Bangladesh Economy: News & Updates

[Arthur]

Rice crisis imminent after poor harvest

• Abu Siddique
• Published at 01:11 AM May 16, 2017

Photo:Azahar Uddin
Agriculture Ministry estimates say the average per hectare Boro production in Bangladesh is about 4 tonnes
The nation’s food supply is likely to face a threat from the loss of Boro production in the current season from early flash-floods in the Haor wetlands, as well as pest attacks on paddy crops across the country.

To add to the crisis, rice reserves in both the public and private sectors are at their lowest in recent memory. Rice prices are already unusually high and market insiders fear that the worst is yet to come.

The government is now scrambling to make a quick response and has agreed the first rice imports for six years, ordering 600,000 tonnes.

According to Food Ministry data, the price of 1kg coarse rice is now Tk38, which is Tk14 higher than the same time last year.

According to the Department of Agricultural Extension, around 300,000 hectares of Boro fields were submerged in the latest flash-floods in the northeastern Haor wetlands, namely the seven districts of Sunamganj, Sylhet, Moulvibazar, Habiganj, Brahmanbaria, Kishoreganj and Netrakona.

Rice traders say they have very little rice in reserve this year, unlike in previous years. The government’s rice reserve has come down as well. The photo was taken at a wholesale rice market in Ashuganj on November 17, 2012S yed Zakir Hossain

Agriculture Ministry estimates say the average per hectare Boro production in Bangladesh is about 4 tonnes.

By that account, the country has lost about 1.2 million tonnes of Boro rice in the flash-floods, though other unofficial estimates have put the figure almost twice as high.

This year Boro farmers have also suffered from blast attacks in the Boro field, which may also affect the yield in many areas.

“This year I was forced to harvest two acres of my Boro paddy at least two weeks early as a large portion of my field was attacked by blast. I got at least 30% less production than usual,” said Abdul Kuddus, a farmer from Lalmonirhat.

However, the DAE thinks that the extent of the parasite attack has been overstated by news reports.

Chaitanya Kumar Das, director of field services of DAE, told the Dhaka Tribune that blast will not create any negative impact on overall production.

“There were some blast attacks in specific areas but we managed to bring them under control quickly,” he said.

“We hope that this shortage will be recovered soon enough after the Aush harvest as we have a larger coverage of Aush variety than the previous years.”

This year the acreage of Aush paddy is 1.025 million hectares while the last year’s coverage was 962,000 hectares.

Agricultural economist Qazi Shahabuddin believes that this year the country will experience about two million tonnes of shortage in Boro production.

According to the Food Ministry, the government’s rice reserve came down to 262,000 tonnes on May 7. In May last year the reserve was about 678,000 tonnes.

Traders are also saying they have very little rice in reserve.

Naogaon Rice Wholesalers Association President Nirod Baran Saha, who has been in the rice business since 1978, told the Dhaka Tribune: “This year the situation is completely different from the previous years. Like the government, the private sector’s reserve is almost finished.

Locals in Farmgate, Dhaka queue up in front of a Trading Corporation of Bangladesh truck to buy their daily commodities on Monday Syed Zakir Hossain

“Usually at the beginning of the Boro harvest, I always have a good amount of rice in my storage from the previous year. But this year my reserve is almost empty.”

In March and Aprill every year there is usually a small increase in rice prices in Bangladesh, when the Aman harvest from late autumn slowly nears depletion and the Boro paddy is still in the fields.

According to the Ministry of Agriculture, Boro provides the largest part of the country’s cereal production. Out of the circa 35 million tonnes of rice produced in the 2015-16 fiscal year, 19 million tonnes came from Boro.

But this year there was a sharp spike in rice prices, at least Tk14 higher than the previous year.

According to the Food Ministry, the average retail price of coarse rice is now Tk38 per kg, while the figure was Tk24 in this period last year.

Market insiders think that the rice price hike might continue or at least stay at this level throughout the year because of production shortfall and shortage of stock.

Qazi Shahabuddin, former director general of Bangladesh Institute of Development Studies (BIDS), thinks that importing rice in both public and private sectors is the only option to tackle the situation.

It is a view shared by Nirod Baran Saha: “To facilitate import, the government has to withdraw the imposed supplementary duty which is 25%. Otherwise, the private sector would not be interested in doing it,” he said.

To make the reserve sufficient, the government has already decided to import 100,000 tonnes of rice initially, something it has not done in the past six years. This figure will rise to 600,000.

According to some estimations, the government needs at least 483,000 tonnes of rice by June 30 to meet the demand of its various social safety net programmes including Vulnerable Group Feeding (VGF) and Open Market Sale (OMS), especially in the Haor basins where the food shortage is threatening to become acute.

OMS gets huge response on 1st day

• Shariful Islam
• Published at 12:14 AM May 16, 2017
• Last updated at 12:38 AM May 16, 2017

Consumers were buying essential commodities standing in a queue on MondaySyed Zakir Hossain
Each litre of soybean oil was sold at Tk85 while Tk55 was fixed for each kilogramme (kg) of sugar, Tk80 for lentil and Tk70 for gram

Open Market Sale (OMS), a government initiative to provide lower-income people with essential commodities at a reasonable price, has received good response on the first day.

Trading Corporation of Bangladesh (TCB), a state-owned organisation, has started OMS through 185 trucks across the country ahead of Ramadan to keep the prices of essentials stable.

During visits to several sales points in the capital, this correspondent found that consumers were buying the commodities standing in a long queue. The Dhaka Tribune correspondents from different areas including Chittagong, Khulna, Barisal, Rangpur and Sylhet also reported that sales points in the areas also witnessed a huge rush.

