Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

Bangladesh needs to focus on SMEs to cut poverty

Bangladesh needs to focus on SMEs to cut poverty


Bangladesh's small and medium enterprises (SMEs) can play a big role in pushing national economy up to the level required to achieve the millennium development goal of halving poverty over the next five years.

But cheaper raw materials and inputs from India, China, Taiwan and others have held this vital growth sector back, said Aftab ul Islam, chair person of the SME Foundation.

Bangladesh's economy, which grew by 5 to 6 percent on average since 1996, could see gross domestic products (GDP) rise between 8-10 percent by 2015, helped by the SMEs, he told Reuters in an interview recently.

Abject poverty now grips around 38 percent of the country's more than 150 million population, who live on less than $1 a day. The U.N. wants poverty halved by the end of 2015.

"The Bangladesh economy is already enjoying benefit from strong support of its dependable SME sector. SME is the engine of growth in Bangladesh, that can also help the country become a middle-income state by 2021," said Mr Aftab.

There are about 6 million SMEs in Bangladesh, making up about 90 percent of all industrial units in the country, that employ about 31 million people and contribute around 25 percent of the GDP, Mr Aftab said.

"While large and heavy industries will be set up in the natural course, the exciting prospect as always lies with the SMEs," he added.

"SMEs are labour-intensive and low-capital based. Thus encouraging individual entrepreneurs to invest, mainly in manufacturing products that appeal to the general public but are also significant contributors to backward linkage to heavy industries," said Mr Aftab.

About 60 to 65 percent of SMEs are located outside the metropolitan areas of Dhaka and Chittagong, having easy access to labour and less problematic business environment.

Business costs in rural areas were also low, said the SME Foundation chief.

"SME's contribution to national exports is significant through different industries such as ready-made garments, jute, and leather."

In Bangladesh scarcity of raw materials hinder the ability of SME to be export oriented and limits its ability to reach more advanced stages of international business.

Cheaper supply of goods and inputs from India, Taiwan, China, Thailand and Korea only add to the competition faced by the SMEs, which also suffer local constraints such as shortage of electricity, water, roads and highways.

 

[akash57]

Bangladesh Business Forecast Report Q1 2011

Cooling In The Offing

We expect Bangladesh’s economy to cool down in FY 2010/11 (July-June) with GDP growth coming in at 5.6% after provisional data showed the economy growing at 6.0% in the preceding fiscal year. As the current political climate remains fragile due to increasing angst between the two main political parties, the resulting unrest will likely hold back economic potential. Despite the recent strength of the economy’s export sector and our forecast for outperformance in H111, we expect private consumption to do the opposite due to high inflation and flattening remittances creating a drag on overall economic growth.

The country is set to experience further political instability as political unrest grows over the eviction of former prime minister and current opposition leader Begum Khaleda Zia from her home of 30 years. The opposition party, the Bangladesh National Party has called two hartals (strikes) in the space of two weeks following Zia’s eviction, spurring violence in pockets around the country.

Furthermore, the ruling Awami League’s plan to ban religion-based politics will likely bolster the nation’s international reputation in the eyes of western governments but could potentially stoke religious backlash at home. The proposed ban places severe downside pressure on Bangladesh’s long-term political risk rating of 53.8.

We are forecasting private consumption to underperform through the rest of FY 2010/11 as remittance growth continues to flatten and as high inflation constrains household budgets. A weak recovery in key markets, coupled with declining manpower exports, has led to weak remittance inflows over the past year. Rising food prices and rapidly expanding money supply growth will continue to place upside pressure on headline inflation over the coming quarters. The weakness of remittance inflows will also lead to a smaller current account surplus in FY 2010/11. On a positive note, strong export performance over the first few months of FY 2010/11 should carry the economy through H111.

Though we are forecasting private consumption to underperform in the short term, we highlight a promising domestic demand story in the long term which is a plus for the country’s long-term business environment. The country’s favourable demographic profile and the rapid rate of urbanisation offer a very compelling long-term growth story. With a score of 30.9, Bangladesh currently ranks 134th out of 167 countries in our proprietary business environment ratings. In particular, the country’s business environment is held back by weak institutions and an unfavourable market orientation.

