Tmac nice pictures of DEPZ. Following news should be encouraging for DEPZ and its potential investors.

United Group to invest US$ 32m to set up 40MW Power Plant in DEPZ

Bangladeshi United Group is going to set up a 40MW Generation Power Plant in Dhaka EPZ in the name of M/s. Malancha Holdings Ltd.
This locally financed service oriented Power Plant Industry will invest US$ 32 million aims to uninterrupted power supply to the operating enterprises of Dhaka Export Processing Zone including adjacent area on the basis of need during peak and off peak hours. Malancha Holding Company of United Group will establish this 40 MW power plant within 8,000 sq. meter area, i.e. it will produce 360 million KWH electricity. Initially this power plant will meet the existing requirement for 36 MW power during the peak hours of the 88 operating enterprises of Dhaka EPZ which will be extended in future and it will also supply standard electricity service to the adjacent area during the off peak hours, if any surplus. As utilities 6,000 liter water and 67 cubic meter gas will be used in this power generation industry. 36 Bangladeshi nationals including 01 foreign national will get employment opportunity in this company.
An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the United Group on Sunday. Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Hasan Mahmood Raja, Chairman of United Group signed the lease agreement on behalf of their respective organizations.
Among others Brig. General Ashraf Abdullah Yussuf, Executive Chairman, Member (Engineering) Md. Forhad Uddin, General Manager (Investment Promotion) AZM Azizur Rahman, Chief Accounts & Finance Officer S. Mahmood Yunus, General Manager (Maintenance) Mosharaf Hossain, Deputy Generaf Manager (Public Relations) Mrs. Nazma Binte Alamgir, Manager (Industrial Relations) Abdus Sobhan of BEPZA and Director of United Group KM Ahsan Shamim were present at the signing ceremony.It may be mentioned that in the 25th BEPZA Board of Governors Meeting, the decision bas been taken that the authority would allow private company to operate power generation plant as service oriented enterprises in EPZs to ensure uninterruoted oower suoolv.


http://www.thebangladeshtoday.com/economy.htm#economy-02

Have you seen how many times insurgents attacked Indian pipe lines? Despite Assam being oil rich region India was unable to tap into the benefit. Prime reason is insurgency.

Let’s evolve scenario about how India insurgency could be Bangladeshi nightmare. Insurgents don’t care its 50 mile south or 100 mile south their target is Indian interest. Insurgent could attack pipe line and don’t worry about Bangladesh reaction because Bangladesh don’t have jurisdiction to pursue them beyond its border. And insurgents are used to indian reaction for 30 years.

You can see Bangladesh will be in cogmire – it could not pursue insurgents with force and it would not able to withdrew itself from pipeline because indian threat (its strategic economic interest is involved). Being a smaller country, hosting this pipe line will not give Bangladesh any leverage over India period. INFACT pipeline will diminish whatever leverage Bangladesh has. A simple pipeline does not give or add any leverage, you need to have lots of other things to back it up. You have to live in reality - Bangladesh is smaller and weaker. If indian strategic interest is affected then what do expect India would do? Does Bangladesh have enough to withstand such scenario? If Bangladesh was not able to stand up for its rightful share of water or land or island in last 30 years, what makes you think Bangladesh will have leverage over India?

People who run country and make policy should not think this as a typical business case as you are thinking. Nor should they consider the proposal in light of today, they should do worse case scenario analysis and use their critical thinking. National interest is much more than few million dollars and I just mentioned security, long term strategic interest. But there are many other strategic consideration.

Economic opportunity? What economic opportunity? Besides, $250 million yearly fee I have not seen any other economic justification.

Well first of all what happened in India, happened in the home region, its not like kashmir where fighting spilled over into other regions. The Assamese insurgency is strictly concerned about assamese interests and since the gas is not coming from Assam I doubt it would be a target.

And frankly speaking a lot of the insurgents have strong links to Bangladesh. Attacking Bangladesh would only hurt their position significantly as they would loose a current safe haven. Doing this would probably spell their doom as now they would have no where to hide. Its these kind of political and logistical reasons which makes me doubt that this is even an issue.

And really, this paranoia of the neighbour is extremely disturbing and prevalent in both sides of the border and mostly unjustified. You talk to Indian and they se Bangladesh as a huge threat and then when you talk Bangladeshi's they will tell you that they feel India is a huge threat. Whats happened is governments and people on both sides re so biased towards their own view that they completely fail to realize that the opposition may have some justification for their views. The fact is India is our neighbour, and overwhelmingly so, so sooner or later, if we want to really develop, we will have to start working with India. And to do that, there must first be confidence building measures and someone must take the lead. Having the pipeline run through Bangladesh and feed Indias huge thirst for energy is just such a measure. You may not like it cause you feel that Bangladesh needs to get them back for what they did in the past, but thats only because you are biased.

And also having a pipeine run through the country is absolutely no big deal. If Bangladesh doesn't like it, it can just turn off the pipe. India will never be able to legally attack Bangladesh militarily hence that is never a threat. The worse that can happen is India boycotts Bangladesh but if the situation ever gets to the point where Bangladesh has to turn off the pipeline than the situation is extremely bad already. And how does a pipeline not give you leverage. You are holding the keys to an extremely impotant energy source that the neighbouring nations economy is based on. That is huge leverage.

This deal isn't against national interest. You gain leverage over India, you build confidence with your neighbour and work towards a partnership rather than a competition, and most of all, you get money from it. The stuff you are pointing is plainly out of sync with reality and is just propoganda that politicians on both side of the border use for their personal gains so that they don't have to bear the brunt of the responsibility for their actions. When they have failed, they just blame it on the neighbour and sadly they easily manage to fool and brainwash the population.

Bangladesh has lots of issues with India. If you look at the last 36 year old history with India, you will find that India has been manipulating BD's interests in every possible ways through out that time. They have a history of breaking promises and treaties. Ganges water treaty is just one example. Even today BD is not given what was promised in the water share treaty. International trade depends on reciprocity but with India it is one-way, all the way. India has always behaved like a big brother with BD. Given the past history I would take India's promises with very little weight, if any at all. We need money for sure but we need to consider lots of points before committing ourselves in any deal.

Personally I wouldn't allow India to use our territory until India voluntarily solves most of the outstanding issues with us and we are COMPLETELY satisfied that they have changed their policies and mindset. Anything less would be a national suicide.

:applause:

Well first of all what happened in India, happened in the home region, its not like kashmir where fighting spilled over into other regions. The Assamese insurgency is strictly concerned about assamese interests and since the gas is not coming from Assam I doubt it would be a target.

And frankly speaking a lot of the insurgents have strong links to Bangladesh. Attacking Bangladesh would only hurt their position significantly as they would loose a current safe haven. Doing this would probably spell their doom as now they would have no where to hide. Its these kind of political and logistical reasons which makes me doubt that this is even an issue.

And really, this paranoia of the neighbour is extremely disturbing and prevalent in both sides of the border and mostly unjustified. You talk to Indian and they se Bangladesh as a huge threat and then when you talk Bangladeshi's they will tell you that they feel India is a huge threat. Whats happened is governments and people on both sides re so biased towards their own view that they completely fail to realize that the opposition may have some justification for their views. The fact is India is our neighbour, and overwhelmingly so, so sooner or later, if we want to really develop, we will have to start working with India. And to do that, there must first be confidence building measures and someone must take the lead. Having the pipeline run through Bangladesh and feed Indias huge thirst for energy is just such a measure. You may not like it cause you feel that Bangladesh needs to get them back for what they did in the past, but thats only because you are biased.

And also having a pipeine run through the country is absolutely no big deal. If Bangladesh doesn't like it, it can just turn off the pipe. India will never be able to legally attack Bangladesh militarily hence that is never a threat. The worse that can happen is India boycotts Bangladesh but if the situation ever gets to the point where Bangladesh has to turn off the pipeline than the situation is extremely bad already. And how does a pipeline not give you leverage. You are holding the keys to an extremely impotant energy source that the neighbouring nations economy is based on. That is huge leverage.

This deal isn't against national interest. You gain leverage over India, you build confidence with your neighbour and work towards a partnership rather than a competition, and most of all, you get money from it. The stuff you are pointing is plainly out of sync with reality and is just propoganda that politicians on both side of the border use for their personal gains so that they don't have to bear the brunt of the responsibility for their actions. When they have failed, they just blame it on the neighbour and sadly they easily manage to fool and brainwash the population.


Zaki is completely right on this one. Bangladesh is nonetheless going to have to work with India. It is inevitable if we want a brighter future. So far Khaleda Zia has tried to build a partnership with India before she had left office and if we continue to expand upon this, toomra dekba khemon Bangladesh hobee. You have my utter support Zaki, keep up the good work!

^^ Khaleda tried to build a partnership with India?

Bangladeshi political history lesson #1: AL is pro-India (it always has been), not BNP.

BNP in fact did a good job by stalling the Tata investment proposal because it would actually not benefit us, just benefit Tata because we would be supplying gas to them at a below market rate for years and years. BNP was cautious of India....which is one of the few things people in Bangladesh give them credit for.

Well first of all what happened in India, happened in the home region, its not like kashmir where fighting spilled over into other regions. The Assamese insurgency is strictly concerned about assamese interests and since the gas is not coming from Assam I doubt it would be a target.


First of all you demonstrated that you do not have complete grasp of the dynamics of insurgency. So let me enlighten you with an example. India got involved with Srilankan Tamil insurgency never thought it could affect them directly. Well they had a rude awakening when Tamil insurgents/terrorist killed their prime minister. Regardless of your doubt (which does not mean anything) risk factors are well defined.

And frankly speaking a lot of the insurgents have strong links to Bangladesh. Attacking Bangladesh would only hurt their position significantly as they would loose a current safe haven. Doing this would probably spell their doom as now they would have no where to hide. Its these kind of political and logistical reasons which makes me doubt that this is even an issue.

Now you are talking in language of indian propaganda. When you saying “insurgents has link to Bangladesh” I and almost all Bangladeshi has right to ask you to provide the PROOF. Successive Bangladeshi govt has offered India helicopter and to show where insurgents are within Bangladeshi terriitory, India failed to turn up; let alone any proof. And HOW you discovered Bangladeshi connection and safe haven????? One should wonder WHAT makes you singing indian haox tune??????

Perhaps, one can conclude where your allegiance belongs!!!

And really, this paranoia of the neighbour is extremely disturbing and prevalent in both sides of the border and mostly unjustified. You talk to Indian and they se Bangladesh as a huge threat and then when you talk Bangladeshi's they will tell you that they feel India is a huge threat. Whats happened is governments and people on both sides re so biased towards their own view that they completely fail to realize that the opposition may have some justification for their views. The fact is India is our neighbour, and overwhelmingly so, so sooner or later, if we want to really develop, we will have to start working with India. And to do that, there must first be confidence building measures and someone must take the lead. Having the pipeline run through Bangladesh and feed Indias huge thirst for energy is just such a measure. You may not like it cause you feel that Bangladesh needs to get them back for what they did in the past, but thats only because you are biased.

Bangladesh and its citizen have every right to be fearful of indian intention and exercise its critical judgment. Its not indian BUT Bangladeshis who has been subject to hostile indian action for last 36 years. Most prominent voice with “joy Bangla” slogan (you know who that is) trusted India and gave Bangladesh consent to start Farakka dam on experimental basis. And look where does Bangladesh stand? North western Bangladesh turned into virtual desert, arsenic level in water claiming lives; ecological disaster is in full progress. That is just one example of one bad and short sighted decision. Bangladeshi land, river, island and lives had been victim of indian hostile acts. As we speak every day Bangladeshis are killed by India in the border. Bangladeshi criminals are patronized by India, list goes on….. Through out 36 years of history India has been hostile towards Bangladesh. No one saying not have friendly relation with India but friendship can not be one sided. BUT burden of healing wound created by indian hostility is squarely on india’s shoulder. Why should Bangladesh pay with its national and strategic interest to sway some hostile neighbor ; When we already tried for 36 years. This is utterly inferior mentality thinking that Bangladesh can not develop without giving in to indian irrational and impractical demands. Bangladesh has done well (in fact in some social and economic development indicators done better than India) even with indian trade restriction. So, no need over reach with submissive mentality. If India can overcome its hostile act finding Bangladesh as friend is very easy.

And we have to stick by the motto “forgive but don’t forget”. And it’s not about getting back to India it’s about protecting Bangladesh national interest, just like any other nation.


And also having a pipeine run through the country is absolutely no big deal. If Bangladesh doesn't like it, it can just turn off the pipe. India will never be able to legally attack Bangladesh militarily hence that is never a threat. The worse that can happen is India boycotts Bangladesh but if the situation ever gets to the point where Bangladesh has to turn off the pipeline than the situation is extremely bad already. And how does a pipeline not give you leverage. You are holding the keys to an extremely impotant energy source that the neighbouring nations economy is based on. That is huge leverage.

You are entitled to your narrow scope of understanding. BUT that can not be basis for national consideration; not when national interests are at stake. I am even surprise to see naïve comments like “India will never be able to legally attack Bangladesh militarily” – As I explained before in an equation of small and big country legality has nothing to do with stronger/bigger country attacking the weaker one. What legal basis US had attacking Iraq? Here is interesting news for you if India boycott Bangladesh, Bangladesh will loose only $284 million of export but India will loose more than $5 billion or its 5th (legal and illegal trade) largest export market. Bangladesh can afford $284 million but for India it will be hard to swallow. Rest of indo-BD relation is pretty much shut for last 36 years, so no loss there.

This deal isn't against national interest. You gain leverage over India, you build confidence with your neighbour and work towards a partnership rather than a competition, and most of all, you get money from it. The stuff you are pointing is plainly out of sync with reality and is just propoganda that politicians on both side of the border use for their personal gains so that they don't have to bear the brunt of the responsibility for their actions. When they have failed, they just blame it on the neighbour and sadly they easily manage to fool and brainwash the population.

These are all nice rhetoric but reality as I have explained now and before are much more different. It’s obvious your need to gain much more strategic understanding before fully comprehend geo politics and strategy. Hope you take time and gain understanding.

I know we Bengalis are as passionate about politics as anyone else, but let's chill, gentlemen :cheers: .

My own geopolitical knowledge may be imperferct, but I do know that issues such as politics and religeon are areas where people seldom change their viewpoint. These viewpoints are the product of our upbringing and life experiences, and won't be changed by this discussion. Since both viewpoints on this pipeline have been expressed, why don't we move on to something else? Getting mad at each other really won't have the least effect in changing anyone's mind.

Snoq, while it's great to have you here participate with so much passion it's kind of strange that 8 out of 10 of your posts are about how India is bad. Your opinion is your opinion but surely you have something more than that to offer to this forum.

I don't think it's fair for you to continuosly mention that Zaki needs to learn the real truth. Why should we believe you and not Zaki?

Tmac, its about timing. Time when I stated discussion I saw one sided discussion and felt need to shed light on other side of Bangladeshi interest. You may see my post as "india bad" but I have given plenty examples to back up my points. And everyone entitled to his or her opinion.

As for contributing on the forum (If I am allowed to) I intend to do so. I am waiting to have all threads settles into new sub forum. One topic in my mind is "Integrated Urban Development in Bangladesh".

^^ That's great. But please, leave personal attacks out. This forum exists for discussion in a civil manner. There is room for more than one viewpoint here. You can make your arguments without flaming someone else.

Tmac, its about timing. Time when I stated discussion I saw one sided discussion and felt need to shed light on other side of Bangladeshi interest. You may see my post as "india bad" but I have given plenty examples to back up my points. And everyone entitled to his or her opinion.

As for contributing on the forum (If I am allowed to) I intend to do so. I am waiting to have all threads settles into new sub forum. One topic in my mind is "Integrated Urban Development in Bangladesh".

looking forward to having another active forumer.

First of all you demonstrated that you do not have complete grasp of the dynamics of insurgency. So let me enlighten you with an example. India got involved with Srilankan Tamil insurgency never thought it could affect them directly. Well they had a rude awakening when Tamil insurgents/terrorist killed their prime minister. Regardless of your doubt (which does not mean anything) risk factors are well defined.

Bangladesh is not gonna send a peace keeping force in India and actualy interfere with assamese rebel so i fail to see how the two are related. Infact there isn't any cconnection at all. Pakistan is giving transit for an oil pipeline through its territory, are they gonna be attacked by these rebels now? You fail to see the difference between two very different situations cause of your own bias political views. Everything comes with a risk. Now if you overeaggerate a risk just cause you feel you have some score to settle, then thats gonna be a problem.

Now you are talking in language of indian propaganda. When you saying “insurgents has link to Bangladesh” I and almost all Bangladeshi has right to ask you to provide the PROOF. Successive Bangladeshi govt has offered India helicopter and to show where insurgents are within Bangladeshi terriitory, India failed to turn up; let alone any proof. And HOW you discovered Bangladeshi connection and safe haven????? One should wonder WHAT makes you singing indian haox tune??????

Perhaps, one can conclude where your allegiance belongs!!!

Do you really believe that shit the BNP has been shoving dowwn your throat. Are really that naive to think that maybe they might not have been telling the complete truth. Until you come out of the country and check some unbiased media that isn't controlled by some political party trying to save its ass you shouldn't be talking. You can deny it all you want but if you stop using just the info some party gives you and start thinking with your brain, you will see that having bases in Bangladesh isn't so impossible. And infact recently the caretaker government has signed a deal with India to tackle this problem as it is a REAL problem. What you are doing is exactly what i described and exactly the reason why this region has been doing so poorly for so long. Your so brainwashed and stuck into believing what you ve been told that you can't seem to step out of your shoes and see things from a nuetral perspective. I don't need to proove my allegiance. Just the fact that i want to see Bangladesh prosper instead of trying to settle some score should be proof enough of where my allegiance lies.

Bangladesh and its citizen have every right to be fearful of indian intention and exercise its critical judgment. Its not indian BUT Bangladeshis who has been subject to hostile indian action for last 36 years. Most prominent voice with “joy Bangla” slogan (you know who that is) trusted India and gave Bangladesh consent to start Farakka dam on experimental basis. And look where does Bangladesh stand? North western Bangladesh turned into virtual desert, arsenic level in water claiming lives; ecological disaster is in full progress. That is just one example of one bad and short sighted decision. Bangladeshi land, river, island and lives had been victim of indian hostile acts. As we speak every day Bangladeshis are killed by India in the border. Bangladeshi criminals are patronized by India, list goes on….. Through out 36 years of history India has been hostile towards Bangladesh. No one saying not have friendly relation with India but friendship can not be one sided. BUT burden of healing wound created by indian hostility is squarely on india’s shoulder. Why should Bangladesh pay with its national and strategic interest to sway some hostile neighbor ; When we already tried for 36 years. This is utterly inferior mentality thinking that Bangladesh can not develop without giving in to indian irrational and impractical demands. Bangladesh has done well (in fact in some social and economic development indicators done better than India) even with indian trade restriction. So, no need over reach with submissive mentality. If India can overcome its hostile act finding Bangladesh as friend is very easy.

And we have to stick by the motto “forgive but don’t forget”. And it’s not about getting back to India it’s about protecting Bangladesh national interest, just like any other nation.


Again your are completely bias and just further proof why development is stalled in this region. If you stepped out of your little box for a second you would realize that Indians have just as much right to feel threatened by banlgadesh as Bangladesh has from India. Illegal immigration from Bangladesh is completely changing the demographics in India's northeastern states. This is not just a small shift but a huge social shift. If Indians were coming into your country and taking your jobs wouldnt you feel threatened as well. Claiming that its all their fault is just acting like a two year old. Once your a little more mature you will understand that its important to notice, address, and take responsibility your mistakes, not just point out theirs, if you want to reach a solution.

And why the hell should the burden be on India. They are a massive country with many other borders. We are completely surrounded by them. Cooperating with India does not make us submissive. You know why regions like europe and south east asia are prospering. Cause they realize the significance of working with their neighbours and not squabling over the past.

You are entitled to your narrow scope of understanding. BUT that can not be basis for national consideration; not when national interests are at stake. I am even surprise to see naïve comments like “India will never be able to legally attack Bangladesh militarily” – As I explained before in an equation of small and big country legality has nothing to do with stronger/bigger country attacking the weaker one. What legal basis US had attacking Iraq? Here is interesting news for you if India boycott Bangladesh, Bangladesh will loose only $284 million of export but India will loose more than $5 billion or its 5th (legal and illegal trade) largest export market. Bangladesh can afford $284 million but for India it will be hard to swallow. Rest of indo-BD relation is pretty much shut for last 36 years, so no loss there.



These are all nice rhetoric but reality as I have explained now and before are much more different. It’s obvious your need to gain much more strategic understanding before fully comprehend geo politics and strategy. Hope you take time and gain understanding.

Again you link situations that have no connection. India is no US, and Bangladesh isn't run by a Saddam Hussein. The US can afford to barge into another country because it pretty much controls the world, India doesn't control shit. Attacking Bangladesh would only mean negatives for India. They will loose their international standing, it will cost them billions, they will have to deal with a population that will never submit, etc. etc. See the Indian politicians maybe corrupt but they aren't retarded. And the trade boycott, you clearly struggling to read so let me restate what i said and you can ponder about it for a little longer. I said the trade boycott is the absolute worst thing India can do, i never said they will definitely do it.

And really, I am not really surprised this kind of naive and misinformed perspective exists. I have seen such things from Indians as well hence explaining the absolutely disgusting state of Northeast India and Bangladesh. I just hope (and the signs do seem to point that way) that the current and future governments aren't so retarded and understand the significance of cooperation and mutual understanding for the development of the region. And i really do hope the politicians who spew out this kind of pure propaganda are no longer allowed to run so that people like you who are easily swayed and make up your mind based upon crap you hear rather than using your brain aren't misguided any longer. And maybe once you ve explored some unbiased sources of information and actually thought things through using your own brain, you can come talk about geopolitics in a civilized manner.

Tmac, its about timing. Time when I stated discussion I saw one sided discussion and felt need to shed light on other side of Bangladeshi interest. You may see my post as "india bad" but I have given plenty examples to back up my points. And everyone entitled to his or her opinion.

As for contributing on the forum (If I am allowed to) I intend to do so. I am waiting to have all threads settles into new sub forum. One topic in my mind is "Integrated Urban Development in Bangladesh".

Anyways listen, I am glad to see another Bangladeshi forumer here and hope you will be active. My previous post may have had some personal attacks and for that i appologize. It was just a heated discussion and i really just got too into it enjoyed it. Its good to debate. Anyways as for this issue, i guess its just best if we agree to disagree since we both seem to be quite entrenched in our views.

Guys, really, cool it! (and no, I can't order anyone, it's just a request)

^^ That's great. But please, leave personal attacks out. This forum exists for discussion in a civil manner. There is room for more than one viewpoint here. You can make your arguments without flaming someone else.

Tanzirian, I might be hard on emphasizing some points.


And frankly speaking a lot of the insurgents have strong links to Bangladesh. Attacking Bangladesh would only hurt their position significantly as they would loose a current safe haven. Doing this would probably spell their doom as now they would have no where to hide. Its these kind of political and logistical reasons which makes me doubt that this is even an issue.

But these are type of comments stack up over time against Bangladeshis and eventually force countries like US to judge and harass Bangladeshis along with certain group of countries. If one is in US or in Europe and not a citizen one way or other he have faced those difficulties. Hope you see the point...

I am surprised not seeing any word against such comments.....Anyway, lets move on...

hey snoq...don't get too passionate...it's not very well accepted here..

I understand where you're coming from...and it's very natural to get excited about these issues. Personally, I couldn't agree more with some of the things you said.

oh..and the same goes for you zaki.....leave your passion at the door...but I'm sure you've been told already...

Bangladesh and its citizen have every right to be fearful of indian intention and exercise its critical judgment. Its not indian BUT Bangladeshis who has been subject to hostile indian action for last 36 years. Most prominent voice with “joy Bangla” slogan (you know who that is) trusted India and gave Bangladesh consent to start Farakka dam on experimental basis. And look where does Bangladesh stand? North western Bangladesh turned into virtual desert, arsenic level in water claiming lives; ecological disaster is in full progress. That is just one example of one bad and short sighted decision. Bangladeshi land, river, island and lives had been victim of indian hostile acts. As we speak every day Bangladeshis are killed by India in the border. Bangladeshi criminals are patronized by India, list goes on….. Through out 36 years of history India has been hostile towards Bangladesh. No one saying not have friendly relation with India but friendship can not be one sided. BUT burden of healing wound created by indian hostility is squarely on india’s shoulder. Why should Bangladesh pay with its national and strategic interest to sway some hostile neighbor ; When we already tried for 36 years. This is utterly inferior mentality thinking that Bangladesh can not develop without giving in to indian irrational and impractical demands. Bangladesh has done well (in fact in some social and economic development indicators done better than India) even with indian trade restriction. So, no need over reach with submissive mentality. If India can overcome its hostile act finding Bangladesh as friend is very easy.

And we have to stick by the motto “forgive but don’t forget”. And it’s not about getting back to India it’s about protecting Bangladesh national interest, just like any other nation.


Snoq...I share your sentiments. Every single day I have to read about innocent people (farmers, shepherds, village people) getting shot by Indian border guards...it pisses me off that we can't speak up about this or make it stop. And since you brought up "joy bangla joy ...." I know that if certain people had not been taken out of the equation many years back, we would be like Bhutan....India would decide our foreign policy...and set our agendas..

^^ Yeah, if only those people could have been taken out of the equation a few years earlier (like, 1970), we could have continued to be an exploited backwater like we used to be. That way, we would be economic giants by now. Makes perfect sense. A real shame. Even for a dispassionate person like me.

^^ I love the sarcasm!! Finally some juicy comments from tanzirian..
are you saying that the people in question deserve all the credit for our independence?

To be honest, I think they may have done some good things for independence...I'll give them that but the things that followed were unacceptable.

That is why they were taken out of the equation....all of them...especially the men because the people responsible did not want anyone left to take up leadership of the country. To me those people are heroes. They didn't do what they did for power or money...most of them disappeared or tried to live their lives like everyone else.

By the way, are you questioning the fact that this so-called father of the nation consulted, and I use that term loosely, his Indian counterpart before setting foreign policies? Ask a few people who were around at that time about the number of times he visited New Delhi on his way to some foreign visit..

You know what, though i would really like to respond, this thread has gone WAYY off topic. I suggest if any of you want to continue the discussion, open a a new thread discussing either Bangladeshi politics, foregin policy, political hitory, or something like that and i think we should just leave this thread to its original topic which is Economy.

^^ yeah you're right...this isn't the thread for political discussions..

We should definitely have a thread for political issues and such...and have a disclaimer...lol

"You must be 18 or over to view this thread due to its explosive content" :lol:

Zaki is right, we are off topic, but let me answer two questions that Gohorns asked me.

As far as stopping in New Delhi, let me ask you, where else would you have expected him to stop? When we became independent, Pakistan's closest allies, United States and China, refused to recognise us. Pakistan also campaigned with OIC to prevent recognition of Bangladesh, so other Islamic countries also withheld recognition for several years. New Delhi and Moscow were the only two places "he" was welcomed. India may have had its own selfish reasons for helping us, but without India there would not have been indpendence in 1971. We wouldn't be sitting here discussing the economy. Our GDP would continue to be siphoned off to serve our western "brothers". We emerged from the 1971 war having lost our only export at the time, which was jute (already during the the 1960s, jute was being replaced by synthetic fibers, a process that gained great momentum in 1971 when jute supply vanished). The occupation forces took care before they left to blow up all major factories (including jute mills), railways, bridges, etc. So we found ourselves independent with a devastated country and no source of foreign income to rebuild it. We were in desperate need of international allies, and India and Russia were the only ones we had. I don't agree with many of the decisions "he" made as administrator. But he was severely handicapped in a way that none of our leaders since that time have been.

As far as being passionate, there is nothing wrong with that. I don't mind Snoq making his points. I don't even necessarily disagree with them. It's when he starts making comments saying that Zaki needs to get more educated, etc, that I have an objection. Do you remember how you guys were name calling each other in a certain Dhaka thread last year? I don't want this thread to degenerate to that level.

OK, no more comments from me on these matters.

Zaki said:
Indians have just as much right to feel threatened by banlgadesh as Bangladesh has from India. Illegal immigration from Bangladesh is completely changing the demographics in India's northeastern states. This is not just a small shift but a huge social shift. If Indians were coming into your country and taking your jobs wouldnt you feel threatened as well.

It's when he starts making comments saying that Zaki needs get more educated, etc, that I have an objection.


Some interesting economic comparison and analysis to expose indian propaganda myth about Bangladeshi migration to NE--------------------------------------------------------------------------
India?s ?push-in? constitutes unprovoked aggression
M. Shahidul Islam writes from Toronto

New Delhi?s South Block has become a perfect barometer to gauge Washington?s political temperature. Since September 11 of 2001, the political mercury in New Delhi has risen and dipped in sync with Washington?s political mood. India has taken the USA?s anti-terror campaign as a convenient springboard to hit unilaterally at its neighbours to gain geopolitical dividends out of the baffling global crisis. The Indian government portrays Bangladesh as a safe haven of Islamic terrorists and its recent decision to deport 20 million Muslim immigrants to Bangladesh precedes only by days the decision of Washington to enlist Bangladesh as a ?suspected terrorist sanctuary.?

This particular Indian decision, taken at a time when Muslim immigrants in the West are enduring the trauma of a relentless anti-Muslim campaign, has come as a big shock to the Bangladeshi Diaspora. The figure of immigrants India has mentioned is about 15% of Bangladesh?s total population and it is, by any account, incredible. The so-called ?push-in? operations by the BSF constitute an unprovoked aggression against Bangladesh. Bangladesh must stand tough in the face of such provocation and ask the Indian government not to be oblivious to the facts that (1) unilateral actions are affronts to diplomatic intercourse and (2) deportation of any alien from a country has to be done in accordance with that country?s due process of law as well as the laws and regulations that govern international migration.
Besides, India must produce evidence to substantiate its claim that the aliens are genuine Bangladeshi nationals, not nationals or lawful residents of India or of any other third country by virtue of their birth, and/or pursuant to India?s own immigration regulations. A cut-off period must also be used before any head count is publicised and attempts are made to deport those aliens to Bangladesh under coercion.
To put this issue of illegal Muslim migration to India into a perspective, one needs to glance backward to the two mass-scale cross-border exoduses that occurred in 1947 and 1971. The 1947 generation is too old to pose any security threat to India, as India is reported to have shown as its rationale behind the decision to deport them to Bangladesh. They are also, in all probability, Indian citizens. The second wave of cross-border exodus that occurred in the wake of the 1971 War Liberation has long been resolved peacefully upon the return of all the refugees from India to Bangladesh at the war?s end.

Besides, nearly 80 million (1991 census) Indians speak the Bengali language and the number of Indian Muslims are almost twice the size of Bangladesh?s total population. The alleged ?illegal presence of 20 million Bangladeshi immigrants in India? seems to be a claim based on a ?concocted? lump sum figure that includes not only many of the Indian-born Bengali-speaking population who are Indian citizens but also many others who have lawful rights to reside in India as students, temporary workers, naturalised permanent residents and citizenship obtained by virtue of marriage, employment and prolonged residency.
Such a scrutiny being mandatory with respect to the assessment of the deportability of an alien, one must also judge the Indian claim from other aspects that underlie the phenomenon of mass migration per se. This process begins with a careful examination of the standard doctrine on human migration which holds that ?migration from one?s place of birth takes place, more often than not, due to one?s quest for a better life.? The doctrine implies, with respect to this particular scenario, that the degree of relative economic prosperity of India, vis-a-vis Bangladesh, must be at a stage that higher standard of living induced mass-scale illegal migration of the less-affluent ?Muslim Bangladeshis? to that country. While the core doctrine itself is more or less a deterministic one, its constituents do solicit the following pertinent questions: (1) did the alleged immigrant migrated to India after 1971?, (2) was the person born in India?, (3) does the person possess valid document to reside, study, work or conduct other permissible avocations pursuant to the Indian immigration regulations? and, (4) what other criteria are being used to identify the person?s antecedent as a Bangladeshi with such a certitude?
Until the Indian authorities come out with a specific cut-off period of an alleged alien?s time of migration to India (date of entry), as well as the criteria being used to determine that the person is a Bangladeshi national who had entered into, and is residing in, India illegally, one has to assume that the statutory period is benchmarked from 1971 onward. This assumption must be tested empirically against two important variables: (1) during the statutory period (say, hypothetically, 1971 to 2001), desperate quest for better livelihood had driven those Bangladeshis to migrate to India, and, (2) their stay in India was prolonged due to further deterioration of Bangladesh?s economic circumstances vis-a-vis India.

The Indian authorities also emphasise that, of the 20 million alleged Bangladeshi immigrants, 10 million are concentrated in Assam and West Bengal. Based on the data pertaining to the hypothetically determined statutory period of 1971-2001, one observes that the average per capita GDP in the Indian state of Assam and West Bengal (rupees in 92/93 constant price) were Rs. 1,947 and Rs. 2,056 respectively against Bangladesh?s per capita GDP, on average, of Tk. 7,800. Since the national per capita GDP of India stood at, on average, Rs. 10,400 during the same period, a yawning disparity between the Indian national per capita GDP vis-a-vis the regional per capita GDPs of Assam and West Bengal is observed here. This economic fact makes little sense for a Bangladeshi to migrate to those two specific Indian states in quest for a better life.
A comparison of wages that were prevalent in the two economies (particularly in those specific sectors where an unskilled worker would usually seek employment) during the statutory period may also provide some valuable clue to understand the undercurrents of a migratory propensity. Comparison between the employment rates of the two economies may also be helpful. While the data on employment can often be misleading due to the nebulousness of the region?s employment configuration, the prevalent wage comparison indicates that a Bangladeshi agricultural worker had little incentive to migrate to India where average wage for an agro-labour during the period stood at Rs. 38 against Bangladesh?s Tk. 37. Indexed with the inflation and the exchange rates of the two economies, as will be examined later, one would find insignificant differences in the inflation rates of the two economies, while, variation in exchange rates would only indicate that a migratory propensity could only be seasonal, not a prolonged one due to the disincentive of a deflated currency value in the country where the migrant was supposed to have worked.
Hence, much focus is needed on the exchange rate that was prevalent during the statutory period, for that ought to be the main stimulant for migration due to the observed symmetry in the sectoral wages of the two economies. In this instance, too, one finds that the two currencies were almost on a par in the 1970s. In the 1980s, value of Taka was substantially lower to Rupee, catching up gradually by the late 1980s to overtake Rupee?s per unit value by the early 1990s. The 1980s, hence, did carry some economic incentive for a Bangladeshi worker to work in India. But the 1980s was also a decade marred by systematic slaughter of Muslims in India by the activists of Hindu chauvinism who unleashed an ethnic frenzy of so horrendous a magnitude that it had culminated into the destruction of the historic Babri Mosque in the early 1990s. Fear for life and safety thus curbed any Bangladeshi?s desire for migration to India from the 1980s through the early 1990s.
One of the most disconcerting aspects of the Bangladesh-India bilateral relations is that, the Indian authorities have acted unilaterally against Bangladesh on issues of immigration, in particular, and on other issues in general, especially whenever the BNP assumed political power. Facts however indicate that the two BNP regimes of the past did much better economically than the other parties that had ruled Bangladesh. Particularly during the 1991-96 BNP rule, Bangladesh?s budget deficit got reduced substantially (from 7.7% of GDP to 5.9%), inflation was virtually wiped out (from 9.3 to 1.8), current account deficit slashed from 7% of GDP to 1.4%, and the foreign currency reserve soared to an unprecedented limit (almost 15% of Bangladesh?s total population).


