I agree, airconditioner is definitely a luxury item at the context of Bangladesh... I haven't looked at the Budget in details yet, but couple of concerns I had after glancing over it:

1) There is a huge deficit and the government is planning to cover it using bank loans. This will have "crowding out" affect... That is, the cost of capital will increase for private enterprises since there is only a limited amount of capital available in the country and if government takes majority of it the remaining amount will be costlier. This will discourage private financing of new industries.

2) Budget allocation for the production of electricity has been decreased compared to last year. This will hamper industrial development since electricity is one of the most vital element. The government is talking about Nuclear power on one hand while decreashing funding on the other. Already, Bangladesh has one of the lowest per capita consumption of electrcity in South Asia, so we need drastic effort to change things around.

Too often the government blame individuals for wasting electricity by having too much lighting, keeping stores open late night etc. But I feel that consumption is not necessarily bad since it increases money flow in the economy and generates job. If people can afford to switch on aircondition, let them do it. The government is getting money for all the extra electrcity use. The electricity production needs to be increased, that's the main issue..


I don't know if there will be a crowding out effect in Bangladesh. The banks have excess liquidity, and there has been falling domestic investment, so it might be helpful if the government actually borrows some money from the banks.

However, I do agree that the government should not blame individuals for wasting electricity. They should focus more on production of electricity by public-private partnership, and not penalize consumption of electricity. Electricity production should be a priority for the government now.

I don't know if there will be a crowding out effect in Bangladesh. The banks have excess liquidity, and there has been falling domestic investment, so it might be helpful if the government actually borrows some money from the banks.

I don't have enough information on the capital market in Bangladesh, but usually if there is excess liquidity interest rate on loans are low. But Bangladesh has one of the highest interest rate for capital which makes me think that we are short on cash.

The other reason could be, banks are sitting on cash but not willing to lend as they do not have faith/trust on the lenders/investors based on high default rate. This is not good for the economy then, since cash that doesn't circulate is useless. Eventually good rule of law will be needed to bring back trust and increase money flow..

I don't have enough information on the capital market in Bangladesh, but usually if there is excess liquidity interest rate on loans are low. But Bangladesh has one of the highest interest rate for capital which makes me think that we are short on cash.

The other reason could be, banks are sitting on cash but not willing to lend as they do not have faith/trust on the lenders/investors based on high default rate. This is not good for the economy then, since cash that doesn't circulate is useless. Eventually good rule of law will be needed to bring back trust and increase money flow..
they only lend to people with connections, they give profiteering a whole new meaning.

they only lend to people with connections, they give profiteering a whole new meaning.

That may be the case with NCBs not private and international banks? If they have the same practice (culture) then they must not be doing well in Bangladesh.

I don't have enough information on the capital market in Bangladesh, but usually if there is excess liquidity interest rate on loans are low. But Bangladesh has one of the highest interest rate for capital which makes me think that we are short on cash.

The other reason could be, banks are sitting on cash but not willing to lend as they do not have faith/trust on the lenders/investors based on high default rate. This is not good for the economy then, since cash that doesn't circulate is useless. Eventually good rule of law will be needed to bring back trust and increase money flow..

I agree. It might be that the banks do not trust the investors. As Dope said, they only lend to people with connections. In one newspaper report, I read a while back that there was about 11,000 crore (in dollars about 1.6 billion) of excess liquidity in the banking sector. That is not good for the country. I think that the banks should be lend more to the SMEs to boost the economy.

I could understand classification of air conditioner as luxury item, in context of a poor country, but not refridgerators. Definition of nonluxury item should be based on what is absolutely necessary for modern life, not based merely on what the average person in the nation can afford. By that definition...which is what they seem to be going by...we could classify even a bed or sofa as luxury item. Current definition is simply fleecing middle class, as dope has said.

That may be the case with NCBs not private and international banks? If they have the same practice (culture) then they must not be doing well in Bangladesh.
who do you think qualifies for their loans and all? their clients are all the big telecom companies and multi nationals in bd and the people in epzs citi in bangladesh doesnt even do consumer banking just corporate and offshore banking.

there arent many international big banks in bd, just citi, hsbc and standard chartered.

I don't have enough information on the capital market in Bangladesh, but usually if there is excess liquidity interest rate on loans are low. But Bangladesh has one of the highest interest rate for capital which makes me think that we are short on cash.

The other reason could be, banks are sitting on cash but not willing to lend as they do not have faith/trust on the lenders/investors based on high default rate. This is not good for the economy then, since cash that doesn't circulate is useless. Eventually good rule of law will be needed to bring back trust and increase money flow..

Under normal times your don't have interest rates below the inflation rate. So BD's inflation rate is somewhere 6-7% add in the relatively higher default rate in BD and then you see BD's interest rate is not really high and it reflects the fundamentals. Plus borrowing from investors via bonds (developed countries) and borrowing money from banks (Bangladesh) who in buys treasury bonds have more or less the same effect on crowding out.

I agree. It might be that the banks do not trust the investors. As Dope said, they only lend to people with connections. In one newspaper report, I read a while back that there was about 11,000 crore (in dollars about 1.6 billion) of excess liquidity in the banking sector. That is not good for the country. I think that the banks should be lend more to the SMEs to boost the economy.
well they do but which sme do you think can afford to pay back loans at 13-15% interest

2) Budget allocation for the production of electricity has been decreased compared to last year. This will hamper industrial development since electricity is one of the most vital element. The government is talking about Nuclear power on one hand while decreashing funding on the other. Already, Bangladesh has one of the lowest per capita consumption of electrcity in South Asia, so we need drastic effort to change things around.


I think the new PPP mechanism deal with this problem. Also the 09-10 budget actually allocates 48% more than the revised 08-09 for the power sector.

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I think the new PPP mechanism deal with this problem.
i doubt they'd go private with nuclear, too much international pressure unless its some western corporation

i doubt they'd go private with nuclear, too much international pressure unless its some western corporation

Most likely not. But loads of firms are fervently enthusiastic to invest in coal power plants, since they would be killing 2 birds with one stone. Making money from the power plant and to increase power production for guarantee supply to their own industrial units.

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BTW, All the budget documents are located here http://www.mof.gov.bd/en/index.php?option=com_content&task=view&id=148

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Budget frustrates corporate leaders
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Sajjadur RahmanCorporate houses have vented frustration over the finance minister's 'no' to reduce their tax, which they claimed is the highest in the world.

Banks, insurance, leasing and finance companies have long been demanding a cut in the corporate tax rate from the existing 45 percent.

The demand was raised afresh this year because of erosion in income of corporate sector, especially of the banks, in the face of global recession fallout.

“Our demand has totally been ignored in the proposed budget. We are concerned about the fate of banking business in the coming years,” said Nazrul Islam Mazumder, chairman of Bangladesh Association of Banks (BAB), a forum of bank owners.

Top bankers said the ongoing economic slowdown has caused a sharp decline in corporate profits, which led to a depression in the capital market and lowered corporate lending by banks.

“This downward trend has resulted in deferment of industrial investment that in turn will lead to lesser employment generation,” a managing director of a private bank said, requesting not to be named.

The corporate tax rate in India is 30 percent, while it is 35 percent in Pakistan and Sri Lanka.

The global average corporate tax rate was 26.8 percent in 2007. The regional rates almost match the average corporate tax rate of European Union's 24 percent, OECD countries' 27.8 percent, the Asia Pacific's 30 percent, and Latin America's 28 percent.

The Bangladesh's rate is by far higher than the regional and global averages.

The banks, insurance, leasing and finance companies expected that the corporate tax would be reduced to 40 percent, with experts arguing that such a move would revive primary capital market and encourage banks and other financial entities to lend more to industries to help absorb external shocks.

Mazumder, also the chairman of EXIM Bank, said: “I expected at least a 5 percentage-point cut in corporate tax in the proposed budget.”

During a pre-budget meeting with the BAB and top bankers, Finance Minister AMA Muhith assured them of considering the issue actively, according to media reports.

The banks are under a severe pressure to reduce their lending rate, which the government and the private sector people said is the highest in the region. Recently the central bank capped the lending rate for certain

http://www.thedailystar.net/newDesign/news-details.php?nid=92448

why dont they start merging?

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Four Chittagong groups roll out country's largest HR coil plant

Mushir Ahmed

Four Chittagong-based conglomerates have joined hands to set up a US$300 million hot-rolled coil factory from October to complete the value chain in country's steel industry, officials said Saturday.

The investment by PHP Group, S Alam, Namrin International and KDS would be the largest in Bangladesh's history, with bankers saying the deal is expected to create a record in syndicated loan.

The move by the four groups come after their deal with India's $15 billion Essar Group fell through early this year as the latter insisted on securing gas connection to set up their proposed $550 million HR coil plant.

HR coil is an intermediate steel product, used for producing Cold-Rolled (CR) coils --- also another intermediate steel product that is melted to make Corrugated Iron (CI) Sheet, popularly known as roof tin, and drum and other steel sheets .

PHP, S Alam and KDS have CR coil plants in Chittagong and they import HR coil from Japan, South Korea, India and the Middle East.

Their owners have said setting up a HR Coil plant would complete the "value chain" in the country's steel manufacturing, which would significantly cut cost in all forward linkage industries.

"Only thing we would need is to import iron ores," said Abdus Samad Labu, vice-president of S Alam Group, a key partner of thr proposed venture.

Labu said the four companies have already procured land along the bank of the river Karnaphuli and would start building the plant from October this year.

"Our total investment would be around Tk2000 crore ( nearly $300 million). The plant will go into operation within three years," he said.

"It will produce one million tonnes of HR Coil a year and can meet the entire demand of the country," he said, adding the factory would also manufacture steel plates needed for the booming ship-building industry.

Bankers said their negotiations with the four groups have entered into an advanced stage and a deal --- to be the highest syndicated loan ---- is likely within a couple of months.

The country's previous top syndicated loan deal was worth only $44 million, arranged by a multinational bank for the mobile phone company, AKTEL.

The plant would fulfill a long-cherished dream of local steel manufacturers, who have courted partnerships with foreign groups to see it through for some years.

India's Tata, Essar and Espat International of Vinod and Pramod Mittal in the past five years came up with billion dollars proposals to set up a HR Coil plant in Bangladesh.

Tata wanted to build 2.4 million tonnes capacity two HR Coil plant in the country's north-west, that would have shut the door on local manufacturers for good.

Essar and Espat also tried alone and also in partnerships with local steel manufacturers to set up the capital intensive plant, but backed off due to the worsening gas crisis.

http://www.thefinancialexpress-bd.com/2009/06/14/69749.html

Great news! Steel industry on the private sector.. the country needs such core industries to be developed locally. Also it is satisfying to see that local companies are stepping up to such big scale investment..

Whitening black money
Morally indefensible, seems economically unsound, too


It is not surprising that the budgetary proposal to allow whitening of black money has drawn flak from different quarters. Though the Finance Minister has said, "Politics is the highest art of compromise", critics wonder whether this is not a compromise at the altar of political expediency. It is difficult to see how the economic dividends sought to be derived from the proposed move could actually accrue. The past experience with granting similar extraordinary concession leaves us wondering what gain had accrued to the public exchequer previously so as to justify a recourse to it again. We are in the dark about the extent of money thus recovered and invested in the productive sector through such a move in the past.

According to the proposed provision, black money owners will be able to legalise their undisclosed incomes for the next three years by paying 10 percent tax on the disclosed amount, and by investing the legalised money in the industrial sector, capital market and in purchasing flats.

Our apprehension is, since a three-year period is allowed for disclosing shady incomes, the economy might continue to have a malcontent of black money for two years because the owners could opt to declare their money only in the third year, that too, with no questions asked. It might as well discourage honest taxpayers to pay taxes regularly. Instead, they might like to hold on to their money till the third year to pay taxes at a concession rate of 10 percent. It seems, therefore, that by requiring the genuine businessmen to pay tax at 20 to 25 percent rate and allowing black money holders the concessional rate of 10 percent, the former are given some kind of punishment while the latter get rewarded.
The Metropolitan Chamber of Commerce and Industry (MCCI), a powerful body of businessmen of the country, has suggested that the concession, if at all allowed, should be limited to earnings from legal sources and that investments should be directed to productive sectors only.

By the finance minister's own admission he did not morally support whitening of black money. Why then he veered from the original stand remains a question. He has given his own reasons, but we believe that the budgetary proposal needs to be reviewed and revised on the basis of recommendations pouring in from different think-tanks, expert groups and representative trade and chamber bodies.

http://www.thedailystar.net/newDesign/news-details.php?nid=92406

Forex reserve close to $7.0b for first time

The country's foreign exchange reserve rose close to US$ 7.0 billion mark for the first time due to a slackened private sector investment, causing worry among the central bank executives about a manufacturing setback in the near future, reports UNB.

Bangladesh Bank sources said the forex reserve stood its highest ever level at US$ 6.94 billion at the closing Sunday showing signs that the reserve would cross the US$ 7.0 billion mark within a day or two.

A senior central bank executive said that a slowdown in the private sector investment had contributed to the increase of reserve to that level. But they were worried due to the slackened investment in the private sector, he added.

The slow growth of import of capital machinery and industrial raw materials reflects a declining trend of the private sector investment.

The Bangladesh Bank executive, however, said the price of industrial raw materials declined but not the volume to show less import cost while the trend of capital machinery import was difficult to understand as the importers never declared the actual value.

"Obviously, the slowdown is due to the global recession," he said, replying to a question. He added that the private sector entrepreneurs were in dilemma whether they would invest amid uncertainty of demands for their products in a situation of worldwide slowdown.

Replying to another question, the executive said it would be better to wait for the private sector, which would be more efficient in using the huge reserve than the public sector. "Public sector can also utilise the fund, but it would be less efficient."

He said the sharp drop in the prices of essential commodities and decline in import volumes also helped increase the reserve.

Inflow of foreign remittance through formal channel gave an extra push as the necessity for sending remittance through informal channel like "hundi" diminished due to the global recession, the Bangladesh Bank executive added.

Latest Bangladesh Bank figures shows significant increase in opening of import L/Cs for intermediate goods and machinery for miscellaneous industry during July-April of fiscal 2008-'09 compared to the same period of the preceding year.

But opening of import L/Cs for consumer goods, capital machinery, petroleum and petroleum products, and industrial raw materials declined during the July-April period of fiscal 2008-'09 compared to the same period of the preceding year.

if we compare it to five years back adjusting inflation how much is it?

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^^ good news indeed

Akij Group to branch out into new avenues

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Sajjadur Rahman
Business expansion defines Akij Group's strong presence as a large Bangladeshi conglomerate, a move that runs counter to jitters from global recession.

Starting its journey in a humble way with bidi (traditional cigarette) and jute trading in the 1940s, the group presently boasts of having around 20 entities from tobacco to textile and particle.

Besides expansion, it has now plans to venture into some new businesses such as ceramics, renewable energy and fibreboard.

“We have already finalised selection of machineries and product lines for a tiles project,” said a senior official of Akij Ceramics Ltd.

Located near Valuka in Mymensingh district, the project will cost around Tk 170 crore.

Renewable energy is another front the group is going to focus.

“You can give credit to us as we are the first group in the country who will go for green energy. The setting up of a 12 megawatt bio-mass energy plant is now under process ,” said Sk BashirUddin, managing director of Akij Group.

The capacity of Akij Cement will also be enhanced by almost six times from 600 tonnes to 3,500 tonnes next month, an official said.

Akij Match, the group's another concern which went into production just four years back, has now 60-65 percent market share of the total domestic demand. Beverages have also strong share in the market.

It is a talk everywhere in Bangladesh's corporate circle that Akij is a group that can make anything marketable.

“We want to add more value in life by becoming a trusted and respected brand in Bangladesh,” said Sk Bashir, who took over the helm after the death of his father Sk Akijuddin, the founder of the largest conglomerate in terms of being the highest taxpayer.

Around Tk 2,000 crore tax was paid by the group in 2008, an amount that has been claimed to be the highest-ever by a group of companies in the country.

“We feel proud that a home-grown company pays around four percent of the country's total taxes,” said the boss of Akij Group. It had over Tk 4,000 crore business turnover last year and employs nearly 50,000 employees.

On expansion, BashirUddin said, “We do expand to smoothen the supply of different products we sometimes need internally. ”

He said the group means business and it will continue to do so.

http://www.thedailystar.net/newDesign/news-details.php?nid=94027

Bangladesh's Remittance Inflow Crosses $9.5 Billion Mark
June 29, 2009 11:56 a.m. EST


Siddique Islam - AHN Correspondent
Dhaka, Bangladesh (AHN) - Remittances sent by Bangladeshis working abroad crossed the $9.50 billion mark on June 25, marking a 21 percent growth over the same period of the previous fiscal, officials said Monday.

Inflow of remittance in fiscal 2008-09 (FY09) was a continuation of the trend of last fiscal when it was recorded at $7.91 billion. The growth was 24.52 percent in FY08 over the previous fiscal.

"The amount of remittance in FY09 may reach $9.58 billion by the end of this month," a senior official of the Bangladesh Bank (BB), the country's central bank, told AHN in the capital, Dhaka, preferring anonymity, adding that the existing inflow of remittance is likely to continue in the next fiscal.

"We expect that the flow of inward remittances will positively cross $10 billion in the fiscal 2009-2010," Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed told AHN in Dhaka.

Bangladesh received at total of $9.562 billion until June 25 of this fiscal, which may reach $9.582 billion by the end of FY09 against $7.914 billion in the previous fiscal, the BB officials added.

The remittances from Bangladeshi nationals working abroad were estimated at $791.95 million during the period between June 1 and June 25, according to the central bank statistics, released on Monday.

The country's foreign exchange reserve stood at $7.40 billion on the day, thanks to a robust growth of remittances from the expatriate Bangladeshis, the central bank officials confirmed.


http://www.allheadlinenews.com/articles/7015638089#ixzz0Jq3QcB2X&D

Jute bag exports rise as shopping goes eco-correct

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Kawsar KhanEco-concerns drive demand for biodegradable bags on the global market, giving rise to the exports of shopping jute bags from Bangladesh.

Jute goods makers export around 100,000 shopping bags a month on average to different countries. They hope scope for more shipments will widen next year, as some European countries are set to ban polythene bags in 2010.

"In our products line, shopping jute bags are the most popular among importers as European and American consumers are opting for environment-friendly bags which can be used repeatedly," said Milton Suranjit Ratna, a senior officer of Corr-The Jute Works, the handicraft marketing and exporting trust of Caritas Bangladesh.

Corr-The Jute Works exported over 600,000 jute bags in 2008 mainly to Germany, the Netherlands, Sweden, UK, USA, Canada, Japan, Switzerland, South Korea, and France.

Creation Private Limited, a jute goods maker, exports around 50,000 shopping bags to those destinations a month.

Two years ago, the number of jute bags exported by Bangladesh would not exceed 100,000 annually, said the sector people.

A global initiative for banning environment-unfriendly shopping bags and declaring the year 2009 by the United Nations as International Year of Natural Fibres has fuelled demand for jute bags.

According to media reports, France and Germany will ban the use of non-biodegradable polythene bags next year. Also, the US is looking for a viable alternative to polythene bags.

San Francisco has completely banned plastic bags. Los Angeles will do so in 2010. Also, Washington, D.C.'s city council is set to vote on a five-cent-a-bag tax later this month.

Now the United States uses an estimated 90 billion thin bags a year, with most used to handle produce and groceries.

Achim Steiner, executive director of the UN Environment Programme, has recently called for a ban on polythene bags and said: "Single-use plastic bags which choke marine life should be banned or phased out rapidly everywhere. There is simply zero justification for manufacturing them anymore, anywhere."

The global context has made a multi-billion dollar global shopping bag market, opening up a huge opportunity for the country's golden fibre.

On the potential of jute bag exports from Bangladesh, the sector people viewed that non-perishable polythene bags will go out of market in the years to come, driving demand for Bangladeshi jute bags.

On the other hand, more and more chain shops around the world are phasing out the use of polythene bags in their shops and using bio-friendly natural fibre bags instead.

Ratna said only the UK-based retail chain Tesco requires around 1 million shopping bags -- made of natural fibre -- a month that it now buys from India.

"Tesco had approached us to buy bags but we could not take their order as our bags were costlier than in India," said Rashidul Karim Munna, managing director of Creation Private Limited.

Munna said local bag makers buy jute fabric from the domestic market at higher prices than what foreign importers pay for the same fabric from Bangladesh -- a setback that makes the local industry less competitive than its rival in India, the main importer of jute fabric.

"When we buy jute fabric, the jute mills add the money of export incentive to the cost of fabric as they don't get any incentive when they sell to us," Munna said.

"Unlike in India, jute bag makers in Bangladesh do not get export incentive," he said.

"It is very sad that even after buying raw materials from Bangladesh, India can sell shopping bags at lower prices," he said. A shopping bag sells at $1.

Despite having all the difficulties, however, increasing orders are pushing bag manufacturers to expand their capacity.

"Due to the increased demand we will set up a new bag manufacturing unit in Tongi, which will go into operation next month," said Bertha Gity Baroi, acting director of Corr-The Jute Works.

The sector people believe Bangladesh has every chance to strengthen its foothold in the billion-dollar shopping bag market.