Abdul Alim, who bought 3 kgs of sugar (local), 3 kgs of lentil, 5 litres of bottled soybean oil and 3 kgs of gram from an OMS truck in front of the National Press Club told the Dhaka Tribune, “I have bought the commodities from OMS truck for their cheaper rates than the kitchen market.

“If the goods are of good quality, I will buy them next time.”

Md Shahidul Haque, dealer of the OMS truck, told the Dhaka Tribune, “We sold 400 kgs of sugar (local), 300 kgs of lentil, 400 litres of soybean oil and 400 kgs of gram on the first day.”

Meanwhile, the OMS truck sale finished within two hours in Khulna due to the rush of consumers.

Every year, the government conduct subsidising sale of essential commodities to keep the market price stable during the month of Ramadan.

TCB spokesperson M Humayun Kabir said: “We have started the OMS activity across the country for the convenience of people centring the holy month of Ramadan.”

A total of 185 trucks have been engaged in selling the essential commodities. Of them, 33 are in Dhaka, 10 in Chittagong, five each in other divisional cities and two each in district towns.

He also said OMS would be operated on six days a week except Friday.

Replying to a query, Kabir said: “The OMS activity would continue till the last week of Ramadan. A total of 2,811 dealers across the country are running the activity.”

“TCB collected pulses and grams from Australia for OMS at a subsidised price,” he added.

According to TCB, a consumer could buy highest 4 kgs of sugar (local), 3 kgs of lentil, 5 litres of soybean oil, 5 kgs of gram and 1 kg of date from the OMS truck.

TCB is allocating a daily sale of 300-400kgs of sugar, 250-300kgs of lentil, 300-400kgs of grams, 20-30kgs of date and 300-400 litres of soybean oil for a truck.

Dealers sold sugar, lentil, soybean oil and lentil on Monday while the sale of date would start from the eve of Ramadan.

Each litre of soybean oil was sold at Tk85 while Tk55 was fixed for each kilogramme (kg) of sugar, Tk80 for lentil and Tk70 for gram.

No one must go hungry

• Tribune Editorial
• Published May 16, 2017

When it comes to food, we cannot afford to take chances
Despite the government’s past efforts to make sure that no Bangladeshi citizen goes hungry, the progress made keeps getting undone either by natural calamities or gross incompetence.
According to reports, as it stands, the nation’s food supply is likely to face an imminent threat because of the loss of Boro production arising from flash floods in the Haor wetlands.

This is nothing new for us.

But what makes the rice crisis worse is the fact that both the public and private spheres of relief are currently at their lowest reserves in recent memory, with the government even scrambling to make a quick response.
Which is a shame, really. The current government recently reiterated its staunch commitment to ending hunger in Bangladesh, and has, to an extent, shown signs of fulfilling that promise.

Even though flash floods are the main source of the crisis, unstable prices, unnecessary bureaucracy, and corruption typically embedded within the lower rungs of the government keep any progress from being made into improving the situation.
We need to understand that a rice crisis must be treated as a national priority.

It is impossible for a nation to prosper when its very people keep dying of hunger. And while the government’s commitment, at least on paper, has been commendable, it needs to identify the key areas of problem.
This crisis needs to be brought to the attention of the highest echelons of our government.

When it comes to food, we cannot afford to take chances.

Don't worry, it won't happen. Gov already signed deal to import 8 lakh metric tonn of Rice from few other countries. Also gov. has decided to lift restrictions upon imports of rice for private sector.

 

[idune]

Tk 11,286 crore [$1.4 billion] more in defaulted loans in Q1
Published: 23:13, May 16,2017

The defaulted loans in the banking sector rose by Tk 11,236.68 crore in just three months (January-March) of this year, according to the latest central bank data.

An expert and Bangladesh Bank officials said that the banking sector would face a vulnerable situation soon if the existing upward trend in the classified loans continued.

According to the BB data released on Tuesday, the amount of defaulted loans in the banking sector stood at Tk 73,409 crore as of March 31, 2017, rising from Tk 62,172.32 crore as of December 31, 2016.

BB officials said that the amount of defaulted loans in January-March of 2017 had increased significantly compared with that in the same period a year ago as the central bank had recently unearthed a number of financial scams in different commercial banks.
The defaulted loans increased by Tk 8,040.22 crore to Tk 59,411.44 crore as of March 31, 2016 from Tk 51,371.22 crore as of December 31, 2015, the BB data showed.
The BB has recently appointed observers to two banks – NRB Commercial Bank and AB Bank — as it found huge irregularities in the banks.
The central bank will be forced to appoint observers to more banks if the rising trend in defaulted loans persists in the coming days.
The defaulted loans stood at 10.53 per cent of the total outstanding loans of Tk 6,97,001 crore in the banking sector as of March 31, 2017. The defaulted loans were 9.92 per cent of the total outstanding loans of Tk 5,98,648.21 crore as of March 31, 2016.
Former interim government adviser Mirza Azizul Islam told New Age on Tuesday that financial stability in the banking sector would decrease more if the banks failed to curb the upward trend in the defaulted loans.
He said, ‘The excessive defaulted loans will create risky situation for the depositors. So, the authorities concerned should take immediate measures to control the non-performing loans in the interest of the whole financial sector.’
The BB, the finance ministry and the law ministry should take a joint initiative to decrease the defaulted loans, he said.
The huge defaulted loans have already put an adverse impact on the good borrowers as they have to count higher interest rate due to the non-performing loans in the banking sectors, he said.
The BB data showed that defaulted loans in the six state-owned banks — Sonali, Janata, Agrani, Rupali, BASIC and Bangladesh Development Bank — increased by Tk 4,691 crore to Tk 35,716 crore as of March 31, 2017 from Tk 31,025 crore as of December 31, 2016.
The non-performing loans in the private commercial banks rose by Tk 6,670 crore to Tk 29,727 crore as of March 31, 2017 from Tk 23,057.07 crore as of December 31, 2016.