There is, yet, another way to examine the migratory propensity. Given that both the economies still suffer from acute unemployment problems, seasonal migration for temporary work is a plausibility that cannot be ruled out altogether. This however is a two-way traffic, and it too has two constituent aspects: earning potential, and, job satisfaction. Ever since Bangladesh began liberalisation of its economy since the mid-1970s (a major phenomenon that began in India only in the 1990s), Bangladesh?s industrial productivity (value added per worker) averaged nearly Tk. 38,492, thank to the mushroom growth of garment industries and a huge surge in the export of fisheries. A survey of Bangladesh?s rural economy also indicates that, one out of every four household has had someone working abroad by the early 1990s. Still, in the list of nations where Bangladeshi expatriate workers work, the name of India hardly deserves any mention.
However, not to digress way off the topic, let?s compare Bangladesh?s economic scenario with that of Assam and West Bengal in particular, where 50% of the so-called illegal Bangladeshis are alleged to have settled. Poverty is so pervasive in Assam that 74% of its total labour force barely manage to eke out a subsistence living from agricultural labour. And, in West Bengal, the manufacturing sector contributed only an average 12% to the state?s GDP during the period of this inquiry. A survey of Bangladesh?s employment history too tend to negate Indian assertion. Between 1974-84, labour force constituted, on average, 28.8% of Bangladesh?s overall population, of which, by 1984, agricultural works were the profession of only 16.7% of Bangladesh?s total workforce. This dwindling employment scenario in the agro-sector has been inversely linked to the increase of employment in the industrial and service sectors of Bangladesh?s economy.


That notwithstanding, there is no evidence to suggest that Bangladeshi workers were allowed in the Indian service or industrial sectors to work without valid work permits at any time in history. Like Assam, the economy of West Bengal too is an agro-based one, and the state?s economy can barely create enough jobs for its own population which has a higher concentration than that of Bangladesh.
The demographic perspective offers much less convincing a case with regard to India?s preposterous claims. The population density in West Bengal is 766 people per sq. km. against Bangladesh?s 743. With respect to Assam, the state?s population per sq km is 284, but it has only 0.19 hectares per capita cultivable land. The other major drawback of Assam?s economy is, 82.60% of operating land holding in the state is uneconomical, and, unlike today?s Bangladesh, 73% of the Assamese still live below poverty line. Can a land and the economy of this inhospitable nature entice illegal immigration unless there is war or famine? Migratory propensity flows from famine to feast, not the other way round.
That aside, a careful study of the Indian censuses too starkly contrasts with the Indian claim that its Muslim population had increased due to migration from the Bangladesh side. The censuses between 1951 to 1971 show that Assam?s Bengali-speaking population dropped to 19.01% of the total following the post-partition Muslim exodus to East Pakistan, and, to 17.6% by 1961. The 1971 census further reveals that a slight increase did take place in Assam?s Bengali-speaking population (19.20%), only to be reverted to the previous level following the return of Bangladeshi refugees from India by mid-1972.
This investigation shows that India has nothing to fear from its Muslim population of West Bengal either. For, according to India?s own census of 1991, the Muslim population in the West Bengal?s historically Muslim pre-dominant districts of Murshidabd, Malda, and West Dinajpur constitutes, respectively, 58.66%, 45.27%, 35.89% of the districts? over-all population, indicating a substantial reduction from the pre-1947 (even pre-1971) period in the number of West Bengal?s Muslim population. Another interesting observation ?? that should further repudiate the Indian claim of a mass scale Muslim migration to West Bengal ?? is that, of the 588,491 Bangladeshi nationals who had entered West Bengal with valid visas between 1972-91, only 157,936 (26.83%) were Muslim.
Bangladeshis feels aggrieved, shocked and offended by the unsubstantiated Indian accusation about the presence of 20 million ?illegal Bangladeshi Muslim immigrants? in India. While the Indian claim remains unfounded, malevolent, and politically motivated, Bangladesh can present its case to the world with ease and honesty.

http://www.weeklyholiday.net/070203/edit.html

snoq, please delete your last post as it is being disruptive towards the thread. We have fought hard to get a Bangladeshi subforum so it would be better if we don't ruin it. If you want to continue this discussion please open a new thread specifically on this topic and discuss it there. Thank you.

^^ Yeah I was thinking maybe we can have a thread for political discussions although I'm worried some people may not think it's kosher. There'll probably be some pretty heated debates/arguments which may not go down well with the moderators. What do you guys think?

^^ Yeah I was thinking maybe we can have a thread for political discussions although I'm worried some people may not think it's kosher. There'll probably be some pretty heated debates/arguments which may not go down well with the moderators. What do you guys think?

No prob having a political discussion thread.Its only better if we share our views(for example,I was learning alot from Zaki and Snoq).And not having such a thread doesn't really help..cause our surpressed views about politics come up in other threads.So..I say 'yes' to a political discussion thread.

We are part of an international community here. Also as members of this fledgling subforum the actions of any one of us reflects on us all. We must be courteous to each other and express our views in a measured fashion. This does not mean we can't criticise the foreign policy of another country. But personal attacks and vitriolic diatribes do not reflect well on anyone. As per rules of this site, the purpose here principally is to discuss architecture and urban development. Everything else is secondary and exists as a courtesy. So, let's be judicious in how we use the previledge.

Almost 200,000 people sent in four months...now thats impressive.

Malaysia key destination: Iftekhar: Manpower export from Bangladesh satisfactory
By UNB, Dhaka
Wed, 9 May 2007, 13:40:00

Foreign Advisor Dr Iftekhar Ahmed Chowdhury Wednesday said some 1,91,806 unskilled, semi-skilled and skilled workers were sent abroad from Bangladesh in the past four months. Chowdhury who also holds the charge of the Expatriate Welfare Ministry said it is the policy of this government to expand the export of Bangladeshi manpower and the efforts so far appear to have delivered extremely satisfactory results.

Talking to reporters, he said the comparable figure for the same period of the last year was 96,411 and this year there was a 99% increase.
He said the remittances from expatriate Bangladeshis over the past four months have already reached the record figure of US $1.6 billion. The Advisor said Malaysia is becoming a key destination. "We've already dispatched nearly 50,000 workers and eventually hope to reach a much higher figure," he said.

Chowdhury said the government is constantly on the lookout for new opportunities. During his visit to South Korea in June, he would also discuss this with the South Korean government. He said a breakthrough, though a small one, has also been made with Canada. The Advisor said he is scheduled to receive a visit from the Labour Minister of the UAE in Dhaka between May 20 -22. He said the UAE hosts a huge member of Bangladeshi expatriates and the Middle East is an ever-expanding market.

Source:http://nation.ittefaq.com/artman/publish/article_35945.shtml

Govt plans to set up special EPZ in Sylhet

The government is planning to set up a special export processing zone (EPZ) in Sylhet to attract the investment of Bangladeshi expatriates, particularly the Sylhetis living abroad, Foreign Adviser Iftekhar Ahmed Chowdhury said Thursday. "A project to set up the special EPZ is being taken so that the NRBs (non-resident Bangladeshis) become interested to invest in the country," he said while talking to a delegation of British-Bangladesh Chamber at Sylhet Circuit House.

http://www.financialexpress-bd.com/index3.asp?cnd=5/11/2007&section_id=1&newsid=60829&spcl=no

Govt plans to set up special EPZ in Sylhet

The government is planning to set up a special export processing zone (EPZ) in Sylhet to attract the investment of Bangladeshi expatriates, particularly the Sylhetis living abroad, Foreign Adviser Iftekhar Ahmed Chowdhury said Thursday. "A project to set up the special EPZ is being taken so that the NRBs (non-resident Bangladeshis) become interested to invest in the country," he said while talking to a delegation of British-Bangladesh Chamber at Sylhet Circuit House.

http://www.financialexpress-bd.com/index3.asp?cnd=5/11/2007&section_id=1&newsid=60829&spcl=no

This is long overdue. Hope turn around for Sylhet EPZ is fast. In fact govt should allocate land and NRB create the EPZ on BOT basis. NRB from Sylhet region are financially strong enough to carry it through. Agro processing and medium industries for export has great prospect. News of Osmani airport runway expansion near completion that just came out today will add to investor enthusiasm. An air cargo link between Sylhet and UK would definitely open another frontier for Bangladeshi export. Hope that’s what policy makers and investors are thinking.

No prob having a political discussion thread.Its only better if we share our views(for example,I was learning alot from Zaki and Snoq).And not having such a thread doesn't really help..cause our surpressed views about politics come up in other threads.So..I say 'yes' to a political discussion thread.

Why don't you guys have a lebanon type structure to your forum like they have this "Enter at your own risk" thread where off topic posts go.

Though you will need someone to keep some semblance of control which is easily lost in a political / religious thread.

The next step for this forum is to get its own mods :yes:

^^ That's what I suggested earlier. It would be awesome to have a political discussions thread and those who feel offended can just stay out or enter at their own risk. There's a lot of pent up frustrations about the way things have gone in the country since its birth...and it would be awesome to have some heated debates and have different points of view expressed.

Having said that, I do worry that things may get a little out of hand....truth be told I'm very passionate about some of the issues that've held us back and only aided the rich and powerful and punished the poor and helpless. I think some people already know that ;)

^^ ^^ That's what I suggested earlier. It would be awesome to have a political discussions thread and those who feel offended can just stay out or enter at their own risk. There's a lot of pent up frustrations about the way things have gone in the country since its birth...and it would be awesome to have some heated debates and have different points of view expressed.

Having said that, I do worry that things may get a little out of hand....truth be told I'm very passionate about some of the issues that've held us back and only aided the rich and powerful and punished the poor and helpless. I think some people already know that ;)

Trust me - we all know that.

Just for the benefit of anyone who hasn't noticed - Tmac has created a "Politics" thread in the "Adda" section - so make use of that if you wish.

Bengal Meat to enter Kuwait market next month

The country's lone meat processing unit at Kashinathpur in Pabna, the Bengal Meat Processing Industries Ltd., is concentrating efforts to enhance its share in the global 'Halal' meat markets, especially in the Middle East and Southeast Asian countries.

The Bengal Meat is now exporting fresh, hygienic and Halal meat to Dubai market after meeting a part of the domestic demand for the same.
It will start exporting a sizeable quantity of processed meat to Kuwait from next month.

The Tk 400-million meat processing plant has been established on 9.2 acres of land with the technical support of the Food Equipment Australia (FEA).
The plant that was commissioned in April 2006 is now processing nearly four tonnes of meat - beef and mutton - a day for both the local and export markets.

"There is a huge demand for Bangladeshi Halal meat in the Middle East and other Southeast Asian countries, especially in the Muslim-dominated nations," the Chairman and Managing Director of the Bengal Meat Md. Mazharul Islam said.

He maintained: "We are making our efforts to enter such potential markets in a greater way."

About 1.5 billion Muslims across the world consume Halal meat while 300 million consumers of the Middle East and Southeast Asian countries import the same from Australia, New Zealand, US, and India, he noted.

Talking to a group of visiting newsmen at the plant site, he sought necessary support from the government in this regard.

Mazharul, however, emphasized the need for establishing a 'Reference Laboratory', facilitating the production of cows, goats and sheep and ensuring an easy access to bank loan for boosting the growth of meat processing industry in the country.

Presently, the country's demand for meat is estimated at 0.8 million tonnes per annum against its domestic supply of 0.45 million tonnes, he mentioned.
Of the total demand, residents of Dhaka city consume about 44.8 tonnes of beef and 5.3 tonnes of mutton per day while the demand for beef is nearly 16.5 tonnes a day in Chittagong city, he added.

The Bengal Meat Chairman also observed that almost entire quantity of meat now being sold in domestic markets was being processed in 'unhealthy' and 'unhygienic' conditions.

Currently, the Bengal Meat has the capacity to process about 18 tonnes of meat - 11 tonnes beef and 7 tonnes of mutton - during its eight-working hours a day, Mazharul said, adding the company could easily double its capacity.

The company's Director (operation and technology), Dr. Sharif Ahmed Chowdhury, told newsmen that the plant had state-of-the-art facilities to ensure quality and safety of the processed meat.

The plant has its own quality assurance laboratory, modern kill floors, effluent and water treatment plants, chilling rooms for stocks, trained manpower, cattle lairs and advanced equipments for doing so, he added.

"Bengal Meat slaughters only Halal and healthy animals in hygienic and scientific ways as per Islamic Shariah regulation," he said.

It is mainly supplying meat to the country's five-star hotels and other high-profile restaurants," Sharif said.

The company normally collects its meat animals from all over Bangladesh, especially from north and northwestern regions and nearby districts through contract growers.

http://www.financialexpress-bd.com/index3.asp?cnd=5/21/2007&section_id=1&newsid=61721&spcl=no

May 16,2007

7.5pc GDP growth can see Bangladesh in middle-income group

Bangladesh can become a middle-income country by 2016 if it raises its GDP growth a little more to a sustained 7.5 percent a year, the World Bank (WB) country director said yesterday.

At the current pace of growth, Bangladesh will become a middle-income country by 2023, Xian Zhu further said.

He was speaking at the monthly luncheon meeting of American Chamber of Commerce in Bangladesh (AmCham) in Dhaka.

“Bangladesh will need to employ its labour and capital much more productively and increase the investment rate by more than 5 percentage point relying on higher domestic savings,” Zhu said referring to a WB analysis on how Bangladesh can raise its growth performance.

Achieving a 7.5 percent growth per year could be challenging but not impossible, Zhu said. “GDP growth in China has averaged over 9 percent since 1975, while Korea and Thailand each attained 8 percent growth for two decades and India is now close to joining this group of high growth performance.”

On the recent growth performance of Bangladesh, he said resilience of its economy was demonstrated once again in fiscal year 2006-07, a year in which the country is going through a very difficult period of political transitions.

On the projected growth, the WB country director said Bangladesh appears to be achieving over 6.5 percent GDP growth in FY07 compared with 6.7 percent in FY06 and 6 percent in FY05. “This is a creditable performance by any standard and particularly considering the internal disturbances the economy had to weather in the first half of FY07.

He identified three challenges–diversification of export basket; improvement in investment climate by improving power supply, port operations and regulations; and access to long-term finance– for achieving the growth projection.

“Bangladesh’s export basket is becoming less, rather than more, diversified,” he said, stressing export diversification as one of the two specific challenges to raise the country’s growth performance to make it a middle-income country by 2016.

Inflation remains high around 7 percent as against an average of less than 4 percent over FY 01-05. The main underlying cause is rising food price, Zhu said.

“Food price inflation increased from 1.4 percent in FY01 to 7.8 percent in FY06 and reached 8.5 percent in March 2007,” the WB official said. Rising domestic demand and cost push from increased international prices, and ‘pass through effects’ of administered oil prices, all appear to be at play here.

Appreciating various efforts of the present government, he said it deserves credit for achieving dramatic improvements in the functioning of Chittagong port in recent months. He also praised its initiatives for improving governance.

WB ASSISTANCE

Phase IV of the WB’s Development Support Credit (DSC-IV) worth $ 200 million is scheduled to be placed to the WB Board for approval on May 29,

Zhu said.

The budget support is coming following three DSCs of $ 700 million the WB provided Bangladesh seeing the reforms implemented during the last five years, he mentioned.

“We’ll continue to explore ways to support better the infrastructure (power sector, ports, railways, roads) and agriculture sectors as well as administrative reforms, including decentralisation.”

Zhu said the concessionary loan would however depend on performances in economic reforms and project implementation.

AmCham President Andrew L Fawthrop welcomed the guest while outgoing US Ambassador in Dhaka Patricia A Butenis made the closing remarks appreciating the contributions of American business to Bangladesh economy.

http://www.bangladeshnews.com.bd/2007/05/16/75pc-gdp-growth-can-see-bangladesh-in-middle-income-group/

May 19,2007

GDP growth to fall, per capita income to rise

The country’s GDP growth will fall 0.12 percentage point in the current fiscal year coming down to 6.51 percent due to low performance of the agriculture sector and shortage of electricity, projects Bangladesh Bureau of Statistics (BBS).

However, per capita income is expected to increase by a record 10 percent reaching $520 from last year’s $476.

BBS has also set its final calculation of GDP (gross domestic product) growth rate in FY2005-06 at 6.63 percent, which was 6.71 percent in its provisional estimate, a planning ministry source said.

The BBS projection might be realistic in terms of industrial and agriculture sectors’ output, but its estimation on the service sector output for the current fiscal year is questionable, Zaid Bakht, research director of Bangladesh Institute of Development Studies (BIDS), observed.

According to BBS, the agriculture and forestry sector, which represents 17 percent of the GDP basket, marked a 2.95 percent growth this year, compared to 5.23 percent in FY’06.

In FY’05, agriculture production suffered due to floods, but the growth of agriculture production in FY’06 was very high, Zaid said.

But since the agriculture production, especially of rice, has been hampered in the current fiscal, the overall agriculture growth might go down compared to the previous fiscal, he noted.

According to a central bank estimation, aus and amon production in the current fiscal has declined to 1.24 crore tonnes from last year’s 1.25 crore tonnes.

Meanwhile, BBS estimates that boro production in the current fiscal is 1.45 crore tonnes, which was 1.39 crore tonnes last year. The estimated boro production might not be achieved due to a problem of sterility in paddies, sources concerned said.

Zaid said if the production of boro reduces, the overall agricultural growth in the current fiscal will also decline.

The manufacturing sector performed well, Zaid noted, which is evident from the import volume of capital machinery and industrial raw materials. Exports from this sector marked a healthy 20 percent growth this year, he mentioned.

The BIDS research chief, however, expressed doubt about the growth of service sector in the current fiscal as the anti-corruption drive by the present caretaker government in the second half of the fiscal year has slowed down economic activities.

BBS PROJECTIONS
According to the BBS provisional estimation, the manufacturing sector, which accounts for 17.79 percent of the GDP, grew 11.19 percent in FY’07, whereas its growth last year was 10.77 percent.

Meanwhile, the power sector growth declined to 4.52 percent this fiscal year, compared to last year’s growth of 7.45 percent.

The construction sector grew 7.05 percent, compared to last year’s 8.31 percent. The sector constitutes 9.16 percent of the GDP basket.

Fishery, which accounts for 4.73 percent of the GDP, grew 3.99 percent compared to its 3.91 percent growth in FY’06, the bureau reckons.

The transport, storage and communications sector, which makes up 10.21 percent of the GDP, grew by 8.24 percent in FY’07 compared to its 7.98 percent growth in FY’06.

Wholesale and retail trade representing 14.17 percent of the GDP marked a substantial rise of 7.44 percent in FY’07 compared to last year’s 6.75 percent.

According to the BBS estimation, real estate, renting and business activities have marked a 3.77 percent growth, which was 3.69 percent in FY’06. The sector comprises 7.65 percent of the GDP.

Community, social and personal services, representing 7.09 percent of the GDP, grew by 4.51 percent compared to last year’s 4.09 percent growth.

FINAL ESTIMATE OF FY’06 GDP GROWTH
The final estimate of BBS puts the growth of agriculture and forestry sector in FY2005-06 at 5.23 percent, which in its provisional estimation was 4.67 percent.

In FY’06, growth in manufacturing had been set at 8.73 percent as a provisional estimation, but it ended up growing 9.23 percent.

BBS estimated construction sector growth at 8.37 percent in FY’06, but it accomplished 8.31 percent growth. Wholesale and retail growth was projected at 7.26 percent, but it grew by 6.75 percent.

BBS sources said the GDP growth in FY’06 was down, mainly due to poor output from the service sector.

http://www.bangladeshnews.com.bd/2007/05/19/gdp-growth-to-fall-per-capita-income-to-rise/

10% rise in per capita income sounds good!

10% rise in per capita income sounds good!

10% income growth may be good but with 8%+ inflation does not leave any gain for people. Unfortunately newspaper and people ingeneral does not look into bigger picture.

^^ in most cases that would be a gloomy picture but taking into consideration the recent events and the real positive changes brought forth by the CG, I'm willing to accept some of the negative implications that have resulted..

$4.5b forex reserve: Kudos to unsung heroes


Our foreign exchange reserve crossed the US$ 4 billion mark for the first time in early March, now stranding at almost $4.5 billion despite settlement of highest ever ACU (Asian Clearing Union) payments of $370 million. This is soon likely to be $5 billion with release of the latest trance of development support credit (DSC) from the World Bank and possible receipt of the Rupali Bank sale proceeds along with increased remittance and export receipts.

Due to the inherent nature of our negative trade balance, the FX reserve has traditionally been ailing; it fell to an alarming level of nearly $1 billion in October 2001. Credit goes to the RMG and NRBs remittance sectors for reaching this milestone. Despite continuous hurdles, RMG has proven to be a resilient sector while the continuous reforms in the banking sector moved NRBs away from the informal channels of money transfer with higher number of Bangladeshi workers abroad providing additional boost. The country's exports and remittance sectors have shown a robust growth of above 20 percent and 30 percent during the July-March period of the Fiscal Year 2007.

We do not see any reasons to rejoice while assessing ours compared to other countries of our likes. However, some corners deserve a pat on the back for maintaining the strong upward trend amidst soaring commodity prices in the international markets while at the same time the dare measure of floating the BDT exchange rate has been taken. The following table indicates our weak position compared to others.


While the world's highest FX reserve is held by the mighty China surpassing the trillion-dollar mark last year, our 4 billion may seem tiny. However, A country's FX reserves if sufficient to cover for 3 months of its foreign obligations, is accepted as safe. This gives comfort to the foreign investors of the repatriation capacity of a particular country. Historically our reserves have been barely at that safe level or marginally lower. At present with the reserve at a level over USD 4 billion, covers for over 3 months of imports. We must bear in mind that the 3 months import coverage of our reserve is a dynamic number with the imports growing almost 20 percent on a year-on-year basis for the past few years. With growing exports and remittances at 20 to 30 percent plus rate, we can even reach higher levels of coverage.


High level of reserve helps attract new foreign investments. While good level of reserve attracts FDIs, new FDIs provide further boost to the reserve resulting in a movement in a cyclic direction. We can take the example of continuously growing FX reserve of India where the reserve at the end of April was $200 billion (excluding gold) compared to $170 billion at the end of 2006 and the FDIs are constantly growing. In our case too in the recent years, we have seen encouraging progress in similar direction with both new FDIs as well as reinvestments. A question has been raised by some of our intelligentsia whether this high reserve (though it is very meager by any standard and especially against the huge potential Bangladesh economy offers or seasonal crisis it may face) has been built up at the cost of the private sector growth or other growth sectors of the economy. It will possibly be an injustice to Bangladesh Bank, if we believe so. Bangladesh Bank was not seen buying dollars from the market as frequently as we have expected to them to do, at times to support the falling dollar in order to maintain the momentum of export and remittance growth. Rather banks suffering from excess FCY liquidity at times went to the central bank to square up in excess of the open position limit dollar holdings. However, one should not also forget that, like all other countries (what we see all the time being done by G-7 countries), it is the job of the central bank to support dollar as and when required. If Bangladesh Bank would not have supported dollars during the time of excess liquidity in the inter-bank market, we could have seen dollar at 63-65 taka even, which could be damaging for our growing exports and especially remittance of non-resident earnings through official channel. Planned way of managing forex also helped the central bank, to maintain an optimum exchange rate of (+-) 70- taka to a dollar.


Bangladesh Bank has been maintaining a strictly steady course since it started its voyage of reforms. The central bank governors have been like on a relay race continuously passing the baton to the successor who has been strong in navigating at the same course even during turbulence. Policies have remained consistent with drive for completion of missions of the predecessors. FX and monetary policies have been managed dispassionately with specific consideration of a developing nation like ours. One result of that is Bangladesh being one of the few countries to have managed to weather the Asian crisis of the late 90's. A standing ovation is due to Allah Malik Kazemi of the central bank for his courageous and professional pursuance of the FX and monetary policies for nearly the past two decades helping overcome crisis periods despite continuous reforms and deregulations. This career central banker has dedicated his life, all his wisdom, commitment and passion to build up an institution (especially a robust forex regime) against all odds. Now looking back we all, as Bangladeshis, take pride of a resilient central bank, a strong FX position for which he has been one of the architects to have decisively maintaining a low key, yet his presence has been very much imposing to us, especially who are engaged in financial sectors, through his guidance and presence of mind in formulating numerous prudent and timely policy making. At this cross roads of the future of the country, when we are finding it difficult to have "knowledge leaders" tested over time and situation, we pay our very humble tribute to this brilliant central banker who should be remembered by the nation for his contribution towards the reform of financial and monetary policies, which reflected the much needed reflection of reality stemming from global changes to equip us towards facing the highly competitive world.


This last paragraph is to bid farewell to an individual, an unsung hero (like many outstanding public servants, who could not defend their activities in public due to usual constraints), who has worked as the architect and even at the level of a daily labour to have pursued our reforms and built our FX reserves brick-by-brick over the past two decades. Though the current state of the private sector of our country doesn't seem to be well positioned for the most appropriate use of this resource of global stature, we need to ensure the utilisation of his talents for the benefit of this country rather than seeing entities or institutions across the border taking advantage. It is often felt by various quarters that we have an acute shortage of knowledge to reinforce the current government's strive to curb financial crimes; given this, we must not allow any qualified and focused resource to relax or get lost in the oblivion.

http://www.thedailystar.net/2007/05/29/d70529050463.htm

$812m BoP surplus in Jul-Mar

Boosted by a surge in remittances and strong exports the balance of payments surplus reached US$812 million in the first nine months of the current fiscal year (2006-07), despite a fall in foreign direct investment and foreign aid.

The surplus is in sharp contrast to the same period a year earlier when the country was running a balance of payments deficit of $37 million.

The main reason for the surplus was a strong jump in the level of remittances from Bangladeshis abroad. In the nine months to March 31 remittances rose by 26 percent compared to the same period a year earlier, to reach $4.9 billion.

The surge was mainly due to the increased use of official channels by Bangladeshis abroad to send their money home.

Exports rose by 20.21 per cent to $9.03 billion, compared to $7.51 billion in the same period a year earlier. One of the largest gainers was the knitwear sector.

Imports rose by 20.55 percent to reach $12.74 billion compared to $10.57 billion, meaning the deficit reached $2.55 billion, up from $2.09 billion in the same period a year earlier.

Larger deficits in services and income meant the current account surplus fell to $318 million from $523 million during the same period of 2005-06.

Foreign direct investment fell to $385 million in the July-March period, down 24 per cent, while foreign aid dropped by 2 per cent to $909 million, according to the Economic Relations Division.

However, portfolio investment increased 212 percent to $50 million, compared to $16 million during the same period a year earlier.

http://www.thedailystar.net/2007/05/31/d70531050260.htm

6/1/2007

Inflation in Bangladesh lower than in India, Pakistan: Patel

Amid continued price-hike of essentials in the country, a visiting World Bank (WB) official Thursday said the steps taken by the government has started to work, reports UNB.
"The measurers that have been taken by the government has started to work," WB vice-president for South Asia Praful C Patel told newsmen after his meeting with Finance Adviser Mirza Azizul Islam at the Finance Ministry.
He said inflation in Bangladesh is still lower than India and Pakistan. "The inflation rate in Bangladesh is below 7.0 per cent whereas it's much higher in India and Pakistan."
He said the prices of essential items have increased worldwide that also affected Bangladesh.
Patel emphasised the need for reforming the tax administration and containing inflation.
The WB official expressed satisfaction after holding the meeting with the Finance Adviser and praised the government's various initiatives to give macro-economy a stable position.
Responding to a question about the delay to disburse the DSC-IV money, Patel said the World Bank assured to disburse the money (US$ 200 million) this fiscal year and approved the money two days ago.

http://www.financialexpress-bd.com/index3.asp?cnd=6/1/2007&section_id=1&newsid=62835&spcl=no

6/1/2007

Pak businesses may import shirts from Bangladesh

Pakistani business community wants Bangladesh to hold single country trade fair to promote its products and increase trade volume between the two countries.
The Pakistani business leaders expressed their willingness to enhance bilateral trade with Bangladesh by importing cheaper readymade garments, especially shirts.
Leaders of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) raised the possibilities of boosting economic cooperation between the two countries during a recent meeting with a visiting seven-member Bangladesh media delegation in Karachi.
The FPCCI leaders invited the businessmen of the Bangladesh to participate in the international trade fair to display their products for increasing the volume of imports from Bangladesh, which is now in favour of Pakistan.
Last year, the Bangladesh imported goods worth about $140 million from Pakistan against exports amounting to only $64 million.
Pakistan imported raw jutes, textiles and urea. In return, the country exported yarn chemical and plastic products to Bangladesh.
The FPCCI leaders said there is a large market for Bangladeshi products in Pakistan, but due to lack of promotional initiatives the opportunities could not be harnessed.
Besides, a number of Pakistani textile industries is also planning to relocate their plants in Bangladesh as those units have been incurring losses due to higher production cost at home.
The Pakistani businessmen said that the minimum wages in garments industries is Rs 4000 in Pakistan that pushes the overall production cost of RMG products higher.
Factory owners were forced to shut down about 20-21 spinning mills over the last three months as those industries are incurring losses every year, said Zubair F. Tufail, vice president of the FPCCI.
The owners of those industries now want to shift their units to Bangladesh as cost of production is much higher in Pakistan.
However, the Pakistan government has taken some initiatives to revive the sick industries, he said.
"The Pakistani textile sector will be able to compete with the international market after signing free trade agreement (FTA) with SAARC member countries," he added.
He said trade volume between Bangladesh and Pakistan will grow further after signing the FTA.

http://www.financialexpress-bd.com/index3.asp?cnd=6/1/2007&section_id=1&newsid=62847&spcl=no

Budget aims 7pc GDP growth

Finance and Planning Adviser Mirza Azizul Islam today announced the national budget of Tk 87,137 crore for 2007-08 fiscal year with a vow to achieve a GDP growth of 7 percent.

He also put focus on maintaining macroeconomic stability, accelerating economic growth, keeping inflation within tolerable limits, removing constraints on private sector-led growth, reduction of poverty, ensuring regional and income equity and ensuring food security in the budget.

This is the first-ever national budget announced by a caretaker government over all public and private radio stations and television channels in the history of the country as there is no parliament now.

As per the earlier announcement of the finance adviser, the budget documents have already been posted on the official website of the Ministry of Finance so that people could have access to it and submit their post-budget proposals.

The adviser said the government will consider the proposals and accommodate them in the budget, if necessary.

http://www.thedailystar.net/latest/updates.php?pid=-91

New dawn, new opportunities

The indicators could not have been any better for a budget year -- foreign exchange reserve is building fast, exports and remittances are robust and the manufacturing sector doing well.

Yet when Mirza Azizul Islam will present his first budget for the caretaker government today, he will have to address a number of new and old tensions in the economy -- inflation now close to the double-digit level from its continuous upward climb, a flagging revenue and foreign aid inflow, fumbling power situation, again slowing agriculture and weak implementation capability of the government.

His options are few to tackle the nagging problem of inflation that so easily touches everyone's life. But he still has some left with fallouts in other areas. He can go for cuts in duty on commodities that are mostly consumed by the people in general. But then he would surely face some revenue erosion.

However, Aziz will be in a better position in this regard than his predecessors -- the current situation is just ideal to go harsh on plugging revenue loopholes for better collection to offset the loss in any duty and reforms can be easily accomplished. Simultaneously, he can go for increasing duty on some 'non-essential items' now enjoying zero duty.

But these will be only one part of the adviser's task. Next, he will have to make inflation bearable for the poor through a massive safety net programme -- indications are already there that dollops of funds will be allocated in that direction.

But doing these two, he will have to keep his eyes open so that aggregate fiscal balance is not disturbed -- a deficit less than 4 percent of the GDP and domestic financing less than 2 percent should be regarded as prudent by any standards. So, Aziz will need a perfect blending of tax and expenditure policies to fight the inflation dragon.

He has already shown some pragmatism rather than idealism in his tax policy -- the provision for legalising legally-earned undeclared income is just one of them that may result in a one-shot increase in the state's income. Indications are also there that the tax net will be widened and exemption loopholes plugged. But he has to do something dramatic to turn things around -- he has to simultaneously make the tax department more taxpayer-friendly and harsh at the same time, and he has to find the places for reforms.

On the spending side, Aziz will be lucky to be free from the tremendous pressure that the political finance ministers undergo for padding up development programme with unnecessary projects. Lawmakers will not be making beelines in front of his office demanding for roads and school projects that will never be implemented but the money to be pocketed by the party men. He will not have to buy votes for his party -- he does not have one -- by sacrificing financial prudence and going for a budgetary overhang that will remain only in figures on papers.

Some might term his already announced Annual Development Programme (ADP) ambitious as it inflates 23 percent from the revised one of this year. But there actually is a sea difference from the previous years' expansions. When compared to the original ADP of this year, the increase is only 1.9 percent. And the expansion is well consistent with the budget deficit target of 3.5 percent. The real difference in this year's development programme lies in the fund allocation -- a huge Tk 3,633 crore, or 31 percent higher than last year's, goes to power sector that so lamely limps along for lack of any direction in the last five years when the four-party alliance was in power. If nothing else, the future growth that could see Bangladesh as a middle-income country would depend on availability of adequate and quality power supply. And then the much grinded term 'rural development' can be given a new meaning now -- until now it mostly meant development of the party loyalists -- by channeling funds to the real needs and not to bridges that can stand unfinished for decades without the villagers ever raising a finger to them.

But what is still unclear is how the finance adviser is going to address the lax implementation capability of the line ministries -- already it has been reported that the administration has further slackened off now and piling files are just one evidence. The fact that this year Bangladesh is witnessing the lowest ADP implementation in years -- only 44 percent of the funds used in 10 months, which is 5 percent lower than last year -- is just another. Here, the caretaker government can show some spunk to sort out the age-old implementation problems -- we are all familiar with the same jargons of frequent change in project directors, delay in land acquisition and delay in negotiation with donors. Aziz can now take the bull by the horn and throw the mucks off the ring once forever. His proposal to appoint the same project director for the entire duration of the project plus six months is a step in the right direction.

A new reality for the policymakers this year may be the rediscovered importance of the agriculture sector -- a weak Boro has already sent projected growth figures on a downward course of varying degrees as estimated by different organisations and institutions. Notwithstanding the shrinking role of the agriculture in GDP -- it now counts for about 17 percent of the GDP -- the sector still employs over 50 percent of the population, and the finance adviser has to think ways of revamping the sector by pumping more money into it. Big diesel subsidy has already been incorporated in the proposed budget for the next year, it has been reported. Some other form of input subsidy may also be there. But more important now is keeping the supply chain intact, making inputs available so that predicaments like the recent fertiliser and diesel crisis at the farmers' level do not happen. The informal supply chain to the rural areas has to be brought into confidence simply because of its importance in serving the unreachable.

Despite a good industrial performance this year, Aziz will have to invent more ways to pump new life into the sector as fears of a rollback are echoed from different quarters. Banks are already saddled with more than Tk 10,000 crore in idle money and they say options are now limited for investment. Entrepreneurs are not coming forth with projects. Meantime, the risk of the capital market getting overheated is rising as new scripts are slow to hit the market. Confidence building will be just one side of the game now, but putting a relaxed interest regime and allowing more financial products will be equally important. And many of the jobs mentioned earlier such as fighting inflation will also be vital for the industry as higher inflation will surely lead to demand for wage hike, eroding competitiveness.

But transferring income to the poor so that the widening rich-poor gap can be filled may prove the adviser's toughest and trickiest job to come. The household income and expenditure survey of 2005 shows how income distribution has been skewed in half a decade to the time of survey -- the share of national income going to the bottom 5 percent of the poor has shrunk to 0.77 percent in 2005 from 0.93 percent in 2000. Income disparity is again unequally manifested across regions -- Khulna and Barisal are now the worst-off areas.

