Bangladesh Economy: News & Updates

[neolithic]

Japan to set up space industry in Bangladesh

dhaka, Dec 29 (bdnews24.com) – Japan has decided in principle to set up space industry in Bangladesh. Japanese ambassador to Bangladesh Shiro Sadoshima told this to environment and forest minister Hasan Mahmud when she called on him at his Secretariat office on Thursday, said an official release. The Japanese envoy told the minister that Japan is keen to set up a heavy industry in Bangladesh to manufacture instruments that are used in the spaceships, including all types of devices required to launch satellites in the space. The Japanese government will observe the 40th anniversary of its diplomatic relationship with Bangladesh in March 2012 and a weeklong function will be organised in this regard, the ambassador told the minister. Mahmud praised the initiative and requested the Japanese government to raise its investment in Bangladesh. In response, Sadoshima said the Japanese investors will attend the weeklong function marking the 40th anniversary of Japan-Bangladesh diplomatic relationship. The environment and forest minister sought Japanese assistance in Bangladesh Climate Change Resilience Fund (BCCRF), formed to combat the risks of climate change, installation of Japanese industries in Rangunia EPZ (Export Processing Zone) and in construction of a tunnel under Karnaphuli river to connect the southern part of the Chittagong with the port city as well as to facilitate communication with Cox's Bazar. Sadoshima assured of ample Japanese assistance.

 

[neolithic]

Walton-Japan to venture jointly

15 Nov 2012

DHAKA: Walton High-tech Industries Limited, the leading electronics company of the country, is about to form joint venture with Japan.

Recently an 8-member Japanese delegation led by Nikaho Mayor Tadanaga Yokoyama visited Walton factory at Chandra of Gazipur.

Japan External Trade Organization-JETRO coordinated the visit of the Japanese delegation to the Walton factory.

The delegation comprised of Ken-Ichiro Miyama, Specially Appointed Associated Professor of Graduate School of Business of Rikkyo University, Toshiharu Sasaki, Director of Commerce and Industry Section of Nikaho City Office, Katsumi Shindo, Managing Executive Officer and General Manager of Sales Management Division of The Hokuto Bank Ltd, Noriaki Naganuma, Representative Director of Naganuma Works Inc., Tatsuhiro Itoh, Director of Naganuma Works Inc, Takenori Matsumoto, General Manager of Sanwa Seiko Co. Ltd and Kazuhiko Tahata, Executive Officer of The Akita Bank Ltd.

The Japanese delegation went round different manufacturing units of refrigerators, air-conditioners and motorcycles. They praised the progress of a developing country like Bangladesh in manufacturing such home appliances and automobiles.

They expressed interest to invest in Bangladesh availing the country’s skilled manpower, cheap labour cost, huge domestic market, easier access to international market, and above all the existing friendly relationship between Bangladesh and Japan.

The Japanese delegation also invited a delegation from Walton to visit Japan as early as possible and hold necessary talks to give their interest of investment a final shape.

 

[Skallagrim]

Dhaka Saturday November 17 2012

Dhaka-Chennai-Male direct air link opened

The inaugural flight of 'Maldivian', the national flag carrier of the Maldives, touched down at Hazrat Shahjalal International Airport, Dhaka Thursday, establishing the first direct air connectivity between Dhaka, Chennai and Male. Minister of State for Defense and National Security of the Maldives Sheikh Ilyas Hussain Ibrahim travelled to Dhaka on the first flight, Q2-550, said a press release Friday. Maldivian, a full-service airline, owned and operated by Island Aviation Services Limited, will operate an Airbus A320 aircraft with a configuration of 14 business class, 18 premium economy and 120 economy class seats on the Dhaka-Chennai-Male route on Tuesdays, Thursdays and Saturdays.

Dhaka-Chennai-Male direct air link opened

 

[Gyp 111]

UAE offers to invest in deep-sea port

Dhaka, Nov 21 (bdnews24.com)—The United Arab Emirates has offered to invest in four multi-billion-dollar projects in the shipping sector that include development of a deep-sea port.

"We recently received a letter from the Gulf nation showing their interest in four mega projects including developing deep sea port in Bangladesh," Director General of the Ministry of Foreign Affairs Nazrul Islam told bdnews24.com.