The defaulted loans in the two specialised development bank — Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank — posted an unchanged NPL amount of Tk 5,684 crore between December 31, 2016 and March 31, 2017. The specialised development banks usually submit their defaulted loan figures after every six months.

The defaulted loans in the nine foreign commercial banks, however, decreased to Tk 2,282 crore as of March 31, 2017 from Tk 2,405.30 crore as of December 31, 2016.

- See more at: http://www.newagebd.net/article/157...in-defaulted-loans-in-q1#sthash.9DeVjdsu.dpuf

 

[idune]

‘Allowing four family members to the Board of the banks would discourage int'l investors'
FE Online Report
Allowing four members from a same family to the Board of the commercial banks in Bangladesh would discourage international investors, said the Head of European Union Delegation Pierre Mayaudon on Monday.

“We have seen very little improvement of regulatory adaptation. Rather troubling signals are sent like allowing up to four members of the same family (instead of two) to be on the board of a banks,” he said in Dhaka.

Mayaudon was speaking at the Metrepolitan Chamber of Commerce and Industry (MCCI)’s 2nd quarterly luncheon meeting at the chamber building at Motijheel in Dhaka.

Mayaudon said still the regulatory framework could be improved to offer better guarantees: revision of the companies act is still pending.

“A number a minor legal or regulatory adjustments could be made that would facilitate the life of foreign (and local companies) in taxations, licencing, repatriation of profits and capital, etc,” he said.

MCCI President Nihad Kabir and its Vice President Golam Mainuddin also spoke on the occasion.

http://www.thefinancialexpress-bd.c...of-the-banks-would-discourage-int'l-investors'

 

[Banglar Bir]

10:42 AM, May 17, 2017 / LAST MODIFIED: 10:55 AM, May 17, 2017
Hatirjheel-Sonargaon flyover opened

The 850 meter section of Moghbazar-Mouchak flyover that connects Hatirjheel to Sonargaon intersection adorned in the color of the national flag of Bangladesh during its opening on May 17, 2017. Photo: Prabir Das

Star Online Report
Another part of the Moghbazar-Mouchak flyover in Dhaka, that connects Hatirjheel to Sonargaon intersection, has been opened to public.

LGRD Minister Khandakar Mosharraf Hossain opened the 850 meter section of the flyover this morning and hoped that it would help ease traffic.

On March 30 last year, Prime Minister Sheikh Hasina inaugurated the first part of the flyover that stretched two kilometres from Saatrasta to Shaheed Captain Mansur Ali Avenue.

The total length of the Mouchak-Moghbazar flyover is 8.7 kilometres.

LGRD Minister Khandakar Mosharraf Hossain cutting the ribbon to open the flyover. Photo: Prabir Das

 

[Banglar Bir]

Govt to build new airport on west bank of Padma River

• Shariful Islam
• Published at 12:32 AM May 18, 2017

Bangladesh is the 45th largest economy in the world, but its position in infrastructure competitiveness is 114th
Planning Minister AHM Mustafa Kamal has said the government will construct a new airport on the west bank of Padma River where wide-bodied aircraft equivalent to Airbus A380 could land and take off from the first day.

“We have already taken up projects aiming to modernise the existing airports including Dhaka, Chittagong, Khulna and Cox’s Bazar. All these projects are going on, but not sufficient.”

“We will build a new airport on the West bank of Padma River. Since the first day of operation, aircraft equivalent to Airbus A380 will land at the airport,” Kamal said in his address as the chief guest during a roundtable discussion in a city hotel on Wednesday.

Dhaka Chamber of Commerce and Industry (DCCI) in association with Bangladesh Investment Development Authority (BIDA), the World Bank Group and UK AID organised the daylong seminar titled “Bangladesh Infrastructure”.

The Planning Minister said the country’s economy has not yet started getting on the upswing. It is just preparing to take off.

The round-table programme was addressed by former DCCI president Aftab Ul Islam and Chittagong Port Authority (CPA) Chairman Admiral M Abdul Khaled Iqbal, among others.

The discussants emphasised moderate and befitting land act, construction of deep seaport, completion of infrastructure development projects within stipulated time, effective public-private partnership and formation of a very high-powered committee for supervising infrastructure projects.

“Bangladesh is the 45th largest economy in the world, but its position in infrastructure competitiveness is 114th,” said Wendy Jo Werner, IFC country manager for Bangladesh, Bhutana and Nepal, in her keynote speech.

DCCI President Abul Kasem Khan said: “Our GDP remains trapped primarily due to lack of modern and efficient infrastructure.”

BIDA Executive Chairman Kazi M Aminul Islam said they have taken massive reform initiatives across the country prioritising improvement to investment climate in the country.

“We have been working to ensure that business can be done with ease. Earlier, investors had to wait for at least 269 days to get construction approval, but we reduced it to 60 days,” said Aminul.

 

[EastBengalPro]

Net foreign portfolio investment doubles in Q3 of FY'17

Net foreign investment in the capital market more than doubled year-on-year in the third quarter (January-March) of this fiscal year (FY17), according to a latest review released Thursday.