Turning eye to the agriculture and the rural non-farm sector can be one solution to bridge the rich-poor gap. On the other spectrum will be the subsidy and safety net programmes. But in the middle will remain investment in quality education that always plays a significant role in ensuring higher wages. Mirza Aziz's budget will prove if that vital link is properly served.

http://www.thedailystar.net/2007/06/07/d7060701011.htm

Remittance set to cross $ 6b this fiscal year

With a continuous growth in remittance in the last four months, the country's remittance inflow is set to cross US$ 6 billion this fiscal year.

The non-resident Bangladeshis (NRBs) already sent $ 5.46 billion during the July-May period of this fiscal year (2006-07) compared to $ 4.37 billion during the same period of the previous fiscal year, recording around 25 percent growth.

Such a rise in the remittance also helped the country's foreign exchange reserve to hit $ 4.48 billion yesterday.

The remittance inflow reached $ 561.92 million in May, $ 545.93 million in April, $ 537.29 in March and $ 500.32 million in February of this fiscal year.

Bankers said the government's recent measures against 'hundi', an illegal way of money transfer, encouraged the Bangladeshi wage earners to send money home through legal channels.

Besides, according to sources, recently a considerable number of skilled manpower were exported to some countries including Malaysia and Saudi Arabia who are also remitting a good amount of money.

The private commercial banks have also taken initiatives to increase their earnings from remittance services, which is ultimately helping the country in witnessing a huge remittance inflow, the sources said.

The NRBs send roughly $ 7 billion every year and a significant amount of the total amount still comes through 'hundi'.

Recently the Asian Development Bank (ADB) also said despite a steady growth in remittance inflow, a major portion of remittances enter the country through illegal and informal channels due mainly to insufficient number of bank branches in remote areas and procedural complexities.

The ADB in its Quarterly Economic Update on Bangladesh published in March said such illegal and informal channels keep foreign currencies out of reach of the formal economy, for which the country could not reap the desired benefits.

It, however, said the potential for much greater flows through the legal banking system exists. "Boosting the capacity and efficiency of financial institutions is crucial to increase in remittance flows by directing more funds into official channels," it said.

The major challenge confronting the financial sector is to integrate remitters and recipients into the legal financial system, it said, adding, "Private commercial banks that are more efficient service providers, but have a limited number of branches in rural areas, need to create a better network in partnership with licensed micro-finance institutions or even local post offices to broaden the service coverage area."

Along with the ADB, the local bankers also hope there is still a good chance to see further rise in remittance inflow through official channels.

"Some private banks are marketing their remittance services very aggressively and offering quick and secured services to the clients besides encouraging the Bangladeshi wage earners to send their money through legal channels," said a banker.

The central bank also continues its efforts to encourage the NRBs to send their money through official channels.

Sonali Bank, Agrani Bank, Pubali Bank and Islami Bank Bangladesh Ltd are the major players handling the remittance inflow.

http://www.thedailystar.net/2007/06/07/d70607050153.htm

SAP India eyes Bangladesh's business software market

Executives of SAP India, a global leader for providing business software solutions, yesterday identified Bangladesh as a potential next-door destination of its services as they consider that the country's small and medium enterprise (SME) sector is growing.

They said Bangladeshi SMEs, which are opting to grow at a brisk pace and increase efficiency through automation, will require such sophisticated business solutions as the SAP offers.

They were speaking at the inaugural session of a three-day SAP Summit '07 at The Grand Hyatt in Mumbai.

Around 2000 representatives of customers, partners and media, and industry experts and analysts participated in the session.

The speakers said Bangladesh's emerging textile and readymade garments, pharmaceuticals, leather and shrimp sectors can be benefited considerably by adopting SAP business solutions.

President and CEO (Indian Subcontinent) of the company Alan Sedgh said opportunities for the subcontinent's business today are boundless--both globally and domestically.

The increased pace of adopting SAP solutions in the subcontinent is a testament to the evolution of SAP, and the company will continue to provide customers with an enhanced portfolio of solutions and industry's best practices, Sedgh added.

On SAP's presence in the SME sector, he said the subcontinent's SMEs are growing at impressive rates year on year, and more than 1000 small and midsize companies in the area have opted for SAP solutions.

More than 38,000 customers of over 120 countries are presently using SAP applications.

SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partnership and better efficiency across their supply chains and business operations.

http://www.thedailystar.net/2007/06/07/d70607050355.htm

Ritzy Apparels to Invest US$2.4 MLN in Bangladesh Epz

A bangladeshi company is going to set up a knit and woven garments manufacturing plant in Karnaphuli Export Processing Zone.

The 100 per cent local owned company, known as Ritzy Apparels Ltd, will invest US$2.356 million to manufacture annually 17.2 million pieces knit woven apparels.

Ritzy Apparels company will create employment opportunity for 1,823 Bangladeshi and one foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and Ritzy Apparels Ltd in Dhaka recently.

Prasanta Bhushan Barua, member (Investment Promotion) of BEPZA and Mirza Mohammed Jamshed Ali, Managing Director of Ritzy Apparels Ltd, have signed the lease agreement on behalf of their respective organizations.

http://asia.news.yahoo.com/070607/4/330np.html

What are the most famous and well known brands of the following in Bangladesh
1. Cars, Buses and Trucks
2. Electronic products such as TV, Fridges etc.....
3. Food products
Any others....

What are the most famous and well known brands of the following in Bangladesh
1. Cars, Buses and Trucks
2. Electronic products such as TV, Fridges etc.....
3. Food products
Any others....

Don't know how much I can help you, as I have not lived in BD for a while (not since 1993), but back then, as far as cars and electronics went, those areas were pretty much dominated by the Japanese brands (Toyota, Honda, Sony plus a few non-Japanese like Phillips). Probably has not changed significantly since then, though I am sure other countries (esp Asian) are better represented these days. As for food Bangladesh grows most of its own fresh produce; processed foods come from a variety of countries. Hope that helps. BTW thanks for using this thread, not the other one.

I think popular brands of refrigators are Samsung, Kelvinator, Sharp, Singer etc

http://www.canada.com/nationalpost/financialpost/story.html?id=cee0cd4d-fc88-466a-a2fb-bbdac08298ab

http://www.canada.com/nationalpost/financialpost/story.html?id=cee0cd4d-fc88-466a-a2fb-bbdac08298ab

Interesting..first Goldman Sach's prediction and now this.Thanks for sharing.

Interesting..first Goldman Sach's prediction and now this.Thanks for sharing.

Keep in mind that the "top 12" ranking is based on this guy's own formula, not actual GDP. Nonetheless, as long as our politicians don't muck things up, the span of our lives promises to be a time of great progress for BD, reversing nearly two and a half centuries of economic exploitation and stagnation. In fact, if we can reverse the cycle of political violence and corruption, we might even leapfrog some of the other countries currently ahead of us in the Goldman Sachs list, which are suffering from social / cultural unrest / violence.

Forex reserve to hit $5.0b mark by month-end
FE Report
6/16/2007

The country's foreign exchange reserve is expected to hit US$5.0 billion mark by the end of this month with robust growth in remittances and disbursement of soft loan committed by a multilateral donor agency.
The foreign exchange reserve rose to $4.80 billion Thursday following the release of the fourth tranche of the Development Support Credit (DSC) worth $200 million.
The interest free policy-based lending from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period; and it carries a service charge of 0.75 percent.
The WB may approve another soft loan amounting to $100 million for Bangladesh on June 21 under the DSC for education sector reforms, official sources said.
An agreement, to this effect, will be signed June 23 in Dhaka between the government and the WB official for releasing the fund, the sources confirmed.
The government officials are hopeful about receiving the fund by the end of this month after completing necessary formalities.
"We are expecting to touch $5.0 billion foreign exchange reserve by the end of June, 2007," a BB senior official told the FE Thursday.
He also said the reserve position may further increase if the country receives a payment due from the United Nations for peacekeeping.
Sources, however, said increased flow of remittances, reasonable export growth and a normal import trend have contributed to the rise in foreign exchange reserve.
Meanwhile, the flow of inward remittance touched nearly US$5.50 billion in the first 11 months of the current fiscal, recording a 25.02 per cent growth over the same period of the last fiscal.
The country received $5.46 billion during July-May period of the fiscal 2006-07 against $4.37 billion in the same period of the previous fiscal, according to the provisional estimates of the central bank.
On the other hand, the country's overall imports grew by 17.24 per cent during the first 10 months of current fiscal over that of the same period of the previous fiscal.
The letters of credit (LCs) against imports worth US$ 13.281 billion were settled during the July-April period of the fiscal 2006-07 compared to that of $11.327 billion in the same period of the previous fiscal, the data showed.
During July-March period, the export earnings stood at $9.036 billion, registering a 20.21 per cent growth against that of $7.517 billion in the corresponding period of the previous fiscal.

Source:http://www.financialexpress-bd.com/index3.asp?cnd=6/16/2007&section_id=1&newsid=64289&spcl=no

Forex reserve crosses $5.0 billion mark

The country's foreign exchange reserve crossed US$5.0 billion mark Wednesday for the first time in Bangladesh's history, thanks to a robust growth in incoming remittances and increased flow of foreign aid.

The foreign exchange reserve rose to $5.02 billion on the day after the International Development Association (IDA), the World Bank's concessionary arm, released $100 million under the Education Sector Development Support Credit.

The credit from the IDA has 40 years to maturity with a 10-year grace period; and it carries a service charge of 0.75 per cent.

"The foreign exchange reserve crossed $5.0 billion mark due to release of a fund form the IDA and robust growth of remittances," a senior official of the Bangladesh Bank (BB) told the FE Wednesday.

He also said the country recently received around $30 million from the United Nations as payment for its contribution towards peacekeeping mission.
"The foreign exchange reserve may increase further shortly," the BB official expressed the hope.

Sources, however, said increased flow of remittances from Bangladeshis working abroad, reasonable export growth and a normal import trend have contributed to the rise in foreign exchange reserve.

Meanwhile, the flow of inward remittance touched nearly US$5.50 billion in the first 11 months of the current fiscal, recording a 25.02 per cent growth over the same period of the last fiscal.

According to the provisional estimates of the BB, the country received $5.46 billion as remittances during July-May period of fiscal 2006-07 against $4.37 billion in the same period of the previous fiscal.

On the other hand, the country's overall imports grew by 17.24 per cent during the first 10 months of current fiscal over the same period of the previous fiscal.

The letters of credit (LCs) against imports worth US$ 13.281 billion was settled during the July-April period of fiscal 2006-07 compared with $11.327 billion in the same period of the previous fiscal, the data showed.

The foreign exchange reserve has maintained a gradual upward trend also due to implementation of the Anti-Money Laundering Act to curb illegal money transfer using informal channels and a campaign for the expatriates to send their earnings through formal banking channel.

The reserve shot up to $3.07 billion in 1995, but it declined to $2.03 billion in June 1996. It continued to fall and touched its lowest at $1.00 billion in a decade in 2001.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=2601

Domestic investment proposals up

The country's textile sector attracted the highest number of domestic investment proposals while the services sector drew more such initiatives under foreign and joint-venture in the outgoing fiscal.

According to the Bangladesh Economic Survey 2007 report, among the total investment proposals registered with the Board of Investment (BoI), 70.23 per cent came from the domestic investors for the textile sector in fiscal 2006-07.

Some 85.65 per cent of the proposals made by the foreign investors was for the services sector in Bangladesh during the first nine months of the fiscal.
The survey report said that February of fiscal 2006-07, a total of 1386 domestic investment proposals worth Tk 158.53 billion was registered with the BoI, which was 37.7 per cent higher compared to the same period of the last fiscal.

On the other hand, the foreign investors registered 130 investment proposals worth Tk 93.85 billion with the BoI from July '06 to March '07 period.

Among the domestic investment proposals, the chemical sector attracted second highest investment (8.01 per cent) followed by the services (7.73 per cent), engineering (4.98 per cent), printing and publication (3.16 per cent), agriculture (2.65 per cent), food and food products (2.21 per cent), glass and ceramic (0.36 per cent) and the leather and leather goods (0.36 per cent).

Out of the total foreign and joint-venture investment proposals, the textile sector ranked second with 7.89 per cent followed by chemical (1.87 per cent), engineering (1.81 per cent), agriculture (1.79 per cent) and the leather and leather goods (0.57 per cent).

Besides, the Economic Survey 2007 report also said among the joint-venture projects, the textile sector attracted highest 70.21 per cent of investment followed by chemical 21.6 per cent, engineering 14.1 per cent and agriculture 5.5 per cent.

About the investment scenario, the survey report observed that although investment in Bangladesh showed an impressive growth in the previous fiscals, it recorded a declining trend in the outgoing fiscal with 24 per cent negative growth.

"But it is encouraging to note that the domestic investment showed a 37.7 per cent growth in July '06 to February '07 period of the current fiscal."
Describing the reasons for lower investment, the survey report opined that the FDI fell in the outgoing fiscal due to political turmoil, uncertainty in taking decision on the big investment proposals and absence of proper decision against the investment proposals in the infrastructure sectors.

The report said in the overall growth of the gross domestic product (GDP), the investment played a vital role. "The investment increased to 24.33 per cent of GDP in fiscal 2006-07 from 19.99 per cent in 995-96."

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=2775

Export earnings grow by 16.45pc in 11 months

The country's export earning during July-May period of fiscal year (FY) 2006-07 grew by 16.45 per cent over that of the corresponding period last fiscal propelled by good performance in the woven garments and frozen food sectors, official figures revealed.

According to the Export Promotion Bureau (EPB), the total export receipts fell short of the strategic target by nearly 2.05 per cent to US$ 10,958.62 million.
The export earning during July-May period of fiscal 2005-06 was recorded to $9,410.55 million.

Export price index, during the first eleven months of FY 2006-07, declined by 0.75 per cent but the volume of export increased by 17.20 per cent compared to the same period of the previous fiscal.

The price index and primary product export volume, however, increased by 3.78 and 4.01 per cent respectively.

On the other hand, the quantity of industrial products exported registered a rise of 18.24 per cent despite decline in its price index compared to the same period of previous fiscal.

However, exporters earned $10.5 billion, in fiscal year 2005-06, registering about 22 per cent growth over the previous year. For the current fiscal, target has been set at $12.5 billion projecting a 19 per cent growth.

Sources said the steady success came on the back of remarkable performances of woven garments, frozen foods, home textiles, leather products, handicrafts and ceramic products. However, earnings of the woven garment segment grew by 14.69 per cent to $4,182.88 million crossing the target of the period $4,161.65 up by 4.69 per cent.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=3253

Hard time understanding whether this is good news or bad news because they keep talking about things going down. Whatever it is, the main point is our exports need to increase above our imports to start creating a successful economy.

This is ONE of the visible sign that state of economy suffered and suffering from recent policy or policy directive from external source. I have seen series of post on rosy picture on sector or portion of economy. But those encouraging data are largely result of work done in year or more ago. I had extensive discussion in business circle (transport assembler, garment exporter, agro processor etc) in Bangladesh and picture is not that rosy. In fact some action taken in name of anti corruption drive has stagnated economy in great extent and effects of those will be seen in coming months and year. We only hope this lull is only temporary.

^^ While true that certain overzealous mediators of the anticorruption drive have caused grievances among business community, nonetheless previous status quo dependent on bribery as routine element of transaction was not conducive to rate of growth necessary to remain competitive in global market. Element of uncertainty posed by current political situation no doubt gives pause to future investment at current juncture but if reforms are minimally successful in long term graft reduction then accelerated pace of transactions shall compensate for temporary entrepreneurial uncertainty.

This is ONE of the visible sign that state of economy suffered and suffering from recent policy or policy directive from external source. I have seen series of post on rosy picture on sector or portion of economy. But those encouraging data are largely result of work done in year or more ago. I had extensive discussion in business circle (transport assembler, garment exporter, agro processor etc) in Bangladesh and picture is not that rosy. In fact some action taken in name of anti corruption drive has stagnated economy in great extent and effects of those will be seen in coming months and year. We only hope this lull is only temporary.


Agree with what Tanzirian said. The actions against corrupt individuals plus the overall impression given to the world about the state of the country (especially by the sobbing hasina) is that it is under an unstable regime backed by the military. Not many people abroad are seeing things for what they are...which is that we have some very qualified, honest, and sincere people running the country now. Are they perfect? No...not by a long shot. Have they brought some meaningful change in the country? Absolutely. Much more so than past governments.

How long would we have gone on with that culture of corruption? Wouldn't it catch up to us? Wouldn't one day people decide (and this has probably happened already) that the price of bribing people are various levels and getting involved in such corrupt practices (which many governments have laws against -- US has the foreign corrupt practices act) just isn't worth it?

I guess what I'm trying to say is that we needed these reforms, even if some people are being overzealous. Once the democratic process is underway again, things will start to go back to normal (or even better) in terms of economic growth and such...so no worries :)

This is ONE of the visible sign that state of economy suffered and suffering from recent policy or policy directive from external source.

what is this external source you keep talking about snoq? Care to elaborate?

what is this external source you keep talking about snoq? Care to elaborate?



Let me start with answering Tmac. In case of Bangladesh economy there are multiple external forces. But major external forces are world bank (WB), EU, US and India. While EU try to influence BD economic policy with direct pressure (using $4 + billion export from BD as leverage).US by design and India (by using its nationals who works in WB) uses WB to dictate BD economic and import policy. But all these forces have their own interest.

If you reviewed recent 07-08 budget, you would notice govt has increased import tax on textile machinery and computer equipments which are thrust sectors in the economy. In textile along there few thousand cr taka invested by domestic investors. WB bank always been against Bangladesh textile sector (just like jute) and in fact prescribed textile and garments would not survive post MFA era. More we grow in export in textile and garment less we borrow from world bank.

Since, inception of high bandwidth internet backbone (submarine cable) computer and IT related business are gearing up in Bangladesh. Specially in the area of call centers and BO type of services. In this critical juncture increasing tax will benefit one country and I will leave that for you to guess.

But look at the sugar industry, we have been net sugar importer country, there has always been sugar and price crisis in the country. So last elected govt took some good initiative and encourage setting up raw sugar refinery which would keep price in check and reduce if not eliminate dependency. More than thousand cr taka invested in this sector. Govt has almost no tax on sugar import yet sugar refinery raw material like molasses has high tax imposed on (higher than sugar). Now you see these refineries who invested thousand cr taka are counting loss because of higher taxes yet sugar exporting country like India enjoying market access because virtually no taxes.

Sorry for long reply but I hope these examples make us realize that we are not in full control of our economic policy.

---------
BO – Back Office /Sometime also called BOO or Back Office Operation
MFA – Multi Fiber Agreement

great post snoq but what can a small country like Bangladesh do about it?

Agree with what Tanzirian said. The actions against corrupt individuals plus the overall impression given to the world about the state of the country (especially by the sobbing hasina) is that it is under an unstable regime backed by the military. Not many people abroad are seeing things for what they are...which is that we have some very qualified, honest, and sincere people running the country now. Are they perfect? No...not by a long shot. Have they brought some meaningful change in the country? Absolutely. Much more so than past governments.

How long would we have gone on with that culture of corruption? Wouldn't it catch up to us? Wouldn't one day people decide (and this has probably happened already) that the price of bribing people are various levels and getting involved in such corrupt practices (which many governments have laws against -- US has the foreign corrupt practices act) just isn't worth it?

I guess what I'm trying to say is that we needed these reforms, even if some people are being overzealous. Once the democratic process is underway again, things will start to go back to normal (or even better) in terms of economic growth and such...so no worries :)

In principal I agree with what Gohorons and tanzirian said about anti corruption. We can not sustain and advance with level of corruption going up. What I strongly disagree with the way this interim entity driven and driving its anti corruption agenda.

When fifty percent (by official and unofficial count) of Bangladesh economy run by money earned not so kosher way or paying taxes, issue of “black” money is not as simple as black and white. “Black” money is not unique to Bangladesh; every country in the world has percentage of their economy influenced by “black” money. Let me give you an example – ‘black” money influence in booming Dubai is not 10 or 20% it’s been said to be much higher than that. And talking about corruption from what I hear and learn from business man and colleague from India; it’s no less than Bangladesh. But in case of Bangladesh corruption and “black” money, it was sensationalized more than any place on earth. In fact this quick slam bam method of fighting corruption is according to wish of TIB sponsors. Please look up who are the sponsors. And sensationalization was one of the main intentions. Unfortunately there is greater politics involved in the whole TIB and sensationalization and I am not going to get into that.

Every country situation is unique and has to have unique solution. In our situation things are even more complicated as many businessman are directly involved in politics. Picking up businessman in middle of the night and then slam and bam is NO way to fight corruption. NOT in Bangladesh and NOT without any repercussion in the economy.This slamming and intimidation policy may be the only way uniform soldiers and Princeton phd holder can think of but there are far better way to deal with corruption in Bangladesh.

We should have used two three prong methods to fight our brand of big ticket corruption (please feel free to put your idea). One to provide productive investment opportunity for existing “black” money and two need to expand tax net (to include all eligible individual and business owners) and decrease tax evasion. Third method I would say strong vigilance and strict enforcement. Do we ask foreign investors if their money black or white? NO, so why should we discriminate against local one? Does any of the teachers who make millions of taka by private tutoring pay any tax? NO. There was even report Kamal Hossain lied about income in his tax return.

We can NOT (not practical) roll back corruption happened in the past by way of punishment but we can take preventive measures and minimize it in future. Even though these people earned “black” money; fear, intimidation and putting them in slammer would only defeat the purpose of greater and future good. We need to weigh in economic loss by using slammer policy vs cleaner future with gain by using reinvestment and better tax policy.

I am no way defending corrupt and black money holders but suggesting something based on our catch 22 situation. I am afraid there is no magic bullet for fighting corruption and there is no quick fix.

While I am no expert on degree to which nationals of any country (other than US) influence inner workings of WB, what I will say that the degree to which such a country is able to influence WB or greater US policy is because of industriousness of its people which has elevated them to positions previously excluded to nonwestern interests. While it may not be possible for BD to ever exert same level of clout on account of smaller population base, nonetheless there is a lesson there for our people on importance of using larger forces to benefit of one's country rather than trying to campaign against perceived (and often true) grievances of policy of such bodies. While WB undoubtedly exists to serve to forward interests of its controlling entities, nonetheless it does provide funds badly desired by developing countries (hence its success). The strings attached to such funds undoubtedly hamper development but the absence of them would also create significant hurdles in an uneven global playing field.

Snoq, the situations you described about external pressure and the affect on our governments policies is something every country, even our giant neighbour India has to deal with and pressures they bow to from time to time. It is the reality of the world and a frame work we have to work through in order to be successful. Sometimes appeasing our larger partners provides more benefits than forcibly fighting them no matter how bad that situation might sound, you just have to deal with it and work with it like many other countries successfully have.

And as for the corruption. I don't think appeasing to the corrupt leaders and businessmen would have solved anything as corruption had become such a fundamental and basic force in our society. Sometimes strong action is required to solve such a massive problem and though we are seeing problems in the short term, the fear this causes amongst businessmen and politicians provides extremely positive long term benefits. The economy will recover, it is bound to recover as the middle class is still growing and always demanding more. Before we had a system that just gave an illusion of growth and success but it lacked the underlying infrastructure and real growth. What we now have the potential of is finally seeing REAL growth.

Snoq, it would be helpful if you told us what the acronyms you use actually stand for..thanks!

great post snoq but what can a small country like Bangladesh do about it?

Tmac, you have asked very good and timely question. We were in verge of overcoming aid dependency. Main weakness of our economy or govt is there is not enough revenue to finance our annual development programs (ADP) like power plants, roads, schools etc. WB and donors forces us to adapt to policy against our interest using the lending as a coercive tool.

In BD 70% tax eligible individuals and business don’t pay tax or pay only fraction of what they owe. With 7% and higher economic growth we have real opportunity for strengthening and expanding tax base. As I had suggested earlier such effort for greater tax collection would enable us to fund all our development activity from our own resources. Besides, all other macro economic indicators (GDP growth, balance of payment, reserve etc) were healthy in BD. According to one estimate if we could have continued the same economic growth as 2005-2006, by 2011 we could have aid free budget.

Another avenue we need to peruse vigorously is meaningful FDI and I think I have already discussed what are those meaningful investments are.

Hope that give encouragement and answer to your question.

Snoq, it would be helpful if you told us what the acronyms you use actually stand for..thanks!

you got it, post updated.

While I am no expert on degree to which nationals of any country (other than US) influence inner workings of WB, what I will say that the degree to which such a country is able to influence WB or greater US policy is because of industriousness of its people which has elevated them to positions previously excluded to nonwestern interests. While it may not be possible for BD to ever exert same level of clout on account of smaller population base, nonetheless there is a lesson there for our people on importance of using larger forces to benefit of one's country rather than trying to campaign against perceived (and often true) grievances of policy of such bodies. While WB undoubtedly exists to serve to forward interests of its controlling entities, nonetheless it does provide funds badly desired by developing countries (hence its success). The strings attached to such funds undoubtedly hamper development but the absence of them would also create significant hurdles in an uneven global playing field.

Zaki said: Snoq, the situations you described about external pressure and the affect on our governments policies is something every country, even our giant neighbour India has to deal with and pressures they bow to from time to time. It is the reality of the world and a frame work we have to work through in order to be successful. Sometimes appeasing our larger partners provides more benefits than forcibly fighting them no matter how bad that situation might sound, you just have to deal with it and work with it like many other countries successfully have.

And as for the corruption. I don't think appeasing to the corrupt leaders and businessmen would have solved anything as corruption had become such a fundamental and basic force in our society. Sometimes strong action is required to solve such a massive problem and though we are seeing problems in the short term, the fear this causes amongst businessmen and politicians provides extremely positive long term benefits. The economy will recover, it is bound to recover as the middle class is still growing and always demanding more. Before we had a system that just gave an illusion of growth and success but it lacked the underlying infrastructure and real growth. What we now have the potential of is finally seeing REAL growth.

tanzirian,
I am sure these WB individuals are great individual achiever but when people use power of their office for personal bias and for undue influence then it’s become matter of ethics, corruption and legality. That was the focus of my effort. In Bangladesh corruption or illegal act is punishable for any of its citizen BUT do you know that WB forced GOB to pass law which makes WB employee immune from Bangladeshi law? What a hypocrisy WB devised against our own people?

Zaki
You are right about external pressure on other countries. It all about capacity and degree to which such pressure can be deflected. I would get to it in a moment. But on tax dodging I have given you coupled of examples. Point is, we can not let one group of people like Kamal Hossain dodge tax and accumulate wealth year after year BUT apply just opposite rule toward businessman. Besides, why are we rolling red carpet for foreign black money yet offering slammer for our own people? That would not take our country anywhere not in terms of anti corruption. Appeasement is big word I don’t think by any means my writing suggested that. Rather I suggested way out without destroying economic momentum we have. Once such momentum gone its not short tem issue, it ramification will haunt us for many years.

I have seen assumption been made on both Zaki and tanzirian post that somehow I am in fighting mission. Intention of my writing is not to fight these people but to expose their act and identify who is friend and who is foe. More importantly create awareness through discussion. As I replied to Tmac question that we were on verge of overcoming our aid dependency. If and when that time comes best thing to do is deflect these pressures. For now we have to concentrate developing self dependence trait and building capacity to get to that milestone.

You are right about the taxation issue, Snoq, though I am not sure if any govt has clout to make that change. I remember an attempt to introduce minimal tuition fees to Dhaka University some years ago, with aid to students who needed it...but the proposal had to be withdrawn after strong protests. Consequently even rich kids get a free ride. Income tax unfortunately engenders similar passions. Position of caretaker govt is somewhat precarious as it is...if they tried to add tax reform to other changes already ongoing, that may give political parties the fodder they need to turn public opinion in their favor. In absence of caretaker govt the only possibility of enacting such legislation would be concurrent support of both political parties...and I don't think our political process is as yet mature enough for such bilateral cooperation. At some point when general wealth has increased to a certain level, such proposal may become realistic...until then, I don't know. Certainly, if someone is able to introduce such reform, I am all for it. The extent to which such change can lower depedency on foreign loans, is beyond my knowledge, but I agree that it can't hurt.

Perhaps this article can shed some light to state of our economy and many of the points I have made last week. This is not to initiate debate but to promote better understanding.
--------------------------
Local industry reels under lender-driven policies

Nazmul Ahsan

The interim government has largely toed the line of the multilateral lending agencies over the past six months, formulating economic policies which, economists and business leaders say, compromise national interest and expose local industries to uneven competition.
It has also failed to contain a soaring bank borrowing, public-sector loss and per capita debt, and arrest steady decline in revenue earning.
The government has been successful to infuse the fear in people of all strata — especially those who have stayed beyond the tax net for long — that they must pay tax to avoid tax-related legal proceedings.
It remains to be seen whether the fear would translate into increased revenue collection and improved tax-GDP ratio.
In the budget for 2007-08, the government withdrew a four per cent infrastructure development surcharge on more than 2,600 finished and luxury items. Besides, about 400 industrial raw materials lost zero-tariff facility and about 1,200 others saw their import duty doubled to 10 per cent.
The government put into effect the new tariff regime on July 1 despite the express fear of economists, industrialists and members of the Federation of Bangladesh Chambers of Commerce and Industry and the likes that the fiscal measures would hit the local industry hard.
It has emerged that an Article IV mission of the International Monetary Fund during a visit to Bangladesh in May suggested that the government should withdraw the development surcharge and zero tariff facility for raw materials and increase the duty on capital machinery.
‘The government simply buckled under pressure from the IMF and the World Bank, compromising the interest of the local industry, which is unfortunate and frustrating,’ Professor Anu Muhammad of Jahangirnagar University tells New Age.
The government did draft a guideline on safeguard measures to protect the local industry from the dumping of low-quality imported products, which was scheduled to come into effect on July 1.
However, the backtracked on the plan to put the measures into effect, again at the insistence of the IMF, sources say.
‘It seems we have two governments: one of Fakhruddin Ahmed and the other of the World Bank,’ an industrialist tells New Age.
The interim government also corporatised three nationalised commercial banks in February and had them registered under the Companies Act in line with the recommendations of the lending agencies, especially the World Bank.
Preparation is under way to retrench the officials and employees of the Sonali, Janata and Agrani banks, and also either privatise or sell out the banks, finance ministry officials say.
‘Taking steps to bring dynamism in the nationalised commercial banks would have been wiser than corporatising them, which paves the way for takeover by foreign investors,’ an official of the central bank tells New Age.
The government’s decision to post an administrator with the Oriental Bank and impose a moratorium on its activities to protect the interest of the depositors was viewed by bankers as pragmatic. It is set to reorganise the bank soon, sources say.
Bankers also view the decision to raise the paid-up capital for scheduled banks from Tk 100 crore to Tk 200 crore as a reflection of the government’s determination to protect the interest of the depositors.
Meanwhile, revenue collection has continued to be a major drawback for the government.
The growth in revenue between January and June was about 10 per cent against a target of 21 per cent, sources in the National Board of Revenue say.
The government in April downsized the NBR portion of the revenue target to Tk 37,297 crore from Tk 41,055 crore, which could not be met either.
‘We are little behind the revised revenue target,’ Badiur Rahman, chairman of the revenue board, told New Age on Monday.
The revenue board is learnt to be facing a Tk 500-crore shortfall from the revised target and more than Tk 4,000-crore shortfall from the original target.
As a result, the government has had to borrow heavily from the banking sector.
The government’s borrowing from the banking system soared to a record high of Tk 6,486.06 crore in 2006-07, a Bangladesh Bank report shows. The amount exceeded the previous fiscal year’s Tk 6,041.50 crore, which was the highest in a decade.
According to the central bank report, the government borrowed Tk 1,429.47 crore from the Bangladesh Bank and Tk 4,641.35 crore from scheduled banks. It also borrowed Tk 415.24 crore from the market through treasury bonds and treasury bills. Finance ministry officials attribute the soaring bank borrowing to a poor inflow of foreign aid and grants.
The statistics of the Economic Relations Division put the disbursement of external funds at about $1.20 billion in 2006-07, down from $1.56 billion in 2005-06 and $1.48 billion in 2004-05.
Political volatility towards the end of 2006 and a slow implementation of development projects resulted in the lower-than-expected disbursement of the committed external funds, ERD officials say.
The public-sector entities, meanwhile, continued to incur heavy losses, totalling Tk 4,228.20 crore in 2006-07, the highest in a decade, mainly because of the international oil price volatility and depreciation of the taka against the dollar.
The amount is up by 51.44 per cent or Tk 1,379.59 crore from the corresponding period in the fiscal year before, according to the Bangladesh Economic Survey 2007.
The interim government has frozen bank accounts of above 100 politicians and businessmen and looked into the bank account details of over 500 politicians, businessmen and suspected tax evaders in the past six months.
The revenue board has already filed tax evasion cases against Ali Asgar Loby, a former lawmaker, and will soon lodge about 15 to 20 cases against tax-evading politicians, sources say.
The freezing of bank accounts and the cases against suspected tax dodgers prompted many to sort out their tax returns, tax officials claim.
Many people, who have never paid tax despite having taxable incomes, are rushing to the tax offices to file their returns, they say.
‘People of all strata and their lawyers every day rush to or call our offices to find out how they can escape possible tax evasion cases,’ a tax commissioner has told New Age.
High officials of the revenue board say they expect a surge in revenue collection in 2007-08.

http://www.newagebd.com/front.html#4

Amreteck LLC, USA is inviting Bangladeshi American and non Bangladeshi resident (NRB) business entrepreneurs and professionals to join in a business delegation trip in Bangladesh on December 25, 2007. This group will meet with Bangladesh Govt and key persons in Bangladesh foreign investment. I am expecting to sign multiple Mutual of Understanding (MOUs) with Bangladesh Govt during this trip.

Amreteck LLC, USA has identified three sectors in Bangladesh to invest:

1) ICT
2) Pharmaceuticals
3) Gas and Electricity

I am asking to submit your bio with your intention of investment. I am also preparing to create mutual fund from individual who has little means to invest in Bangladesh. This fund will be protected by law and regulation based in USA and personal responsibility.

You can join this delegation as an individual investor and/or you can join this mutual fund which will be invested in Bangladesh.

Why do you join this delegation/group?

This delegation will have more weight and impact on Bangladesh Govt decision to provide better benefit for expatriates investment rather than individual activities. Unified stand is better for any investment or opportunity. This delegation will have better outcome of your investment.

Why do we invest in Bangladesh?

A new investment opportunity has been created by the current political situation and Bangladesh is being cheapest source of manpower in South East Asia. Next three years will be golden era for foreign investment in Bangladesh. Bangladesh will have enough electricity within five years to sustain its industrial growth. Since corruption will be less than now, the cost of doing business will be less than before. As expatriate Bangladeshi investors, we will get better benefit from the Bangladesh Govt for our investment.

This delegation will have details discussion about Govt's help and how Bangladesh Govt will protect our investment. Please join me in this delegation to get great return of your investment and help Bangladesh to create more jobs.

I hope to hear from you soon. Please email me at MChowdhury@amreteckpharma.com your bio, proposals and if you have any questions.

Thanks,
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CEO of Amreteck LLC, USA
"A Leading Pharmaceuticals Service Company"
Email: MChowdhury@amreteckpharma.com
chow7402@aol.com
cgmpservices@yahoo.com
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http://www.bangladesh-web.com/news/view.php?hidDate=2007-07-19&hidType=INE&hidRecord=0000000000000000165992

IDC: PC shipments up in Bangladesh

Despite recent political upheavals that rocked the country, Bangladesh's PC market managed to register a 2.6 percent quarter-on-quarter growth rate in the first quarter of 2007, spurred by increased end-user awareness and falling PC prices in the consumer segment.