"We could easily double our production and exports if we got proper government support," an official of Corr-The Jute Works which has long been reputed for exporting handicraft products.

http://www.thedailystar.net/newDesign/news-details.php?nid=94737

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Any of you guys invested in the Dhaka Stock Exchange? It currently is the world's 5th best preforming market.

Jute bag exports rise as shopping goes eco-correct

As usual our govt. put the cart before the horse. Export incentives should be given to export finished goods with higher value addition like bags and carpeting and not for jute cloth.

I have personally seen rough feel Polypropylene carpet (5'X8') selling for over $300. The jute stuff should be a lot cheaper and is biodegradable as well.

That's where export incentives should go. The govt. should do this immediately. Strike when the iron is hot (ecological-marketing is just getting to be trendy).

Any of you guys invested in the Dhaka Stock Exchange? It currently is the world's 5th best preforming market.

hmm nice, surprised sort of hehe, esp to see lebanon being the first

Any of you guys invested in the Dhaka Stock Exchange? It currently is the world's 5th best preforming market.

With every passing day I am being convinced that there hardly any difference in buying a stock (bond) or buying the lotto or going to the casino.

What logical economic (as in economic theories) reasons hold the prosperity of these stock markets when the rest of the industrialized world's stock markets have collectively gone to hell in a hand basket?

With every passing day I am being convinced that there hardly any difference in buying a stock (bond) or buying the lotto or going to the casino.

What logical economic (as in economic theories) reasons hold the prosperity of these stock markets when the rest of the industrialized world's stock markets have collectively gone to hell in a hand basket?

The market is definitely not the most efficient, all knowing force economic textbooks paint it to be. Now that doesn't mean some people are still not making killing.

Dhaka stock exchange like those of other developing countries is pretty volatile. That is,it can give huge return on one day and collapse the next..Well the higher risk is partially compensated by the higher return. This is due to lack of proper regulatory body and asymmetrical flow of information.

The risk can be largely mitigated by having a diverse portfolio with a good combination of high & low yield stocks, technology and stable industry like infrastructure, power etc. The people who suffer are the ones who put all their eggs in one basket.

Dhaka stock exchange like those of other developing countries is pretty volatile. That is,it can give huge return on one day and collapse the next..Well the higher risk is partially compensated by the higher return. This is due to lack of proper regulatory body and asymmetrical flow of information.

The risk can be largely mitigated by having a diverse portfolio with a good combination of high & low yield stocks, technology and stable industry like infrastructure, power etc. The people who suffer are the ones who put all their eggs in one basket.

Isn't that the mantra for investing in the stock market (any) period? Diversify, diversify, diversify. I'm well diversified but my 401K has turned into a 201K!

Isn't that the mantra for investing in the stock market (any) period? Diversify, diversify, diversify. I'm well diversified but my 401K has turned into a 201K!

That always happen in the short run during any recession. But if you look at the performance of the stock for the last 70-80 years(bigger picture) what happened last year is nothing exceptional.. Infact if average return is calculated by decade it will be pretty much same.

My 401K had -25% return last year at one point, but now back to +18-20% for the last few months.. so I am hoping the loss is gonna balance out.But the worst sufferers of equity market crash are the retirees or people who cannot wait for 7-8 years to recoupe the lost investment.

At the end of the day, there is no magic to receiving great returns without any risk or consequence. Afterall stock market is made up of people and we are susceptible to distrust, confusion and any other human shortcomins..

That always happen in the short run during any recession. But if you look at the performance of the stock for the last 70-80 years(bigger picture) what happened last year is nothing exceptional.. Infact if average return is calculated by decade it will be pretty much same.

My 401K had -25% return last year at one point, but now back to +18-20% for the last few months.. so I am hoping the loss is gonna balance out.But the worst sufferers of equity market crash are the retirees or people who cannot wait for 7-8 years to recoupe the lost investment.

At the end of the day, there is no magic to receiving great returns without any risk or consequence. Afterall stock market is made up of people and we are susceptible to distrust, confusion and any other human shortcomins..

Since most of us in these forums are still relatively young, the recession should not discourage us from investing. I actually took a chance and bought many of the distressed(AIG, CITI, GM, FORD..to name a few) stocks at prices not exceeding two bucks. Some were only 40-50 cents. Right now I'm ahead 80% in my investments and even if everything goes to hell in a hand basket, my losses will not wipe me out.

During the boom times of 1999-2001, people wished they had some shares at under 30 bucks! Those who did, including a local BD friend, became millionaires.

The Dhaka Sock Exchange from what little I know is a very fickle market. There is no rhyme or reason to the value of an individual stock. I think most investors are in for the dividends.

That always happen in the short run during any recession. But if you look at the performance of the stock for the last 70-80 years(bigger picture) what happened last year is nothing exceptional.. Infact if average return is calculated by decade it will be pretty much same.

My 401K had -25% return last year at one point, but now back to +18-20% for the last few months.. so I am hoping the loss is gonna balance out.But the worst sufferers of equity market crash are the retirees or people who cannot wait for 7-8 years to recoupe the lost investment.

At the end of the day, there is no magic to receiving great returns without any risk or consequence. Afterall stock market is made up of people and we are susceptible to distrust, confusion and any other human shortcomins..

No doubt, but what is rather disconcerting is that all the myths that I grew up to trust and rely upon are gradually being debunked, one after another. Just today I heard an expert on NPR say that people ought to be properly educated to dispel the allure of home ownership. Similarly, I heard many experts, of late, to berate wall street for creating an unrealistic hyped romantic notion of "investing" to get rich.

I haven't been very close to Dhaka Stock Exchange for years since I have been out of the country. But I think with time it's getting more robust and mature. Now the whole stock market is automated (which means better access to information), foreign funds are flowing in gradually and more companies are going for an IPO the most anticipated one is that of Grameen Telecommunication.

In the late 90s, turnover was only around 100-150 crore taka per day now it is reaching 1,000 crore per day. With volume of investment, the market is also going to become more lively. Moreover, shares are now being floated for Shipbuilding industries, pharmaceuticals, Solar technology to Private airlines. The diversity is also going to be beneficial in the long run.

I hope that the financial system becomes stronger with time and we learn from the mistakes made around the world. A vibrant equity market is vital for a country's growth as it allows companies to raise fund for new development very easily.

http://clip2net.com/clip/m7984/1246522162-clip-78kb.jpg

^^ I always HATED the entrance of the stock exchange building!

^^ I always HATED the entrance of the stock exchange building!

Didn't they start construction on a new Dhaka Stock Exchange Building? can anyone from Dhaka confirm?

^^ Yup they did. Its in Nikunjo, on Airport Road.

Didn't they start construction on a new Dhaka Stock Exchange Building? can anyone from Dhaka confirm?

yeah they did, u can see the pictures in the Dhaka Projects thread :)

yeah they did, u can see the pictures in the Dhaka Projects thread :)

Thanks man, do you know which page is it on? There are 48 pages and I was having a hard time locating it..

^^ haha i would have a hard time locating it too lol, but im sure Amar or Tanzirian bhai can help :)

Thanks man, do you know which page is it on? There are 48 pages and I was having a hard time locating it..

Post #945 and on

http://www.skyscrapercity.com/showthread.php?t=602091&page=48

Post #945 and on

http://www.skyscrapercity.com/showthread.php?t=602091&page=48

Amar, thanks for digging this up. Good stuff! The new complex is fitting to the booming stock market..

http://edailystar.com/contents/2009/2009_07_09/content_zoom/2009_07_09_23_1_b.jpg

Nayeem bro,
for our economic development, do we also need to change the economic policy we have atm?? if yes, can u please say in what ways the policy needs to be changed??
thanx :)

Nayeem bro,
for our economic development, do we also need to change the economic policy we have atm?? if yes, can u please say in what ways the policy needs to be changed??
thanx :)

Free market, rule of law and political stability are the ingredients for economic growth. All the asian tigers including Japan, Korea, Malaysia have made tremendous progress using inflow of FDI from countries in western Europe in US.

Bangladesh receives less than a billion dollar in foreign investment every year whereas more than trillion dollars are flowing around the world economy in a daily basis.

^^ thanx a lot :), actually Bangladesh received only $ 5 billion in terms of FDI inflow!

Free market, rule of law and political stability are the ingredients for economic growth. All the asian tigers including Japan, Korea, Malaysia have made tremendous progress using inflow of FDI from countries in western Europe in US.

Bangladesh receives less than a billion dollar in foreign investment every year whereas more than trillion dollars are flowing around the world economy in a daily basis.
what about the money flowing out to those countries as a result of these fdi?

these investors arent charity you know!

what about the money flowing out to those countries as a result of these fdi?

these investors arent charity you know!

You brought up a good point, but that's what business is all about.. "give and take". How a country uses the foreign capital depend to a great extent on the people of the nation. Look at Japan and Germany, they were basically funded by United States after Second world war, but those countries were smart to capitalize on it. Specially Japan which basically started industrializing at that point (Germany was already had well developed industry but was bankrupt due to the war. Similary Taiwan has used the investment to become a leader in semi conductor manufacturing.

On the other hand you have examples like Nigeria, which is a oil rich country and received huge investment from Chevron, Shell, BP etc but has been unable to capitalize on that. Instead corruption and lack of planning has kept the country relatively poor. That is why I mentioned "rule of law" along with FDI as a requirement for growth.

Anyhow,I feel that increase in economic activity is much more efficient in the long run than just money inflow in the form of Aid. Since aid money is "free", there is no incentive to use it properly to create industries.

Also, just look into the impact of all the telecommunication companies. They are mostly foreign but yet had lot of positive impacts, starting from more tax revenue to government to employing millions in the indutry.

^^ thanx a lot :), actually Bangladesh received only $ 5 billion in terms of FDI inflow!

Are you sure? In 2007 the FDI was only 793 million.

http://www.thefinancialexpress-bd.com/2008/09/25/46508.html

If it was 5 billion in 2008, then I would say it's a great improvement.

^^ I am not sure if thats what they received in 2008, but I got it from here :

http://en.wikipedia.org/wiki/List_of_countries_by_received_FDI

^^ I am not sure if thats what they received in 2008, but I got it from here :

http://en.wikipedia.org/wiki/List_of_countries_by_received_FDI

Probably you are right then.. Well we still need to improve our investment atmosphere a lot. Just do a comparison with Vietnam which received less FDI than Bangladesh only 10 years back got 43 billion in 2008!

I was reading in Farid Zakaria's book "The Post American World" that China had 9% GDP growth rate for over 20 years! Their export for one day is now larger than the export for the entire year in 1979. But inspite of all these changes, they still have a huge population below poverty level and their per capita income barely made it to the "middle income group".,

Now Bangladesh with 6-7% growth cannot be complacent since like China we have huge population issue (infact the density is much higher for us). So without 10-12% growth rate for 20-30 years we won't be able to reach the expected standard of living. But if we start growing, the large population will seem to become an asset instead of liability,since growing purchasing power will attract even more investment as seen in India,China or Brazil.

^^ well said, its really disappointing to see Bangladesh getting only $5 bn in FDI :(, we need to improve our economy ASAP!

We need to ask the question "Why don't we get enough FDI?" The only FDI we get is in the garments and the gas sectors, and the largest FDI was KAFCO way back in the 1980s.

I would think that the reason is the failure of the government to portray Bangladesh as an 'exciting' destination for investment. The government must employ some smart, people-friendly people in the EPB whose work would be to travel the world and present all the opportunities in Bangladesh to large corporations. Also every opportunity to participate in trade fairs must be undertaken by Bangladeshi companies. Also, advertisements must be placed in business magazines and news channels to show what Bangladesh has to offer.

Sure it will cost money, but eventually, the benefits would outweigh the costs.

Outside of attracting FDI as TIslam mentioned above, the government should emphasize on improving education standard and create a knowledge based society.

Manufacturing and service oriented industry like Information Technology will need highly skilled labor force. So the government should not only emphasize on increasing literacy rate it should also concentrate on institutes of higher learning to churn in more college graduates.

Bangladesh needs to spend atleast 6% of GDP on education.

We need to ask the question "Why don't we get enough FDI?" The only FDI we get is in the garments and the gas sectors, and the largest FDI was KAFCO way back in the 1980s.

I would think that the reason is the failure of the government to portray Bangladesh as an 'exciting' destination for investment. The government must employ some smart, people-friendly people in the EPB whose work would be to travel the world and present all the opportunities in Bangladesh to large corporations. Also every opportunity to participate in trade fairs must be undertaken by Bangladeshi companies. Also, advertisements must be placed in business magazines and news channels to show what Bangladesh has to offer.

Sure it will cost money, but eventually, the benefits would outweigh the costs.

I completely agree with you on that.The level of FDI we receieve is surprisingly low even compared to our exports,remittance and the size of our economy.I think that govt. inaction and too much negative publicity are the main reasons behind this below standard level of FDI and its horrribly slow growth.

^^

exports (2008): $16 billion.
remittance (2008-9) : $9 billion.
but FDI is only around $5 bn :(

^^

exports (2008): $16 billion.
remittance (2008-9) : $9 billion.
but FDI is only around $5 bn :(

FDI was less than 800 million in 2008, it was never anywhere near $5 billion. Though I wish it was higher.

FDI was less than 800 million in 2008, it was never anywhere near $5 billion. Though I wish it was higher.

That's what I thought, it was only 793 million in 2007, so 5 billion looked like a big jump to me..

^^ i think the $5 bn is overall FDI BD received so far??

^^ I think that is it. The cumulative FDI is $5b. That is a pretty sad figure.

http://nation.ittefaq.com/issues/2009/07/17/news0129.htm

Let's hope we can join the ranks of the middle-income nations a lot sooner.

Bangladesh to graduate out of LDC by 2015: CPD: Middle-income country by 2024:UNCTAD

UNB, Dhaka


Civil-society think-tank CPD thinks Bangladesh could get out from the world's poor-country club called LDCs by 2015 while UN agency UNCTAD pushes back to 2024 the landmark time for the country's graduation to the middle-income group.

The Centre for Policy Dialogue (CPD) said if the country could increase its per-capita income, develop its social indicators and reduce the economic risks, it would be possible to cast off the LDC label.

A distinguished CPD fellow, Dr Debapriya Bhattacharya came up with this projection Thursday during the launch of the United Nations Conference on Trade and Development (UNCTAD) annual report in Bangladesh.

CPD launched the report for the fourth consecutive time in Bangladesh. The launching ceremony was held in the CPD dialogue room where CPD additional director (research) Fahmida Khatun presented the UNCTAD report.

Dr Debapriya observed that human resources and the economy of Bangladesh are good support for the country to jump off the LDC list. "But the effects of the global climate change is a great concern in this regard," he said.

The LDC bloc was established in 1971, and since then, only two countries (Botswana in 1994 and Cape Verde in 2007) have 'graduated' from the category. Samoa is expected to graduate in December 2010 and the Maldives in January 2011. In 2009 Equatorial Guinea is recommended to be graduated.

The number of Least Developed Countries (LDCs) in 1971 was 25, which has snowballed to 49 up till 2009 over the years in the pauperization process under the disparate world economic system wherein the hedonistic rich nations wallow in wealth.

According to backdated UNCTAD calculation, Bangladeshi people's per-capital income was 386.6 US dollars in 2006. The per-head income in the United States was USD 46,859 while in the United Kingdom USD 43,785 in 2008, according to the IMF. Luxemburg boasts of having the highest tally of USD 113044.

The CPD fellow said that Bangladesh has to adopt pro-development good governance to boost the country towards a sustainable develop status.

The CPD additional director (research), Fahmida Khatun, in her presentation said that the tax-GDP ratio in the African LDCs is 12.2 whereas it was here only nine percent in 2009 and targeted to be 9.3 percent in 2010.

She said that the high real rate of interest (RRI) is a concern fore investment in Bangladesh. The rate in Bangladesh is 9.4 while 7.6 percent in Asian LDCs, less than 4 percent in rich countries and nine percent in the overall LDCs.

"High RRI jeopardizes long-term growth by increasing cost of public and private investment," she told the function.

CPD executive director Mustafizur Rahman was also present at the launching ceremony.

^^ we must be a mid-income nation by 2015

Bangladesh stands tall in Asia’s export
Shakhawat Hossain

http://www.newagebd.com/2009/jul/20/busi-b.jpg

Bangladesh stood tall with 11.88 per cent export growth until May 2009 amid tumbling shipments from major Asian countries because of the lingering global financial slump.

Goods worth $14.14 billion were shipped out of the country between July 2008 and May 2009, compared to $12.63 billion during the same period of last year, according to official data.

China, India, Pakistan, Malaysia, Vietnam and Thailand were struggling to stop the free fall in export shipments as the global recession cut demand for goods in both sides of the Atlantic.

China’s exports fell by a record margin in May. Exports tumbled 26.4 per cent from a year earlier, exceeding February’s previous record drop of 25.7 per cent, the Chinese customs agency reported.

The growth in India’s merchandise exports dipped to 12.9 per cent for May 2009.

Pakistan’s export contracted by 5.14 per cent after it managed to fetch $16.262 billion between July 2008 and May 2009 compared with $17.143 billion of the year-ago period.

Trade experts and exporters attributed Bangladesh’s export success to the competitiveness of the country’s garment sector and availability of cheap labour.

Centre for Policy Dialogue executive director Mustafizur Rahman said readymade garment sector led the way although exports of frozen food, leather and jute fell.

He pointed out that RMG manufacturers produced lower-end products whose demand did not fall significantly in global destinations. Besides, he referred to availability of cheap labour which was an added advantage for the RMG sector to stay competitive amid a fierce trade battle among major competitors.

Admitting the fact of cheap labour, Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Haq said there are other factors too, which worked behind the good export performance of the RMG sector.

He said better delivery, lower price and sewing quality kept Bangladesh still attractive when its rival countries pumped in billion of dollars stimulus package to halt the export slide.

Vietnam’s export turnover declined in the first five months of 2009, posting the first negative growth in more than 10 years. Vietnam’s May export revenues are estimated at $4.4 billion, up 2.8 per cent month on month but down 24.4 per cent year on year.

The latest trade figures from Bank of Thailand show that Thai exporters continue to suffer. The value of Thai exports was 26.5 per cent less in May than a year ago. Annual exports have contracted for seven consecutive months.

Malaysia’s exports fetched $58.70 billion for January-May 2009 period. Earning from major export products decreased from the corresponding period of 2008, except for liquefied natural gas which grew by 13.1 per cent.

BB upbeat on GDP growth

The economy will grow at 6 percent in fiscal 2009-10 despite the global downturn that weighed on exports, the central bank said in its monetary policy released yesterday.

According to Bangladesh Bank (BB), the growth of gross domestic product (GDP) might fall in the range of 5.5 percent and 6 percent for the current fiscal year.

Still, the projection was a conservative one, said BB. The economy may exceed the 6 percent growth projection if infrastructure development -- especially through public-private partnership -- can be ensured, it said in the policy statement.

"The projection is likely to be outperformed if the global economy recovers faster and if the various initiatives proposed in the fiscal 2010 national budget can be implemented in right earnest," it said.

The economy grew 5.9 percent in the previous fiscal year, the slowest rate since 2002-03, as output cooled due to the global economic slowdown.

BB Governor Dr Atiur Rahman rolled out the policy from a press conference at the central bank headquarters.

Rahman said he was upbeat about growth although the global meltdown has "mildly impacted" shipments of the country's main export, apparel, amid the continued sluggishness of investment activities.

This was the first policy statement after Rahman took the reins of the central bank on May 1 for a four-year term.

BB deputy governors Nazrul Huda, Ziaul Hasan Siddiqui and Murshid Kuli Khan, BB governor's consultant Allah Malik Kazemi and financial adviser Habibullah Bahar were also present.

"These announcements of monetary policy stance, based on near term outlook for growth and inflation, are intended to anchor inflation expectations of market participants and the general public. As usual, the monetary stance for FY10 is designed to support attainment of the highest sustainable output growth without triggering escalation of inflation," the governor said.

BB's programmes have of late placed greater directional emphasis on the credit needs of sectors like agriculture and SME (small and medium enterprise) typically under-served by the market, Atiur said.

"Downward stickiness of lending interest rates and service charges/fees, arising from non-competitive tendencies of financial service providers, are of late also being addressed more directly with mandatory rather than advisory BB guidance," he said.

The policy statement said output activities for export demand weakened as exports declined for most items other than apparels and textiles, which also faced some growth slowdown.

Decline in capital machinery imports in FY09 indicated sluggishness in investment activities. Despite incipient signs of recovery of global financial markets and institutions, effects of the global slowdown are widely viewed as likely to linger until mid 2010, affecting the growth momentum in export manufacturing and investment activities.

The decline in domestic annual average CPI (consumer price index) inflation is likely to be slower and smaller in FY10, and is projected to be at 6.5 percent by June 2010. In July last fiscal year, it was 10 percent and in May it declined to 7.32 percent, the statement said.

It said BB shall continue to maintain easy credit conditions in FY10 to help the real economy sustain growth momentum amid global recession, with special attention to the credit needs of sectors hurt by the slowdown and of sectors like agriculture and SME.

There are several caveats and downside risks to the growth and inflation expectations underlying the monetary stance outlined above for FY10, said BB.

"On the external front, although growth projections for major economies are now being upgraded by forecasters, they are yet to be fully confident that global markets and institutions are on path of solid broad-based recovery."