China and India have also offered to invest in the proposed port at Sonadia.

The other three projects where the UAE wants to invest are New Mooring Container Terminal in Chittagong, Inland Container Depot with rail connectivity in Dhaka and Mongla port.

"We are positively considering it and expect a delegation at the ministerial level will visit Dhaka to discuss the proposals," he added.

Prime Minister Sheikh Hasina visited Dubai in 2011 and asked the UAE to explore opportunities to fund in infrastructure sector in Bangladesh.

The cooperation will be government-to-government through an UAE company, DP World, and an inter-ministerial meeting would discuss the substantive aspects of the proposals in December, Islam said.

"The government has been pursuing investment from the Middle East since it came to power in addition to other two major focus areas, manpower and trade," the DG added.

Qatari Investment

Another Gulf state, Qatar, also showed interest in two mega-projects involving about $4 billion.

"Qatar wants to set up 1000 megawatt LNG-based power plant with an investment of $1.5 billion and the other one is to upgrade and modernise Shahjalal airport in Dhaka involving $2 billion," Islam said.

The Qatari delegation came to Dhaka in May and signed an agreed minutes in this regard, he added.

"We are negotiating with our counterparts and hope to reach a win-win situation."

In the airport upgrading projects, there are four components and Qatar may invest in one or more or all four of them, he added.

The components are constructing two more terminal buildings, hanger, cargo village and parallel runway.

Bahrain

Foreign Minister Dipu Moni is travelling to Bahrain in January to sign important agreements to lure in investment.

The agreements are investment cooperation, avoidance of double taxation and annual high-level political consultation, DG Islam said.

"Bahrain's Speaker of parliament is also coming in January, which will improve our bilateral relations."

Govt focus

Bangladesh is stressing on investment from all over the world including the Middle East, said a senior official of the ministry who does not wish to be named.

"The Middle East has a lot of cash and if Bangladesh can play its cards right, it could be a great opportunity for Bangladesh to open another window of cooperation – investment," he said.

In Bangladesh, the Gulf region means sending manpower and draw remittance but if investment from the Middle East comes, it would widen the opportunity for more manpower export, he added.

"If the Gulf investors come here, they will need manpower and eventually they will provide customised training and this skilled workforce can be employed in the Middle East," he explained.

UAE offers to invest in deep-sea port | Business | bdnews24.com

 

[Gyp 111]

Saudi-BD deal signed, Tk 437cr loan for power plant

DHAKA: Saudi Arabia will provide Bangladesh a loan of Tk 437.30 crore for setting up a duel-fuel power plant with a view to producing some 225-megawatt electricity.

In this regard, an agreement was signed between the two countries at Economic Relations Department (ERD) on Thursday evening.

ERD Joint Secretary Nurjahan Begum and Director General of Saudi Export Project Ahmed M Ganam signed the deal on behalf their respective sides.

The loan would be provided under Saudi Fund for Development (SFD) project, sources said.

Saudi Embassy charge d`affairs Jadi Naeef Al Rakkas, among others, were present in the deal signing programme.

Project Director Sirajul Islam Chowdhry said Power Development Board (PDB) would take initiatives to implement the project within a year.

He said, “The power plant, which will be set up at Shikolbaha Union under Patiya upazila in Chittagong, will come into production in 2016.”

Saudi-BD deal signed Tk 437cr loan for power plant

 

[Gyp 111]

Walton to start production of automobiles by 2015

Walton HIL (High-Tech Industries Ltd) of the country's leading conglomerate R.B Group is preparing to manufacture cars and pick-up vans by early 2015, a senior official of the firm said Sunday.

To generate the required fund locally, for the planned capital intensive automobile plant, Walton will issue initial public offering (IPO) in the country's capital market next year, the official said.

The conglomerate is going to make a public announcement about the scheme and the timeframe for the plant, likely in December next, with an aim to go for commercial production in the next two years.

The entire process is in the final stage of planning, the official said.

Walton, which now produces 200,000 pieces of motorbikes annually along with its main products of electronic equipment including fridges and television sets, already has the capability of manufacturing tyres and tubes for cars and pick-up vans.