According to an IDC report released Wednesday, the country's PC shipments--which include desktops and notebooks--shifted 49,454 units in the first quarter of 2007. Desktops accounted for 90.7 percent of the market, but IDC said it expects notebooks to post a stronger 46 percent compound annual growth rate (CAGR) over the next four years, compared to a 25.7 percent growth for desktops.

The uncertainty brought about by Bangladesh's current political situation has led to a slowdown of PC shipments in the commercial segment, and the postponement of several multinational projects.

Likely to be put on hold until the second half of the year, pending resolution of the country's political crisis, these projects include World Bank-funded initiatives aimed at strengthening Bangladesh's local government system and the government's plans to implement smart IDs to maintain the integrity of the election process.

Linus Lai, research and consulting director at IDC, said delays of these large-scale projects had an adverse effect on the country’s overall IT spending, as businesses have become more conservative in terms of IT spending.

"Although a caretaker government has been appointed, businesses are currently adopting a wait-and-see approach toward their IT spending plans," Lai said in statement.

However, the IDC analyst added that the positive reception accorded by Bangladeshis to the caretaker government is something that could be built upon. Apart from its attempt to consolidate political bases to promote dialog, Lai observed that the new government is also making an effort to combat corruption within its own cabinet.

He noted that while the initiatives to combat corruption could deter some government agencies from making PC purchases, it could also demonstrate to the world the country's commitment toward creating a favorable destination for viable and stable investments.

According to another research house Forrester, there will be more than 1 billion PCs in use across the globe by end-2008. Much of this growth will be driven by the Bric bloc of countries--Brazil, Russia, India and China--which will account for over 775 million new PCs by 2015, the year when Forrester said global PC adoption will pass 2 billion.

http://www.zdnetasia.com/news/hardware/0,39042972,62028628,00.htm

Businessmen urge govt to come out of vicious cycle of IMF prescriptions


Twelve top business bodies on Wednesday resented the interference of international agencies, especially the International Monetary Fund, in the economic management of Bangladesh.
A joint statement of the Federation of Bangladesh Chambers of Commerce and Industry and 11 other business bodies urged the government to come out of the vicious cycle of the prescriptions made by the IMF and similar institutions.
‘Bangladesh businesses have been extremely critical of the interference of international agencies, particularly the IMF, in influencing and trying to impose conditions and dictate terms in every trifle detail of the economic management of a sovereign country,’ the statement said.
It said the recent IMF instruction to (Bangladesh’s) finance adviser directing further trade liberalisation and opposing the formation of a ‘safeguard body’ was ‘unwarranted.’
The business leaders said in comparison with other developing countries, Bangladesh, being an LDC member, had substantially liberalised its economy at the cost of hardship of entrepreneurs and common people, ‘even though under WTO umbrella, Bangladesh could avail itself of and follow more domestic support measures.’
The leaders said during the past two decades or so a number of Asian countries, through appropriate economic policy measures within the framework of the WTO, had achieved remarkable progress, transforming themselves from largely agrarian, underdeveloped economies into dynamic export powerhouses.
‘The experience of those high-performing economies provide many useful lessons for countries like Bangladesh in identifying the right policies and strategies to adopt, while reversing or shunning what have proved to be wrong strategies.’ the statement said.
‘The IMF prescription regarding further trade liberalisation is not at all desirable as it could not prove to help in achieving the desired growth level and alleviating poverty,’ the statement said.
They cited, as examples, Malaysia, Thailand, Singapore, South Korea and the Philippines which have come out of the Breton Woods prescription. ‘It is quite interesting to note that by following meticulous IMF prescription, Bangladesh has experienced a double-digit inflation.’
Resenting the IMF directive for the government to adjust domestic prices of natural gas, the statement said, ‘It will be a suicidal decision for the economy.… An increase in gas price automatically leads to the cost of production.’ It said an increase in fertiliser price would have effects on the already soaring prices of essential commodities. ‘The cost of doing business will also increase,’ with direct impact on the economy and the much-needed employment opportunities.
The business leaders iterated their earlier recommendations to effectively support local industries through fiscal and other measures.
They suggested ‘safeguard measures’ that are in place in other countries to boost export, create solid industrial base for the long-term benefits of the county and to create employment opportunities.
The signatories to the statement are FBCCI president Mir Nasir Hossain, International Chamber of Commerce, Bangladesh president Mahbubur Rahman, Metropolitan chamber president Latifur Rahman, Dhaka chamber president Hossain Khaled, Chittagong chamber president MA Latif, Foreign Investors’ Chamber of Commerce and Industry president Masih Ul Karim, Bangladesh Garment Manufacturers and Exporters’ Association president Anwar-ul-Alam Chowdhury, Knitwear Manufacturers and Exporters’ Association president Md Fazlul Hoque, Bangladesh Textile Mills Association president Abdul Hai Sarker, Employers’ Federation president Kamran T Rahman, acting Bangladesh Insurance Association chairman Nizamuddin Ahmed and Association of Banks vice-chairman Muhammad A (Rumee) Ali.

http://www.newagebd.com/front.html#1

Another WB prescription to raise agri loan interest rate when country is suffering from floods. Its very encouraging to see almost all business leaders in Bangladesh echoing concern raised here few weeks back. Its about time to marginalize influence of these so called int’l lending agency according to their contribution. That is mere 3% of GDP. I am afraid Fakruddin ex WB official at the helm of the country, if it would be possible to deflect WB bully?

Trade bodies urge govt not to raise interest rate of agri credit
.
.
The business community observed, "time is now ripe to think as to how long we should continue with our present dependence on "donor advice" for the meagre foreign assistance which has declined to less than 3 percent of GDI', the major share of which is credit and has to be repaid by the poor people of Bangladesh. Moreover, we should also ask a relevant question; how much of this assistance is really available and can be used to meet our priority needs of development?

http://www.thebangladeshtoday.com/back%20page.htm#back%20page%20-01

[Snoq Said on July 4th, 2007, 04:17 PM
In case of Bangladesh economy there are multiple external forces. But major external forces are world bank (WB), EU, US and India. While EU try to influence BD economic policy with direct pressure (using $4 + billion export from BD as leverage).US by design and India (by using its nationals who works in WB) uses WB to dictate BD economic and import policy. But all these forces have their own interest.]


That was one of my statement on how WB (same goes for IMF) and its officials from west of our border are trying to stifle and bully our economic policy. Many impressed by so called “anti corruption” show did not grasp the severity of WB/IMF vicious agenda and how this interim entity implementing these anti state contarcts. Since then whole business community and research organization asked govt not to subscribe to WB/IMF destructive prescription.

Read the article below, here comes another govt subscription of WB/IMF contract, PSI (policy support instrument). And with this contract IMF will not provide any loan to Bangladesh but before taking any loan from any lending agency Bangladesh has to seek IMF approval. Without IMF approval Bangladesh will not get any loan.

http://www.dailynayadiganta.com/fullnews.asp?News_ID=38273&sec=1

This will not only take away Bangladesh sovereignty over which loan we can accept but also hits at the core of our sovereignty itself. And guess who IMF has sent in Bangladesh to maneuver this anti Bangladesh agenda – ex indian finance secretary Adarosh Kishor.

Hope people would look at this interim entity beyond narrow focus of anti corruption show. Because agendas this interim entity is pursuing are far more detrimental to our economy and sovereignty.

Govt under fresh pressure to cut import duty


The government is under a fresh pressure from World Bank for two per cent cut in import duty on about 2800 finished and luxury goods, top officials in the government told New Age.
A senior economist of the global lender is the key man behind the fresh initiative in less than two months since the new budget, effective from July 1, withdrew 4 per cent surcharge on import of these items, also at the instance of multilateral lending agencies.
The officials said the interim government, headed by chief adviser Fakhruddin Ahmed, looks convinced by the World Bank’s proposal to lower the highest slab of import duty to 23 per cent from existing 25
per cent. The highest slab applies to less important imports, including luxury and finished goods.
The finance ministry and the National Board of Revenue are now busy weighing up the pros and cons of the lender’s proposal, which also deals with some other revenue-related issues, they said.
‘There was a written order from the chief adviser’s office to look into the matter of cutting the highest import duty slab by two per cent or rationalising current structures of supplementary duty along with a number of reforms in revenue matters,’ a high official in the ministry said.
The revised or rationalized duty measures are very likely to be put in force in the middle of the current fiscal year or in the next fiscal year depending on negotiation and relation between the government and the WB, he said.

The budgetary decision of lifting four per cent infrastructure development surcharge from several hundred items instantly met with concerns from economists and industrialists, who termed it an exit from the declared policy of the successive governments to support local industries.

The duty measure would open the floodgate of cheap imports and make local products uncompetitive even in the domestic market, industrialists and economists warned soon after the budget proposals were made public.
But the concerns were not addressed when the budget was finalized. A further cut in the import duty on finished and luxury goods would be a fresh blow to many local industries, which are already in a difficult time, many in the business feared.
Major products, which now fall under the slab of 25 per cent import duty include parent stock of day-old chicks, fish, milk and cream, cheese and cards, eggs, different fruits, coffee, tea, pig fats, biscuits, bread, pastry, fruit juices, soups, mineral water, sparkling wine, whiskies, vodka, gin and rum, cigars and cigarettes.
The basket also includes cement, face powder, shampoo, perfumes, shaving cream, toilet soap, photographic paper, mosquito coil, plastic products, tableware, rubber products, motor cars, leather goods, newsprint, paper and paper board, tissue paper, cotton fabrics, toilet paper, woven fabrics, carpets, textile fabrics, readymade garments, babies’ garments, women’s or girls’ suit and footwear.
Besides, steel products, razor and razor blades, metal products, air-conditioning machine, refrigerators, washing machine, microwave ovens, record players, cordless telephone handsets, telephone answering machine, all kinds of motor vehicles, musical instruments, wooden and metal furniture, electric lamps and ball-point pens are also included in the highest duty slab.
The present government, in the current budget, also removed zero duty import facility from above 400 industrial raw materials and imposed 10 per cent tariff.
Besides, it increased import duty on about 1200 items, mostly industrial machinery and raw materials from five per cent to 10 per cent at the insistence of the WB, sources said.
The budgetary measures contributed a lot to the increasing costs and prices of local products.
The price situation would go worse if duty slab is revised downward, an economist said.
The two global lenders— WB and International Monetary Fund— have been under fire for their increasing influence on the country’s economic and trade policies.
Major trade bodies in a joint statement recently urged the government to come out of the mire of the WB and the International Monetary Fund as they viewed the lenders’ prescriptions often proved to be anti-industrialisation.

http://www.newagebd.com/2007/aug/26/front.html#4

Remittance jumps to $567.11m in July

The country’s remittance inflow jumped to 567.11 million dollars in July compared to 412.80 million dollars in the same month in last year, according to the figure of Bangladesh Bank.

Expatriates sent record 5,978 million dollars remittance in the last fiscal, which was 4,801 million dollars in the previous financial year.

The highest amount of remittance 162 million dollars came from Saudi Arabia.
The foreign currency inflow from the United States went up to 89.91 million dollars from 88.29 million dollars in June and 61.45 million dollars in July last year.

A total of 80.94 million dollars was remitted from the United Kingdom. In June, the amount was 73.85 million dollars and in July last year it was 51.47 million dollars.

http://www.newagebd.com/busi.html#7

Revenue earnings post 14pc growth

Revenue earnings posted a 14 per cent growth in the first two months of the current fiscal year over the year ago period, making taxmen hopeful of achieving the whole year income target.

National Board of Revenue has earned Tk 5,753.71 crore as taxes and duties during July-August period of the current 2007-08 fiscal year, statistics show.

All the revenue heads posted positive growth with income tax scoring the highest 52.29 per cent increase on the back of intensified drive against tax evasion, revenue officials said.

The earnings target for the whole fiscal year has been set at Tk 43,850 crore, up from Tk 37,174.23 crore earned in the year before.

Top revenue officials said they would be able to achieve the yearly target by the end of the current fiscal year.

Earnings from income tax stood at Tk 1038.51 crore during the first two months of the fiscal, up from Tk 681.92 crore of the same period of the previous fiscal year, showed official figures.

‘The drive against tax evasion along with ongoing scheme of whitening undisclosed money contributed to the robust growth in income tax,’ a high official in the NBR told New Age.

He hoped that the pace of enhanced income tax would continue until the end of the fiscal year and help the revenue board meet its earnings target.

Income from import duty during the period was Tk 1311.58 crore, Tk 20.03 crore or 1.55 per cent higher than the earnings of the year-ago period.

Tk 1,051.26 crore was earned from the head of value added tax (import level), which is Tk 80.46 crore or 8.29 per cent higher than the earnings generated in the same period last year.

Supplementary duty added Tk 203.83 crore to state coffers, up by Tk 21.42 crore or 11.74 per cent from the year-ago period.

‘Similar drives initiated by joint forces and customs officials against duty evasion resulted in the positive growth in revenue earnings from import sources,’ a senior official in the customs department said.

NBR figures show, earnings from VAT at local level were Tk 1183.72 crore during July-August period, up by 5.85 per cent from the earnings of the same period last year.

Supplementary duty fetched Tk 915.55 crore or 20.55 per cent more than the year before from local sources.

Incomes from excise duty and turnover tax grew 43.38 per cent and 11.82 per cent respectively.

Apart from continuing stringent drives against tax and duty evasions, revenue officials would focus on motivational efforts to sustain the income growth as they feel that measures that frighten taxpayers would not give dividend in the long run.

http://www.newagebd.com/busi.html

52 Percent Increase in Income Tax Collection??Nows thats what I call an efficient Government!

very efficient indeed

question:


A while ago someone had posted a Golman Sachs report about Bangladesh economic boom... and Bangladesh being in G12 nations. A similar artical from a different source was possted sometimes later. where can i find those articles.

question:


A while ago someone had posted a Golman Sachs report about Bangladesh economic boom... and Bangladesh being in G12 nations. A similar artical from a different source was possted sometimes later. where can i find those articles.

If I am not mistaken, the Goldman Sachs report you refer to is the "Next Eleven" report (not "G12"). There is an article about this report on Wikipedia...check it out...they may have some links. Not sure what the second article is that you refer to.

If I am not mistaken, the Goldman Sachs report you refer to is the "Next Eleven" report (not "G12"). There is an article about this report on Wikipedia...check it out...they may have some links. Not sure what the second article is that you refer to.

Oops... I meant N-11. Thank you. Second article was from TIME or some other magazine.

Oops... I meant N-11. Thank you. Second article was from TIME or some other magazine.

You mean the one Mirza uses as his signature? You could probably do a google search on it.

You mean the one Mirza uses as his signature? You could probably do a google search on it.

Could be the same one - but someone (maybe Mirza) had copied and pasted another article in one of our threads. It was only a couple of months ago. Maybe it wasn't even TIME.

are you referring to this one?

http://www.skyscrapercity.com/showthread.php?t=366666

Meghnarmajhi,I believe you are looking for this:


Strategist takes long view to new limits
UBS economist's formula considers emerging markets
David Berman, Financial Post
Published: Thursday, June 14, 2007

There is long-term strategy, and then there is the kind of strategy espoused by Andreas Hoefert, chief global economist at UBS: Rather than look at what is coming down the pipe later this year, look at 2025 and 2050.

Unusual? You bet. But his ideas could have a big impact on investors as emerging markets move up the ranks of the world's largest, and potentially most important, economies in the coming decades.

To measure the economic size of various countries, he modified gross domestic product numbers by incorporating purchasing power into his statistics. This allowed him to convert, for example, China's GDP into U.S. dollars without losing sight of the fact that the U.S. dollar goes a lot further in China.



Using this technique, the United States is today's largest economy, followed by the European Union, China, Japan, India and Germany.

But things get more interesting in 2025, when China takes the No. 1 position, followed by the United States, the EU, India, Japan, Brazil and Indonesia. By 2050, India moves into the No. 2 position, behind China. As well, countries such as Pakistan, Mexico and Bangladesh crack the top 12.

His projections use a complex formula that takes into account such things as capital and labour growth. Here, many emerging markets do well in the projections because of the fact that their populations are growing fast and are heavily skewed toward younger workers. Developed economies are suffering from the opposite trend.

From an investing perspective, these changes are important. For investors who are reluctant to go global, they could provide one more incentive to ramp up exposure to foreign equities in general and emerging market equities specifically.

That can be a hard sell among many North American investors who prefer the familiarity and relative stability of the home front. Right now, most strategists recommend exposures of just 5% to emerging market stocks -- a number that could rise dramatically in the years ahead as they gain greater importance on the international stage.

"Some of these economies will disappear from the emerging markets sphere," Mr. Hoefert said in an interview. "Currently, it is very debatable whether Eastern European countries or Korea, Taiwan and Singapore can still be considered as emerging markets. We don't think so."

Mr. Hoefert added investors should also consider the rates of growth among the developing giants, since fast economic growth often translates into a booming stock market. As fast as China is expected to grow by 2050, he noted India is actually expected to grow even faster. Vietnam, which is not expected to make the top 15 largest economies by 2050, also has an excellent growth story to tell, given its young, educated workforce and stable political environment.

Yes, long-term projections have a habit of going awry as reality catches up. Capital growth could take a wild turn over the next 43 years, and the developed world could benefit from either a surge in its birth rate or rising immigration. The increasing desire for resources, including water, could also be a sticky issue.

But if successful investing is about anticipating change, this could be one of the surest changes coming.

Thank yoy Tan, Mirza, Tmac..... I was referring to the Mirza's article. After reading them .. I think I can use both.

Another question:

Anybody knows who the co-author Hasan Shariar of the Newsweek article is? I knew a journalist by that name. A Sylheti gentleman, a brilliant journalist, used to work for Pakistan's leading English daily - Dawn. If this is the same Hasan Shariar - he should be in his 60s now. His specialities are Economics and Politics.

no problem man. What are you up to anyways?

^^ nothing in particular. They will come in handy when I am bragging about Bangladesh. Sometimes people don't listen....:bash:

^^ nothing in particular. They will come in handy when I am bragging about Bangladesh. Sometimes people don't listen....:bash:

:lol: at least you have some facts to show them, good thinking.

Bangladesh's foreign exchange reserve likely to touch $5.5 bln

Bangladesh's foreign exchange reserve is expected to touch 5.5 billion U.S. dollars by early November for the first time because of disbursement of a soft loan by a multilateral donor agency and robust growth of remittances.

The World Bank (WB) is likely to release the International Development Association (IDA) credit worth 75 million U.S. dollars shortly, local newspaper The Financial Express reported Thursday.

"We are hopeful about receiving the fund from the World Bank shortly," a central bank senior official was quoted as saying, adding that the fund will directly add to the country's foreign exchange reserve.

The government has already signed a loan agreement for 75 million U.S. dollars with the IDA of the World Bank to help finance part of the fiscal 2007-08 (July 2007-June 2008) resource gap incurred as a result of the floods.

The foreign exchange reserve rose to 5.206 billion U.S. dollars Wednesday following increased flow of remittances, reasonable export growth and a normal import trend, official sources said.

The flow of inward remittance jumped by around 26 percent in September over August due to the advent of the holy month of Ramadan as well as Eid-ul-Fitr festival.

The remittances from Bangladesh nationals working abroad were estimated at 592.78 million U.S. dollars in September, up 25.86 percent from August.

http://english.people.com.cn/90001/90778/6285798.html

Inflation in Bangladesh down to 9.6% in September

Bangladesh's point to point inflation for the month of September stood at 9.6 points according to provisional figures, local newspaper The Financial Express reported Thursday.

The point to point inflation climbed down below the double digit compared to that in July and August, official sources said.

The point to point inflation hovered around above the double digit level for the July-August period that posed a serious threat to the country's macro economic stability.

The point to point inflation reached 10.10 points in July for the first time in the last two decades and went up further to 10.11 points in August this year.

Sources did not disclose the details of the provisional estimation on the food and non food inflation and their impacts on the rural and urban areas.

However, the provisional data prepared by the Bangladesh Bureau of Statistics (BBS) and sent to the planning ministry showed that food inflation has dropped in both rural and urban areas.

http://english.people.com.cn/90001/90778/6285802.html

Forex reserve may hit $6b by Dec
Staff Correspondent


The country’s foreign exchange reserve is expected to reach $6 billion by the end of this year, if the government receives the payment for Rupali Bank privatisation by December, said a Bangladesh Bank high official.
The forex reserve now is $5.255 billion and another $200 million is likely to be added to it from remittance inflow in the next two weeks, the official said.
The World Bank will also release $75 million as the fourth instalment of its Development Support Credit this month, he added. The country is in a comfortable position in terms of foreign exchange reserve as it has enough to bear more than three months’ import payment.
‘Not only that, foreign investors and multilateral lenders feel comfortable as the country has enough reserve to repay or expatriate their money,’ he said.
A robust remittance of $6 billion and hefty export payment of $12.17 billion pushed the reserve to $5 billion level, he explained.
The government should give more emphasis on training human resources to send more people abroad to increase remittance, he suggested.
In the first quarter of the current fiscal year, remittance inflow jumped by 16 per cent to $1,542 million from $1,330 million in the same period of the last fiscal year, according to central bank statistics.
Money inflow went up $592 million in September against $471 million in August due to Eid and Puja festivals.
Meanwhile, a representative of the UK-based First Solution Money Transfer Limited has contacted with the central bank to seek its approval to resume business with seven local banks, said another central bank official.
The First Solution allegedly siphoned 1.7 million pound sterling from about 2,000 Bangladeshis leaving in East London in June.
‘We advised the representative to seek BB permission through the banks they have drawing arrangement with,’ he said.
The primary concern of the central bank is whether the remitters will get their money back or not, he said.
‘If the remitters get their money back and the embassy in the UK gives positive report about the company, we may consider giving the banks permission to have business with the money exchange house,’ he added.
The central bank governor, Salehuddin Ahmed, recently said the Bangladesh Bank had amended the guidelines for drawing arrangements between banks operating in Bangladesh and exchange houses abroad so that no scam like the First Solution one could ever occur in the future.

Source:http://www.newagebd.com/busi.html#1

Foreign nationals won't be allowed to work for over 5 yrs


The Board of Investment (BoI) has decided not to allow any foreign national to work in Bangladesh for over five years in order to encourage transferring technical know-how to local people.

The BoI will also not allow any ordinary workforce from abroad to ensure more jobs to the locals in industries fully owned by foreign nationals or joint venture companies.

"If any industry desires to transfer technical know-how to the local people, five years is enough for the task," a BoI director told The Daily Star on Thursday. As a least developed and over populated country, Bangladesh is not able to accommodate unskilled work forces in different industries, he added.

The decisions were taken after a taskforce recently identified that a few foreign nationals working here hid their actual income to evade government revenue. Following the revelation, the BoI cancelled around 25 work permits.

The board is also working on other complaints regarding tax evasion by foreign nationals.

As part of the tightened policy, the BoI is not allowing foreign nationals whose income is shown below $500 a month.

Meanwhile, many owners of shrimp hatchery plants blamed that the home ministry is objecting to a majority of their work permits without any valid ground.

They said the industry is heavily dependant on Thai experts, but the home ministry has rejected a good number of work permit applications from Thai nationals on grounds that locals are able to do the same task.

At an inter-ministerial meeting the BoI decided to hold two meetings a month instead of one to speed up the process of approving work permits.

The board has so far approved 1,140 new work permits and renewed about 1,460 permits on a two-year term basis in the last nine months.

Foreign nationals are working in Bangladesh in mainly textile and telecom sectors, buying houses, hatchery plants, aviation, cement, glass, software and re-rolling industries.


http://thedailystar.net/story.php?nid=8220

^^i know some people will differ with me on the issue..... but personally, i support the decision.

^^i know some people will differ with me on the issue..... but personally, i support the decision.

I don't understand why this is a BOI policy decision. Shouldn't it be under national immigration policy which is the domain of the home ministry? BOI being an agency should be able to make recommendations.

To my mind, the five year limit is rather arbitrary, because one size does not fit all. They should set the limit based on specific industries, technologies, etc.

^^I wasn't talking about which department should do it and how exactly it should be implemented. More than anything else, manpower is our biggest resource and we need to create skilled workers. Five years is arbitrary and I don't think they'll be able to stick to it.

Anti-graft drive, flood to lower GDP growth to 5.5pc: IMF

The International Monetary Fund has said the country’s economic growth may slow down to 5.5 per cent in the current fiscal year due to impacts of anti-corruption drive and recent flooding.This means the country’s gross domestic product will be less by about Tk 8,000 crore from official estimate of Tk 5,30,300 crore at the end of 2007-08 fiscal year.

The IMF projection for Bangladesh’s GDP growth stands much lower than the earlier Asian Development Bank forecast of 6.5 per cent and also the World Bank’s estimate of 0.20 per cent decline in economic growth due to flood.Neither the ADB nor the World Bank, however, linked the anti-corruption drives to the country’s growth prospects.The government expects a 7 per cent economic growth for the year to June 2008.‘While the flood is estimated to have had a limited impact on the economy, the anti-corruption campaign has led to uncertainty in the business community, temporarily disrupted activity in some sectors, particularly construction, and has dampened overall investment,’ reads an IMF memorandum, submitted to the government recently.

‘As a result, growth in FY08 is projected to slow down to 5.5 per cent,’ forecasts the memo, styled ‘economic and financial policies for November 2007,’ which seeks to set fiscal and economic agenda for the government to qualify for future IMF assistance.The ADB in September forecast that Bangladesh economy would grow at 6.5 per cent in the 2007-08 fiscal year. World Bank country director Zhu Xian in August feared that the July-August flooding could lower Bangladesh’s GDP growth by 0.20 per cent. He made the projection before the second spell of flood hit almost half of the country’s 64 districts in September.

Official estimates of crop losses from the twin floods during the July-September period stand at Tk 4216 crore, or about 0.80 per cent of the projected GDP. Besides, 16,500 kilometers of roads were completely or partially damaged due to the flooding, requiring additional spending which would widen the budget deficit. Businesspeople and economists on several occasions warned that the wholesale drive against corruption would erode the business and investment confidence, leading to growth stagnation. Business leaders frankly expressed their concerns earlier at a high-profile meeting with the chief adviser and the army chief, who assured them of not taking any further step which could affect business sentiment.

Intensified drive against corruption suspects and tax-dodgers landed at least 219 persons, mostly politicians and businesspeople, in jail since the interim government took office in early January. The drives prompted many others to leave the country in fear of legal action.

Businesses of about 30 leading corporate houses have slumped and more than three lakh jobs have become uncertain as their top bosses, implicated in corruption cases, are either in jail or hiding, corporate sources said.

Commercial banks are scared of keeping in touch with the business magnates in disarray, who were once their valued clients. Most of the corporate accounts are blocked or kept under close monitoring of regulators.Jamua, Basundhra, Partex, Beximco, Bengal and Globe Janakantha groups are among them.Amid worries of the bankers, the central bank suggested that banks should sort out the issues with key corporate clients to keep the businesses and production uninterrupted. Economist Hossain Zillur Rahman said the GDP growth would obviously be lower than projected due mainly to wholesale anti-corruption drive and recent flooding.

‘The anti-corruption drive could have been in a limited scale. The way it was initiated made everyone presume that he or she would be the next target, which resulted in slumping business confidence,’ he told New Age on Saturday.He, however, felt that the IMF should have elaborated its assessment of the economic cost of the anti-corruption campaign.

http://www.newagebd.com/front.html#5

Bangladesh Taka Appreciating Against U.S. Dollar

Bangladesh Taka (BDT) has started appreciating against the U.S. dollar following intervention by the central bank of Bangladesh in the foreign exchange market, treasury officials say in the capital, Dhaka on Monday.

The Bangladesh Bank (BB), the country's central bank, took the move against the backdrop of a rising trend of the U.S. dollar against the local currency due mainly to the recent rush in settlement of import bills.

"We will continue to intervene in the market if necessary," a BB senior official told AHN in Dhaka, adding that that the central bank is closely monitoring the overall market situation.

Under the move, the central bank sold US$65 million at a rate of BDT 68.68 to eight commercial banks on the day to meet the growing demand for the greenback in the inter-bank foreign exchange market.

The local currency appreciated by 0.04 per cent against the U.S. dollar on Monday and this trend is likely to continue if the central bank intervenes in the market regularly.

"It is the proper step by the BB to bring normalcy in the foreign exchange market that will also help the local currency appreciate against the greenback slowly," a senior treasury official of a commercial bank told AHN in the capital, Dhaka.

The central bank of Bangladesh has started intervening in the market when the country's foreign exchange reserve touched $5.40 billion. However, the reserve might decline slightly by the first week of November due to a regular payment to the Asian Clearing Union (ACU).

http://www.allheadlinenews.com/articles/7008984797

Export earnings in two months decline


The country's export earning in first two months of the current fiscal 2007-08 totalled $ 2.3 billion, recording a decline by 11.69 per cent from that of the same period of the previous year.

According to statistics of the Export Promotion Bureau (EPB), the export earning also fell short of target by 23.06 per cent against the strategic export target $ 2641.90 million following poor shipments of woven garments and knitwear.

In August, 2007, total export receipt stood at $1397.7 million.The country's export earning in July, the first month of the year, dropped to $ 902.33 million or 21.08 per cent fall over the corresponding month of the previous year. For the current fiscal, the export target has been set at $14.5 billion, projecting a growth of 19 per cent over receipts in fiscal 2006-07. During the last fiscal, the country fetched $12.8 billion against the export target of $ 12.5 billion.

Prolonged political turmoil and congestion of containers at the Chittagong seaport have been cited as main reasons for such a drastic fall of export earning in first two months of the current fiscal. Export earnings in both July and August, 2007, were short of the target as well as receipts of first two months of last fiscal Officials of the EPB and concerned business associations said the overall export has suffered as two major items -- woven and knitwear garments - less than expected buy-orders in August like that in July.

They, however, said the export performance in August improved somewhat after a sharp fall in July. "We are optimistic that export in the second quarter will help recover the shortfall of the first quarter," said a senior official. The apparel units are expected to receive bulk orders from October to December this year, he noted.

However, earning from woven garments declined by 16.59 per cent to $762.22 million in July-August, 2007 compared to the same period of the previous fiscal, missing the strategic export target of $983.88 million. Earning from knitwear stood at $791.79 million during the period, which is 12.01 per cent down compared with the receipt in July-August last year. The current year's knitwear export target $995.72 million.

Apart from this, export of jute goods, leather, pharmaceuticals, handicrafts, home textile and tobacco marked a declining trend in the second month of the current fiscal. Only the export of some agro-processed items, vegetables, raw jutes and frozen foods recorded a rise compared to their strategic target set for the fiscal.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=15801

There is no question that reckless activity of current administration has shattered investor confidence. Now foreign countries are echoing the fear….

-------

German envoy emphasises restoration of investors’ confidence


The German ambassador to Bangladesh, Frank Meyke, has stressed the need for striking the ‘right balance’ between the ongoing fight against corruption and protection of the economy and public interest.Meyke, while addressing a gathering of diplomatic correspondents in Dhaka on Monday, also spoke in favour of creating a ‘sustainable political climate congenial to foreign investment with democracy and human rights stabilised and strengthened’.

‘The fight against corruption and protection of the economy and public interest needs the right balance. The fight against corruption should not lead to more harm than good to the general people,’ cautioned the European diplomat. He further observed that Bangladesh is still widely perceived as a land of floods, poverty and corruption, with significant obstacles on the ground that are ‘intimidating to the newcomer’. He listed the pervasive bureaucratic red tape, frequent power cuts, congestion in ports and frequent strikes and blockades as being obstacles to progress.

It is for these reasons that investors from his country are still reluctant to invest in Bangladesh even though they know that Bangladesh’s investment regime, including legal framework, is one of the best in Asia, and features various fiscal incentives and easy repatriation of money, said Meyke. German investment in Bangladesh now amounts to about 50 million euros only, he said, adding that there was considerable potential for expansion.

The Diplomatic Correspondents Association of Bangladesh organised the roundtable at the Dhaka Reporters Unity’s auditorium. The association’s president, Anis Alamgir, chaired the meeting and its general secretary, Raheed Ejaz, delivered the welcome address.The ambassador, dwelling on the political situation, expressed his confidence that the already announced election roadmap and legally binding reforms of political parties would be ‘decisive factors in regaining the confidence of buyers and achieving strong export growth for Bangladesh again’.

Meyke announced that the German government was providing $3,50,000 more to the ongoing rural infrastructure development programme for repairing the roads and culverts damaged by the recent floods.

http://www.newagebd.com/busi.html#2

Maybe 2 months is long enough to see the trend.

What do you think about this report? Just another report? We are 107


http://www.gcr.weforum.org/

United States 1 5.67 1 1
Switzerland 2 5.62 2 4
Denmark 3 5.55 3 3
Sweden 4 5.54 4 9
Germany 5 5.51 5 7
Finland 6 5.49 6 6
Singapore 7 5.45 7 8
Japan 8 5.43 8 5
United Kingdom 9 5.41 9 2
Netherlands 10 5.40 10 11
Korea 11 5.40 11 23
Hong Kong SAR 12 5.37 12 10
Canada 13 5.34 13 12
Taiwan, China 14 5.25 14 13
Austria 15 5.23 15 18
Norway 16 5.20 16 17
Israel 17 5.20 17 14
France 18 5.18 18 15
Australia 19 5.17 19 16
Belgium 20 5.10 20 24
Malaysia 21 5.10 21 19
Ireland 22 5.03 22 22
Iceland 23 5.02 23 20
New Zealand 24 4.98 24 21
Luxembourg 25 4.88 25 25
Chile 26 4.77 26 27
Estonia 27 4.74 27 26
Thailand 28 4.70 28 28
Spain 29 4.66 29 29
Kuwait 30 4.66 30 30
Qatar 31 4.63 31 32
Tunisia 32 4.59 32 33
Czech Republic 33 4.58 33 31
China 34 4.57 34 35
Saudi Arabia 35 4.55 n/a n/a
Puerto Rico 36 4.50 n/a n/a
United Arab Emirates 37 4.50 35 34
Lithuania 38 4.49 36 39
Slovenia 39 4.48 37 40
Portugal 40 4.48 38 43
Slovak Republic 41 4.45 39 37
Oman 42 4.43 n/a n/a
Bahrain 43 4.42 40 48
South Africa 44 4.42 41 36
Latvia 45 4.41 42 44
Italy 46 4.36 43 47
Hungary 47 4.35 44 38
India 48 4.33 45 42
Jordan 49 4.32 46 46
Barbados 50 4.32 47 41
Poland 51 4.28 48 45
Mexico 52 4.26 49 52
Turkey 53 4.25 50 58
Indonesia 54 4.24 51 54
Cyprus 55 4.23 52 49
Malta 56 4.21 53 51
Croatia 57 4.20 54 56
Russia 58 4.19 55 59
Panama 59 4.18 56 60
Mauritius 60 4.16 57 55
Kazakhstan 61 4.14 58 50
Uzbekistan 62 4.13 n/a n/a
Costa Rica 63 4.11 59 68
Morocco 64 4.08 60 65
Greece 65 4.08 61 61
Azerbaijan 66 4.07 62 62
El Salvador 67 4.05 63 53
Vietnam 68 4.04 64 64
Colombia 69 4.04 65 63
Sri Lanka 70 3.99 66 81
Philippines 71 3.99 67 75
Brazil 72 3.99 68 66
Ukraine 73 3.98 69 69
Romania 74 3.97 70 73
Uruguay 75 3.97 71 79
Botswana 76 3.96 72 57
Egypt 77 3.96 73 71
Jamaica 78 3.95 74 67
Bulgaria 79 3.93 75 74
Syria 80 3.91 n/a n/a
Algeria 81 3.91 76 77
Montenegro 82 3.91 n/a n/a
Honduras 83 3.89 77 90
Trinidad and Tobago 84 3.88 78 76
Argentina 85 3.87 79 70
Peru 86 3.87 80 78
Guatemala 87 3.86 81 91
Libya 88 3.85 n/a n/a
Namibia 89 3.85 82 72
Georgia 90 3.83 83 87
Serbia 91 3.78 n/a n/a
Pakistan 92 3.77 84 83
Armenia 93 3.76 85 80
Macedonia, FYR 94 3.73 86 84
Nigeria 95 3.69 87 95
Dominican Republic 96 3.65 88 93
Moldova 97 3.64 89 86
Venezuela 98 3.63 90 85
Kenya 99 3.61 91 88
Senegal 100 3.61 n/a n/a
Mongolia 101 3.60 92 89
Gambia, The 102 3.59 93 103
Ecuador 103 3.57 94 94
Tanzania 104 3.56 95 97
Bolivia 105 3.55 96 100
Bosnia and Herzegovina 106 3.55 97 82
Bangladesh 107 3.55 98 92
Benin 108 3.49 99 107
Albania 109 3.48 100 98
Cambodia 110 3.48 101 106
Nicaragua 111 3.45 102 101
Burkina Faso 112 3.43 103 114
Suriname 113 3.40 104 104
Nepal 114 3.38 105 105
Mali 115 3.37 106 115
Cameroon 116 3.37 107 99
Tajikistan 117 3.37 108 96
Madagascar 118 3.36 109 111
Kyrgyz Republic 119 3.34 110 109
Uganda 120 3.33 111 110
Paraguay 121 3.30 112 108
Zambia 122 3.29 113 118
Ethiopia 123 3.28 114 116
Lesotho 124 3.27 115 102
Mauritania 125 3.26 116 117
Guyana 126 3.25 117 113
Timor-Leste 127 3.20 118 120
Mozambique 128 3.02 119 119
Zimbabwe 129 2.88 120 112
Burundi 130 2.84 121 122
Chad 131 2.78 122 121

Maybe 2 months is long enough to see the trend.