The BB statement also said if global recovery falters or slackens, export growth, workers' remittance inflows and investment activities may weaken in FY10, with negative implications for GDP growth.

The opposite scenario of unexpectedly faster global recovery will also involve some risks of exacerbating domestic inflation, from possible re-ignition of global commodity price speculation and re-emergence of price bubbles, it said.

On the domestic front, agricultural growth will depend, besides favourable weather and reasonable market prices, on adequate and timely availability of irrigation, fertilisers and other inputs to the growers, a challenge not always well addressed in the past.

The strong leadership in the agriculture ministry and BB's recently announced agricultural credit programme will hopefully maintain a supportive supply side situation in the farm sector, the BB statement said.

It said infrastructural inadequacies, particularly of power and gas, remain as before severe constraints for rapid growth in all economic sectors.

The ongoing infrastructure projects and the public-private partnership programme announced in the FY10 national budget will need to be brought to rapid fruition for growth aspirations of the economy to be fulfilled, the BB said.

http://www.thedailystar.net/newDesign/news-details.php?nid=97712

Bangladesh stands tall in Asia’s export
Shakhawat Hossain

http://www.newagebd.com/2009/jul/20/busi-b.jpg



Excellent news:)

^^ good news :)

Bangladesh to triple oil refining capacity-official

Tuesday, 07.21.2009, 02:07pm (GMT)

State-run Bangladesh Eastern Refinery Limited (ERL) will raise its capacity by three times to reduce import cost and its reliance on foreign countries for petroleum products, a senior official said on Monday.
At a cost of more than $1 billion, the refinery's capacity will be raised to 4.5 million tonnes a year from 1.5 million tonnes, the official said. "We find the plan viable after completion of a study done by Pakistan-based consultancy firm Enar Tech Service limited," said Rezaul Alam, the managing director of the ERL, the country's lone oil refinery located in Chittagong.
"Almost the entire demand we will meet from our own capacity, which will save cost and time," he said.
Bangladesh imports up to 3.8 million tonnes of oil including 1.2 million tonnes of crude oil to meet up yearly demand.
The expansion programme will be done in two phases beginning from this year and take three years to complete, the official said.
Jeddah-based Islamic Development Bank will bear the cost of the first phase. In the second phases, money will come from the Asian Development Bank and other countries.
Bangladesh imports oil mainly from Saudi Arabia, Kuwait, United Arab Emirates, India and Malaysia at a cost of between $2.5 and $3 billion

http://www.energybangla.com/index.php?mod=article&cat=Petroleumsector&article=1933

Bangladesh to triple oil refining capacity-official

..... Bangladesh imports oil mainly from Saudi Arabia, Kuwait, United Arab Emirates, India and Malaysia at a cost of between $2.5 and $3 billion

http://www.energybangla.com/index.php?mod=article&cat=Petroleumsector&article=1933

To those in the know, is it true that Bangladesh buys oil at very preferential rates from Kuwait, Saudi Arabia and U.A.E? At one time I heard Kuwaiti oil is bought at $40/barrel when the international price was nearly $70.

Also, I know India imports oil, so what are they exporting to BD?

Nayeem bro,
for our economic development, do we also need to change the economic policy we have atm?? if yes, can u please say in what ways the policy needs to be changed??
thanx :)

One thing to remember. Economic growth doesnt necessarily mean economic development. Economic growth needs to be equal. Along with that u need imporvements in literacy rates, healthcare, acess to education, clean water and electricity.

GDP per capita i9ncrease may go to the rich and not benefit the poor at times. Like in the past BD's GDP per capita increased but Tareq and his goons got richer.

Also, I know India imports oil, so what are they exporting to BD?

I believe Bangladesh buys refined oil from India, Singapore etc since currently our lone refinery does not have the capacity to meet the country's demand.

One thing to remember. Economic growth doesnt necessarily mean economic development. Economic growth needs to be equal. Along with that u need imporvements in literacy rates, healthcare, acess to education, clean water and electricity.

GDP per capita i9ncrease may go to the rich and not benefit the poor at times. Like in the past BD's GDP per capita increased but Tareq and his goons got richer.

^^ True

ALMOST 11 Billion Dollars of Remittance expected this year

I have been waiting to hear a news like this for a long time:cheers:

Remittance may cross $10b mark: WB
Star Business Report

http://www.picamatic.com/show/2009/07/30/12/26/4636130_400x260.jpg

The World Bank (WB) said yesterday Bangladesh is expected to receive remittance worth $10.87 billion in the current fiscal year if the global oil price does not fall and the local currency is not appreciated.
The WB also revealed some findings that go beyond traditional beliefs -- only nine percent remittance is sent through unofficial channel, migrants' households spend more on food and lifestyle rather than productive sector such as purchasing land.

It also found remittance inflow increases when a country's economy goes through hardship.

The findings were based on a survey conducted in 2007 and presented to the media in a report titled "Remittances in Bangladesh: Determinants and Outlook" in Dhaka yesterday.

The WB has been watching some factors since 1980 that impact remittance inflow -- global oil price, local exchange rate and the health of domestic economy, among others.

The donor agency said more inflow of remittance accelerates the pace of poverty reduction.

If oil price goes up by one dollar, annual remittance increases by nearly $15 million, and if the taka is depreciated by one unit, the annual remittance rises by $18 million, the WB report said.

WB senior economist Zahid Hussain presented the findings at the press briefing, where Acting Country Director Robert Floyd was also present.

Hussain said if the present exchange rate of Tk 68.8 per dollar continues and oil price remains at around $68 per barrel on an average, around 610,000 employments may be created abroad for the Bangladeshis in the current fiscal year.

In that case remittance inflow this fiscal year would be $10.87 billion at a 12.3 percent growth rate. But if 1,50,000 jobs are created abroad, the figure will be $10.49 billion and growth 8.4 percent.

The WB found that on an average a migrant remits Tk 101,579 a year.

The migrants send 33.6 percent remittance by cheque or bank draft, 23 percent by direct transfer to their own bank accounts, 16 percent to a third person's bank account, 15 percent through personal delivery by friends or relatives and 9 percent by Hundi (an illegal channel of remitting).

Sonali and Agrani banks are the major remittance service providers.

The average agency fee per migrant is Tk 1,20,000 in all regions, but it is Tk 1,22,150 in Dhaka, Tk 1,32,750 in Chittagong and Tk 1,14,750 in other regions, the WB said.

Of the migrants, 28 percent use own cash resources for their migration costs, 21 percent get help from friends and relatives, 15 percent mortgages land, 12 percent sell asset and 10 percent borrow from friends and relatives.

The WB found that the monthly per capita expenditure of a migrant household is significantly higher compared to a non-migrant one. "They eat better (more fish and meat), dress better, buy more household appliances, and save a good part of their remittance receipts."

There is no significant difference between migrant and non-migrant households in terms of per capita expenditures on health and education, vehicles, jewellery or pots and plants and land acquisition.

"Outstanding loans are significantly higher for migrant households, possibly reflecting upfront financing of migration costs through borrowing," the report said.

Migrant households spend significantly more on modern agricultural inputs (fertiliser and seeds) than non-migrant households.

Source:http://www.thedailystar.net/newDesign/news-details.php?nid=99253

Ceramic ware exporters aim sturdy business
Shakhawat Hossain

http://www.newagebd.com/2009/aug/04/busi-b.jpg

Local ceramic ware manufacturing industry is expecting a steady growth with a $100 million return from exports by 2015 as the global markets favour more shipments from Bangladesh.
In the past fiscal, 21 local leading ceramic ware factories fetched more than $35 million from exports of their products to 50 countries, said Rashed Moudud Khan, president of the Bangladesh Ceramic Ware Manufacturers’ Association.
Of the products, ceramic table wares are being exported to about 50 countries including, the US and Canada, tiles to India, Nepal and Bhutan, and sanitary wares to the Middle East, specially to the UAE.
Besides earning valuable foreign currency, the exporting factories and 24 others manufacturers also cater to the entire demand of domestic market, the size of which has grown to Tk 700 crore in 2008-09, he said.
Khan, also the chairman of Bengal Fine Ceramic, said the country exported only $1 million worth of ceramic wares in 1991 before recording a staggering 695 per cent growth in about a decade, investing nearly Tk 2,000 crore and employing some one lakh workers.
Industry leaders said Bangladesh has huge potential to emerge as one of the three largest global ceramic exporters by the next decade for its advanced ‘Bone China’ technology and competitive labour costs.
Besides, Bangladesh enjoys tax exemption in the EU countries as an LDC (least developed country) member.
They said the sector would be a $100 million export industry in the next three years should the markets not been affected by the global economic recession.
However, they pointed out that the government should promote the sector with various incentives as the value addition of the ceramic sector is almost 65 per cent.
The association leaders while meeting with finance minister AMA Muhith on Sunday, submitted 10-ponit demands that included fixation of bank loan at interest of 7 per cent and inclusion of the sector in the Tk 5,000 crore stimulus package announced in the current budget.
They said the manufacturing cost of 60-piece dinner set is $40.23 at the existing interest rate of 13 per cent.
The cost will, however, be much lower at the proposed 7 per cent interest rate which will eventually increase the competitiveness of the local products in the international market.
The association also demanded waiver of 10 per cent supplementary duty on locally manufactured products and full waiver of valued added tax on gas bills from the existing 80 per cent.

http://www.newagebd.com/2009/aug/04/busi.html

^^ Good news! We need other manufacturing companies to pick up, we are relying heavily on garments and textiles now.

As I mentioned few times before, one of the biggest drawback in the development and expansion of private enterprises in Bangladesh is the high interest rate. With 13% interest rate (Cost of Capital), no one is going to venture out into new fields, this will leave our industrial base under developed.

This is one of the main reason I am a strong proponent in having a solid stock market as well as investment atmosphere. Inflow of capital from abroad is the only way to decrease this high interest rate.

:banana:

Foreign Currency Reserve hits 7.84 Billion US dollars
3 years ago,it was 3.37 Billion US dollars



$886m remittances received in July
FE Report

Remittances by the Bangladeshi expatriates stood at over US$886 million in the first month of the current fiscal, marking an eight per cent growth over the month of July of last fiscal, officials said.

The remittance earnings in July came as a continuation to last fiscal's trend and record inflow of $9.689 billion. The growth in 2008-09 was 22.42 per cent over the previous fiscal.

The remittances from Bangladeshi nationals working abroad were estimated at $886.40 million in July this year, a fall by $32.70 million from the previous month. In June 2009, the remittance was $919.26 million, according to the central bank statistics, released on Monday.

"It's a normal trend of inward remittances. We expect that the flow of remittances would increase this month ahead of Holy Ramadan as well as Eid festival," a senior official of the Bangladesh Bank (BB) told the FE.

He also said the central bank has taken special measures to allow more exchange houses particularly in the European Union (EU) to remit money to the country aiming to increase the flow of remittances from the Euro Zone.

The flow of inward remittances witnessed a significant fall from three major EU countries - the United Kingdom, Germany and Italy -in the fiscal that ended on June 30 following the ongoing economic recession.

The country's foreign exchange reserve stood at an all time high at $7.84 billion on the day, thanks to the robust growth of remittances from Bangladeshis working abroad, the BB officials added.

The central bank has already enacted a series of anti-money laundering laws and simplified money exchange rules to encourage expatriate Bangladeshis to avoid the illegal 'hundi' channel.

It has also allowed the commercial banks to form partnerships with the non-governmental organisations (NGOs) having branches all over the country for disbursement of the remittances, particularly in the rural areas.

Source:http://www.thefinancialexpress-bd.com/2009/08/04/75258.html

What's the largest port of Bangladesh? Where majority of trade happens? Chittagong?

What's the largest port of Bangladesh? Where majority of trade happens? Chittagong?

Yes..thats right

What's the largest port of Bangladesh? Where majority of trade happens? Chittagong?

Yeah, but in the future the largest port of Bangladesh will be the Sonadia Deep-Water Sea Port near Cox's Bazar, which will be nearly 4 times bigger than Chittagong.

http://www.thedailystar.net/photo/2009/04/11/2009-04-11__front01.jpg

Here's the Google Map image (http://maps.google.com/?ie=UTF8&ll=21.491408,91.920891&spn=0.132892,0.201187&t=h&z=12)

Pardon my lack of knowledge but is the Mongla Port fully dead?

^^

haha seems like :P , as u knw the labors are on strike

Pardon my lack of knowledge but is the Mongla Port fully dead?

Mongla Port has recently seen more activities as the import of used vehicles from Japan and other countries are conducted outside of Chittagong for the first time.

Also, once Padma Bridge is constructed there will be direct road connection between Dhaka and Mongla port, making this port much more viable. The government has plans to open up the port to landlocked Nepal and NE Indian states aswell..

The government has plans to open up the port to landlocked Nepal and NE Indian states aswell..

I thot they wanted to do that with Deep Seaport. This was advocated by Dr. Yunus I remember. It will be a good source of revenue. I hope BNP doesnt make an issue out of this.

^^

If it will be a good source of revenue, i hope BNP wont protest :)

^^

If it will be a good source of revenue, i hope BNP wont protest :)

Bangladesh's policy towards India changes with every election---therefore plans such as this as well as the ASIAN highway might as well be shelved when the opposition comes in power

^^ so true.

I thot they wanted to do that with Deep Seaport. This was advocated by Dr. Yunus I remember. It will be a good source of revenue. I hope BNP doesnt make an issue out of this.

Yeah Deep Sea port work is also going on parallely, but short term measure would be to upgrade Mongla port since it's cost effective..

Bangladesh economy will continue to grow - IMF
Thu Aug 6, 2009 5:56pm IST


DHAKA (Reuters) - The International Monetary Fund said on Thursday that Bangladesh's economy will continue to grow steadily despite the continuing uncertainty posed by the global financial crisis.

"But at the same time the economic situation of the country in the fiscal year to end June 2010 may be more dependent on the pace of recovery of the U.S. economy and local agricultural production," said Jonathan C. Dunn, resident representative of the IMF in Bangladesh.

"Despite all the odds and opportunities both at home and across the world I would expect the economy will grow (gross domestic product) by 5 to 6 percent in the current fiscal year," he told Reuters in an interview.

He said that remittances and exports, the two mainstays of Bangladesh's economy, will continue to grow this fiscal year.

"I expect export growth will be up at around 8 to 9 percent this year while remittances will be growing 15 to 20 percent."

In the fiscal year to end June 2009 Bangladesh earned about $25 billion from remittances and exports, mainly ready-made garments which account for more than 80 percent of the country's total exports, officials said.

"These strong earnings will be a major cushion for Bangladesh in the balance of payments during the year," Dunn said.

Bangladesh's foreign exchange reserves rose 33 percent to $7.74 billion in July compared with the same month last year, officials said

Dunn said the IMF would not wind up its office in Bangladesh before 2012, though there had been a decision to close it in December this year.

"At the moment we are not closing the office in Dhaka, responding both to a request from the government and the uncertain economic situation. The fresh decision was already conveyed to the government," he said.

Dunn said the IMF had been suffering from significant budgetary constraints, forcing its management to wind up offices in many countries and cut jobs.

The IMF offices in South Korea, Hong Kong and Papua New Guinea were closed last year, he said.

"We will continue to support Bangladesh with technical assistance ... despite having no financial programme in operation in the country at the moment."

At present the IMF is providing technical assistance in upgrading the accounting and auditing systems of the Bangladesh's central bank, developing a secondary market for government debt instruments, reforming the tax administration and tax laws and in debt management and economic forecasting.
http://in.reuters.com/article/southAsiaNews/idINIndia-41583420090806

IMF thinking of closing its office in BD after 2012?

Fantastic:banana:

Thanks for sharing this exciting news bro

^^ LOL :P

IMF thinking of closing its office in BD after 2012?

Fantastic:banana:

Thanks for sharing this exciting news bro

Interestingly, in our final class of the semester on "Managerial Economics" we discussed why IMF and World Bank are complete failures and developing countries dislike them. Our professor suggested a complete rehaul of the above organizations to make them effective.

Following are couple of videos from Prof Michael Brandl

Macroeconomics
JMW-bjkFEuA&feature

Obama's Economic Plan

5vwXp27bCLw&featurel


I have talked to him multiple times about economic situation in Bangladesh and what can be done to improve it.. some of which I have shared through my posts.

Foreign Currency Reserve hits 8 Billion Dollars!

Bangladesh foreign exchange reserve hits a new record on Thursday when it crossed the 8 billion US dollar-mark for the first time in the country’s history. ‘The reserve crossed US dollar 8 billion and the growth is a good sign for the economy,’ Bangladesh Bank Governor Dr Atitur Rahman told BSS here yesterday. The country needs the reserve for keeping its economy on a strong footing, he also said.
Earlier on July 5 this year, the reserve reached $7.42 billion when the country received a record $10 billion in remittance.
A recent study of the World Bank, Dhaka office, projected that the remittance inflow into the country would remain over $10 billion dollars in the current 2009- 10 fiscal year despite the fallout of the global financial meltdown.
This projection indicates that the reserve would also maintain a strong position, a BB official said.
The official referred to the government initiatives to help boost remittance inflow through establishing an expatriate bank, providing training to the potential migrant workers for skill development and setting up of labour wings in Bangladesh missions abroad to protect the interests of country’s expatriates overseas.
He said these initiatives would help maintain steady growth of the remittance and the reserve as well.
A recent report in the Bangladesh Economic Review, however, projected a decline in the number of Bangladeshi workers abroad. ‘More than 200,000 people migrated overseas for jobs in the first five months of this year is lower than about 3,78,000 expatriates in the same period last year,’ it said.
An official of the Bangladesh Association of International Recruiting Agencies said though the overall number of outgoing workers declined, the outflow of skilled manpower increased last year.

http://www.newagebd.com/2009/aug/08/busi.html

Foreign Currency Reserve hits 8 Billion Dollars!

Bangladesh foreign exchange reserve hits a new record on Thursday when it crossed the 8 billion US dollar-mark for the first time in the country’s history. ‘The reserve crossed US dollar 8 billion and the growth is a good sign for the economy,’ Bangladesh Bank Governor Dr Atitur Rahman told BSS here yesterday. The country needs the reserve for keeping its economy on a strong footing, he also said.
Earlier on July 5 this year, the reserve reached $7.42 billion when the country received a record $10 billion in remittance.
A recent study of the World Bank, Dhaka office, projected that the remittance inflow into the country would remain over $10 billion dollars in the current 2009- 10 fiscal year despite the fallout of the global financial meltdown.
This projection indicates that the reserve would also maintain a strong position, a BB official said.
The official referred to the government initiatives to help boost remittance inflow through establishing an expatriate bank, providing training to the potential migrant workers for skill development and setting up of labour wings in Bangladesh missions abroad to protect the interests of country’s expatriates overseas.
He said these initiatives would help maintain steady growth of the remittance and the reserve as well.
A recent report in the Bangladesh Economic Review, however, projected a decline in the number of Bangladeshi workers abroad. ‘More than 200,000 people migrated overseas for jobs in the first five months of this year is lower than about 3,78,000 expatriates in the same period last year,’ it said.
An official of the Bangladesh Association of International Recruiting Agencies said though the overall number of outgoing workers declined, the outflow of skilled manpower increased last year.

http://www.newagebd.com/2009/aug/08/busi.html

Excellent, but no credit to the present government or any preceding ones. This eight billion is the blood, sweat and tears of millions of expatriates toiling away.

Excellent, but no credit to the present government or any preceding ones. This eight billion is the blood, sweat and tears of millions of expatriates toiling away.

True observation, but I will give some credit to the government(both current and previous), in streamlining the legal channel through which remittance is sent. As a result of these initiatives, remittance through proper channel has grown by double digit over the last 3-4 years.

This news of Forex Reserve reaching 8 billion US dollars is amazing.Just a few months ago,it was 6 billion:)
The credit for this goes to the bangladeshis working abroad,bangladeshi exporters and of course to some extent the governments.And the best thing is,unlike some countries,our reserves are not increasing because of sanctioning of loans from the WB or IMF or Donors.
Now lets wait for the Reserve to reach 10 Billion---according to my calculations--Bangladesh Bank might be holding over 10 Billion US Dollars of reserve within 6 months.:cheers:

2009
Bangladesh Exports 15.5 Bn
Bangladesh Imports 21.4 Bn
Remittance 10 Bn
Forex Reserve 8 Bn

2010
Export is expected to reach 17 Bn this fiscal
Import may be expected to reach 24 Bn this fiscal[max]
Remittance is expected to reach 11 Bn this fiscal
FDI more than equals Repatriated profits of Foreign companies

With a surplus of 4 Bn[17+11-24],Forex reserve should easily reach 12Bn this fiscal year :banana:




Trade deficit narrowed by $380m last fiscal
FHM Humayan Kabir

The country's trade deficit narrowed by US$380 million in the last financial year compared to the previous financial year, thanks to lower global prices of commodities due to economic recession, officials said.

The deficit was $5.88 billion in FY2009 against that of $6.26 billion in FY2008, official data showed.

During the last financial year, ended in June 2009, total shipment of the Bangladesh products was worth $15.56 billion while the country imported goods worth $21.44 billion.

In FY08, the export earnings were $14.11 billion against the import payments of $20.37 billion, the government statistics said.

