade.

At the meeting, Finance Minister AMA Muhith said mutual cooperation and investments between the two countries must be enhanced as Turkey has already made considerable advancements in this regard.

“Direct flights between Turkey and Bangladesh are all set to begin next month,” he added.

FBCCI President AK Azad said major export items from Bangladesh to Turkey include knitwear, woven garment products, raw jute and jute goods, hides and skins, crockery, cutlery and handicrafts.

On the other hand, the goods imported from Turkey include machinery and mechanical appliances, base metal, textile and textile articles, vehicles, aircraft, vegetable products, mineral products, plastic and rubber products and prepared foodstuff.

The Turkish investors have opportunities to invest in textiles, tourism, energy, construction, natural gas-based industries, telecommunication, fisheries and agro-based industries in Bangladesh, he said.

BILATERAL TALKS

Emerging from bilateral talks yesterday, the Bangladesh and Turkey prime ministers held a joint press conference.

Erdoðan said his government and the private sector of Turkey will continue to offer and provide support and assistance to help Bangladesh emerge as a mid-income country by 2021, according to news agency UNB.

“There is huge potential to increase the trade up to a minimum $3 billion by 2015,” he said.

About the direct Dhaka-Istanbul air-link, he said it would strengthen cooperation between the two countries in various sectors, especially tourism.

Erdoðan hoped the economic and cultural collaboration would be further strengthened in the future.

He also said the Turkish government is interested to see an increase in the number of Bangladeshi students studying in Turkish educational institutions at graduation and under-graduation levels.

Prime Minister Sheikh Hasina urged her Turkish counterpart to encourage Turkish investors to invest in infrastructure development, energy production, river dredging, machinery and equipment plants, ICT, tourism, textile and particularly agro-based industries.

 

[CaPtAiN_pLaNeT]

Turkey eyes $3b trade with Bangladesh

Turkey eyes $3b trade with Bangladesh

Prime Minister Sheikh Hasina speaks at a bilateral meeting with visiting Turkish Premier Recep Tayyip Erdogan at the Prime Minister's Office in Dhaka yesterday. Photo: PMO

Star Business Report

Turkish Prime Minister Recep Tayyip Erdogan has said bilateral trade between Turkey and Bangladesh will cross the $3 billion mark by 2015.
In the first 10 months of 2010, bilateral trade increased to $742 million from $648 million in 2009, despite the global financial crisis.

When the incumbent Turkish PM’s party assumed power in 2002 through a general election, two-way trade between Bangladesh and Turkey was only $47 million.

“Our target is to increase the bilateral trade to $1 billion at the end of the year and $3 billion at the end of 2015. The target is achievable, because we have determination,” said Erdogan yesterday at a luncheon meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Dhaka Sheraton Hotel.

He suggested Bangladesh utilise Turkish expertise in construction and infrastructure development as his country boasts skills to carry out those jobs.

Turkey achieved 11 percent economic growth in the first six months of this year, ranking number one in Europe and third globally, he said.

“The rate of unemployment has been increasing worldwide in the wake of the global recession, but Turkey successfully cut its unemployment rate by maintaining significant economic growth,” the Turkish PM said.

Tourist arrivals in Turkey are increasing while neighbouring Spain and Greece have been losing the numbers, Erdogan added.

Erdogan added that the most important asset of Bangladesh is the country’s young and dynamic people, which Bangladesh should utilise for achieving overall development.

He urged the government to enforce the trade and investment protection agreement signed between the two countries in 1987 to boost trade.

At the meeting, Finance Minister AMA Muhith said mutual cooperation and investments between the two countries must be enhanced as Turkey has already made considerable advancements in this regard.

“Direct flights between Turkey and Bangladesh are all set to begin next month,” he added.

FBCCI President AK Azad said major export items from Bangladesh to Turkey include knitwear, woven garment products, raw jute and jute goods, hides and skins, crockery, cutlery and handicrafts.

On the other hand, the goods imported from Turkey include machinery and mechanical appliances, base metal, textile and textile articles, vehicles, aircraft, vegetable products, mineral products, plastic and rubber products and prepared foodstuff.

The Turkish investors have opportunities to invest in textiles, tourism, energy, construction, natural gas-based industries, telecommunication, fisheries and agro-based industries in Bangladesh, he said.

BILATERAL TALKS

Emerging from bilateral talks yesterday, the Bangladesh and Turkey prime ministers held a joint press conference.

Erdoðan said his government and the private sector of Turkey will continue to offer and provide support and assistance to help Bangladesh emerge as a mid-income country by 2021, according to news agency UNB.

“There is huge potential to increase the trade up to a minimum $3 billion by 2015,” he said.

About the direct Dhaka-Istanbul air-link, he said it would strengthen cooperation between the two countries in various sectors, especially tourism.

Erdoðan hoped the economic and cultural collaboration would be further strengthened in the future.

He also said the Turkish government is interested to see an increase in the number of Bangladeshi students studying in Turkish educational institutions at graduation and under-graduation levels.

Prime Minister Sheikh Hasina urged her Turkish counterpart to encourage Turkish investors to invest in infrastructure development, energy production, river dredging, machinery and equipment plants, ICT, tourism, textile and particularly agro-based industries.