Bangladesh Business Forecast Report Q1 2011 (January 9, 2011) | MarketPublishers.com

 

[CaPtAiN_pLaNeT]

Kafco plans $1b plant
Posted on January 9, 2011

Kafco plans $1b plant

Kafco plans $1b plant

Star Business Report

The Karnaphuli Fertiliser Company Limited (Kafco) plans to set up its second plant to produce 3,000 tonnes of urea fertiliser a day.

“We’ll submit our proposal to Industries Minister Dilip Barua soon for the $1 billion plant. Primarily, we’ll choose a site anywhere at Ashuganj, with a hope of available gas supply here,”said Salahuddin Ahmed, Kafco’s chief executive officer.

“We now await government’s nod to start construction work this year. The profit of the existing plant will be reinvested in the new plant,” he told The Daily Star after a press conference at Sonargaon Hotel in Dhaka yesterday.

Ahmad also said Kafco has been a totally debt-free company since February 1, 2006.

The company contributed $744.48 million to the government’s exchequer since fiscal 2004-05 to 2009-10, he informed the press.

Kafco sold 82 percent to 421,384 tonnes of urea to the government last fiscal year and exported 91,851 tonnes.

The company has to export fertilisers despite the item’s scarcity in the local market, as it was set up in 1990 with foreign investment, the CEO said.

Bangladesh government holds 43.51 percent share of the company, Kafco Japan 31.28 percent, Subcontinent Ammonia Investment 8.63 percent and Stamicarbone 1.57 percent shares.

Since inception, Kafco paid $247.44 million in taxes and duties, the company’s top official said.

“Kafco has paid dividends to its shareholders since FY2005-06. Bangladesh government is the single largest beneficiary. Up to FY 2009-10, the company has paid dividends of $441.8 million, out of which the government has received $191.6 million,” he added.

While his attention was drawn to the planned new factory, Industries Minister Dilip Barua said he is not aware of it. “Perhaps, the plan is yet to be finalised. The government is busy with its own plant now,” Barua said.

 

[CaPtAiN_pLaNeT]

Income tax earning sees marked rise in first half
NBR cites strict monitoring for success

Income tax earning sees marked rise in first half

Doulot Akter Mala

Income tax collection has grown by 33 per cent in the first half of the current fiscal with the impressive trend of tax payment by both individual and company taxpayers.

The National Board of Revenue (NBR) has collected Tk 79.62 billion income tax in July-December period against Tk 59.85 billion in the corresponding period last year.

For the first half of the current fiscal, the revenue board set target for Tk 72.43 billion income tax from individuals and corporate bodies.

Revenue officials said they have received tax returns from nearly 1.0 million income tax payers, both corporate and individual, until November 30.

"This year we have launched spot assessment which helped the income tax wing to net more quality taxpayers than in terms of quantity," said a senior income tax official on Sunday.

Although the trend of searching for new taxpayers is slow this year, all of the surveyed taxpayers will directly come under tax net under the new system, he said.

"We have collected audit reports of some big companies and organisations including banks and financial institutions to cross-check actual tax payment and annual earning," he said.

Strict monitoring by the income tax wing contributed to the success in the first half, he said.

Another top taxman said the income tax wing would intensify its drive from February and onwards to increase tax collection and raise the number of individual taxpayers.

He referred to the financial insolvency of NBR as a major obstruction to carrying out a massive drive and the campaign for motivating new taxpayers.

"The government should strengthen the revenue board through providing some discretionary power to spend money which is in place in neighbouring India," he said.

A group of efficient and skilled revenue officials recently changed their job cadre and switched over to different ministries to get higher status, he said.

The posts of members are the highest positions in the revenue administration which is equivalent to the rank of additional secretary, while the revenue board members in India enjoy the status of a full secretary, he said.

He said NBR was feeling helpless due to the acute manpower shortage as experienced revenue officials opted for other departments because of non-availability of higher status in the tax administration.

Income tax collection target for 2010-11 has been set at Tk 210.05 billion, which is 29 per cent of the total revenue collection target of Tk 725.90 billion.

 

[CaPtAiN_pLaNeT]

Tuesday, January 11, 2011
Metropolitan
Padma Bridge Project
Additional Tk 10,346cr likely to get Ecnec nod today

http://www.thedailystar.net/newDesign/news-details.php?nid=169577

Alpha Arzu

The government is going to approve Padma Multipurpose Bridge Project with additional 101 percent costs in the Executive Committee of the National Economic Council (Ecnec) meeting today.