The central bank officials said the trade deficit has narrowed in the just concluded fiscal year, when volume of import by the country and prices of goods in the international market have both fell due to impact of the economic meltdown.

Besides, the export growth in the last fiscal was an impressive 10.31 per cent despite affect of the global financial plunge, which helped cut the trade gap, they said.

Economic researcher Zaid Bakth said as the import growth slowed down to five per cent in the last financial year compared to more than 15 per cent growth rate in the previous few years, the overall trade imbalance has reduced.

He said: "The import of food grain, petroleum products and capital machinery has dropped, which has eased the overall import payment of the country."

The government data showed that the year-on-year trade imbalance in the FY2008 was higher than the last FY2009.

During FY2008, the country imported goods worth $20.37 billion against the total shipment of $14.11 billion, leaving a $6.26 billion trade deficit.

In the previous FY2007, Bangladesh exported goods worth $12.18 billion while imported products worth $16.01 billion, maintaining a trade gap of $3.83 billion.

Trade analyst Mr. Bakth said: "Reduction of trade imbalance is better for an economy. But if import of capital machinery and raw materials drops significantly then it will not be good for the nation."

"Demand for Bangladeshi products both in the domestic and foreign markets needs to increase to boost the country's economic growth. For this, more investment will have to be attracted," he told the FE.

Mr. Bakth, a researcher at the Bangladesh Institute of Development Studies (BIDS), said maintaining a comfortable trade balance in the current financial year (2010) will be challenging as the export and remittance growth could fall further due to economic recession.

So, the government has to prepare itself through improving its infrastructure, boosting gas and power supplies aiming at attracting more local and foreign investment, he added.

"Global prices of different products including oil are rising. On the contrary, month-to-month export growth is shrinking. It means Bangladesh has to pay more import bills, which will widen trade deficit in the coming days," said a senior Bangladesh Bank official.

"The ready-made garment exporters should target some yet untapped markets like Australia and Japan," he said adding, "Some sector like shipbuilding should be promoted more by providing adequate facilities to maintain steady growth in export earnings."


Source:http://www.thefinancialexpress-bd.com/2009/08/08/75493.html

Excellent, but no credit to the present government or any preceding ones. This eight billion is the blood, sweat and tears of millions of expatriates toiling away.

Isn't that the case with every country? (Except commodity exporters)

Foreign Currency Reserve hits 8 Billion Dollars!

Bangladesh foreign exchange reserve hits a new record on Thursday when it crossed the 8 billion US dollar-mark for the first time in the country’s history. ‘The reserve crossed US dollar 8 billion and the growth is a good sign for the economy,’ Bangladesh Bank Governor Dr Atitur Rahman told BSS here yesterday. The country needs the reserve for keeping its economy on a strong footing, he also said.
Earlier on July 5 this year, the reserve reached $7.42 billion when the country received a record $10 billion in remittance.
A recent study of the World Bank, Dhaka office, projected that the remittance inflow into the country would remain over $10 billion dollars in the current 2009- 10 fiscal year despite the fallout of the global financial meltdown.
This projection indicates that the reserve would also maintain a strong position, a BB official said.
The official referred to the government initiatives to help boost remittance inflow through establishing an expatriate bank, providing training to the potential migrant workers for skill development and setting up of labour wings in Bangladesh missions abroad to protect the interests of country’s expatriates overseas.
He said these initiatives would help maintain steady growth of the remittance and the reserve as well.
A recent report in the Bangladesh Economic Review, however, projected a decline in the number of Bangladeshi workers abroad. ‘More than 200,000 people migrated overseas for jobs in the first five months of this year is lower than about 3,78,000 expatriates in the same period last year,’ it said.
An official of the Bangladesh Association of International Recruiting Agencies said though the overall number of outgoing workers declined, the outflow of skilled manpower increased last year.

http://www.newagebd.com/2009/aug/08/busi.html

:banana:. Yeea. :banana:

http://nzbmatrix.com/images/smilies/w00t.gif
http://nzbmatrix.com/images/smilies/w00t.gif
http://nzbmatrix.com/images/smilies/w00t.gif
http://nzbmatrix.com/images/smilies/w00t.gif
http://nzbmatrix.com/images/smilies/w00t.gif

Some interesting observations by our Finance minister, he mentioned the exact same things I have been talking about (i.e high cost of capital, lack of foreign investment and a weak capital/money market).

Everyone knows what the problems are, but finding the solution and actually implementing it is the hard part....

---------------------------------------------------------------------------------------------------------------------------------

Bangladesh on right track despite slow progress: Muhith

Staff Reporter

Finance Minister AMA Muhith yesterday identified three weaknesses in the economy including slow investment, high bank interest rates and narrow capital market, which are barring speedier growth.
"Otherwise, Bangladesh economy is advancing in the right dircetion maintaining its macroeconomic health," he told a seminar on `Exchange Rate Management under Floating Regime in Bangladesh' at Bangladesh Institute of Development Studies (BIDS).

Policy Resource Programme of BIDS in association with `Manusher Jonno' organized the seminar to review the country's foreign exchange policy in light of the floating exchange rate introduced in 2003.

Former Bangladesh Bank governor Dr Salehuddin Ahmed addressed the function as the special guest with BIDS Director General Dr Mostafa Kamal Mujeri in the chair.

BIDS researchers Monzur Hossain and Mansur Ahmed presented a joint keynote paper, while Professor MA Taslim, chief executive officer of Bangladesh Foreign Trade Institute, made a deliberation on the theme.

Special fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya spoke on the paper. Former commerce minister Amir Khosru Mahmud Chowdhury, among others, was present.

The Finance Minister emphasised the need for strengthening and widening the country's capital market to increase investment.

"The investment will remain slow unless we can deepen further the capital market while we will have to strengthen the money market," Muhith said, expressing his frustration over the declining public investment day by day.

"We're not being able to make progress in investment as such while the interest on bank loans in a way is far from the desired level," he said.

Muhith said it would not be easy to come out of these problems as the interest on bank deposits still remain at the same level of what it was at the time of more than 10 percent inflation. It has not been possible to expedite investment in the country due to the interest rate that has a close link with investment.
The Minister said the objective of the Bangladesh Bank intervention in the market has been successful as it reduced volatility.

He rejected the idea of adopting bilateral exchange rate as the major portion of the domestic transactions take place in dollar terms.

The keynote paper observed that the central bank intervened in the exchange market after introducing the floating exchange rate in 2003, particularly since March 2006, and found that the exchange rate has not been consistent with the real floating rate. The central bank pursued a "managed floating system."

The paper endorsed the rationale of the Bangladesh Bank intervention, but said that the rate has not been appropriate despite the intervention.

It said the Real Effective Exchange Rate (REER) of Taka has been overvalued due to stabilizing the exchange rate of Taka against the dollar, which contributed to slowing down the export growth.

Former Bangladesh Bank Governor Dr Salehuddin Ahmed, however, contradicted the idea of depreciating Taka against dollar which would have adverse impact on prices of import-based items and affect the real economy.

He said, "If we devalue the local currency to Tk 75 from Tk 68-69 it would not help improve the export competitiveness even by one percent."

"Rather it would raise the cost of doing business," Ahmed said and suggested measures for reducing cost of doing business instead of Taka devaluation.

"We don't do REER based exchange rate deliberately and it's rational to do so," he said, adding that the approach is to avert exchange market volatility that transmits and affects even the real sectors like agriculture, light engineering and SMEs.

On the cross-currency transaction with largest trading partners like China and India, he said, " Our cross-currency transaction is much less than that in dollar. It would be like stepping into a danger zone. We should avoid it as best as possible."

He recommended increasing foreign exchange reserve as much as possible to face any disaster.

Dr Debapriya Bhattacharya said in an import dependent country like Bangladesh, it is needed to increase domestic investment and it is not possible to boost its external trade only through depreciation of the local currency rather other macro-economic measures could be taken.

He emphasized the need for lowering bank interest rates to help promote export-led industries and other sectors to raise domestic investment by generating employment.

http://nation.ittefaq.com/issues/2009/07/17/news0135.htm

Remittance exceeds $6.0b in 7 months :cheers:


Bangladeshi expatriates living in different countries remitted 6.05 billion US dollars in the last seven months despite the ongoing global recession. Overseas Employment and Expatriate Welfare Minister Khandaker Mosharraf Hossain disclosed this Friday when a nine-member delegation of European-Bangladesh Federation of Commerce and Industry met him at his office. Mosharraf told the delegation that some 2,58,903 Bangladeshis went to different countries in the last seven months for doing various jobs. — BSS

Source:http://www.thefinancialexpress-bd.com/2009/08/08/75504.html

Interestingly, in our final class of the semester on "Managerial Economics" we discussed why IMF and World Bank are complete failures and developing countries dislike them. Our professor suggested a complete rehaul of the above organizations to make them effective.

I have talked to him multiple times about economic situation in Bangladesh and what can be done to improve it.. some of which I have shared through my posts.

Thanks for sharing these vids bro---FDI is definitely one of the things we need to increase dramatically.Also I agree that instead of depreciating taka,lowering interest rates might be a better option to promote investment

True observation, but I will give some credit to the government(both current and previous), in streamlining the legal channel through which remittance is sent. As a result of these initiatives, remittance through proper channel has grown by double digit over the last 3-4 years.

That is probably true. I will add that all governments, present and future, should continue to facilitate and promote remittance through legal channels until it reaches over 90%.

Isn't that the case with every country? (Except commodity exporters)
Yes probably, but only the countries with capitalistic westernized economies. Bangladesh has a long way to go.

Rolling remittance in investments
brings them fortune
Staff Correspondent

Suraiya Yasmin, a housewife from Tangail’s Kalihati upazila, radically changed the fortune of her family by sensibly using the remittance sent from Saudi Arabia by her husband in last ten years.
The energetic lady used her expatriate husband’s remittance in different income-generating activities that enabled her constructing a building with Tk 40 lakh, setting up of a poultry firm, purchasing land worth Tk 1.25 crore and having a fixed deposit in bank worth Tk 50 lakh.
Suraiya’s extraordinary achievement earned her the reward to be one of three best users of remittance in Monday’s Remittance Utsob and Shonar Manush Shommanona, 2009.
Sobhan Mollah of Dhaka’s Keraniganj and Mozaffar Alam are the other two award recipients for best utilisation of remittance. Like Suraiya, these two individuals have also brought remarkable changes to their families by using the remittance sent by their relatives.
Meanwhile, Abdul Halim Chowdhury from Comilla and Ruhul Amin of Dhaka got Shonar Manush awards for bringing outstanding amount of remittance to the country.

Source:http://www.newagebd.com/2009/aug/11/busi.html#1

Remittance gives confidence to economic prosperity: Muhith

UNB, Dhaka

Overwhelmed by the contribution of foreign remittance by around 7.5 million non-resident Bangladeshis (NRBs), Finance Minister AMA Muhith on Monday said no one can resist Bangladesh' s economic progress. "No one can resist our development as we've agents of change (NRBs)," he said while addressing the concluding session of a daylong Remittance Utsab (festival) at Bangabandhu Int’l Confce Centre (BICC).
Refugee and Migratory Movements Research Unit (RMMRU) of Dhaka University organized the festival to honour the "unsung heroes" for their contributions to the national economy and sensitize the policymakers to solve the problems being faced by them. During the last fiscal year, NRBs remitted US$ 9.6 billion, which is 12 percent of the total yearly national income, nine times of the net inflow of foreign direct investment (FDI) and double the net export earnings from readymade garments.
The Finance Minister assured the NRBs of solving their problems and advised not to lose courage in the face of any difficulties at home and the workplaces abroad. "We understand your worries, which we cannot solve overnight," he said. He requested the NRBs to let the policymakers know their complaints. "We might be inefficient in solving problems… that does not mean we ignore you." The awards titled 'Sonar Manush Shonmanona - 2009' (awarding the golden people) were conferred to three people from migrants rights activists, 11 bankers, three recruiting agencies, two individuals, who came back and utilized the remittance in profitable projects and three remittance-receiving families.
Speaking on the occasion, Bangladesh Bank Governor Dr Atiur Rahman congratulated the remitters who contributed towards maintaining a surplus balance for the last few years in the country's Balance of Payment (BoP) position.He stressed the need for reducing the costs of migration and the remittance sending at the shortest possible time, and called upon the commercial banks to play their part in these regards.
Expatriate Welfare Minister Engr Mosharraf Hossain called upon recruiting agencies to reduce the migration costs and assured them of all necessary support from the government. "Don't kill the gooses that lay golden eggs," he said.Earlier at the opening session of the festival, noted economist Prof Wahiduddin Mahmud said the government or the Bangladesh Bank always mentions about the economic contributions of the expatriate workers, but no one think about their problems. He stressed the need for collecting detailed data of the workers on their working environment abroad, sufferings they endure while returning home, and on how they spend the hard-earned foreign currencies.
"The government keeps only the records of the number of people went abroad and the amount of foreign currencies they sent back home," he said, expressing dissatisfaction as the authorities considering the sector as a mere informal one.

Source:http://www.thebangladeshtoday.com/leading%20news.htm#lead%20news-02

Bangladesh To Export 400 Million Bricks To Northeast India
August 13, 2009 11:00 a.m. EST

Dhaka, Bangladesh (AHN) - Bangladesh is set to export 400 million bricks to northeastern Indian beginning Aug. 20 with the goal of minimizing the trade gap between the two countries, a top business leader told AHN Media Thursday.

"We are going to supply 400 million pieces of brick worth $29 million (BDT 2.00 billion) to northeastern Indian state Tripura from Aug. 20," President of the Bangladesh-India Chamber of Commerce and Industry (BICCI) Abdul Matlub Ahmad told the AHN in the capital, Dhaka.

The export will be carried out under an arrangement between the BICCI and the Tripura Chamber of Commerce and Industry.

"We expect that out exports to the northeastern Indian states to increase to $1.0 billion by 2011," Mr Ahmed said, adding that Bangladesh is now exporting large quantities of stone chips, cement, plastic goods, readymade garments, agro-products and frozen food to Tripura.

The trade position, however, is still in favor of India and the trade gap between the two countries stood at $3.016 billion in fiscal 2007-08 (FY08).

In FY08, Bangladesh exports to India stood at $358.08 million against import figures of $3.375 billion, leaving a gap of $3.016 billion, according to the statistics, compiled by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

http://www.allheadlinenews.com/articles/7016088973?Bangladesh%20To%20Export%20400%20Million%20Bricks%20To%20Northeast%20India

Local interior decors shoring up foothold

http://www.thedailystar.net/photo/2009/08/16/2009-08-16__b03.jpg


Bangladeshi products meant for interior decoration are gradually getting a strong foothold in domestic market, as many local companies have sprung up over the past few years on increased demand for less expensive but quality items.

The items like sanitary ware, tile, aluminium products including doors and windows, bathroom fitting and cable now drive out foreign products.

Sector people attribute the present position to the local realtors' quest for low cost but quality interior materials to make apartments affordable to customers.

In a span of only eight years, local makers of such materials have been able to grab a major market share, they said.

Rashed Mowdud Khan, president of Bangladesh Ceramic Ware Manufacturers Association, said, “You can even buy a square foot of tile for only Tk 30 now, which was Tk 130-140 seven to eight years back. It has become possible, as local manufacturers in a bigger way have come into the scenario. Earlier, a major portion of the local demand for the item was met through imports.”

Khan also pointed to the fact that availability of cost-effective tiles has driven out mosaic largely from the market. “I guess local manufacturers account for more than 65 per cent market share of domestic tile consumption,” he said.

Around seven companies now exist in the market, of which where RAK Ceramics (Bangladesh) Pvt Ltd and Bangladesh Insulator & Sanitary Ware Factory Ltd are on the front line. RAK Ceramics is a joint venture with the United Arab Emirates, while the other is a state-run enterprise. These two companies also manufacture sophisticated bathroom fittings and other equipment.

"We produce around 2,700 pieces of sanitary ware every month,” a sales executive of RAK Ceramics said.

The chief of the trade body for ceramic ware manufacturing sector is also upbeat on the item's exports in a very near future.

Meanwhile, demand for local doors, made of wood, plastic and aluminium, is also on the rise.

“Even five-six years ago, most readymade doors in the local market were foreign, but things have changed with the entry of different local companies who make quality wood and plastic doors,” said M Shamim Ullah, proprietor of Shamim and Brothers, a door vendor and manufacturer in the capital.

Around 10 companies are producing doors with reputation, according to an official of a renowned furniture company.

"Now most buyers are enthusiastic about locally made doors because these are durable," said Ranjit Roy, an assistant manager (Sales and Marketing) of Akhtar Furniture Ltd.

Besides, local companies are making aluminium-made doors, windows and stairs as an alternative of wood products.

"Now the demand for aluminium-made interior material in the construction sector is fully met by local makers. But things were different just eight years back when the sector was import-dependent for such item, " said M Moniruzzaman of Ornate Thai Aluminium.

The annual turnover of the aluminium industry is around Tk 1,000 crore, according to industry insiders.

President of the Real Estate and Housing Association of Bangladesh (REHAB) Tanveerul Haq Probal said realtors prefer to use local products as manufacturers offer warranty and also provide after-sales-services.

“People in the downtown prefer locally made interior materials as those are cheaper,” he added.

http://www.thedailystar.net/newDesign/news-details.php?nid=101581

^^ I have been out of Bangladesh for 8 years, looks like we have made huge progress in the interior decor sector. I am really pleased to see local industries growing out in many directions outside of garments, textiles and pharmaceuticals.

Recently our house was converted to an apartment and my brother was mentioning the high quality Bangladeshi fittings available in the market.

Per capita income increases to USD 690

Bangladesh Sangbad Sangstha . Dhaka
Despite decrease in the Gross Domestic Product, the per capita income increased in the 2008-09 fiscal year, ended on June 30.
The latest data of the Bangladesh Bureau of Statistic shows per capita income rises to US690 dollars at the end of June this year, which was US608 dollars in 2007-08 financial year.
‘The per capita income rises due to the increase in the remittance inflow and export earning,’ said economist professor Abu Ahmed.
Besides, he said the GDP declined slightly last year, but growth in agriculture sector was positive, which also helped increase per capita income.
According to the BBS statistic, the per capita income in local currency was Taka 47,373 and the population was 14.42 crore in the 2008-09 financial year.
The statistic also showed law inflation during the period, which was a major contributory factor to the increase in the per capita income.
The point-to-point inflation decreased to a six-year low of 2.25 in the end of June. Earlier in 2003, the country saw the lowest 2 per cent inflation on point-to-point basis. The inflation, however rose to a record high of 11 per cent in January 2008, according the BBS statistics.
http://www.newagebd.com/busi.html#5

^^

another good news =]

Good move, we need to build the supporting framework to have a fully functional and reliable market economy.

Bangladesh Starts Preparation For First Credit Rating Report
August 20, 2009 1:19 p.m. EST

Siddique Islam - AHN Correspondent
Dhaka, Bangladesh (AHN) - Bangladesh has started preparation for providing necessary data to the Standard & Poor's by September next for the country's first credit rating report, officials told AHN Media on Thursday.

The contact team of Bangladesh Bank (BB), the country's central bank, asked the authorities concerned on the day to provide macroeconomic historical data of Bangladesh at the earliest to facilitate preparation of the credit rating report, officially known as sovereign rating.

The request was made at a meeting of the team at the central bank in Dhaka with its Chairman and Economic Advisor of the BB Habibullah Bahar in the chair.

"We've started preparation for the first credit rating report through providing necessary data to the Standard & Poor's. We expect that collection of the historical data from different government agencies will complete by the end of this year," Senior Executive Director of the BB Khandakar Muzharul Haque told AHN in Dhaka.

The BB will invite representatives of Standard & Poor's after collection of the data, Mr. Haque said, adding that the Moody's would be requested shortly for sending their work plan in this connection.

On June 25 this year, Bangladesh signed deals with the two top global rating agencies to analyze the country's financial health and come up with a rating of its credit-worthiness.

The BB officials said the country would get its first credit rating report by November this year, which will help get hold of an increasing amount of foreign funds.

A country needs to have credit rating if its government and companies want to float bonds in foreign currency, because investors - particularly those from the global financial hubs - evaluate such scores before making investments.

Lack of any rating by global agencies on Bangladesh's creditworthiness was cited as a major bottleneck to foreign direct and portfolio investments, another BB official told AHN, preferring anonymity. "We hope these deals would change that scenario."

The BB official also said both public and private sectors can mobilize loans from overseas sources at lower interest rates if the country has a good credit rating report.

http://www.allheadlinenews.com/articles/7016158609?Bangladesh%20Starts%20Preparation%20For%20First%20Credit%20Rating%20Report

^^

another good news =]

Very good news indeed.With exports and remittance poised to increase dramatically over the next few years,this per capita figure can only get better

This question is just out of curiosity on my part. Do we have any billionaires (in USD terms) in Bangladesh. India has the Mittals, Ambanis etc., but are there any that are in the upper $900 million and more?

I know a big majority are robber barons, but are there any whose income is not more than 30% thru corruption, meaning, they do have some legitimate businesses or even have investments that are worth close to a billion dollars?

This question is just out of curiosity on my part. Do we have any billionaires (in USD terms) in Bangladesh. India has the Mittals, Ambanis etc., but are there any that are in the upper $900 million and more?