This statistics from first two months of this fiscal but export downward trend continued form last fiscal. Going by projection of BGEMA export target would be missed in coming months as well. Then again for some reality never sets well.

In 2006 Bangladesh ranked 92 in the Global Competitiveness Index (GCI).

In 2007 with shattered business confidence because of all rack less action by administration Bangladesh slide 15 place down in 107.

I think Business community and people are getting ominous message.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=15893

Remittance flow jumps 28 per cent in 4 months

Remittance inflow jumped by 28 per cent in the first four months of the current fiscal to $2191.6 million, according to the Bangladesh Bank data.

Bangladeshis working abroad sent $562.87 million in October which was $590.67 million in September due to Eid and Puja festivals, said an official of the central bank. In August $470.95 million remittance was sent and in July the figure was $567 million.

If the trend continues throughout the fiscal, the country would receive over $6.5 billion remittance this year, said the official.

A total of $5.98 billion remittance came to the country which cautioned the trade deficit shock of $3.3 billion in the last fiscal.

Bangladeshis in Saudi Arabia sent the highest amount of $469.16 million in the first three months of the current fiscal against $456.13 million in the same period in the last fiscal.

The United States, the United Arab Emirates, the United Kingdom and Kuwait were the four other countries from where $885.47 million remittance came.

Out of the total $5.98 billion remittance received last year, $5 billion was sent by the expatriates working in the five countries.

http://www.newagebd.com/busi.html

Its amazing how our remittance inflow keeps Rising Rising and Rising all the time.Anybody know the position of Bangladesh among countries receiving highest inflows of remittance?

Essentials
6 items get costlier by 30-217pc in few months
Inflation rate drops in September
Star Report


Prices of six major essential items, which basically contribute to measuring inflation, increased by 30 to 217 percent in last few months, according to Trading Corporation of Bangladesh (TCB).

Prices of these items -- rice, flour, lentil, edible oil, potato and onion --continued to rise till yesterday.

The overall inflation rate on point-to-point basis reached 9.6 percent in September, which was 0.52 percentage point lower than that in August, according to Bangladesh Bureau of Statistics (BBS) data.

But retail market prices of the major essential items give a different picture. Their prices increased even in September.

TCB data show that in September, prices ( per kg ) of coarse rice increased by 26 percent, flour 44 percent, lentil 10 percent, soybean oil 41 percent, onion 80 percent and potato 3 percent compared to that a year earlier.

In October, prices per kg of coarse rice increased by 27.78 percent and in case of wheat the increase was 60.98 percent compared to that in the previous year.

TCB report for the current month till Tuesday said prices of rice increased by 29 percent to 37percent in a year.

Prices of coarse rice, most used food item of general people, were Tk18 to Tk 19 a kg last year while the prices now are Tk23 to Tk25 a kg. Prices of medium quality rice increased by 30 percent in a year-- the prices being Tk 27 a kg now and Tk19-21 last year.

Prices of fine rice increased by 37 percent during the period -- the prices rising to Tk36 per kg and in some cases over Tk40 per kg compared to Tk22-26 last year.

Flour (retail) prices increased by 63percent in a year and reached Tk36 per kg till Tuesday. Prices of packed flour prices rose by 65 percent during the period, and it sold at Tk38 a kg on Tuesday in different kitchen markets in Dhaka.

Soybean oil (loose) sold Tk90 a kg and 5-litre pack Tk 460 each on Tuesday compared to Tk56 and Tk290 a year ago.

Both imported and local lentil prices soared to Tk80 a kg from Tk60-65.during the same period.

TCB statistics shows that in terms of increase in retail prices, onion tops the list. Its price rose by 173 percent to 217 percent in a year.

Local onion sells Tk58 a kg now while the price was only Tk 20 a kg a year earlier. Prices of imported onion were Tk21 a kg a year ago compared to Tk56 a kg now.

Prices of imported powder milk and local liquid (milk vita) also rose significantly in last one year. Diploma brand milk (per kg) now sells at Tk470 as against Tk305 a year ago.

Besides, prices of some other goods also rose in the last one-year. Prices of some items like sugar and egg however remained steady.

Meanwhile, government high-ups repeatedly blamed price hike of essential commodities in global market for the price spiral in local market.

But consumers do not seem to accept their augment. Many of them pointed out that not only imported goods but also local products have gone beyond general people's purchasing power.

Finance ministry sources attribute the price hike in local market to supply problems.

According to official data, requirement of major food grain in fiscal 2006-07 was 251 lakh tonnes while net local production was 248 lakh tonnes. Import of the items totalled 24.23 lakh tonnes during the year compared to 25.62 lakh tonnes in the previous fiscal year.

In the first three months of the current fiscal year, rice and wheat import rose by 170 percent to 8.62 lakh tonnes as against 3.06lakh tonnes during the corresponding period of the previous fiscal year. But this seemed to have no positive impact in local market.

Central bank sources say prices of essentials will not go down within a short time as petroleum prices continued to surge in the global market.

The price stood at over $98 per barrel yesterday.

Government high-ups also fear prices of essentials may not fall in near future.

Inflation rate continuously increased till August but in September inflation rate on point-to-point basis declined both in case of food and non-food items, and both in rural and urban areas.

Inflation rate on food items reached 11.10 percent in September measured on a point-to-point basis, the BBS figures show. It was 0.52 percentage point lower than the figure of August, which stood at 11.62 percent.

Inflation rate on non-food items decreased by 0.64 percentage point in September and the figure was 7.35 percent.

In rural areas, the overall inflation rate decreased by 0.47 percentage point and reached 9.6 percent. On the other hand, the rate in urban areas decreased by 0.67 percentage point and reached 9.57.

Source:http://www.thedailystar.net/story.php?nid=10739

Forex reserves hit $5.45b on robust remittance

The country's foreign exchange reserves stood at around $5.45billion on Thursday on robust remittance inflow in the first four months of the current fiscal year despite drops in export earning.

According to the central bank statistics, during the July-October period remittance inflow saw a 28.38 percent growth compared to the corresponding period of the last fiscal year.

Bangladesh Bank statistics shows the country received around $2.2 billion remittances during the period against $1.8 billion in the corresponding period of last year.

Export earning in August was $1.13 billion compared to $1.16 billion a year earlier, according to the Export Promotion Bureau (EPB) statistics.

Exports fell by 2.32 percent in August on a year earlier and were more than 13 percent below the government's target.

In July, the exports were down 21.08 percent on the same period in 2006. In total for the first two months of the fiscal year 2007-2008 exports were down 11.69 percent on a year earlier and 23 percent behind target.

The strong remittance growth also helps strengthen taka against dollar in the local market

US dollar devalued by Tk 0.10 during June-September period. US dollar sold at Tk68.80 in June of the last fiscal year while it sold at Tk68.70 in September of the current fiscal year.

Non-resident Bangladeshis (NRBs) in 2006-07 sent $ 5984 million compared to $ 4802 million in 2005-06, recording a 24.61 percent growth.

Bankers said the government's recent measures against 'hundi', an illegal way of money transfer, encouraged the Bangladeshi wage earners to send money home through legal channels.

According to Bangladesh Economic Review 2007, the government took several initiatives to increase the remittance apart from creating opportunities for employment abroad.

The measures include extension of drawing system of Bangladeshi banks with more foreign exchange houses to increase remittance inflow through banking channels.

The private commercial banks have also taken initiatives to increase their earnings from remittance services.

The Bangladesh Economic Review said overseas employment and money sent by the NRBs are contributing to the country's economic development.

A total of 2.5 lakh Bangladeshis went abroad in 2004-05, which was 9.75 percent lower compared to the previous year. But in 2005-06, the number stood at 2.91 lakh, which was 16.4 percent higher than the previous fiscal year's, the review said.

It said in the first ten months of the 2006-07 fiscal, the number of manpower export stood at 4.21 lakh, showing 83.14 percent rise.

Bangladesh exported around 47.51 lakh people across the globe from 1976 to April 2007, according to the review.

http://www.thedailystar.net/story.php?nid=10990

Bangladesh 07/08 growth expected at 6 pct

The Bangladesh economy is expected to grow 6 percent in the 2007/2008 fiscal year, slowing from 6.5 percent in the last fiscal year, the governor of the country's central bank said on Friday.

Salehuddin Ahmed also told reporters on the sidelines of a seminar in Bali that there were no plans to raise domestic oil prices to reduce pressures on the national budget from subsidies and the country may have to consider issuing sovereign bonds.

http://in.reuters.com/article/businessNews/idINIndia-30415420071109

Its amazing how our remittance inflow keeps Rising Rising and Rising all the time.Anybody know the position of Bangladesh among countries receiving highest inflows of remittance?

For sure it's in the Top 10

July-Nov remittance flow records 21.69pc growth

Remittances by the Bangladeshi expatriates stood at $2.806 billion in the first five months of the current fiscal, marking a 21.69 per cent growth over that of the same period of the last fiscal, official sources said.

The remittance earnings in the period came as a continuation to last fiscal's trend and a record inflow of $5.98 billion. The growth in 2006-07 was 24.52 per cent over the previous fiscal.

The country received $2.806 billion during the July-November period of the fiscal 2007-08 against $2.306 billion in the same period of the previous fiscal, according to the Bangladesh Bank (BB) statistics, released Wednesday.

The remittances from Bangladeshi nationals working abroad were estimated at a record $618.60 million in November last, which was $58.55 million higher than that of the previous month.

Last October, the total amount of money remitted by Bangladeshi wage earners amounted to $559.05 million, the BB's data showed.

The country's foreign exchange reserve stood at $5.18 billion Wednesday due mainly to robust growth of remittances from Bangladeshis working abroad, sources in the central bank said.

"The flow of inward remittances increased in the month of November due to the upcoming Eid-ul-Azha festival," a BB senior official told the FE.

He also said the flow of remittances may fall slightly in the post-Eid period.

The central bank earlier asked the commercial banks for taking measures to boost the flow of inward remittances in line with the new guidelines on drawing arrangements with overseas exchange houses.

It introduced recently the guidelines on drawing arrangements with a rise in their security deposits to avoid any financial risks.

Earlier, the central bank took a series of measures to encourage the expatriate Bangladeshis to send their hard earned money through the formal banking channel instead of the illegal "hundi" system and boost the country's foreign exchange reserves.

Besides, the BB has also directed the commercial banks to expedite delivery of remittances to the beneficiaries at the quickest possible time to encourage expatriates to use the banking channel for overseas fund transfers.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=19314

http://i269.photobucket.com/albums/jj50/amar11372/SP321.jpg

Looks like USA and UK are catching up to K.S.A and there has been dramatic increase in remittance inflow from 98-07 (a 250% INCREASE). But does any one know why the remittance inflow from Malaysia is dwindling? (especially compared with Singapore) I thought there are Bangladeshis in the hundred thousands if not a million in Malaysia.

http://www.ifad.org/events/remittances/images/asia.jpg

A graph showing remittance inflow for various Asian countries.

Thanks for the info Amar.I had been looking for these figures for sometime.

your welcome mirzazeehan!!!

Revenue grows 22.53pc in five months

On the back of good responses from individual taxpayers, the National Board of Revenue (NBR) achieved a 22.53 percent revenue growth in the first five months of the current fiscal year.

The NBR received Tk 739.11 crore from 6,45,617 individual taxpayers in the tax year of 2007-08 against Tk 252.11 crore a year ago, contributing to the overall revenue growth.

NBR Member (Income Tax Policy) Ali Ahmed said the hefty growth in income tax collection has been possible as a good number of people submitted income tax returns this year.

Taxpayers especially businesspersons have paid more income tax than before due to the changing political scenario, Ahmed added.

The caretaker government led by Dr Fakhruddin Ahmed started anti-crime drive in January this year and arrested many high-profile politicians, businesspeople and bureaucrats. The NBR also filed cases against a good number of people on charges of tax evasion, prompting the rise in number of individual tax returns this year.

The NBR collected Tk 15,820.33 crore revenue in five months against Tk 12,911.92 crore in the same period a year ago.

The income tax department posted the highest 44.66 percent growth as it collected Tk 3,212.15 crore in July-November period against Tk 2,220.44 crore in the same months of 2006-07 fiscal year.

With a moderate 10.88 percent growth the customs department collected Tk 3,497.86 crore against Tk 3,138.77 crore.

At import stage, the NBR collected Tk 2,898.37 crore in value added tax, up by Tk 544.77 crore. The growth in the head is over 23 percent.

The NBR collected Tk 703.18 crore in supplementary duty in import stage. Moreover, Tk 5,343 crore has been collected in value added tax, supplementary duty and excise at local production level.

The overall revenue target for the current, 2007-08, fiscal year was set at Tk 43,850 crore. Out of the target, Tk 17,812 crore was set for customs duty, Tk 10,838 for income tax and Tk 14,800 crore for value added tax and supplementary duty.

http://www.thedailystar.net/story.php?nid=15517

Thanks for the info Amar.I had been looking for these figures for sometime.

ya Amar, thanks for the info.

keep it up bangladesh,congrats for economics achives for your country...,i have visit dhaka one time .it should devolop more.i guess coz their are many devolop cities more far more than dhaka and chittagon in south asia such as colombo mumbai...........,bangladesh going well i like to see tht lovely country coming sky hight

bangladesh cricket also like very good i like that match in wc they beat india ,very nice match

A couple of days (maybe weeks) ago I think Tmac posted a news about the BD govt initiating a process to get a sovereign rating to Bangladesh, Which it allow the BD govt to float international Bonds to finance development work. I found out there was a event hosted in my college (New York University) that invited couple of investment banks for prediction of the sovereign rating of the LCD countries. For those of you who are interested you can check out the following.

http://i269.photobucket.com/albums/jj50/amar11372/BECON.jpg

and for a comparison of countries that already received rating from S&P before.

http://i269.photobucket.com/albums/jj50/amar11372/SP32-20071216-202815.jpg

Summary: If BD gets a rating of B it will be very similar to other south asian countries; and after some time we will be able to boost our rating for very competitive international finance.

The following is from the economist intelligent unit if you guys have any interest please take a look.


Economic Forecast
http://i269.photobucket.com/albums/jj50/amar11372/SP32-20071222-010354.jpg

GDP Forecast

http://i269.photobucket.com/albums/jj50/amar11372/SP32-20071222-010647.jpg

If you guy want these types of data in the future then I will be posting other institutional research and data about Bangladesh frequently.

Thanks for all the data.It would be great to have you supplying us with all such info.

http://www.ifad.org/events/remittances/images/asia.jpg

A graph showing remittance inflow for various Asian countries.

Wow I did'nt thought that my country is the third highest in Asia.

Wow I did'nt thought that my country is the third highest in Asia.

well the Philippino diaspora is huge especially here in the USA, I guess they are sending lots of money back to the Philippines.

Thanks for all the data.It would be great to have you supplying us with all such info.

Yours welcome mirzazeehan. I will post updates here in the forum when new data about Bangladesh's economy comes out so stay tune!!!

Wow I did'nt thought that my country is the third highest in Asia.
still a lot of money(say around 30%) comes trough hundi

if the govt can achieve around 90% and can send more people abroad it will double with in the next 2-3 years

Another turnaround year awaits taka

Sajjadur Rahman
bdnews24.com Senior Business Correspondent

Dhaka, Dec 31 (bdnews24.com) -- The taka appreciated by 0.7 percent in 2007, breaking free of depreciation against the dollar in the past few years. The taka depreciated by 2.76 percent in 2004 against the dollar, and amassive 9.0 percent in 2005. The pace of deprecation slowed to 4.4 percent in 2006.

"The year 2007 was a turnaround for the taka," Citibank NA in its annual (2007) market analysis said. Despite a downward move in the first quarter, Bangladesh saw the taka's value increase by 0.7 percent against the greenback. "Thanks to increased remittance inflows, reasonably strong growth in exports and reduced service payment demand, the taka strengthened," Mamun Rashid, managing director and country officer of Citibank NA told bdnews24.com Sunday.

Though exports slowed in the second half of 2007, foreign exchange remittances saw a 24.5 percent growth in fiscal 2006-07 ending June 30 2007. In the first five months to November of fiscal 2007-2008, remittance growth was 21.7 percent, according to Bangladesh Bank.

The country has also seen a major growth in foreign exchange reserves in 2007.As per the latest report, forex reserves increased to $5.16 billion from last year's $3.88 billion, an increase of 33 percent in national reserves. Inter-bank transactions of USD and BDT were also stable in 2007 compared to the previous three years.

In 2006, the dollar traded within a 6.75 taka range (66.20 – 72.95). A similar scenario was observed in 2005 (61.50 – 67.0) and 2004 (59.01 – 62.50). This year only a 1.92 taka difference between the yearly high (70.40) and low (68.48) in USD/BDT rates was seen, a thin range compared to previous years. A significant trend in 2007 was a shift of volume from third currency-based cross-currency transactions to USD/BDT inter-bank transactions.

"We need to encourage the trend of taka appreciation against the dollar in 2008," economist Dr Atiur Rahman told bdnews24.com. But he said the situation was different in 2007 with Bangladesh's other major importing countries, including India and Thailand. "The taka has weakened against the rupee of India from where we import almost a fifth of our total imports," Rahman said. "The taka weakened against the Thai baht also."

Last year, most of the inter-bank transactions were routed through third currency trades. But as the USD/BDT exchange rates became relatively stable, market participants increased their trades to more the simple USD/BDT channel.

The inter-bank call money market largely ran a surplus most of the time due to a slowdown of credit growth in 2007. "The government sector contributed most to the slowdown of credit growth. Banks and financial institutions with excess funds were seen to invest their funds in the Reverse Repo window of Bangladesh Bank," the Citibank analysis revealed.

Reverse Repo rates of Bangladesh Bank remained at 6.50 percent throughout the year. As the market was mostly liquid most of the time, call rates traded around the benchmark Reverse Repo rate. However, call rates were seen moving upward a couple of times in 2007. Due to pre-Eid-ul-Fitr cash withdrawals, call rates went up to 8.50 percent in October. However, within a week after Eid holidays call rates came back to 6.5 percent.

Again in December, the market experienced tightness in liquidity due to pre-Eid-ul-Azha cash withdrawals. However, this time call rates traded as high as 17 percent. The market had to wait 19 months to see call rates trading in double digit numbers.

The USD/BDT swap market was also soft in 2007 due to stable interest rates all through the year. Most of the market participants were seen investing and generating funds through the conventional overnight and term-market conduit.

The Government Treasury Bill yield curve flattened in 2007, as long-term yields came down and short-term yields rose throughout the year. Bangladesh Bank introduced longer term bonds (15 years and 20 years) from July 2007.

Introductory yields of the longer term bonds were 13.97 percent and 15.95 percent for 15 years and 20 years respectively. However, Bangladesh Bank in its monetary policy statement in July 2007 indicated a flattening of the yield curve (a gradual rise in short term rates and drop in long term rates). In the following few months, Treasury Bill yields adjusted accordingly.

Rates of long term bonds went down. 20 years, 15 years, 10 years and 5 years bond yields dropped by 246, 108, 80 and 25 basis points respectively.

http://www.bdnews24.com/details.php?cid=4&id=34215

Tk 600cr earned by issuing passport, visa

The government earned Tk 600 crore last year providing passport and visa services- nearly doubled than that of the previous year driven by some pragmatic steps taken by the present caretaker government.

The amount of such income in the previous year was recorded at Tk 451 crore, officials of the ministry of home said on Wednesday.

New easy visa policy and increased overseas demand for Bangladeshi workers have contributed to this impressive growth of income, officials said noting that the department concerned issued 14 lakh passports and two lakh visas last year.

The government has eased visa policy to encourage foreigners to visit Bangladesh. Under new visa policy, registration system has been waived for citizens of all countries except South Korea, India and Pakistan. As part of the government steps, the immigration and passport directorate has started a One Stop Service center at its Agargaon passport office since August 29,2007 to provide quick and quality services.

Now one can get a passport quickly and easily, officials said adding more such one-stop services will be opened in all regional passport offices in the country soon.

Currently passports are now being issued from 15 regional passport offices and deputy commissioners’ offices in 17 districts.

http://www.newagebd.com/busi.html

Bangladesh's Remittance Flow Records 20.49 Percent Growth

The flow of inward remittances crossed US$3.0 billion in the first half of the current fiscal, marking a 20.49 per cent growth over the same period of the last fiscal, officials say in the capital, Dhaka on Thursday.

The country received $3.447 billion during the July-December period of fiscal 2007-08 against $2.861 billion in the corresponding period of the previous fiscal, according to the provisional estimates of the Bangladesh Bank (BB), the country's central bank, released on Thursday.

The country's foreign exchange reserve stood at $5.490 billion on the day due to robust growth of remittances from Bangladeshis working abroad, sources in the central bank said.

The remittances from Bangladeshi nationals working abroad were estimated at $642.15 million in December 2007, a new record inflow in the history of Bangladesh that was also $24.71 million higher than the previous month.

November 2007, the total amount of money remitted by Bangladeshi wage earners amounted to $617.39 million, the BB's data showed.

"The flow of inward remittances increased in the month of December due to the Eid-ul-Azha festival," a BB senior official told AHN in Dhaka, adding that the flow of remittances may fall slightly in the current month.

Some private commercial banks (PCBs) along with the state-owned commercial banks (SCBs) are desperately trying to increase the flow of inward remittances from different parts of the world including Middle East, United Kingdom, Malaysia and Singapore to meet their growing foreign exchange demands.

"We are continuously trying to increase the flow of remittances to meet our internal foreign currencies demand," a senior official of a PCB told AHN in the capital.

The central bank of Bangladesh earlier took a series of measures to encourage the expatriate Bangladeshis to send their hard earned money through the formal banking channel instead of the illegal "hundi" system and boost the country's foreign exchange reserves.

Besides, the BB has also directed the commercial banks to expedite delivery of remittances to the beneficiaries at the quickest possible time to encourage expatriates to use the banking channel for overseas fund transfers.

http://www.allheadlinenews.com/articles/7009604208

Record $6.56b remittance in '07

Bangladeshis working abroad, a key source of economic stability for the impoverished South Asian country, sent home a record 6.56 billion dollars in 2007, officials said Sunday.

The remittances totalled 1.1 billion dollars more than the five million workers sent home in 2006, said the executive director of the country's central bank, Yasin Ali.

"It's a tremendous achievement and it is mainly due to a record number of people going abroad with jobs last year and increased inflows through formal banking channels," he said.

The record remittances also pushed up Bangladesh's foreign exchange reserves to 5.5 billion dollars, the highest since the country gained independence in 1971.

The country's overseas employment ministry said nearly 600,000 people went abroad to work last year, nearly doubling from a year ago, mainly in oil-rich Gulf countries and Southeast Asia, ministry director Salim Reza said.

Another 230,000 people received work permits and immigration clearance and were now waiting to take jobs in the Gulf, Malaysia and Singapore, he added.

http://www.thedailystar.net/story.php?nid=18182

Wow!6.5 billion remittance per year is excellent news!If we can keep increasing it at this rate,then it will almost touch 10 billion in 3 years.

Only because of the burgeoning remittance helped the govt attend positive balance of payment. Since a record amount of people went abroad for work last year, I am curious to see what the remittance will be year end.

Feni, Munshiganj to have new EPZs

The government has finalised the site selection for setting up two new export processing zones (EPZs) in Munshiganj and Feni to cater to the growing demand of foreign investors seeking investment in the industrial parks.

The proposed Meghna EPZ and Feni EPZ, each on 500 acres of land, will be built through public-private partnership, with the initial investment for land acquisition coming from the BEPZA's own funding.

"We've finally selected the sites for the new EPZs and the initial costs, especially for land acquisition, will be met from the internal resources," BEPZA (Bangladesh Export Processing Zones Authority) executive chairman Yussuf Abdullah Ashraf said in an interview.

However, the BEPZA chief noted that the private sector would be encouraged to invest in other infrastructure such as electricity and water supply, central effluent treatment plants and roads in the new EPZs.

Ashraf estimated the requirement of around Tk 4.0 billion in initial investment for the purpose of acquiring lands alone.

Officials described the BEPZA's plan to invite private entrepreneurs for infrastructure development as "a gradual shift" toward public-private partnership.

They also acknowledged that the Chief Adviser's refusal to subsidise the construction of new zones prompted the BEPZA to look for alternative financing sources.

BEPZA officials said textiles, electronics, leather industries and high-valued apparel industries will get preference in the proposed zones.

The BEPZa chief said foreign investors from China, Taiwan, Malaysia, Japan, the North America and European Union are interested to set up industrial units in EPZs.

Currently, a total of eight state-financed and managed EPZs are operating in the country and the majority of investors are involved in ready-made garments manufacturing.

Officials said that the EPZs would no more operate in the way now they do, with the zone regulator considering scaling down the incentive package designed for investors.

According to official figures, EPZs drew a record US$130 million in the first six months of the financial year, clocking an astonishing 135 per cent growth over the corresponding period of the last fiscal. The investment figure was $120 million in the last fiscal year.

Over the years, Bangladesh's export-oriented industrial parks have emerged as magnets for foreign investors, who are capaitalising on lower labour wages and a slew of fiscal and non-fiscal incentives.

Tax holiday for 10 years, duty-free import and export, relief from double taxation, and trade preferences and duty and quota-free access to the European Union and some industrialised nations are among the fiscal incentives.

The non-fiscal facilities include investment protection, permission of 100 per cent foreign ownership, no ceiling on foreign investment, and full repatriation of capital and dividend.

However, it was not immediately clear what incentives the authorities will abolish.

According to official figures, the publicly-managed EPZs netted nearly $1.1 billion in investment between 1983 and 2005, accounting for nearly 20 per cent of annual exports, and 25 per cent of the country's total foreign direct investment.

But the WB in a report, focussing on economic zone reforms, suggested that the spillover effects of EPZs on the economy would have been "much higher" had Bangladesh modernised its economic zone regime.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=22301

5. 4million ( 5.4 lak ) Bangladeshis now working abroad
"2,52,702 workers were sent abroad in 2005, 3, 81, 516 in 2006 and 8, 32, 609 in 2007 while 37, 417 workers in first 10 days of 2008
Monday January 14 2008 12:30:13 PM BDT


As many as 54 lac Bangladeshis are now working in more than 100 foreign countries, but a large number of them are facing serious difficulties as they have been sent abroad by illegal manpower agencies.(Bangladesh Today)

"The demand for Bangladeshi workers abroad is on the rise. But many workers are passing inhuman life or languishing in different jails abroad due to illegal manpower agencies in Bangladesh. The Bangladeshi workers are being recruited through 769 government approved agencies. The government will launch a massive crackdown against them", a highly-placed source in the Manpower Employment and Training Bureau told The Bangladesh Today.

Showing statistics of several years, he said, "2,52,702 workers were sent abroad in 2005, 3, 81, 516 in 2006 and 8, 32, 609 in 2007 while 37, 417 workers in first 10 days of 2008. It shows the demand for Bangladeshi workers is increasing day by day. Earlier, manpower export was confined to the middle-east countries. But now workers are going to all countries. For example, from February/ March, workers will be sent to Canada."

Sources said the taskforce is going to launch a massive crackdown on the illegal manpower agencies after identifying them and the taskforce will also submit a report recommending steps to strengthen the manpower export sector. The government itself cannot export manpower and it has to rely on the manpower agencies as much lobbing is needed to create job opportunities in different companies abroad.

Yet the government has cancelled licence and security money of some agencies and later the money was paid to the workers who were cheated and exploited by those agencies. Around TK 1 crore has been realised from an agency 'Golden Arrow' only to make payment to the exploited workers.

Source:http://www.bangladesh-web.com/view.php?hidRecord=183636

5. 4million ( 5.4 lak ) Bangladeshis now working abroad
"2,52,702 workers were sent abroad in 2005, 3, 81, 516 in 2006 and 8, 32, 609 in 2007 while 37, 417 workers in first 10 days of 2008
Monday January 14 2008 12:30:13 PM BDT


As many as 54 lac Bangladeshis are now working in more than 100 foreign countries, but a large number of them are facing serious difficulties as they have been sent abroad by illegal manpower agencies.(Bangladesh Today)

"The demand for Bangladeshi workers abroad is on the rise. But many workers are passing inhuman life or languishing in different jails abroad due to illegal manpower agencies in Bangladesh. The Bangladeshi workers are being recruited through 769 government approved agencies. The government will launch a massive crackdown against them", a highly-placed source in the Manpower Employment and Training Bureau told The Bangladesh Today.

Showing statistics of several years, he said, "2,52,702 workers were sent abroad in 2005, 3, 81, 516 in 2006 and 8, 32, 609 in 2007 while 37, 417 workers in first 10 days of 2008. It shows the demand for Bangladeshi workers is increasing day by day. Earlier, manpower export was confined to the middle-east countries. But now workers are going to all countries. For example, from February/ March, workers will be sent to Canada."

Sources said the taskforce is going to launch a massive crackdown on the illegal manpower agencies after identifying them and the taskforce will also submit a report recommending steps to strengthen the manpower export sector. The government itself cannot export manpower and it has to rely on the manpower agencies as much lobbing is needed to create job opportunities in different companies abroad.

Yet the government has cancelled licence and security money of some agencies and later the money was paid to the workers who were cheated and exploited by those agencies. Around TK 1 crore has been realised from an agency 'Golden Arrow' only to make payment to the exploited workers.

Source:http://www.bangladesh-web.com/view.php?hidRecord=183636

We really need the remittance from these workers. The govt's budget is under constrain since our import is growing almost exponentially and the export is slowing down. BTW, thanks for the article mirzazeehan.

Asian Tiger Capital Partners The First private equity and venture capital in Bangladesh.

Statement from Asian Tiger Capital Partners:

JP Morgan produced a report in April 2007 (‘From Ho Chi Minh Trail to Mexico’) where they included Bangladesh in their ‘Frontier Five’ along with Vietnam, Kazakhstan and Kenya. The Frontier Five was selected on the relative attractiveness of these markets based on macro-economic and demographic trends.

'It is the demographics of Bangladesh that justifies its inclusion in the JPMorgan Frontier Five. The country ranks fourth in growth in economically active population. Five-year economic growth is strong at 6.1% (CAGR). Progress has been made over the last few years to reduce poverty, increasing literacy levels and moderating population growth to a more sustainable level. An assertive judiciary, active civil society and a relatively free media have increased public accountability’

Goldman Sachs included Bangladesh in its ‘Next 11’ after the BRIC nations (Brazil, Russia, India and China), which identified countries that may have the potential one day to emulate the BRIC nations who are forecast to rival developed economies. Goldman Sachs evaluated the countries on the basis of macroeconomic stability, political maturity, education, openness of trade and investment regulation.

Bangladesh has focused reforms ensuring improvements for foreign investment, allowing 100% foreign ownership of companies with no exit restrictions and full repatriation of capital. The World Bank has ranked Bangladesh as 17 for ‘Investor Protection’ ranking above India (29) and Vietnam (143). Foreign entrants to the market include global multinationals such as Mobil, BP, Proctor & Gamble and Lafarge.

There is a video about Bangladesh being in the ‘Frontier Five’. I will post that later.

Govt plans to set up 4 economic zones

The government has decided to set up four economic zones (EZs) in the country aiming to attract more investment from home and abroad, and foster economic growth, sources said.

The World Bank recently suggested the government to establish the EZs to encourage domestic and foreign investment here.

Under the plan the Comilla export processing zone (EPZ) and the Hi-Tech park for information technology in Kaliakor under Gazipur district will be turned into economic zones for promoting more investment, official sources said.

As per the decision one EZ will be set up for readymade garment (RMG) factories and the other for producers of active pharmaceutical ingredients (API).

The sources said the RMG industrial park and API park might be set up at Gazaria area under Manikganj district.

Sources in different government agencies said they had already started work on establishment of the EZs for encouraging domestic and foreign investments.

"We have already completed social impact assessment survey in order to expand the Comilla EPZ as EZ. Besides, an environmental impact assessment (EIA) will be carried out soon there," the Executive Chairman of Bangladesh Export Processing Zones Authority (BEPZA) Ashraf Abdullah Yussuf told the FE.

He said: "We have sent a development project proposal (DPP) to the Planning Commission (PC) on the expansion of the Comilla EPZ project. On completion of the EIA survey and getting nod from the commission we will start the expansion work."

Following the success story of the EPZs in Bangladesh, the World Bank had asked the government to develop the Comilla EPZ into EZ so that it could be replicated in other parts of the country, the chief of the BEPZA said.

Yussuf said his organisation is expanding the Comilla EPZ so that more entrepreneurs can install more industrial units there.

Last month, a World Bank mission after discussion with the government agencies suggested development of the Comilla EPZ as an EZ after expansion of its present area and development of adequate facilities for the investors.

The Bank will extend financial support to the government under the "Private Sector Development Support Project (PSDSP)" for building the EZs.

Official sources said the Board of Investment (BoI) is working as a coordinating agency while the BEPZA, Bangladesh Small and Cottage Industries Corporation (BSCIC) and Ministry of Science & Information and Communication Technology are involved in setting up the EZs.

According to sources in the BSCIC, it has sent two project proposals to the PC for setting up the RMG industrial units and API park at Gazaria.

Under the project, the RMG units from Dhaka will be relocated at the new EZ in Gazaria and producers of API will set up industries to produce pharmaceutical raw materials and products, the sources said.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=23023

State of Bangladesh economy in FY2007-08 (I)
A review of first six months by Centre for Policy Dialogue

http://www.thedailystar.net/photos/2008-01-19__bus05.jpg

First six months of FY2007-08 (henceforth FY08) have passed. During this period, the economy faced two successive floods in August and September, devastating cyclone Sidr in November and increased prices of essential commodities. These have raised concerns as to whether the macroeconomic targets set for FY08 could be achieved. The present review assesses the performance of major macroeconomic indicators. The review analyses the performance of the public finance and monetary sector, and the real sector.