"All parts and components of equipment to be required for manufacturing the automobiles will be produced in the plant to be set up with the machinery imported from Japan and Germany," Uday Hakim, senior deputy director of R.B Group, told the FE.

"To manufacture the automobiles the plant will require a big capital worth millions of dollar which will be collected from the local market issuing initial public offering in the country's two bourses, Hakim added.

Meanwhile, Japan has offered technical assistance and shown eagerness to set up the plant in joint venture. But Walton wants to set up the plant on its own with investment collected from local sources including the capital market, officials of the Group said.

R.B. Group is a leading entity among local conglomerates in Bangladesh, which is aggressively diversifying its venture into heavy machinery industries to bring economic prosperity in the country of some 160 million, economic observers said.

Walton, which started production in 2006 as the first domestic electronics manufacturer at Chandra, Kaliakoir in Gazipur, said it expects to begin making cars at its new plant by late 2014 or early 2015.

The firm is now planning to produce three or four different models of cars and pick-up vans.

A 43-member team of the government-backed Japan External Trade Organisation (JETRO) visited the Walton Hitech park at Savar last month.

Officials from about 40 Japanese companies including electronics and auto parts makers took part in the programme, reflecting Japanese firms' growing interest in the country's cheap labour and economic growth.

The team headed by Tomiyasu Nakamura, executive vice president of JETRO, visited different units of Walton that manufacture fridge, motorcycle and air-conditioner.

However, some of the members of the team expressed concern about lack of infrastructure development in and around Dhaka, but voiced hope for business potentials in the country, officials at JETRO office in Dhaka said.

Walton is among the few most successful local firms that could become major exporters in the country, along with ready-made garment exporters, officials of the firm claimed.

Walton, which employs some employs 12,000 workers, distributes 4,500 types and models of goods ranging from mobile handsets, microwave ovens, DVD players, LCD and LED televisions and motorcycles and sells them through a network of 4,986 outlets, sales centres and dealers across the country, Walton officials said.

The firm also manufactures 1.4 million refrigerators and freezers, 300,000 air-conditioners and 1.0 million television sets annually. It has an installed capacity to manufacture 350,000 pieces of motorbikes.

Walton exports 91 per cent of its productes to a number of countries in Europe, Africa, Oceania, Mid East and Eastern Asia, with total annual sales up to $10 million.

Walton to start production of automobiles by 2015

 

[animelive]

2 more years only

 

[Gyp 111]

Biman earns Tk billion from Hajj flights

Dhaka, Dec 8 (bdnews24.com)—State-owned Biman Bangladesh Airlines has earned around Tk 1 billion as profit only from the Hajj flights this season.

Civil Aviation and Tourism Minister Muhammad Faruk Khan disclosed the information on Saturday at a press conference at the Biman headquarters at the capital's Kurmitola earlier in the day.

He said the airliner has earned a total revenue of around Tk 6.5 billion, of which nearly Tk 5.5 billion has already been spent leaving a profit at nearly Tk 1 billion.

The state-owned airliner saw such a big earning for the first time this year since it started Hajj flights in 1973.

The Minister, however, said the details of the profit would be made known later.

This year Biman had used its own two Boeing-777s, two DC-10s and rented a Boeing-747 for the Hajj flights.

Faruk Khan said, "The profit came as two Boeing-777s were used to transport passengers. Even though the rented Boeing-747 did not face any loss but the DC-10s did so.."

He also praised the national flag-carrier for its Hajj flight service. "Transporting Hajj pilgrims is a very tough job. The success came as Biman took a long-term plan this year giving the Hajj flights top-priority."

According to the Civil Aviation Ministry, this year a total of 110,552 pilgrims went to Saudi Arabia for Hajj and only Biman transported 54,179 of them. The two other airlines, Saudia, Saudi Arabian Airlines, and private airlines National Air Services (NAS) also transported 42,206 pilgrims and 14,167 pilgrims, respectively

Until now, a total of 105,131 pilgrims have returned to the country after performing Hajj while 173 people died during the ritual in Saudi Arabia.