I know a big majority are robber barons, but are there any whose income is not more than 30% thru corruption, meaning, they do have some legitimate businesses or even have investments that are worth close to a billion dollars?

Abul Khair Group has got a turnover of 4900 crore taka[700 million USD] while Meghna Group has a turnover of 4200+ crore taka[600 million USD].There are some other companies which may also have similar turnover.But I am not certain if any of the owners of these companies is a billionaire.Even if all the business tycoons fail,we can always count on T.R. ;]

our unofficial multibillionaire :)

Abul Khair Group has got a turnover of 4900 crore taka[700 million USD] while Meghna Group has a turnover of 4200+ crore taka[600 million USD].There are some other companies which may also have similar turnover.But I am not certain if any of the owners of these companies is a billionaire.Even if all the business tycoons fail,we can always count on T.R. ;]

I thought it would be more like the Jamuna or Bashundhara group people b/c their complexes and current projects are multi million dollar properties.

As for TR, I doubt he has a billion because stashing money away in foreign countries is not an easy task like yesteryears. Even the Swiss had to provide info on 4000 US citizens accounts on IRS' request. If he had anything in Dhaka, I'm sure the current govt. would have been going after it from the get go.

Most of the big businesses in Bangladesh are still family owned(private), thus it is very unlikely to find a billionaire. As the stock market becomes more vibrant and more companies go public, the expansion and growth will be much higher.

Also, it's easier to become billionaire in stocks(since stock prices fluctuate a lot), than hard cash in terms of asset and bank savings.

I thought it would be more like the Jamuna or Bashundhara group people b/c their complexes and current projects are multi million dollar properties.

As for TR, I doubt he has a billion because stashing money away in foreign countries is not an easy task like yesteryears. Even the Swiss had to provide info on 4000 US citizens accounts on IRS' request. If he had anything in Dhaka, I'm sure the current govt. would have been going after it from the get go.
irs is not equal to nbr

i think tr got more publicity then what he actually stole, and remember just because a company has a turnover of $1 the profit is also $1 it could be anything and these companies will always report less then what they have actually earned, i always thought mr yunus was the richest since he owns the grameen bank which in turn owns grameenphone the only profitable telecom operator in bd, then the stuff gets complex and dont forget the isphanis and kumudini they be ballin since the 1800s

i always thought mr yunus was the richest since he owns the grameen bank which in turn owns grameenphone the only profitable telecom operator in bd,

Haha no. Grameenphone is owned by telenor which is a norwegian company. They even use the same logo. Its CEO is Norwegian. All the money made by the cellphone companies goes out of the country.

I thot the owner of Aarong was the richest man in BD?

^^
i thought Partex lol.

^^ Hashem shaheb? Isnt he in jail now?

Haha no. Grameenphone is owned by telenor which is a norwegian company. They even use the same logo. Its CEO is Norwegian. All the money made by the cellphone companies goes out of the country.

I thot the owner of Aarong was the richest man in BD?
70% by telenor the rest by grameen telecom :)

Haha no. Grameenphone is owned by telenor which is a norwegian company. They even use the same logo. Its CEO is Norwegian. All the money made by the cellphone companies goes out of the country.

I thot the owner of Aarong was the richest man in BD?
its not like the money made by bengali companies also stay back home, yeah arong aka brac group seems to be loaded too, i still think its the isphanis or some top notch politician they just dont brag about it

^^ Hashem shaheb? Isnt he in jail now?
out on bail by now

Whos the richest politician in BD? I would think the clown known as Sa Qa Chowdhury.

Whos the richest politician in BD? I would think the clown known as Sa Qa Chowdhury.
naw either sh, kz, salman, noor ali, saifur rahman, tr and his bro, and the top notch of bnp al jatia party

how about the aktel guy, he made $330 million from just selling his state to Japan's NTT

Foreign reserve to be around $9.0 billion
IMF extends $735m to bolster forex reserve

FE Report

The International Monetary Fund (IMF) would give Bangladesh $735 million in late August and early September to bolster its foreign exchange reserve in the wake of the global economic recession.

The amount would be given not as a loan, but as a part of the global financial watchdog's stepped up effort to inject liquidity in the central banks across the globe.

IMF resident representative Jonathan Dunn told the FE that first chunk of the $630 million would be disbursed to Bangladesh Bank (BB) on August 28 and the second chunk of $105 million would come on September 9.

"Bangladesh is receiving the fund as part of the special drawing rights (SDR) allocation, which has been made to all 186 IMF members," he said.

The IMF Bangladesh chief made the comments, clarifying the BB governor's earlier remarks that the country would get around $700 million soft loan facility from the Washington-based multilateral agency.

"The media report which said that the IMF will give $700 million soft loan is not based on fact," he said at a seminar in the city.

The G-20 countires raised the fund size of IMF by $250 billion in April to increase SDR quota of members proportionately and the disbursement would be completed in Spetember, he said.

Currently, Bangladesh has a quota of SDR 533.30 million or $834.63 million in the IMF.

The fund from IMF would come as a further boost to the country's foreign exchange reserve which is now hovering around $8.20 billion.

"The injection of such a huge fund would take the reserve to around $9.0 billion, covering an import payment of at least five months," a central bank official said.

"It means our reserve would hold sway to any fallout stemming from the global downturn," he said.

A visiting IMF team had earlier offered loan assistance to Bangladesh to stabilise its balance of payments (BOPs) and help the country face the fallout from the global recession, said the BB governor.

Bangladesh has said no to the offer, as the country's banking system escaped the global onslaught on banks, while exports rode out the crisis thanks to its cheap prices.

The country last received more than half a billion dollar anti-poverty softy loan facility from the IMF during the tenure of the Bangladesh Nationalist Party (BNP)-led government.

http://www.thefinancialexpress-bd.com/2009/08/24/77044.html

^^

:banana::banana::banana:

^^
nice :)

I still remember the days we were cheering because it had reached 4 bn.

I still remember the days we were cheering because it had reached 4 bn.

Same here....4bn used to be a dream before:lol:

Trade deficit falls
Bdnews24.com . Dhaka

Bangladesh’s trade deficit fell for the first time last year by more than half a billion dollars. Economists said import costs remained low over the last fiscal due to the depressed prices of oil, food and fertiliser in the global market amid the economic downturn.
The low import costs led to a reduced gap, despite a fall in exports, counter to the country’s previous history of widening trade deficits year-on-year.
Bangladesh Bank governor Atiur Rahman told bdnews24.com on Monday the reduced trade deficit has been good for the country’s balance of payments. He also praised farmers, for bumper crops last year, and ‘farmers’ sons, the remitters’, for their contributions to the economy.
The trade deficit stood at $6.94 billion for FY 2008-09, down by $576.39 million from the previous year.
The $7.52 billion trade deficit in FY 2007-08—a year of natural disasters for Bangladesh coupled with food and oil price hikes in the global market—was nearly double the $3.45 billion deficit of FY 2006-07.
Bangladesh Bank data shows imports costs rose by just 4.06 per cent last fiscal, compared to a 26.07 per cent increase in FY 2007-08 over FY 2006-07.
According to the central bank, Bangladesh imported goods worth $22.50 billion last fiscal, and $21.63 billion in FY 2007-08.
Low import costs more than offset accompanying low growth in the export sector.
Exports grew by just 10.31 per cent in the last fiscal year, compared to 27.45 per cent in FY 2007-08.
The country’s exports totalled $15.56 billion in the last fiscal, compared to $14.11 billion the previous year.
Bangladesh Bank boss Atiur Rahman said the reduced trade deficit has positively impacted the country’s economy and balance of payments, despite the slow growth in both imports and exports.
‘Reserves reached a more than satisfactory level and are increasing daily. Foreign reserves surpassed $7 billion just one-and-a-half months ago and now stands at $8.3 billion,’ said Rahman.
He said remittances from overseas workers have contributed to the country’s reserves: ‘We can say farmers and their sons are contributing the most overall to our economy.’
‘On one hand, farmers are saving our foreign currency from being used to import food with their bumper crops, and on the other hand their sons are sending back foreign currency earned through their backbreaking labour overseas,’ said Rahman.
Zaid Bakht, senior research director of Bangladesh Institute of Development Studies, also said the trade deficit had fallen because food imports came down almost to zero and the cost of fuel and fertiliser had reduced in the global market.
‘However, imports of capital machinery also reduced, and this is evidence of one kind of sluggishness in the economy in terms of investment,’ said Bakht.
‘Whatever the reserves are, no benefits will come if investments do not grow in the country,’ he said.
Imports of rice came down to almost zero last fiscal as a result of bumper Boro and Aman crops.
This was in contrast FY 2007-08, when the twin disasters of flooding and Cyclone Sidr caused widespread damage to many crops, and a global food crunch caused prices to spiral in the international market.
The price of rice reached $1,000 from $400 per tonne that year, which combined with rapidly increasing prices of fertiliser and oil to imports more costly compared to any time in the past.
Imports of rice and wheat declined by 38.31 per cent in the last fiscal year in comparison to the 2007-08 FY.
Although it increased by 142.72 per cent in the 2007-2008 FY compared to the previous one.

Source:http://www.newagebd.com/2009/aug/26/busi.html#3

An article from BBC today. Particularly interesting for me, the date of 2014 for NG running out. I had not previously seen a date before, and had not expected a date that soon. Hope the new exploration is successful, and that BD's oceanic territorial sovereignty is respected.

Oil firms win Bangladesh rights

Bangladesh has granted Conoco Phillips of the US and Ireland's Tullow Oil three offshore exploration blocks in disputed waters in the Bay of Bengal.

The firms have been given the right to explore for gas, despite ownership claims on some of the territory by neighbouring India and Burma.

The oil firms will spend $160.5m (£98m) on exploring the area.

The offshore bidding round was introduced last year by the then army-backed interim government.

Consumption rate

"The government approved the leasing out of two deep-water offshore gas blocks to Conoco Phillips and one shallow water block to Tullow for oil and gas exploration in the untapped areas of the Bay of Bengal," said Mohammad Muqtadir Ali, of state-run Bangladesh Oil, Gas and Mineral Corporation.

The results of the exploration by the two firms should come within five years.

"The government is not in favour of awarding more than two blocks to a single company," Mr Ali added.

The decision on awarding the gas blocks was made by the elected government, which came to power in a late-2008 election.

Award of the gas exploration contracts has been made after it was estimated that the country's current gas reserves would run out by 2014-2015 at the present consumption rate.

An article from BBC today. Particularly interesting for me, the date of 2014 for NG running out. I had not previously seen a date before, and had not expected a date that soon. Hope the new exploration is successful, and that BD's oceanic territorial sovereignty is respected.

That sounds rather grave. What is Bangladesh going to do, if no new hydrocarbon resources are discovered? I understand Burma has plenty of NG. Perhaps it is time Bangladesh negotiate a pipeline with Myanmar?

^^ No, China is their priority customer.

That sounds rather grave. What is Bangladesh going to do, if no new hydrocarbon resources are discovered? I understand Burma has plenty of NG. Perhaps it is time Bangladesh negotiate a pipeline with Myanmar?

Yes it is, I think Bangladesh has multiple options to face the eminent energy crisis.

1) Emphasize Natural gas exploration at Bay of Bengal (it is estimated to have huge reserve)

2) Focus on building Nuclear Power plants

3) Work with Nepal to import power generated through Hydroelectric plants upstream.

4) Negotiate with Myanmar on gas pipeline (as you mentioned)

The Ministry of Finance today announced to open 7 new embassies of Bangladesh in Middle East, Africa, and Europe to export manpower and increase exports of Bangladeshi goods. The 7 countries are Lebanon, Greece, Romania, Mauritius, Angola, Botswana, and Sudan.

I dont get why we need Angola and Botswana at this stage lol. I was hoping New Zealand, Argentina or sumthin like tht

....I dont get why we need Angola and Botswana at this stage lol. I was hoping New Zealand, Argentina or sumthin like tht...

Well African countries have far more demand for Bangladeshi products like Pran Juice and cookies. Look here (http://www.newagebd.com/2009/aug/23/busi.html#6). The Markets in NZ and Argentina are saturated already...

^^
lol I meant about establishing embassies in Argentina and New Zealand. The only Bangladeshi mission in Latin America is in Brazil and also, New Zealand is quite important to us as NewZealand exports dairy products to BD and Bangladeshi students go to Aussie/ NZ to study.

The Road to $10.0 Billion

IMF fund helps forex reserve cross $9.0b

Siddique Islam

The country's foreign exchange reserve has crossed US$9.0-billion mark for the first time, after a substantial amount of fund was received from a multilateral donor agency, officials said Tuesday.

The International Monetary Fund (IMF) has released funds worth $630 million as part of the special drawing rights (SDR) allocation, which has been made to all 186 IMF members.

The foreign exchange reserve rose to around $9.18 billion on the day from $8.53 billion of the previous day following disbursement of the fund by the IMF, the central bank officials said.

"The country's foreign exchange reserve crossed $9.0 billion on the day setting a new record in the history of Bangladesh," Deputy Governor of the Bangladesh Bank (BB) Ziaul Hassan Siddiqui told the FE.

He also said the foreign exchange reserve may decline slightly this week after a routine payment is made to the Asian Clearing Union (ACU).

The central bank is set to pay $530 million to the ACU against imports for the July-August period of this calendar year, the officials confirmed.

"We expect that the foreign exchange reserve would stay at around $9.0 billion even after making payment to the ACU," Mr. Siddiqui said without elaborating.

The Washington-based multilateral donor agency would provide additional $105 million shortly to bolster the country's foreign exchange reserve in the wake of the global economic recession, the BB officials said.

The total $735 would be given not as loan, but as part of a global financial watchdog's stepped up effort to inject liquidity in the central banks across the globe, they added.

The G-20 countries raised the fund size of IMF by $250 billion in April to increase SDR quota of members proportionately and the disbursement would be completed in September this year.

Currently, Bangladesh has a quota of SDR 533.30 million or $834.63 million in the IMF.

Besides, the central bank continues its intervention in the inter-bank foreign exchange market through purchase of the US currency directly from commercial banks, which has also pushed the foreign exchange reserve up.

As part of the move, the central bank of Bangladesh purchased $1.024 billion from commercial banks until September 1 this fiscal.

In fiscal 2008-09, the BB bought a total of $1.48 billion directly from the commercial banks against only $202.50 million of the previous fiscal, according to the central bank statistics.

The ACU is an arrangement among Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan and Sri Lanka to settle payments for intra-regional transactions through the participating central banks on a multilateral basis.

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.

http://www.thefinancialexpress-bd.com/2009/09/02/77903.html

Now, I couldn't find any information on this on the internet, so could someone help me out here? Maybe through Bangladeshi language sites, could you find me the names of

1. A US$ billionaire in Bangladesh (or more).
2. A US$ billionaire Bangladeshi abroad (or more).
3. A $-billion entreprise from Bangladesh (or more)

I'd like it if you could prove your claims with authentic sources, rather than hearsay or rumours.

I'm sorry if it troubles you, but I couldn't find any information on the above.

Cheers mate.

Now, I couldn't find any information on this on the internet, so could someone help me out here? Maybe through Bangladeshi language sites, could you find me the names of

1. A US$ billionaire in Bangladesh (or more).
2. A US$ billionaire Bangladeshi abroad (or more).
3. A $-billion entreprise from Bangladesh (or more)

I'd like it if you could prove your claims with authentic sources, rather than hearsay or rumours.

I'm sorry if it troubles you, but I couldn't find any information on the above.

Cheers mate.


None exist officially I believe........

Unofficially some of our very corrupt politicians and their sons might fall into category 1.

Now, I couldn't find any information on this on the internet, so could someone help me out here? Maybe through Bangladeshi language sites, could you find me the names of

1. A US$ billionaire in Bangladesh (or more).
2. A US$ billionaire Bangladeshi abroad (or more).
3. A $-billion entreprise from Bangladesh (or more)

I'd like it if you could prove your claims with authentic sources, rather than hearsay or rumours.

I'm sorry if it troubles you, but I couldn't find any information on the above.

Cheers mate.

Most of the large Bangladeshi businesses are privately owned and does not share information publicly. The stock market is growing and recently some large corporations are showing interest in IPO. I believe Grameen Telecommunications is going to go public in October,the largest one in the nation with net worth around half a billion.

^^ GrameenPhone is valued at $3.2 Billion Dollars.

-There are quite a lot of large companies in Bangladesh but most of them are privately owned.

^^
correction: Grameenphone is valued at $4 Billion

Don't take it the wrong way, I am just learning.

Why is it that India has so many billionaires, both home and abroad and Pakistan has a handful of billionaires, again, both home and abroad but Bangladesh doesn't?

I know Bangladesh gained independence late, but then I thought Bangladesh is the most peaceful nation out of India, Pakistan, Sri Lanka and Bangladesh. That should have helped accelerate development in Bangla, isn't it?

Cheers.

Don't take it the wrong way, I am just learning.

Why is it that India has so many billionaires, both home and abroad and Pakistan has a handful of billionaires, again, both home and abroad but Bangladesh doesn't?

I know Bangladesh gained independence late, but then I thought Bangladesh is the most peaceful nation out of India, Pakistan, Sri Lanka and Bangladesh. That should have helped accelerate development in Bangla, isn't it?

Cheers.

Most of the Indian billionaires are of Indian origin but happen to be foreign citizens. Plus they are more likely to be billionaires because they have a HUGE domestic market, the sheer size of their population is staggering.

Bangladesh may not have billionaires but we do have many many multimillionaires- and trust me we don't want any more- what we really want to do is reduce the income gap between the rich and the poor.

Remittance flashes global recovery signs
Forex reserve crosses $9b mark

Rejaul Karim Byron


The remittance inflow increased by 18.22 percent in the first two months of the current fiscal year which Bangladesh Bank officials described as moderately good. The growth of inward remittance points to early signs of a bounce-back in the world economy from the financial crisis.According to BB statistics, the remittance inflow soared 30 percent to $937.91 million in August, up from $721.92 million in the same period last year. Inward remittance has jumped as expatriates are sending more money to their relatives on the eve of Eid-ul Fitr.

The central bank's foreign currency reserves reached $9,149.57 million for the first time yesterday -- boosted by remittance growth and a partial release of IMF's special recovery fund. In the July to August period of the current fiscal year, the total remittance inflow was $1,823.29 million, a rise from $1,542.63 million in the same period a year earlier. Bangladesh recorded average remittance growth at 22.42 percent last fiscal year. In fiscal 2007-08, the growth was higher at 32.39 percent.

Central bank officials said the global recession had slowed the remittance inflow last fiscal year. In July, the remittance growth was a paltry 7.80 percent. The International Monetary Fund has set aside 463.3 SDRs (Special Drawing Rights) equivalent to $735 million in recovery funds for Bangladesh. Of the amount, the lending agency has already given $630 million to Bangladesh early this week. With much of the world still mired in recession, IMF moved to bolster its members' reserves through an allocation of SDRs.

The allocation, equivalent to $250 billion, was made on August to be followed by an additional, but smaller, amount of $33 billion on September 9. There are no notes or coins denominated in SDR, but it plays a role as an interest-bearing international reserve asset as the unit can be tuned into a usable currency. SDRs provide liquidity into the global economic system. OECD said yesterday added its voice to forecasts that a fragile global rebound is taking shape.

The United States and the eurozone are set to break out of recession in the third quarter, according to latest reports. With the pace of US economic decline slowing and with the eurozone economy actually expanding in August, OECD chief economist Jorgen Elmeskov pointed to a recent "run of good news"

Friday, September 4, 2009 , The Daily Star

I believe, it’s just a matter of couple of months, when the remittance inflow will cross 1 Billion mark.

Don't take it the wrong way, I am just learning.

Why is it that India has so many billionaires, both home and abroad and Pakistan has a handful of billionaires, again, both home and abroad but Bangladesh doesn't?

I know Bangladesh gained independence late, but then I thought Bangladesh is the most peaceful nation out of India, Pakistan, Sri Lanka and Bangladesh. That should have helped accelerate development in Bangla, isn't it?

Cheers.

You should ask an economist for detailed analysis. Just because we are Bangladeshis doesn't mean we have all the answers :) We can only speculate..

Bangladesh have the highest population density among the 3 countries and has extremely limited resources (India is 20 times larger in size,but population is only 9 times, Pakistan is 5.5 times of Bangladesh with a population only slightly higher than ours). But inspite of these challenges we have done well in number of basic social indicators like infant morality rate, access to sanitation etc (we are better than India/Pakistan in both criteria according to WHO report).

Also,once economic development starts accelerating a country can change very fast. For example, India's forex reserve as late as 1991 was only $ 1billion, now it's a staggering 270 billion. At that point of time they only had 2-3 billinaires, now they have a few dozen. Bangladesh is just beginning to take off economically, so the results will come soon. Already our reserve has grown 10 times in last 5 years, companies like Grameen is worth 4 billion dollars, things which were not possible just a few years back.

Forex Reserve to hit 10 billion very soon
Bangladesh bank: fx inflows threaten inflation
Tue Sep 8, 2009 5:12pm IST

MUMBAI, Sept 8 (Reuters) - Bangladesh's foreign exchange inflows pose a threat to its inflation, which is set to end the fiscal year at 6.5 percent from less than 6 percent now, the country's central bank chief said on Tuesday. "Reserves will be touching $10 billion very soon. Managing surplus is becoming a problem ... Unless we can invest some of these dollars, chance is that inflation can pick up," Atiur Rahman said on the sidelines of a banking conference in Mumbai.