Public Finance and Monetary Sector
Revenue Earnings and Expenditure: During July-November of FY08, revenue earnings by NBR had 22.4 percent growth while collection of income tax registered 44.0 percent growth. Introduction of the universal self-assessment system has played a positive role in this context. Revenue expenditure (July-August of FY08) had higher growth (30.7 per cent) than the targeted growth (15.6 percent). So, mobilising additional revenue will be a key challenge.

Annual Development Programme (ADP): During July-October of FY08, ADP expenditure (Tk 3,042 crore) was 11 percent of the annual target. In view of the consecutive floods and the cyclone, a review and restructuring of the ADP would be required, and funds need to be diverted towards rehabilitation efforts.

Budget Deficit: Planned budget deficit in FY08 is very high (5.6 percent of the GDP, against 3.7 percent of FY07). Government borrowing from domestic sources increased significantly by 33.3 percent, mostly from the banking sources. Government borrowing is expected to surpass the target because of high government expenditure for post-Sidr rehabilitation. Notably, commendable success was achieved in mobilising foreign resources. Net foreign financing amounted to Tk 1,642.74 crore during July-October of FY08, against Tk 163.51 crore during the same period of FY07.

Monetary sector: At the end of October 2007, money supply (in terms of M3) posted 13.23 percent growth. Reserve money registered a marginal rise of 5.68 percent and excess liquidity of the scheduled banks was almost steady. Total outstanding domestic credit to the private sector posted a moderate growth (16.84 percent) on a point-to-point basis. Disbursement of term loans targeting industrial sector registered a positive growth during July-September 2007. Taka appreciated by 1.85 percent against US dollar in November 2007, though it rapidly depreciated against Euro and Indian Rupee.

Real Sector

Agriculture: Foodgrain production in FY08 is likely to be 1.2 to 2.0 million metric tons (4.4 percent to 7.4 percent) lower than actual production of FY07. It is mainly due to the damage by flood and Sidr and partly due to lack of fertilizer availability. Estimated loss of livestock sector, affected by Sidr is about Tk 132.26 crore. Coastal fisheries, particularly the shrimp farms, were severely affected.

In view of large scale agricultural rehabilitation in flood and Sidr affected areas, the government disbursed substantial amount of credit. During July-November of FY08, total credit disbursement stood at Tk 1,869.3 crore (6.6 percent higher than comparable months of FY07). The government needs to focus on mobilizing more funds for agricultural credit, particularly for the upcoming boro season.

Price Level and Inflation: Low levels of production in the domestic market, rising prices in the international markets and supply disruption were the major instigating forces behind high inflationary trend. Import of foodgrains has failed to meet the gap in view of the requirement and the production loss caused by flood and Sidr, even though it was notably higher in FY08 (726,000 mt) than that of last year (143,000 mt). Increased price at the international level, and export restriction imposed by some countries limited imports by Bangladesh.

Industry: Industrial sector was not able to overcome the decline in growth rates during the first half of FY08 because of negative production growth in jute, cotton, RMG and leather sectors. Government's decisions of shutting down 4 state-owned jute mills and retrenchment of 14,000 workers along with other measures in view of restructuring the jute sector have raised lot of concerns.

During the first quarter of 2008, import of capital goods and others have increased by 14 percent, but total amount of LCs for import of machineries declined in following months. Import of industrial raw materials and machinery for miscellaneous industries had registered positive growth during July-October 2007. This perhaps indicates that business activities picked up in terms of current production but entrepreneurs were reluctant to make new investment.

Foreign Investment: Total foreign investment posted a rise by 11.1 percent during July-October 2007, but FDI experienced a fall of -4.0 percent. Portfolio investment experienced a substantial rise. A sharp decline in investment registration indicates that foreign investors have been losing interest to consider Bangladesh as a possible destination. In order to establish confidence of foreign investors, the government should come up with decisions regarding the pending major investment proposals, and also look into the constraints both in terms of infrastructure and regulatory mechanisms that inhibit FDI. The proposed coal policy, if approved without delay, could develop this potentially important source of energy.

Capital Market: DSE's all price index recorded an increase by 749.22 points (41.1 percent) during July-December 2007. Market capitalisation rose to 742.2 billion on 30 December 2007 (compared to 315.4 billion on 30 December 2006) taking the market capitalisation to GDP ratio to 15.9 percent. Entrance of the Grameen Phone in the stock market would encourage other large-scale companies, especially foreign owned companies, to off-load their shares in the stock market.

External Sector: Aggregate export declined in July-August 2007 (-12.1 percent), mainly due to the fall of RMG exports. In view of the set export targets for woven (19.1 percent) and knit (20.0 percent) products for FY08, export of these two sectors will need to increase by 28.9 percent and 31.2 percent respectively, during the rest of the year. This will be a difficult task with the sanctions on China being phased out as of 01 January 2008.

A large part of increasing import in recent months is accounted for by the rise in international market prices, and less to rise in volume. Total imports during the July-October period of FY08 posted a growth rate of 20.0 percent. In monetary terms, high growths were observed for the import of rice (596.8 percent), wheat (88.4 percent) and fertiliser (106.7 percent).

During July-November of FY08, remittance sent by migrant workers was US$ 2,806.4 million (21.7 percent higher than comparable months of FY07). While the high flow of workers' remittances is expected to continue in the coming months, anticipated higher import payments combined with falling exports might create further pressure on the BoP position in the near future.

Given the challenges lying ahead, the next six months of FY08 will be critical for Bangladesh in terms of achieving sectoral targets as well as maintaining macroeconomic balances. The performance of the economy will also be important for implementing the election plus agenda of the government.

http://www.thedailystar.net/story.php?nid=19860

Forex reserve strong enough to weather exchange rate pressure: BB

Increasing trend in import would not create any pressure on exchange rate as the country has a comfortable foreign currency reserve, boosted mainly by robust growth in remittance inflow and regular export earnings, said central bank officials.

The country imported goods worth over $16.77 billion, while it received over $6.5 billion from non-resident Bangladeshis in 2007 and over $10 billion in export earnings in the January-October period of 2007, according to Bangladesh Bank statistics.

The forex reserve stood at over $5 billion last week.

Bangladesh Bank in the October-December period of 2007 sold over $185 million to banks to help them make rising import payments, especially of food bills, said a central bank official.

The greenback lost 0.2 per cent of its value against local currency in 2007, trading Tk 68.58 on January 17 this year, down from Tk 69.69 in January 2007.

Taka-dollar exchange rates faced some pressures in the July-September period of 2006 with average rate ranging between Tk 69.45 and Tk 69.85, according to the Annual Report 2006-07 of the central bank.

Taka started recovering and gradually regaining its value from January last year on the back of increased remittance inflow than fattened foreign currency holdings of the banking system.

The effective exchange rate in November 2007 was Tk 62.32 while nominal rate was Tk 68.62 per dollar, which means that the central bank could have appreciated taka against dollar, said the central banker.

In July-December period, about $280 million was spent to import about one million tonnes of rice. Rice prices have soared since then in the global market and the central bank has enough reserve on hand to meet the foreign currency need of any amounts for procuring food grains and other essentials, he said.

The country suffered a current account deficit of $229 million in July-October period, when increasing imports widened trade deficit to $1.7 billion. It was mainly the impressive growth in workers’ remittance that brought turnaround for the current account, the official pointed out.

‘The overall scenario changed for the better remittance flows kept increasing and exports saw some steady rise,’ he said.

In its Monetary Policy for the January-June period for the current fiscal, the central bank said appreciation of taka eased inflationary pressure a bit.

Recognising the multi-dimensional nature of current inflation, the policy statement for the second half of the fiscal year stressed the need for adjusting monetary stance to the ‘best possible real-time judgement.’

http://www.newagebd.com/nat.html

Remittances could exceed $7b in 2008 in Bangladesh
Says Western Union senior official
Refayet Ullah Mirdha




Remittances could exceed US$7.0 billion in 2008, according to Anil Kapur, Western Union (WU) Managing Director for South Asia, as the number of Bangladeshis working abroad increases.
Speaking to The Daily Star on a recent visit to Dhaka, Kapur said another reason for the increase was the move to send money through official channels rather than via 'hundi', unofficial networks for transferring cash.

According to official statistics, the country received nearly $6.0 billion as remittance from non-resident Bangladeshis (NRBs) last year and the contribution of such remittance to the gross domestic product (GDP) crossed 13 percent.
But, Anil declined to say the exact figure that his company transacted as remittance for Bangladesh last year. He only said that WU's share in the global money transfer business is over 17 percent.

Kapur was in Dhaka to sign an agreement with the Postal Department of Bangladesh enabling WU customers to receive money at local post offices.

He said the major competitors of WU in Bangladesh are private and public commercial banks. “I hope we will win in the competition when our postal services come into full operations,” he said.

“As per the deal, we will launch our services through 450 post stations in Bangladesh in the first phase and the number of such postal WU money receiving points will be raised gradually,” he said.

He said Bangladesh is among the top 15 countries in the world in receiving remittance and if the current trend continues the country could soon be among the top 10. China is the number one recipient.

WU has been working in Bangladesh since 1993 with only 100-point locations and at present the number of point location is more than 1400 across the country.

Kapur said at present 30 percent of remittances come from Saudi Arabia, 15 percent from the USA and more than 10 percent from the UK.

About the agreement with the postal department Kapur said Bangladesh will receive 25 percent as royalty from the commission that is received by WU in Bangladesh.

He said train up the people of postal department is not difficult, as both WU and postal department have agreed to carry out the job in partnership basis.

He said WU maintains strong compliances and in the last year the company spent $ 35 million for compliance worldwide.

“So, there is no chance of losing of money from the post offices,” he said.

He said if the WU starts functioning with full capacity the government will also be beneficiary as the people will send their hard earned foreign through a formal channel.

Now, some NRBs send their currency send money through informal channels like hundi, for which the government losses huge revenue.

Source:http://www.thedailystar.net/story.php?nid=21918

Credit Growth To Private Sector Up By Nearly 2.0 Percentage Points In Bangladesh

Bangladesh is seeing a growth in credit. Credit growth in the private sector rose by nearly 2.0 percentage points to 7.66 percent during the first five months of the current fiscal year compared to that of the same period of the previous fiscal year, officials say in the capital, Dhaka.

Credit to the private sector rose by 7.66 per cent to $1.68 billion (BDT115.51 billion) in July-November period of fiscal 2007-08 from 5.88 per cent to $1.12 billion (BDT 77.00 billion) of the same period of the previous fiscal, according to the Bangladesh Bank (BB), the country's central bank statistics.

"The credit flow to the private sector increased during the period due mainly to the rise in financing mainly import and agriculture sector," a senior official of the BB told AHN Media Corp. in the capital, Dhaka.

The official also said the upward trend of private sector credit might continue in the near future because of adoption of the new monetary policy of the central bank.

The central bank announced its fifth monetary policy on Jan., aiming to achieve higher economic growth through expansion of credit to real sector for the current fiscal while keeping inflationary pressure under control.

"Import of essentials, including food grains, is consuming bulk of the credit to the private sector," a senior official of a private commercial bank told the AHN Media Corporation in Dhaka on Saturday.

He also said the existing trend will continue until harvesting of new crops.

The country's overall imports grew by 16.67 percent with food grains marking the highest growth at 160.13 per cent during the period under review over the same period of the previous fiscal.

The letters of credit (LCs) against imports worth $7.560 billion were settled during the period compared with $6.480 billion in the same period of the previous fiscal, the BB's data showed.

Disbursement of agricultural credit during July-December, 2007 stood higher at $572.47 million (BDT 39.26 billion) as the private commercial banks joined for the first time in loan disbursement to the sector. This compared with $354.62 million (BDT 24.32 billion) during July-December, 2006, according to the BB's 'Major Economic Indicators: Monthly Update'- January 2008.

http://www.allheadlinenews.com/articles/7009917894

Remittance sets new record in January

Bangladeshis working aboard have sent home a record 715 million dollars in January, taking the total remittance in the first seven months of the fiscal to over four billion dollars, the central bank said Tuesday.

The country received $4.156 billion remittance during the July-January, which is 25 per cent more than the remittance of the same period in the previous fiscal, data released by the Bangladesh Bank said.

"It's an astonishing figure. The monthly remittance figure of January is a record in the country's history," a senior BB official told the FE.

"If the growth continues at this level, the total inflow of remittances will cross $7.0 billion at the end of the current fiscal year. It will also bolster the country's economy to a great extent," he said.

Officials said this was the first time that remittance surpassed the 700 million mark, spurred mostly by huge growth in manpower export and increased inflow after the devastating cyclone

A record 600,000 people went abroad with jobs in 2007, up about 80 per cent from a year earlier. Officials said the trend continued in January as some 200,000 people have already got visas to work abroad.

"Besides, a lot people who have relatives in the southern cyclone-hit districts have also sent huge amount of remittances to help finance post Sidr construction," the BB official added.

The latest monthly figure was up about 80 million dollars than the previous record set in December last year when the expatriates sent home $635.34 million.

The country's foreign exchange reserve stood at $5.366 billion Tuesday due to robust remittance growth, the central bank said.

Officials said more and more people are now sending home their precious earned money through the official channels, which also contributed to the healthy growth of remittance in the recent months.

In the last three years, the BB enacted a series of anti-money laundering laws and simplified money exchange rules to encourage the expatriate Bangladeshis to avoid the illegal hundi channel for sending home their money.

The new central bank laws prompted the commercial banks to sign a slew of deals with exchange companies in the oil rich Gulf, Malaysia, Singapore, the United States and the UK, making the money transfer easier for Bangladeshis.

"Most of the expatriates can now easily send home their money by using banking channels. It is very cost effective and there is hardly chance that one will lose his money," another official said.

The private banks have also spent huge money in creating awareness among the expatriates and expedited their delivery system to woo them to send money through legal channels.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=24618

Amazing stuff our expat brothers are doing.700 million US dollars remittance in one month is no joke!

HIGHER ECONOMIC TRAJECTORY
Bangladesh ready to rival Asia's mighty manufacturing hubs


By ERIC PRIDEAUX
Staff writer
CHITTAGONG, Bangladesh — Sure, the shipping distance from Japan to this sprawling industrial park might be great, and his trucks must sometimes compete with rickshaws and livestock on the crowded roads outside its walls.


Freighters AWAIT loading and unloading in Bangladesh's main port of Chittagong. At right, an employee of Sanko Optical Co. (BD) holds up an optical lens made for export at the company's plant in the Chittagong Export Processing Zone last month. ERIC PRIDEAUX PHOTOS



But overall, Yasufumi Matsuo, executive director at Japanese electronic parts maker Op-Seed Co.'s factory in Chittagong, is happy with conditions at the Export Processing Zone here in Bangladesh's main port town, where local workers at his plant manufacture buttons and light-emitting diode displays used in vending machines assembled back in Japan.

"They make good products," said Matsuo, who has run the plant for a decade. While he wants improvements in water supply and, to reduce downtime, electricity generation, his 1,200 workers get the job done well, he said. "They hold their own against workers in China and Thailand."

Despite years of corruption that hindered growth by, for example, snarling maritime traffic at Chittagong, Bangladeshi business conditions are improving. Bangladeshi leaders want Japan to invest more in their domestic businesses and consume more exports, saying Bangladesh now has a competitive edge over China as a key economic partner.

In a country with per capita gross domestic product of $1,400 (¥151,000), compared to $33,800 (¥3.7 million), in Japan, building those ties is a priority.

Not that this country of 150.4 million mostly Muslims has been languishing. Annual growth has averaged 5.6 percent over the past 10 years, with last year's rate of 6.7 the highest-ever. A top government official believes that despite November's catastrophic cyclone Sidr, growth this year will hover around a respectable 6.0 percent — above the world average.

"What frustrates me is that we could have touched 8, 8.5 percent (growth) easily" had there been cleaner politics in the land, remarked well-known leather-goods and pharmaceuticals businessman Syed Manzur Elahi, who serves as administrator at the Federation of Bangladesh Chambers of Commerce and Industry.

Elahi is not alone in issuing bold claims. According to a 2000 report for the World Bank titled "Estimating the Effects of Corruption Implications for Bangladesh," if the country had reduced corruption "to levels existing in transition economies like Poland," growth in 1990-97 could have risen by more than half.

Real growth of 8.5 percent would put Bangladesh on the same economic trajectory as India, with which it shares a long border, and well on the way to China's 10.5 percent. But as long as it was business as usual at Chittagong in Bangladesh's southeast, near the border with Myanmar, Bangladeshi manufacturers could not hope to be competitive on a global scale.

Port authorities demanded "speed money," or bribes, before letting goods pass. And even when officials' palms had been duly greased, other miscellaneous port delays made it difficult for Bangladeshi companies to complete overseas orders in fewer than 90 days — twice the time needed in No. 1 competitor China, Elahi said.

This began to change after leaders responded to an outbreak of political unrest by imposing a state of emergency on Jan. 11, 2007. An interim government assumed power, arresting scores of politicians and businessmen suspected of shady dealings.

Some Bangladeshis have grumbled about the state of emergency because elections have been suspended until this December. But by slashing red tape the political deep freeze has allowed the caretaker government to cut ships' waiting time at Chittagong by some 70 percent to four days, giving domestic manufacturers a new edge on such big competitors as China, Elahi said.

Foreign manufacturers still worry about Bangladesh's underdeveloped infrastructure, but the Bangladesh Export Processing Zone Authority is trying to put their concerns to rest.

For example, at the processing zone in South Halishahar, Chittagong, where Japan's Op-Seed has its plant, there are plans to put 50 megawatts of new power generation online in September, expand treatment of water waste and beef up high-speed communications networks to enable video conferencing between the eight Export Processing Zones and overseas offices.

Meanwhile, officials said monthly worker wages of some $30 make Bangladesh more competitive than their counterparts in Vietnam, where they said wages were $80, or China, where wages reach $100. The comfortable business environment has attracted manufacturers supplying parts to such blue-chip Japanese companies as Minolta, Sony and Nissan, according to BEPZA.

Removing obstacles to exports at home is one thing, but another important challenge for Bangladesh is to diversify its overseas markets for woven garments and knitwear, which together account for about three-fourths of exports, and other products such as frozen shrimp, leather and goods made of the vegetable fiber jute. Just over half go to the European Union, while about a third travel to the Americas.

On the other hand, Bangladeshi trade officials say Japan, the world's second-largest economy, absorbs only about 2 percent of exports partly because of stringent requirements to document that goods originated in Bangladesh.

Also, Bangladeshi officials say Japan sets higher quality standards than large Western buyers, making it uneconomical to build relationships with Japan until larger demand emerges.

"Why should I take the extra botheration of having a fully air-conditioned factory for exporting to Japan and the amount of the export order is only $10,000? It's not feasible," said Faridul Hassan, director general at the Ministry of Commerce's Export Promotion Bureau, speaking as a hypothetical exporter slapped with higher requirements to refrigerate export goods.

Conditions are beginning to change, however, as rising labor costs in China, Japan's largest trading partner, will compel China to up its export prices, Bangladeshi trade officials say.

"Our price is quite competitive in comparison to China and the rest of the world," said Shahab Ullah, vice chairman of the Export Promotion Bureau. "There is a growing realization among Japanese policymakers that there has to be China, plus one country. They're looking for it."

An encouraging sign came during a Bangladeshi trade fair in Japan one year ago. On display were a dozen or so products, including ceramics, ready-made garments, textiles, leather products and jute goods.

Japanese visitors were impressed by the quality, Ullah said. For one, there were immediate "spot" orders worth about $1 million and potential orders twice that value, he said, adding that many of the relationships forged that day have taken root.

"Our commodities are coming up," Ullah said. "A serious market is in the process of being opened."

http://search.japantimes.co.jp/rss/nb20080215a2.html

Thanks Banglabir for sharing this article. Things like this surely boost the confidance of the people and helps to to become hopeful about the country.Thanks again.

Hey no problem. anytime.

Remittance earning may stand at over $7 billion in 2008

Bangladesh's remittance earning, that marked an impressive growth in 2007, is set to get a boost as a large number of the country's workforce are expected to win jobs in South Korea and other developed countries with higher remuneration, officials said.

Officials concerned projected that the amount of inward remittance by the end of the year 2008 will stand well over $7.0 billion.

The country fetched a record $6.56 billion remittance in 2007 (January-December) from about 0.5 million Bangladeshis living and working abroad.

The officials said wages of the Bangladeshi skilled job aspirants in developed countries including emerging Asian nations like South Korea will be double than that usually earned by non-skilled workers in Middle Eastern countries.

They said there is also reason for increased foreign remittances as a nearly 92 thousand people already secured overseas jobs in January.

"We have already completed all necessary preparation for holding language proficiency tests of job aspirants to South Korea," Mahbubur Rahman, managing director of Bangladesh Overseas Employment Services Ltd (BOESL), told the FE Sunday.

He said the language proficiency tests of the job seekers will be held on February 22 in the city in cooperation with the Human Resources Division (HRD) of the Ministry of Labour of South Korean government.

The BOESL managing director said minimum wage of the workers employed in South Korea will be $850 per month.

He said Bangladeshi workers who are going to Poland and other European nations including Canada will earn salaries over $1500 per month.

Manpower export to developed countries will mark a sharp rise as population in those countries are declining by about 10 per cent every year, an expert said, adding developed countries will require to hire about 1.0 million workforce annually from developing countries to support their growth sectors.

"Our manpower export to South Korea will begin from next month," Rahman said.

The workers of Bangladesh will be recruited to support construction, manufacturing, services, agriculture, fisheries and livestock sectors of South Korea.

In April last, Bangladesh reached an agreement with South Korea on recruitment of workforce under a new arrangement styled 'Employment Permit System (EPS)'.

Under the EPS, sources said, South Korea is expected to initially recruit 50,000 skilled manpower from 14 countries including Bangladesh.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=25825

Remittance earning may stand at over $7 billion in 2008


Imagine, what the numbers could have been if Bangladesh had more educated and skilled professionals for the overseas labor market.

Imagine, what the numbers could have been if Bangladesh had more educated and skilled professionals for the overseas labor market.
no imagine if the dalals cheating these people out of going abroad and the hundiwalas didnt exist ;)

no imagine if the dalals cheating these people out of going abroad and the hundiwalas didnt exist ;)

Oh absolutely.

Forex reserve, at $5.60b, still seen 'satisfactory'

The foreign exchange reserve of Bangladesh is still at a 'satisfactory level' of US$5.60 billion despite higher imports, particularly food grains, to meet the growing demand in the local market, officials said.

The foreign exchange reserve reached the level because of disbursement of soft loans by a multilateral donor agency and a robust growth in remittances, according to them.

"The reserve may go up further soon due mainly to release of a fund amounting to $50 million by the Asian Development Bank (ADB) under an emergency disaster damage rehabilitation project," a BB senior official told the FE Tuesday.

He also said the foreign exchange reserve may decline slightly in the first week of next month following making a routine payment to the Asian Clearing Union (ACU).

Under the existing ACU provision, settlement of any balance and the accrued interests is made among its member countries at the end of every two months.

However, recently the forex reserve got a World Bank boost, when the multilateral donor agency released a fund to the tune of $100 million as soft loan through the International Development Association (IDA) to help finance part of the FY08 resource gap, incurred as a result of the Cyclone Sidr's wrath.

The credit from the IDA, the World Bank's concessionary arm, will require 40 years for maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.

On the other hand, the country received $4.156 billion in remittance during the period of July-January of the current fiscal, which was 25 per cent more than that of the same period of the previous fiscal.

But the overall opening of fresh letters of credit (LCs) against imports almost doubled in January last against the corresponding period of the previous year showing a upward trend in import of food grains and petroleum products.

Import LCs worth US$ 2.241 billion were opened during the period against $1.163 billion of the corresponding period of last year, according to the central bank statistics.

LCs against imports worth US$1.902 billion were settled during January, 2008 compared with $1.401 billion of the corresponding period of the previous year, the BB data showed.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=25997

BANGLADESHI MIDDLE CLASS:

Nirvikar Singh, an economics professor at the University of California, Santa Cruz, has compiled estimates of the size of the middle class on the Indian subcontinent. The figures show that, at most, the middle class accounts for 9percent of Bangladesh's population, or 13 million people. The estimates for Pakistan and India are 18 percent and 30 percent, respectively.

LINKS:

http://www.despardes.com/articles/feb06/20060202-goldman-sachs-bangladesh.asp

http://www.iht.com/articles/2006/01/24/bloomberg/sxmuk.php

http://www.newagebd.com/2006/jan/31/oped.html

BANGLADESHI MIDDLE CLASS:

Nirvikar Singh, an economics professor at the University of California, Santa Cruz, has compiled estimates of the size of the middle class on the Indian subcontinent. The figures show that, at most, the middle class accounts for 9percent of Bangladesh's population, or 13 million people. The estimates for Pakistan and India are 18 percent and 30 percent, respectively.

LINKS:

http://www.despardes.com/articles/feb06/20060202-goldman-sachs-bangladesh.asp

http://www.iht.com/articles/2006/01/24/bloomberg/sxmuk.php

http://www.newagebd.com/2006/jan/31/oped.html

I always find reports from Indian Media about Bangladesh (Andy Mukherjee, and Nirvikar Singh) quite "entertaining". On the side note cant really believe these number until the sources are revealed. An economics professor sitting in his office in California and "compiling estimates" doesn't carry much weight if he didn't explain how he came about to his conclusion.

word! 30% of india is middle class? what about the 70% as far as i know like 20-30% people in india live on a dollar a day

I always find reports from Indian Media about Bangladesh (Andy Mukherjee, and Nirvikar Singh) quite "entertaining". On the side note cant really believe these number until the sources are revealed. An economics professor sitting in his office in California and "compiling estimates" doesn't carry much weight if he didn't explain how he came about to his conclusion.

Actually these figures seem to be accurate as India is normally quoted to have a middle class totalling 30% of its population. And Pakistan's State Bank said that the country's middle class is estimated at 30 million, which does make up 18% of the population. So these figures don't seem wrong to me. Check the 3rd link, its written by a Bangladeshi.

word! 30% of india is middle class? what about the 70% as far as i know like 20-30% people in india live on a dollar a day

Yes, India's middle class is 30%. Its a wide known fact. But over the years, inequality has also risen in India and many of the remaning 70% aren't doing that well, as you pointed out.

While I will resist a broad characterization of these reports (one of the sources is after all IHT which has been booted out of Bangladesh before) -- there are some points here worth noting.

-- Andy Mukherjee seems intent on highlighting the bad news, i.e. bogeyman JMB (and some begrudgingly admitted good news) about Bangladesh. What is this fobia about the JMB in Kolkata? They're more afraid of these kath-mollahs than we are. The JMB in Bangladesh are more or less done for...the RAB took care of them. Trying to paint Bangladesh as a terrorist haven is getting pretty old now. Leave off the fluff -- concentrate on the economics.

-- To most Bangladeshi people visiting Kolkata and India in general (even small-time retail wholesalers -- ask them) this 'story' of 30% middle class (and then comparing it's superiority to Bangladesh) will ring pretty hollow. Come on -- let's be real! Indian economy is booming but there's a limit on the embellishment. I don't think I agree on the definition of a middle class between all three countries. What are we basing this on?? Ownership of white goods?

--@traPPed -- The last article written by Aftab Ahmed is again a fluff OP-ED piece, by nature highly subjective and with no supporting stats. I find it to be emotional and void of any strong argument.

-- I personally have been to both India and Bangladesh (among many, many others) and while India has an improved economy -- and there are pockets of great wealth, there are pockets of extreme poverty and lawlessness as well. Before writing fluff pieces like this -- 'Andy' and 'Nirvikar' should 'nirvikarly' take a nice long drive on the Kolkata -Delhi quadrilateral of the National Highway through Dhanbad, Hazaribagh and Patna. Then (if they can get out alive with their pants intact) they should come take a little side-trip to Dhaka to get a fair comparison.

-- When one reads pieces like these based on internet statistics (with no grounding in reality) one has to question not only the ignorance but any slanderous motives as well. In any case -- all this slander won't affect the Bangladesh economy one whit (but when will these people learn?).

-- It's a happy affair that most Indians don't bear as much ill will toward Bangladesh as these two do.

-- Andy Mukherjee seems intent on highlighting the bad news, i.e. bogeyman JMB (and some begrudgingly admitted good news) about Bangladesh. What is this fobia about the JMB in Kolkata? They're more afraid of these kath-mollahs than we are. The JMB in Bangladesh are more or less done for...the RAB took care of them. Trying to paint Bangladesh as a terrorist haven is getting pretty old now.

Andy Mukherjee wrote about suicide bombing in BD as a natural occurrence (just happened once and we executed those involved). Maybe he should get a history lesson on his own country particularity the about northeast and Mumbai.

So these figures don't seem wrong to me. Check the 3rd link, its written by a Bangladeshi.


And as for the data, foreigners writing about BD without citation is baseless. And come on traPPed, the one in newage is just an editorial (better get harder evidence) written by once again someone who didn't name sources. The 30% middle class is being way too optimistic about some "estimation" a Indian professor compiled.

manbil bahi and amar great rebuttle for typical indian originated propaganda. I would hold off my response but would say one thing, india need to worry about maoist, naxals and RSS/shibsena terrorizing more than one forth of india. India is not doing enough to contain such extremism and cause for concern in Bangladesh and other countries in neighborhood.

While I will resist a broad characterization of these reports (one of the sources is after all IHT which has been booted out of Bangladesh before) -- there are some points here worth noting.

-- Andy Mukherjee seems intent on highlighting the bad news, i.e. bogeyman JMB (and some begrudgingly admitted good news) about Bangladesh. What is this fobia about the JMB in Kolkata? They're more afraid of these kath-mollahs than we are. The JMB in Bangladesh are more or less done for...the RAB took care of them. Trying to paint Bangladesh as a terrorist haven is getting pretty old now. Leave off the fluff -- concentrate on the economics.

-- To most Bangladeshi people visiting Kolkata and India in general (even small-time retail wholesalers -- ask them) this 'story' of 30% middle class (and then comparing it's superiority to Bangladesh) will ring pretty hollow. Come on -- let's be real! Indian economy is booming but there's a limit on the embellishment. I don't think I agree on the definition of a middle class between all three countries. What are we basing this on?? Ownership of white goods?

--@traPPed -- The last article written by Aftab Ahmed is again a fluff OP-ED piece, by nature highly subjective and with no supporting stats. I find it to be emotional and void of any strong argument.

-- I personally have been to both India and Bangladesh (among many, many others) and while India has an improved economy -- and there are pockets of great wealth, there are pockets of extreme poverty and lawlessness as well. Before writing fluff pieces like this -- 'Andy' and 'Nirvikar' should 'nirvikarly' take a nice long drive on the Kolkata -Delhi quadrilateral of the National Highway through Dhanbad, Hazaribagh and Patna. Then (if they can get out alive with their pants intact) they should come take a little side-trip to Dhaka to get a fair comparison.

-- When one reads pieces like these based on internet statistics (with no grounding in reality) one has to question not only the ignorance but any slanderous motives as well. In any case -- all this slander won't affect the Bangladesh economy one whit (but when will these people learn?).

-- It's a happy affair that most Indians don't bear as much ill will toward Bangladesh as these two do.
same here i wonder why indians worry about jmb a lot, yet these indians will vote the BJP the hindu fundamentals into power but that is okay, they were responsible for the massacre of around a thousand muslims in gujrat a couple of years back yet the bjp is good had something like this happened in pakistan or bangladesh it would have been so highlighted that the indian media would make every citizen of these countries look like terr0rists

You guys obviously know more about the situation between India and Bangladesh then me.

manbil bahi and amar great rebuttle for typical indian originated propaganda. I would hold off my response but would say one thing, india need to worry about maoist, naxals and RSS/shibsena terrorizing more than one forth of india. India is not doing enough to contain such extremism and cause for concern in Bangladesh and other countries in neighborhood.
dawg they aint terrorizers! they is kewl, mang where you at?? :roll:

Instead of worrying about the JMB, Andy et al should be worrying about people like these,

Maoists turn to Cannibalism in Orissa (http://newspostindia.com/report-32222)

Instead of worrying about the JMB, Andy et al should be worrying about people like these,

Maoists turn to Cannibalism in Orissa (http://newspostindia.com/report-32222)

yikes !!!

What is the size of the economy of Bangladesh?

What is the size of the economy of Bangladesh?

$71.44 Billion according to International Monetary Fund


$360.96 Billion in GDP using PPP method according to International Monetary Fund

http://www.imf.org/external/pubs/ft/weo/2007/02/weodata/index.aspx

Forex reserve hits record high just above $6.0 billion

Country's foreign exchange reserve crossed the US$6.0 billion (600 crore) mark Thursday for the first time thanks to disbursement of soft loans by multilateral donor agencies and a robust growth in remittance.

"We have been able to cross the six billion dollar mark for the first time in Bangladesh," a senior official of the Bangladesh Bank (BB) told the FE on the day.

The reserve rose just above the $6.0 billion mark to stay at $6.025 billion on the day.

However, the reserve may decline slightly in the first week of next month following making a routine payment to the Asian Clearing Union (ACU), the official said.

Under the existing ACU provision, settlement of any balance along with the accrued interest is made among its member countries at the end of every two months.

The ACU payment for the January-February period of this fiscal may exceed $700 million due mainly to an increase in imports, particularly food grains from India, the central bank official noted.

The ACU comprises Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan and Sri Lanka. It is an arrangement for settling intra-regional transactions through the participating central banks on a multilateral basis.

The reserve went up as the World Bank recently released $100 million and the Asian Development Bank (ADB) $50 million as soft loans.

The World Bank released the fund worth around $100 million as soft loan through the International Development Association (IDA) to help finance part of the fiscal 2007-08 resource gap created by the two successive floods and the cyclone Sidr, which struck the country last year.

The credit from the IDA, the World Bank's concessionary arm, will require 40 years for maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.

Besides, the Asian Development Bank (ADB) released a fund amounting to $50 million under an emergency disaster damage rehabilitation project.

Both the funds have pushed up the foreign exchange reserve to the present level that will be able to meet payment of import bills of over three months, sources said.

On the other hand, the country received $4.156 billion in remittance during the period of July-January of the current fiscal, which was 25 per cent more than that of the corresponding period of the previous fiscal.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=26700

Andy Mukherjee wrote about suicide bombing in BD as a natural occurrence (just happened once and we executed those involved). Maybe he should get a history lesson on his own country particularity the about northeast and Mumbai.

.

Actually I never heard of Andy Mukherjee before, I guess he is a comedian, as the comment "suicide bombings are as natural occurance in BD" made me LOLing (I cant remember clearly when it happened last, probably in 2005 with 2 casualties); as rather unfortunately, watching tv news about suicide bombings, casualties in neighboring countries has become natural occurrence and we really feel sorry when we come across them on TV.
I'd like to read more from him when I am sad for something!

andy mukherjee!! lawl another blond desi i presume

andy mukherjee!! lawl another blond desi i presume

With a last name of Mukherjee, I can only assume he (or his parents) are Bangalee and from West Bengal/India. Why is it that folks from across the border are on our case? How many people from Bangladesh are so obsessed or preoccupied with India/happenings in India?

I don't know what is the target audience of this clown's writings, but the sad fact is that the average Joe tends to believe what he reads (hears). So, if his campaign is successful, we get lumped with Afghanistan, Iraq, Pakistan, where suicide bombings are need a "natural occurance".

It is the job of the idiots who staff Bangladesh embassies and consulates, to find and read any and every propaganda against Bangladesh and rebutt them immediately!

Ofcourse, Mr. Mukherjee doesn't represent entire West Bengal or India.

I have no time for Mr. Andy Mukherjee - I am busy listening to Hemant Mukherjee.

With a last name of Mukherjee, I can only assume he (or his parents) are Bangalee and from West Bengal/India. Why is it that folks from across the border are on our case? How many people from Bangladesh are so obsessed or preoccupied with India/happenings in India?