The proposed revised cost for the project is Tk 20,507 crore against the initial cost of Tk 10,161 crore approved by the Ecnec in 2007. The project cost rise is due to extension of the length of the bridge, change in the bridge's design, increase in amount of land acquisition costs and increase in the number of consultants and the price of construction materials.

When contacted, Communications Minister Abul Hossain yesterday said, “These are some specific reasons to increase the costs of the project implementation. The construction work of the bridge will start from July this year though the bridge authority already has started to acquire land and other activities to construct the bridge.”

With the increased amount of fund, the government will acquire 1124.77 acres of land, conduct 14km river training and construct toll plaza and approach road, said a high official of the ministry.

The Bangladesh Bridge Authority has already spent Tk 518 crore to acquire 745 acres of land and other purposes to construct the 6.15km bridge over the Padma River to connect the country's southwest with Dhaka at Mawa in Munshiganj and Janjira in Madaripur.

The construction of the bridge with four lanes and a railroad is scheduled to be completed by 2015, according to the project proposal.

The bridge would be used as part of the trans-Asian route, said the communications minister. The bridge will also help establish industries in the region.

A total of 6km approach road on Mawa side and 6km road on Janjira side will be constructed for the bridge while river training work will be done on 14km stretches of the rivers banks--6km on one side and 8km on another.

Padma Multipurpose Bridge will connect the country's south-western parts with the capital and is expected to save hundreds of thousands of working hours and reduce huge transport costs. The bridge will be the country's longest bridge with 6.15 km of length.

 

[CaPtAiN_pLaNeT]

Int'l exhibition on marine technology, shipbuilding
Need for backyard linkage industry stressed

Need for backyard linkage industry stressed


FE Report

A three-day international exhibition on marine technology, shipbuilding and renewable energy kicked off Tuesday creating a first-time opportunity for the country to display the important aspects of their recent developments.

ExpoNet Exhibition Ltd and Bangladesh Shipbuilders Association (BSA) jointly organised the show titled 'International Multi-Industrial Trade Show' in the city.

Industries Minister Dilip Barua inaugurated the fair as the chief guest with BSA president KM Mahmud-ur-Rahman in the chair.

Proper plans and cooperation of the public and private sectors are needed to establish a promising and big shipbuilding industry as the country has huge potentials, shipbuilders said.

They also stressed the need for backyard linkage industry for the shipbuilding industry for fast flourishing of the sector and boosting foreign currency earnings through value addition.

"Bangladesh is a unique place for investment and this is proper time for investment in the country," the minister said inviting the investors to invest in the thrust sectors.

The government is giving more incentives and advantages to foreign as well as local investors, he added.

Bangladesh has already enrolled her name in the glorious list of ship exporters, Mr Barua said adding "We want to be a new market leader in shipbuilding sector. We are getting huge offers of making green, eco-friendly ships even from the developed world."

RMG (ready made garment) sector took 25 years to earn US$ 10 billion a year but the shipbuilding sector could do the same in less than ten years if the ships were built properly, the minister said.

"Energy security is a must for attracting foreign investors," Svend Olling, ambassador of Denmark in Bangladesh, said.

Ten Danish companies have recently confirmed their decision to do joint venture business in Bangladesh, he said stressing mutual cooperation to face all challenges.

Many Chinese companies are in successful operation in Bangladesh, Chinese ambassador Zhang Xianyi said expressing the hope that Bangladesh would soon emerge as a big shipbuilding nation in the world.

 

[SpArK]

India, Bangladesh finalise deal on Teesta, Feni river waters​

Agreement expected to be signed during Manmohan's visit to Dhaka

In what is seen as a major development in India-Bangladesh relations, New Delhi and Dhaka have agreed to sign a 15-year interim accord on sharing the waters of common rivers Teesta and Feni.

This was decided at a Secretary-level meeting of the Indo-Bangladesh Joint River Commission (JRC) here Monday.

The agreement is expected to be signed during Prime Minister Manmohan Singh's visit to Dhaka this year, said Sheikh Wahid-uz-Zaman, Bangladesh Water Resources Secretary, who led the talks with the Indian delegation headed by his counterpart, Dhruv Vijai Singh.

Both Secretaries said the discussions included formulation of a working plan on the sharing of the waters of five other common rivers — Dharla, Dudhkumar, Manu, Khowai, Gumti and Muhuri.