Bangladesh received a record $937.91 million in remittances from workers overseas in August, up 30 percent from a year earlier, and on Sept. 1 its exchange reserves surged to an all-time high of more than $9 billion. [ID:nDHA87883]

Rahman said the country's economy would grow more than 6 percent in the current fiscal year ending June 2010, compared with an earlier official projection of 5.5-6 percent growth.

Exports will grow to above the $16 billion estimated for the current year, he said, adding that as of April, the country's exports stood at $11.75 billion.

Bangladesh's exports rose 10.3 percent to $15.6 billion in the 2008/09 fiscal year, the lowest growth in six years. [ID:nDHA535617] (Reporting by Neha D'Silva; Editing by Ranjit Gangadharan)

Source:http://in.reuters.com/article/domesticNews/idINBMA00587720090908

Don't take it the wrong way, I am just learning.

Why is it that India has so many billionaires, both home and abroad and Pakistan has a handful of billionaires, again, both home and abroad but Bangladesh doesn't?

I know Bangladesh gained independence late, but then I thought Bangladesh is the most peaceful nation out of India, Pakistan, Sri Lanka and Bangladesh. That should have helped accelerate development in Bangla, isn't it?

Cheers.

India I would say is too large a nation[economy,size,population,etc] to be compared with Bangladesh but comparing with Pakistan is fine.I think that Pakistan might have more billionaires because its stock markets are much more mature than the ones in Bangladesh which are still relatively small.This is true despite the fact that Bangladesh's exports are worth nearly 16 billion[compared to Pakistan's nearly 18 billion],Bangladesh's imports are worth 22 billion[compared to Pakistan's 35 billion] and remittance is above 9 billion[compared to Pakistan's 8 billion] and foreign currency reserve is above 9 billion[which would probably be higher than Pakistan's had it not been for IMF's recently sanctioned bail out loans to the country]

Mirza and everyone else - please do not reply to dean251182jones. He has made several posts...seemingly very innocent...but all asking why Bangladesh is backward relative to other countries. His intent is not honest inquiry but rather to provoke an emotional response among us. I have advised him of subforum rules with regard to such behavior, in reply to another of his posts.

Mirza and everyone else - please do not reply to dean251182jones. He has made several posts...seemingly very innocent...but all asking why Bangladesh is backward relative to other countries. His intent is not honest inquiry but rather to provoke an emotional response among us. I have advised him of subforum rules with regard to such behavior, in reply to another of his posts.
So, my hunch was correct.

Mirza and everyone else - please do not reply to dean251182jones. He has made several posts...seemingly very innocent...but all asking why Bangladesh is backward relative to other countries. His intent is not honest inquiry but rather to provoke an emotional response among us. I have advised him of subforum rules with regard to such behavior, in reply to another of his posts.

I was guessing that

Forex Reserve to hit 10 billion very soon
Bangladesh bank: fx inflows threaten inflation
Tue Sep 8, 2009 5:12pm IST

MUMBAI, Sept 8 (Reuters) - Bangladesh's foreign exchange inflows pose a threat to its inflation, which is set to end the fiscal year at 6.5 percent from less than 6 percent now, the country's central bank chief said on Tuesday. "Reserves will be touching $10 billion very soon. Managing surplus is becoming a problem ... Unless we can invest some of these dollars, chance is that inflation can pick up," Atiur Rahman said on the sidelines of a banking conference in Mumbai.

Bangladesh received a record $937.91 million in remittances from workers overseas in August, up 30 percent from a year earlier, and on Sept. 1 its exchange reserves surged to an all-time high of more than $9 billion. [ID:nDHA87883]

Rahman said the country's economy would grow more than 6 percent in the current fiscal year ending June 2010, compared with an earlier official projection of 5.5-6 percent growth.

Exports will grow to above the $16 billion estimated for the current year, he said, adding that as of April, the country's exports stood at $11.75 billion.

Bangladesh's exports rose 10.3 percent to $15.6 billion in the 2008/09 fiscal year, the lowest growth in six years. [ID:nDHA535617] (Reporting by Neha D'Silva; Editing by Ranjit Gangadharan)

Source:http://in.reuters.com/article/domesticNews/idINBMA00587720090908

Wow !!

$10 billion in Forex is extremely impressive , Pakistan with around $6 billion from IMF has around $12 billion or so.

Mirza and everyone else - please do not reply to dean251182jones. He has made several posts...seemingly very innocent...but all asking why Bangladesh is backward relative to other countries. His intent is not honest inquiry but rather to provoke an emotional response among us. I have advised him of subforum rules with regard to such behavior, in reply to another of his posts.

The guys a nut. You should read some of his posts on other subforums. Doesnt make any sense at all

Wow !!

$10 billion in Forex is extremely impressive , Pakistan with around $6 billion from IMF has around $12 billion or so.

Yeah, if only the Govt had initiated economic reforms earlier, Bangladesh would have been in much different place.

Wow !!

$10 billion in Forex is extremely impressive

Yeah..and esply when u keep in mind that our Foreign Currency Reserve was 0.9Billion US Dollars just 8 years ago:nuts:

^^ Yeah, that could have escalated to something really bad! I do have to thank Mr. Saifur Rahman for steering the country out of that mess.

Earn a dollar, get a taka free

Govt plans new incentive for exporters

Asif Showkat

The government, in order to tackle the global recession, is planning to provide incentive of one taka for every dollar earned by exporters and by expatriate Bangladeshi workers who send home remittances, said official sources.‘We are examining the decision taken by the parliamentary standing committee on the finance ministry to provide incentives to the exporters and expatriates,’ said a senior official of the finance ministry.He also said that the finance minister would take the final decision about the incentive after consulting various stakeholders.

Sources said the finance ministry last week sought the opinion of the Bangladesh Bank on the parliamentary standing committee’s decision which, if implemented, is going to cost the government an estimated Tk 3,000 crore per year. The standing committee recommended that the government should provide incentive of one taka for each dollar earned by exporters and remitted by expatriate Bangladeshis. Local producers and manufacturers who export items through back-to-back letters of credit will not be eligible for the incentive, according to the proposal of the committee.

The government has set aside Tk 5,000 crore in the current budget as a stimulus package for the business sectors affected by the recent global recession. Meanwhile, the country’s exports slipped by 6.80 per cent in July compared to exports of the same month last year. The monthly export earnings in July stood at $1.44 billion, down from $1.54 billion last year, largely due to poorer performance of the garment sector. The country logged $15.8 billion in export earnings for 2008-09, falling 4.5 per cent short of the targeted $16.3 billion. But the remittances increased by 18.22 per cent in the first two months of the current fiscal year, which the Bangladesh Bank officials described as ‘moderately good’.

According to statistics, remittances soared by 30 per cent to $937.91 million in August this year, up from $721.92 million in the same month of the previous year. ‘Without enhancing the efficiency of the former channels, remittances through the legal channels will not increase and incentives will not persuade the expatriates to send home their remittances through them,’ said the Bangladesh Development Studies’ director general and the central bank’s former chief economist, Mustafa K Mujeri. He also said the demand for the country’s export items depends on the competitiveness of the local exporters and their ability to get new orders in the importing countries.

The Bangladesh Garment Manufacturer and Exporters Association’s former president, Anwar-Ul-Alam Parvez, said the government’s incentive to exporters would increase their competitiveness in the global market. ‘We also need the incentive to enhance the technical efficiency of the garment exporters,’ he added.

The New Age

Earn a dollar, get a taka free

Govt plans new incentive for exporters

Asif Showkat

The government, in order to tackle the global recession, is planning to provide incentive of one taka for every dollar earned by exporters and by expatriate Bangladeshi workers who send home remittances, said official sources.‘We are examining the decision taken by the parliamentary standing committee on the finance ministry to provide incentives to the exporters and expatriates,’ said a senior official of the finance ministry.He also said that the finance minister would take the final decision about the incentive after consulting various stakeholders.

Sources said the finance ministry last week sought the opinion of the Bangladesh Bank on the parliamentary standing committee’s decision which, if implemented, is going to cost the government an estimated Tk 3,000 crore per year. The standing committee recommended that the government should provide incentive of one taka for each dollar earned by exporters and remitted by expatriate Bangladeshis. Local producers and manufacturers who export items through back-to-back letters of credit will not be eligible for the incentive, according to the proposal of the committee.

The government has set aside Tk 5,000 crore in the current budget as a stimulus package for the business sectors affected by the recent global recession. Meanwhile, the country’s exports slipped by 6.80 per cent in July compared to exports of the same month last year. The monthly export earnings in July stood at $1.44 billion, down from $1.54 billion last year, largely due to poorer performance of the garment sector. The country logged $15.8 billion in export earnings for 2008-09, falling 4.5 per cent short of the targeted $16.3 billion. But the remittances increased by 18.22 per cent in the first two months of the current fiscal year, which the Bangladesh Bank officials described as ‘moderately good’.

According to statistics, remittances soared by 30 per cent to $937.91 million in August this year, up from $721.92 million in the same month of the previous year. ‘Without enhancing the efficiency of the former channels, remittances through the legal channels will not increase and incentives will not persuade the expatriates to send home their remittances through them,’ said the Bangladesh Development Studies’ director general and the central bank’s former chief economist, Mustafa K Mujeri. He also said the demand for the country’s export items depends on the competitiveness of the local exporters and their ability to get new orders in the importing countries.

The Bangladesh Garment Manufacturer and Exporters Association’s former president, Anwar-Ul-Alam Parvez, said the government’s incentive to exporters would increase their competitiveness in the global market. ‘We also need the incentive to enhance the technical efficiency of the garment exporters,’ he added.

The New Age
thats just unfair one taka on the dollar that aint even a cent and the garments party is getting 2 dollars on the dollar nice!

Earn a dollar, get a taka free


I think this is not a bad idea. I mean we already get the exchanged taka for our dollars, this would be just extra. Send $500, get extra 500 taka. A better incentive would be to not charge us any fees to send money home.

On a side note, I read in the forums here that there are inflationary pressures due to the forex reserves. The govt. really needs to put the money to good use instead of just having it sit in the vaults.

Since everything is tinged with corruption back home, how clean is Bangladesh Bank? Is there any scope of thieves, swindlers, cheats etc. taking a share of the reserve pie? I ask this because in almost every state controlled bank, the manager and other employees are involved in dubious behavior.

On a side note, I read in the forums here that there are inflationary pressures due to the forex reserves. The govt. really needs to put the money to good use instead of just having it sit in the vaults.


I read on several newspapers that to generate 1 Megawatt of electricity,we require 1 million dollars.At present,there is a shortage of around 2000 Megawatt in the country.That means 2 Billion dollars can solve the present crisis.
Now that the government has excess reserves,I think it should invest the money to generate enough power to solve the electricity crisis and facilitate industrial growth.This could also be the right time to invest in expressways,flyovers,subways.
Normally it is considered wise for a country to have forex reserves enough to cover four months of import...but since our imports are valued at only 22 Billion dollars,having 10 billion dollars of reserves wouldn't actually make sense..and all indications are that,our reserves will hit the 10 billion dollar mark very soon:nuts::cheers:

I think this is not a bad idea. I mean we already get the exchanged taka for our dollars, this would be just extra. Send $500, get extra 500 taka. A better incentive would be to not charge us any fees to send money home.

On a side note, I read in the forums here that there are inflationary pressures due to the forex reserves. The govt. really needs to put the money to good use instead of just having it sit in the vaults.

Since everything is tinged with corruption back home, how clean is Bangladesh Bank? Is there any scope of thieves, swindlers, cheats etc. taking a share of the reserve pie? I ask this because in almost every state controlled bank, the manager and other employees are involved in dubious behavior.

The author of that article is confused, all the forex is invested in US treasury bonds. Its never used inside BD, thus no inflation pressure.

I read on several newspapers that to generate 1 Megawatt of electricity,we require 1 million dollars.At present,there is a shortage of around 2000 Megawatt in the country.That means 2 Billion dollars can solve the present crisis.
Now that the government has excess reserves,I think it should invest the money to generate enough power to solve the electricity crisis and facilitate industrial growth.This could also be the right time to invest in expressways,flyovers,subways.
Normally it is considered wise for a country to have forex reserves enough to cover four months of import...but since our imports are valued at only 22 Billion dollars,having 10 billion dollars of reserves wouldn't actually make sense..and all indications are that,our reserves will hit the 10 billion dollar mark very soon:nuts::cheers:

Hi Mirza, I don think our power crisis is bought about by our lack of funds to build new power plants, instead it is mainly due to the lack of natural resources to generate adequate power. Hence we now have to look at options like Nuclear power ,Coal Power and Importing Power from neighbours to satisfy the growing demand. Hence we are largely dependent on Some tpe of import for power generation and the it is hard to get the fuels..

The author of that article is confused, all the forex is invested in US treasury bonds. Its never used inside BD, thus no inflation pressure.

SO far I know, BD Bank does not have significant investment is US Treasury bond. A big chuck was liquidated last year, please correct me if I am wrong.

Hi Mirza, I don think our power crisis is bought about by our lack of funds to build new power plants, instead it is mainly due to the lack of natural resources to generate adequate power. Hence we now have to look at options like Nuclear power ,Coal Power and Importing Power from neighbours to satisfy the growing demand. Hence we are largely dependent on Some tpe of import for power generation and the it is hard to get the fuels..

If that is the case,then perhaps excess foreign currency reserve can now allow us to go for import of coal from abroad to make use of coal-based power plants.In the mean time,we can formulate the coal policy,decide on where to mine etc.
Its quite clear that we have a good current account surplus,so importing coal shouldn't hurt.
Now that the government is going "bhai bhai" with india and is willingly to provide it facilities like transit,it may also be wise to push India to allow us to import electricity from Nepal or Bhutan through its territory.That could be a solution.

If that is the case,then perhaps excess foreign currency reserve can now allow us to go for import of coal from abroad to make use of coal-based power plants.In the mean time,we can formulate the coal policy,decide on where to mine etc.
Its quite clear that we have a good current account surplus,so importing coal shouldn't hurt.
Now that the government is going "bhai bhai" with india and is willingly to provide it facilities like transit,it may also be wise to push India to allow us to import electricity from Nepal or Bhutan through its territory.That could be a solution.
whats wrong with providing transit? if it can earn us some mullah!

^^

National security as BNP would say.

^^

National security as BNP would say.

hahha....Thanks to national security our internet service is probably the worst in the world...
:ohno:

^^

National security as BNP would say.

Yeah, everything stems from "national security". It is national security alright ... of/for the nations of BAL and BNP, sans Bangladesh!

hahha....Thanks to national security our internet service is probably the worst in the world...
:ohno:

"Amader tottho ber hoye jabe" :weird: hahahaha

Anyways I do hope our govt gets money from India for allowing transit. I dunno if India are gonna actually give us transit to Nepal and Bhutan. (Who wants transit to Bhutan anyways.)

^^ Actually, it would be nice if we got some transit with Nepal and Bhutan. Bangladesh can then easily export things like winter clothes, medicine, tableware and such to those countries and import fruits, power (hopefully), rocks and timber from those countries. Bangladesh can get a big slice of the market there. Nepal and Bhutan can also avail the services of Mongla port. With road transit facilities, trade can increase manifold, and can benefit all the countries.

I believe that transit facilities should be given to India through the waterways. Actually, it might be even better if transshipment is allowed. Either way can help Bangladesh to earn some foreign currency. I don't see how Bangladesh will be affected negatively by allowing transit facilities. I hope the government does not hold on to 'national security' and actually implement this project.

^^ Actually, it would be nice if we got some transit with Nepal and Bhutan. Bangladesh can then easily export things like winter clothes, medicine, tableware and such to those countries and import fruits, power (hopefully), rocks and timber from those countries. Bangladesh can get a big slice of the market there. Nepal and Bhutan can also avail the services of Mongla port. With road transit facilities, trade can increase manifold, and can benefit all the countries.

I believe that transit facilities should be given to India through the waterways. Actually, it might be even better if transshipment is allowed. Either way can help Bangladesh to earn some foreign currency. I don't see how Bangladesh will be affected negatively by allowing transit facilities. I hope the government does not hold on to 'national security' and actually implement this project.

Giving transit should be weighed carefully and not handled in a 'chele-khela' manner.

I believe by not giving transit Bangladesh gains wayyy more in the long run. The Northeastern Indian markets are already dependent on our products and I see significant industrial advantages on keeping it that way.

It is not a military question like everyone says -- but a commercial one.

And some in India (and some quarters in Bangladesh as well) like to peddle the idea that not giving transit is somehow 'criminal' or naturally 'wrong'. It is most definitely not. :)

We should do what benefits us commercially and not what benefits Indian manufacturers. Trust me -- it is Indian industrialists that want this and are pushing the Indian govt. for it.

In any case -- my point is, don't give transit. There is nothing beneficial in it for us at all. Even if there was no 'security' problem. Once you give transit -- there is no control on what passes through (including weapons, ammunition and everything else). The whole idea is preposterous to start with...:ohno:

And getting trade through Nepal transit is a paper tiger. Nepal trade is 100% controlled by Indian manufacturers and I don't see this changing at all. It is no advantage getting Nepal transit. Bhutan is a non-issue.

I do believe that once the deep seaport is built we can allow landlocked Nepal, Bhutan and North-east India to use it and we can gain money in the process.

Export to grow 9.0pc in FY10, projects Citigroup
Financial Express
FE Report

The country's export is expected to grow at a rate of 9.0 per cent in the fiscal 2009-10 (FY10), US-based Citigroup said in its latest projection.

This is a downward projection from 10 per cent it made in June this year.

With Bangladesh emerging as a 'supplier-of-choice', exports on a cumulative basis remained in positive territory, up 10.3 per cent during July-June period of the fiscal 2008-09 (FY09), according to the projection.

"However, we expect to see a moderation in export growth, to 9.0 per cent in FY 10 vs. (versus) an estimated 9.5 per cent in FY09," the Citigroup said in a report released Monday from Mumbai, India.

The Citigroup also said factoring in import growth at 5.5 per cent and healthy growth in remittances would result in the current account surplus coming in around 2.5 per cent of GDP in FY10 against an estimated 1.6per cent in FY09, according to the report.

"The taka is likely to assume a depreciating trend, to Tk 72.3 per US$ by the end of FY10 from the present level at Tk 69.1," it noted.

The Citigroup also sees that the country's overall economy will grow at a rate of 5.7 per cent in FY10 from 5.9 per cent in FY09.

Finance Minister AMA Muhith in his budget speech, delivered on June 11 this year in national parliament, projected the growth between 5.5 and 6.0 per cent in FY10.

"Despite natural disasters, political uncertainty and rising prices, Bangladesh has demonstrated tremendous resilience in past years," it observed.

The Citigroup expects these trends to continue going forward. "Our estimate factor in an uptrend in industry on the back of the government's efforts towards infrastructure development as well as healthy trends in services as trade activity sees some improvement," the report said.

On the expenditure side, public sector investment coupled with healthy trends in consumption will help sustain growth, it added.

The Citigroup said inflation has decelerated from double-digit levels in September 2008 to 5.0 per cent levels currently. Other monetary aggregates - trends in private sector credit growth and broad money growth - are also healthy but remain below the central bank's projected targets, it noted.

Projected targets the fiscal deficit is at 5.0 per cent of GDP in FY10 from 4.0 per cent in FY09. This is based on realistic assumptions with GDP growth at 5.5 per cent, a 21 per cent increase in expenditure and a 14.9 per cent in revenue.

On the expenditure front, the Citigroup thinks the focus on infrastructure development, which involved 28 per cent of total expenditure, expanded fiscal stimulus package, which is 1.2 per cent of GDP and introduction of new Public Private Partnership (PPP) budget are positive and will help support growth through a thrust on investment.

"However, implement targets may require concerted effort and political will," it noted.

Source:http://www.thefinancialexpress-bd.com/2009/09/16/79178.html

If Citigroup's forecast turns out to be right,then our exports for 2009 will become 17.1 Billion US Dollar and our Imports will be equal to 23.2 Billion.With the projected remittance of 10.8 Billion,our Foreign currency reserves should easily cross 13.5 Billion by the end of the year:banana:

Before talking about transit, Bangladesh needs to upgrade it's road and highways. I don't think the present infrastructure can stand huge passage of Indian goods through trucks and trailers. We don't even have proper expressways to move raw materials between our own cities..

Maybe we can get India to fund the construction of highways and bridges in addition to connection to Nepal, Bhutan in exchange of transit? Also trade concessions, water sharing in major rivers and access to power plants can be bargained in exhange of transit. So that it's a win-win situation for both countries.

Before talking about transit, Bangladesh needs to upgrade it's road and highways. I don't think the present infrastructure can stand huge passage of Indian goods through trucks and trailers. We don't even have proper expressways to move raw materials between our own cities..

Maybe we can get India to fund the construction of highways and bridges in addition to connection to Nepal, Bhutan in exchange of transit? Also trade concessions, water sharing in major rivers and access to power plants can be bargained in exhange of transit. So that it's a win-win situation for both countries.
not for politicians thou how they gonna make a cut then?

not for politicians thou how they gonna make a cut then?