I don't know what is the target audience of this clown's writings, but the sad fact is that the average Joe tends to believe what he reads (hears). So, if his campaign is successful, we get lumped with Afghanistan, Iraq, Pakistan, where suicide bombings are need a "natural occurance".

It is the job of the idiots who staff Bangladesh embassies and consulates, to find and read any and every propaganda against Bangladesh and rebutt them immediately!
we be least bothered. ndns got nuffin better to do, you'll never hear them talking about the 30+% population of india who live under the poverty line. I used have a lot of debates like this on believe it or not ratedesi.

just focus on the positive aspects.

Ofcourse, Mr. Mukherjee doesn't represent entire West Bengal or India.

I have no time for Mr. Andy Mukherjee - I am busy listening to Hemant Mukherjee.

Hey, I like the sound of that! Gotta remember it.

Remittance grows over 26pc in 8 months

The amount of inward remittances crossed $4.8 billion in the first eight months of the current fiscal year, marking more than 26 percent rise over the same period of the previous fiscal, according to Bangladesh Bank (BB) statistics.

The country received $4.827 billion in remittances during the July-February period of fiscal year 2007-08 compared to $3.824 billion during the corresponding period of FY2006-07.

Meanwhile, the country's foreign exchange reserve reached a new high at $6,015.52 million as of yesterday, mainly due to robust growth of remittance and the donor agencies -- World Bank and Asian Development Bank -- that have recently paid $100 million and $50 million respectively.

According to BB, Bangladeshi nationals working abroad remitted $676 million in February which was $710 million in January. The monthly remittance figure of January was a record in the country's history, BB sources said.

The country's private and state-owned commercial banks are trying their best to increase the flow of inward remittances from different parts of the world, including the Middle East, United Kingdom, Malaysia and Singapore to meet their growing demands for foreign exchange, sources said.

http://www.thedailystar.net/story.php?nid=26254

Forex reserves to cross $10 billion in two years Bangladesh Bank Governor says

Country's foreign exchange reserves will cross US$10 billion (1,000 crore) within the next two years, said Bangladesh Bank Governor Dr Salehuddin Ahmed.

He said huge number of manpower was exported abroad in the last one year. Since they have been sending remittances, reserve position is getting consolidated day by day. Bangladesh's reserve position is much better compared to those of neighbouring countries, including India and Pakistan.

The Governor was talking to journalists at his office at the Bangladesh Bank Thursday afternoon.

According to the statistics of the Foreign Exchange Department of Bangladesh Bank, foreign exchange reserves amounted to US$6.0137 billion (601.37 crore) till Thursday.

Responding to a criticism that the central bank is holding the reserves, Dr Salehuddin said Bangladesh Bank has constantly been releasing funds from the reserves to the market. Funds from the reserves are being used to import food and fuel oil. Even, Agrani Bank Limited was given Tk 38.49 crore on Thursday to import fuel oil.

The Governor said confidence in trade and investment comes back if the reserve position remains consolidated. It becomes possible to make international payment for import trade.

When asked why the foreign direct investment (FDI) was not coming to the country despite the existence of a good reserve position, the Bangladesh Bank Governor said excessive dependence on FDI is not right, because the money that comes through the FDI is repatriated by investors.

Dr Salehuddin said steps have been taken to attract the hard-earned foreign currency remitted by expatriate Bangladeshis to the productive sectors instead of unproductive sectors. "We want that the money received from remittances is invested in small and medium enterprises in rural areas," he said.

The Bangladesh Bank statistics shows that foreign exchange reserves amounted to US$4.8 billion (480 crore) in the first week of March last year. The reserves have increased by US$2.20 billion (220 crore) in one year. In February this year the expatriate Bangladeshis sent remittances worth US$68 crore to the country, while in the previous month of January remittances worth US$71.54 crore, which was a record amount in the country's history of remittance.

Economists think that foreign exchange reserve position is being strengthened because of the increase of overall remittance flow to the country.

In January 2007, average foreign exchange reserves amounted to US$3.73 billion. Since then the foreign exchange reserves have been rising. The foreign exchange reserves crossed US$4 billion mark in February this year. In June this year the reserves crossed US$5 billion.

Sources at Bangladesh Bank attributed the rising trend in foreign exchange reserves to the formulation of Money Laundering Act 2002 by the government. Since then the flow of remittances through the banking channel has been increasing.

Besides, the expatriate Bangladeshis are preferring to send remittances through legal channels as the rate of dollar has been rising against Bangladesh taka during the last one and a half years.

http://nation.ittefaq.com/issues/2008/03/08/news0626.htm

8-month revenue grows 24.17pc

Government revenue income has increased by 24.17 percent over the first eight months of current fiscal compared to the corresponding period of previous year.

Revenue collection stood at Tk 27,061.44 crore during July-February to the satisfaction of the exchequer, according to the preliminary estimate available from NBR yesterday.

The collection during the same period of last fiscal was Tk 21793.88 crore.

Of the total amount, Tk 5,725.91 crore came from import duty, Tk 5,049.38 and 1,131.29 crore from VAT and supplementary duty at import level.

The collection from excise duty, VAT and supplementary duty at local level, and turn over tax stood at Tk 139.56, 5,326.94, 3,752.31, and 2.85 cror, respectively.

NBR collected Tk 5,632.12 crore in income tax, while Tk 110.04 crore have been collected from travel tax and Tk 0.34 crore from other taxes.

Target for revenue earning has been set at Tk 43,850 crore for the current fiscal that ends in June next.

http://www.thedailystar.net/story.php?nid=27483

Government foresees 20pc growth in NBR's revenue for next fiscal

The caretaker government is expected to fix nearly 20 per cent higher revenue generation target for the national board of revenue (NBR) in the next fiscal following healthy tax growth in the current fiscal, officials said Wednesday.

The NBR would be asked to collect Tk 530 billion in revenues in the 2008-9 fiscal, up from this fiscal's revised target of Tk445 billion, as the government seeks to improve the country's tax-GDP ratio at around 9 per cent, an official said.

"It is a challenging target. We will need to collect an additional Tk85 billion in revenues next year," he said, adding the government has gradually planned to increase the tax-GDP ratio to 10 per cent by 2011-2012.

Finance ministry officials said the present caretaker administration is, however, optimistic about higher revenue in the next fiscal, as in the first seven months of the current fiscal, revenue has grown a record 24 per cent.

The record growth in the recent years has already prompted the NBR to make upward adjustment of the target in the current fiscal by another Tk 6.58 billion.

The government has originally set the revenue target at Tk 438.50 billion this fiscal year. The revised target will help push the country's tax-GDP ratio to 8.3 per cent from the projected 8.2 per cent.

NBR officials said the present caretaker government wants to introduce major changes in tax policies in the next fiscal to achieve higher growth in the coming years.

It sought technical supports from the International Monetary Fund (IMF) for a comprehensive reform in the tax regime and revenue administration. The IMF submitted its suggestions last week.

Revenue board chairman Abdul Mazid said reform is a must to achieve higher growth in the coming fiscal.

He said revenue mobilisation will not be easy in the next fiscal due to slower than expected annual growth in the current fiscal, caused by natural calamities and slow down in economic activities.

The government has forecast that the economy would grow around 6 per cent in the current fiscal, which is one per cent less than the initial projection made by the Finance Adviser.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=28558

In our, we ran through the reasons for investing in 'frontier markets'. Now it's time for th nitty gritty. Which are the hottest emerging markets on the planet, those that could be the next Russia or China? Here's our shortlist:

Bangladesh

Like Pakistan, Bangladesh initially tends to get a rough deal when it comes to global perceptions - military rule prompted by rampant political corruption, made increasingly worse by climate change which is inflicting huge natural damage on the deltas of the Bay of Bengal. But Dr Feriani begs to differ. He sees more and more adventurous global money flowing into the $11bn local market. "I note the predictions of the CEO of the Dhaka exchange that he expects to see $15 bn by mid 2008 as more IPOs and privatisations occur (market cap to GDP remains low by emerging markets standards). A combination of reforms and privatisations is spurring interest. Economic growth at around 7 per cent in real terms seems maintainable - but perhaps it could do with more diversification away from agriculture and textiles and infrastructural investment is needed. The currency seems OK with solid reserves and record foreign worker remittances."

International investor interest is also growing. Citigroup's acquisition of a licence for investment banking is a sign of huge potential as is the entrance of many other multinationals (Shell, Unocal, BP, Mobil, HSBC, Citibank, Samsung, Toshiba, Cemex, Singtel, Orascom) into local markets. Research from JP Morgan also includes Bangladesh in their "Frontier Five" group of countries in mid 2007 (alongside Kazakhstan, Kenya, Nigeria and Vietnam) and Goldman Sachs also included Bangladesh in their 'Next 11 countries to watch.' "The scale and potential for Bangledesh is obvious - a population of 150m, strong demographics, a hard working people and the early signs of an emerging middle class."

Read about the other countries at Investors Chronicle (http://www.investorschronicle.co.uk/MarketsAndSectors/Markets/article/20080320/104e18ca-f66c-11dc-8f6a-0015171400aa/The-seven-hottest-emerging-markets.jsp)

Nice Article. thanks for sharing. As I tell my friends living outside , There is a hope with Bangladesh and I will definitely see Bangladesh among in the same level as Malaysia in next 15 years.

What are emerging sectors of Bangladesh economy? Telecoms garments and?

What are emerging sectors of Bangladesh economy? Telecoms garments and?

Telecoms, Garments, Aviation (this is relatively new) Pharmaceuticals, Shipbuilding, Energy, Chemicals (Fertilizers), Banking, Leather goods, packaged foods and IT. Anyone else care to add more to the list.....

the rest that you mentioned, what are the size? it's simple too small, is it not? energy? what resources you have?

the rest that you mentioned, what are the size? it's simple too small, is it not? energy? what resources you have?

Everything is Billions+ except for IT, which is still growing. We have 23 trillion cf of Proven Natural gas (plus maybe more in Bay of Bengal deep sea) and about 3 billion of Anthracite(the highest rank) and proven Bituminous coal. All this can be found online.

Who is this "ydoumceq" and what is this person driving at?

Of all the threads I saw from this fellow -- I saw pointless discussions about one issue. Most centered around a simple theme --

Muslim=Poor and why Muslim countries are so poor today.

Now I for one -- am not going to be suckered in into a discussion about this because it doesn't help development in our country which is no. 1 in my agenda.

My issue is - -we welcome curious people who are interested about our culture, history and our tourist spots etc. but discussing why Bangladesh is poor (and if religion is one of the reasons) is pointless to me.

^^ As you all can see this guy has been banned. Notice also the similarities between this guy and "Mondechampion." When unfamiliar people like this one show up and ask questions, I think it best to check previous posts of said person before replying. Most of us try to be courteous and reply to questions of visitors but increasingly there are trolls with no serious interest in BD (or anything else constructive for that matter). This guy gets his kicks by trash talking about Muslims. Mondechampion got his buzz from putting down South Asians and others. They are two peas from the same pod and there are more of them out there. Of course there are plenty of decent people as well...a review of previous posts should clarify that.

a review of previous posts should clarify that.

My point exactly :)

AMCHAM India Business delegation to Bangladesh eyes New opportunities for Growth of Trade and Investments

AMCHAM India Business delegation to Bangladesh eyes New opportunities for Growth of Trade and Investments

With the aim of exploring expansion opportunities in the hugely untapped south Asian market while retaining India as its base, American Companies are now targeting Bangladesh as its next destination. To facilitate the process, American Chamber of Commerce in India ( AMCHAM India ) is leading a high level 22 member business delegation to Dhaka on April 1, 2008.
The business delegation comprising of US companies presently operating in India and led by Mr K N Memani, Chairman, AMCHAM and with Mr. Ramesh Bajpai, Executive Director of AMCHAM India coordinating the delegation, aims to trade into newer territories within the South Asian region. Bangladesh which has not been fully explored for its full potential by American businesses offers a great opportunity for economic cooperation between the business communities of the two countries.
The meetings with senior government officials and industry representatives of Bangladesh will allow the representatives from diversified sectors as food & beverages giant Coca-cola, consultancy firms like the Deloitte, Mercer, Information Technology major like Quaker Chemicals, Medical Devices company like Stryker and AMO, and many others like Sikorsky, etc. to have a broader perspective of the Bangladesh market. The common affinity among India, USA and Bangladesh will let the delegation embark upon a faster road of business development.
A buoyant Mr Memani said on the eve, “We would like to expand the Indo-Bangladesh trade thru US Companies to a newer height. This delegation would allow businessmen from both the countries to discuss ways and means to expand the business ties. With businesses of all the delegates already on full steam in India, it is time for us to take the fruit of development to newer regions. The large and not fully explored Bangladesh market offers the companies’ huge avenue to expand their market.”
Presently the trade scenario in Bangladesh is very promising. According to latest World Trade Organisation’s (WTO) figures, the country’s rate of growth in real GDP has been 6% for the time period 2000-2006. The growth in the merchandise trade has also been phenomenal with annual percentage change hovering at 27% in 2006. This is an indication of the huge opportunity for the foreign investors to tap the buoyant Bangladesh economic conditions.


http://www.indiaprwire.com/pressrelease/other/200803288388.htm

“Making Bangladesh a Leading Manpower Exporter: Chasing a Dream of US$ 30 billion Annual Migrant Remittances by 2015”.

Full report at Danish Embassy (http://www.ambdhaka.um.dk/NR/rdonlyres/386D0B20-E217-43B7-81D5-6FD4E522FA3C/0/IIMREPORTFINAL.pdf) (390 pages, PDF format may take long time to load)

Bangladesh to get credit rating

BB to invite int'l agencies to submit proposals next week
Sajjadur Rahman




The Bangladesh Bank (BB) will invite three international credit rating agencies next week to submit proposals on conducting credit rating for Bangladesh in efforts to attract more foreign investment and receive easy international aid.

The central bank has initiated the move for Bangladesh's first-ever credit rating following arbitrary credit ratings for the country by donors and individual countries.

Standard & Poor's, Moody's Investors Service and Japan Credit Rating Agency will be invited to submit their proposals.

"Of the three, two agencies will be selected finally to conduct Bangladesh's credit rating separately,” seeking anonymity a senior BB official said yesterday.

Citibank NA, Hongkong Shanghai Banking Corporation and Standard Chartered Bank will offer advisory services to the Bangladesh Bank to do the ratings, sources said, adding that the BB has already got the nod from the government on the issue.

The central bank sources said the country's rating is also needed to enhance the country's image.

"We need credit rating for the country so that any organisation or country cannot do such ratings solely based on their perceptions," BB Governor Dr Salehuddin Ahmed told a discussion organised by the Metropolitan Chamber of Commerce and Industry last week in Dhaka.

"I have seen some kinds of ratings, which unnecessarily branded Bangladesh as a high risk country," the governor said. He cited examples of Standard Chartered Bank and an OECD country that rated Bangladesh as a 'high risk' country.

BB officials said country rating will help Bangladesh mobilise resources from capital markets.

They said foreign investors and multilateral lenders evaluate credit ratings of a country before investment or providing loans.

Although credit rating for business organisations is common globally, country credit rating is a little new. However, some Middle East and many African countries have their country credit ratings.

Credit rating generally reflects a country's overall economic situation, but socio-political issues also get high focus.

United Nations Development Programme (UNDP) has helped sub-Saharan African and a few developing countries obtain credit ratings.

When asked, a BB executive director said the central bank has decided not to take help from donors as the cost to employ international firms for rating is not much high.

http://www.thedailystar.net/story.php?nid=33204

^^ This is long over due. Even many of those Sub-Saharan countries got a sovereign ratings.

Asian Tiger to raise $100-200m for Bangladesh fund
Star Business Report

Asian Tiger Capital Partners will launch a $100 - $200 million private equity fund to invest in Bangladesh this September, with the UK company claiming that foreign direct investment in the country could increase tenfold to around $7 billion by 2015.

The announcement was made as Asian Tiger unveiled its first research report on the Bangladeshi economy, focusing on 14 investment sectors ranging from agriculture to power and pharmaceuticals.

The fund, which will be aimed at general investment, will be followed by a separate stock market equity fund and an infrastructure fund.

The group hopes to raise money primarily from global investment institutions and non-resident Bangladeshis (NRBs).

Ifty Islam, Managing Partner of Asian Tiger, said Bangladesh offered real opportunities at a time when, due to the American subprime crisis, global investors, especially in the Middle East with excess petro-currency surpluses, are looking for alternatives to the US and Europe to invest in.

“Bangladesh doesn't need to have a begging bowl to get investors to come here,” said Ifty, a former Managing Director at Citigroup in New York, who has also held senior positions at Deutsche Bank and Merrill Lynch.

If Vietnam could increase FDI from $ 2 billion in 2000 to $ 20 billion in 2007, then why should Bangladesh not be able to follow suit, he said.

He said the 140-page report titled 'Bangladesh: Growth, Investment, Opportunity' will be distributed to several thousand global investors. “We want to give people better information, to try and get global financial institutions to focus on Bangladesh.”

“We want the top global investors and multinationals to see Bangladesh as Asia's next great untapped investment opportunity,” he said.

Ifty also said in the next phase Asian Tiger will publish separate reports on each of the 14 investment sectors with much more details and analysis.

Speaking at the launch of the report, British High Commissioner in Dhaka, Anwar Choudhury, said the report will help build the country's image.

"Bangladesh is often talked about as becoming an Asian Tiger, but the missing link is how this will be achieved," he said. The report and the expereince of NRB's such as Ifty Islam would help set Bangladesh on the 'Tiger path,’ he added.

“I hope the government will distribute the report to all its embassies across the world,” he said.

http://www.thedailystar.net/story.php?nid=32625

^^ Asian Tiger Capital Partners (one of the pioneering private equity firms in BD) released a report of the state of investment in BD called
Bangladesh: Growth, Investment, Opportunity

If any one interested the link to the report is AT Capital Research (http://www.at-capital.com/at/AT%20Capital%20Research%20-%20Bangladesh%20-%20Growth,%20Investment,%20Opportunity.pdf)

Many foreign companies are predicting a very bright future for Bangladesh these days.Thanks for sharing Amar.

Bangladesh on track for economic growth

The International Monetary Fund says Bangladesh's economy could grow by up to six-percent this fiscal year.

That's one percent higher than the IMF's original projection earlier this year, and comes as Bangladesh continues to recover from widespread flooding in the wake of Cyclone Sidr last November.

The IMF says exports have picked up and the rice harvest is also expected to be good, although it warns that inflation - currently hovering around 10 percent - remains a challenge to growth.

It has also praised government moves to expand subsidised food and fuel supplies to the nation's poor, as global prices continue to rise.

http://www.radioaustralia.net.au/news/stories/200804/s2228562.htm?tab=latest

BB forecasts 6pc GDP growth on strong economic upturn
Star Business Report

Country's GDP (gross domestic product) is set to grow between 6 percent and 6.2 percent on a strong economic upturn in the current fiscal that ends in June, the Bangladesh Bank (BB) has forecast.

The BB attributed the success to the resilience and capacity of the people for quick recovery and timely support from the government as well.

"Disbursement of agricultural and industrial credit, import of industrial raw materials and intermediate goods, increase in manufacturing production, exports and workers' remittances indicate that the economy is bouncing back to its trend growth path," a BB quarterly report on January-March that was released yesterday said.

"The economic indicators have regained their momentum," Habibullah Bahar, economic adviser at the BB, told reporters during the release of the quarterly. "Economic indicators were down at the beginning of the current fiscal consequential of the twin floods and the cyclone Sidr," he said, adding that now the future of the economy looks bright.

According to quarterly data, the disbursement of agricultural credit rose 73.1 percent in the third quarter of the 2007-08 fiscal compared to the same period of the previous fiscal year. The production of boro rice is likely to surpass its target of 17.5 million tonnes.

Mustafa K Mujeri, chief economist of the BB, said the private sector credit growth stood at 17.6 percent in the third quarter of the current fiscal with improvements in the agriculture, manufacturing and service sectors.

However, the BB report said the degree of economic performance would ultimately be determined by a host of indicators of economic and non-economic development, which include timely and successful completion of the ongoing rehabilitation programmes and rehabilitation of the calamity-affected people.

The report further said that it is important for the government to act quickly to address electricity, gas and other energy constraints so that production in different sectors can go unhindered.

An important perquisite for sustaining the ongoing efforts to raise production in the agriculture sector is the successful implementation of the boro rice procurement programme to ensure fair price to the farmers so that they have the incentives to invest and produce more in the following seasons, the quarterly said.

This positive outlook is, however, dependent upon several key factors, such as supportive macro-economic policies, steady growth in private sector credit, timely implementation of public sector policies and institutional and structural reforms.

There are some internal hurdles to overcome, especially that of inflationary pressure and lack of business confidence, for achieving the desired outcomes, the report mentioned. Of the external challenges, the report said, rising oil and food grains prices are the two major ones.

http://thedailystar.net/story.php?nid=34637

Greats to know about the economic upturn.Thanks for sharing the news.

What is Bangladeshs GDP (PPP) in 2008? IMF, WB and CIA recently downgraded China's GDP. Was Bangla gdp downgraded too? Last year I read it was around 300b$.

Recent export surge is welcome relief during the time when credit crunch and recession fear gripped major markets. There fare ew contributing factors to the recent export surge.

1) Increase price competitiveness due to Chinese currency appreciation and wage increase.
2) Increased productivity in garments industry
3) Increased delivery efficiency
4) Increased demand for value products

On broader economic front steady increase of remittance flow has kept currency reserve at healthy level. Every two months we are burning close to billion dollars on non energy related imports. This is to show along with our export our import bill has almost doubled.

In mid and long term we are in great risk because extremely high energy cost and scarce energy resource locally. In addition, inflation is so high that without increasing the wage for garments and other workers, export level can not be sustained in the long run. When that happens, price competitiveness would be in risk.

Manpower export another vital engine for our economic growth has been increasingly under pressure because of subversive activities from our neighbor jealousy. If we could not stave off such ill agenda and improve relation with hosting countries, there will be no $30 billion target.

Another and most important economic target should be increase food production and build food stock. Without food security most of our achievement would be at vulnerable state.

I have not seen much action to address these macro issues except garments workers were provided subsidized food in the time of high inflation. It’s great we are doing well but without action strategy to sustain growth, one should be only cautiously optimistic.

Seven companies join offshore gas bidding
Wed, May 7th, 2008 9:18 pm BdST


Dhaka, May 7 (bdnews24.com) – The government is determined to sign deals with oil and gas companies for exploration of new offshore gas fields by October to meet the country's growing energy needs, an energy official said Wednesday.

Muqtadir Ali, a director of the government-run Petrobangla, said one domestic and six international companies from countries including the United States and China, have taken part in the bidding to explore gas fields in the Bay of Bengal.

The government called an international bidding in February, and Petrobangla opened the bid documents on Wednesday to complete evaluation of the proposals in three weeks for a final decision, Ali said.

The selected companies will drill exploration wells and conduct seismic surveys after the deals are signed, he said.

The Houston, US-based Conoco-Phillips, Australia's Santos International, Longwoods Resources (a US-China joint venture), Korea International Oil Corporation, China National Offshore Oil Corp, known as CNOOC, Comtrack Services and Tullow are among the players that have joined the bidding.

"We are satisfied with the response," Ali said, as he unveiled the bid details.

Currently Bangladesh, with about 15 trillion cubic feet (425 billion cubic metres) of proven and recoverable gas reserves, is facing at least 100 million cubic feet of gas shortages a day.

Officials and experts say the crisis will aggravate in the near future.

The nation has only one offshore gas field, which is managed by the Edinburgh, Scotland-based Cairn Energy. It has been producing gas from the Sangu plant in the Bay of Bengal since 1998.

^^ I hope deal like this goes through.

HIGHER ECONOMIC TRAJECTORY
Bangladesh ready to rival Asia's mighty manufacturing hubs

CHITTAGONG, Bangladesh — Sure, the shipping distance from Japan to this sprawling industrial park might be great, and his trucks must sometimes compete with rickshaws and livestock on the crowded roads outside its walls.

But overall, Yasufumi Matsuo, executive director at Japanese electronic parts maker Op-Seed Co.'s factory in Chittagong, is happy with conditions at the Export Processing Zone here in Bangladesh's main port town, where local workers at his plant manufacture buttons and light-emitting diode displays used in vending machines assembled back in Japan.

"They make good products," said Matsuo, who has run the plant for a decade. While he wants improvements in water supply and, to reduce downtime, electricity generation, his 1,200 workers get the job done well, he said. "They hold their own against workers in China and Thailand."

Despite years of corruption that hindered growth by, for example, snarling maritime traffic at Chittagong, Bangladeshi business conditions are improving. Bangladeshi leaders want Japan to invest more in their domestic businesses and consume more exports, saying Bangladesh now has a competitive edge over China as a key economic partner.

In a country with per capita gross domestic product of $1,400 (¥151,000), compared to $33,800 (¥3.7 million), in Japan, building those ties is a priority.

Not that this country of 150.4 million mostly Muslims has been languishing. Annual growth has averaged 5.6 percent over the past 10 years, with last year's rate of 6.7 the highest-ever. A top government official believes that despite November's catastrophic cyclone Sidr, growth this year will hover around a respectable 6.0 percent — above the world average.

"What frustrates me is that we could have touched 8, 8.5 percent (growth) easily" had there been cleaner politics in the land, remarked well-known leather-goods and pharmaceuticals businessman Syed Manzur Elahi, who serves as administrator at the Federation of Bangladesh Chambers of Commerce and Industry.

Elahi is not alone in issuing bold claims. According to a 2000 report for the World Bank titled "Estimating the Effects of Corruption Implications for Bangladesh," if the country had reduced corruption "to levels existing in transition economies like Poland," growth in 1990-97 could have risen by more than half.

Real growth of 8.5 percent would put Bangladesh on the same economic trajectory as India, with which it shares a long border, and well on the way to China's 10.5 percent. But as long as it was business as usual at Chittagong in Bangladesh's southeast, near the border with Myanmar, Bangladeshi manufacturers could not hope to be competitive on a global scale.

Port authorities demanded "speed money," or bribes, before letting goods pass. And even when officials' palms had been duly greased, other miscellaneous port delays made it difficult for Bangladeshi companies to complete overseas orders in fewer than 90 days — twice the time needed in No. 1 competitor China, Elahi said.

This began to change after leaders responded to an outbreak of political unrest by imposing a state of emergency on Jan. 11, 2007. An interim government assumed power, arresting scores of politicians and businessmen suspected of shady dealings.

Some Bangladeshis have grumbled about the state of emergency because elections have been suspended until this December. But by slashing red tape the political deep freeze has allowed the caretaker government to cut ships' waiting time at Chittagong by some 70 percent to four days, giving domestic manufacturers a new edge on such big competitors as China, Elahi said.

Foreign manufacturers still worry about Bangladesh's underdeveloped infrastructure, but the Bangladesh Export Processing Zone Authority is trying to put their concerns to rest.

For example, at the processing zone in South Halishahar, Chittagong, where Japan's Op-Seed has its plant, there are plans to put 50 megawatts of new power generation online in September, expand treatment of water waste and beef up high-speed communications networks to enable video conferencing between the eight Export Processing Zones and overseas offices.

Meanwhile, officials said monthly worker wages of some $30 make Bangladesh more competitive than their counterparts in Vietnam, where they said wages were $80, or China, where wages reach $100. The comfortable business environment has attracted manufacturers supplying parts to such blue-chip Japanese companies as Minolta, Sony and Nissan, according to BEPZA.

Removing obstacles to exports at home is one thing, but another important challenge for Bangladesh is to diversify its overseas markets for woven garments and knitwear, which together account for about three-fourths of exports, and other products such as frozen shrimp, leather and goods made of the vegetable fiber jute. Just over half go to the European Union, while about a third travel to the Americas.

On the other hand, Bangladeshi trade officials say Japan, the world's second-largest economy, absorbs only about 2 percent of exports partly because of stringent requirements to document that goods originated in Bangladesh.

Also, Bangladeshi officials say Japan sets higher quality standards than large Western buyers, making it uneconomical to build relationships with Japan until larger demand emerges.

"Why should I take the extra botheration of having a fully air-conditioned factory for exporting to Japan and the amount of the export order is only $10,000? It's not feasible," said Faridul Hassan, director general at the Ministry of Commerce's Export Promotion Bureau, speaking as a hypothetical exporter slapped with higher requirements to refrigerate export goods.

Conditions are beginning to change, however, as rising labor costs in China, Japan's largest trading partner, will compel China to up its export prices, Bangladeshi trade officials say.

"Our price is quite competitive in comparison to China and the rest of the world," said Shahab Ullah, vice chairman of the Export Promotion Bureau. "There is a growing realization among Japanese policymakers that there has to be China, plus one country. They're looking for it."

An encouraging sign came during a Bangladeshi trade fair in Japan one year ago. On display were a dozen or so products, including ceramics, ready-made garments, textiles, leather products and jute goods.

Japanese visitors were impressed by the quality, Ullah said. For one, there were immediate "spot" orders worth about $1 million and potential orders twice that value, he said, adding that many of the relationships forged that day have taken root.

"Our commodities are coming up," Ullah said. "A serious market is in the process of being opened."

JapanTimes (http://search.japantimes.co.jp/print/nb20080215a2.html)

Buoyant Bangladesh: An Emerging Investment Destination

By Mubasshir Mushtaq
Posted, Mar 3rd, 2008

A bare utterance is being transformed into a reality. The famous saying of Dr. Muhammad Yunus (Nobel Prize-winning founder of Bangladesh’s Grameen Bank) that “We will create a poverty museum by 2030…We will start with Bangladesh” finally goes global with his pioneering micro-credit scheme to poor people with no bank account or credit history. A bank from a “third world country” is making inroads into the world’s richest country: the United States. Grameen America which launched in January 2008, has already lent a modest $145,000 to immigrant women in New York City.

That’s the Bangladesh of Dr. Muhammad Yunus, the man who has converted millions of ordinary Bangla women into “Bangla heroines” with his unique application of micro-credit techniques.

Dr. Muhammad Yunus is now the symbol of a new brand Bangladesh which is attracting tremendous investment interest.

http://dinarstandard.com/images/brandbangladesh.jpg

Grameen's joint venture with Danone, one of the leading producers of nutritious food in the world, is one such example. The basic aim of the joint venture was to “improve the diet of rural Bangladeshis — especially the children” at a “low price” in order to make a “real difference in the lives of millions of people”. The joint venture is one of the finest targeted-examples of the ‘Fortune at the bottom of pyramid’ theory. (This theory is derived from the work of renowned researcher and change leader Professor C. K. Prahalad’s book ‘Fortune at the Bottom of Pyramid.’ It means that there is a vast, untapped purchasing power and demand at the lowest income levels of society and there is a fortune to be made if products are designed creatively at low cost and sold at low prices.)

The 'Bangladesh Paradox' and Emerging Investment Opportunities

Bangladesh, designated a Least Developed Nation by the United Nations in 2003 (2006 est GNP per capita at $440), has surprised investors all around the world. With a 150 million strong population and extreme poverty at the helm, it has put to rest all speculation that it was bound to fail in terms of socio-economic indicators. In spite of a troubled political history and a caretaker government in power, global banks and financial institutions paint an optimistic picture of Bangladesh.

The World Bank calls it the ‘Bangladesh Paradox’. Top-notch banks like Citi, Goldman Sachs, JPMorgan and Merrill Lynch have identified Bangladesh as a ‘key investment opportunity’. Its buoyancy can be gauged from its “bullish” image: The Dhaka Stock Exchange Index is at a 10-year high, 66 per cent up this year thus making Bangladesh Asia’s top-performer after China, leaving even a ‘resurgent’ India behind. With consistent GDP (Gross Domestic Product) growth of 7%, it is set to march ahead and become an ‘Asian Tiger’ soon.

The impressive growth overall is taking place in ‘a climate of political restructuring’ – thanks to the government’s interest in privatizing many state-owned enterprises.

Bangladesh is finally shattering its cocooned perception all across the globe. As the author-editor M.J. Akbar told DinarStandard, “If Bangladesh is slowly emerging out of the basket into which Henry Kissinger once dumped it (he called the country a “basket case”) it is because women have become the prime movers of economic development.”

Bangladesh has moved from the “basket case” towards the “bullish” case.

There are plenty of corporate houses in Bangladesh who embody the “Bullish Bangladesh” image. Rahimafrooz Group and Asian Tiger Capital Partners (popularly known as AT Capital) are two such companies who have the potential to transform Bangladesh into an ‘economic powerhouse’ and ‘Asian Tiger’ respectively.

Rahimafrooz’s Innovative Solar Energy Solutions

Rahimafrooz Group is a 50 year old modern day family conglomerate that showcases the 'Bangladesh Paradox.' In 2007, the Company had a turnover of $125 million and has 1700 employees and mainly deals in three areas: Automotive Aftermarket, Energy Services (including Renewable) and Retail. Its vision is to become one of the top two storage power companies in South Asia by the year 2010 and aspires to be “the most admired and trusted organization” by following “ethical business practices” and “adding value to stakeholders”.

Rahimafrooz’s innovative solar energy solution is today touching the lives of thousands of poor people in the country. As of now, more than 30,000 thousand families are supplied with solar power with the help of NGOs and International Organizations.

It was because of Rahimafrooz’s Solar Home System (SHS) that Mr. Bakaddas Mia’s family overcame the “darkness of night”. It also helped him to educate his children. Mr. Mia’s story is not unique; there are many heart-warming stories of instant transformation.

http://dinarstandard.com/images/rahimafrooz.jpg

Speaking on solar energy, Munawar Misbah Moin, Group Director, Rahimafrooz told DinarStandard, “We, at Rahimafrooz, have designed solar batteries for use in small home lighting systems. In addition, we have set standards for charge controllers, inverter circuits and lamps and helped develop local production of all components other than the solar module”.

Elaborating on the variety of solar energy, he said, “Our experience ranges from Solar Home System (SHS), centralized system, vaccination refrigeration, water pumping, drip irrigation, telecom back up system, etc”.

Scope for Solar Energy

Mr. Munawar said that the scope for solar energy in Bangladesh is bright. “The rural home lighting market”, he said, “is growing robustly at the rate of 100% and the market for other customized solution is also developing”.

“We have been focusing on rural market in Bangladesh with potential of 1 Million households and so far all players have supplied SHS to 200,000 households”, he told DS.

OIC’s Potential Role for the Promotion of Solar Energy

He also talked about the prospects of Solar Energy in developing Muslim countries where there is an acute shortage of energy.
“The solar proposition is feasible and sustainable in an area in any country where installation of main electrical grids is far off (15 to 20 year time)”, he said.

Mr. Munawar also suggested that institutions like the OIC (Organization of Islamic Conference), IDB (Islamic Development Bank), and Kuwait Fund could promote the use of renewable energy by providing soft loans and replicating the SHS program like Bangladesh.

“A platform like the OIC could effectively increase trade and investment between Muslim countries and together we could make platforms like ‘World Islamic Economic Forum’ more effective”, he told DS.

Currently, Rahimafrooz Solar intends to tap the local market. “But in the future we will explore the possibility of expanding into SAARC (South Asian Association for Regional Cooperation) and Africa as well”, he told DinarStandard.

When asked why Bangladesh is being considered an emerging investment destination, he said, “Bangladesh has immense strategic and geographical value because of possible easy access to some of the most lucrative and emerging economies, particularly India and China of the BRIC, India having the fastest emerging middle class, and China having over 1 billion people and being the fastest growing economy in the world”.

“Thus investing in Bangladesh can give access to both local and international markets”, he emphasized.

“With 95% primary enrollment and women’s empowerment on the rise, Bangladesh will never be the same”, he told DS.

