Economy of Bangladesh [Archive] - Page 8

nayeem007

May 20th, 2011, 06:47 PM

Economy heads back to high growth

Buoyancy in agricultural production is likely to help Bangladesh attain 6.7 percent economic growth th is year.

Sohel ParvezBangladesh is expected to head back to more than 6 percent economic growth this fiscal year, after a two-year spell of slowdown due to global recession and dipping exports, according to predictions of World Bank (WB) and Asian Development Bank (ADB).

The ongoing buoyancy in agricultural production and a robust growth in exports of major industrial products are likely to help Bangladesh attain up to a 6.7 percent rise in gross domestic product (GDP).

Over the past one year, domestic demand has been strong, supported by a vibrant rural economy where farmers have got a boost in their spending capacity due to high prices of agricultural produces.

A rise in wages, both in the public and private sectors, has kept the internal demand intact.

The government maintains that economy will expand by 6.7 percent by the end of the current fiscal year ending on June 30.

Multilateral lenders such as the WB and ADB say the size of Bangladesh economy will grow by 6.2-6.3 percent this year, widening the scopes for increased jobs opportunities, income and purchasing capacity.

The national statistical agency, Bangladesh Bureau of Statistics, is yet to finalise its preliminary estimate, its officials said.

In fiscal 2009 and 2010, economy grew by 5.7 percent and 5.8 percent respectively.

Between 2006 and 2008, the country clocked over 6 percent growth, according to Bangladesh Economic Review.

''Preliminary signs suggest better economic performances in all sectors this year,'' says the WB in its May 2011 release on Bangladesh economy.

However, economy faces some challenges -- inflation, liquidity dearth in banks and fear of a negative impact of low remittances amid ongoing crisis in the Middle East and North African countries.

Rising inflation, led by food prices, has already put increased strains on the household budgets, eroding the gains in people's purchasing capacity.

Higher food prices are likely to put an adverse impact on poverty reduction efforts.

The prospects of a rapid boost in investment and economic activities are plagued by the ongoing power and energy crunch, weak roads and port performances.

By solving the infrastructure constraints, Bangladesh can attain over 7 percent annual growth, say economists.
''There is no doubt about it. It is quite feasible. It's not a fantasy to achieve more than 7 percent growth,'' said Zahid Hussain, senior economist of the WB.

''But so far the outlook is 6 percent plus,'' said Hussain.

Since the beginning of the current fiscal year, growers have bagged a good output of rice during the immediate aman and aus season and cashed in on the higher prices of the staple and other food grains on the domestic and international market.

Favourable weather and a cut in the prices of fertiliser also helped the farmers have a good harvest of potato also.

The prospects of a bumper rice production in the principal crop season boro also look bright as the farmers maintained their enthusiasm to grow more to boost their income and purchasing capacity.

Except for a slump in the prices of potato after the bumper output, the growers also got better prices for other agricultural commodities -- vegetables, jute -- and shrimp.

Industrial activities have also picked up in the current fiscal year as the overall exports earnings surged. Imports of raw materials, intermediate goods and capital machinery also increased.

Exports surged 40 percent to $18.24 billion in July-April of 2010-11 from $12.94 billion a year ago, thanks to the recovery in the global demand after the recession. The rising labour costs in Bangladesh's competing countries extended support to robust growth in its exports of garment and textile industry.

Two other main sectors -- jute and jute goods and shrimp -- also fetched good export earnings.

The growth of remittance inflows slumped to 4 percent in the July-April period of fiscal 2011 from 16 percent in the same period the previous year. In 10 months to April 2011, inflow of remittance, which also provides an impetus to domestic demand, stood at $ 9.58 billion.

The ADB said the strong rebound in exports will support higher growth.

''The pickup in export-linked domestic industries and tax incentives for domestic industries provided in the FY2011 budget are also expected to bolster economic activity,'' said the Manila-based lender which predicted a 6.3 percent economic growth.

However Prof Shamsul Alam, a member of the Planning Commission, said economy would attain the targeted 6.7 percent expansion by end of the fiscal year due to a bumper harvest of boro rice, vegetables, including potato, and robust export growth.
http://www.thedailystar.net/newDesign/news-details.php?nid=186434

nayeem007

June 1st, 2011, 03:39 AM

Economic growth beats record
GDP growth 6.66 percent for 2010-11

Star Business Report

Bangladesh's economic growth beat all records this year, riding on buoyant exports and robust agricultural outputs, said the Bangladesh Bureau of Statistics (BBS) yesterday.

The growth rate -- 6.66 percent -- is the highest since 1973-74, said Aynul Kabir, director of National Accounting Wing of the state-run BBS.

In 1973-74, a couple of years after the country's independence, the economy grew by 9.59 percent, which came after a negative growth in the previous years imposed by the war in 1971.

The actual growth of fiscal 2009-10 was 6.01 percent.

Kabir said this growth calculation is provisional as the growth estimate will be final in May next year. "This is provisional statistics as the BBS has not received many data since December."

The provisional calculation has also included the month of June, which has just begun, he added.

The economic growth for the current fiscal year (2010-11) to be ended this month was at 6.66 percent, particularly banking on the robust export growth, which was more than 42 percent in the July-April period, and exciting agricultural outputs, he said.
"The export sector, especially ready-made garment, performed exceptionally well. We are also expecting a robust boro output," he said.

The BBS took 18 major sectors in consideration to calculate the economic growth, he added.

Economists forecast a 7 percent growth next fiscal year, as the country's export sector is showing strengths, attracting increased orders from across the world, including China, a major competitor in exports.
The growth of Bangladesh's manufacturing sector hovered around 9.51 percent buoyed by soaring garment exports, showed the BBS data.

Mustafa K Mujeri, director general of Bangladesh Institute of Development Studies (BIDS), attributed the growth to rising exports led by RMG, encouraging boro output buoyed by adequate supply of electricity, fertiliser and other inputs, and absence of natural disaster.

He said the provisional figure could still be adjusted once all the related data including the real boro output estimation are available.

The former chief economist of the central bank thinks this year's growth could be the highest in the country's history. “The growth of 1973-1974 came after a negative growth in the previous years imposed by war.”

“The level of production was lower soon after the Liberation War. But when the normal production picked up in 1973-1974 the growth jumped higher. The growth at that time was calculated on low base,” said Mujeri

http://www.thedailystar.net/newDesign/news-details.php?nid=188136

tislam84

June 14th, 2011, 08:10 PM

A better future through welfare schemes

Shikha Begum
Star Business Report

Only two years ago Shikha Begum, a widow, had nothing in her possession and could barely feed herself and her only daughter, but today she brims with confidence as she can financially support herself thanks to a safety net project.

Shikha is one of the 24,400 destitute women who have been pulled out of poverty by the Rural Employment Opportunities for Public Assets (REOPA).

Forty percent of the population of Bangladesh is estimated to live below the national poverty line, according to a statistic compiled by CIA World Fact Book.

Shikha, 35, is a widowed woman from Narsingdi. After the death of her husband of nine years she was left to fend for herself as well as her 17-year-old daughter.

“I barely managed to feed my family once a day, some days we even went without food,” recalls Shikha.

Just when she thought that there was no hope for her and her daughter's future, she heard that a search for poor and vulnerable women was going on, over the microphone. They could be given jobs as day labourers. The to-be labourers would be chosen through lottery. Gathering her courage and hoping fervently for a miracle, she went to union parishad to see if she would be chosen.

Shikha was enrolled in the two year-long programme. She worked in road maintenance to earn Tk100 daily. Of the income, Tk70 was given to her and Tk30 was kept as mandatory savings under her name. She earned a total of Tk51,100 in cash and accumulated savings worth Tk27,100 at the end of the scheme.

After her work was finished for the day, she began learning cloth cutting and how to operate a sewing machine from her neighbour. Once she learnt the trade, she purchased a sewing machine for Tk5,100 from the savings she had accrued from her REOPA wages, and began to earn extra money even before her graduation from the programme.

She bought goats and was able to lease land for cultivation from her extra income earned from her sewing.

After her REOPA programme ended, she withdrew Tk22,000 from her mandatory savings and purchased a cow and a land with a mortgage.

Today she is the proud owner of a tailoring business. She has also opened a school for tailoring which has five students at present. She earns Tk150 from her tailoring business and Tk100 from agricultural activities.

“Today I feel so happy and I can finally support myself and it is all thanks to REOPA,” Shikha told The Daily Star, one the sidelines of a press conference on REOPA project in Dhaka yesterday.

REOPA is a social safety net project, co-funded by the European Union (EU) and United Nations Development Programme (UNDP). Started in 2008, the project will come to an end in December 2011.

Like Shikha, the project has helped 24,400 destitute women from 388 unions of Barguna, Feni, Habiganj, Narsingdi, Satkhira and Sirajganj districts.

REOPA chooses women through lottery and employ them in road maintenance works.

Majeda Haq, cluster head and programme analyst of UNDP, said 30 women were chosen in the first batch and 33 were chosen in the second batch in each union.

She said the women are enrolled for 24 months. The women invest their own savings and mandatory savings in a range of microenterprises, which will secure them financially after they graduate.

“I had the pleasure to visit REOPA beneficiaries and was pleased to see that the women were making very good progress and seem to have become self-reliant,” said William Hanna, ambassador and head of delegation of the EU to Bangladesh.

Source: The Daily Star: http://www.thedailystar.net/newDesign/news-details.php?nid=189993

TIslam

June 14th, 2011, 08:20 PM

tislam84

June 14th, 2011, 08:41 PM

TIslam

June 14th, 2011, 10:29 PM

^^ I know Grameen Bank has an initiative to give loans to beggars, but I am not sure how successful that was.

Such a scheme can be easily undertaken by the government without the help of donors. But I do believe that such a scheme needs to be undertaken by the government and not the NGOs. The NGOs give loan to start a business, but as we know, some businesses succeed, while others fail. An employment scheme is a much better option for those who are very poor with little or no skills, because they can get a steady income through employment. What the government can do is outsource such road-building/construction activities to the NGOs who can then pay the destitute. Then, there can be accountability of the projects and hopefully, some good results too.

One welfare scheme of the government that I know of is the 'old-age pension' scheme. I think they give 100 taka a month to the elderly who are poor. The amount is not much, but it can help the poor a lot.

Yes, I agree it is the government's job to initiate such programs, not the NGOs. Large charitable organizations, if such exist in Bangladesh, could also initiate such "jobs" program, perhaps in partnership with GoB and NGOs. The NGOs could be engaged for execution (management) of the projects.

UNDP, I believe, has a "food for work" program. GoB could easily copy their model and use it for labor intensive projects. I think the concept of forced (automatic) saving devised by the project (discussed earlier) has a lot to do with its success.

mirzazeehan

June 22nd, 2011, 10:50 PM

Love this kinda news....:banana:

Poverty declines
Household survey shows no change in wealth inequality in 5 yrs
Staff Correspondent

Poverty declined to 31.5 percent in 2010 from 40 percent in 2005 due to consistent economic and remittance growth, showed a major survey report yesterday.

However, the country did not perform well in redressing inequality during the period as wealth remained concentrated in the hands of a few people, says the Household Income and Expenditure Survey (HIES) 2010. Inequality (Gini) of per capita income stood at 0.458 in 2010, which was 0.467 in 2005.

The report also revealed a rapid change in consumption pattern and a shift in poverty pockets.

It was published at a workshop organised by Bangladesh Bureau of Statistics (BBS) and the World Bank at Sonargaon Hotel.

Noted economist Wahiduddin Mahmud chaired the workshop in presence of Planning Minister AK Khandker and high-ups of the government and its development partners.

The report shows a drop in poverty levels and improvement in living standards in the country in recent years despite the global economic shock and natural calamities.

Poverty at the national level decreased by 8.5 percentage points in 2010 from 40 percent in 2005, as the economy grew by six percent on an average and remittance by 23 percent during the period. Poverty was 49 percent in 2000 at the national level.

Rural poverty declined to 35.2 percent in 2010 from 43.8 percent in 2005, while urban poverty slid to 21.3 percent from 28.4 percent in the same period.

However, the country did not do well in terms of redressing inequality. The Gini co-efficient that measures income inequality fell slightly to 0.458 in 2010 from 0.467 in 2005. A higher Gini coefficient implies more concentration.

The survey showed a marked improvement in nutrition levels across the country, primarily because of consumption of more diversified food basket. Other welfare indicators related to human development, access to services, and social welfare schemes also saw tremendous progress.

Per capita intake of food items a day increased by 5.5 percent -- 6.21 percent in urban and 3.5 percent in rural areas -- to 999.9 grams in 2010 from 947.8 grams in 2005.

The food consumption pattern also saw a change. The average quantity of rice intake decreased to 416 grams from nearly 440 grams in 2005, while consumption of wheat, potato, meat and fish rose.

Per capita calorie intake a day increased by 3.6 percent to 2,318.3 kilocalorie in 2010 from 2,238.5 kilocalorie in 2005. It went up by 4.1 percent in rural and 2.3 percent in urban areas.

The average monthly household income rose to Tk 11,480 in 2010 from Tk 7,203 in 2005 at the national level, Tk 9,648 from Tk 6,096 in rural areas and Tk 16,477 from Tk 10,463 in urban areas.

Demographic trends also helped improve the quality of life. The average size of household decreased to 4.5 in 2010 from 4.84 in 2005.

Wahiduddin Mahmud said poverty pockets are changing. Rangpur and Rajshahi divisions had traditionally been known as the country's poverty pockets. Now Barisal has joined the list with nearly 40 percent poverty, second after 42 percent in Rangpur.

“Barisal takes over Rangpur and Rajshahi, may be for the impacts of climate change,” said Mahmud.

Salinity has been on the rise in the region, he pointed out.

AK Khandker said the survey data will help determine the goals and strategies for the Sixth Five Year Plan, keeping in mind the targets under Vision 2021.

The HIES is a major source of socio-economic information at the household level in Bangladesh. It provides data on household expenditure, income, consumption, savings, housing conditions, education, employment, health, sanitation, water supply, electricity usage and other areas.

The total sample size was 12,240 households in 2010 and the survey was done from February 2010 to January 2011. The preliminary analysis of the data was completed in four months.

Riti Ibrahim, secretary of statistics division, Sanjay Kathuria, acting head of the World Bank country office and Shahjahan Ali Mollah, director general of the BBS, also spoke.

Source:http://www.thedailystar.net/newDesign/news-details.php?nid=191163

mirzazeehan

June 22nd, 2011, 10:58 PM

More encouraging news....:)

Bangladesh among 9 “stars” of development according to leading British think-tank

Dhaka, June 20 (UNB)- British Minister of State for International Development Alan Duncan’s visit this week coincides with the release of a report in the UK rating Bangladesh as one of nine “star
performers” out of 24 developing countries receiving British aid to fund various development projects.

The Overseas Development Institute (ODI), Britain’s leading as well as most influential think-tank on international development, released the report entitled “Mapping Progress” last week, where the progress made in Bangladesh’s health sector in particular is cited as one of the developing world’s most significant success stories from the last two decades.

The “dramatic” reduction in infant and child mortality rates witnessed in Bangladesh during that period, as well as “rocketing” immunisation coverage and a “steady” rise in life expectancy have
been documented in a detailed case study on the health sector, showcasing the experience here for emulation elsewhere.

Talking to UNB over phone on Tuesday from the ODI’s London office, Dr Liesbet Steer, the team leader of the report said although there is no “direct dialogue” planned with the Bangladesh government to share the report’s findings, she was hopeful that as the report gains greater publicity, government officials, policymakers and development practitioners would visit the ODI’s website and access the full findings for themselves.

The report attributes the remarkable success in the health sector to the role played by government, role of NGOs, effective collaboration between government and NGOs, innovative pro-poor health interventions like oral rehydration therapy, and increasing empowerment of women.

The role of microfinance is highlighted for its contribution to women’s empowerment, and the presence of international donor agencies is mentioned as a “crosscutting factor” that has contributed towards progress.

The eight other countries to have specific successes highlighted in the “star” category are Bhutan, Brazil, Costa Rica, Ghana, Mauritius, Thailand, Uganda and Vietnam. They are said to have shown “sustained progress” for more than two decades, resulting in diversification of products and services, and “improved value-added”.

Dr Steer however, admitted that the “star performer” label is really only applicable for the health sector, rather than more holistic development across all sectors, although education too has been
“improving rapidly”.

The fifteen remaining countries that took part in the research were distributed into one of three progressively less-encouraging categories- Surprises, Potentials, and Conundrums.

Noted economist Dr Akbar Ali Khan told UNB that aid-giving agencies pay heed to such reports, and if there are any “tangible benefits” to be gained out of finding a place in such lists, it may be that a
positive assessment prevents the stock of aid being reduced.

Dr Khan, a former chairman of the Regulatory Reforms Commission, chose to attach more importance to the annual business-friendliness index brought out by the International Finance Corporation, as private sector investors able to bring in foreign direct investment actually “pay it greater attention.”

Source:http://www.unbconnect.com/component/news/task-show/id-50842

TIslam

June 23rd, 2011, 08:23 PM

mirzazeehan

June 23rd, 2011, 10:25 PM

That's rather significant achievement. Very heartening news.

By achieving an average 5% economic growth rate from 2001 to 2011,we have been able to reduce poverty from 49% in 2001 to 31.5% in 2011.If we can really achieve the expected economic rate of 7% from 2011 to 2021,we should easily be able to reduce the rate of poverty to about 5% in 2021 from the current 31.5%.And then in 2021,we can celebrate 50 years of nationhood in style!:cheers:

tislam84

June 23rd, 2011, 10:37 PM

Even without high economic growth, government can reduce poverty quite a bit by food-for-work program with mandatory savings requirement (there is a UNDP project that did that in Bangladesh with really good results).

Nevertheless, it is really good news to see that poverty fell by such a large extent in Bangladesh. We do some things right!

King Nothing

June 24th, 2011, 07:11 AM

The total sample size was 12,240 households in 2010 and the survey was done from February 2010 to January 2011. The preliminary analysis of the data was completed in four months.

Riti Ibrahim, secretary of statistics division, Sanjay Kathuria, acting head of the World Bank country office and Shahjahan Ali Mollah, director general of the BBS, also spoke.

Data frm only 12,400 households only? Is that a good sample size? Why do I feel like the govt. is trying to cook up data? To look good before the next elections perhaps?

mirzazeehan

June 24th, 2011, 08:53 AM

Data frm only 12,400 households only? Is that a good sample size? Why do I feel like the govt. is trying to cook up data? To look good before the next elections perhaps?

The govt just completed half of it's tenure,it's not like we have an election next month or or even next year.The mass ppl of Bangladesh couldn't care less about statistics,so making these up for elections wouldnt really help in elections either.but well,anyone is free to believe anything ......and yes..still waiting form ur aus pics!