They had a comprehensive discussion on the water sharing issues. They claimed they have “removed major barriers” and the agreed framework would be forwarded to the higher authorities.

This was the first time the neighbours agreed on a framework on sharing of the waters of the Teesta, Mr. Singh said. The leaders of the two countries, during the visit of Bangladesh Prime Minister Sheikh Hasina to New Delhi in January last year, “instructed us to resolve the issue,” he added.

“We agreed on a framework to sign an interim deal for 15 years on the sharing of dry-season water flows of the Teesta and Feni rivers, while some fine-tuning is needed; this would be done at the highest political-level discussion,” Mr. Wahid-Uz-Zaman, told journalists at a joint press briefing .

However, both Secretaries declined to divulge the formula of water sharing under the pact — a second major one after the Ganges Water Sharing Treaty signed during the erstwhile Awami League government.

The proposed treaty would be acceptable to both countries, he said.

The Hindu : News / National : India, Bangladesh finalise deal on Teesta, Feni river waters

 

[integra]

Shipbuilding industry eyes $100m earning this year

Kazi Azizul Islam

Bangladeshi shipbuilders are eying at least $100 million dollar proceeds from their overseas deliveries this year which will be a milestone in their efforts to build a billion-dollar ship export industry within the next few years.

Local shipbuilders are also developing their capacity to make larger and superior world-class vessels while international marine equipment suppliers have started entering the Bangladesh market.

In last two years, Bangladesh delivered three ships to Danish and German importers that fetched around $40 million in proceeds.

Officials of the Western Marine and Ananda Shipyards told New Age that they have schedules to deliver at least 10 ships to foreign buyers this year.

‘Six ships made in our docks will be delivered to foreign buyers this year and at least $60 million proceeds will be added to the country’s export revenue,’ said Saiful Islam, Managing Director of Western Marine Shipyards.

Abdullahel Bari, chairman of Ananda Shipyards, a pioneer in ship exporting, said they expected four deliveries this year.

‘The deliveries are expected fetch $50 million in export earning for the country,’ said Bari.

He said they had recently installed a 100-tonne plus capacity gantry crane at their shipyard, the largest in the county.

‘Installation of the gantry crane is a significant technological advancement for the country’s shipbuilding industry,’ he said.

Western Marine’s Saiful said at present they are making ships up to 5,600-tonne capacity, but they are at the final stage of negotiations with a European buyer for building a 7,500-tonne multi-purpose cargo vessel.

Saiful said they had acquired a 50-acre-plus river-shore land near Chittagong port for setting up a new dock which will make 15,000-tonne capacity vessels.

‘By mid-2013 we will start making ships with 15,000-tonne capacity or more,’ he said.

Industry observers said at least three more private owned shipyards have already renovated their units to build export-oriented ships, complying international industry standards.

One or two of them may start operation this year as they are in advanced stage of negotiation with foreign buyers.

Niladri Shekhar Talukder, in-charge, planning and design of Desh Shipbuilding at Chittagong told New Age that some shipbuilders are also negotiating with foreign buyers for supplying small passenger and multi-purpose ships and ferries.

Desh, which specializes in lighter but speedier aluminum ships, is in negotiation with buyers from Australia and UAE.

‘Aluminum ships are very convenient for commuting fast from one island to another, so such specialty ships have great demand in countries having many islands,’ said Niladri.

Bob Lo, business development director of Singapore-based marine equipment distributor, Aerotec, distributor of Korea’s Hyundai Corporation, told New Age that global marine equipment suppliers are now evaluating Bangladesh’s shipbuilding industry very seriously.

While attending an industrial and marine equipment exhibition at Hotel Sheraton on Wednesday, Bob informed that Hyundai, a major shipbuilder of the world and ship equipment manufacturer, has recently entered Bangladesh’s fast growing market of marine and shipbuilding equipments.

‘Global suppliers are foreseeing that shipbuilding industry in Bangladesh has got a momentum and it will grow and grow further,’ he said.

 

[CaPtAiN_pLaNeT]

Tk 128cr project to develop ecosystems in Sundarbans

Tk 128cr project to develop ecosystems in Sundarbans
unb

DHAKA, JAN 14: The government has taken an initiative to develop the ecosystems as well as production capacity of the Sundarbans, the world’s largest mangrove forest, by increasing its resilience against natural calamities. The Executive Committee of the National Economic Council (ECNEC) on Tuesday approved a Tk 128 crore project titled ‘Sundarbans Environmental and Livelihoods Security (SEALS)’ to achieve the objective. Of the total project cost, Tk 33 crore will come from the government exchequer, Tk 4 crore as NGO contribution while Tk 91 crore as project assistance in the form of grants from the European Commission (EC).