Key Sectors for Investment

Mr. Munawar listed the key sectors for investment as: power, infrastructure, agriculture, textile, vocational training center, skilled manpower sourcing, sea food, light engineering for local and export markets, manufacture and export garments, and footwear related consumer products.

AT Capital brings Wall Street to Bangladesh

http://dinarstandard.com/images/atcapital.gif

Asian Tiger Capital Partners – otherwise known as AT Capital – one of the first financial institutions in Bangladesh to focus on private equity and venture capital – believes that the Bangladesh has the “potential to be one if the next Asian Tigers” as the company name itself suggests.

AT Capital invests in leading companies and works with management to grow and improve them to create shareholder value.

With Ifty Islam as its founder and managing partner, AT Capital can rightly boast of “years of international professional experience with unparalleled local expertise to deliver tangible improvements” to potential investors.

A graduate of Queen’s College at Oxford, Ifty Islam has an 18-year ‘Wall Street career’ beginning with BZW Securities and serving as Managing Director at Citigroup, London from 2004-2007 where he was Head of Macro Strategy/Hedge Fund Research. From 1997-2004, he spent 8 years at Deutsche Bank Securities in London and New York, latterly as Managing Director and Chief US Strategist.

Mr. Ifty’s primary objective is “to leverage his long-term relationships with many of the world’s largest investors developed over an 18 year Wall Street career to attract substantial overseas funds to the country”.

AT Capital - "Bullish"

Although Brand Bangladesh has suffered from what Mr. Ifty calls a “perception problem”, his company intends to capitalize on the ‘Bangladesh Paradox’ where despite poverty, political turmoil and over-population, the country is making an economic splash.

Mr. Ifty considers Bangladesh’s dense population a boon rather than a bane. “With a young dynamic population, the appropriate investment and training can offer a substantial platform for outsourcing and off shoring”, he told DS.

“With export diversification from the current reliance on textiles, into a broader range of offshore manufacturing production, Bangladesh economy is growing sustainably at 8% rather than 5-6 per cent”, Mr. Ifty told DS.

AT Capital’s new Investment Funds

“We intend to invest in existing businesses with a strong domestic or export presence”, Mr. Ifty said confidently.

Elaborating further he said that the best risk-return opportunity is to establish new businesses potentially with foreign joint venture partners in sectors with substantial growth opportunities where Bangladesh has lagged behind many of its regional peers.

IT and pharmaceuticals are the two sectors which Mr. Ifty feels lag behind in comparison to other sectors like textiles where merchandise export constitutes 80% of Bangladesh’s total export.

Mr. Ify said that in 2008, AT Capital will launch two funds aimed at overseas investors looking to gain exposure to the substantial return opportunities in Bangladesh. The AT Capital Bangladesh Strategic Opportunities Fund will invest in non-publicly listed companies and the AT Capital Market Opportunities Fund will invest in equities listed on the Dhaka and Chittagong Stock Exchanges.

In 2009, the company aims to launch two funds Viz. Bangladesh Infrastructure and Real Estate funds.

In addition, dedicated mutual fund products will also be developed to allow Non-Resident Bangladeshi retail investors to gain exposure to private equity, the stock market, infrastructure, and real estate investments in Bangladesh.

The objective of the private equity fund will be to make $ 0.5 million - $ 10 million investments in non-listed companies where the fund will aim to establish a controlling stake either by itself or in syndicate with other private equity investors.

As for the stock market, AT Capital will make investments in the Dhaka Stock Exchange. The market capitalization of the stock exchange currently stands at $11.3 billion, representing approximately 18% of 2006 GDP. The Bangladesh stock market is expected to increase in size in 2008 by over $5 billion with key Telecoms companies and State Owned companies expected to enter the market.

Mr. Ifty said that despite political instability, things were looking up. “Political instability”, he said, “is a concern but should lift after the next elections”.

“I think investors will be encouraged by the anti-corruption drive recently”, he emphasized.

“More fundamentally”, he elaborated, “there should be some greater clarity after December 2008 when global investors can focus on the fundamentals”.

“Political risk in EM (Equity Markets) is not a total surprise”.

Why Bangladesh?

Sharing his thoughts on why Bangladesh is an attractive investment destination, Mr. Islam listed six important reasons:

1. Demographics: A young and dynamic population of almost 150 million with extremely competitive labour costs across a broad range of sectors. Good standards of English literacy and a strong entrepreneurial ethic.
2. Global Competitiveness: Competition in textiles can be replicated in other industries with many untapped investment opportunities in new industries such as outsourcing and pharmaceuticals.
3. Investor-Friendly Regulation: An investor friendly regulatory environment and the potential for rapid development of local capital markets.
4. Natural Resources: Large natural resources in natural gas and coal and enormous investment demand for infrastructure projects across all sub-sectors.
5. Proximity: Adjacency to India and China in the heart of Asia.
6. Non-Resident Bangladeshi Community: Substantial opportunities to attract both financial and intellectual capital investment from a large non-resident Bangladeshi community.

Social reform is the first step in development of any country. The pace of social reform and empowerment of women in Bangladesh have been rightly termed as “outstanding modern miracles” of an emerging ‘Asian Tiger’.

As M.J. Akbar put it: Women are being empowered with jobs, with credit, with ownership through housing schemes; it is no longer the man who gets everything in the name of welfare. The NGOs are the vanguard of this vast churning that is slowly but surely lifting a nation once dismissed as a basket case towards a level of pride”.

dinarstandard (http://dinarstandard.com/intraoic/BuoyantBangladesh030308.htm)

Thanks for your informative posts Amar.Seems like Bangladesh is uplifting its image big time with international buyers and investors.

Thanks for your informative posts Amar.Seems like Bangladesh is uplifting its image big time with international buyers and investors.

Your welcome mirza. I am particularly interested in the developments Asian Tiger Capital Partners laid out, seems very promising.

Thanks for the post, Amar, loved to read it. Btw, I've a buddy in Rahimafrooz, I got some pics from him about solar panel usage in rural BD...was wondering where to post them...

Thanks for the post, Amar, loved to read it. Btw, I've a buddy in Rahimafrooz, I got some pics from him about solar panel usage in rural BD...was wondering where to post them...

We could make a new thread in the Adda section Title Everything Else | Pictures

We could make a new thread in the Adda section Title Everything Else | Pictures

Good idea!

Western Union said a few months ago that Remittance could touch 7bn this year,but now Bangladesh Bank expects it to hit 8bn.

800 Million US dollars sent in March alone
Workers’ remittance likely to set new record

Mashiur Rahaman

Inward workers' remittance from across the world is expected to set new record by the end of current fiscal year 2007-08.

On the basis of present inward remittance-earning record, workers from various part of the world have sent comparatively more remittance to their relatives then ever. Remittance earning in the first three quarter (July-March) in 2007-08FY has almost reached up to the full year earning recorded in 2006-07FY.

"During July-March period of current fiscal year, we have earned about $5540 million as workers' remittance. The remittance inflow was around $1200 million higher that the remittance earned in the earlier year during the same period," said an official from Bangladesh Bank.

According to the Bangladesh Bank Remittance earning record, total $5978.5 million was earned during the 2006-07 FY. It was $4361.2 million during the July-March period in 2006-07 FY. As our per quarter remittance earning showing over $300 million growth during the last three quarter in 2007-08 FY, we are optimistic to forecast our probable remittance earning in the fourth quarter (April-June 07-08FY) would be near about $2500 million, said the official of Bangladesh Bank.

"If everything goes normal, the yearend workers' remittance would reach up to $8000 million in 2007-08 fiscal year, setting all time new record," he added. In region-wise remittance inflow, it was reported that the Middle Eastern countries remained on the top as a source of employment for Bangladeshi workers. Total $3449 million was earned from the region during July-March period of current fiscal year. It was $711 million higher than the earning recorded during the same period in the previous financial year.

In 2006-07 FY, workers' remittance from the Gulf Region was recorded $3730 million.

Country wise, Saudi Arabia still on the top for remittance earning for Bangladeshi workers, recorded about $1459 million earning during the first three quarter (July-March) in current fiscal year. It was $147 million higher than the remittance earned during the same period in 2006-07FY.

Yearend remittance in 2006-07 fiscal year from Saudi Arabia was $1735 million, as recorded.

Other countries, which have shown significant growth in remittance earning were UAE, Kuwait, Oman in Middle Eastern region, Singapore and Malaysia in Asia Pacific Region and United Kingdom in Europe and USA from North American region.

Favourable Government policy regarding manpower export and transparent process of money transaction was given the credit for this major achievement.

Source:http://nation.ittefaq.com/issues/2008/05/05/news0934.htm

Bangladesh is showing a brilliant performance in a difficult time
GM Solaiman


May 09, 2008
Bangladesh has been victim of devastating flood twice is last two years. A severe cyclone (Sidr) swept through Bangladesh in November 2007 which left over 10000 dead and half a billion USD damage. Yet economic data shows that Bangladesh in on track in its expected growth. That´s almost like a miracle.

Export Promotion Bureau in Bangladesh reported that Bangladesh exports in March 2008 have increased 21.25 percent from a year earlier to $1.22 billion. In July to March, the first three quarters of the 2007-2008 fiscal year, export earnings grew 12.4 percent to $10.16 billion. Export volume increased by 13.93 percent. Earnings from knitwear garments in the nine-month period grew by 17.34 percent to $3.9 billion. Exports of woven garments increased 7.54 percent to $3.8 billion.

According to the Bangladesh central bank statistics, Bangladesh expatriates sent home a record remittance i.e. US$6.449 billion in the first 10 months of this fiscal year. It got a 31.48 per cent growth over the corresponding period of the last fiscal year. The remittances from Bangladeshi nationals working abroad were estimated at $800.20 million in April 2008. In March, the remittance was $808.72 million USD.

At least 295,155 Bangladeshis found jobs in over 100 countries during the January-April period this year. This is up from 192,725 in the same period last year, according to the Employment and Training (BMET) statistics published by Bangladesh Bureau of Manpower.

A recent report indicated that Banks in Bangladesh is allowed to open small business centers in Bangladesh. It suggested that Bangladeshi expatriates are now increasingly using banking channels to remit money as banks have become efficient in delivering such money. Bangladesh banks recently decide to allow the commercial banks to partner with the non-governmental organizations (NGO) having branches all over the country for disbursement of remittances, particularly in the rural areas.

In another report published in earlier this month, Bangladesh's central bank said that the economy could grow as much as 6.2 percent in the current fiscal year, supported by a rebound in agricultural output following natural disasters and a pick up in exports growth.

In few recent reports on Bangladesh ship-break industries, it has been emphasized that Bangladesh has emerged as a major ship-breaking destination in South Asia. An average of 150-200 vessels is being scrapped in Bangladesh every year according to one report. Bangladesh is getting a competitive edge over its rival in neighboring countries like India and Pakistan. Both India and Pakistan generate around 4,000 tonnes of scrap steel per vessel, while Bangladesh generates 12,000-15,000 tonnes of scrap steel per vessel according to the data provided by the report. A high official of Ship Recycling Industries Association of India have confessed that "Indian Ship-breakers are losing business to Bangladesh" in an interview.


There are some down side as well. Bangladesh has been under serious rice shortage and price has climb as much as 50% in recent months. Bangladesh was seriously affected by world wide rice shortage. Being in the list of top five rice producing countries did not help much. That´s because Bangladesh consumes more rice than it produces since rice is the primary food here. Bangladesh has to import a large sum of rice each year. Hit by natural disaster made this worse. Even living in Silicon Valley, I can feel the heat as my local Costco have run out of rice for weeks. Other shops have also increase the price and put a limit on how much each customer can buy. I can imagine the situation in Bangladesh where 35% people live below dollar a day poverty line. Yet the new harvest season is giving them a hope.

Just yesterday, government of Bangladesh has banned export of rice for six months except aromatic varieties. Official says that the ban came after the Export Promotion Bureau (EPB) revealed last week that a group of exporters have cashed in on the government's free rice export policy by shipping in record amount of the staple this fiscal year.

Bangladesh factory owners and officials have come into rescue by providing subsidized food to low-paid workers. Workers in Bangladesh assumed to spend about 70 percent of their income on food. "The Bangladesh Knitwear Manufacturers and Exporters Association will provide rice at two-thirds of the market price to a quarter of its 800,000 employees", a local official said to a reporter.

The central bank (Bangladesh Bank) reported that Bangladesh's overall import grew by 24. 37 percent during the first nine months of the current fiscal year( July 2007-June 2008) over the same period of the previous fiscal. "The overall import increased during the period due mainly to higher import of essential items including food grains, industrial raw materials and petroleum products to meet the domestic demand," a senior official of the Bangladesh Bank have said to a news reporter.

Looking over both pros and cons from the reports coming from Bangladesh, it seems that Bangladesh have been passing difficult times. But at the same time all economic data pointers are suggesting that the overall growth is marching forward in full swing. If only its political leaders now realize the opportunity that lie ahead, and abandon the path of corruption and instability like strike, Bangladesh should embrace a promising future. The real question is, will they realize it and come clean?

http://www.americanchronicle.com/articles/60941

^^ hahaha :lol: this is the first positive article published by americanchronicle.com. Sunita Paul and couple of Bangladeshis themselves write some despicable and fabricated stories about BD in there.

I'm not going to argue with the content -- his view was well -expressed. However a little once-over in regard to writing style before publishing would have been nice.

Seems like anyone with an intent can write here (Mr. Sulaiman does not seem to be a paid journalist). If so -- we can all start writing positive news about Bangladesh in influential newspapers like this.

Bangladesh's lobbying in the US can be given a boost by written feature-pieces portraying the news that otehrwise goes unheard.

^^ hahaha :lol: this is the first positive article published by americanchronicle.com. Sunita Paul and couple of Bangladeshis themselves write some despicable and fabricated stories about BD in there.

Who is this Sunita Paul and what she's got against us? I read a write up by Farida Majid on NFB where she derided this Ms Paul. This is the second time, I've come across the name.

^^ You will see that see has written the same bs, lies and fabrication over and over again about Bangladesh on numerous websites. And I don't know why she is so "dedicated" about writing about Bangladesh ALL the time.

Some non-resident Indians and Bangladeshi folks in the US have a hobby of 'feeling politically magnanimous' -- usually at weekend dinner parties and get togethers. In 'shoja Bangla' this is called 'Raja Uzeer mara'. They sit in their over-stuffed sofas -- whining and bitching about how bad this or that is in Bangladesh. This whining usually occurs right after dinner and with the accompaniment of 'cha'.

Looks like Sunita Paul has a similar hobby -- judging by her writings. Sitting some fifteen thousand miles away -- what change does she hope to bring in Bangladesh with her wordy criticism of who stole how many crores? She opened up this idealistic website (looks like her personal website (http://www.asiantribune.com/index.php?q=node/427))
where she talks about how corrupt Bangladesh is.

True -- Bangladesh may be corrupt -- but sitting in San Diego bitching about it is going to do little if anything. So -- my verdict is that she is doing it to paint Bangladesh in a "Zihadi" light. Note how cleverly all countries are described as if this is some do-gooder organization -- while if you dig a little deeper you'll see not much material except 'how bad the situation in Bangladesh is'.

If she really wanted to do good she would've come to Bangladesh and opened up an NGO or some type of 'home for orphans'.

I think she'd do well to give up this whining and engage in some productive endeavor like the rest of us.

Some non-resident Indians and Bangladeshi folks in the US have a hobby of 'feeling politically magnanimous' -- usually at weekend dinner parties and get togethers. In 'shoja Bangla' this is called 'Raja Uzeer mara'. They sit in their over-stuffed sofas -- whining and bitching about how bad this or that is in Bangladesh. This whining usually occurs right after dinner and with the accompaniment of 'cha'.

Looks like Sunita Paul has a similar hobby -- judging by her writings. Sitting some fifteen thousand miles away -- what change does she hope to bring in Bangladesh with her wordy criticism of who stole how many crores? She opened up this idealistic website (looks like her personal website (http://www.asiantribune.com/index.php?q=node/427))
where she talks about how corrupt Bangladesh is.

True -- Bangladesh may be corrupt -- but sitting in San Diego bitching about it is going to do little if anything. So -- my verdict is that she is doing it to paint Bangladesh in a "Zihadi" light. Note how cleverly all countries are described as if this is some do-gooder organization -- while if you dig a little deeper you'll see not much material except 'how bad the situation in Bangladesh is'.

If she really wanted to do good she would've come to Bangladesh and opened up an NGO or some type of 'home for orphans'.

I think she'd do well to give up this whining and engage in some productive endeavor like the rest of us.

Did Sunita Pal morph into Sunita Paul? Is she from Bangladesh or India? Do you recall another person by the name of Subrata Bain who used to constantly bad mouth Bangladesh as to how Hindus are killed and their properties consficated to this day? Then there's this Andy Mukherjee. I wonder, don't these people have a life?

Did Sunita Pal morph into Sunita Paul? Is she from Bangladesh or India? Do you recall another person by the name of Subrata Bain who used to constantly bad mouth Bangladesh as to how Hindus are killed and their properties consficated to this day? Then there's this Andy Mukherjee. I wonder, don't these people have a life?
naw dem niqqas be high on dem bihari sheet knaw mean

I'm aware of some of these groups. Just a few handfull - but they know how to draw attention.

I think one can safely ignore these folks -- useless badmouthing of Bangladesh only harms our country.

While a little on the conspiratorial vein -- I found the following article (http://www.bangladesh-web.com/view.php?hidRecord=199363) pretty funny and sort of apt.

I think one can safely ignore these folks -- useless badmouthing of Bangladesh only harms our country.

While a little on the conspiratorial vein -- I found the following article (http://www.bangladesh-web.com/view.php?hidRecord=199363) pretty funny and sort of apt.

Quite amusing. As I see it the problem is that the Indians who count e.g. politicians, (big) business, bureaucrats, as well as the media, are beginning to appear like the Americans ... they are now over confident about their achievements and success in many spheres that makes them behave with arrogrance. A condescending big bully with selfish designs.

^^ Well thats the model that all large counties seem to follow. Russia, China, Brazil and to some extant Australia. This is not a new or recent phenomena.

^^ Well thats the model that all large counties seem to follow. Russia, China, Brazil and to some extant Australia. This is not a new or recent phenomena.

I don't remember who said, "what we learn from history is that we learn nothing from history" or something to that effect. While it is nearly impossible to comprehend the possibility of all these "successful" countries to ultimately face extinction the way the Roman Empire did, I am quite certain that history will repeat itself. One of the ways to perpetuate a continuous global dvelopment and progress would be through elimination of hegemony.

I don't remember who said, "what we learn from history is that we learn nothing from history" or something to that effect. While it is nearly impossible to comprehend the possibility of all these "successful" countries to ultimately face extinction the way the Roman Empire did, I am quite certain that history will repeat itself. One of the ways to perpetuate a continuous global dvelopment and progress would be through elimination of hegemony.

Hehehe, Don't hold your breath Mr. Towhid Islam cause thats not happening any time soon.

By the way the quote "We learn from history that we learn nothing from history." - George Bernard Shaw

Hehehe, Don't hold your breath Mr. Towhid Islam cause thats not happening any time soon.

By the way the quote "We learn from history that we learn nothing from history." - George Bernard Shaw

Hey, I fully recognize that. It is not going to happen for many generations to come, but it will eventually, if they continue to walk in the shoes of the bygone Romans.

http://clip2net.com/clip/m7984/1211016169-clip-104kb.jpg

http://clip2net.com/clip/m7984/1211016204-clip-95kb.jpg

http://clip2net.com/clip/m7984/1211016256-clip-134kb.jpg

Tourism industry can contribute 4.0pc to GDP by 2018 if infrastructure developed

Naim-Ul-Karim

Bangladesh's tourism industry can contribute around 4.0 per cent or over $ 6.39 billion to the country's Gross Domestic Product (GDP) by 2018 if the government develops infrastructure to woo more local and foreign travellers, said a report.

Civil aviation and tourism secretary Syed Mohamad Jubaer said the government has already taken steps to make tourism industry one of the key earning sources for the country.

"We have launched a project in collaboration with the Asian Development Bank (ADB) for improvement of infrastructures in a number of tourism spots," he said.

A report of the World Travel Tourism Council (WTTC), posted in its website recently, said Bangladesh travel and tourism economy is ranked number 94 in absolute size worldwide, 170 in relative contribution to national economies and 31 in long-term (10-year) growth.

It said the contribution of the Bangladesh travel and tourism industry to its GDP will stand at around 3.9 per cent or over $2.9 billion in 2008.

According to WTTC estimate, Bangladesh's tourism industry contributed around 1.5 per cent or around $998.2 million to the country's GDP in 2007.

The WTTC's report, prepared in association with a global management consulting, technology services and outsourcing company, said: "The real GDP growth for T&T (travel and tourism) economy is expected to be 6.2 per cent in 2008 and to average 5.5 per cent per annum over the coming 10 years."

It is possible to achieve the growth if the government provides required policy support to the operators and develop infrastructure, sector insiders said referring to the WTTC report.

Anwar Parvez, president of Tour Operators Association of Bangladesh (TOAB), underscored the need for liberalisation of tourism policy, establishment of separate special zones for local and foreign tourists with development of infrastructure.

"There is scope for attracting local tourists as well as foreign tourists to visit the country's internationally reputed tourism spots," he said.

Civil Aviation secretary said steps are underway for establishment of National Tourism Authority to facilitate the private sector tour operators to attract more local and foreign tourists.

"Through popularising domestic tourism we can attract more foreign tourists in the country, which will boost our export earning," Abul Kalam, manager of A-One Tourism, said.

According to WTTC, Bangladesh's travel and tourism earned $539 million or 3.8 per cent of the country's total exports worth 12.178 billion in fiscal 2006-07.

It said export earning from local and international visitors and tourism goods are expected to generate 3.4 per cent or $543.7 million of total exports in 2008, growing to 1099.3 million (5.3 per cent) of total external trade in 2018.

Apart from this, the report of the WTTC council said the contribution of the sector to employment is expected to rise from over 2,065,000 in 2008, 3.1 per cent of total employment or one in every 32.0 jobs to 2,791,000 jobs, 3.2 per cent of total employment or one in every 31.7 jobs by 2018.

According to the WTTC estimate, Bangladesh Travel and Tourism economy created 2,024,000 jobs in 2007.

http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=33885

Bangladesh economy can grow 7pc or more: ADB
Star Business Report


The Asian Development Bank (ADB) country director in Dhaka has said Bangladesh has the potential to achieve 7 percent or more economic growth a year, despite challenges of political uncertainty, weak infrastructure and vulnerability to natural disaster.

"Political stability is fundamental for economic growth and the economy will not be sustained without a stable political base," Hua Du told a press briefing yesterday while releasing the Bangladesh Quarterly Economic Update March 2008.

Hua Du is leaving next month after ending her four-year tenure as the ADB country director in Bangladesh.

The Quarterly report identified weak infrastructure, including serious power shortages, as serious obstacle to the country's economic growth apart from political uncertainty leading up to the December 2008 elections. Oil and food grain prices increase in the international market also posed significant risks, it said.

The report said Bangladesh's GDP is expected to grow by 6 percent in FY2008, down from 6.5 percent in FY2007 because of moderate agriculture growth following the extensive flooding and cyclone.

It said fear and uncertainty among the investor community, apparently created by the government's comprehensive anticorruption drives, have started to ease.

The ADB quarterly said a major global report (by the PricewaterhouseCoopers) identified 13 emerging economies, including Argentina, Bangladesh, Egypt, Iran, Malaysia, Nigeria, Pakistan, the Philippines, Poland, Saudi Arabia, South Africa, Thailand and Vietnam, as having the potential to grow faster.

The report concludes that long-term prospects of these countries are upbeat in addition to major emerging economies including Brazil, India, Indonesia, Mexico, China, Russia and Turkey.

The global centre for economic activity is already shifting to India, China and other large emerging economies, and Bangladesh must make all efforts to capitalise on its comparative advantages to benefit from this global paradigm shift, said the report.

On food price shocks in Bangladesh, the ADB report said market surplus of available food grains is estimated at 3.6 million tonnes in Fy2008.

The ADB observed that although domestic food grain prices are expected to moderate somewhat, high food prices are expected to persist in the foreseeable future. "Despite a bumper boro crop, risks of a supply shortage are possible if the next aman and boro crops are affected by natural disasters or other factors," it said.

"In that case, the shortfall will have to be offset by buffer stocks through higher imports," the report said.

Rapidly growing prices of food, mainly rice, seriously curtailed the purchasing capacity of the people living below the poverty line and the government employees, industrial workers and others with fixed income.

The focus of policy responses should be on targeted interventions to protect the poor and vulnerable in the face of rising food prices, the report remarked.

When asked about her experiences in Bangladesh in the last four years, Hua Du said Bangladesh people's hard work, friendly attitude and hospitability attracted her most.

"I have also noticed people's resilience here, specially the way they recovered from natural disaster is simply remarkable," she said.

She also suggested the government focus on governance issues for country's development. "Governance is also related to the improvement in efficiency," she added.

http://www.thedailystar.net/story.php?nid=37173

bangladesh can grow at 20% but the thing this is by theory a lot of things are possible but when it comes down to the main thing things can change drastically

Next budget to focus on agriculture, power, rural infrastructure
Finance adviser says
Staff Correspondent

Finance Adviser Mirza Azizul Islam yesterday said the next budget would be somewhere near Tk one lakh crore with concentration on agriculture, power and rural infrastructure.

He said, "Size of the budget for fiscal year 2008-09 will be a little more or less than Tk 99,500 crore. The figure has yet to be finalised as we are still working on that.”

Finance ministry sources said the exact size would be known once the government settles how much to spend in subsidies for different sectors.

Aziz said the budget would be announced on June 8 or 9 [Sunday or Monday]. The schedule is different than other years' as the government usually announces its annual financial plan on Thursday.

The finance adviser said they believe the deficit this time would remain within 5 percent of GPD.

He was replying to queries from reporters after attending a seminar organised by Privatisation Commission.

The finance adviser said size of the Annual Development Programme (ADB) in the upcoming budget would be Tk 25,500 crore.

In the current budget, it is Tk 22, 500 crore revised from original Tk 26,500 crore. The budget for the running fiscal stands at Tk 79,614 crore excluding Tk 7,523 crore liabilities of Bangladesh Petroleum Corporation.

About the government's budgetary plans, he said it would continue subsidies for fertiliser and petroleum products.

Sources said size of the budget would increase mainly because of the government's decision to keep subsidising fertiliser, petroleum products and food.

The finance adviser said the current year's revised budget would rise significantly from the actual allocation due to growing subsidies on petroleum products and fertiliser, and swelling cost of food imports.

Sources said the current fiscal year's revised budget would be over Tk 93,000 crore.

UNB adds: Mirza Azizul Islam yesterday said privatisation needs to be carried out with caution and in a well-thought out manner so that employment is not affected in any away and no room is left for monopoly.

“One of the complaints I frequently hear from different quarters and economists is that the enterprises are not operating [well] after privatisation,” he said addressing a seminar at a city hotel.

"Once an industry is set up, it has to be permanent,” he said adding, “Privatisation is not a panacea. We'll have to go for privatisation with caution.”

Privatisation Commission organised the daylong seminar, titled 'Privatisation of SoEs in Bangladesh: Challenges and Opportunities', with its chairman Mohammed Abu Solaiman Chowdhury in the chair.

LGRD and Cooperatives, Jute and Textile Adviser Anwarul Iqbal and Special Assistant to Chief Adviser for Industries Mahbub Jamil also addressed the inaugural session.

The finance adviser stressed the need for determining priority sectors for privatisation and careful sequencing of the sectors selected, followed by the impact assessment of privatisation.

He listed the problems that are making the SoEs inefficient. He said the lack of practice in rewarding the good performers and punishing the bad ones are inevitably making an enterprise count losses.

Consequently, he added the government enterprises incur huge losses and are forced to go for deficit financing as well as increase taxes.

“This is an issue that is hardly realised in Bangladesh. Perhaps, this is the reason why there are arguments against privatisation,” said the finance adviser.

He also pointed out that the richer section of the society is the main beneficiaries of government subsidies to petroleum and fertiliser.

Tax revenue target of Tk 54270cr likely in next budget

Nazmul Ahsan

The budget for the 2008–09 financial year is likely to set an ambitious tax revenue income target of Tk 54,270 crore, up by Tk 10,420 crore or about 24 per cent on the target of the ongoing financial year, finance ministry officials said.

The duties and taxes stand a slim chance to be increased on a wholesale basis, but there might be adjustment of duties on raw materials and strict enforcement of tax regulations, the officials said.

The highest duty slab, now 25 per cent, would not be reduced in the next budget despite pressure from multilateral lending agencies for slashing the highest duty slab to 20 per cent, they said.

More than 50 industrial raw materials now subject to 15 per cent import duty will see the duty reduced to 10 per cent, tax officials said. Manufacturing industries such as textile, assembling and agro-processing could be benefited from the planned fiscal measures.

The revenue officials have, meanwhile, identified about 30 to 40 items, now enjoying 15 per cent import duty in the name of intermediate goods, will see 25 per cent duty in the next budget as they are finished goods, the sources said.

They, however, declined to name the items on which higher duties are going to be imposed. ‘Justice to industries will be ensured by rationalising duty imposed on their import items,’ a high revenue board official told New Age.

The taxmen are expecting higher growth in revenue income by the strict enforcement of regulations and containing tax cancellation. The tax incentive to be offered in the budget for whitening illegal money is expected to fetch about Tk 800 crore, taxmen hoped.

The original tax revenue income set for the ongoing financial year was Tk 43,850 crore which has recently been revised to Tk 45,970 crore because of a robust growth in revenue earnings in the first 10 months of the financial year.

The income generated in the July-April period of the financial year was about Tk 35,000 crore, about 25 per cent more than the income of the corresponding period in the past financial year, the officials said.

Sources in the revenue board said the environment of the next financial year could not be as conducive as it has been in the ongoing financial year because of anticipated anti-tax evasion drives. ‘I am not optimistic about achieving a 24 per cent revenue growth in a democratic environment where much political pressure is notice in favour of tax evaders,’ a high revenue board official told New Age.

Things could be favourable if good sense would prevail on business communities and their business activities were expanded in terms of industrialisation and import, he hoped.

Bangladesh second in S Asia in terms of receiving remittance

FE Report

Bangladesh emerged second among the South Asian countries in terms of remittances received with US$1,222 remitted by each worker on an average in 2007, said a World Bank report.

According to the World Bank remittance fact book 2007, Bangladesh is just $8 behind the South Asian leader Sri Lanka which received $1,230 remittances per worker.

Bangladesh received $6.48 billion from its 5.3 million expatriate living in different parts of the world compared to inflow of $1.50 billion remittances to Sri Lanka by 1.2 million expatriate islanders.

Bangladesh is, however, much ahead of two other major manpower exporters-India and Pakistan- in the region in terms of receiving per worker remittances.

India received $688 remittances per worker although it became the top remittance receiving country on earth in 2007. It received $27.20 billion sent by 40.0 million Indians.

Pakistan that received $5.50 billion remittance from a 7.5 million workforce outside the country recorded $733 remittances per worker last year.

http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=34201

10 Billion Dollars remittance was a dream even 2 to 3 years ago,but now its reality:cheers:

900,000 workers to go abroad

Sunday May 25 2008 10:30:40 AM BDT


The country is expected to send 900,000 workers abroad this year and remittances would increase to Tk 70,000 crore ($10 billion).A total of 3,52,249 workers have already received permission to go abroad till May 20, which is 56 per cent more than the same period of last year. In 2007, a total of 2,24,725 got permission, a spokesperson for the Ministry of Expatriates Welfare said.(The New age BD)

This was possible after the present government undertook a seven-point long-term plan for exploring oversees jobs.

As part of the plan, the government initiated a programme to search for employment scope abroad and widening the present labour market. Recently, the country exported 60 workers to Russia.

A two-member delegation will visit Russia soon to explore Bangladesh’s manpower export market in the European countries, including Russia.

The delegation comprising joint secretary of the Expatriates Welfare Ministry Monsur Raja Chowdhury and BAIRA’s president-elect Golam Mustafa will visit Vadivstock this month to have ideas about labour market in Russia and employment scope there.

They will join a forum on manpower export on May 29-30, the spokesperson said.

At the forum, they will discuss the issue of employment of a large number of skilled and non-skilled labourers in hotel, restaurant and road infrastructure sectors till 2012.

Besides, they will gain ideas about the nature of Russia’s labour market, sector-wise demand for labourers and facilities for workers there, the spokesperson said quoting the Bangladesh mission in Moscow.

Foreign adviser Iftekhar Ahmed Chowdhury last year directed the Bangladesh missions abroad for preparing reports on possible labour markets in the respective countries.

After receiving the reports, the syllabus of 37 technical training centres under the Bureau of Manpower Export Training was updated. The principals of the TTCs have been invited to join a training in Dhaka on Sunday for giving them necessary guidelines about the syllabus.

Besides, necessary directives have been given to the technical institutes under the ministries of education, health and youth and sports to conduct training programmes under the updated syllabus.

The foreign adviser recently said the process of widening the job market would continue.


Source:http://www.bangladesh-web.com/view.php?hidRecord=201284

Remittances are not good healthy signs for strong economy. You must have indigenous industry, service sektor and production. Raise exports base.

Remittances are not good healthy signs for strong economy. You must have indigenous industry, service sektor and production. Raise exports base.

I agree with you regarding the need to develop service sector and increase exports.....Bangladesh service sector's contribution is about 57%, much larger than both manufacturing and primary sectors.Our exports are expected to be 18 to 20 Billion US dollars next year..which was just 10 Billion US dollars only 2 years ago.However,Remittances also play a vital role in the economic growth of the country as Bangladesh is among the top remittance receiving countries in the world,and is strengthening its position even more with time.

Remittances are not good healthy signs for strong economy. You must have indigenous industry, service sektor and production. Raise exports base.

Can you explain how you came about that conclusion? Remittances mostly goes toward real estate investment in Bangladesh which employs millions of workers. And this has a large backward manufacturing linkage in cement, mining, and Steel sector. Saying Remittances are not healthy for an economy is like saying having large natural resources (ex. oil) actually depresses the manufacturing sector, which is obviously not the case.

I dont understand the reason behind comparing bangladesh economy with its big counterpart India. In each pages u will find the name of India repeating more than 3 times. LOOk , India is a veru huge country with 10 times bigger landmass than bangladesh. More important thing is that the overall development activities going on in both countries do differs a lot .

I dont understand the reason behind comparing bangladesh economy with its big counterpart India. In each pages u will find the name of India repeating more than 3 times. LOOk , India is a veru huge country with 10 times bigger landmass than bangladesh. More important thing is that the overall development activities going on in both countries do differs a lot .

It's true that India is a much bigger country and it's priorities are different but at the same time there are certain econmic factors that are common among all South asian countries and can be compared.

Japan or South Korea is probably 30 times smaller than China, but there is always a comparison among them in East Asia aswell..

I dont understand the reason behind comparing bangladesh economy with its big counterpart India. In each pages u will find the name of India repeating more than 3 times. LOOk , India is a veru huge country with 10 times bigger landmass than bangladesh. More important thing is that the overall development activities going on in both countries do differs a lot .

There is a simple solution to your problem.....Don't visit this thread if it bothers you so much. :bash:

Remittance

http://clip2net.com/clip/m7984/1211870390-clip-49kb.jpg

With the current trend, its possible to hit $8 Billion Dollar mark this fiscal year. :)

I appreciate that and let these countries work together for a better tomarrow!!

Cheers


It's true that India is a much bigger country and it's priorities are different but at the same time there are certain econmic factors that are common among all South asian countries and can be compared.

Japan or South Korea is probably 30 times smaller than China, but there is always a comparison among them in East Asia aswell..