TIslam

June 24th, 2011, 07:36 PM

The govt just completed half of it's tenure,it's not like we have an election next month or or even next year.The mass ppl of Bangladesh couldn't care less about statistics,so making these up for elections wouldnt really help in elections either.but well,anyone is free to believe anything ......and yes..still waiting form ur aus pics!

What Mirza, have you been appointed AL's PR man on SSC? :lol:

King Nothing brings to the fore a valid point, which I did not know, not having read the article in its entirety.

What I don't get though, why all the fanfare in presenting the results with such a small sampling data and how come there's been no one has pointed out this anomaly, thus far? By no one, I mean some relevant people or group.

King Nothing

June 24th, 2011, 08:35 PM

.and yes..still waiting form ur aus pics!

Will do it man. Just got done with exams. So relaxing after pulling a few all-nighters. Will do it hopefully soon.

tislam84

June 24th, 2011, 09:37 PM

^^ Well, the sample is supposed to represent Bangladesh. Its a big enough sample to draw conclusion. Technically, the department can go to every house to get data, but that would be too expensive. So, a much smaller sample size is used to draw out conclusions. Its done is all the countries of the world. For example, the US samples about 200,000 households every year to get data on poverty and income.

TIslam

June 24th, 2011, 10:28 PM

samaruf

June 24th, 2011, 10:49 PM

I will chime in here. Based on what I have heard and seen, poverty has been alleviated in the last decade. If you go to many of the southern districts and Sylhet where most of our expatriates hail from, every village is now a booming area with construction of homes and other infrastructure going on in full swing.

The remittance and RMG money has helped many hitherto destitute families feed themselves well as well put up a good roof over their heads. So even if the sampling is small, there is no doubt we have less poor people than 2005. Try to find a bua or man-servant in Dhaka and you will notice very quickly the dearth of helping hands.

dopekhor

June 24th, 2011, 10:58 PM

what is the measure of poverty? how much does one need to earn to be above the poverty line

TIslam

June 25th, 2011, 12:09 AM

what is the measure of poverty? how much does one need to earn to be above the poverty line

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

:)

mirzazeehan

June 25th, 2011, 12:34 AM

What Mirza, have you been appointed AL's PR man on SSC? :lol:

Yes...shortly after many forumers joined the Main opposition to voice dis content and doubt achievements :lol:

samaruf

June 25th, 2011, 01:11 AM

^^Mirza, achievements should always be touted, be it AL or BNP. Our political parties have a bad habit of negating each others achievements due to petty reasons. If AL can complete even 50% of the infrastructure projects they set out to do, I say vote them back to power. Unfortunately, the situation on the ground, hasn't improved much. Dhaka-CTG highway is still clogged, Dhaka's roads are impassable, power situation is dismal, stock market got ripped off, food and other necessities prices are increasing daily, Taka has lost quite a bit to the greenback even though the USD is itself historically low...etc..etc... The construction of shiny new glass towers are nice additions to Dhaka's skyline, but if they don't get power or water connections, they are just concrete hulks and to the vast majority of our country folk, makes no difference in their lives.

AL, for at least 2 years now, has been consumed with 1971 and 1975 events. Now the constitution is being amended, for better or worse, Allah only knows. The general public is not that concerned with emotional issues but with matters of sustenance, safety and security. AL if it likes can change the whole history of Bangladesh and create their own narrative, but it will not do an iota of good for the common people if their basic needs are not met. The revolving door will continue to revolve and when BNP comes to power, who is not to say they won't re-amend these docs and plaques.

TIslam

June 25th, 2011, 02:10 AM

Yes...shortly after many forumers joined the Main opposition to voice dis content and doubt achievements :lol:

Point taken however, you ought to realize that the majority of the SSC Bangladesh forum members are skeptics rather than believers of partisan politics. I would much rather be in that camp as opposed to being a faithful believer in what the government of the day has to tout.

For most of us it is show me the money.

TIslam

June 25th, 2011, 02:13 AM

mirzazeehan

June 25th, 2011, 10:36 AM

Unfortunately, the situation on the ground, hasn't improved much. Dhaka-CTG highway is still clogged, Dhaka's roads are impassable, power situation is dismal, stock market got ripped off, food and other necessities prices are increasing daily, Taka has lost quite a bit to the greenback even though the USD is itself historically low...etc..etc... The construction of shiny new glass towers are nice additions to Dhaka's skyline, but if they don't get power or water connections, they are just concrete hulks and to the vast majority of our country folk, makes no difference in their lives.

.

I am no blind supporter of the AL,but I do like to focus on Bangladesh's achievements...

I agree with what you said...inflation is high,roads are in bad condition,power outages are still there,stock market was looted and the taka depreciated in value.But thats just one side of the story,heres the other side:

Economic growth has been around 6.5-6.7,Read:

http://www.thedailystar.net/newDesign/news-details.php?nid=188136

Poverty Rate dropped to 31.5% from 40% in five years.Read:

http://www.asianewsnet.net/home/news.php?id=19583&sec=1

Exports are reaching 22 billion this year,compared to 13 billion in 2007.More billion dollar export sectors are emerging,read:

http://newagebd.com/newspaper1/business/23122.html

Foreign Currency Reserves stand at 11bn now,compared to 6bn in 2008

compare articles:

http://news.xinhuanet.com/english2010/world/2011-05/02/c_13855304.htm

http://www.thedailystar.net/story.php?nid=25872

Bangladesh's tax revenues fetched around 40,000 crore in first 7 months of this fiscal,while 12 months revenue used to be around 40,000crore just 3 years ago.Compare the two articles below:

http://in.reuters.com/article/2008/07/24/bangladesh-economy-tax-idINDHA11902820080724

http://bangladesheconomy.wordpress.com/2011/02/27/country-fetches-tk-399b-revenue-in-7-months/

According to Transparency International,corruption is declining in Bangladesh.This is the same org that ranked us as champions of corruption for five straight years from 2001-2006.Read:

http://www.thedailystar.net/newDesign/latest_news.php?nid=29587

Domestic investment proposals have more than doubled in one year to around 40000 crore taka for first nine months of current fiscal,Read:

http://bangladesheconomy.wordpress.com/2011/05/04/local-investment-proposals-rise-117pc-in-july-march-of-fy-%E2%80%9811/

Although actual FDI dropped by 200 million usd this year due to the energy crisis,Foreign Direct Investment proposals have risen 300% in one year to 3Billion usd for 2011.Read:

http://www.daily-sun.com/?view=details&archiev=yes&arch_date=23-06-2011&type=daily_sun_news&pub_no=255&cat_id=1&menu_id=2&news_type_id=1&index=2

Power outages remain,but 1000mw of power has already been added to the national grid and another 500mw is expected to come by august.Read:

http://asian-power.com/project/news/bangladesh-utilizes-rental-power-plants

Work on the 26km eleveated expressway has started,10km Gulistan-Jatrabari flyover's work is ahead of schedule,Kuril flyover's work is on schedule,Mirpur-Cantonment flyover's work is going on in full swing...Read:

http://www.thedailystar.net/newDesign/news-details.php?nid=174775

http://www.theindependentbd.com/paper-edition/frontpage/129-frontpage/47452-pm-kicks-off-work-on-elevated-expressway-construction.html

And the wait for power connections is over,new buildings are being given power connections now,and by year end,all applicants will get their connections:

http://www.thefinancialexpress-bd.com/more.php?news_id=135818&date=2011-05-16

and yes,most importantly,hundreds of shiny new glass skyscrapers are being added to the capital's skyline as we speak!:lol: (kidding!)

Manazir

June 25th, 2011, 12:58 PM

^^
wow bro, you really keep track on these things, or else how do u remember all those links ? ;D

dopekhor

June 25th, 2011, 04:31 PM

true AL is the lesser of two evils, when it comes to country improvement

TIslam

June 26th, 2011, 03:18 AM

I am no blind supporter of the AL,but I do like to focus on Bangladesh's achievements...

.................

and yes,most importantly,hundreds of shiny new glass skyscrapers are being added to the capital's skyline as we speak!:lol: (kidding!)

Better to be a constant critic than a cheerleader. It is the contractual/fiduciary obligation and moral duty of each elected government to move the country forward. The only praise they deserve is come election time. If their performance was commendable they will get reelected which would the the high praise they earned.

Praise them constantly, they become complacent and (more) corrupt.

tislam84

June 26th, 2011, 07:20 AM

200,000 far larger sample size than 12,500. Isn't sampling error supposed to be minimized with large(r) sample size?

I agree, 200,000 is higher sample size, but there is a lot that you can do to correct for that. Bangladesh, unlike US, is a pretty homogeneous country, with just few big cities (that are very similar). So you don't need to sample families from every thana to get an accurate result. Besides, the cost of collecting 200,000 or more data is very high, so, you use a cheaper option to do the analysis.

tislam84

June 26th, 2011, 07:21 AM

what is the measure of poverty? how much does one need to earn to be above the poverty line

Poverty measurement is different for different countries. In Bangladesh, you are in poverty if you cannot eat more than 2100 calories of food a day. You are in extreme poverty if you cannot afford to buy more than 1800 calories of food a day.

tislam84

June 26th, 2011, 07:27 AM

I don't think its good to judge AL or BNP as the party that brings growth. Growth is a more broader process and each government is responsible (in part) for it. For example, Ershad instituted a tax to collect funds to build Jamuna Bridge, BNP started the construction while AL inaugurated it (Sheikh Hasina though claims that Mujib dreamed of building a bridge over Jamuna River).

Similarly, there are some policies that BNP took that actually came into fruition much later, and some policies that AL took that did the same. Like BNP took the "Shobar Jonno Shikkha" Kormoshuchi, and now we have 100% primary school enrollment rates during the AL period. So, while both parties have corrupt members, they also did a lot of good development work across the countries.

Its the yin and yang theory. Nobody is purely good or purely evil. There is a little good and evil in every person, community, political party, etc.

dopekhor

June 26th, 2011, 04:20 PM

Poverty measurement is different for different countries. In Bangladesh, you are in poverty if you cannot eat more than 2100 calories of food a day. You are in extreme poverty if you cannot afford to buy more than 1800 calories of food a day.
going by that only 31% of the population cannot afford 1800 calories a day? and is there any dollar value on that?

TIslam

June 26th, 2011, 05:43 PM

going by that only 31% of the population cannot afford 1800 calories a day? and is there any dollar value on that?

Wouldn't that simply be the cost of a certain quantity of rice that would afford 1800 calories/day?

TIslam

June 26th, 2011, 05:48 PM

dopekhor

June 26th, 2011, 06:11 PM

Wouldn't that simply be the cost of a certain quantity of rice that would afford 1800 calories/day?
thats what i want to know, cuz i was talking to someone who in turn discussing this with a world bank lead economist, he was told its only a percentage jump out of a range, say before only 40% of the population earned more then a $2 a day now 70% of population earn more then $2 a day

King Nothing

June 27th, 2011, 12:22 AM

Talk about throwing money into the water...

Army to get 44 tanks
2 helicopters also on purchase list

For the first time in the country's history, the government will purchase 44 new tanks and three armoured recovery vehicles (ARV) for the army as part of its plan to modernise the armed forces.

The government will also buy two brand new helicopters for the army to ensure necessary logistic support for the UN peacekeeping activities.

The Main Battle Tanks (MBT-2000) and the ARVs will be bought from China, and the helicopters from France through government-to-government deals, which were recently signed. According to the deals, the cost of the tanks will be around Tk 1,201 crore, and the helicopters Tk 174 crore. Besides, a process is on to buy 18 brand new cannons.

The purchases would be done from the budgetary allocations for the army, said government sources.

The government increased the allocation for the armed forces to Tk 12,134 crore in the proposed budget for fiscal 2011-12 from Tk 10,918 crore in the current fiscal year.

"The tanks will be bought through a government to government deal ensuring maximum transparency," Master General of Ordnance (MGO) of Bangladesh Army Maj Gen Abdul Matin told The Daily Star yesterday.

"The purchase is being done as a part of modernisation of the Bangladesh Army," he said adding that the tanks will be delivered in phases over a span of 27 months. In the first phase 24 tanks will come within 20 months, and the rest will come in the second phase over the next 7 months.

The payment for the purchase will be made in phases over the next eight years, said the major general.

Maj Gen (retd) Amin Ahmed Chowdhury told The Daily Star that through this purchase, the military of the country will definitely get a boost.

“If the authorities concerned that would supply the tanks share transfer of technologies then it would work.”

Mag Gen Abdul Matin however said the Chinese government will provide training to technicians of Bangladesh Army in China and in Bangladesh for a good period of time so that the tanks and ARVs could be maintained properly. The training will be free of charge, he said adding that the China would also give adequate spare parts of the tanks.

The government in 2003 took initiatives to buy tanks for the army, but that initiative did not see the light of day due to budgetary limitations, said the sources.

The government was supposed to buy seven tanks last year and seven more this year. As only a Chinese company took part in the tender, the government cancelled it, and re-invited tender in which four companies from China, Russia, Ukraine, and Pakistan participated. Chinese company Norinco was selected as the lowest bidder.

Later the army requested the government to buy 44 tanks instead of 14.

A five-member committee headed by Maj Gen Abdul Matin signed a deal with the Chinese defence ministry on June 14 to purchase the tanks. According to the deal, China North Industries Corporation (Norinco) will deliver the tanks.

Matin said Eurocopter, a global helicopter manufacturing company in France, will supply the two helicopters by July next year.

The two helicopters will be used in UN peacekeeping missions, he said.

The committee chief said they have signed a draft deal with the countries concerned to purchase 18 new cannons. The agreement will be finalised next year, he added.

Bangladesh first got tanks in 1974 during Bangabandhu Sheikh Mujibur Rahman's trip to Egypt. The then Egyptian president Anwar Sadat presented Bangabandhu with 44 tanks that were in good shape, said government sources.

Some refurbished tanks have also been bought for the army over the years.

http://www.thedailystar.net/newDesign/news-details.php?nid=191737

TIslam

June 27th, 2011, 12:43 AM

King Nothing

June 27th, 2011, 12:52 AM

Sure, why not? If US can cut school lunch programs to help pay for three simultaneous wars (so to speak), what's 44 tanks?

Our heads of states are taking us towards an interesting direction. :nocrook:

tislam84

June 27th, 2011, 02:33 AM

Such a sane and real world analysis coming from a twenty (or thirty) something. Wow! Problem is most politicians and the so called educated class, the civil society of the country are incapable of such analysis/judgement.

What you deduced has to be the case otherwise no development whatsoever could have ever taken place in Bangladesh, and as it continues to do so.

Thank you Towhid Bhai! Btw, its twenty-something, hahaha!

tislam84

June 27th, 2011, 02:35 AM

Wouldn't that simply be the cost of a certain quantity of rice that would afford 1800 calories/day?

Yes, that is true. The sad thing is, there is a lot of people who can't even afford that. I heard recently that one kg of rice is around 30 taka, but the wage of a day laborer is around 100-150 taka max. It is hard to feed a family of 4 with that money, even if the wife and kids also work.

tislam84

June 27th, 2011, 02:38 AM

going by that only 31% of the population cannot afford 1800 calories a day? and is there any dollar value on that?

Yeah, but that means that 31% is in extreme poverty, which is still a very, very large number. Well, the dollar value changes according to the price of essentials, so, and easier measure is the World Bank dollar-a-day, or two-dollar-a-day measure (which you mentioned). It is easier to implement, but, as can be seen, a dollar in Dhaka have a different real value than a dollar, in, lets say, a village in Kustia. With a dollar a day, a person in the Kustia village can be pretty well-off, but a slum-dweller in Dhaka would barely make ends meet.

tislam84

June 27th, 2011, 02:39 AM

Talk about throwing money into the water...

Army to get 44 tanks
2 helicopters also on purchase list

http://www.thedailystar.net/newDesign/news-details.php?nid=191737

Maybe they meant tractors.... oh wait no, they actually meant tanks!

dopekhor

June 27th, 2011, 04:39 AM

Yeah, but that means that 31% is in extreme poverty, which is still a very, very large number. Well, the dollar value changes according to the price of essentials, so, and easier measure is the World Bank dollar-a-day, or two-dollar-a-day measure (which you mentioned). It is easier to implement, but, as can be seen, a dollar in Dhaka have a different real value than a dollar, in, lets say, a village in Kustia. With a dollar a day, a person in the Kustia village can be pretty well-off, but a slum-dweller in Dhaka would barely make ends meet.
i am guessing since this is what applies since extreme poverty applies when one fails to earn a dollar a day, there fore if one were to earn 50%+ more lets say $3, he would disqualify from this list but in reality he would still be in that level

its just good for statistical representation for the government in office.

King Nothing

June 27th, 2011, 06:19 PM

AL, for at least 2 years now, has been consumed with 1971 and 1975 events. Now the constitution is being amended, for better or worse, Allah only knows.

Its not being ammended, so whatever is happening is happening for the wrose. They are sticking with the state religion and bismillah and unequal inheritance laws.

I wonder if the new education policy is gonna teach evolution in schools.

dopekhor

June 27th, 2011, 07:09 PM

Its not being ammended, so whatever is happening is happening for the wrose. They are sticking with the state religion and bismillah and unequal inheritance laws.

I wonder if the new education policy is gonna teach evolution in schools.
i thought you valued democracy which means the opinion of the majority, i dont think the majority of bengalis want "Bismillah" or islamic norms out of the constitution, the propaganda you wear about our liberation war being about establishing a secular state is wrong, it is only the opinion of some of the top brass then, just like nawabs of bengal being in favor for urdu to be the state language of pakistan.

TIslam

June 27th, 2011, 08:59 PM

i thought you valued democracy which means the opinion of the majority, i dont think the majority of bengalis want "Bismillah" or islamic norms out of the constitution, the propaganda you wear about our liberation war being about establishing a secular state is wrong, it is only the opinion of some of the top brass then, just like nawabs of bengal being in favor for urdu to be the state language of pakistan.

For a country where majority of the population is Muslim, practicing or not, it stands to reason that the majority opinion will be just what you suggest. Bismillah, however, was not in the Constitution of The People's Republic of Bangladesh, as it was passed and accepted by the first Parliament. Neither were any specific clauses or bylaws that one may construe as "Islamic norms". If you are referring to the specific inheritance laws that are guided by particular religions, the Constitution simply states that all prevailing marriage and family laws (succession, inheritance, etc.) of the land prior to the independence of Bangladesh and in particular (certain) Muslim Family Law (Act) of such and such year, and Hindu Family of Law of such an such year, of India/Pakistan shall be the reigning laws of the land in regard to such affairs and matters.