"Many overseas investors considered the Bangladesh stock market as a frontier and emerging market and invested more funds there," said the review on the economic situation in Bangladesh prepared by Metropolitan Chamber of Commerce & Industry (MCCI).

It said net foreign investment in the stock market rose to above Tk.7.54 billion in Q3 of FY17 from above Tk.2.14 billion in the corresponding period of FY16.

"Positive macroeconomic indicators, including declining interest rate and stable exchange rate, and political calm boosted the foreign investors' confidence."

It said the investors' participation significantly increased in the country's capital market in April. On April 4 this year, the Dhaka Stock Exchange (DSE) witnessed a sharp rise both in the key index and turnover. On that day, the DSE broad index, DSEX, rose 0.65 per cent or 37.78 points to close at 5777.

"It was the highest level of DSEX since its introduction in January 2013," said the MCCI.

The shariah-based index, DSES, went up 0.30 per cent or 4.03 points to close at 1324, whereas the blue chip index, DS30, gained 1.31 per cent or 27.68 points to close at 2144.

The Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index (CSCX), advancing 73.54 points to settle at 10,864, according to the MCCI.

http://www.thefinancialexpress-bd.c...n-portfolio-investment-doubles-in-Q3-of-FY'17

 

[Mage]

Bangladesh contributes 5pc of world chilli output

Bangladesh is contributing 5.0pc of global chilli production.

India is the single largest producer of chilli, accounting for about 38 per cent of the global production, following by China with 7 per cent. Pakistan is also contributing for about 5.0 per cent.

The rest of the output is spread across South American and African nations, according to a report by http://indianexpress.com

Oversupply has led to the prices of the crop falling in major markets in India posing trouble for farmers.

Last year, farmers had earned Rs 90 to Rs 120 per kg of chilli. This year, the price has fallen to as low as Rs 20-40 per kg.

Data available on Agmarket, which lists prices of agricultural produce across Maharashtra, has shown that in May, the average price of chillies sold in the various Agricultural Produce Market Committees (APMCs) in the state stood at Rs 30 per kg.

The average price for the corresponding month last year stood at Rs 58 per kg.

Andhra Pradesh and Telangana are the largest producers of chilli in India, and contribute about 26 per cent to the total area under chilli, followed by Maharashtra at 15 per cent.

There has been a massive increase in chilli production across the country, especially in states such as Andhra Pradesh and Telangana.

http://www.thefinancialexpress-bd.c...ladesh-contributes-5pc-of-world-chilli-output

 

[EastBengalPro]

Economy of hotels, restaurants growing

The hotels and restaurants sector has grown with the estimated size of its economy standing at Tk 68.20 billion in the current fiscal year (FY17).

The provisional estimation of the Bangladesh Bureau of Statistics (BBS), released last week, also showed that value of output generated by hotels and restaurants was Tk 63.65 billion in the past fiscal year.

The value is calculated at constant market price to keep consistency with the previous years’ value. Hotels and restaurants is a sector of the Gross Domestic Product (GDP) under the broader service category.

The contribution of the hotels and restaurants sector, however, has remained unchanged at 0.75 per cent of GDP in the current fiscal year.

According to the Economic Census 2013, the latest one of its kind, there are around 0.52 million establishments on accommodation and food service activities across the country.

The combined contribution of the activities accounts for 6.65 per cent of the total establishments of the economic activities.

Hotels and restaurants are considered as accommodation and food service activities.

Activities of the economic units include the provision of short-stay accommodation for visitors and other travelers and the provision of complete meals and drinks fit for immediate consumption.

http://www.thefinancialexpress-bd.com/2017/05/22/71166/Economy-of-hotels,-restaurants-growing 

 

[Mage]

Bayer CropScience signs agreement with Hossain Enterprise
FE Report


Bayer CropScience Ltd., a Germany-based leading agri-input company, has entered into a distribution agreement with Hossain Enterprise C.C. Ltd., to distribute its crop protection products in tea estates of Bangladesh.

Hossain Enterprise brings with it the reputation and distribution strength in managing crop protection for tea estates. The new collaboration will enable smooth supply and timely availabilty of Bayer's crop protection solutions and technology to tea growers.

Srinivasa Kumar Karavadi, Managing Director, Bayer CropScience Ltd., Bangladesh, and Afzal Hossain, Managing Director, Hossain Enterprise C.C. Ltd., signed the distribution agreement to this effect in Dhaka Sunday.

At the event, both officials shared their views on how the partnership will create strong synergies to serve the tea estates better.

doulot_akter@yahoo.com

http://www.thefinancialexpress-bd.c...ience-signs-agreement-with-Hossain-Enterprise

Retail, wholesale trade contributes 14pc to GDP

- The file picture used only for representation.
FE Online Report
The contribution of the retail and wholesale trade, along with motor repair, is estimated to stand at 13.94 per cent of the country’s Gross Domestic Product (GDP) in the ongoing fiscal year (FY17).

The provisional estimation of the Bangladesh Bureau of Statistics (BBS), released last week, also shows that contribution of this sector to GDP actually remained unchanged from the past year.

The ratio of contribution to GDP by the sector was 13.99 per cent in the FY16 at constant price. The value of the output of this service sector is, however, going to increase in the current fiscal year.

The provisional estimation of the BBS put the value at Tk 1268.27 billion in the current fiscal year which was Tk 1186.65 billion in FY16.

The national economic census of 2013, the latest of its kind, shows that there are some 3.58 million economic establishments of wholesale and retail trade, repair of motor vehicles and motorcycles across the country.

This sector has a direct employment of at least 8.4 million people, according to the economic census.