Politicians can always come up with ways to make money, X% from the tolls received from transit, X% from power contracts,X% from all infrastructure projects like Bridge or road construction etc.

But even after all those cash outflow, if the projects are atleast undertaken the country will still benefit. Good examples would be South Korea or Malaysia, both were under one party rule during their decades of growth and the party aswell as family members made billions. But since their projects increased the overall size of the economy through industrialization (i.e increase the pie concept), the people of the nation still benefited.

Politicians can always come up with ways to make money, X% from the tolls received from transit, X% from power contracts,X% from all infrastructure projects like Bridge or road construction etc.

But even after all those cash outflow, if the projects are atleast undertaken the country will still benefit. Good examples would be South Korea or Malaysia, both were under one party rule during their decades of growth and the party aswell as family members made billions. But since their projects increased the overall size of the economy through industrialization (i.e increase the pie concept), the people of the nation still benefited.
for that u need people at the top with long term vision not shortsightedness

from what i heard a big chunk of the reserves will go away as interest for the money we have borrowed

the way i see it is the easy for bd to earn some dollar will be to create a tourism industry and try to grab pie of international manufacturing sector on boot basics where possible or allow 100% foreign investment in certain sectors which creates jobs en mass and best i can come up with is to be a tax heaven that way we can attract a lot of money from india n china! :P

for that u need people at the top with long term vision not shortsightedness

from what i heard a big chunk of the reserves will go away as interest for the money we have borrowed

the way i see it is the easy for bd to earn some dollar will be to create a tourism industry and try to grab pie of international manufacturing sector on boot basics where possible or allow 100% foreign investment in certain sectors which creates jobs en mass and best i can come up with is to be a tax heaven that way we can attract a lot of money from india n china! :P

bro, to develop tourism or becoming a tax heaven, you still need someone to have a long term vision. Since tourists will only come once we have proper facilities,security and publicity. Similarly, tax can only be reduced for corporation if the government is stringent in closing the loophole and maximising the tax income from citizens (we have one of the lowest tax to overall budget ratio in the world).

So whether it's infrastructure, natural resources, IT or manufacturing like garments or textiles, eventually we would need the people in power to take steps. I don't expect a complete turnaround from being one of the top 5 corrupt countries of the world. But even minor improvements can go a long way. Already the hartal culture has subsided to an extent, saving millions in productivity. The equity and debt market is expanding allowing new firms to raise funds for expansion and paving ways for FDI. So if we can bring in few more changes, we can definitely bump up growth from 6% to 8 or 9% which will be really beneficial for the people in the long run.

Local refiners find niche in world sugar market

September 16, 2009

http://www.thefinancialexpress-bd.com/2009/09/17/79237.html

Jasim Uddin Haroon

Bangladesh is going to add just another item to its export basket as the country’s private sector sugar refiners have found markets abroad, thanks to a slump in production in India, a major world supplier.

Local entrepreneurs said they are close to striking deals with some European and Middle East countries for supplying refined sugar.

There are six refineries in the country and their capacity is 1.8 million tonnes per year against the domestic demand for 1.2 million tonnes.

Besides, S Alam Refinery, installed in Chittagong with an annual capacity of 300,000 tonnes, is likely to go into production soon.

There are also 14 sugar mills under the state-owned Bangladesh Sugar and Food Industries Corporation (BSFIC) with a production capacity of 125,000 tonnes. But this season they produced only 80,000 tonnes.

One local sugar refiner said it has already negotiated supply of 12,000 tonnes of crystal sugar to Poland while another is negotiating with some other buyers.

Golam Mustafa, chairman of Deshbandhu Sugar Refinery, told the FE: “I have already completed procedures to export 12,000 tonnes of sugar to Poland, which offers duty-free access.”

He also claimed that the United Arab Emirates and Yemen wanted to buy 4,000 tonnes each this year.

The local sugar refineries were mostly set up during 2006 and Deshbandhu is the pioneer in the sector. It has set up the refinery at the premises of Narsingdi’s ageing Deshbandhu Sugar Mill, which was returned to its owner under the government’s privatisation policy.

ADB raises Asian growth outlook after stimulus

Agence France-Presse . Hong Kong

http://www.freeimagehosting.net/uploads/1abfc80d83.jpg (http://www.freeimagehosting.net/)

The Asian Development Bank Tuesday raised its regional growth outlook for this year but warned that recovery signs were not yet strong enough for Asian governments to remove the stimulus prop. Despite a positive outlook for major economies in Asia the outlook for most of the countries in South Asia including Bangladesh was poor. The growth for Bangladesh was projected at 5.2 for 2010 from 5.9 in 2009.The Manila-based bank said that a huge dose of spending put Asia on course to lead the world out of its economic slump, updating its 2009 forecast for gross domestic product to 3.9 per cent growth from 3.4 per cent in March.

It also upgraded its 2010 estimate to 6.4 per cent from 6.0 per cent.
‘Despite worsening conditions in the global economic environment, developing Asia is poised to lead the recovery from the worldwide slowdown,’ said ADB chief economist Jong-Wha Lee. The region’s growth prospects were enhanced by ‘firm action by many governments and central banks, the relatively healthy state of financial systems prior to the global crisis’ and a quick turnaround in ‘larger, less export-dependent economies,’ the report said. Lee added that economic activity in the larger developing Asian economies had rebounded and output looked set for a so-called V-shaped comeback. However, he cautioned central governments and banks against any hasty withdrawal of stimulus packages. ‘This is not the timing for implementation of exit policy,’ Lee told a press conference in Hong Kong. The economist also warned against reliance on external demand as the global recovery ‘is still very slow.’ He said Asian economies should instead focus on domestic demand and encourage intra-regional trade by removing trade barriers and protectionist policies on the labour force.

The report looked at prospects for countries stretching from the former Soviet states of Central Asia to some of the tiny Pacific islands, excluding developed countries such as Japan, Australia and New Zealand. The ADB said it boosted China’s GDP outlook by 1.2 percentage points to 8.2 per cent this year thanks to huge pump-priming in the world’s third-biggest economy. Beijing has targeted growth of 8.0 per cent to keep unemployment at bay and avoid social unrest. The ADB has forecast 8.9 per cent growth next year, up from 6.5 per cent projected in March.

It highlighted a $585b stimulus late last year, a massive surge in bank lending in the first half of this year and ‘aggressive monetary easing’. Export-dependent China announced its huge spending policy last year to boost domestic consumption and infrastructure projects, as key overseas markets in the United States, Japan and the eurozone went into recession. The move led to a surge in imports, which in turn helped regional exporters. India was tipped by the ADB to grow 6.0 per cent in 2009, up from a previous forecast of 5.0 per cent. Next year the ADB estimates the South Asian giant will expand seven per cent, 0.5 percentage points up from March’s estimate.The report said despite weak exports and a poor agricultural outlook, ‘adroit economic management’ by New Delhi had minimized the impact of the global downturn.

The improved economic outlook is reflected in stock markets regionally, which have surged from troughs recorded in March, just weeks before the last ADB report. It said a strong financial sector had helped Asia through the downturn, while high savings rates and low household debt meant consumers were also able to absorb some of the shock. But the heavily export-reliant economies of Hong Kong, Singapore and Taiwan were expected to shrink sharply this year as demand for their goods stays quiet and their markets only slowly regain strength.The ADB said despite a positive outlook for Indonesia and Vietnam, a deteriorating path ahead for Malaysia and Thailand had forced it to cut Southeast Asia’s outlook to 0.1 per cent growth, from 0.7 per cent in March. Central Asia, which is grappling a banking crisis and a fall in the price of its key export oil, is seen growing just 0.5 per cent now, compared with a previous forecast of 3.9 per cent.

Luxury Credit Up By 73 Percent
October 17, 2009 8:49 p.m. EST
Siddique Islam - AHN Correspondent

Dhaka, Bangladesh (AHN) - Credit for luxuries is still growing strong, indicating a rise of the consumer class in Bangladesh, despite repeated attempts by the central bank to divert loans to productive sectors.

Increasing number of people are using consumer financing schemes launched by the commercial banks to whet their appetite for cars, motor bikes, freezes and televisions, according to the central bank statistics.

The country's 48 commercial banks have lent US$110.65 million (BDT 7.63 billion) for consumer goods in March this year, registering a 73 percent growth over that of the same period of the previous year, the data showed.

The banks' lending to apartment purchase has also risen by 24.66 percent during the period, reflecting soaring spending by the middle class and rich people, the central bank officials said.

Purchase of goods using credit cards went up by 83.64 percent while land acquisition loan climbed by 45.19 percent, they added.

During the period, marriage loan went up by 30.00 percent compared to the same period of the previous year while loan for medical treatment increased by nine percent.

"These are very interesting data. It shows our consumers are flexing their muscles despite a very tough economic environment both at home and abroad," a senior official of the Bangladesh Bank (BB), the country's central bank told AHN Media in Dhaka on Saturday, preferring anonymity.

Top bankers admitted massive growth of consumer credit is the least thing they want at the moment, but said they needed to invest their excess liquidity "anywhere" including consumer financing because of less demand for loan in productive sectors.

"Credit to project financing has decreased in the recent months because of shortage of gas and electricity supplies particularly to the industrial units," Managing Director and Chief Executive Officer of Agrani Bank Syed Abu Naser Bukhtear Ahmed told AHN in the capital, Dhaka.

Mr. Bukhtear said most of the banks have stepped up their efforts to invest in manufacturing and agriculture and other productive sectors. "But the demand is not significant."

"As a result we are trying to invest our excess liquidity in others sector to minimize cost of our funds," he noted.

The BB in successive monetary policies this year said that it would facilitate "economic growth through more investments in the real sectors like agriculture and the small and medium enterprises (SMEs)."


Read more: http://www.allheadlinenews.com/articles/7016722435?Central%20Bank%20Of%20Bangladesh:%20Luxury%20Credit%20Up%20By%2073%20Percent#ixzz0US0765vF

Global recession slows down poverty reduction rate in Bangladesh: WB
Incidence of poverty to decline to 31 pc in 2010

Friday October 23 2009 03:29:10 AM BDT

The global meltdown has slowed down Bangladesh's poverty reduction rate although the country has been maintaining an impressive economic growth in recent years, the World Bank said Thursday.

"The rate of poverty in Bangladesh is likely to decline to 31 per cent of the population in 2010 from 40 per cent in 2005. It could have been dropped to 29 per cent, had its economy not affected by global meltdown," WB's lead economist Sanjay Kathuria said.

This translates to around 2.4 million additional poor people in 2010 due to the global dip, said the lead economist while presenting Bangladesh's economic updates at the local WB office in Dhaka.

The WB lead economist said Bangladesh's largely insulated economy has been resilient amid the global crisis, but lower exports and remittances growth and stagnant investment could dampen growth prospects.

He said the country's Gross Domestic Product growth would moderate to 5.5 in the current fiscal year --- lower than 5.9 per cent it clocked in the last fiscal year and average six per cent expansion over the last seven financial years.

"The economy could grow by as high as 6.0 per cent if a sustained global recovery leads to strong export performance and if the performance of the domestic energy sector improves," he said.

Exports have been down by 3.3 per cent in the first two months to August due to sluggish orders for apparel items, which account for 80 per cent of the country's total shipment.

Experts said manufacturing sector, a key driver to growth, has been hard hit by a growing energy crisis, as the government can only meet 80 per cent of the country's daily gas demand.

The World Bank said full implementation of the development budget would be the best gift for the sliding economy rather than any cash incentives for the victims to weather global recession.

"Remove bottlenecks in ADP (annual development programme) implementation process. It will be the best stimulus package for the economy," Mr Kathuria said.

"Private consumption, accounting for around 75 per cent of GDP, may also decline because of lower agricultural and remittance growth. The investment rate has remained flat in recent years due to growing infrastructure constraints and high interest rates," he said.

Senior WB economist Zahid Hussain also said high lending rate remains a major stumbling block to growth. "Lending rates of the commercial banks should be lowered to spur private sector investment," he said.

He also finds a strong correlation between commercial bank lending rates and the rates offered by the government on the National Savings Certificates. The economist advised setting a floor rates for the both.

Mr Hussain said declining public investment arising from poor ADP implementation has also affected the investment flow as it is "maintaining a stagnant situation for months".

"Completion of development works in time is very imperative for creating more employment and increasing economic growth," he said.

Mr. Hussain warned that inflationary pressure might re-emerge if the liquidity overhang in the banking system continues and international commodity prices rise.

"Monetary management has been sound so far, but growing excess liquidity and interest rate ceiling are concern for the economy," the senior economist said:

On the exchange rate, Zahid Hussain said, in the real effective exchange rate (REER) Bangladesh's competitiveness has improved than India, China and Vietnam as their currencies have appreciated more than taka.

The WB's economic outlook applauds improvements in Bangladesh's debt indicators in the period FY2002-2009, which were due largely to fiscal adjustments and rising GDP growth.

"Sustaining these improvements will require stronger efforts to mobilise domestic revenues as well as a higher quality of expenditure, especially on the ADP. Also, slow ADP implementation can hurt both growth and poverty reduction," it said.

The World Bank acting country director Robert L. Floyd said his organisation would lend nearly three billion dollars to Bangladesh in the next three years to boost its infrastructure and social spending.

Source:http://www.bangladesh-web.com/view.php?hidRecord=290435

^^ Good encouraging news :)

Good news indeed, but wth is it going to take to achieve 8-10% growth? If China can maintain that kind of growth for the better part of 3 decades, we should at least see more progress towards that goal.

Bangladesh to become carmaker
Star Business Report

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

The plant will also manufacture cars to be branded locally.

If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.

Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed it as a good sign for Bangladesh amid a sluggish foreign investment flow.

Cimillae Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate the investment implementation.

Abdul Mannan, managing director of Cimillae Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The company has already acquired land at Bhairab in Narsingdi for the plant.

Mannan said the plant will require two years to be set up. As many as 15,000 jobs will be created to run the car manufacturing plant.

CCGI Chairman Lee Young Choung said his company has already decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has plans to invest in 30 sectors in future.

Presently Japanese reconditioned cars dominate the Bangladesh market. Around 20,000 used cars are imported each year, while the number is 2,000 for brand new cars.

Some brand new carmakers like Ford have already initiated move to enhance their presence in Bangladesh.

Japanese Toyota still leads the market in both used and brand new car segments.

http://www.thedailystar.net/story.php?nid=109469

Developers see booming real
estate sales in 2010
Bangladesh Sangbad Sangstha . Dhaka

Bangladesh real estate sector has rebounded and is expected to achieve an impressive growth of 15 per cent in 2010 thanks to the government’s supportive policy for helping recover the sector even amid global recession.
To boost the sluggish business hit by global meltdown and political turmoil, developers have taken a move to set up a common digital market for plots and flats named as Realbazar by this year to attract the potential buyers globally.
Tanvireerul Hoq Probal, president of Real Estate and Housing Association of Bangladesh, the apex body of the country’s real estate developers, made the forecast immediately after a successful housing fair in New York last week.
He said more than 14 thousands Bangladeshi people living in different states of the USA visited the 3-day REHAB housing fair held in New York last week. Developers sold plots and flats worth Taka 156 crore on spot and received order worth Taka 280 crore.
`We did not expect such a booming business this year that has overshot our target. Last year, our sales were much lower than our target - only Taka 60 crore hit by global recession,’ the REHAB president told the agency.
He said that 47 developers took part in the fair this year.
The REHAB president said global recession, political turmoil, higher prices of raw materials and irrational marketing activities due to absence of a common market place hit the sector during the last two years and put down its growth rate to nearly 5 per cent in 2009 from 10 per cent in 2006.
During the last caretaker government, the real estate sector faced serious difficulties and suffered image problems and investors and buyers scared to buy plots or flats and kept their money in boxes, Probal said.
‘But the situation has rebounded and buyers both at home and abroad are showing more interest in buying flats and plots under a democratic environment. If we can keep up this trend, the sector will attain 15 per cent growth next year,’ he said.
He said the present democratic government has formulated a pro-active policy for developers and a management policy friendly to buyers. Now any buyer can file case against any developer who violates contract. They should not be panicky after buying plots and flats.
‘Now we need a common market place where buyers both at home and abroad will find all products in a single location. To solve the problem, the country’s first real-time financial information service Dhakabiz.com has developed a digital market place for plots and flats named as RealBazar. We will soon start it’, he said.
The REHAB executive committee at its last meeting approved the idea of launching a digital market, Probal said.
“Realbazar will be an all-time housing fair for Bangladeshi real estate products. Buyers both at home and abroad will be able to buy plots and flats in a single platform. This will push up our sales as well as our growth in 2010’, he said.
Based on a ground breaking software, the RealBazar will provide update information of real estate projects and facilitate online trading platform to buy or sell plots and flats online.
Here buyers from anywhere will be able to buy any plots or flats without the help of middlemen,” the REHAB president said.

Source:http://www.newagebd.com/2009/oct/25/busi.html#2

growth there is primarily due to kalo taka shada kora scheme!

move away the black money provision and the sector will be in shambles!

^^ Totally agree with Dope. Without the kalo taka and the NBR money being poured into the real estate sector, this sector would be in shambles.

^^ Totally agree with Dope. Without the kalo taka and the NBR money being poured into the real estate sector, this sector would be in shambles.
this is incentive enough for people to go after even more kalo taka since they can make it shada with even less koshto! what a joke eh?

pay half the tax to legalize your black money!

growth there is primarily due to kalo taka shada kora scheme!

move away the black money provision and the sector will be in shambles!

Growth in Bangladesh is due to kalo taka,without kalo taka,all of Bangladesh economy would be in shambles--forgot the CTG days already?:lol:

Bangladesh 'one of 4 countries to hold steady in crisis

Dhaka, Oct 24 (bdnews24.com)—Bangladesh is seen as one of the four countries whose economy remains very steady amid ongoing global recession, the Bangladesh Bank governor said on Saturday.

The central bank boss Atiur Rahman was speaking at a seminar on 'The Global Economic Slump: Cause, Evaluation and Remedy' in the capital on Saturday

Atiur said, "We attended the annual general meeting of World Bank-IMF some days back as well as a meeting of Commonwealth finance ministers."

The two conferences focused on the global recession and exit strategies, he said.

"Representatives of all the countries present unanimously agreed that China, India, Japan and Bangladesh were in good condition, while almost all other countries have been badly hit by the economic turmoil," he said.

The governor said, it was "a matter of prestige for us as a nation" that Bangladesh is one of the countries whose economy remained steady despite the global economic crunch.

The four countries had achieved an average 6 percent economic growth, he said.

"Bangladesh saw 5.9 percent growth last year which might exceed 6 percent during the current year."

He also credited much of the economic stability to "our farmers," who maintained farm output in crucial times.

"Our farmers are our real heroes."

Apart from production, farmers are contributing immensely to create internal demand in the country, he added.

He said Bangladesh survived the onslaught of global financial slum mainly due to agriculture, small and medium industries, and remittances from overseas, which he called "the driving forces of our economy".

Prof Mohammad Arif, executive director of the Centre for Research on Globalisation And Economic Policy in Malaysia, presented the key paper in the seminar hosted by Daffodil University at Dhanmondi and presided over by chairman of the university's board Sabur Khan.

http://bdnews24.com/details.php?id=145518&cid=2



Wait, why would Japan have a growth rate of 6%?

Wait, why would Japan have a growth rate of 6%?

They don't it's 0%.. but even this is good for them since they had negative growth before.

http://news.bbc.co.uk/2/hi/7791068.stm

Growth in Bangladesh is due to kalo taka,without kalo taka,all of Bangladesh economy would be in shambles--forgot the CTG days already?:lol:
More power to you and all those black money folks in Bangladesh, if corruption and immorality is your thing.:applause:

More power to you and all those black money folks in Bangladesh, if corruption and immorality is your thing.:applause:

For some people,the "means" are more important than the "results",and for some,the "results" are more important than the "means".Many call the former "ethical",and the latter "unethical".Some call the former "emotional",and the latter "practical". Thats all your honor:)

http://photos-h.ak.fbcdn.net/hphotos-ak-snc1/hs238.snc1/8529_148557411846_568351846_3265017_393793_n.jpg

For some people,the "means" are more important than the "results",and for some,the "results" are more important than the "means".Many call the former "ethical",and the latter "unethical".Some call the former "emotional",and the latter "practical". Thats all your honor:)

You can call anything whatever you like, but right isn't wrong and wrong is right. :)

http://photos-h.ak.fbcdn.net/hphotos-ak-snc1/hs238.snc1/8529_148557411846_568351846_3265017_393793_n.jpg

:lol::lol:

You can call anything whatever you like, but right isn't wrong and wrong is right. :)


The link below shows a part of "GURU",a Film which is a biopic of one of India's biggest Industrial tycoon, Dhirubhai Ambani,whose company today is one of the biggest in the world.In the clip below,Asbhishek bachan plays his character and tells about his story/philosophy.Most of today's Bangladeshi tycoons will have similar stories and ideas as him.Check it out:

http://www.youtube.com/watch?v=FiC-OZ4MPzs

^^ :) I actually saw that one in theater. Pretty decent Bollywood product.