Furthermore, I do believe that the original Constitution as ratified stressed the preference for Secularism as opposed to any specific religion.

The question that I would like to pose to most folks who prefer a state religion over secularism, is that, what is your objection for it? Do you believe that it will make you or the next generation of citizens less religious or less pious? Is it not possible to uphold the principles of secularism or secular conduct in politics and civil affairs i.e. public life, yet be equally God fearing, and a practicing Muslims, or a Hindu, or a Christian, or what have you, in private life? I believe it is eminently possible.

King Nothing

June 27th, 2011, 09:02 PM

i thought you valued democracy which means the opinion of the majority, i dont think the majority of bengalis want "Bismillah" or islamic norms out of the constitution, the propaganda you wear about our liberation war being about establishing a secular state is wrong, it is only the opinion of some of the top brass then, just like nawabs of bengal being in favor for urdu to be the state language of pakistan.

Way to talk out of your ass.

Democracy means treating everyone equally. Which means not making us non-muslims second class citizens. Even if liberation war wasn't abt establishing a secular state its time to make it secular. Ppl can believe what ever fairy-tales they want to in their private lives and practice them privately too but the state should be kept separate from it. Bangladesh was established as a secular nation as per the 1972 constitution. It was dictators like Zia and Ershad who changed the constitution. State religion only came into place at the fag end of Ershad's rule when ppl were protesting against him. He then put in the state religion to somewhat pacify the people. Zia and Ershad's actions were not the result of some sort of democratic vote. Its what they decided to do to hold on to power.

Furthermore AL came to power winning a majority vote. One of the pledges in their election manifesto was to go back to the constitution of 72. So if they keep their promise they are being democratic and if not they are being non-democratic.

Pakistan was also established as a secular nation. It remained pretty much secular (despite allainces of the ISI with the muollahs) till Zia-ul-Haq decided to destroy the nation. Jinnah was a great man. He was pretty much an agnostic and very secular. Here are some of his quotes:

"Religion should not be allowed to come into Politics….Religion is merely a matter between man and God"

"[Pakistan] will not be a country ruled by mullahs with a divine mission"

So if Pakistan is to go back to the roots of its founding fathers it should be secular as well.

King Nothing

June 27th, 2011, 09:07 PM

The question that I would like to pose to most folks who prefer a state religion over secularism, is that, what is your objection for it? Do you believe that it will make you or the next generation of citizens less religious or less pious?

They think it will make their claim to a fantasy land called "heaven" more stronger. :lol:

TIslam

June 27th, 2011, 09:15 PM

They think it will make their claim to a fantasy land called "heaven" more stronger. :lol:

With my limited knowledge in the world's dominant religions, I find no such edict. (jesting aside).

dopekhor

June 27th, 2011, 10:36 PM

For a country where majority of the population is Muslim, practicing or not, it stands to reason that the majority opinion will be just what you suggest. Bismillah, however, was not in the Constitution of The People's Republic of Bangladesh, as it was passed and accepted by the first Parliament. Neither were any specific clauses or bylaws that one may construe as "Islamic norms". If you are referring to the specific inheritance laws that are guided by particular religions, the Constitution simply states that all prevailing marriage and family laws (succession, inheritance, etc.) of the land prior to the independence of Bangladesh and in particular (certain) Muslim Family Law (Act) of such and such year, and Hindu Family of Law of such an such year, of India/Pakistan shall be the reigning laws of the land in regard to such affairs and matters.

Furthermore, I do believe that the original Constitution as ratified stressed the preference for Secularism as opposed to any specific religion.

The question that I would like to pose to most folks who prefer a state religion over secularism, is that, what is your objection for it? Do you believe that it will make you or the next generation of citizens less religious or less pious? Is it not possible to uphold the principles of secularism or secular conduct in politics and civil affairs i.e. public life, yet be equally God fearing, and a practicing Muslims, or a Hindu, or a Christian, or what have you, in private life? I believe it is eminently possible.
its not what i believe, that comes into play its what the majority of the people believe, a lot of people hold their religion close to their hearts, but its not as eminent in as in pakistan but there is a very large number, but then again most of them do not tend towards extremism, as you can tell after the first constitution was ratified and put in place the general mass wasnt happy, which is why it took awamileague 20+ yrs to come back to power

King Nothing

June 27th, 2011, 11:00 PM

:wtf::weirdo:

dopekhor

June 27th, 2011, 11:21 PM

Way to talk out of your ass.

Democracy means treating everyone equally. Which means not making us non-muslims second class citizens. Even if liberation war wasn't abt establishing a secular state its time to make it secular. Ppl can believe what ever fairy-tales they want to in their private lives and practice them privately too but the state should be kept separate from it. Bangladesh was established as a secular nation as per the 1972 constitution. It was dictators like Zia and Ershad who changed the constitution. State religion only came into place at the fag end of Ershad's rule when ppl were protesting against him. He then put in the state religion to somewhat pacify the people. Zia and Ershad's actions were not the result of some sort of democratic vote. Its what they decided to do to hold on to power.

Furthermore AL came to power winning a majority vote. One of the pledges in their election manifesto was to go back to the constitution of 72. So if they keep their promise they are being democratic and if not they are being non-democratic.

Pakistan was also established as a secular nation. It remained pretty much secular (despite allainces of the ISI with the muollahs) till Zia-ul-Haq decided to destroy the nation. Jinnah was a great man. He was pretty much an agnostic and very secular. Here are some of his quotes:

"Religion should not be allowed to come into Politics….Religion is merely a matter between man and God"

"[Pakistan] will not be a country ruled by mullahs with a divine mission"

So if Pakistan is to go back to the roots of its founding fathers it should be secular as well.
you think democracy has a fixed meaning in every country? the base of it is popular sovereignty, which happens by the vote of people, this is why we have to accept hasina and khaleda as heads of the state no much how much i despise them, they came riding on popular demand, why do u think AL wouldnt touch the Bismillah part?

whats wrong with having Bismillah in the starting of the constitution? the official motto of the united states is "in God we trust"

the pakistan of jinnah died in 1971, the thing was that jinnah died early and after his death all hell broke loose, the muslim leaguers started gaining more power thats what destroyed it they werent even popular during the british rein elections in muslim dominant areas

there is never equality, even in perfect democratic conditions a commoners life will never be worth the same as a head of states.

dopekhor

June 27th, 2011, 11:23 PM

:wtf::weirdo:
elaborate your knowledge, tell me why zia n co rose to super stardom with the masses with their religious edicts ?

King Nothing

June 28th, 2011, 12:58 AM

you think democracy has a fixed meaning in every country? the base of it is popular sovereignty

Eh? There is no such thing as popular sovereignty. I guess you dont even know what sovereignty means.

this is why we have to accept hasina and khaleda as heads of the state no much how much i despise them, they came riding on popular demand,

Which is why they need to fulfill their pledges as per their election manifesto.

why do u think AL wouldnt touch the Bismillah part?

They are a bunch of 2-faced crooks.

the thing was that jinnah died early and after his death all hell broke loose, the muslim leaguers started gaining more power thats what destroyed it they werent even popular during the british rein elections in muslim dominant areas

Uhm no. After Jinnah it was military dictatorships. Ayub Khan and Yahya Khan were pretty secular tho they used parties likes Jamat for their political gains (such as genocide in Bengal.)

Their first democratically elected leader was Z.A. Bhutto who was pretty secular. He was removed by Zia in a coup who pretty much islamized the country and now u have what u have. So no the Pakistan of Jinnah didnt die in 1971. The majority of Pakistanis actually want a secular society. Prior to 9/11 religious parties never got more than 2 or 3 seats in Parliament just like Jamaat in BD.

whats wrong with having Bismillah in the starting of the constitution? the official motto of the united states is "in God we trust"

Why would u want bismillah at the beginning of the constitution? Would it give u a better chance to go to heaven and claim ur 72 virgins :lol:? And no its not the "official motto of the US" its something they print on paper bills. Very different from bismillah tho. Bismillah is a specifically muslim thing. In God we trust doesnt belong to any specific religion. However many atheists in america have voiced their concerns against it.

there is never equality, even in perfect democratic conditions a commoners life will never be worth the same as a head of states.

I dunno what this has to do with issues we are discussing but only a minority of states have a state religion.

TIslam

June 28th, 2011, 01:44 AM

you think democracy has a fixed meaning in every country? the base of it is popular sovereignty, which happens by the vote of people, this is why we have to accept hasina and khaleda as heads of the state no much how much i despise them, they came riding on popular demand, why do u think AL wouldnt touch the Bismillah part?

whats wrong with having Bismillah in the starting of the constitution? the official motto of the united states is "in God we trust"

the pakistan of jinnah died in 1971, the thing was that jinnah died early and after his death all hell broke loose, the muslim leaguers started gaining more power thats what destroyed it they werent even popular during the british rein elections in muslim dominant areas

there is never equality, even in perfect democratic conditions a commoners life will never be worth the same as a head of states.

Democracy, dope, is a double edged sword that cuts both ways. Democracy turns into tyranny when democracy tramples on the rights of the minority and usurps their (minorities) due privileges. Unbridled democracy therefore, is no panacea for good governance nor does it foster harmony between majorities and minorities. As a matter of fact, a pure democracy could literally turn into the proverbial Mogher Mullook, from a minority perspective.

Imagine for a moment, how difficult perhaps it could have been for Muslims to build a mosque, or Hindus a temple in the US or Canada, if these countries were governed (administered) on basis of simple majority. Thus, if a group of Muslims banded together and applied for a permit to build a mosque in the community they live, they could have been denied the permit owing to the fact the that majority residents of that community did not want a mosque to be built in their neighborhood. One could argue that's democracy, isn't it? In fact it is just so, however, the US Constitution through its Bill of Rights enshrines certain values and endows the minority, rather, every individual certain inalienable rights. Since the Constitution trumps majority vote (democracy), minorities can live in dignity.

I cited an example based on religion and religious differences. There are many many instances and situations that are secular in nature but has to do with the "rights" issue. Perhaps you realize that democracy does not grant you carte blanche to anything you fancy, as a group, a society, or a country.

There is nothing inherently wrong with Bismillah per se however, it is indicative of a bias towards a particular religion, if those Quranic verse is used. If however, you wish to insert, "In God We Trust" like the US, of course, in Bangla (Bengali), it would be readily acceptable to most, except for atheists/agnostics like King Nothing (sorry pal, that's how the world turns!). :)

dopekhor

June 28th, 2011, 03:00 AM

Eh? There is no such thing as popular sovereignty. I guess you dont even know what sovereignty means.

Which is why they need to fulfill their pledges as per their election manifesto.

They are a bunch of 2-faced crooks.

Uhm no. After Jinnah it was military dictatorships. Ayub Khan and Yahya Khan were pretty secular tho they used parties likes Jamat for their political gains (such as genocide in Bengal.)

Their first democratically elected leader was Z.A. Bhutto who was pretty secular. He was removed by Zia in a coup who pretty much islamized the country and now u have what u have. So no the Pakistan of Jinnah didnt die in 1971. The majority of Pakistanis actually want a secular society. Prior to 9/11 religious parties never got more than 2 or 3 seats in Parliament just like Jamaat in BD.

Why would u want bismillah at the beginning of the constitution? Would it give u a better chance to go to heaven and claim ur 72 virgins :lol:? And no its not the "official motto of the US" its something they print on paper bills. Very different from bismillah tho. Bismillah is a specifically muslim thing. In God we trust doesnt belong to any specific religion. However many atheists in america have voiced their concerns against it.

I dunno what this has to do with issues we are discussing but only a minority of states have a state religion.

Popular sovereignty or the sovereignty of the people is the political principle that the legitimacy of the state (http://en.wikipedia.org/wiki/Sovereign_state) is created by the will or consent of its people (http://en.wikipedia.org/wiki/Consent_of_the_governed), who are the source of all political power (http://en.wikipedia.org/wiki/Political_power).

its often associated with republicanism, we are the peoples republic of bangladesh, hence we exercise this with democracy, therefore it can be said in our brand of democracy it blends perfectly well.

The military dictators often used the little islamic parties as a tool, as they were little parties, they enjoyed autonomy, when he banned political parties, it was the big ones that were in trouble, they never won big even during the british era.

now thats a cheap shot, if you dont like islam so much why dont you organize a party and swing to power and change that, untill then shut the fcuk up and respect the opinion of the mass,

the state religion is only symbolic, nothing else it is never practiced. If it were almost all the private banks in bangladesh would have gone and no private educational institutes would exist, if you hate islam so much unassociate with it and its followers nones compelling you to be with them

dopekhor

June 28th, 2011, 03:09 AM

Democracy, dope, is a double edged sword that cuts both ways. Democracy turns into tyranny when democracy tramples on the rights of the minority and usurps their (minorities) due privileges. Unbridled democracy therefore, is no panacea for good governance nor does it foster harmony between majorities and minorities. As a matter of fact, a pure democracy could literally turn into the proverbial Mogher Mullook, from a minority perspective.

Imagine for a moment, how difficult perhaps it could have been for Muslims to build a mosque, or Hindus a temple in the US or Canada, if these countries were governed (administered) on basis of simple majority. Thus, if a group of Muslims banded together and applied for a permit to build a mosque in the community they live, they could have been denied the permit owing to the fact the that majority residents of that community did not want a mosque to be built in their neighborhood. One could argue that's democracy, isn't it? In fact it is just so, however, the US Constitution through its Bill of Rights enshrines certain values and endows the minority, rather, every individual certain inalienable rights. Since the Constitution trumps majority vote (democracy), minorities can live in dignity.

I cited an example based on religion and religious differences. There are many many instances and situations that are secular in nature but has to do with the "rights" issue. Perhaps you realize that democracy does not grant you carte blanche to anything you fancy, as a group, a society, or a country.

There is nothing inherently wrong with Bismillah per se however, it is indicative of a bias towards a particular religion, if those Quranic verse is used. If however, you wish to insert, "In God We Trust" like the US, of course, in Bangla (Bengali), it would be readily acceptable to most, except for atheists/agnostics like King Nothing (sorry pal, that's how the world turns!). :)
that would be the ideal perfect society, but that doesnt exist, it always depends at the end of the day who has the power, 300,000 brits rulled over 300 million indians during the era of the raj.

if pulling islamic contexts, people always refer to saudi arabia, it is a country anything but islamic, islam does not permit monarchy, yet it is, it requires benefits of the state be passed on to every citizen, it is also said any leader who lies to his or her people shall have a tough time entering paradise.

people just pick up bits and pieces that favor them and use it to their advantage. The kat mullahs back then told everyone if one were to study and learn english they would become kafirs and in the process muslims left in the dark, there is no perfect system in play the small minority who are in power will use everything necessary to retain power. Thats how they play you they give you choice out of them for you to pick, so that you can feel you have power

TIslam

June 28th, 2011, 03:28 AM

that would be the ideal perfect society, but that doesnt exist, it always depends at the end of the day who has the power, 300,000 brits rulled over 300 million indians during the era of the raj.

if pulling islamic contexts, people always refer to saudi arabia, it is a country anything but islamic, islam does not permit monarchy, yet it is, it requires benefits of the state be passed on to every citizen, it is also said any leader who lies to his or her people shall have a tough time entering paradise.

people just pick up bits and pieces that favor them and use it to their advantage. The kat mullahs back then told everyone if one were to study and learn english they would become kafirs and in the process muslims left in the dark, there is no perfect system in play the small minority who are in power will use everything necessary to retain power. Thats how they play you they give you choice out of them for you to pick, so that you can feel you have power

Understood, but I keep returning to the same question, why do we or for that matter any other country need to establish/recognize a state religion? Would a pious and practicing Muslim say from Italy, the seat of the Vatican, be any less or a true Muslim from one who hails from Mecca, Multan or Mymensingh? Furthermore, does it not defile the religion when religion is mingled with politics where truthfulness isn't a virtue nor a guiding principle?

dopekhor

June 28th, 2011, 03:33 PM

Understood, but I keep returning to the same question, why do we or for that matter any other country need to establish/recognize a state religion? Would a pious and practicing Muslim say from Italy, the seat of the Vatican, be any less or a true Muslim from one who hails from Mecca, Multan or Mymensingh? Furthermore, does it not defile the religion when religion is mingled with politics where truthfulness isn't a virtue nor a guiding principle?
wouldnt you want your home to be more suited to your type, rather then someone elses, in calcutta, the azan is banned because it according to them causes noise pollution, now imagine if we had banned the archaic noises during the durga poojas, every tom deek n harry (including king naathing) would have jumped on us, condemning us how undemocratic and unsecular we are and what not.

King Nothing

June 28th, 2011, 04:19 PM

Popular sovereignty or the sovereignty of the people is the political principle that the legitimacy of the state (http://en.wikipedia.org/wiki/Sovereign_state) is created by the will or consent of its people (http://en.wikipedia.org/wiki/Consent_of_the_governed), who are the source of all political power (http://en.wikipedia.org/wiki/Political_power).

Fair enough. The people of the country voted in a party who said it would go back to our old secular constitution in its manifesto. The election was free and fair under the strict watch of the military. So whats the problem?

untill then shut the fcuk up and respect the opinion of the mass,

What opnion of the masses? No general consensus or vote was taken when the amendments to the constitution were made.

if you dont like islam so much why dont you organize a party and swing to power

If everytime somebody who wanted change would have to form a political party in order for the change to take place, we would have nothing but politicains in this world. Im not a politician my field of work is different. But I will vote for a party that will implement my changes. And since the party in power said it would go back to our original constitution in its manifesto there is nothing much to discuss.

the state religion is only symbolic, nothing else it is never practiced

So whats the point of keeping it? Its not like it will help u get into ur promised dreamland - heaven will it?

if you hate islam so much unassociate with it and its followers nones compelling you to be with them

Will be difficult to do untill we get rid of muslim family law, hindu family law, etc in our country. There is no secular family law for ppl who dont practice any religion.

now imagine if we had banned the archaic noises during the durga poojas, every tom deek n harry (including king naathing) would have jumped on us, condemning us how undemocratic and unsecular we are and what not.

Id be happy if all religions of the world would seize to exist. But thats unlikely. And afaik ajan isnt banned in Calcutta.

Yagya

June 28th, 2011, 08:21 PM

wouldnt you want your home to be more suited to your type, rather then someone elses, in calcutta, the azan is banned because it according to them causes noise pollution, now imagine if we had banned the archaic noises during the durga poojas, every tom deek n harry (including king naathing) would have jumped on us, condemning us how undemocratic and unsecular we are and what not.