The wholesale, retail and repair of motor vehicles is considered as the largest service sector of the economy. The sectoral growth rate is also estimated at 6.88 per cent.

http://www.thefinancialexpress-bd.c...tail,-wholesale-trade-contributes-14pc-to-GDP

 

[Banglar Bir]

Addl SD to be slapped on mobile services, tobacco after VAT rate cut
Jasim Uddin | Published: 23:19, May 22,2017

The government is set to impose additional supplementary duty (SD) on some sectors like tobacco and mobile services to compensate the revenue loss due to the proposed reduction of value-added tax in the new VAT law.

Officials of the finance ministry said that the sectors which had been paying VAT at the rate of 15 per cent over the years, contributed more than 40 per cent of overall indirect tax revenue collected by the National Board of Revenue.
The government will incur a significant amount of revenue loss after reduction of VAT rate from 15 per cent stipulated in the new VAT and Supplementary Duty Act-2012 which is scheduled to come into force from July 1 this year.
Finance minister Abul Maal Abdul Muhith has already hinted that the VAT rate will be lowered following strong opposition from businesses and other stakeholders, saying that 15 per cent would be very high compared with other countries having similar economic strengths.
Though Muhith is yet to declare the new rate, officials said that it might be set at 12 per cent or 13 per cent.

Currently, all sectors, except 15 services and 70 products which pay VAT on truncated value or tariff value, are under 15 per cent VAT rate under the existing law.
Reduction of the rate by 1 per cent may cause revenue loss of Tk 4,000 crore a year, Muhith said.
Officials said that imposition of additional SD would offset the loss.
SD may be imposed proportionately in line with the reduced VAT rate or by one per cent higher than the reduced rate, they said.
Currently, supplementary duty range of 30 per cent to 65 per cent is applicable on cigarettes and bidi based on price slabs while 100 per cent SD is applicable for Zarda and Gul.
On the other hand, a 5 per cent SD is applicable on mobile services including talk time, internet uses and others.
They said that the revenue board was examining the possibility to impose the SD on some other sectors like gas and cement.
But finally both the sectors may be dropped from the list considering the price impact on mass people, they said.
Officials of the NBR said that SD at local stage was usually imposed on goods and services which are considered as health hazardous and luxury items.
But there are practical problems to impose the duty on all sectors as it will destroy the spirit of reduction of VAT rate, they said, adding that it would also create problems in implementation of the law.
So, SD will be imposed on few selected sectors in a manner so that the reduction of VAT rate cannot cause any revenue loss, they added.
Surcharge may be imposed or increased on the key revenue generating sectors, they said.

- See more at: http://www.newagebd.net/article/161...bacco-after-vat-rate-cut#sthash.d4tjiBh6.dpuf

 

[Mage]

Muhith seeks Saudi investments in SEZs
Finance Minister AMA Muhith has sought Saudi investment in Bangladesh’s Special Economic Zones (SEZs).

He said such investments would significantly accelerate the trade opportunities between the two countries bonded by the spirit of brotherhood.

He made the request when he held a meeting with Saudi Finance Minister Mohammed Al Jadaan in Jeddah during his Kingdom of Saudi Arabia (KSA) visit, a finance ministry release said on Sunday.

During the meeting, the Bangladesh finance minister informed his Saudi counterpart about the establishment of Special Economic Zones in Bangladesh, some of which are dedicated to specific countries such as Japan, South Korea and China, according to BSS.

http://www.thefinancialexpress-bd.com/2017/05/21/71129/Muhith-seeks-Saudi-investments-in-SEZs

 

[Mage]

Remittance inflow gains momentum

Aftyer a sluggish trend, remittances is picking up again in the first 19 days of May.

The country received US$807.77 million as remittance, which is $115.76 million more from the same period of the previous month, according to Bangladesh Bank (BB) data.

The country received $692 million till April 19, the BB statistics show.

"The recent flow of remittances indicates that it is gradually increasing and this trend is likely to continue in the upcoming months," BB chief spokesperson Subhankar Shah, reports state-owned BSS.

According to BB, the country received $1009.47 million as remittance in January and $940.75 million in February 2017, but it witnessed a rising trend from March as migrant workers sent home $1077.52 million in March and $1092.64 in April respectively.

BB attributed such upward trend of inflow of remittance to the measures taken by the government, BB and mobile banking operators.

"It is a good sign that inflow of remittances is coming back to positive trend," said Shah, also the executive director of the central bank.

"Some Non Residence Bangladeshis (NRBs) are using informal channel, including mobile banking, for sending their money home," he said.

Besides, the falling currency rate against dollar and low oil prices have hit the incomes of the Middle Eastern countries where most of the Bangladeshi migrants work, he added.

Shah said BB has already sent letters to the Bangladesh missions aboard for taking steps to close illegal bKash or Rocket agents to stop sending money home by migrant workers through informal channels.

He also said mobile banking operators are also appointing lawyers to stop the illegal agents aboard.

Two investigation teams of BB visited Saudi Arabia, Singapore and Malaysia in March to find out the reasons behind the downward trend in country's remittance inflow.

During the visit of the teams, they found that NRBs are using informal channels for sending their money home due to various reasons, including easy procedures and no procedural cost.

"I think, mobile banking alone is 50 per cent responsible for the drop in the inflow of remittance," the official added.

Mentioning the anti-money laundering activities in different countries as another reason to choose the informal channels by remitters, shah said illegal workers cannot send their money home through the formal channels.