The objectives of the project also include creating alternative employment opportunities for the people living in and around the Sundarbans, said State Minister for Environment and Forests Dr Hasan Mahmud.

Talking to UNB correspondent Golam Moin Uddin over phone, he said that the project has been undertaken at a time when the Sundarbans is in the race for its inclusion in the world’s new seven wonders.

Hasan Mahmud said that the cyclone Sidr and Aila destroyed most of the establishments including the Forests Department offices in the Sundarbans. “Under the newly approved project, these will be rebuilt and the habitat will also be developed.”

He said that the project will also aims at creating alternative means of livelihood for the people living adjacent to the Sundarbans so that they will not have to rely only on the products of the mangrove forest. The work on the project will start as soon as possible and completed by December 2014, he added. The project will be implemented in five districts of two divisions – Khulna and Barisal – cover 17 upazilas. The upazilas are Mongla, Morelganj, Rampal and Sharankhola in Bagerhat district, Ashashuni, Kaliganj and Shymnagar in Satkhira, Batiaghata, Dakop, Koira and Paikgachha in Khulna, Bamna, Barguna sadar and Patharghata in Barguna and Bhandaria, Mathbaria and Nesarabad in Pirojpur.

The State Minister said that during the tenure of the previous Awami League government, another project titled ‘Protection of bio-diversity in the Sundarbans’ was approved at a cost of Tk 399 crore.

“But the work on the project were halted after three years due to irregularities,” he added.

The newly approved SEALS project covers holding seminars and workshops, publicity and documentary films, NGO activities, monitoring and evaluation (foreign), repair and procurement of speed boats and trawlers, pontoon gangway and jetty construction, office building construction, renovation and jetty renovation, pond excavation and rainwater reservoirs.

The total area of the Sundarbans in Bangladesh part is around 6,000 square kilometers. The Sundarbans was declared a reserve forest in 1875 and as a world heritage site in 1997. The sociopolitical importance of the Sundarbans is also immense as around 600,000 people dependent on it directly or indirectly for their livelihood. Rivers and canals in the Sundarbans, spreading over some 12,000 kilometers area, are also rich in fish resources.

 

[CaPtAiN_pLaNeT]

New Age | Newspaper

Shipbuilding industry eyes $100m earning this year

A file photo shows a ship, built by a local shipbuilder for a Danish buyer, anchored at the Chittagong port dry dock recently. — New Age photo

Kazi Azizul Islam

Bangladeshi shipbuilders are eying at least $100 million dollar proceeds from their overseas deliveries this year which will be a milestone in their efforts to build a billion-dollar ship export industry within the next few years.

Local shipbuilders are also developing their capacity to make larger and superior world-class vessels while international marine equipment suppliers have started entering the Bangladesh market.

In last two years, Bangladesh delivered three ships to Danish and German importers that fetched around $40 million in proceeds.

Officials of the Western Marine and Ananda Shipyards told New Age that they have schedules to deliver at least 10 ships to foreign buyers this year.

‘Six ships made in our docks will be delivered to foreign buyers this year and at least $60 million proceeds will be added to the country’s export revenue,’ said Saiful Islam, Managing Director of Western Marine Shipyards.

Abdullahel Bari, chairman of Ananda Shipyards, a pioneer in ship exporting, said they expected four deliveries this year.

‘The deliveries are expected fetch $50 million in export earning for the country,’ said Bari.

He said they had recently installed a 100-tonne plus capacity gantry crane at their shipyard, the largest in the county.

‘Installation of the gantry crane is a significant technological advancement for the country’s shipbuilding industry,’ he said.

Western Marine’s Saiful said at present they are making ships up to 5,600-tonne capacity, but they are at the final stage of negotiations with a European buyer for building a 7,500-tonne multi-purpose cargo vessel.

Saiful said they had acquired a 50-acre-plus river-shore land near Chittagong port for setting up a new dock which will make 15,000-tonne capacity vessels.

‘By mid-2013 we will start making ships with 15,000-tonne capacity or more,’ he said.