Proof please.

dopekhor

June 28th, 2011, 09:14 PM

Proof please.
The Calcutta high court on November, 21, 1996 banned the use of loudspeakers at all places of worship, irrespective of religion. A division bench of Justice Bhagabati Prasad Benerjee and Justice A.K. Chakraborty in their ruling stated that as India is a secular state the ban would cover all religions and steps to control noise pollution should cover all religious communities. The ban which minimised noise levels in the city during the durga-pujas and Kalipujas would also cover gurudwaras and Mosques all over West Bengal.

http://www.islamicvoice.com/may.97/features.htm#NOI

Yagya

June 28th, 2011, 11:04 PM

^^

So it's for all religions. Nothing wrong in that. In anycase I did some research to see if the Supreme Court of India had given any advise on this. So according to a judgment made in 2005: (I'm quoting the point)

(10) Loudspeakers should not be allowed to be installed on towers and temple walls, churches and mosques, so as to face the surrounding streets and areas, should be installed within the precincts and turned inwards so that the music is audible only within the precincts of the temple/church/mosque. Exemption will be given during the month of Ramzan when the calls of the Muazzine for prayers is traditionally made from the mosque tower.” This decision has been approved by the Supreme Court in CHURCH OF GOD IN INDIA v.. K.K.R. MAJESTIC COLONY WELFARE ASSOCIATION [AIR 20 00 SC
2773 : 2000 (7) SCC 282].

So I think you'd agree it was a bit twisting the facts and talking about sounds of Durga Puja in BD.

Having said that you can still hear azaan in Kolkata. Here is a video for you:

F8HnxnIuhRg

The famous Kabir poet said: Kankar patthar jodi kay, Masjid layi banaye, ta chadhi mulla baang de, kya behra hua khudai?

Which means: from binding stones and rocks, a mosque is made. Then the mulla goes on the roof and shouts. Is God deaf?

samaruf

June 28th, 2011, 11:47 PM

^^

So it's for all religions. Nothing wrong in that. In anycase I did some research to see if the Supreme Court of India had given any advise on this. So according to a judgment made in 2005: (I'm quoting the point)

So I think you'd agree it was a bit twisting the facts and talking about sounds of Durga Puja in BD.

The famous Kabir poet said: Kankar patthar jodi kay, Masjid layi banaye, ta chadhi mulla baang de, kya behra hua khudai?

Which means: from binding stones and rocks, a mosque is made. Then the mulla goes on the roof and shouts. Is God deaf?

Bring in religion and all forums delve into this situation. I think this thread should be confined to talking about economy of Bangladesh and not whether azan can be heard in Kolkata or other non related material.

And FYI to yagya, even though Kabir might have/have not said the above line, as a born Muslim he should have known the azan is not for God's so called ears, but for Muslims to know the prayer time. Anyway, we should let this topic to rest.

Yagya

June 29th, 2011, 12:16 AM

100% sure Kabir did say this and it makes perfect sense. If it is for Muslims to know prayer time then why is it that when the mosque is full the loudspeakers are still blaring?

HereWeGo

July 12th, 2011, 04:59 AM

http://www.thedailystar.net/newDesign/news-details.php?nid=193833

An awesome news.... Hope the hartals dont ruin the progress

Exports hit fast lane

Refayet Ullah Mirdha
Bangladesh bagged $22.93 billion from its overseas trade with 41.47 percent growth in the just concluded fiscal year, according to the latest Export Promotion Bureau data released yesterday.

The export earnings surpassed the yearly target of $18.5 billion, buoyed by shipments of readymade garments and jute and jute goods.

In June alone, the country earned $2.38 billion, registering 40.25 percent growth, compared with the same period a year earlier.

Readymade garments including knitwear, woven and home textile fetched $18.71 billion of the total $22.93 billion earnings in the immediate past fiscal year.

Of the major export items, knitwear products were worth $9.49 billion and woven garments worth $8.43 billion, registering 46.25 percent and 40.23 percent growth respectively.

The country earned $1.11 billion from exports of jute and jute goods last year, registering 41.49 percent growth, compared with the previous year, the data shows.

The oceangoing vessels fetched $40.44 million last year with 332.98 percent growth.

Jalal Ahmed, vice-chairman of the EPB, said the trend shows that growth will continue.

"The signs are good. Exports won't decline in future," he said.

He said the rise in exports was also backed by duty-waiver facility to the EU from January 1, and relaxation of Rules of Origin (EU) under the Generalised System of Preferences (GSP) by Eurozone for the least developed countries.

Bangladesh is performing well also in new markets such as Japan, South Africa, Australia, Canada, New Zealand and some Latin American countries, Ahmed said. As a result, the exports from Bangladesh are on the rise, he added.

Zaid Bakht, research director of Bangladesh Institute of Development Studies, said exports grew due to a rise in both value and volume of garment items, although products were not diversified.

Bangladesh mainly exports basic garments, in which China, the largest apparel supplier worldwide, is not a competitor now.

“Demand for garment items is recovering from the global recession,” Bakht said.

But the government should ensure adequate supply of gas and power and keep stable the political environment to push up the export growth, he added.

Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association, said the exports of garment items increased due to price adjustment of apparel items by the international buyers.

The buyers paid more for the garment products as the prices of imported raw materials such as cotton, yarn and accessories marked a rise on the international market, he said.

Hassan said the months of July, August and September will be sluggish for the garment sector as it is the lean period for manufacturing, but the orders will go up from early October.

“We performed well in the new destinations last year,” he said.

However, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association, said the total export value went up due to the price adjustment of the garment items.

Excluding the added value that came because of a hike in prices of imported raw materials, the real export growth would be around 15 percent, Hoque said.

He also said a lot of orders shifted from China to Bangladesh last year due to higher cost of production there.

Moreover, the troubled political situation in Pakistan also helped Bangladesh bring in orders from the country, he said.

Bangladesh could have exported more had there been an adequate supply of gas and power in the industrial units.

The commerce ministry will announce today the export target for the current fiscal year.

reefat@thedailystar.net

mirzazeehan

July 12th, 2011, 09:13 PM

Thanks for sharing this wonderful news.....our exports and remittance are the main reasons for our economic growth.These two things pump enormous amounts of money into the economy.Its fantastic to grow that our exports are growing so fast...41% growth in export is surely a reason for celebration!:cheers:

burimi

October 17th, 2011, 04:21 AM

[youtube] //be/duy20RCTNBg[youtube]

tislam84

November 16th, 2011, 07:16 PM

A stride in solar panel manufacturing

Rahimafrooz Renewable Energy Ltd (RREL) is set to manufacturer solar panels in the country by next month, to tap growing demand for green energy at home and abroad.

The company has already set up a plant in Ashulia in Dhaka to manufacture 18MW PV (photovoltaic) solar panels a year with technical assistance from Spire Corporation, a US-based solar company.

“We plan to start operations at a cost of Tk 40 crore in December on a commercial basis,” says Munawar Misbah Moin, managing director of RREL.

He says the 20,000 square feet plant is being implementing under the refinancing scheme of Bangladesh Bank's green fund.

The central bank earlier formed a revolving fund of Tk 200 crore to encourage banks and financial institutions to extend low-cost loans for the fast expansion of green energy.

The company is financing Tk 10 crore and Eastern Bank Ltd is providing the rest under the refinancing scheme.

Moin, who is also a group director of Rahimafrooz, says the locally manufactured panels would be cost-effective and spur expansion of the sector.

More than 1 million solar home systems (SHSs) have been installed so far in different parts of the country and another 1.5 million will be installed by 2014 under IDCOL financing, adds Moin.

He says currently, the annual demand for solar panels is worth nearly 25 MW in Bangladesh.

A total of five other companies also plan to produce solar panels locally with a total capacity of 62 MW.

“We also hope to export solar panels,” says Moin. The company plans to export 50 percent of the production of the plant in the next three years.

About 60 percent of the cost of a SHS is the panel, which is imported from India, China and Japan, say industry insiders.

The chief of the company says the locally produced panels will reduce the cost of each SHS by 5-7 percent. The cost of a locally produced panel is 10 percent lower than imported ones.

Bangladesh is self-reliant in all the accessories needed in solar housing systems, including batteries and wires, except solar panels that convert sunlight into electricity.

The move to build the plant comes as solar power is trying to make an entry into the rural areas left untouched by the national electricity grid.

RREL, a concern of Rahimafrooz Group with annual sales of around Tk 1800 crore, ventures into solar panel assembly as the government focuses on increasing renewable energy not only for the off-grid areas but also for public and semi-government offices under the grid network.

Earlier, the government set a target to meet 5 percent of the country's total power demand by 2015 and 10 percent by 2020 through green energy.

According to RREL, the plant will help reduce carbon emission by more than 1 million tonnes, generating carbon credit worth $15 million.

Source: http://www.thedailystar.net/newDesign/news-details.php?nid=210387

mirzazeehan

November 16th, 2011, 10:29 PM

Great initiative indeed...Thanks for sharing!

TIslam

November 17th, 2011, 01:22 PM

Great initiative indeed...Thanks for sharing!

Right, but I believe the government can play a vital role in promoting alternative sources of energy by mandating a certain percentage of green technology use in new commercial construction. They could also mandate the use of solar panels as the primary back up power source with gas/diesel generators as secondaries in places like roads signage, communication towers, etc.

HereWeGo

November 17th, 2011, 03:29 PM

Right, but I believe the government can play a vital role in promoting alternative sources of energy by mandating a certain percentage of green technology use in new commercial construction. They could also mandate the use of solar panels as the primary back up power source with gas/diesel generators as secondaries in places like roads signage, communication towers, etc.

No commercial building can run on solar energy. Just not feasible. The governement can definately encourage green building that allows sufficient sunlight and may use the solar panel as water heaters but more than 95% of the energy still needs to be provided through the national grid.

TIslam

November 17th, 2011, 03:45 PM

No commercial building can run on solar energy. Just not feasible. The governement can definately encourage green building that allows sufficient sunlight and may use the solar panel as water heaters but more than 95% of the energy still needs to be provided through the national grid.

I am well aware of that and did not suggest the majority of power source would have to be solar/alternative (green) energy source since it is still cost prohibitive to do so. Rather, solar energy be the supplemental source of power for things like lighting corridors, run some fans, run some small (low wattage) appliances/building machinery, charge storage cells (batteries) on UPS and standby power supplies, and so on.

tislam84

November 17th, 2011, 08:34 PM

^^ I can see that Towhid Bhai, that would be a great idea. I think only Bangladesh Bank has some solar panels on its roof, no other buildings in Dhaka has anything like that. The government can mandate at least all the government and semi-government offices to have solar panels.

I also think greening the roofs can help the electricity problem in Dhaka. As far as I know, Chicago is taking an initiative to green the rooftops of major buildings, and this reduces heating and cooling bills by a large extent. Green rooftops can definately reduce the use of a/c to quite an extent and can also improve Dhaka's air quality.

mirzazeehan

November 17th, 2011, 11:25 PM

^^ I can see that Towhid Bhai, that would be a great idea. I think only Bangladesh Bank has some solar panels on its roof, no other buildings in Dhaka has anything like that. The government can mandate at least all the government and semi-government offices to have solar panels.
\.

My real estate friends tell me that the goverment has already made it mandatory to install solar panels on every new project...even 6 storied residential ones!
3-5 Percent of power that a building uses has to come from Solar Panels.

tislam84

November 18th, 2011, 12:15 AM

^^ That's a good initiative! It should help the power situation a bit.

TIslam

November 18th, 2011, 06:08 PM

My real estate friends tell me that the goverment has already made it mandatory to install solar panels on every new project...even 6 storied residential ones!
3-5 Percent of power that a building uses has to come from Solar Panels.

That is quite a move forward and progressive way of thinking for the housing authorities in Dhaka. Next, they ought institute a water collection and recycling policy. Commercial buildings which should include multi-tenant highrise dwellings, should be set up with a system of ducts and collection chambers that would collect rain water that would be piped in for non drinking (human consumption) use, like garden sprinklers, laundry, dishwasher/dish washing, etc.

I understand Singapore has such policy.

mirzazeehan

December 23rd, 2011, 12:43 AM

Bangladesh is finally getting the kind of attention it deserves from foreign media... :)

From engine room of economic boom: success stories you should hear
Matt Wade
December 23, 2011

Asia's challenge to the global economic order goes well beyond the rise of China and India. While those two dominate the headlines by virtue of their vast populations and runaway growth, a clutch of other Asian economies are destined to surpass Western powers.

There are forecasts that by 2050 the six biggest members of ASEAN - Indonesia, the Philippines, Malaysia, Singapore, Thailand and Vietnam - will have a similar share of the global output to Europe's big four of Germany, France, Italy and Britain.............

Indonesia has the third-youngest population in east Asia, which promises to deliver a demographic dividend while its working age population continues to grow as other countries age. These demographics will continue to boost Indonesian GDP for ''much of the next two decades'', the Reserve Bank says.

The same goes for the Philippines, which has 94 million people and an even lower median age than Indonesia's 28. The Philippines economy grew 7.3 per cent last year, driven by a post-financial crisis recovery in investment and exports, and robust private consumption. It could rank in the world's biggest dozen or so economies later this century.

Another forgotten giant is Bangladesh. Despite a population of more than 150 million and an economy which has grown consistently at 6 per cent or more, Bangladesh rates as one of the world's most under-reported economic stories. Bangladesh's big garment industry, which employs more than three million workers, has been popular with international buyers because wages are among the lowest in the world. Clothing exports nearly doubled between 2004 and 2009. Bangladesh has managed to reduce rates of poverty and improve living standards in recent years despite economic shocks and natural calamities.

Despite the growing importance and proximity of places such as Indonesia, the Philippines and Bangladesh, there's still little mainstream Australian analysis of most Asian economies.

The Reserve Bank has started to address this shortcoming with a steady stream of research papers on Asian issues published in its quarterly bulletin. The Reserve has also given far more prominence to emerging Asia in its quarterly statements on monetary policy.

Continues...................................................

Read more: http://www.smh.com.au/business/from-engine-room-of-economic-boom-success-stories-you-should-hear-20111222-1p716.html#ixzz1hJGHfGHE

Source:http://www.smh.com.au/business/from-engine-room-of-economic-boom-success-stories-you-should-hear-20111222-1p716.html

CarltonHill

December 25th, 2011, 10:49 AM

^^ Bangladesh economy is so impressive! :)

mirzazeehan

December 25th, 2011, 07:40 PM

^^ Bangladesh economy is so impressive! :)

Thanks buddy...there are also lotsa things that we can learn from Phillipines to further strengthen our economy.Espy I have always been impressed with the way your govts train workers before sending em abroad.

CarltonHill

December 26th, 2011, 05:45 AM

^^ thanks a lot... :cheers1: and I hope Philippines will learn from Bangladesh too... Especially when it comes to your country's Manufacturing industry....

btw, I love Dhaka...wish I could go there, seems like it has a tourist-friendly atmosphere & nice foods.. :)

iamgr8

January 3rd, 2012, 08:31 PM

Remittances hit record high

http://www.thedailystar.net/photo/2012/01/03/2012-01-03__bis01.jpg

Dhaka, Jan 2 (bdnews24.com) – Expatriates have set a new record by remitting around $ 1.15 billion in December, the central bank says.

The previous record was $ 1.1 billion, received in August.

"It (December remittance) was the highest last year, as also in Bangladesh's history. I hope the trend will continue in future as well," Bangladesh Bank governor Atiur Rahman told bdnews24.com on Monday.

"The central bank has taken several steps to increase remittance through banking channel. It's a reflection [of these steps]," he said. "We want 100 percent remittance to come through the banking channel. We are working on it."

Bangladesh Institute of Development Studies (BIDS) researcher Zaid Bakht said, "It's a welcome improvement amid the economic crisis. It will ease the balance of payment crisis."

According to Bakht, expatriates are remitting more as value of dollar rose against taka in recent past.

"Many expatriates might have had savings and they are sending the money to the country after the value of dollar went up. It might be the reason behind the increase in remittance," he said.

Banks sold dollar at Tk 82 on Monday, according to the Bangladesh Bank.

In the last year, value of dollar rose against taka by 15 percent, with December itself witnessing an increase by about Tk 5.

INCREASED TRANSFER OF FUNDS

The country received around $ 6.07 billion remittance in the first half of the current fiscal -- a 9.27-percent increase over $ 5.5 billion received in the same period the year before.

The rate of increase in remittance had been a measly 1 percent between July and December 2010.

Expatriates sent $ 1.01 billion in the first month of the current fiscal. The amount was $ 855.4 million in September 2011, $ 1.03 billion in October and $ 908.1 million in November.

The remittance inflow grew 25.92 percent in December 2011 in comparison with November, and 18.09 percent vis-à-vis December 2010.

While the flow of remittance usually increases before Eid-ul-Fitr and Eid-ul-Azha, December did not have any such festival, which should herald more cheers for the economy.

The increased rate of remittance has lifted some pressure off the central bank's foreign exchange reserve. The reserve, which was $ 9.2 billion two weeks ago, stood at $ 9.64 billion on Monday.

BB governor Atiur Rahman said letters were sent to Bangladesh missions in every country, asking them to inspire expatriates to remit more through banks. "Expatriates are requested to communicate with the central bank whenever they face any problem," he said.

According to BB, $303.9 million came through four state-owned commercial banks, while $ 10.5 million through two specialised banks. Thirty private banks handled remittance of $ 816.8 million and nine foreign banks $ 13 million, according to the central bank.

http://bdnews24.com/details.php?id=215102&cid=2

iamgr8

January 5th, 2012, 01:09 PM

NBR to launch e-payment system by March
Thursday, January 5, 2012

The National Board of Revenue (NBR) plans to introduce e-payment system by March to make income tax and other revenue payments easy and hassle-free.

"We're hopeful of introducing the e-payment system from March this year. It will bring a revolutionary change in tax payment system as taxpayers will be able to clear their payment online," said NBR Chairman Nasiruddin Ahmed.

As part of the automation of the entire revenue collection process, NBR has been implementing a project with financial and technological support of International Finance Corporation (IFC) to introduce the e-payment system, he said.

"I'm hopeful that our revenue collection would also be increased," said Ahmed. He added the tax administrator would carry out a massive campaign before and after the introduction of the system to encourage people for using it.

While elaborating the system, an NBR official said taxpayers will be able to make their payment through credit or debit cards and bank accounts and they will receive payment receipt immediately after making such payments.

ICT firm Q-Cash, Sonali Bank and NBR will jointly operate the e-payment system, said Kanun Kumar Roy, NBR's e-governance focal officer and director general of the Directorate of Tax Inspection.

"Twenty-six banks are connected with Sonali Bank's Q-Cash system. Taxpayers having account or credit card with any of these 26 banks will be able to enjoy the online payment facility," Roy added.

A taxpayer will have to open NBR website and follow the instructions to get payment clearance receipt.

"Taxpayers having no credit or debit card will have to send a message to the bank concerned about the payment through NBR website," Roy said.

Roy said the NBR has included Sonali Bank in the system because payments of income tax, VAT and customs duties are deposited to Bangladesh Bank or Sonali Bank through treasury bills.

http://www.thedailystar.net/newDesign/news-details.php?nid=217078

iamgr8

January 9th, 2012, 08:59 PM

Bangladesh's Tk 2 note is world's most beautiful note !

http://img545.imageshack.us/img545/5339/twotakabg20120109124136.jpg

Bangladesh’s two taka note was ranked 1st among the most beautiful bank notes worldwide, according to a poll at Russian online entertainment outlet.

The 50 thousand dobra note of São Tome and Principe became the runner-up followed by 1 Bahamian dollar and 5 Bahraini dinars.

Georgia’s 10 lari note was voted 5th, with 10 Hong Kong dollars, 10 Cook Islands dollars, 50 Israeli shekels, 20 thousand Island krona note, 50 Faeroe Islands kronurs positioned 6-10th resp.

New Zealand, Romania, Maldives, Singapore, Comoros, French Polynesia, Switzerland, Sweden, Jamaica and Japan were voted 11-20th.

BDST: 1338 HRS, JAN 09, 2012

http://www.banglanews24.com/English/detailsnews.php?nssl=72e0a400c7b6e0beb7f2992c5378b3f6&nttl=2012010930381

Aerithia

January 10th, 2012, 05:24 PM

manbil777

January 11th, 2012, 06:58 AM

Seriously, i'm impressed.

For being such a small country and pretty overpopulated the economy of Bangladesh has done very well it seems, i heard it was one of the fastest growing economies at the moment.

Much love from Iran!

And the same to you! Motashakeram from all of us...

The secret is that it did not happen in one day but after multiple decades of bad policies, lack of resources and the worst governance on the planet. But Thanks to a nice blend of frugality, a pretty vibrant private sector and womens empowerment and many other promising factors it is slowly making some progress.

HereWeGo

January 11th, 2012, 09:06 PM

And the same to you! Motashakeram from all of us...

The secret is that it did not happen in one day but after multiple decades of bad policies, lack of resources and the worst governance on the planet. But Thanks to a nice blend of frugality, a pretty vibrant private sector and womens empowerment and many other promising factors it is slowly making some progress.

I lot of credit must also go to NGO's like BRAC and Grameen. Truly been a major force in poverty alleviation and women empowerment....

iamgr8

January 22nd, 2012, 10:23 PM

IDB to set up country office in Dhaka
Monday 23 January 2012

The Islamic Development Bank (IDB) is going to set up a full-fledged country office in Dhaka, as part of the lender’s growing interest for the emerging economy.

A six-member delegation of IDB called on Economic Relations Division (ERD) Secretary Iqbal Mahmood at his office Sunday and placed a draft proposal to this effect, ERD officials said.

The delegation is also scheduled to discuss the issue with the foreign and law ministries and the Chairman of National Board of Revenue (NBR) during its five-day visit to Dhaka which began Friday.

Country Department Director of IDB, Mohammad J Al-Saati, is leading the delegation styled ‘IDB Group Gateway Country Office Facts Finding Mission.’

“The latest move of the lending agency is obviously a good one because it reveals that IDB is attaching more importance to Bangladesh,” a highly placed ERD official told daily sun.

He said IDB’s activity in the country will definitely increase with the setting up of lending agency’s permanent office in Dhaka, which will also facilitate quick financing.

In the meeting, the delegation sought similar facilities from the government provided to international financing organisations being operated through country offices in Dhaka, ERD sources said.

“The issue involves different ministries….but the foreign ministry has the final say to give permission after signing an agreement with them,” the official said.

More discussions will be needed on issues related to the office place, staff and immunities, he added. The facilities might be the same as like other diplomatic missions in the country, he hinted.

Financial agencies World Bank, International Finance Corporation and Asian Development Bank, including others, have already set up their country offices in Dhaka. Of them, the government had provided with land only to WB and ADB.

IDB has so far provided Bangladesh with around US$ 7 billion, of which roughly $6 billion was trade financing for purchasing of fuel oil.

The lending agency of Islamic countries yearly provides with $10 to 15 million as project assistance to Bangladesh. Currently there are 10 on-going development projects under IDB financing.

http://www.daily-sun.com/?view=details&type=daily_sun_news&pub_no=29&cat_id=1&menu_id=3&news_type_id=1&news_id=5465&archiev=yes&arch_date=23-01-2012

British-Bangladeshi

February 2nd, 2012, 02:54 AM

Standard & Poor's, a leading rating agency in the world, has affirmed Bangladesh's sovereign credit rating with a stable outlook, which would give a much-needed boost to the country's under-pressure economy.

The US-based financial services company gave Bangladesh a “BB-”, thanks to its strong growth prospects, adequate external liquidity and substantial donor commitment to improve its debt ratios, according to its latest update as of January 13.

Bangladesh received the same rating and outlook from the firm in 2011 and 2010.

The rating came a few days after another international rating agency, Moody's Investors Service, reassessed Bangladesh and left its rating unchanged at “Ba3”, which the central bank believes would help the country float its first ever sovereign bonds.

The outlook reflects an unchanged rating based on their quarterly desk review of the economy, sad Hassan Zaman, senior economic adviser to the governor of BB.

The rating agencies will visit Bangladesh for a more in-depth assessment of macroeconomic developments in April-May this year and will review the rating at that stage, he told The Daily Star.

Both ratings are expected to give Finance Minister AMA Muhith "a sigh of relief", who only Tuesday said a black shadow came over the economy due to uncertain trends on the global economic front.

In its report in November last year, Standard and Poor's said Bangladesh's limited fiscal flexibility due to a low revenue-generation capacity against, relatively high public and external debt and significant physical and human capital development needs constrain the sovereign ratings.

"Strong and stable economic growth and ongoing substantial donor engagement, which support continued improvements in debt ratios, underpin the ratings. Adequate central bank reserve coverage is another supporting factor for the ratings," it said.

Sovereign credit rating is an important tool to position a country in the global financial arena by providing information on the overall economic situation.

Standard and Poor's said the stable outlook reflects Bangladesh's strong growth prospects and ongoing donor support, which ensures low-cost and long maturity external debt that minimises refinancing risk. These factors are balanced against emerging balance of payments (BoP) pressures as remittance growth slows and imports expand, and the risks from rising inflation and a weakened banking sector.

"We could raise the ratings if the government persists with measures to expand the revenue base and improve administrative and collection efficiency, leading to a material rise in its revenue. We could also upgrade Bangladesh if rising investment leads to a sustainable increase in real GDP growth."

"Conversely, we could downgrade the sovereign if fiscal slippages result in rising public debt and external donor support declines materially. We could also lower the ratings if incipient BoP pressures accentuate and lead to an erosion of external liquidity through lack of appropriate policy responses," said Standard and Poor's.

http://news.priyo.com/business/2012/02/02/bangladesh-keeps-stable-outloo-46288.html

British-Bangladeshi

February 2nd, 2012, 02:57 AM

Despite global economic crisis, Bangladesh’s export to the European market is on the rise and the total export was about 6.6 billion euro in the first nine months of 2011.

Bangladesh’s export registered a 38 percent growth during the nine-month period compared to the corresponding period in 2010, European Union’s Head of Delegation in Dhaka William Hanna said here on Wednesday.

Hanna came up with the observation while addressing the inaugural session of a two-day international workshop at Sonargaon Hotel in the city.

Not only the duty-free access to the European market, but also Bangladeshi products qualitative standards helped achieve the growth, he said adding that opportunities are there to expand Bangladesh’s market further in Europe.

United Nations Industrial Development Organization (UNIDO), Bangladesh Standards and Testing Institution (BSTI), and Bangladesh Accreditation Board (BAB) jointly arranged the two-day international workshop titled ‘Conformity Assessment for Asian Developing Economies.’

Industries Minister Dilip Barua addressed the programme as the chief guest while Industries Secretary KH Masud Siddiqui, UNIDO director (Trade Capacity Building Branch) Lalith Goonatilake, ITU Standardisation Bureau Director Malcom Johnson, head of Conformity Assessment, ISO Sean MacCurtain, executive secretary of the International Electrotechnical Commission Pierre de Ruvo spoke at the session as special guests with BSTI DG AK Fazlul Ahad in the chair.

Dilip Barua said Bangladesh needs the conformity assessment facilities for goods and services both at the time of import and export to ensure benefits to everyone - consumer, manufacturer and supplier - in the supply and demand chain.

“We need a group of professionals with highly technical expertise and skills on conformity assessment to mitigate the growing challenge and the demand of export and import,” he said.

He hoped that the workshop will be able to depict a concrete roadmap for strengthening and upgrading the existing standardisation infrastructure to the right way of achieving regional and international recognition.

Sixty-five participants representing different specialised areas, such as accreditation officials, policymakers and regulators, industrialist, laboratory professionals, academician and telecom sector specialist from eight Asian countries - Afghanistan, Bhutan, Cambodia, India, Maldives, Nepal, Pakistan and Bangladesh - are participating in the workshop.

http://news.priyo.com/business/2012/02/01/bangladesh-s-export-european-m-46259.html

sudpita.166

February 2nd, 2012, 04:56 AM

mirzazeehan

February 3rd, 2012, 01:05 PM

Does anybody know what bangladesh total exports are in 2011? I tried to googling it, but couldn't find anything. I found an article which said it was $2 Billion USD but that was 3 years ago from 2010.

Bangladesh's total exports in fiscal year From july 2010 to June 2011 stood at almost 23 Billion US and remittance stood at almost 12 billion USD.
This year,Bangladesh has targeted to achieve 26.7 billion USD.

About 5 years ago,Bangladesh's exports were only 10 billion USD!

King Nothing

February 3rd, 2012, 02:43 PM

Most foreign aid spent on loan payback

Dhaka, Feb 2 (bdnews24.com) — More than half of the foreign aid received has been spent paying back interest and instalments of previous loans.

Economists are attributing the fall in aid to various reasons, including the complication regarding World Bank's funding of the Padma bridge and the failure to properly utilise the loans.
Meanwhile, interests on previous loans have grown as a result of which net foreign aid has fallen.

Economic Relations Department (ERD) statistics show that loans and aid worth $807.4 million have been injected into the country in the first half (July to December) of the 2011-12 fiscal. Of that amount, $415.3 million has been spent paying back instalments of previous loans.

As a result ,the net aid for the time period is $392 million, 35 percent less than what it was in the same time frame of the previous fiscal (2010-11).

In the previous fiscal, the inflow of loans and aids stood at $984.5 million of which $388 million was spent in payback, making the net foreign aid $603.6 million.

"One of the biggest reasons for the economic crisis in our country is the fall in foreign aid," former caretaker government advisor A B Mirza Azizul Islam told bdnews24.com

"Despite the ongoing global economic depression, our export income and remittance sent by non-resident Bangladeshis have maintained and are still showing a positive trend."

"But the fall in foreign aid has put our foreign currency reserve under pressure leading to the continuous hike in the price of the dollar. The implementation of the [Annual Development Programme] is also not good," he added, advising the government to take necessary steps to hasten disbursement of aid in the pipeline.

Finance minister Abul Maal Abdul Muhith also admitted that the inflow of foreign aid has decreased. However, he has blamed the related ministries for the fall.

Speaking at a discussion organised by the Federation of Bangladesh Chambers of Commerce and Industries on Wednesday, the finance minister refused to take responsibility for bad use of foreign aid.

"My job is to procure aid, and I did. It's used by different ministries and it is their failure if they couldn't (put them to good use)," he said.

However, another caretaker government advisor, Akbar Ali Khan, sees storms brewing in the horizon. "If the settlement of the conflict with World Bank over the Padma bridge funding is not respectable, then foreign loans and aid might fall further in future."

He urged the government not to make 'light' of the World Bank's graft accusation and resolve the matter quickly. "The policymakers of the government should consider the fact that if the World Bank does not fund the Padma bridge, there is enough doubt about whether they will lend for our other projects," Khan said.

"The conflict regarding the World Bank funding has been hanging for a while. Other donors are also waiting for a resolution. If the matter is resolved well then they will extend their helping hand to Bangladesh. Otherwise dark days are waiting for us regarding foreign aid and loans."

ERD data shows that a total of $1.77 billion of foreign aid flowed into the country in the 2010-11 fiscal, of which $727.5 million was spent in payback making the net aid stand at $1.05 billion dollars. In 2009-10 fiscal, the net aid stood at $1.48 billion after $2.16 billion aid flowed in and $687.4 million was spent in payback.

"As our loans have increase over the days, it is only natural that there will be a hike in our payback also. However, in recent times the amount of payback has increased more in comparison to our previous fiscals," Mirza Aziz said about the increase in loan payback.

"Since we could not find any alternative to foreign aid yet, we will have to go on paying back these loans over the years," he added.

Data analysis on foreign aid over the past few years shows that net aid was $1.18 billion in 1999-00 fiscal which fell to $ 952.3 million in 2000-01 before rising to $1.02 billion in 2001-02 and $1.13billion in 2002-03.

Another slump was recorded in 2003-04 with net aid amounting to 610.3 million. In 2004-05 it rose again to $1.02 billion, in 2005-06 it was $1.08 billion, in 2006-07 the net aid stood at $1.1 billion, 2007-08 at $1.38 billion and in 2008-09 at $1.02 billion.

Meanwhile, the current budget has targeted Tk 130.51 billion net aid from foreign sources, meaning that a total of Tk 186.85 billion has been targeted. Of the amount, Tk 56.27 billion have been aimed to be spent in payback.

In the last budget, the government targeted Tk 159.68 billion in foreign aid which was lowered to Tk 109.2 billion in the budget amendment near the fiscal's end.

The planning ministry records show that Tk 127.03 billion of the Tk 460 billion ADP has been spent in the first half of the current fiscal. Export earnings have grown 14.72 percent and remittance flow has increased 9.33 percent.

http://www.bdnews24.com/details.php?cid=2&id=217499&hb=1

British-Bangladeshi

February 4th, 2012, 01:36 AM

Roundtable: Unlocking Bangladesh’s potential

Bangladesh has been growing consistently during the past decade, but the country has plenty of room for growth. A panel led by the central bank governor discuss the opportunities.

At the end of last year, FinanceAsia and HSBC jointly held a roundtable discussion in Dhaka, Bangladesh, to talk about the country’s overlooked potential.

The roundtable was led by Atiur Rahman, the governor of Bangladesh Bank, and included business leaders from Pran-RFL Group, Sunman Group, Sadat Jute Industries, The Daily Star, Graphicpeople, Dewhirst Group, the Institute of Business Administration at the University of Dhaka, Apex Spinning and Knitting Mills, and HSBC.

Rahman opened the discussion with the following introduction:
The Bangladesh story is a well-kept secret. Most of all, it is a story of entrepreneurship. In the early 1970s, there was very little expectation that we would become such a big exporter or that, in effect, every Bangladeshi would become an entrepreneur.

In fact, Bangladesh is the only country in the region that has grown consistently during the past decade, despite political upheavals and natural calamities. The poverty level has halved during the past two decades and income inequality is declining, as shown by the falling Gini coefficient. Other social indices are also improving: levels of immunisation and nutrition are better than in India, for example.

Meanwhile, exports are going from strength to strength, and include apparels, leather, shipbuilding (four ships were exported to Germany during the past few months), pharmaceuticals, software and jute. There is also geographic diversification for the destination of those exports, with new markets found in Japan, Russia and all around the world.

Bangladesh is one of the lowest-cost countries, despite recent inflationary pressures. A flexible exchange rate also helps our exporters. However, there is room for further export growth, which is now gaining 3% share of GDP every year, and a per-capita-income of $800 means the country has massive potential for increased affluence.

Bangladesh is also providing for facilities to be an offshore centre for outsourcing. Today, 50% of our economy is driven by the service sector, so financial intermediation plays a vital role. We at the central bank have taken the initiative by improving automation, while commercial banks such as HSBC can bridge the gap between local and international activities. Bangladesh certainly welcomes foreign investors — and it’s worth bearing in mind that foreigners have always enjoyed a stable operating environment here despite the challenges of being a developing nation.

The strategic geographical position of Bangladesh, as a gateway to India and the Middle East, is also important. Finally, looking ahead, perhaps the key to further progress is to elevate the branding of Bangladesh. Meetings such as this one, sponsored by HSBC and FinanceAsia, can do a lot to help this process.

http://www.financeasia.com/News/289058,roundtable-unlocking-bangladesh8217s-potential.aspx

TIslam

February 4th, 2012, 02:52 AM

Most foreign aid spent on loan payback

Dhaka, Feb 2 (bdnews24.com) — More than half of the foreign aid received has been spent paying back interest and instalments of previous loans.

........................

Data analysis on foreign aid over the past few years shows that net aid was $1.18 billion in 1999-00 fiscal which fell to $ 952.3 million in 2000-01 before rising to $1.02 billion in 2001-02 and $1.13billion in 2002-03.

Another slump was recorded in 2003-04 with net aid amounting to 610.3 million. In 2004-05 it rose again to $1.02 billion, in 2005-06 it was $1.08 billion, in 2006-07 the net aid stood at $1.1 billion, 2007-08 at $1.38 billion and in 2008-09 at $1.02 billion.

Meanwhile, the current budget has targeted Tk 130.51 billion net aid from foreign sources, meaning that a total of Tk 186.85 billion has been targeted. Of the amount, Tk 56.27 billion have been aimed to be spent in payback.

In the last budget, the government targeted Tk 159.68 billion in foreign aid which was lowered to Tk 109.2 billion in the budget amendment near the fiscal's end.

The planning ministry records show that Tk 127.03 billion of the Tk 460 billion ADP has been spent in the first half of the current fiscal. Export earnings have grown 14.72 percent and remittance flow has increased 9.33 percent.

http://www.bdnews24.com/details.php?cid=2&id=217499&hb=1

Does the above imply that Bangladesh is yet unable to undertake any major development work on its own, sans external funds? :ohno:

mirzazeehan

February 4th, 2012, 03:05 AM

Does the above imply that Bangladesh is yet unable to undertake any major development work on its own, sans external funds? :ohno:

Foreign Loan is one thing and Foreign Aid is another....

It is important we remember that Bangladesh last year earned "22.8 billion USD" from exports and "11.7 billion USD" from Remittance.Therefore,last year

1.Bangladesh's total income was 11.7 + 22.8 = 34.5 Billion USD.
2.Bangladesh government's annual budget is now about "20 Billion USD"
3.Bangladesh GDP is at over "100 billlion USD"
4.Bangladesh Government's expected revenue this year is over "11 Billion USD"

5.And even at its peak,Foreign Aid per year has been "1 Billion USD".....

There is a large gap between budgeted expenditure and revenue in our budget,due to corruption or inefficiencies in tax,revenue collection.So yes,its true,that without foreign loans,it becomes difficult for Bangladesh Government to undertake large projects..However,loans are repaid with interest,so they should not be considered "grants,help,or aid".And Bangladesh never defaults on its loans,unlike many other countries!Which is why Standard and Poors still rates Bangladesh fairly!

TIslam

February 4th, 2012, 03:09 PM

Foreign Loan is one thing and Foreign Aid is another....

I'm well aware of the distinction b/w foreign aid and foreign (external) loan. Nevertheless, if the fact remains that the country does not have the financial resources that can be raised internally to devote towards any large infrastructural project(s), then the country does not have much to show for, in its 40+ years of existence.

On the other hand, I see nothing wrong to borrow from multilateral lending agencies, a la ADB, WB, IDB, etc., to undertake large infrastructural projects. China and India has been doing that for decades.

tislam84

February 4th, 2012, 08:57 PM

^^ Or raise money by issuing bonds

TIslam

February 4th, 2012, 09:39 PM

^^ Or raise money by issuing bonds

What a novel concept! Question is, are the so-called financial markets (in Bangladesh) whether public or private, even aware of such (financial) instrument? I've never heard the government or any business entity issuing bonds for anything? I don't think there is any bond market in Bangladesh, is there?

tislam84

February 4th, 2012, 09:59 PM

^^ I don't think so. Which is very sad. I remember the government, with much fanfare releasing the news of their ratings by Moody's, but the question is, what good is that rating if we don't use it to raise capital from the international bond market?

King Nothing

February 4th, 2012, 11:18 PM

Does the above imply that Bangladesh is yet unable to undertake any major development work on its own, sans external funds? :ohno:

It means both foreign aid and foreign loans are useless. I was watching a speech by Imran Khan where he was saying if Pakistan could collect tax revenues properly it wouldnt need foreign aid. Infact he plans to stop all forms of foreign aid if he comes to power. The same applies to Bangladesh. The recent 1 billion dollar loan from India is a clear example of a harmful loan. Its also high time we kicked the world bank out of the country.

King Nothing

February 4th, 2012, 11:23 PM

^^ Or raise money by issuing bonds

The only solution is for the rich (a.k.a 1%) to pay their fair share of taxes and nothing else. All this neo-liberal "market is god" non-sense wont do anything.

King Nothing

February 4th, 2012, 11:40 PM

On the other hand, I see nothing wrong to borrow from multilateral lending agencies, a la ADB, WB, IDB, etc., to undertake large infrastructural projects. China and India has been doing that for decades.

Arundhati Roy explains what is wrong with India today

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tislam84

February 5th, 2012, 02:08 AM

^^ I got to ask you Mr. Nothing, what is 'fair share' of taxes?

Sure Ms. Roy makes sense. Lets go back to primitive ages, and not create and develop cities/states/nations. What's her solution which country India should follow? She doesn't answer that question. Sure there are winners and losers in development, but what is her soulution to that problem? Or your solution?

mirzazeehan

February 5th, 2012, 02:57 AM

Arundhati Roy explains what is wrong with India today

0KNOOY8Fdvw&feature=related

Why build infrastructure when it may displace people!:lol: the poverty rate is false,it hasnt been halved:lol:Why extract resources that the aboriginals of the area don't need:lol:The maoists are fighting to implement the constituition:lol:

tislam84

February 5th, 2012, 04:27 AM

^^ Exactly Mirza! I feel like these people fight for people's rights not because they care for those people, but because they want to be in the limelight (the 'limelight-hoggers'). If she really cared about the indigenous people, she would have made sure that they got their fair share from the deal. What good it is if the bauxite stays underground for eternity? Are the indigenous being helped? No one wins from that scenario.

There are some of those 'limelight-hoggers' in Bangladesh too. I remember seeing a natok a while back where this woman is the champion of woman's lib in Bangladesh, yet she didn't even give the basic rights to her servants.

dd2402

February 5th, 2012, 08:59 AM

reminds me of Bangladesh's Anu mohammed and the coal gas blablabla protection committee crap....we don't have electricity and you won't even let us dig the coal...dam you buddhijibis...

King Nothing

February 5th, 2012, 10:39 AM

^^ I got to ask you Mr. Nothing, what is 'fair share' of taxes?

The amount they are supposed to pay in taxes. Bangladesh has one of the lowest tax as a percentage of GDP in the world.

Infact the rich dont pay their fair share of taxes anywhere in the world. They dont do it in the US and they dont do it in Australia.

Sure Ms. Roy makes sense. Lets go back to primitive ages, and not create and develop cities/states/nations.

When the xxxx did she say that?

the poverty rate is false,it hasnt been halved

800+ million people live under the poverty line in India

Or your solution?

Resources should be nationalized and not handed over to foreign companies. What Mosaddegh tried to do in Iran. What has happened in Argentina, Venezuela and Bolivia.

There are some of those 'limelight-hoggers' in Bangladesh too. I remember seeing a natok a while back where this woman is the champion of woman's lib in Bangladesh, yet she didn't even give the basic rights to her servants.

You derive your morality from natoks? Man thats fucked up. Well what can u expect from a Republican :lol:

The maoists are fighting to implement the constituition

Taking away land from the indigenous people is a violation of the Indian constitution.

reminds me of Bangladesh's Anu mohammed and the coal gas blablabla protection committee crap....we don't have electricity and you won't even let us dig the coal.

Why build infrastructure when it may displace people!

We've done that in the past. When we built the Kaptai dam that flooded land that belonged to the Chakmas. For which they formed they shanti bahini and asked for autonomy. In response to which we sent our military in and massacred and raped a bunch of people. Sounds very similar to what (West) Pakistan did to us. You would like that incident to be repeated?

I feel like these people fight for people's rights not because they care for those people, but because they want to be in the limelight

I dunnow where you come up with such horse-crap. She is one of the bravest persons in India and an amazing writer. Loved her novel and always look forward to her pieces. Whether they are on Kashmir, terrorists, minorities or indigenous people. The Indian elite have tried to intimidate her many a time but she hasnt backed down.

She says it best when she says "The biggest secession in India has been the secession of the rich and middle-class into outer space from where they look down and say what is our bauxhite doing in your mountains? What is our water doing in your rivers?"

Btw she also mentions how the resources are not being used to benefit the indigenous or even the Indians in general but are being given to the MNCs. I guess its what happens when u open your country up to the world bank.

tislam84

February 6th, 2012, 03:22 AM

^^ Again, my question to you is, what is fair share? You didn't answer that question. Should the rich pay 20% of tax revenue? 40%? Or 100%? See, that's what bothers me, what IS FAIR share? I don't know about Australia, but in the US, the top 1% earn 18% of the income and pay 27% of the taxes (http://www.factcheck.org/2008/05/top-1-what-they-make-and-pay/). Whether that's fair or not, is anybody's guess.

Ms. Roy said that she does not believe in nation-states in the video. So, in her words, there should not be any nations, which implies that there should not be any governments. Unless we are living in a communist utopia, I don't see how you can have anything other than subsistence living possible. Can you?

And, don't believe everything a person says. 800 million living below poverty line. Where did she get that? The official measure says 300 million live in poverty, not 800 million.

And I am not a Republican, I just hate polarities when it comes to to any kind of economic and political thought. So please don't make assumptions about it. My natok example was to show you perception of people in Bangladesh, not to use it as a concrete example.

And as I said, if she really cared about the indigenous people, she would fight for their rights. What good is resources being kept underground? Because that's what she wants. Just because she is a good write does not make her right. Extract the resources and make sure that the indigenous people get a fair share. And besides, the indigenous people do not own the natural resources, its the property of the nation, and the nation should use them to get the most benefit.

King Nothing

February 6th, 2012, 12:13 PM

Ms. Roy said that she does not believe in nation-states in the video. So, in her words, there should not be any nations, which implies that there should not be any governments. Unless we are living in a communist utopia, I don't see how you can have anything other than subsistence living possible. Can you?

I dont believe in the nation-state either. Nation-state is different from "nation" or "government". Its something that came about after the treaty of Westphalia. As Noam Chomsky says "States are violent institutions and we should do away with them in the near future". The nation-state is a modern/capitalist structure of social organization.

Again, my question to you is, what is fair share? You didn't answer that question. Should the rich pay 20% of tax revenue? 40%? Or 100%? See, that's what bothers me, what IS FAIR share? I don't know about Australia, but in the US, the top 1% earn 18% of the income and pay 27% of the taxes (http://www.factcheck.org/2008/05/top...-make-and-pay/). Whether that's fair or not, is anybody's guess.

In the case of Bangladesh fair share what they are required to pay by law. Look up "tax faki" articles on Bangladesh. I wont spoon feed you. But ideally a country to should have a progressive tax structure with the precentage you pay in taxes going up as you earn more. When you have a country where 1/5th of the ppl dont have healthcare and infrastructure and education are falling apart thats when u know the 1% arent paying their fair share of taxes and need to pay more.

XdVODFombco&feature=related

Your stats are wrong btw. According to this Al-Jazeera vdo, the richest 1% of Americans make 1/5th of the country's income and command 40% of its wealth. In 2007, the richest 10% of the households captured half of the country's earnings.

And I am not a Republican, I just hate polarities when it comes to to any kind of economic and political thought. So please don't make assumptions about it.

You said you were a Republican some months back. Go backtrack and check on your posts.

And, don't believe everything a person says. 800 million living below poverty line. Where did she get that? The official measure says 300 million live in poverty, not 800 million.

Just like I shouldnt belive it when you say it? :lol:. Either way I'll trust an Indian over a non-Indian on thsi kind of data.

nd as I said, if she really cared about the indigenous people, she would fight for their rights.

WTF?? Thats what she is doing.

And besides, the indigenous people do not own the natural resources, its the property of the nation, and the nation should use them to get the most benefit.

The indigenous people have their own life-style which they have been following for thousands of years. And to such poor people their land is the most important asset. We have our own horrible experiences with indigenous people in Chittagong Hill Tracts for which we should apologize to them. This sort of get the xxxx off the land you primitive people we need the resources for a modern economy is very racist.

Because that's what she wants.

Again when did she say that? She said she doesnt want them being handed over to MNCs at the expense of the poor people. Its not like these resources are being used for the benefit of the people.

British-Bangladeshi

February 9th, 2012, 07:13 PM

4 more Special Economic Zones to be set up; announcement soon

Finance Minister AMA Muhith on Thursday said four more Special Economic Zones (SEPZs) will be set up in the country and there will be an announcement in this regard in the next few months.

“We intend to announce in the next few months four more Special Economic Zones to be set up in four different areas of the country,” he said while addressing the inaugural ceremony of the 9th Dhaka International Textile & Garment Machinery Exhibition held at the Bangabandhu International Conference Center (BICC).

Bangladesh Textiles Mills Association (BTMA) and Yorkers Trade & Marketing Services Company Ltd are jointly organising the four-day exposition where textile machinery manufacturers from 31 countries have been put on display.

The countries include the USA, the UK, Germany, Canada, Japan, Turkey, India and Pakistan.

President of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) AK Azad spoke on the occasion as special guest while BTMA president Jahangir Alamin delivered the welcome address.

Speaking as the chief guest, Muhith said there are already three SEZs in the country and under the new SEZs to be set up, industries can look for opportunities where the government can provide the ancillary facilities such as communication, transport, source of energy and help investors to acquire land.

Mentioning that land is essential for the development of industries, transport and housing, the Finance Minister said land prices in Dhaka is one of the highest in the world and the government is trying to overcome this difficulty.

Despite the reduced global demands of goods and services in Europe and in the USA due to the recession, Muhith said Bangladesh has done very well as it had achieved export growth of 41 percent in the last year. “This year, the export growth will be around 14 percent while the import growth 11 percent.”

In the last three decades, the Finance Minister said, the country’s entire textile sector reached a stage for which the nation could be proud of. “And the credit for that goes to entrepreneurs and workers.”

He also urged the entrepreneurs to take care of the workers and labourers. “This is the responsibility for the industrialists.”

Muhith also stressed the need for a greater coordination of actions among these various institutions of the apparel sector, including BTMA, BGMEA and BKMEA.

FBCCI president AK Azad said the business community and the government are working together to boost the country’s economy. He hoped that the country’s export earnings in the next five years would reach $ 50 billion if 20 percent average export growth is maintained.

He said countries like Turkey and Germany want to relocate their industries to Bangladesh and they will do that if the government can ensure necessary backup support to the textile sector.

BTMA president Jahangir Alamin said over the last three decades the primary textile sector emerged as a strong backward linkage for the export-oriented readymade garment factories of the country.

He said the textile mills in the country are now capable of supplying 85-90 percent of knit yarn requirements and 35-40 percent of woven fabric requirements of RMG exporters apart from meeting the full domestic requirement.

http://www.unbconnect.com/component/news/task-show/id-67989

British-Bangladeshi

February 16th, 2012, 10:10 PM

Bangladesh might be South-East Asian economic hub: Blake

Fri, 17/02/2012

Bangladesh can be a hub of economic activities in south-east Asia if proper infrastructure is developed accordingly, US assistant secretary of state for South and Central Asia Robert O Blake has said. Sounding a high resonance about the country’s economy, the US top official said Bangladesh has made substantial economic progress over the past two decades and is well positioned to accelerate its economic growth if it can address infrastructure constraints and other impediments to investment.

Although the pace of change is slow and challenges are substantial, Blake said dynamism, resilience and entrepreneurship of Bangladeshi people will help weather such challenges.

The visiting dignitary also pointed to the fact that Bangladesh has constantly grown at 6 per cent and remained almost unaffected by the 2008 global crisis and offers opportunities for increased US investment and exports.

Terming US the most important economic partner of Bangladesh, Blake said the two countries will celebrate 40 years of diplomatic relationships this year.
“We are Bangladesh’s largest single export market, its leading source of investment and third biggest sources of remittances.”

He said US-Bangla economic ties contribute to the livelihood of millions of Bangladeshis. “Also, thanks in no small part to the entrepreneurship and leadership of AmCham members, US exports to Bangladesh roughly doubled to more than $1 billion in 2011 and helped support some 10,000 jobs at home.”

Addressing a luncheon programme of the American Chamber of Commerce (AmCham), the US high official said the two countries are now exploring ways to establish a formal mechanism for economic dialogue to tap business opportunities.

Jointly organised by the US embassy in Dhaka and AmCham, the meeting was addressed by chamber president Abtab Ul Islam and executive director A. Gafur. The meeting was attended among others by US ambassador to Bangladesh Dan Mozena and consul general in Kolkata Dean Thompson.

Dwelling on his government’s economic activities, Blake said economic engagement with Bangladesh is designed to strengthen the American economy, create business opportunities in the region and advance stability and prosperity in South and Central Asia.

Underlining a ‘ new silk road vision’, he said establishing linkages in energy, trade, transit and among people between South and Central Asia with Bangladesh will play a key role in this regard.

When such vision comes into a reality, Blake said goods produced in Bangladesh would find their way to neighbouring markets in India and beyond Afghanistan and central Asia. This ‘new silk road’, like the historic Grand Trunk Road of the Sher Shah dynasty during the Moghal empire, would open the untapped potential for economic cooperation in the region.

He said US supports Bangladesh’s efforts to strengthen regional economic ties, particularly with India. “Increasing trade will bring substantial benefits for the peoples of Bangladesh and India”.

On Indo-Bangla relations, he lauded both the governments for their efforts to improve bilateral relations and resolve outstanding conflicts.

“Hasina’s visit to Delhi and Monmohon’s visit to Dhaka are the most visible examples of the two countries’ remarkable recent efforts to put aside differences and build new bridges, representing a credible model for regional cooperation throughout South Asia,” he added

Bangladesh economic future, he said, is not only about the future of South Asia but about its growing relationship with East Asia and the rest of the world. In this regard he pointed out President Obama announced a renewed focus on American engagement with East Asia. The region already generates more than half of global output and nearly half of global trade.

Asked about Padma Bridge, Blake said in the case of big project the government should maintain transparency and accountability and give attention to rule of law so that the shareholders can see there is no irregularity.

Earlier in his address, the AmCham president pointed out the impediments to the country’s economic development investment.

News Source:
The Independent

British-Bangladeshi

February 23rd, 2012, 09:19 PM

Frozen food exports keep growing

Braving economic meltdown throughout the world, the country’s frozen food export sector posted a 7.56 per cent growth in the first seven months of the current fiscal over the same period a year earlier.

According to the Export Promotion Bureau (EPB), the sector fetched $ 413.32 million during July -January against 384.27 million during the same period last fiscal. The earning also surpassed the target by 3.48 per cent against 399.42 million strategic target set by the government for the period.
Of the total earning during the period, $302.12 million came from exports of shrimps only. $ 82.51 million came from frozen fish, mainly white fish.

Industry insiders said the export continued growth because of higher production of fresh water shrimp than the sea fish. The price gap between these two varieties is around five dollars per pound which contributed significantly in increasing the total earning, they pointed out.

“On the other hand, the recent currency devaluation in the country also helped increase the total earning,” said Kazi Shahnewaz, president of Bangladesh Frozen Food Exporters Association-BFFEA. He told the Independent that the recession hit the export but it was not felt because of high production of fresh water shrimp.

Amin Ullah, senior-vice president of BFFEA and managing director of ARK Sea Food Ltd, echoed the similar voice saying “Recession in Europe and America did not hit the frozen food export from Bangladesh very hard. Whatever effect we received, we overcame through higher production of freshwater shrimp and opening new markets.”

He, however, said that the recession fallout was felt in the beginning when the export had slowed down. Some processing plants also had to stock up products due to recession.

He said Russia has become a new destination for frozen food export, which helped overcome the Euro zone recession fallout. Now, around 7-8 per cent frozen foods are exported to Russia Federation, he told the Independent on Thursday.

He hopes that the export to Russia would go up gradually in future. Industry insiders said the over all export from the country would increase this year than previous fiscal but the export target might not be achieved.

Shahnewaz had earlier said that the recession in the US and Europe would hit the frozen food export hard because consumers reduce buying of this luxury item due to budget cut in their day-to-day life.

Frozen foods, the second largest export earner after knitwear and garments, had fetched $625.04 million in FY 2010-11. The government hopes the earning from this sector would be around 726.48 million at the end of this fiscal 2011-12).

The sector people say there are over 100 fish processing plants in the country. More than 80 percent of the frozen foods, mainly shrimps, go to Europe and America. The rest amount is marketed in the East Asian countries, especially Japan.

http://theindependentbd.com/business/finance/96427-frozen-food-exports-keep-growing.html

British-Bangladeshi

February 23rd, 2012, 09:26 PM

Dhaka School of Economics starts journey

The Dhaka School of Economics, specialized institution in economics, started its journey on Wednesday.