Shah said the government has set a plan to ease the sending procedures of remittances for making the sector more vibrant for the country's economy.

http://www.thefinancialexpress-bd.com/2017/05/28/71892/Remittance-inflow-gains-momentum 

 

[EastBengalPro]

Remittance inflow gains momentum

Aftyer a sluggish trend, remittances is picking up again in the first 19 days of May.

The country received US$807.77 million as remittance, which is $115.76 million more from the same period of the previous month, according to Bangladesh Bank (BB) data.

The country received $692 million till April 19, the BB statistics show.

"The recent flow of remittances indicates that it is gradually increasing and this trend is likely to continue in the upcoming months," BB chief spokesperson Subhankar Shah, reports state-owned BSS.

According to BB, the country received $1009.47 million as remittance in January and $940.75 million in February 2017, but it witnessed a rising trend from March as migrant workers sent home $1077.52 million in March and $1092.64 in April respectively.

BB attributed such upward trend of inflow of remittance to the measures taken by the government, BB and mobile banking operators.

"It is a good sign that inflow of remittances is coming back to positive trend," said Shah, also the executive director of the central bank.

"Some Non Residence Bangladeshis (NRBs) are using informal channel, including mobile banking, for sending their money home," he said.

Besides, the falling currency rate against dollar and low oil prices have hit the incomes of the Middle Eastern countries where most of the Bangladeshi migrants work, he added.

Shah said BB has already sent letters to the Bangladesh missions aboard for taking steps to close illegal bKash or Rocket agents to stop sending money home by migrant workers through informal channels.

He also said mobile banking operators are also appointing lawyers to stop the illegal agents aboard.

Two investigation teams of BB visited Saudi Arabia, Singapore and Malaysia in March to find out the reasons behind the downward trend in country's remittance inflow.

During the visit of the teams, they found that NRBs are using informal channels for sending their money home due to various reasons, including easy procedures and no procedural cost.

"I think, mobile banking alone is 50 per cent responsible for the drop in the inflow of remittance," the official added.

Mentioning the anti-money laundering activities in different countries as another reason to choose the informal channels by remitters, shah said illegal workers cannot send their money home through the formal channels.

Shah said the government has set a plan to ease the sending procedures of remittances for making the sector more vibrant for the country's economy.

http://www.thefinancialexpress-bd.com/2017/05/28/71892/Remittance-inflow-gains-momentum

No fee for for sending remittance seems to be working?

 

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No fee for for sending remittance seems to be working?

Who knows

The road ahead is green

• Tribune Editorial
• Published at 06:08 PM May 31, 2017
• Last updated at 07:15 PM May 31, 2017

Photo: BIGSTOCK
This is a major step in getting back the attention of global brands and retailers which had turned away from Bangladesh
Bangladesh’s RMG sector has faced a tough battle defending its reputation in recent years.

Incidents like the collapse of Rana Plaza and various other disasters have caused the image of the industry to take a hit, and the concerns have not been unfounded either.

But with a rise in the number of environment-friendly RMG factories in the Bangladesh, the industry looks poised for a green revolution.

Turning green will not only do wonders for the reputation of the RMG industry, it will also provide a better working environment, thereby ensuring worker safety and boosting productivity.

A green revolution is no pipe dream: Some 67 factories in Bangladesh have already received Leadership in Energy and Environmental Design certification from the US Green Building Council.

And this is just the beginning, another 222 factories have been registered for certification.

Going green means cutting back on carbon emissions — eco-friendly factories are using water-saving technology, harvesting rainwater, and using solar panels and servo motors for power generation.

This is a major step in getting back the attention of global brands and retailers which had turned away from Bangladesh.

Global buyers are, more and more, paying attention to environmental sustainability and, in the long run, Bangladesh will benefit by showing that its RMG sector does indeed care about workers and the environment.

The ready-made garment industry is one of the most important engines of the Bangladesh economy and, as such, it must keep up with the times.

It is in the interest of all of us to do so.

http://www.dhakatribune.com/opinion/editorial/2017/05/31/road-ahead-green/

Govt requests ADB to finance private sector enterprises

FHM Humayan Kabir


Bangladesh has requested ADB's private-sector lending arm to finance private enterprises to help the country score double-digit economic growth, in a divergence from its current funding practice.

Officials said Wednesday the government had made the plea to the Asian Development Bank (ADB) during the Bank's recent meeting in Japan, as the private sector is emerging as growth engine.

"Currently, ADB helps the government of Bangladesh only for public-sector development works. Now we have requested the Bank to come forward with their loans for the private sector, too, as that is the growth engine in the country," Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam told the FE.

He said at a bilateral meeting on the sidelines of ADB's annual general meeting early May in Japan they had requested ADB President Mr Takehiko Nakao to finance Bangladesh's private sector through its private-sector lending window.

"We have also requested the Director General and the Executive Director of the South Asia Department of the Manila-based lender to consider Bangladesh's appeal for the private-sector lending," he added.

Government alone cannot play role to help the economy grow sans support of the private sector, Mr Azam said.

The ADB operates in Bangladesh with its loans and grants for public-sector development projects only. It does not lend to private-sector enterprises.

The Manila-based lender has a Private Sector Operations Department (PSOD) which finances the private enterprises in some of its member- countries.

However, it usually does not work in Bangladesh.

World Bank Group's two lending arms -- the International Finance Corporation and the Multilateral Investment Guaranty Agency (MIGA)- finance and support Bangladesh's private-sector enterprises for the growth in their business.

The IFC had already confirmed $635 million for 13 projects in Bangladesh until last financial year (FY), 2015-16. Its committed total portfolio in Bangladesh as of June 2016 amounted to about $1.0 billion in 47 projects.