Industry observers said at least three more private owned shipyards have already renovated their units to build export-oriented ships, complying international industry standards.

One or two of them may start operation this year as they are in advanced stage of negotiation with foreign buyers.

Niladri Shekhar Talukder, in-charge, planning and design of Desh Shipbuilding at Chittagong told New Age that some shipbuilders are also negotiating with foreign buyers for supplying small passenger and multi-purpose ships and ferries.

Desh, which specializes in lighter but speedier aluminum ships, is in negotiation with buyers from Australia and UAE.

‘Aluminum ships are very convenient for commuting fast from one island to another, so such specialty ships have great demand in countries having many islands,’ said Niladri.

Bob Lo, business development director of Singapore-based marine equipment distributor, Aerotec, distributor of Korea’s Hyundai Corporation, told New Age that global marine equipment suppliers are now evaluating Bangladesh’s shipbuilding industry very seriously.

While attending an industrial and marine equipment exhibition at Hotel Sheraton on Wednesday, Bob informed that Hyundai, a major shipbuilder of the world and ship equipment manufacturer, has recently entered Bangladesh’s fast growing market of marine and shipbuilding equipments.

‘Global suppliers are foreseeing that shipbuilding industry in Bangladesh has got a momentum and it will grow and grow further,’ he said.

 

[CaPtAiN_pLaNeT]

Drug makers double sales in three years

Drug makers double sales in three years

Sajjadur Rahman

Top medicine makers recorded robust growth last year at an average 25 percent, riding on people’s growing health awareness and purchasing power, according to the market players.

Also, increased rural penetration of the manufacturers and a significant development in healthcare sector have contributed to the growth.

Bangladesh medicine sales reached Tk 3,700 crore three years ago, which nearly doubled to

Tk 7,000 crore in 2010. The industry players forecast the growth trend would take the sales volume to Tk 10,000 crore in 2011.

Square, Beximco, Eskayef, Incepta and Acme are the top five manufacturers by sales and growth rate.

Beximco grew faster than other companies at a staggering 33 percent in 2010 with Tk 523 crore sales.

Incepta’s sales and growth rate were Tk 665 crore and 31 percent respectively, followed by Acme’s Tk 600 crore and 17 percent.

Eskayef logged Tk 426 crore in sales and the growth rate was 27 percent, the third highest pace in the year, said a company official.

“Increasing health consciousness and buying capacity have helped the industry grow consistently,” said Mizanur Rahman Sinha, managing director of Acme Pharmaceuticals, one of the fastest growing manufacturers.

Sinha predicts the industry’s total sales at Tk 10,000 crore in the current year.

Managing Director of Incepta Pharmaceuticals Abdul Muktadir echoed the same reason for the market growth, but he is not surprised to see the success.

Muktadir said 5 percent GDP growth helps the pharma industry grow at 15 percent, and 6 percent and 7 percent growth makes it 20 percent and 25 percent respectively.

Sales of Square Pharmaceuticals, the market leader, were Tk 1,270 crore in 2010, up from Tk 1,116 crore a year ago. Sales grew 14 percent year-on-year .

AM Faruque, managing director and chief executive officer of Apex Pharma, finds Bangladesh market to be a potential one. He thinks affordability and availability of medicines will help the market boom in the next few years.

Faruque said Apex Pharma, which is not a big player now, will emerge as one of the top five companies in five years. The present turnover of the company is Tk 60 crore only.

“Apex is coming in a big way,” said Faruque.

Bill Mckean, a UK pharmacist who has recently joined Apex Pharma as its chief technical officer, sees a huge prospect and high-quality players in the local market.

According to him, a large population and relaxation of trade related intellectual property rights (TRIPS) for least developed countries are contributing to the market growth.

Business Monitor International in its latest report (Q1 2011) said Bangladesh has moved up one place to occupy the 14th position in 17 regional markets surveyed in BMIs Pharmaceutical & Healthcare Business Environment Ratings for the Asia region.

Still, Bangladesh has a long way to go, the report said.

This adjustment now sees Bangladesh placed below Vietnam and above Sri Lanka. Bangladesh’s pharmaceutical rating is 40.2 out of 100, a figure that has changed marginally from the previous quarter but remains lower than the regional average of 53.1. Globally, Bangladesh occupies 67th position in BMIs 83 market-strong pharmaceutical universe.