Education Minister Nurul Islam Nahid inaugurated the post- graduate diploma program of the institution Wednesday evening.

Under this program, students will get nine-month course in economics.

Meanwhile, 17 students have admitted themselves under this course.

The institution got recognition as affiliated institution of Dhaka University December last.

One and half years' masters course will begin in Environment Economics this year.

The education minister hoped that the newly established institution will create many renowned economists in the days to come.

With Governing Council, Dhaka School of Economics Chairman and Rector Dr Qazi Kholiquzzaman Ahmad in the chair, the inaugural function was addressed by member of the governing council and former chief justice Tafazzal Islam, Bangladesh Bank former governor Dr Mohammad Farasuddin, Professor Abul Barakat, Dr Toufique Ahmed Chowdhury, Dr Saidur Rahman Laskar, and Dr Narayan Chandra Nath.

http://www.businessnews-bd.com/index.php?option=com_content&view=article&id=5578:dhaka-school-of-economics-starts-journey&catid=1:latest-news

British-Bangladeshi

February 24th, 2012, 08:10 PM

Int'l trade fair in Ctg underway

The 20th Chittagong International Trade Fair (CITF) began yesterday with an aim to promote local products in the global market.

Commerce Minister GM Quader inaugurated the month-long event organised by Chittagong Chamber of Commerce and Industry (CCCI) at Polo Ground in the port city.

India is participating for the first time in the fair and Thailand is the partner country of the fair.

“The national economy is running in the right way. The business community need not worry since the government is very conscious about the economy,” said the commerce minister in his speech.

Quader said the government reached its export target of $23 billion in last fiscal year and it would do it this year as well.

He said of the $26 billion target this year, $14 billion has already been reached.

AK Azad, president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the fair would help local entrepreneurs evaluate the quality of their products.

The fair has 10 premier gold pavilions, four mini-mega pavilions, eight premier pavilions, 16 standards pavilions, 80 mega booths, 97 premier mega booths, 10 premier gold booths, 38 premier booths, 14 standard booths, three restaurants, 38 pavilions and 239 stalls, said Nurun Newaz Selim, CCCI vice president and chairman of the fair committee.

MA Latif, Awami League lawmaker, Murshed Murad Ibrahim, president of CCCI, Mahbubul Alam, CCCI senior vice president, Jasim Uddin, FBCCI senior vice president and Amir Humayun Mahmud Chowdhury, former CCCI president also spoke at the inaugural ceremony.

The fair will remain open every day from 10:00am to 10:00pm, said organisers.

The other countries participating in the fair are China, USA, Pakistan, Iran and Japan.

http://www.thedailystar.net/newDesign/news-details.php?nid=223810

CarltonHill

February 26th, 2012, 06:59 AM

What was the gdp growth of Bangladesh last year?

King Nothing

February 26th, 2012, 08:32 AM

^^Last fiscal year was I think 6.5%

British-Bangladeshi

February 27th, 2012, 07:20 PM

Walton enters Indian territory

A young Guwahati couple with their kid, choosing a Walton brand motorcycle at the 19th International Guwahati Trade Fair in Assam, India recently.

Walton, a leading brand of electronics and electrical products from the house of R B Group, has received export orders worth of 100 million US Dollar in the recently concluded 19th edition of the International Guwahati Trade Fair in the Indian state capital of Assam.

A total of 40 companies from Bangladesh participated in the fair introduced by the Industries and Trade Fair Association of Assam (ITFAA).
Walton Plaza in the Bangladesh pavilion became the centerpoint of the fair with TV, refrigerator and motorcycles.

The 14-day fair at Maniran Dewan Trade Centre showcased exquisite handicraft, jute and indigenous products from Bangladesh, Thailand, Egypt, Afghanistan, UAE, Ghana, Kenya, Nepal, Sri Lanka and Pakistan.

Lokman Hossain Akash, senior assistant director and head of international marketing, Walton said that 25 different business groups have shown their interest for Walton products and the company has received the export orders from these companies. Initially the company will export products worth Tk 1200 crore. Besides businessmen from Kolkata also showed their interest for Walton products, Akash said.

The fair has created a huge opportunity for Walton to export its products in Assam, Tripura, Pashchimbanga, Meghalay, Manipur, Arunachal and Sikkim, Akash said.

He said traders from India are getting more interested in Walton products for its world standard quality and design.

Young people of India are particularly becoming interested in Walton brand motorcycles for their design and performance.

A business house from Kolkata has already asked our permission and support to set up a huge showroom for this indigenous Bangladeshi brand in Kolkata, Akash informed the News Today.

Uday Hakim, senior deputy director and head of creative and publication, Walton said export of the company has doubled in the last one year. The company is currently exporting its products in 11 countries in different parts of the world. The company will increase its export destination number to 25 at the end of the year, Uday Hakim said. “Our brand Walton is becoming a global sensation in time with its quality production of TV, refrigerator and motorcycles,” a proud Uday Hakim said with a clear sign of satisfaction and joy for the success.

http://www.newstoday.com.bd/index.php?option=details&news_id=54544&date=2012-02-26

British-Bangladeshi

February 28th, 2012, 06:09 PM

B’desh could be middle-income country in 10-20 yrs

US Ambassador Dan Mozena has said Bangladesh has a bright future and it could be a middle-income country within a decade or two.

‘’This Golden Bangladesh won’t just happen…people will make it happen … people like you who care about your country will make it happen,’’ he said on Tuesday.

Mozena made the remarks at the inauguration of the Volunteers for Bangladesh, Rajshahi District Committee and Certificate Distribution Ceremony in Rajshahi.

The US envoy said volunteers in America play a critical role in developing their nation and improving the quality of life for people. Last year alone, 60 million Americans volunteered in their communities.

Mozena said in Bangladesh, too, there is a strong spirit of volunteerism of giving back to people and the community. ‘’This spirit, especially among youth, explains how I know that the future of Bangladesh is bright,’’ he added.

He said the youth of today become the business owners, teachers, farmers, shopkeepers, fishermen, journalists, politicians, government officials, doctors, bankers and lawyers of tomorrow.

He expressed happiness that the US government in partnership with the JAAGO Foundation helps foster this spirit of volunteerism.

Korvi Rakshand, Founder and President of JAAGO Foundation, Shoumik Chowdhury Turjjo, President of Volunteer for Bangladesh, Rajshahi and Mayeen Chowdhury, K.B. Group were present at the function held at Rajshahi Chamber of Commerce and Industry.

News Source:
UNB

British-Bangladeshi

February 29th, 2012, 03:33 PM

Despite global downtrend, country achieved the expected growth

Minister Sheikh Hasina on Wednesday said the country has been able to maintain the desired economic growth despite deepening global financial worries.

“Despite the global economic downtrend, the country has achieved the expected economic growth due to various pragmatic steps taken by our government,“ she told the newly elected office bearers of Officers Club.

The office bearers, led by its ex-officio Chairman and Cabinet Secretary Muhammad Musharraf Hossain Bhuiyan and General Secretary Abu Alam Mohammad Shahid Khan, met the Prime Minister at her office.

Hasina said the government is moving ahead foiling all the conspiracies against the country by vested quarters. “Our path towards progress is not smooth, it’s rather bumpy,” the PM said.

She directed the government officials to work with utmost honesty, sincerity and devotion from their respective positions for quick implementation of various development programmes of her government.

The premier said every government takes various development programmes in line with its election manifesto and the role of government officials is very important in implementing those.

“Ahead of elections, we (political parties) declare our election manifestos and after assuming office, we try hard to implement those through various development progarmmes. You (officials) are the main arm to implement those programmes effectively,” she said.

Hasina mentioned that the present government like its previous term has ensured working environment for the government officials for attaining the desired development of the country. “Our aim is just to develop the country for the betterment of people.”

Press Secretary to the Prime Minister Abul Kalam Azad briefed reporters after the meeting.

He said Sheikh Hasina told the officials that the country could not attain the desired development in the last 40 years as the political party that had led the war of independence was out of power for a long time.

She also said the country could not reach its expected position due to frequent disruption of democratic process. “Most of the time either military rulers or military-backed governments ruled the country,” she said adding that without democracy development is impossible.

About women empowerment, Hasina mentioned that the government has recruited a good number of female officials to various top positions and claimed that the process of promoting women officers began during her previous tenure.

Among others, PMO secretary Molla Waheeduzzaman was present.

News Source:
UNB

Suncity

March 2nd, 2012, 12:48 AM

Bangla bid to join Asian big league

http://www.telegraphindia.com/1120302/jsp/business/story_15202643.jsp

It’s 8am in fog-encased Dhaka — Asia’s latest boomtown — and a traffic snarl has built up from the centre of the city to a sprawling downtown conference hall named Bangabondhu International Conference Centre.

It’s Bangladesh’s coming out party. Even as India’s economy has slowed, Bangladesh, whose economy expanded to $100 billion this year, has decided to reach out to global investors by hosting American marketing guru Philip Kotler’s World Marketing Summit. The event promises to bring global marketers and managers to discuss ways of solving socio-economic problems and to connect with the country’s new crop of businessmen.

Bangladesh Prime Minister Sheikh Hasina believes the conference will “help us project the strengths and capabilities of Bangladesh, the dynamism of the private sector… and the strong points of our economy and polity”.

Kotler hopes the conference will promote his marketing theory that aims to create a corporate culture of “ecologically and socially responsible citizens”.

Bangladesh is emerging as the new Asian economic tiger. The country is part of 11 developing countries listed by Goldman Sachs for having the best potential to emulate the success stories scripted by BRICS nations. The country’s unemployment is at a low of 5 per cent and the per capita income is over $700, though there are concerns over double-digit inflation and a fledgling stock market. “If we can act… many of our challenges will be easy to address,” Hasina said.

Garment exports in Bangladesh have boomed despite a slowdown in major markets, boosting total exports to $24 billion. Software exports, a new business, grew 30 per cent to $100 million last year.

“We have young talented software professionals who can spur Bangladesh to be a competitor in the global hi-tech world,” said Taslima Miji, CEO of Tech Mania.

Asian Tigers Capital Partners, a fund management firm, says in a report that Bangladesh has turned into a highly attractive investment destination with a young demography of 150 million people, low capital costs, a high level of specific skill development, large reserves of gas and coal and a strategic location.

Altamash Kabir, whose family runs several tea gardens, a newspaper and a consultancy and engineering firm, says, “Bangladeshi business houses are open to tie-ups with Indian and other foreign partners in all fields. We have skill and labour cost strengths in the garment sector which have brought large numbers of Indian firms here… but those skills and costs could be used to set up joint venture light engineering firms whose market could not only be Bangladesh but also India.”

The Bangladesh government wants to attract investments from India, East Asia and the West to expand its garment business, build a base for light engineering and develop infrastructure. The country wants to boost investment to 30 per cent of gross domestic product from 24 per cent now, and has set up a $700-million fund to build roads, ports and other infrastructure.

mirzazeehan

March 2nd, 2012, 02:00 AM

^^
Thanks for sharing this buddy...almost brought tears to my eyes:cheers:

British-Bangladeshi

March 5th, 2012, 04:32 PM

Bangladeshi machine runs Indian industry in NE region

Engineering equipment exports from Bangladesh saw a three-fold growth during July-January period of the current fiscal, against the same period of the previous one, official figures show. According to Export Promotion Bureau (EPB), the country fetched $ 41.25 million during July-January period of current fiscal against the earning of $ 13 million in the same period of the previous fiscal year, posting a growth of 217.31 per cent. The earning also surpassed the strategic target by 179.47 per cent set by the Export Promotion Bureau and the commerce ministry. The official target was set at $14.76 million for the period.

In the previous 2010-11 fiscal, the sector had fetched $ 26.07 million by exporting engineering equipment to various countries in the world. Industry insiders said the engineering equipment export sector is very nascent. Items, such as spare parts and some small machines had been exported since 2005-06. The items are exported mainly to seven North East states of India, known as seven sisters, and, some African countries, like Sierra Leon.

The export items also include spare parts for pharmaceutical industries, jute and textile machines, brick and stone crusher machines and flour mills. President of Bangladesh Engineering Shilpa Malik Samity, Abdur Razzaq, said the amounts of engineering equipment exported by the local manufacturers are not very significant. “The biggest amount,” said, he, “Is exported by some large manufacturing units located inside different Export Processing Zones (EPZs) of the country.”

He said, out of 5,000 small and medium enterprises producing engineering equipment in the country, only 20-30 are engaged in shipping those abroad. Razzaq pointed out that the export of engineering products had boosted in the year of 2008-09, but it started declining in the following years due to economic meltdown throughout the world.

“Rise in demand and low cost of our goods might be the main reasons behind such a high export growth,” Razzaq said.

According to sources, a Jeshore based factory Soney Engineering recently exported some machinery of flour mills to Australia. The company also exported agricultural equipment and ‘leth’ machines to African country, Sierra Leon.

“Some people visit our factory and give sample and then place orders for certain amount of products.

We do not know what they do with those! We have heard that many of them are engaged in exporting those items to foreign countries,” said an owner of an engineering manufacturing unit.

Engineering equipment is manufactured in the country using mainly scraps of old ships. The ship breaking units in Chittagong are the main suppliers of raw materials for the local engineering factories. As a result, the costs of goods produced by the Bangladeshi factories are much lower than that of other countries.

“This is the main reason of high volume of exports from Bangladesh to neighborung Indian seven sisters,” said a leader of Shilpa Malik Samity. He said the importers of seven sister states feel comfort to collect those items from Bangladesh instead of bringing those from other Indian states, like, Gujarat and Punjab.

The transportation cost and delivery time is also much longer when North Indian companies sell those products, he pointed out.

http://www.theindependentbd.com/business/finance/98183-bangladeshi-machine-runs-indian-industry-in-ne-region.html

British-Bangladeshi

March 5th, 2012, 07:08 PM

Bangladesh on right track to fight corruption: British HC

British High Commissioner Robert Winnington Gibson today said Bangladesh is on the right track to fight against corruption and ensure financial transparency.

"Ten years ago, Bangladesh was at the bottom in Transparency International. But, it moves enough and improving.. which is good. We will see further progress in future," he said.

The high commissioner made this remark at a certificate awarding ceremony at his residence here.

Gibson said the United Kingdom (UK) had doubled the development fund for Bangladesh for the next four years to support some major programmes in the health, education, governance, nutrition and sanitation sectors.
"So, it is not true Bangladesh is getting less aid."

About Bangladesh economic management, the high commissioner said they offers Bangladesh training programme in financial governance besides supporting training in civil services.

"We can help the Bangladesh in lot of areas to manage the economy in efficient ways to prop up development of the country," said Gibson.
Referring to the recent visit of the independent aid watchdog of UK, also a parliamentary committee, he said the watchdog recognized that the mechanism of British development fund increased when transparency in spending was good.

"We want to ensure every British taxpayer's money is being utilized properly and transparently," Gibson said. The UK government through its Department for International Development (DFID), together with others development partners is supporting Bangladesh to strengthen public financial management (PFM) through the "Strengthening Public Expenditure Management Programme (SPEMP)".

The 30 million pound project over five years (2009-2014) aims to establish a more efficient Public Expenditure Management system with increased transparency and accountability.

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

British-Bangladeshi

March 7th, 2012, 09:34 PM

Bangladeshis ship 54m Kg of tea, evaporate exports

Foreign currency earning from exporting tea---a major farm product of Bangladesh---showed an upward trend recently, though it had been dwindling during the last decade. Home consumption of tea shot up in the recent years with more than 54 million kilograms of tea consumed in the year of 2010.

The Export Promotion Bureau (EPB) figures show that the country fetched $ 2.28 million in the first seven months of the current 2011-12 fiscal, posting a 49.02 per cent growth as against last year’s earning of $1.53 million. The earning is also 25.97 per cent higher than the strategic target of $ 1.81 million set by the government for the period.

Although the number of tea gardens and total production increased over the years, the export went down heavily because of ever increasing local consumption. The industry insiders say with the gradual increase of internal consumption, the export, both in volume and in value, started going down.

“As I see the rising trend in local consumption, Bangladesh may soon disappear from the list of tea exporting countries as there would hardly be any tea available for trade,” said an exporter.

In the year 2000, the country had fetched $ 20.79 million by shipping a total of 18.10 million kilogram of raw and packet tea to different countries in the world. The earning from the same item came down to only $ 6.34 million during the year 2009. The export volume also declined to only 3.15 million kilogram.

The domestic consumption went up to 53.74 million kilogram in the year 2009, from 38.79 million kilogram in the year of 2000.

In the year 2010-11, the export figure went down further to $ 3.20 million only. The government has set the target of $ 3.29 million from tea exports for the current 2011-12 fiscal, EPB said. The tea board sources said the government has projected some 60.5 million kilogram of tea output in the country during the current 2011-12 fiscal.

According to sources tea has been one of the major exportable items of Bangladesh since 1971. It had a captive export market in some countries to export tea. The scenario has been changed in recent years because of open market economy, emergence of new exporters with low priced tea and rapid increase in home demand. Export of Bangladesh tea in the year 2005 was 9.09 million kilogrammes which was 30.66 per cent less than the previous year export of 13.11 million kilogrammes. Export earning was $11.26 million against $ 15.64 million in the previous year.

Of the exported quantity, 6.57 million kilogrammes was sold to Pakistan alone. The government of Pakistan allowed duty free entry of 10 million kilogramme of tea per year from Bangladesh since October 2002 and offered to increase the quota up to 15.00 million kilogrammes.

But Bangladesh could not utilise that quota fully as home demand pushed the prices up in the local auctions. Other tea producing countries such as, India, Sri Lanka, Indonesia, Vietnam, Kenya and some other African countries enjoy price advantages while supplying better quality tea. It has made export market extremely competitive for Bangladesh.

According to sources, Bangladeshi tea gardens suffered colossal damages during the liberation war of 1971 which resulted in poor management, high vacancies, insufficient inputs, dilapidated factory machinery, inadequate maintenance etc. leading to lower yield and poor quality of tea.

But the industry soon got a big push on behalf of the government through a massive development program in 1980-92 with the financial and technical assistance from the British government. Tea output increased to 60.14 million kilogram and per hectare yield stood at 1150 kilogram in 2005.

There are a total of 163 tea estates in the country, stretching over an area of 115,820.33 hectares. Bangladesh recently started producing organic tea in Panchagarh district by a company named Kazi and Kazi. The production of organic tea without using chemical fertilizer has gained popularity among the buyers.

Japanese buyers have also shown interest in buying organic tea from Bangladesh.