The link below shows a part of "GURU",a Film which is a biopic of one of India's biggest Industrial tycoon, Dhirubhai Ambani,whose company today is one of the biggest in the world.In the clip below,Asbhishek bachan plays his character and tells about his story/philosophy.Most of today's Bangladeshi tycoons will have similar stories and ideas as him.Check it out:

http://www.youtube.com/watch?v=FiC-OZ4MPzs
I'm not into movies, especially from Bollywood. Anyway, it really does not matter. One can explain away anything, rationalize any behavior. Such conduct however, does not make a wrong, right, just because it may be expedient. Perhaps that is why the degree of religiosity of folks ( in so far as they portray in public) in Bangladesh, is directly proportional to their immorality, their evil deeds. One, I suppose, rationalizes that the extra piety will offset all the committed sins, in the after life. :)

The link below shows a part of "GURU",a Film which is a biopic of one of India's biggest Industrial tycoon, Dhirubhai Ambani,whose company today is one of the biggest in the world.In the clip below,Asbhishek bachan plays his character and tells about his story/philosophy.Most of today's Bangladeshi tycoons will have similar stories and ideas as him.Check it out:

http://www.youtube.com/watch?v=FiC-OZ4MPzs
why follow dirubhai why not jamshed tata or jrd tata or birala for that matter?

why follow dirubhai why not jamshed tata or jrd tata or birala for that matter?
Because the majority of Bangladeshi businessman, big or small, are crooks. But even crooks like to justify their actions to make themselves feel better!:)

Because the majority of Bangladeshi businessman, big or small, are crooks. But even crooks like to justify their actions to make themselves feel better!:)
finally someone agrees! :D

why follow dirubhai why not jamshed tata or jrd tata or birala for that matter?

In an ideal scenario,businessmen in Bangladesh would have followed tata or birala...but thats not the case,they follow dhirubhai.What I am trying to say is that "growth in BD economy" is coming from these Dhirubhai type businessmen,or sometimes worse,but its coming from them.Without these dhirubhais,the economy would be in shambles......banglay boleh na,"Nai mama thekeh kana mama bhalo",thats why I appreciate bd Business people:cheers:

In an ideal scenario,businessmen in Bangladesh would have followed tata or birala...but thats not the case,they follow dhirubhai.What I am trying to say is that "growth in BD economy" is coming from these Dhirubhai type businessmen,or sometimes worse,but its coming from them.Without these dhirubhais,the economy would be in shambles......banglay boleh na,"Nai mama thekeh kana mama bhalo",thats why I appreciate bd Business people:cheers:
wrong! it is the labours who send in remittance that keeps the economy going not business people like them they stop the money supply its the remittance that triggers the money creation process

remember they make more money then the garments sectors makes yet they dont even get a single cent of incentives, where as export based industries get a lot of subsidies!


its because of companies like grameenphone, aktel, banglalink and warid and foreign banks that most bengali graduates earn a decent salary

i dont see the contribution of people like bashundora or jamuna, when it comes to land grabbing, they get my vote

oh and dont forget the smes!

In an ideal scenario,businessmen in Bangladesh would have followed tata or birala...but thats not the case,they follow dhirubhai.What I am trying to say is that "growth in BD economy" is coming from these Dhirubhai type businessmen,or sometimes worse,but its coming from them.Without these dhirubhais,the economy would be in shambles......banglay boleh na,"Nai mama thekeh kana mama bhalo",thats why I appreciate bd Business people:cheers:
I'm quite in agreement with dope. Furthermore, while you may be appreciative of these bastards/goons, I'm not. For the simple fact they are doing what they have to do, must do, in order to laundry money who have them , and in the case of others like the present day bigwigs, they need to protect their investment and outlays. It is very difficult and becomes counter productive to put businesses, no matter how illegitimately they came up, out of existence, once they have entrenched themselves in a country's economy by erecting edifices, providing employment to a significant number of people, etc. That is to say adding value to the country's economy and/or infrastructure.

Perhaps to you and most upwardly mobile people in Bangladesh, the end justifies the means. To me it does not. I suppose that is why I live where I live and wouldn't dare to become involved in any ventures back there, because I wouldn't wish to get my hands and my conscience, dirty.

I'm quite in agreement with dope. Furthermore, while you may be appreciative of these bastards/goons, I'm not. For the simple fact they are doing what they have to do, must do, in order to laundry money who have them , and in the case of others like the present day bigwigs, they need to protect their investment and outlays. It is very difficult and becomes counter productive to put businesses, no matter how illegitimately they came up, out of existence, once they have entrenched themselves in a country's economy by erecting edifices, providing employment to a significant number of people, etc. That is to say adding value to the country's economy and/or infrastructure.

Perhaps to you and most upwardly mobile people in Bangladesh, the end justifies the means. To me it does not. I suppose that is why I live where I live and wouldn't dare to become involved in any ventures back there, because I wouldn't wish to get my hands and my conscience, dirty.

If we can agree to disagree, let's leave it at that, now that we have exchanged our viewpoints. :)

Perhaps to you and most upwardly mobile people in Bangladesh, the end justifies the means. To me it does not. I suppose that is why I live where I live and wouldn't dare to become involved in any ventures back there, because I wouldn't wish to get my hands and my conscience, dirty.

I agree with you to a certain extent, but if conscientious people like yourself don't get involved in ventures, it'll always be the criminal corrupt types who will be having the upper hand.

I get all riled up when my father tells me of his "bhoganti" in getting any minuscule work done, but his last word in any conversation is we need to start somewhere to actually change things for the better in Bangladesh. I guess it takes courage and a whole lot of rhino skin...

I agree with you to a certain extent, but if conscientious people like yourself don't get involved in ventures, it'll always be the criminal corrupt types who will be having the upper hand.

I get all riled up when my father tells me of his "bhoganti" in getting any minuscule work done, but his last word in any conversation is we need to start somewhere to actually change things for the better in Bangladesh. I guess it takes courage and a whole lot of rhino skin...

Completely agree..Infact even without the corruption and bureaucracy someone staying in North America will need to make many sacrifices in order to move to Bangladesh:

1) Standard of living- very few jobs(if atall) will offer similar salary or career opportunity in Bangladesh. It is not just financial difference but the traffic, manual process at banks, stock exchange to airport can all weigh in.
2) Type of jobs- some fields don't even have any prospects back home like biotechnology, nanotechnology or high tech innovation.
3) Education of children - Bangladesh does not offer the same sort of college/universities as US/Canada
4) Cultural and other entertainment facilities- most cities outside of Dhaka, Chittagong does not offer museums, theatres, shopping centres to restaurants.

For example, there is lot of prospect in creating modern processing factories in the jute sector. We have cheap labor,huge quantity of raw jute and in the international market demand for natural fibre is increasing exponentially. But it's not just a matter of government bureaucracy and corruption to setup a business. You will also have to consider moving to a smaller town like Khulna(where most Jute industries are based), the city won't have the same facilities that one is used to in western world, moreover communication with Dhaka will be difficult due to condition of roads and highways.

wrong! it is the labours who send in remittance that keeps the economy going not business people like them they stop the money supply its the remittance that triggers the money creation process

remember they make more money then the garments sectors makes yet they dont even get a single cent of incentives, where as export based industries get a lot of subsidies!


its because of companies like grameenphone, aktel, banglalink and warid and foreign banks that most bengali graduates earn a decent salary


I cant agree with you on everything,though I do agree that Remittance is one of the key drivers of the economy and that our remittance senders should get more facilities.
You should remember that all the industries that you see around yourself[except for some like "telecom.etc" that are owned by foreigners],are owned and run by Bangladeshi businessmen.The contribution of all the sectors combined is definitely the main driver of the economy,along with remittance and garments exports.So I do see "growth" coming from the activities of our business people.
And I dont really care about a few companies offering a few thousand people 'decent salaries",I am more interested in all the companies that are employing hundreds of thousands of people--cause at of now,over 40 percent of the people are still unemployed-meaning they dont even get an "indecent" salary.

Anyways,like TIslam bhai has said...lets agree to disagree now that we have exchanged our views:cheers:

--cause at of now,over 40 percent of the people are still unemployed-meaning they dont even get an "indecent" salary.


Is this number right, over 40% unemployment? I mean that's like half the employable people in Bangladesh are unemployed. I thought it was more like 20-25%. We should not be calculating rickshawallahs, farmers, fishermen, buas, drivers etc. in the rolls of the "bekar" , because even if their income is a pittance, they are working and earning something.

Read read somewhere unemployment is 3% while the underemployment is 40%

Read read somewhere unemployment is 3% while the underemployment is 40%

It gotta be higher than 3%, even US have unemployment of over 9% nowadays..

Also, since Bangladeshi is an agricultural based economy,unemployment figures changes drastically with season. Many farmers are unemployed during the moonsoon seasons and are back in field during the crop cutting period.

We should not be calculating rickshawallahs, farmers, fishermen, buas, drivers etc. in the rolls of the "bekar" , because even if their income is a pittance, they are working and earning something.

^^I think they are all considered as employed. Unemployment includes people who are actively seeking for job and cannot find one. It may include farmers during the off rainy season since during those months these people are actively looking for opportunities elsewhere..

Completely agree..Infact even without the corruption and bureaucracy someone staying in North America will need to make many sacrifices in order to move to Bangladesh:

1) Standard of living- very few jobs(if atall) will offer similar salary or career opportunity in Bangladesh. It is not just financial difference but the traffic, manual process at banks, stock exchange to airport can all weigh in.
2) Type of jobs- some fields don't even have any prospects back home like biotechnology, nanotechnology or high tech innovation.
3) Education of children - Bangladesh does not offer the same sort of college/universities as US/Canada
4) Cultural and other entertainment facilities- most cities outside of Dhaka, Chittagong does not offer museums, theatres, shopping centres to restaurants.

For example, there is lot of prospect in creating modern processing factories in the jute sector. We have cheap labor,huge quantity of raw jute and in the international market demand for natural fibre is increasing exponentially. But it's not just a matter of government bureaucracy and corruption to setup a business. You will also have to consider moving to a smaller town like Khulna(where most Jute industries are based), the city won't have the same facilities that one is used to in western world, moreover communication with Dhaka will be difficult due to condition of roads and highways.

You forgot to include healthcare, Nayeem. :) Many of us here, depend on very precise and highly sophisticated medical treatment.

As far as K-12 education is concerned, there are quite a few pricey private educational institutions in Dhaka, as long as one's income is more than enough to pay their tuition fees. Of course, all bets are off, outside Dhaka.

Sometime ago, I heard on NPR that expat Indians are returning to India in large numbers and most of them relocate themselves in the Indian Silicon Valley area. I have the same set of questions for these expatriates, that you have raised. I don't think that Bangalore or Hyderabad can compare even to a medium sized city in the US or western Europe. So my question is, how are they doing it?

It gotta be higher than 3%, even US have unemployment of over 9% nowadays..

Also, since Bangladeshi is an agricultural based economy,unemployment figures changes drastically with season. Many farmers are unemployed during the moonsoon seasons and are back in field during the crop cutting period.

I guess since those people are not actively looking for work, so they are not included in the unemployment population. So, that may be the reason why unemployment is stated to be so low. But underemployment is very high in Bangladesh. I would say 40% is an understatement.

Read read somewhere unemployment is 3% while the underemployment is 40%

Thats right,40 percent is the figure if you include the underemployed and people not actively seeking work.

^^ According to CIA factbook, unemployment of Bangladesh is 2.5% it is lower than Switzerland, European Union and US!

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2129rank.html?countryName=Bangladesh&countryCode=bg&regionCode=sas&rank=27#bg

I highly doubt the figures though. The definition of "unemployment" used by Bangladesh government must be different from others. When I go back to Bangladesh I see so many unemployed people roaming around in cities and villages. It is not possible that they are just "underemployed" and not actively seeking for work..

A figure of around 15% is probably closer to truth with underemployment being 35-40%

You forgot to include healthcare, Nayeem. :) Many of us here, depend on very precise and highly sophisticated medical treatment.

As far as K-12 education is concerned, there are quite a few pricey private educational institutions in Dhaka, as long as one's income is more than enough to pay their tuition fees. Of course, all bets are off, outside Dhaka.

Sometime ago, I heard on NPR that expat Indians are returning to India in large numbers and most of them relocate themselves in the Indian Silicon Valley area. I have the same set of questions for these expatriates, that you have raised. I don't think that Bangalore or Hyderabad can compare even to a medium sized city in the US or western Europe. So my question is, how are they doing it?

Ohh yeah, healthcare is a big one, there is no concept of insurance and the good hospitals like Square, Apollo and United are limited to priviledged few.
As for Indians moving back, the numbers are still very few but there is some truth to it (if all expatriate Indians were moving back, greencard backlog for Indian citizens won't be 10 years now). The reason being, it is a much bigger country and there are more cities like Bangalore, Delhi, Calcutta resulting in higher job opportunities. Also the IT sector is well established, with 3-4 years of experience in US, one can become a manager at companies like IBM, Accenture or Microsoft. If you have extended family network, property and decent job, it might be worth the sacrifice.

Infact some of my friends who graduated from US/Canada have moved back to Dhaka aswell. Most are working at private multinationals like HSBC, WorldBank etc. Their families are relatively well established with good "connections". But as a percentage of the total students who came to North America to study, it's probably around 10%, rest are all here.

^^ According to CIA factbook, unemployment of Bangladesh is 2.5% it is lower than Switzerland, European Union and US!

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2129rank.html?countryName=Bangladesh&countryCode=bg&regionCode=sas&rank=27#bg

I highly doubt the figures though. The definition of "unemployment" used by Bangladesh government must be different from others. When I go back to Bangladesh I see so many unemployed people roaming around in cities and villages. It is not possible that they are just "underemployed" and not actively seeking for work..

A figure of around 15% is probably closer to truth with underemployment being 35-40%

In the absence of a minimum wage unemployment remains really low. You can pay a guy 5 taka to clean ur whole house if he agrees. That is why free market Nazis say that the presence of a minimum wage keeps unemployment high.

But as a percentage of the total students who came to North America to study, it's probably around 10%, rest are all here.

Students who study in the UK are more likely to return it seems.

Students returning after studying abroad are actually in the driver's seat when it comes to looking for employment. They have an edge over students graduating from local unis (both public and private) in all fields. I have friends and seniors who have just returned from UK, Australia, US, Canada, Malaysia, Thailand and who are about to start work/have started work in BD.

In the absence of a minimum wage unemployment remains really low. You can pay a guy 5 taka to clean ur whole house if he agrees. That is why free market Nazis say that the presence of a minimum wage keeps unemployment high.

Yeah point taken, but even after considering that I highly doubt the 2.5% figure.India, Pakistan-countries with same socio economic condition are way down the list with almost 10% unemployment. I don't think they have any minimum wage either..

Students who study in the UK are more likely to return it seems.

I think that's because it's harder to get jobs in UK and immigration process is also more complicated than Canada, Australia..

Ohh yeah, healthcare is a big one, there is no concept of insurance and the good hospitals like Square, Apollo and United are limited to priviledged few.
As for Indians moving back, the numbers are still very few but there is some truth to it (if all expatriate Indians were moving back, greencard backlog for Indian citizens won't be 10 years now). The reason being, it is a much bigger country and there are more cities like Bangalore, Delhi, Calcutta resulting in higher job opportunities. Also the IT sector is well established, with 3-4 years of experience in US, one can become a manager at companies like IBM, Accenture or Microsoft. If you have extended family network, property and decent job, it might be worth the sacrifice.

Infact some of my friends who graduated from US/Canada have moved back to Dhaka aswell. Most are working at private multinationals like HSBC, WorldBank etc. Their families are relatively well established with good "connections". But as a percentage of the total students who came to North America to study, it's probably around 10%, rest are all here.

I want to add something to this discussion. We are sons/daughters of Bangladesh even if we lived outside BD more years than in it. Those of us who decide to go back or start some projects in the homeland are probably more forgiving of the general mess the country is in than a foreigner. Our infrastructure is bad and people in authority generally corrupt, but since it is not alien to us, I think we can manage with a slightly lower standard of living than USA or other first world nations.

I definitely believe a family of four that relocates to Dhaka from any town in the US can easily manage financially if the breadwinner is paid at least 1.5-2 lakh taka/month. I am talking about having a car, 1 or 2 house help, nice apartment, good private school for kids, etc. to name a few perks. The extended family and "connections" are a definite plus. It might not be a extravagant lifestyle, but very decent.

I say this with a caveat: if law and order situation is unbearable, no amount of perks will entice anyone to stay. Safety and security of the family comes before any other considerations.

^^ I agree, but there are not too many jobs in Dhaka that will offer 1.5-2 laks per month for someone with 2-3 years of work experience. Private universities pay that to professors with foreign PHDs and thus we see lot of Bangladeshis from Canada/US going back home to teach..

Also,Bangladesh have certain advantages that we will not find in western countries:

1) Property(apartment, house) inhereted through family. Many middle/upper middle class families get apartments from their parents, thus do not need to worry about paying rent or getting mortgage on house.

2) Extended family network, most of the relatives and friends are concentrated in one city for example Dhaka, making life more interesting. In countries like US, everybody is spread across states with little interaction.

I want to add something to this discussion. We are sons/daughters of Bangladesh even if we lived outside BD more years than in it.
While it is true, I'm not sure I still feel that way anymore. The Bangladesh that I left as a schoolboy, is so different and not in any positive sense. I'm not talking about material things rather the social and moral aspects.

Those of us who decide to go back or start some projects in the homeland are probably more forgiving of the general mess the country is in than a foreigner. Our infrastructure is bad and people in authority generally corrupt, but since it is not alien to us,... For many years I contemplated doing just that however, every time I go to Dhaka, which is often enough (1~2 years), I return thoroughly demoralized and disillusioned. I have concluded that it is simply not possible to lead a clean moral life (I mean that in a secular sense not religious) with a half way decent lifestyle and income bracket. Perhaps there are some handful lucky ones, who work for MNCs or multilateral organizations (UN, ADB, Worldbank), who do so (clean life) for most part, but the moment one has to interface with anybody/anything related to the government, then all bets are off. And it is quite impossible not to come into contact with the government since it controls so many aspects of peoples lives.


I definitely believe a family of four that relocates to Dhaka from any town in the US can easily manage financially if the breadwinner is paid at least 1.5-2 lakh taka/month. I am talking about having a car, 1 or 2 house help, nice apartment, good private school for kids, etc. to name a few perks. The extended family and "connections" are a definite plus. It might not be a extravagant lifestyle, but very decent. And what kind of job(s) would earn you that kind of salary? Whatever there are, you could pobably count with your fingers.

I say this with a caveat: if law and order situation is unbearable, no amount of perks will entice anyone to stay. Safety and security of the family comes before any other considerations. One can hardly disagree with that.

For many years I contemplated doing just that however, every time I go to Dhaka, which is often enough (1~2 years), I return thoroughly demoralized and disillusioned. I have concluded that it is simply not possible to lead a clean moral life (I mean that in a secular sense not religious) with a half way decent lifestyle and income bracket. Perhaps there are some handful lucky ones, who work for MNCs or multilateral organizations (UN, ADB, Worldbank), who do so (clean life) for most part, but the moment one has to interface with anybody/anything related to the government, then all bets are off. And it is quite impossible not to come into contact with the government since it controls so many aspects of peoples lives.

This is true for all developing countries be it India, Pakistan or Mexico. Corruption is widespread and part of life.. same goes for security.

When I was in Bangalore, I saw the exact same problems as we have in Dhaka. Starting from the airport where cab drivers were fighting to get luggage to the hotel. I heard that situation at government institutions are the same, nothing moves in police station without money.

If the government was not corrupt and life was very secure, the country would be a developed in the first place. Examples would be Norway, Sweden or Singapore.

Your points are all valid and even I have the same reasons in my mind, but I am just saying that these issues on bad politics, corruption and lack of security are inherent to all developing nations. Infact, compared to Nigeria, Pakistan or Mexico our security situation is probably much better.

This is true for all developing countries be it India, Pakistan or Mexico. Corruption is widespread and part of life.. same goes for security.


While security & corruption situation might be pretty bad in Mexico dont compare it to the subcontinent man! They're pretty developed actually. Their GDP per capita is pretty high and their cities are pretty developed.

This is true for all developing countries be it India, Pakistan or Mexico. Corruption is widespread and part of life.. same goes for security.

When I was in Bangalore, I saw the exact same problems as we have in Dhaka. Starting from the airport where cab drivers were fighting to get luggage to the hotel. I heard that situation at government institutions are the same, nothing moves in police station without money.

If the government was not corrupt and life was very secure, the country would be a developed in the first place. Examples would be Norway, Sweden or Singapore.

Your points are all valid and even I have the same reasons in my mind, but I am just saying that these issues on bad politics, corruption and lack of security are inherent to all developing nations. Infact, compared to Nigeria, Pakistan or Mexico or security situation is probably much better.

I quite understand all that and I could probably live through corruption, albeit grudgingly. Heck, my father had to bribe officials to get paid for his contracts. Today, however, things have taken a much sinister and sickening turn. These days, the common currency of transaction is women. And I, being a father of a young daughter, would like to remain miles away from such depraved behavior.

I say this with a caveat: if law and order situation is unbearable, no amount of perks will entice anyone to stay. Safety and security of the family comes before any other considerations.

Legalizing guns like America might help. Since the police wont do anything just shoot the attacker :tongue2: