Bangladesh Economy: News & Updates

[eastwatch]

Lotto inks licensing deal with Express Leather

Tuesday, November 30, 2010
BusinessLotto inks licensing deal with Express Leather

Italian sportswear company Lotto has recently signed a ten-year licensing deal with local Express Leather Products Ltd in Dhaka.

The deal will allow Express to produce, distribute and retail Lotto-branded footwear, accessories in Bangladesh from January. Lotto also plans to give the same authority for apparel to the local company later.

Commerce Minister Faruk Khan, Italian Ambassador (designate) Giorgio Guglielmino and President of Bangladesh Garment Manufacturers and Exporters Association Abdus Salam Murshedy were present at the occasion.

The minister said it is a win-win situation for the country as Lotto spread its market here and the local partner can benefit from technology transfer.

“I hope Lotto will sponsor the local football and other sports team to develop the standard of games.”

“We consider Bangladesh and important emerging market with great potential in the Asian region,” said Luca Tomat, business unit director Asia Pacific of Lotto Sports Italia.

Tomat said Lotto started business in Bangladesh with a target of grow-ing at a rate of 22 percent in the Asia Pacific region.

Kazi Jamil Islam, managing direc-tor of Express Leather, said: "I'm confident that the relationship with Lotto will be fruitful."

Kazi Salahuddin, president of Bang-ladesh Football Federation,

also spoke.

Lotto Sports is headquartered in the shoe district of Montebelluna of Veneto region. It sells products to over 80 countries through independent sports-article stores, chain stores and 300 mono brand stores.

 

[CaPtAiN_pLaNeT]

Govt to execute big projects with supplier's credit
Ministries asked to prepare list of potential projects

Govt to execute big projects with supplier's credit

FE Report

The government has decided to take supplier's credit for implementing development projects as the planning commission asked the ministries to prepare list of projects to be implemented by hard-loan, officials said.

Planning ministry officials said the commission at a meeting Thursday directed the ministries to prepare list of potential projects within next week.

Following a recent letter from the finance minister AMA Muhith, planning minister AK Khandaker sat with the commission officials for working out ways of taking the supplier's credit for implementing development projects.

A senior planning ministry official said the planning commission has decided to take the hard-loan to expedite implementation of large projects under the current annual development programme (ADP) as those have been facing fund crisis.

"After getting the project lists by next week, we will sit again to assess the necessity of the supplier's credit for executing proposed projects. Then we will ask the ministries to go for further action," he said.

Projects in different sectors like power, energy, transport, telecommunication and the schemes under the public-private partnership (PPP) would be executed through the suppliers' credit, he said.

"For the interest of the nation the government has decided to take suppliers' credit for implementing development projects," AK Khandaker said.

Supplier's credit is a financing arrangement under which an exporter extends credit to an importer to finance its purchase. Usually, the importer pays a portion of the contract value in cash and issues a promissory note or accepts a draft as evidence of his obligation to pay the balance over a period of time.

The credit has higher interest rate from 3.0 percent to 12 per cent with lower repayment period from five to 20 years.

But the interest rate for soft borrowing, normally available from development partners, is below 1.0 per cent and payment time varies from 22-40 years.

Earlier the government planned to lessen hard-term borrowing as it asked the project implementing agencies and the government's fund mobilising agency -- economic relations division (ERD) -- to take soft-loan from donors.

Donor agencies such as the World Bank and International Monetary Fund have reservations about suppliers' credit as it charges high interest.

From financial year 2002 to FY2005, the government received nearly $700 million in suppliers' credit, which dropped to only $50 million during FY2006 to FY2009, ERD statistics showed.

Another senior planning commission official said as the government is trying to implement all the 916 projects under the current Tk385 billion ADP in time it needs huge foreign assistance to cut dependency on inadequate local resources.

The government this year earmarked 23 projects under the PPP in the ADP where it needs billions of dollars investment, he said.

The government targets Tk197 billion fund supply from its own resources for implementing 916 projects in the current ADP.

UNB adds: Planning Minister AK Khandker said the government is planning to revise the ADP in next January.