The Corporation promotes sustainable growth and private-sector development in Bangladesh by investing in critical infrastructure, boosting financial inclusion, enhancing textiles competitiveness, and supporting reforms to make doing business easier for the private sector.

MIGA has already given guarantee to many private firms in Bangladesh to get foreign loans and supports.

According to the ADB, its PSOD provides key support for job creation, access to finance, and business opportunities across ADB-member countries.

In the last calendar year, 2016, the Asian Bank approved $2.5 billion in new financing to support private-sector operations in the region, while mobilising $5.8 billion in direct value-added co-financing. The combined $8.3 billion fund for 2016 was 15 per cent higher than in 2015, billed a new record.

ADB's private-sector operations are focused on assisting member-countries in achieving the Sustainable Development Goals as well as the targets laid out in the Paris Agreement on climate change.

A senior ERD official said: "Bangladesh needs to grow its economy at a double-digit rate. So, the ADB's prospective help to the private sector will facilitate the economic expansion here."

kabirhuamyan10@gmail.com

http://www.thefinancialexpress-bd.c...sts-ADB-to-finance-private-sector-enterprises

 

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Laying foundation for future satellites in Bangladesh

Sir Fazle Hasan Abed inaugurating the ground station
Afraim Karim


University is not only the premises to learn, but to create and set an example. The very first ground station was built by BRAC University students, and the inauguration took place on May 25, 2017 in the Mohakhali campus. The inauguration was done by Sir Fazle Hasan Abed, chairperson of BRAC and chairperson, Board of Trustees of BRAC University. Vice Chancellor Professor Dr. Syed Saad Andaleeb was present during the inauguration ceremony.

As Sir Fazle Hasan Abed entered the ground station, he was presented with a replica of 'BRAC Onnesha', followed by an introductory presentation by BRAC University students on behalf of the three diligent minds who created the satellite to set up the ground station in Bangladesh.

The cubic satellite shall be launched to International Space Station (ISS) by SpaceX's Falcon 9 rocket from Florida, USA on June 02, 2017. On receiving the news of their successful project, Sir Fazle Hasan Abed congratulated all the students of BRAC University on setting a benchmark for the engineering students of Bangladesh and motivating further innovation within our own homeland.

After the presentation by the students of BRAC University, Sir Fazle Hasan Abed and Professor Andaleeb had a video conversation with Maisun Ibn Monowar, Abdulla Hil Kafi and Raihana Shams Islam Antara- the creators of BRAC Onnesha. During the conversation, Sir Fazle Hasan Abed asked them to elaborate on the advantages of the satellite.

They explained that the satellite is supposed to collect topographical data when it will be deployed into the low earth orbit with an altitude of 410 km. This will then be sent to the newly established ground station on the premises of BRAC University. The satellite will rotate over Bangladesh for approximately four to six times a day. The collected data will help the data analysts to interpret and figure out the topographical locations of Bangladesh which in turn will help boost the economy of our country.

The satellite will also receive all sorts of audio signals in times of disasters or any other emergency and send the signal across the country. The entire set up of the room where the ground station has been established was developed by Architecture Department of BRAC University along with BRAC'S construction department.

Sir Fazle Hasan Abed also wanted to know what the three alumni Maisun Ibn Monowar, Abdulla Hil Kafi and Raihana Shams Islam Antara's plan to do next.

Maisun Ibn Monowar mentioned that he intends to do further research to help improve the communication system of the satellite which will help satellites retrieve lost data. Raihana Shams Islam Antara has based her research on developing the antenna in the satellite and find a way to install the antenna inside the satellite which will deploy only when it goes to space, since the existing structure of all the antennas in any satellite has its own flaws. Abdulla Hil Kafi is doing a futuristic research on the environment of space. He believes that the current conditions are harsh for any satellite to go and stay on space. Thus it requires proper research on finding a solution to improve the conditions for the future satellite.

Maisun Ibn Monowar, Abdulla Hil Kafi and Raihana Shams Islam Antara mentioned that their next aim is to build a satellite with the help of a purely Bangladeshi team and spread out all the knowledge that they have gained throughout these years.

Sir Fazle Hasan Abed expressed his best wishes to the students who have been working day and night on the satellite and the ground station. He also hopes that our government will acknowledge the existing talents of Bangladesh and be more open to fund such scientific and social science researches that will help the country reach a new era.

The writer is studying Economics at BRAC University. She can be reached at afraim.karim.nowal@gmail.com

http://www.thefinancialexpress-bd.c...oundation-for-future-satellites-in-Bangladesh

High-tech park: Nucleus of innovation ecosystem
M. Rokonuzzaman
Innovation is one of the major drivers for economic growth. It is about developing ideas for offering new products, or improving upon the processes in producing them. These ideas are usually based around emerging technologies. Ideas are developed when there is a combination of technological possibility and economic viability. Many actors with special capabilities are required to contribute, starting from idea generation to commercial exploitation. As a result, a single actor is not sufficient enough to complete the journey. Rather, a group of actors having complementary attributes need to contribute. The coexistence of these actors in close proximity is often termed as innovation ecosystem. In an innovation ecosystem, diverse actors work in their own interest to turn ideas into profitable flow of revenue. Some of those ecosystems have grown as a closely knit fabric in certain parts of the world. The economic contribution of such ecosystems appears to be a miracle, turning farmland to innovation hotbed increasing per capita income. Policy makers are after replication of such economic success stories. One of the popular policy interventions for innovation ecosystem is to develop high-tech parks. But isolated development of such high-tech parks, particularly in developing economies, turn out to be property-based initiatives with no innovation dimension. In absence of surrounding innovation ecosystem, such high-tech parks usually result in 'high tech fantasies', isolated entrepots of low technology production that contribute little to fulfil their stated goals.

Like many other countries, Bangladesh has taken an initiative to develop high-tech parks. One of the notable sites is located at the outskirt of Dhaka; and another one is being constructed at the city centre of Jessore. To fulfil the goal of earning $5.0bn annually and creating 1m jobs by 2021, it is being reported that there is a plan to set up 12 IT parks in the country-one in each major district. At the beginning, these parks may be targeted to attract foreign direct investment in hardware manufacturing and software development. With the given history of high-tech parks in developing countries, even in some advanced ones, such initiatives may not be more than labour centric activities around high-tech jobs. Despite such likely low-tech beginning, the possibility of building innovation ecosystems around such high-tech parks should be exploited.

It appears that there are seven major types of activities being performed in the high-tech value chain. The entry link of this value chain will vary depending on the prevailing country context. But it does not necessarily mean that upon entry, there is no scope to travel through the value chain to gradually move to higher value added segments. For example, Bangladesh's entry may be in the low-tech assembly of hardware devices or coding and testing of software in the high-tech value chain. But, in course of time, Bangladesh has the opportunity of developing ecosystem centring each high-tech park to move to higher value added segment, creating innovation economy.

Question may be raised as to the possibilities of commercial exploitation of innovative ideas in Bangladesh. With the given global competitiveness, it may be a highly uncertain journey to succeed in global innovation space. But, the growth of component technologies has opened the opportunity to innovate for improvement of the products which are being produced now, and to enhance the processes to produce them. It is quite encouraging to note that high-tech innovation is not just limited to high-tech end user products. As a matter of fact, every production process, whether producing farm or industrial products, is subject to high-tech innovation. Even indigenous production processes like pottery or handloom could be improved by taking advantage of high-tech innovation.

But to take the advantage of high-tech innovation, a number of activities should be carefully planned and implemented. In absence of it, labour centric low-tech beginning of high-tech park will not likely graduate to high-tech innovation ecosystem. For example, although we entered the textile industry through labour centric value addition, but despite being a major producer of finished products, we have not made virtually any progress in innovation segment of the industry. Rather, revenue earned in the textile and ready-made garments industry is either reinvested in the expansion of the same labour centric segment, or being diverted in completely different industries, such as real state, or hospitality. If we had taken smart steps, we could have been successful in developing innovation centric textile and apparel making machinery industry. As a result, in addition to low cost labour, we could have succeeded to add high value through mental capacity of our university graduates. Such success could have resulted in innovation economy, creating high paying jobs for our graduates. Similarly, although Bangladesh has become one of the largest markets of mobile handsets, reaching more than $1.0 billion import, there has been virtually no value addition. Moreover, it is quite unfortunate to observe that local firms having large revenue base in importing mobile handsets have been expanding in real-state or other disconnected industries, instead of investing in adding local value to mobile handsets.

Therefore, it is suggested that along with the construction of high-tech or IT parks, there should be well planned activities to develop innovation ecosystem around each of those parks. Each park should be targeted to grow as the nucleus of different high-tech innovations. For example, one of them could be centre of cyber security innovation. Another one could be the breeding ground of precision farming solutions. To progress along this line, important actors should be identified and they should be empowered to play their due roles. Although universities are deemed to be important actors, their roles should be appropriately defined. Instead of encouraging universities to follow linear model of innovation, they should be rather motivated to focus on research to innovate to improve existing products and processes to produce them. We should also bring changes in policies related to trade, taxes, competitiveness, and innovation financing. Instead of making Bangladesh a market of foreign technologies, import tax on capital machinery should be rationalized to create demand of local process innovation. Similarly, a portion of subsidy and economic incentives, given to address cost of production issue facing farming or manufacturing industry, should be diverted to provide incentives to source local innovation to address the same issue. We need to reform Bangladesh Council for Scientific and Industrial Research (BCSIR) turning it to industry focused contract R&D centre. We should also upgrade research and academic institutions around each of those high-tech parks to undertake research and development activities to support innovation in targeted areas. We should also create incubation and shared R&D facilities in each of those parks. Risk capital financing issues should also be taken into consideration. The R&D grants provided by the ministry of science and technology should also be targeted to support innovation ecosystem around each of those parks. Overall economic planning should take into consideration developing and taking advantage of such high-tech park centric ecosystems.

There might be a question about the weak base in turning high-tech or IT parks as innovation hubs in Bangladesh. But different studies indicate that the vast majority of the successful and innovative clusters that we see today are the result of serendipitous events, and have frequently evolved from spontaneous, chance concentrations of economic activity. Despite such serendipitous emergence, their presence could be leveraged in shaping the evolution and progress of regional innovation system. Therefore, instead of waiting for well-planned activities to unfold in proper sequence, it would be prudent to plan to develop innovation ecosystem around each of the hitech parks ? to kick-start the innovation economy. To make progress along this line, we should have a very well conceived strategy and action plan. To unlock such potential, we may need to have major reform in broader economic, science and technology policies of the country. But, such reform is necessary not only to make high-tech parks innovation success stories, but also most importantly, to increase the role of total factor productivity to economic growth-to make Bangladesh a high middle-income country by 2030.

M Rokonuzzaman Ph.D, academic, researcher and activist: Technology, Innovation and Policy, is Professor, Department of Electrical and Computer Engineering, North South University, Bangladesh. zaman.rokon.bd@gmail.com

http://www.thefinancialexpress-bd.c...gh-tech-park:-Nucleus-of-innovation-ecosystem