 

[CaPtAiN_pLaNeT]

Biman raises $357m fund for two Boeing aircraft


Biman is going to raise a $357 million fund from financial institutions to get the delivery of two Boeing aircraft in this November. In 2008, Biman signed a deal with Boeing for four 777s, four 787s and two 737s aircraft, involving $2.5 billion. The two aircraft will be delivered in October and November upon the payment, — bdnews24.com

 

[CaPtAiN_pLaNeT]

Chinese investments in Bangladesh industrial sector to grow: envoy

New Age | Newspaper
Font size: Decrease font Enlarge font

Staff Correspondent

The Chinese ambassador in Dhaka, Zhang Xianyi, on Sunday said Bangladesh might see increased Chinese investments in various industrial sectors very soon.

Investors of his country are eying power generation, IT, readymade garments, textiles and home appliance manufacturing sectors in Bangladesh, Zhang told a gathering of foreign investors in Dhaka.

‘Discussions are being continued regarding joint-ventures and direct investments… So investments are expected to be coming soon,’ said Zhang, who was the guest speaker at the monthly Luncheon meeting of Foreign Investors’ Chamber of Commerce and Industry at Sonargaon Hotel.

China received more than $100 billion in FDI last year while Chinese investors also invested around $50 billion across the world. But Bangladesh’s share there remained very insignificant.

The Chinese envoy was optimistic about the industrial future of Bangladesh as, he opined, export industries here have abundant scopes for growing further.

With a robust growth in export earnings, Bangladesh’s economy can be included in the list of the world’s top 30 economies within next two decades, observed the Chinese envoy.

China is the number one source for Bangladeshi importers, mainly of industrial raw materials, both for domestic and export-oriented industries while imports of consumer goods are also very significant.

Ambassador Zhang admitted that the huge trade gap between China and Bangladesh should be reduced and suggested that Bangladeshi exporters need to maximize utilization of their easy market access into China.

In January-November 2010, bilateral trade amounted worth $6.2 billion dollar with 52 per cent year-on-year growth while Bangladesh’s exports to China amounted $230 million, growing by 87 per cent.

China is a huge market and from July last year that market provided zero-duty access to nearly five thousand products for Bangladeshi exporters, he recalled. ‘Chinese market is open for you now, so increase your sales there.’

The Chinese envoy stressed on enhanced regional connectivity to facilitate smooth intra-region movements of goods and people.

Zhang hoped that a regional conference scheduled in Kunming, the southeastern Chinese city, on 19th of this

month may bring some progress in regional cooperation on increasing trade and enhancing connectivity.

Deputy foreign ministers of Bangladesh, China and Myanmar and senior government representatives from India and Nepal are expected to attend the conference.

The FICCI president, AM Hamim Rahmatullah, said that there should be more private Chinese investments in Bangladesh as the market is big here and investment and trade regimes are by far the best in the region.

Lin Weiqiang, economic and commercial counselor at the Chinese embassy in Dhaka, also spoke at the luncheon.

 

[integra]

Steelmaker plans big

Arun Bikash Dey, Ctg

PHP Group moves to expand and diversify, as it plans to make a strong foothold in the country’s steel industry. The company has recently acquired a steel mill at Ghorashal, AMK Steels Mill, to produce deformed bar.

“We wanted to expand our steel industry. At present we produce corrugated iron sheet in our PHP Cold Rolling Mills and PHP Continuous Galvanising Mills. Now we are going to make deformed bar in the new mill,” says Zahirul Islam, managing director of PHP Ispat Ltd, a sister concern of the group.

Islam shares his views with The Daily Star on the company’s latest move.

AMK Steels Mill that produces thermo mechanical treatment deformed bar was established in 2005. “The company was facing some problems, and those were hard for the company to avoid. So we acquired it for a renovation,” says Islam.

The net asset value of AMK Steels is around Tk 75 crore and the total asset value of the two mills is Tk 1,000 crore.

AMK Steels has been renamed PHP Ispat after acquisition.

PHP Cold Rolling Mills is the first of such mill in the country that started operations in 1999 and PHP Continuous Galvanising Mills started operations in 2001.

These two mills produce nearly 15,000 tonnes of corrugated iron sheet a month, meeting around 40 percent demand of the country. “Our annual turnover from the mills is Tk 2,000 crore.”

PHP Arabian Horse and PHP Arabian Horse Super are the two brands of the company’s tins.

The official says they expect an increase in annual turnover by Tk 500 crore with the latest acquisition.

The country needs nearly 17 lakh tonnes of thermo mechanical treatment deformed-bar and 60-grade bar a year, according to Bangladesh Re-rolling Mill Owners’ Association.

“We expect to produce one lakh tonnes a year and reach the three-lakh-tonne mark in the second or third year,” Islam says. “We hope to meet about 7 percent of Bangladesh’s total demand initially.”

The company exports its PHP Arabian Horse and PHP Arabian Horse Super tins to Europe and Africa. In case of deformed bar, he says the company targets to fulfil the domestic demands at first, as the country still depends on imports.

Islam says steel is one of the important sectors in Bangladesh. “The demand for rod will increase on a regular basis. We are heading to become a developed nation. So we want to produce the best quality rods and fulfil the country’s entire demand.”

“If we take initiatives to make best quality products then our competitors will also do so,” Islam says. “This healthy competition will let our people buy quality rods at competitive price.”

---------- Post added at 01:26 PM ---------- Previous post was at 01:25 PM ----------

Plan to finance $120m to set up economic zones
Plan to finance $120m to set up economic zones

DHAKA, Jan 18 (BSS) – The World Bank (WB) in collaboration with DFID and IFC will finance US$ 120 million to the proposed Private Sector Development Support Project (PSDSP) to set up economic zones in the country.

The US$ 120 million project aims to create a sustainable industrialization model by developing a public private partnership (PPP) approach to investment in zones.

The WB and Department for International Development (DFID) and International Finance Corporation (IFC) have successfully concluded negotiation for the PSDSP this month, according to a WB statement issued today.

The Investment Climate Assessment for Bangladesh identified lack of serviced land and quality infrastructure as the two recurring constraints for private sector development.

Economic Zones can be an important tool for attracting private investment, generating employment and accelerating economic growth.

Economic Zones will create increased linkages with the domestic economy by broadening and building on Bangladesh’s positive experience with Export Processing Zones.

The Government and the World Bank have agreed on Kaliakoir as the first site for developing an Economic Zone. The chosen site at Kaliakoir is Government- owned and no resettlement of people is needed.

The site is fenced, already semi-developed and over 50 percent of the land is elevated and requires no land fill. The site is also strategically located to take advantage of the rail link to the airport and Dhaka city.

The proposed project will finance public sector investment in infrastructure for the development of serviced land and leverage private financing for Economic Zone development.

The initiative will also focus on human resource development and better compliance with environmental and social standards.

---------- Post added at 01:26 PM ---------- Previous post was at 01:26 PM ----------

/////////////////////////////////////////////////////////

 

[integra]

BD signs deal with Ital-Thai

Dhaka, Jan 19 (bdnews24.com)—Bangladesh has signed a deal with Italian Thai Development Public Co Ltd to build an elevated expressway in Dhaka.

Secretary of the bridges division Mohammad Mosharraf Hossain, on behalf of Bangladesh government, and Premchai Karnasuta, on behalf of the contractor company, signed the deal in the capital's Pan Pacific Sonargaon Hotel on Wednesday.

The four-lane 26-kilometre elevated expressway will be built from Shahjalal International Airport to Kutubkhali on the Dhaka-Chittagong highway via Kuril, Banani, Mohakhali, Tejgaon, Satrasta, Maghbazar, Kamlapur, Khilgaon and Golapbagh.

The main expressway will stretch 21 kilometres with two five-kilometre links. One will be from Manik Mia Avenue to the Satrasta intersection and the other stretching from Palashi intersection to Maghbazar.

The final tender was called on Nov 23 last year.

Earlier the company had filed a case with the High Court challenging the tender process of one of its major competitors, Sikder Real Estate. The court later imposed a ban on the appointment of a contractor for the expressway.

The commerce ministry took an initiative to sign the deal with the company once the injunction was withdrawn on Jan 2.

The cabinet on Jan 10 approved Ital-Thai for building the Tk 140 billion elevated expressway.

As per the terms, the contractor will bear 70 percent of the expenses while the government will bear the remaining amount.

Vehicles will need to pay toll to use the expressway. Cars, sport utility vehicles (SUV), and microbuses will have to pay Tk 125, while the charges will be double for buses and four to six times more for trucks.