Biman's last Hajj flight is supposed to return with the rest of the pilgrims on Dec 12..

Minister defends Biman

Meanwhile, Minister Muhammad Faruk Khan on Saturday defended the state-owned airliner saying Biman would not see any profit without new planes.

When asked about the loss incurred by the national flag carrier this year, he said Biman would face loss in future if new planes were not provided.

"Eight of the 10 planes it has right now are at least 20-30 years old. Old planes cannot bring profit."

"On the other hand, the fuel prices in the international market have increased by nearly 65 per cent. Fuel and maintenance cost of the old aircrafts are too high," he added.

But the Minister ducked a question over the investigation report on a rented carrier plane which left before its deal ended.

A Boeing-747, which can carry 500 passengers and was hired from a Portuguese charter company Air Atlanta, had left for Portugal from Muscat airport in Oman on Sept 12 leaving 225 passengers there, before the time agreed between Biman and the company expired.

The incident had badly affected Biman's regular flight schedule that month landing a large number of passengers travelling to different countries in chaos.

An investigation committee, led by Civil Aviation Secretary Khurshid Alam Chowdhury, was formed to look into the matter. It was supposed to submit its findings within 30 workdays.

When his attention was drawn into the issue, Faruk Khan on Saturday only said, "Measures will be taken based on the findings of the probe report."

Biman earns Tk billion from Hajj flights | Business | bdnews24.com

 

[Gyp 111]

Govt plans printing industrial hub in Munshiganj under PPP

Talha Bin Habib

The government has planned to establish a printing industrial hub at Sirajdikhan in Munshiganj under public-private partnership considering the potential of the sector that could immensely help export earnings, said a high official of the ministry of industries (MoI).

With this end in view, the MoI, following the proposal of Bangladesh Small and Cottage Industries Corporation (BSCIC), held a meeting with the printing sector representatives and concerned department officials recently on how to push the initiative forward.

The meeting in principle has agreed to set up a printing industrial town considering the huge prospect of the sector as it has been flourishing for the last few years.

"We asked the BSCIC to restructure the project proposal and sign a memorandum of understanding with the printing industry association," Joint Chief (Planning) of the MoI Luftor Rahman Tarafder told the FE.

He said after getting the restructured proposal from the BSCIC, the MoI will send it to the ministry of planning (MoP) for final approval.

Initially the proposed printing industrial town will be established on 50 acres of land.

The initial cost of the project has been fixed at Tk 1.87 billion for construction of roads, side walls, dumping houses and connection of power and gas supply lines.

The printing industry association (BPIA) will bear 90 per cent of the total cost and rest of the amount will be provided by the government.

General Secretary of BPIA AFM Shah Alam said there will be 419 industrial plots under four categories.

The park will be fully established within the next four years. The A category will be 6000 square feet having 37 plots while B category is 4500 square feet with 77 plots, C category is 3000 square feet with 253 plots and S category will be different sizes of 52 plots.

The annual turnover of the industry is now Tk 35 billion. Bangladesh exported printing materials worth US $ 20 million during the 2011-12 fiscal year (FY).

"If the printing industrial town is established then the country will be able to double its export of printing materials," Mr Alam said.

http://www.thefinancialexpress-bd.com/index.php?ref=MjBfMTJfMTZfMTJfMV85MF8xNTMzNjk=

 

[Gyp 111]

Export opportunity in Africa "PRAN signs deal with Sierra Leone"

DHAKA: An export deal has been signed between PRAN Export Limited and Ndereh Enterprises of Sierra Leone with a view to exporting processed food products to the country, said a press release.

PRAN’s Chief of Export Mizanur Rahman and Ndereh Enterprises Director Alpha Mayatu Bah signed the agreement on behalf of their respective organization at PRAN-RFL center in the city on Thursday.

Alpha Mayatu said, “There is huge opportunity to export Bangladeshi products in Africa. In many countries of African continent, the demand of Bangladeshi processed food products is immensely increasing.”

He added: “PRAN products got huge popularity not only in Sierra Leon but also in Benin, Gambia, Nizar, Liberia, Togo, Ghana, Angola, South Africa, Mali, Mauritania, Senegal and other African countries.”