He said some projects might come soon under the Public Private Partnership (PPP) as they are good response.

On the ADP implementation progress in the first four months of the current fiscal that reached 14 percent, the Planning Minister said although the percentage is less than that of the corresponding period of previous fiscal (2009-10), but the expenditure was higher.

Meanwhile, General Economics Division (GED) member Prof Shamsul Alam said that suppliers' credit should be discouraged unless it becomes indispensable. "Such tied credits sometimes become too expensive."

 

[Al-zakir]

Beximco Pharma entering US market


Fri, Dec 3rd, 2010 9:15 pm BdST

Dial 2000 from your GP mobile for latest news
Dhaka, Dec 3 (bdnews24.com)—Beximco Pharmaceuticals has joined forces with an American company to launch four drugs in the US market in the next three years.

Beximco Pharma recently signed a strategic manufacturing, supply, and product development agreement with Adamis Pharmaceuticals and the companies plan to introduce four generic respiratory drug formulations.
The two companies will co-develop certain generic formulations, some of which Beximco currently produces for the European market.

Adamis will be responsible for Food and Drug Administration regulatory approval and marketing in the US.

Beximco Pharma managing director Nazmul Hassan said they want to work closely with Adamis to capitalise on the generic drug opportunities in the US market. The Bangladesh pharmaceuticals giant is eyeing to achieve sustainable growth through creating long-term shareholder value.

Adamis Pharma president and CEO Dennis Carlo said the two companies can benefit from the synergies that exist between both organisations.

Beximco is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (API's) in Bangladesh. They employ over 3,000 employees and have state-of-the-art manufacturing facilities and more than 400 products.

Beximco is in negotiations with GlaxoSmithKline, Novartis and Watson Pharmaceuticals for manufacturing medicines under licence for sale in developing markets and possibly in the West.

Beximco also reported a 21 percent year-on-year increase in revenue of Tk 4.87 billion ($69.6 million) in 2009, which was driven largely by exports and the introduction of new products.

The share price of Beximco Pharma at the Dhaka stocks closed at Tk 144.60 on Thursday.

bdnews24.com/ssz/mr/bd/2050h

 

[CaPtAiN_pLaNeT]

Growth to average 5.8 pc in next five years : BMI
Nezam Uddin

Growth to average 5.8 pc in next five years : BMI

Bangladesh will achieve an average GDP growth of 5.8 per cent over the next five years amid continued volatility in politics and poorly capitalised banking sector posing main risks. The projection is, however, much lower than the official estimates.

London-based Business Monitor International (BMI) released this projection in its latest (Q4 of 2010) Bangladesh Business Forecast Report for the fiscal year 2012 through 2015.

BMI reported that weaker remittance growth and sluggish demand for Bangladeshi textiles in G8 markets will bind the GDP growth to this figure.

"One way to improve Bangladesh's growth prospects will be to boost the business environment through battling corruption and increasing power output", Business Forecast Report said.

Referring to the country's increasing influence in regional politics in South-East Asia along with India and China, BMI observed China would invest heavily in the country to increase its influence.

BMI also pointed to Bangladesh's recent move to try war criminals would increase political tension. Besides, 'lingering threat of Islamist terrorist' also increased short-term political risk ratings in the report.

The report also projected a potential shrink in current account surplus in FY 2010-11 and FY 2011-12 as trade deficit widens and remittance growth slows. Remittance is still Bangladesh's the key to economic lever driving domestic consumption and bolstering balance of payments position.

"We expect stagnant remittance growth to have a larger impact on economic growth due to reduced private consumption growth", BMI report said.

Pointing to major problems of Bangladesh, the report said, "The country's main problem lies in poor institutions, which placed in it same bench of Afghanistan and some African countries".

"With investment in the power sector still far from adequate, we expect electricity shortages to continue to hamper Bangladesh's business environment for the foreseeable future", the report said presenting an ultimate grim picture of energy crisis of the country.

According to BMI's business environment survey, Bangladesh is placed in 135th place among 167 countries.

BMI is a leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 175 countries and 22 industry sectors.

 

[CaPtAiN_pLaNeT]

I am deeply sad after reading the news..:S:S:S... as so far what we are hearing is that bangladesh is likely to achieve 8% growth by 2013.... n 10% in between 2015-1018.... if this news indeed true then what is becoming quite apparent that current government is deceiving people with false hope and stat... this is really disgraceful... on the other hand this could be this projection is false... just it is made to demonize Bangladesh... with certain agenda... as considering the fact Bangladesh is likely to get a gdp growth 6.3 to 6.8% and regarding remittance Bangladesh is planning to increase remittance to 30 billion dollar by 2015...so even if remittance does not increase it should not go down... that is what I believe... Hope the later 1 is true....

 

[CaPtAiN_pLaNeT]

self delete

 

[Skies]

GDP growth to fall to 5.83 per
cent: BBS estimate
United News of Bangladesh . Dhaka

Belying the government optimism, the country’s GDP growth in the last fiscal year is likely to fall below 6 per cent, as the revised estimate of Bangladesh Bureau of Statistics shows the growth at 5.83 per cent.
As a result, the country’s GDP growth is likely to maintain its downward trend for the 3rd consecutive year since 2006-07 fiscal. Besides, the growth is also likely to fall below 6 per cent for two successive years.
According to the latest revised estimate of BBS, the GDP for 2009-10
fiscal stood at Tk 3,60,046 crore at constant market prices.
The sectoral growth of GDP at constant prices showed that agriculture and forestry achieved a growth of 4.87 per cent; fishing 3.98 per cent; mining and quarrying 10.05 per cent; manufacturing 5.73 per cent; electricity, gas and water supply 6.87 per cent; construction 5.85 per cent; wholesale and retail trade 6.10 per cent; and hotel and restaurants 7.62 per cent.
Besides, transport, storage and communication achieved a growth of 7.20 per cent; financial intermediations 8.35 per cent; real estate, renting and business activity 3.84 per cent; public administration and defence 9.64 per cent; education 9.29 per cent; health and social works 8.10 per cent; and community, social and personal services 4.75 per cent.
Earlier, the BBS in its provisional estimate showed the GDP growth in fiscal 2009-10 at 5.54 per cent.
The government, however, earlier projected a 6 per cent growth in the last fiscal. Finance minister AMA Muhith and Bangladesh Bank governor Atiur Rahman also expressed their optimism that the GDP growth would reach 6 per cent in the year.
According to the BBS, the GDP growth in 2000-01 was 5.30 per cent but came down to 4.40 per cent in the 2001-02 fiscal. The growth, however, increased to 5.30 per cent in the 2002-03 fiscal and reached 6.30 per cent in 2003-04.
The GDP growth was 6 per cent in the 2004-05 fiscal; 6.63 per cent in 2005-06; 6.43 per cent in 2006-07; 6.19 per cent in 2007-08; and 5.74 per cent in the 2008-09 fiscal.
Analysing the revised BBS statistics, it was found that the gross national income for 2009-10 fiscal stood at Tk 7,58,683 crore, population reached 146.1 million, per capita GDP Tk 47,405 and per capita GNI Tk 51,945.
However, the provisional BBS estimate for 2009-10 fiscal showed total cereal production at 332.26 lakh tonnes including aus production at 17.09 lakh tonnes, aman at 122.07 tonnes, boro at 183.41 tonnes and wheat at 9.69 lakh tonnes while the potato production at 81.68 lakh tonnes.
It also estimated that the share of consumption of GDP is 81.01 per cent - private 75.60 per cent
and government 5.41 per cent; investment 24.96 per cent - private 20.19 per cent and public 4.77 per cent; export of goods and services 18.53 per cent; import of goods and
services 24.93 per cent; gross domestic savings 18.99 per cent and gross national savings 28.75 per cent.
Categorising GDP by expenditure at current prices, the domestic demand stood at Tk 7,33,705 crore; consumption Tk 5,60,879 crore; investment Tk 1,72,826 crore; GDP Tk 6,92,379 crore; net factor income from abroad Tk 64,772 crore; GNI Tk 7,57,152 crore; net current transfer from abroad Tk 2,792 crore; gross disposable national income Tk 7,59,944 crore; gross domestic savings Tk 1,31,500 crore; and current account balance Tk 23,299 crore.


Business

 

[Skies]

I am deeply sad after reading the news..:S:S:S... as so far what we are hearing is that bangladesh is likely to achieve 8% growth by 2013.... n 10% in between 2015-1018.... if this news indeed true then what is becoming quite apparent that current government is deceiving people with false hope and stat... this is really disgraceful... on the other hand this could be this projection is false... just it is made to demonize Bangladesh... with certain agenda... as considering the fact Bangladesh is likely to get a gdp growth 6.3 to 6.8% and regarding remittance Bangladesh is planning to increase remittance to 30 billion dollar by 2015...so even if remittance does not increase it should not go down... that is what I believe... Hope the later 1 is true....

- Beliveing our any politician, and (o vi) that also any AL, lol. It's very easy to shout in the meeting and seminar that we are doing it, we are doing it and we will do it.

- Why whold a London-based Business Monitor International (BMI) demonize Bangladesh?

-Hmmm....I can remember this one (post#788): http://www.defence.pk/forums/1076407-post788.html

 

[CaPtAiN_pLaNeT]

- Beliveing our any politician, and (o vi) that also any AL, lol. It's very easy to shout in the meeting and seminar that we are doing it, we are doing it and we will do it.

- Why whold a London-based Business Monitor International (BMI) demonize Bangladesh?

-Hmmm....I can remember this one (post#788): http://www.defence.pk/forums/1076407-post788.html

Govt mulls 3rd seaport in Kuakata: PM

Govt mulls 3rd seaport in Kuakata: PM

TOKYO, Dec 2 (UNB): Prime Minister Sheikh Hasina has firmly said Bangladeshi soil will never be used for any terrorist or violent activities.

Hasina made the remark to a group of Bangladeshi journalists at her hotel suit Wednesday evening.

She said as part of the massive infrastructure development programmes, the government is thinking to set up third seaport in Kuakata.

Hasina mentioned the Japan government's commitment to provide Bangladesh additional US$ 100 million for construction of the Padma Bridge.

She said after long struggle, democracy has been restored in the country and the people have reposed a great responsibility on the present government to ensure their wellbeing.

"We have been able to restore peace in society. None will be allowed to use the soil of Bangladesh to launch any terror or violent activities," the Prime Minister added.

The Prime Minister described her tri-nation visit as very successful and said all the friendly countries of Bangladesh have assured her of continuing their supports and assistances to expedite national development.

 

[integra]

But there's a big but here and that is the gov is only thinking 'bout the project that means beauracratic lobbying (2yrs) feasibility study(3yrs) pre construction bid (1yr) construction phase 4yrs in total we get 10yrs.

Wait I don see any port because of the big but,
They should concentrate on decentralizing dhaka before anything which means better domestic infrastructure and IT based social service and nothing else.

 

[TopCat]

I am deeply sad after reading the news..:S:S:S... as so far what we are hearing is that bangladesh is likely to achieve 8% growth by 2013.... n 10% in between 2015-1018.... if this news indeed true then what is becoming quite apparent that current government is deceiving people with false hope and stat... this is really disgraceful... on the other hand this could be this projection is false... just it is made to demonize Bangladesh... with certain agenda... as considering the fact Bangladesh is likely to get a gdp growth 6.3 to 6.8% and regarding remittance Bangladesh is planning to increase remittance to 30 billion dollar by 2015...so even if remittance does not increase it should not go down... that is what I believe... Hope the later 1 is true....

GDP growth will be more than 7.5% this year. Take my word. Import up 43% export up 39% for the first five months. Padma bridge, deep sea port, express way, airport all will start next year which will have a top down chain effect in the overall economy. Also a lot of power startions will start commissioning next year. I believe we dont have to wait till year 2013 for 8% growth rate regardless what BMI says.

 

[CaPtAiN_pLaNeT]

Govt to finalise draft 5-yr plan by mid-Dec
Some macro-economic indicators to be revised

Govt to finalise draft 5-yr plan by mid-Dec

FHM Humayan Kabir

The government would finalise the draft five-year plan by the middle of this month, revising some macro-economic indicators in line with the Finance Ministry's upward resources income projection, officials said Saturday.

Planning Ministry officials said they have taken the move to recast the sixth five-year plan, as the Finance Ministry has recently sent them a fresh resources income projection.

"Finance Ministry has recently given us a new projection of upward local and foreign resources income. Based on it there can be some minor changes at the macro-economic indicators in the drafted five-year plan," member of General Economics Division (GED) under the Planning Ministry Prof Shamsul Alam told the FE.

"We will sit with the Finance Ministry and National Board of Revenue (NBR) later this week to review the projection and finalise the macro-economic indicators for the draft development document."

"Then we will discuss with top government policymakers within this month to finalise the country's sixth development plan," Prof Alam added.

The GED has already prepared the sixth five-year plan in a bid to slash the country's poverty by 10 per cent and boost the national economy at an average rate of 7.3 per cent during its five year implementation period up to FY 2015.

Planning Ministry officials said the country's development plan also targets to raise the number of people engaged in industrial jobs by eight per cent from the present 17 per cent of the population within its final implementation period of June 2015.

The government last year decided to reinstate the five-year development plan of Bangladesh from the FY 2010-11 after eight years of discontinuation since 2002.

The GED has been assigned with the task of framing the document, which would guide the government agencies on continuing development works in the next five year.

A panel of economists, headed by senior economist Prof Wahiduddin Mahmud, has been assisting the government to devise the national development plan. A steering committee, led by Planning Minister A K Khondaker, is working to monitor its preparation works.

A senior Planning Ministry official said the development plan would facilitate poverty alleviation from present 36 per cent to 26 per cent, and upgrade the industrial employment from current 17 per cent of the population to 25 per cent.

He said: "We are targeting to boost the per capita income of the country to US$1,000 by the year 2015."

In the draft report, the Planning Ministry has set a goal to achieve cent per cent literacy rate by the FY 2015. Since Bangladesh's electricity coverage is very low in the sub-continent, the plan also aims to bring cent per cent of the population under electricity coverage by 2021. The ailing tele-density of the country would also be raised to 70 per cent by the FY 2015.

GED member Prof Shamsul Alam said the proposed sixth five-year plan would be different from the previous five five-year plans.

"The document will not only consist the development plans, it will also have some policy guidelines for boosting the country's economy and making the nation a hunger-free one," he said.

The five-year plan which would be followed for the country's development between the FY 2011 and FY 2015 would be finalised in line with the election manifesto of the Awami League-led government.

 

[Skies]

GDP growth will be more than 7.5% this year. Take my word. Import up 43% export up 39% for the first five months. Padma bridge, deep sea port, express way, airport all will start next year which will have a top down chain effect in the overall economy. Also a lot of power startions will start commissioning next year. I believe we dont have to wait till year 2013 for 8% growth rate regardless what BMI says.

Assumption:

Padma bridge, deep sea port, express way, airport will take around 5 or 6 or 7 years to be completed and then to contribute in the GDP. And these all are infrastructural developments. I think among them deep sea port and Padma bridge will increase our GDP. But express way and airport may not bring change in GDP. How many flights and how much revenue will increase actually if we will get a new airport. Is there any right calculation?

And what about any increase in current industrial production and export which are more important factors in GDP growth than these future infrastructural developments?

 

[CaPtAiN_pLaNeT]

Adamis announces Beximco Pharma deal
Posted on December 3, 2010

Adamis announces Beximco Pharma deal

Adamis announces Beximco Pharma deal
ECONOMIC REPORTER

Adamis Pharmaceuticals Corporation announced the signing of a strategic manufacturing, supply, and product development agreement with Beximco Pharmaceuticals Ltd. Of Bangladesh from its San Diego, USA, headquarters. Adamis and Beximco will initially target to introduce four separate drugs in the US over the next three years. The focus of these drugs will be in the areas of treatment of allergy and asthma which represent multi-billion dollar markets. In addition, the companies will co-develop certain drugs, some of which Beximco currently produces for the European market. Adamis will be responsible for regulatory approval and sales in the US.

Dr. Dennis Carlo, President and CEO of Adamis, stated, “This agreement moves us closer to the goal of building a company that creates excellent shareholder value, is profitable and has a pipeline that permits substantial long term growth. Since Beximco’s current drug portfolio ranges from allergy to oncology, both companies can capitalize on the notable synergies that exist between our organizations. I believe this strategic partnership will bring a great deal of depth to our Specialty Pharmaceutical business.” Dr. Carlo added, “When combined with our recently announced acquisition of three novel cancer compounds and a $10 million private placement, we are now poised to make significant progress and advance both the Specialty Pharmaceuticals and Cancer Therapeutics sides of our business.” Some of the targets before joint effort, scheduled for next few months, include publication and announcement of the completion of a successful Phase III trial, as well as completing the license for an important cancer vaccine platform technology.

 

[CaPtAiN_pLaNeT]

State-run Pragati starts assembling Pajero jeeps
Posted on December 3, 2010

State-run Pragati starts assembling Pajero jeeps

State-run Pragati starts assembling Pajero jeeps
Each to be sold at Tk 60 lakh, import price now Tk 1.2 crore
Bss, Chittagong

Pragati Industries Limited (PIL), the lone state-run automobile assembling industry of the country, has started assembling Mitsubishi’s most modern Pajero jeep in Bangladesh.

PIL has already completed assembling of two jeeps in its own plant in Chittagong on experimental basis and is likely to go for commercial production soon.

As part of a five-year agreement, signed between Managing Director of PIL Engineer Jahir Uddin Chowdhury and Corporate General Manager of Mitsubishi’s Asia and ASEAN offices Zenichiro Nichina, PIL started assembling the Mitsubishi Jeep in Bangladesh.

The Mitsubishi authorities has also expressed their keenness to assist in setting up of a plant in Bangladesh for manufacturing spare parts of Mitsubishi jeep.

With this achievement of the state-owned industry, the customers in future will have the scope to buy a worldwide popular ‘Pajero Sports Jeep’ at around Tk 60 lakh whereas its present imported price is Tk 1.2 core.

Jahir Uddin Chowdhury told the news agency that a four-member engineers team of Mitsubishi Corporation (MC) had imparted training to Bangladeshi motor workers on assembling sports jeeps from October 18 to November 5 this year.

Chowdhury also said they had successfully assembled two Pajero jeeps and would assemble 10 more in between January and March next year.

“We will start large scale commercial production after successfully selling these 10 jeeps in the Bangladesh market, Jahir said adding that after assembling a jeep here, it would be available at only Tk 60 lakh though its present market price is Tk 1.2 crore.

Asked about its quality, he said the MC authority is determined to maintain their standard and practically assessed the quality of PIL three times through sample tests before work orders.

“No internationally reputed company wants to undermine the quality of its products wherever it is assembled,” the MD asserted.

Mitsubishi engineers after visiting the PIL in July, 2009, expressed satisfaction over its overall condition and working atmosphere.

A four-member Bangladeshi delegation from PIL including its MD visited Mitsubishi Pajero Manufacturing industry in Thailand on September 9 last year and interacted in details on different technical and infrastructure aspects at PIL.

Reciprocally, another four-member Mitsubishi delegates led by its Asia Region manger Kajuhidi Ogata also visited the Pragati Industry.

The then Gandhara Industries, now PIL, came into being with logistics supports of General Motors of England on January 20 in 1966 near Barabkunda, Chittagong on Dhaka-Chittagong highway.

After the independence, Bangladesh government acquired the industry and renamed it Pragati Industries Limited (PIL), which was then enlisted with Bangladesh Steel and Engineering Corporation (BSEC).

PIL, which earned a profit of Tk 16.5 crore last fiscal year, has an annual capacity of assembling 1,500 vehicles like bus, truck, jeep and private car.