A decade back, PRAN had taken a huge project to expand its business in and around many parts of Africa. For UN peace projects and the participation of Bangladesh army in Sierra Leone, Bangladesh is already been very popular among the people of the country.

PRAN has gained popularity among the people of Sierra Leon also. As a first Bangladeshi food processing company PRAN start exporting in Sierra Leon 5-year back.

This year they have signed a new 3 Lac dollar deal to import PRAN Juice there.

In the deal signing programme, Deputy Managing Director of PRAN-RFL Group Ahsan Khan Chowdhury said, “We are exporting in Sierra Leone since 2007 and demand for quality food products are gradually increasing day by day.”

He said, “As a quality food products manufacturer PRAN is getting popularity as well. We are exporting not only in Africa but also in Europe and Middle Eastern countries, comprising 5 continents and 88 countries. Very soon some more countries will be added to that list.”

PRAN has employed more than 200 people worldwide to monitor PRAN’s overseas operations. For Extra Ordinary performance in Export, PRAN has been awarded with the National Export Trophy for last 9 consecutive years.

Export opportunity in Africa PRAN signs deal with Sierra Leone

 

[Zabaniyah]

7 sued over Padma bridge graft, Abuls dropped

The Anti-Corruption Commission on Monday filed a case against seven persons including ex-secretary of the Bridges Division Mosharraf Hossain Bhuiyan for their alleged roles in conspiracy to bribe in Padma bridge project.

The names of former communications minister Syed Abul Hossain and state minister for foreign affairs Abul Hasan Chowdhury were not included in the case, the ACC sources said.

Three officials of the local agency of Canadian consultancy firm SNC Lavalin -- Ramesh, Mohammad Ismail and Kevin Walid-- were made accused in the case which was filed with Banani Police Station.

7 sued over Padma bridge graft, Abuls dropped

 

[idune]

While US lawmakers are targeting market access of largest market for Bangladesh garments, there is no sign of Awami League regime action to prevent such measure. Awami regime inaction could spell disaster for Bangladesh garments and will benefit India and other countries. This will be another litmus test for Awami regime for WHOM they work for, Bangladesh or someone else?
---------------
US lawmakers target GSP benefits for Bangladesh

Published : Thursday, 27 December 2012

The fear of adverse international response that had struck the minds of the stakeholders concerned following the devastating fire that claimed 112 lives of Tazreen Fashion's workers last month is, apparently, coming true. A number of US lawmakers, including Representative Joe Crowley, founder of a congressional caucus on Bangladesh, is 'seriously concerned' about the Tazreen blaze. They are, reportedly, pressing the US administration to complete a long-running review that could lead to suspension of trade benefits for Bangladesh extended under the Generalised System of Preferences (GSP). The lawmakers sent a letter to the US Trade Representative (USTR) last week, expressing their grave concern over the "deterioration of working conditions and workers' rights in Bangladesh".

It is likely that the US lawmakers' letter might prompt the USTR to accelerate the process of assessing Bangladesh's eligibility for trade benefits under the GSP. Complaints were earlier lodged by the AFL-CIO, the largest US labour union confederation, in 2007 about working conditions and rights of workers employed in the Bangladesh apparel sector. The relevant trade bodies in Bangladesh, including the apex one, are yet to give their reaction formally to the US lawmakers' move. But local businesses are not that much worried over the initiative since Bangladesh does not get any notable benefits out of the US GSP, in practical operational terms. The US trade facility does not offer duty-free access to Bangladesh apparel items that account for nearly 80 per cent of its exports.

However, the Bangladesh chapter of the Transparency International (TIB) has issued a statement, urging the US authorities not to take any measure that might adversely affect Bangladesh exports, including those by its apparel industry. It said such measures, if taken, would only aggravate the conditions of the workers rather than benefiting them. The TIB's concern is not without a basis. The full withdrawal of the US GSP facility in the case of Bangladesh may not leave any near-term adverse impact on the latter's exports to the former. But it will have all the potential of creating a negative impression in the minds of the US consumers and buyers, resulting in the fall of exports in the long run.

More importantly, total exclusion of Bangladesh from the list of GSP beneficiaries will make the situation more complicated for it to convince the US authorities on the issue of granting duty-free access for its apparel items. There is no denying that the working conditions in many Bangladesh readymade garments factories are not satisfactory. But the withdrawal of GSP facility cannot be the answer to the problem. At least three parties -- owners of apparel units, the government and foreign buyers -- have a major role to play in the improvement of the safety levels in factories and a respectable hike in workers' wages. The owners will have to be willing to improve the situation while the buyers can act as a pressure group in this respect. The job of the government should be to ensure the compliance of all mills and factories, big or small, with the country's safety requirements and officially-approved wage structure for the apparel workers.

Financial Express :: Financial Newspaper of Bangladesh

 

[farabi]

I Agree With Dr. Younus. Huge population is not main problem of our country. If Government take step to manage work for all people then it will bless for us.

 

[kobiraaz]

BANGLADESH - Shining Bangla?

Bangladesh is well on the path to social progress and could very well become the next economic hub of South Asia.

Despite numerous political and economic challenges, Bangladesh has attained significant levels of social progress as economic indicators increasingly show marked improvement. Social development is so noticeable that leading publication, The Economist recently placed Bangladesh in its category of “progressive” countries. The key indicators of social progress in Bangladesh include marked reduction in infant mortality rates and fatality ratio among children and women due to malnourishment and improper health care.

Social progress in Bangladesh has not been the result of economic growth but has occurred rather due to improvements and innovations in social life. The Economist points at four factors that include improving the status of women; encouraging a Green Revolution in the rural areas; sustainable social spending by the state; and vertical and horizontal growth of non-governmental organizations (NGOs).

A look at the factors of social progress in Bangladesh suggests that most of them are non-traditional instruments of development, which makes the Bangladeshi development model even more interesting. The status of women has been improved remarkably by giving them more control in the family planning process as well as by providing most of the country’s microcredit loans to women to launch small businesses. The first was critically needed because the 150 million population of Bangladesh made it one of the most congested countries of the World. Bangladesh was also the pioneer of microcredit, which has unfolded huge waves of progress. The brain behind the microcredit innovation, Muhammad Yunus, won the Nobel Prize for economics in 2006. Enhancing the status of women is indeed a model for the entire World, particularly the underdeveloped or developing countries, to follow. In most Muslim countries, save a few like Malaysia and Turkey, women have suffered from a lower social status and consequently played an insignificant role in policy planning and economic processes.

However, it is important to note that Bangladesh has been able to enhance the status of women by giving them due role in civic society because Bangladeshi leadership proscribed the role of religion in politics and policy-making. In other words it stopped the clerics of having any say in policy formulation or political decisions. Therefore, if other developing Muslim countries desire progress they ought to prevent clerical groups from interfering in the statecraft. This will however require serious flexing of political and social muscle. Ironically the very term ‘development’ has been a bête noire of conservative Muslim communities across the world.

Rural development must be made a priority for strategists. The foremost reason why most development programs have failed is because foreign development workers with limited or cursory knowledge of local conditions have conceived them. It is critical to involve local players to better gauge the social conditions. The idea of a Green Revolution in Bangladesh that entailed harvesting two crops a year as well as rotating the crops was fundamentally conceived by Bangladeshi policymakers. For a country that heavily relies on its agriculture sector, development progress may only be possible if spearheaded locally by native decision-makers.

Sustainable spending by the state on the social sector is also critical. Most developing countries fail to spend on the social sector because of a lack of vision, vested interests of the ruling elite and paucity of finances. Lack of vision within the third world leaders has largely been due to the substandard quality of education and non-democratic social and political systems. Bangladesh reveals that after adopting a civil-military supported caretaker government to purge corruption, the political leadership has come of age and has started looking beyond families and clans, which captivated the country and its development since independence in 1971. With more democratization and the opening of the political system, Bangladesh has been able to significantly overcome vested interests of the ruling elite. Consequently, the importance of the social sectors and the public spending thereof on these sectors has been realized. Previously, Bangladesh focused on its military-strategic security, which required mammoth spending on the military. Following a bloodless political revolution, political leadership has matured to resist military’s institutional interest of requiring more funds.

Usually in third world countries the role of NGOs have been looked with askance both by the policymakers and public at large. Clerics and conservative groups have been vociferous opponents of NGOs, often blaming them of carrying a western agenda, which poses serious threats to the local social stability. However, the social progress of Bangladesh belies this mindset towards NGOs.

While Bangladesh may be experiencing social prosperity, there remains an urgent need of capital for achieving high levels of economic growth. Unfortunately, with poverty rates still quite high Bangladesh lacks the requisite finances to invest in economic growth. But with large-scale social prosperity, the country has provided a conducive environment for foreign direct investment in multiple enterprises. Bangladesh has attracted European and Far Eastern investment in areas of education and energy. Even Pakistani investors and industrialists flock to Bangladesh after getting frustrated with the dismal conditions in their own country. However, in order to attract foreign investment much depends upon the Bangladeshi political leadership’s ability to fully open the economy and allow investment in all sectors.

As the third biggest economy in the region, the social and economic development in Bangladesh can bolster a salubrious impact throughout South Asian and contribute a fair share in the overall volume of intra-regional trade. For the sake of its region, it is imperative that all South Asian countries allow Bangladesh to attain prosperity in its economic sector.

Raza Khan is a political analyst and researcher on the political economy and the AF-PAK region. He has served in several senior positions in the Pakistan government and is currently writing his doctoral thesis on religious extremism-terrorism in Pakistan.

BANGLADESH - Shining Bangla?

 

[idune]

Ceramic exports dull despite opportunities

Moinul Haque

Ceramic export earning has decreased by 2.66 per cent in first five months of the current fiscal year comparing with the same period of last fiscal year.

The earning registered a fall in a period when the country’s ceramics industry sees a huge export opportunity on the global market as the European Commission imposed anti-dumping duty on ceramic imports from China.

Industry people said the export growth of some of the companies was positive but a number of exporters registered negative growth as some of them could not maintain quality and others missed the deadline of shipment.They, however, hope the export will increase in the middle of the next year when the EU anti-dumping rule will come into effect.

Earnings from ceramics export stood at $14.62 million during July-November period of this financial year, down by 2.66 per cent
from that of the corresponding period of the last financial year, EPB data showed.
The EC’s anti-dumping duty on Chinese porcelain import several months ago opened up more business opportunity for
Bangladesh exporters. ‘The country’s porcelain export will jump from the next year although no immediate impact of EC’s anti-dumping rule against China was seen,’ said an exporter. The exporters said ceramics export witnessed negative growth due to a meltdown on the European market as well as price hike of raw materials.The industry people hope that it will be possible to reach a better position in the second half of 2013 as a number of famous brands are trying to shift their source from China and Bangladesh will be a big choice for them.Rizvi ul Kabir, chief operating officer of Shinepukur Ceramics Ltd, told New Age that the export of ceramic products had decreased in the EU market due to global recession which was the major cause of negative growth in export earning.

In spite of recession in the EU, it is possible to achieve positive growth if the exporters handle the market with efficiency as a good number of new importers have shown their interest to import from Bangladesh, he said.Rizvi said the imposed anti-dumping duty on Chinese porcelain import by EU at present was experimental. It will be fully effective from May 17, 2013 and then the export from Bangladesh will jump in the EU market, he said.M Mamunur Rashid, head of marketing of Farr Ceramics Limited, said the orders had been increasing gradually and a good number of new buyers from Turkey, Russia, Brazil and Chile were showing their interest to import from Bangladesh.

He said his company, which has also registered a positive growth during the period, was getting increasing number of orders. ‘We hope that the ceramic industry will see good days in the middle of the next year as Bangladesh has emerged as the first choice of international buyers,’ he added. Quality exporters could achieve the positive growth as the Germany, Italy, Spain, France and the United Kingdom have increased their porcelain import from Bangladesh.

Shahidullah Sarwar Manjil, assistant general manager (import) of Monno Ceramics, cited price hike of raw materials as another reason besides global recession for negative growth.He said the price of raw materials increased three times in a year. The price hike of raw materials increases the production cost which eventually lower the earning from the sector, he said.

New Age | Newspaper