News Source:
The Independent

British-Bangladeshi

March 10th, 2012, 03:51 AM

Bangladesh’s exports grow by 13% in eight months

The country’s overall export grew by 13.03 per cent to $ 15.90 billion in the first eight months of the current fiscal year (FY) 2011-2012 over that of the corresponding period of the previous fiscal year.

Slow growth rate in the country's merchandise exports continued during the July-February period of the FY’12 compared with that of the same period of FY’11 due mainly to the Eurozone crisis.

"Export growth slowed down, mainly because of the recession in the European Union (EU) countries,” a leading exporter said while explaining the latest overall situation.

"To tackle the setback following the EU recession, we need to reduce the cost of production. But our cost of production is increasing due to power crisis and high bank interest rate,” he noted.

Bangladesh’s export earnings during the first eight months of FY’11 recorded a 40.28 per cent growth over that of the previous fiscal year, the state-run Export Promotion Bureau (EPB) data showed.

Earnings from knitwear products in the period under review stood at $ 6.29 billion, marking a growth of 8.73 percent, which was 43.93 per cent during the corresponding period of the previous fiscal.

Shipment from woven garments stood at $ 6.26 billion during the same period of the current fiscal, marking a growth of 22.20 percent, while the growth was about 37.95 per cent in July-February of FY’11.

Earning from frozen fish sector during the period stood at $ 444.95 million, marking a growth of 3.17 percent but fell short of target by 2.90 per cent.

Other major foreign currency earning products, especially jute and jute-made products, rubber and specialized textiles fell short of their respective targets of this fiscal and growth rates of the previous fiscal.

Leather and leather products export grew by 17.27 percent and 36.57 percent and earnings stood at $ 206.94 million and $ 49.71million respectively during the period.

However, exports in February 2012 increased by 4.95 percent to $ 1.97 billion, over the earnings of $ 1.88 billion in February 2011.

Exports earning in February, however, fell short of target by 7.79 percent.

http://www.businessnews-bd.com/index.php?option=com_content&view=article&id=5726:bangladeshs-exports-grow-by-13-in-eight-months-&catid=1:latest-news

British-Bangladeshi

March 10th, 2012, 03:57 AM

Initiative should be taken to stop import of electronics products
FBCCI president visit Walton factory

A high powered delegation of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) led by its President AK Azad visited the electronics and automobile factory of Walton Hi-Tech Industries Ltd at Chandra of Kaliakoir in Gazipur on Friday and expressed satisfaction over the world standard manufacturing facility of the plant, says a press release.

During expression of views with the journalists after the visit, AK Azad urged the importers to reduce import gradually as world standard high quality electronics and automobile products are being manufactured in the country.

Seeing the state-of-art-technology of the factory he said "It is a matter of proud for Bangladesh that such kind of heavy factory has been established in the country that is manufacturing world standard products".

Every year the country is to spend huge amount of foreign currency to import different kind of electronics and automobile products. But, the initiative of Walton not only will help save foreign currency but also can earn huge amount of foreign currency thought exporting the products, he opined.

The FBCCI president went round different units of the factory which is set up on 20 acres of land at Chandra in Gazipur.

Vice-president of FBCCI Mostafa Azad Chowdhury Babu, Yasen Group Chairman Mizanur Rahman, Managing Director of Electro International Sanaullah Shahid, Chairman of R.B. Group SM Nurul Alam Rezvi, Managing Director SM Shamsul Alam, Managing Director of Walton Hi-tech Industries Limited Ashraful Alam, Brand Ambassador Ilias Kanchon and FBCCI Deputy Secretary SM Mijanur Rahman accompanied the FBCCI president during his visit to the factory.

Managing Director of Walton Hi-tech Industries Limited SM Ashraful Alam said: "A new fridge factory of the company is going to launch production soon and another factory that is under construction will manufacture 50,000 mobile sets annually".

He also said "We are working for a dream project under which customers will get car within two or three years". :cheers:

Senior Deputy Director of Walton Uday Hakim hoped that after the visit of FBCCI president the government would take a positive initiative in the up-coming budget to flourish local industries. Gradually, Walton is emerging as giant in the world market and very soon Wanton enters markets of America, European and Australia, he claimed. Chief of Walton International Marketing Lokman Hossain Akash informed that Walton is moving with a plan to export products to about 100 countries of the world within 2015 and if it is possible to implement the plan Bangladesh will occupy the international market as per plan.

The hi-tech factory is annually manufacturing about 14 lakh fridges, three lakh motorcycles, three lakh air-conditioners and 10 lakh televisions. About 12,000 people are working restlessly in the factory to manufacture world standard products. The company is also marketing Walton brand products through 5,000 outlets across Bangladesh, he mentioned.

The products have already been able to win the heart of countrymen and Walton brand products are being exported to 11 countries of the world, he claimed.

Walton Media Adviser Enayet Ferdous said "Walton is working with the slogan 'My Country, My Products' to reach the products to the door steps of common people around the world at competitive price. We feel proud that Walton brand products are spreading around the world", he said.

http://www.thebangladeshtoday.com/economy.htm

British-Bangladeshi

March 10th, 2012, 04:19 AM

BD to join Asian Business Forum in Morocco

A high-powered Bangladeshi delegation will leave for Morocco to join the first-ever Asian Business Forum and Expo there on March 15-16 to increase export growth and boost up trade and investment between the two countries.

"A Bangladeshi delegation, headed by an additional secretary, will join the forum in Rabat. The team will find out ways to increase export to Morocco, and enhance bilateral trade and investment between the countries," a high official of the Ministry of Commerce told the FE.

He said the conference would focus on boosting trade and investment between Asia and Africa, since the two continents have immense potentials to be explored.

During the forum, members of the Bangladesh delegation would address the conference on selected topics. Besides, business and official meetings between Bangladesh and Morocco would also be held.

The forum will be jointly organised by the Diplomatic Foundation and the Ministry of the Foreign Affairs and Cooperation of Morocco.

The forum will have two events - a conference and an exhibition. The organising committee, during the forum, will suggest discussions on various selective areas, like heavy industries, energy and renewable energy, services, construction and transport.

Four sessions will take place in the conference to find out ways to address a variety of issues for public and private operators regarding scopes of economic and social development between Morocco and Asia.

The first session will discuss about the future cooperation between Asia and Africa. The second session will focus on opportunities of business between Asia and Africa, whereas the third session will be on economic incentives. The last one will highlight on strategic alliances and sharing of experiences.

The programme will also try to identify some recommendations to initiate a new kind of south-south partnership with Asia within the financial and social perspectives of Africa.

There will be a roundtable, in which participating countries would identify ways to ensure a harmonious development of Morocco in its interaction with the Asian countries.

The export from Bangladesh to Morocco recorded 41 per cent growth in the 2010-11 fiscal year. Bangladesh exported goods worth US$22.928 billion to Morocco and imported goods to the tune of $31.952 billion during the period.

http://www.thefinancialexpress-bd.com/more.php?news_id=122929&date=2012-03-10

British-Bangladeshi

March 10th, 2012, 04:21 AM

Exports to India to cross $1.0b mark in FY '12

For the first time in history, Bangladesh's exports to India will cross the $1 billion mark in a 12-month period next July, a top Indian official has said.

India's National Security Advisor Shivshankar Menon said Friday India last year trimmed its sensitive list under the South Asia Free Trade Agreement in a dramatic move benefiting Least Developed Countries in its neighbourhood.

"As a result, I am told that Bangladesh's exports to India will cross the $ 1 billion mark in a twelve-month period in July for the first time in history," he said, delivering the keynote address in the inaugural session of the Asian Relations Conference in New Delhi.

Indian Council of World Affairs and Association of Asia Scholars are jointly holding the conference.

Menon said that South Asia had emerged as one of the fastest growing sub-regions in the world with an average rate of growth of eight per cent sustained over the past five years.

"Intra-regional trade within South Asia has begun to grow and has doubled over the past five years. We are therefore at a point where it is increasingly evident to all the countries in South Asia that there are substantial costs to not moving forward by lowering tariffs, minimising sensitive lists, and tackling non-tariff barriers. Each government has taken significant actions in the recent past," he added.

Menon, who earlier served as foreign secretary of India, said the perception of South Asia as the least integrated region in terms of trade ignored the wide variation in the experiences of the member states.

"The fact is that intra-regional trade as a proportion of total trade varies widely for the countries in South Asia. For Nepal it is as high as 60.5 per cent, for Sri Lanka 18.9 per cent, for Pakistan 6.6 per cent and for India only 2.7 per cent. But this variation also tells us how great the potential is, and why intra-regional trade is growing faster than South Asia's trade with the rest of the world," he said.

He also pointed out that the official figures certainly underestimated the real magnitude of trade taking place between S Asian countries, whether clandestinely or through third countries.

Anecdotal evidence suggests that the real figure for India-Pakistan trade could be almost three times greater than the official figures of almost $ 3 billion. It is an open secret that most India-Bangladesh trade is not reflected in the official figures, he observed.

The national security advisor has the dubious distinction of a relatively high level of informal trade flows unrecorded and un-reflected in official trade statistics. "This suggests that natural complementarities do exist between South Asian economies and have already been identified and acted upon," he added.

He also noted "improvement in the security situation in important parts of South Asia".

The elimination of the LTTE's armed forces in Sri Lanka, Bangladesh's successful actions against terrorists and extremist elements in the last three years, and Nepal's steady progress in its double transition to multi-party democracy and mainstreaming the Maoists are some practical examples, he added.

http://www.thefinancialexpress-bd.com/more.php?news_id=122927&date=2012-03-10

British-Bangladeshi

March 10th, 2012, 04:27 AM

FBCCI for budgetary support to high-tech product makers

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will recommend offering more facilities to high-tech product makers in the next budget to boost export, the head of the apex trade body said.

FBCCI president AK Azad said: " We will recommend providing adequate budgetary support to high-tech products. I think Walton has created a revolutionary change in the country with its high-tech products.”

He said government support will help flourish the high-tech industry as well as earning more foreign currency by exporting goods.

He said this while visiting Walton factory at Chandra under Gazipur district on Friday, said a press release.

The FBCCI delegation visited Walton units of manufacturing refrigerator, motorcycle and air-conditioner.

FBCCI president said the quality of Walton products is international level. Walton is using ultramodern machineries and has got ISO 9001 and 14000 for its quality.

He urged the importers to reduce import of these types of high- tech products gradually.

He also said Walton exports its products after meeting the domestic demand. It is reducing the local import cost, creating employment and earning foreign currency.

"Besides, we have a plan to set up LCM and car making factories," he said. :cheers:

Walton senior deputy director Udoy Hakim expressed the hope that the government will take positive steps in the next budget for the local industry.

He also said Walton will enter the market of America, European Union and Australia soon.

http://www.thefinancialexpress-bd.com/more.php?news_id=122868&date=2012-03-10

British-Bangladeshi

March 12th, 2012, 10:26 PM

Panasonic strengthens foothold in Bangladesh

Japanese electronics giant Panasonic is all set to expand its operations in Bangladesh as it sees the country as one of the next emerging nations.

The electronics giant will enhance its presence by selling Panasonic products and system solutions through local distributors.

“We see Bangladesh as one of the next emerging countries as its economy is growing,” said Koji Yamada, director of Panasonic Systems Asia Pacific, at an interview in Dhaka recently.

“Despite the economic downturn, the country has witnessed over 6 percent GDP growth in the last couple of years,” he added.

Terming Bangladesh as an attractive market, Yamada said it has a huge customer base as it is a country of around 160 million people.

Besides, the information and communication technology (ICT) market will grow significantly in the country as the government encourages use of ICT products in both public and private sectors, he added.

Since the government has a vision to build a 'Digital Bangladesh' by 2021, it will undertake massive digitising activities, creating huge market opportunity in this segment, said Yamada.

“A Digital Bangladesh does not only mean the broad use of computers; perhaps it means the modern philosophy of effective and useful use of technology.”

“With this, Panasonic would like to ride along on this vision and pursue its philosophy with the ultimate goal of improving the lifestyles of the general people,” said Yamada.

Targeting this untapped market, Panasonic launched its latest IP-PBX telephone and high definition video conference systems at a hotel in Dhaka on Saturday. These systems will help improve productivity in business organisations in the country, said Yamada.

The IP-PBX system is cost-effective as it will save long distance call charges with advanced tools, such as unified messaging and internet protocol (IP) conference calling, he added.

The system offers wireless mobility and advanced call centre functions as it has IP network to establish communications between multiple locations, added the Panasonic official.

Wireless mobility enables employees to respond to important calls while away from their desk. Advanced call centre functions help to distribute and handle calls, manage agents, and control internal use of the phone system.

Easy installation, port expandability, caller identification option and a message waiting lamp are the key features of the product.

About the video conference system, Yamada said it will allow companies save money by reducing travel needs and improving productivity.

It has full HD (high definition) 1080i video and 360° audio delivered over a standard broadband connection that makes it possible to instantaneously communicate and collaborate with colleagues and industry experts, wherever they happen to be.

Panasonic also introduced electronic whiteboards and all-in-one multifunction printers, interactive panaboard (a multi-touch interactive whiteboard with a durable surface), surveillance monitoring and broadcast cameras for television stations.

The electronics giant has targeted a number of organisations such as government offices, banks and financial companies, educational institutions and IT companies to sell its products and solutions.

“We have targeted these sectors as they need high quality products and solutions to run operations smoothly,” said Yamada.

Panasonic selected EMEM Systems Ltd, a joint venture of MM Ispahani Group and Trade Services International, for marketing its products in the country.

“The total cost of an IP-PBX system with 70 single line telephones in Bangladesh is nearly Tk 4 lakh,” said Md Abdul Mutaleb, chief executive officer of EMEM Systems Ltd.

He said the total price of a single HD video conference system will be around Tk 5.9 lakh.

“The current market size for the business communications system such as IP-PBX, video conference systems can be estimated to figure around Tk 100 crore,” said Mutaleb.

http://www.thedailystar.net/newDesign/news-details.php?nid=226010

British-Bangladeshi

March 12th, 2012, 10:37 PM

Middleclass fuels growth in ATM card use

The use of electronic plastic cards, known as ATMs, is on the rise, driven by demand from Bangladesh's booming middleclass that makes up one-fifth of the population, bankers say.

As customers prefer smooth and hassle-free banking transactions, they have said banks are trying to net customers by cutting back charges.

"Our 30 million-plus middle class is the key driver of growth of ATMs," Monindra Kumar Nath, Deputy Managing Director of Mercantile Bank Ltd, said.

"Even a few years ago, they (middleclass) were scared to use this due to higher charges. Now the bulk of the demand for such cards is coming from them only for lowering fees," he added.

He said that annually, card holders of the bank are increasing at a rate of more than five per cent.

In 2009, customers of his bank took 10,400 debit cards and withdrew cash worth more than Tk 800 million from automated teller machines (ATMs) while in 2010 customers holding debit-card were 16,300 in number and withdrew cash worth more than Tk 2.07 billion, Mr Nath said.

Last year, the number of debit-card holders increased by five per cent. The customers took 25,500 debit cards and they withdrew more than Tk 2.6 billion by using these cards, he said.

Moreover, 4,500 customers were provided with credit card in 2010 and they transacted nearly Tk 0.19 billion and in 2011 the bank provided 5,400 credit cards through which the customers made transactions worth more than Tk 0.24 billion, Mr Nath said.

In just two months to February this year, the number of ATM booths reached 56, compared with 31 in 2010, he added.

"As the customers now prefer branchless transaction using electronic cards, the management has decided to install ATMs on all branch premises and in important places across the country to meet the demand," Mr Nath added.

Chief of Communication of Mutual Trust Bank Ltd Mohammed Sami-Al Hafiz told the FE the electronic card-bearing customers of the bank are increasing significantly as they do not want to waste time by waiting in queues for long.

Every month the number of users is rising by more than 13 per cent as the customers are getting cash from any place at any time, Mr Hafiz said.

Deputy Managing Director of Islami Bank Bangladesh Ltd (IBBL) Abul Bashar told the FE: As the bank grabbed a majority portion of customers among private banks, the management has planned to provide branchless money-withdrawing services.

"Now we have introduced only debit card and credit card for customers and as soon as possible many kinds of electronic cards with different names would be launched," Mr Bashar said.

In every month 20,000-25,000 customers are taking electronic cards and this number is increasing day by day, Mr Bashar added.

Now more than 0.2 million customers are using the card and by the end of this year the ATM card holders would be estimated at 0.5 million, he said further.

Head of IT Division of Prime Bank Ltd Iqbal Hossain told the FE: More than 10,000 customers are now taking ATM cards monthly but a year ago only 2,000 to 3,000 customers were taking this card in a month.

At present more than 0.2 million customers of the bank are using electronic cards and by the end of this year the number will surpass 0.3 million, Mr Hossain said.

Head of IT Division of Trust Bank Ltd S M Akram Sayeed told the FE: The bank has only debit card and the demand for cards is skyrocketing.

The number of card-holders of the bank in 2010 was calculated at 18,906 while in 2011 the number was 111,157 and by the end of this year the number would exceed 0.2 million as thousands of people are applying for debit cards, Mr Sayeed said.

Misum Maleha Munni, a customer who was waiting for withdrawing cash on the premises of an ATM booth of Dutch-Bangla Bank Ltd (DBBL) at city's Elephant Road, told the FE: There is no need to expand branches but ATM booths should be increased across the country because we are getting necessary cash and information using electronic cards.

"I never thought of getting such kind of time-saving transaction facilities using the plastic cards in a developing country like ours, which made our life easier and smooth," the customer added.

http://www.thefinancialexpress-bd.com/more.php?news_id=123229&date=2012-03-13

British-Bangladeshi

March 13th, 2012, 09:47 PM

Export to US sees 0.22 pc growth in July-Dec

Export earnings from the USA, the largest export destination for Bangladesh goods, witnessed a 0.22 percent growth during the July-December period of the current fiscal mostly because of the good performance of RMG and frozen shrimps.

It totalled $ 2431.68 million in this first six months (July-December) compared to $ 2426.38 million during the corresponding period of the previous year. The amount represents 20.65 percent of the country’s total export earning during the six-month period.

According to recent statistics compiled by the Export Promotion Bureau (EPB), RMG export to the US, including knitwear, amounted to US$ 2211.73 million during the July-December compared to US$ 2210.21 million during the corresponding period of the last fiscal. The RMG items, including knitwear, witnessed a 0.07 percent growth in the US market.

The major exports to the US market during the period were woven garment ($ 1695.59 million), knitwear ($ 516.14 million), frozen shrimp ($ 33.68 million), cap ($ 14.72 million) and home textiles ($ 97.50 million).

During the period, around 38.04 percent of the country’s total woven garment exports entered the US market, followed by knitwear 10.77 percent and frozen shrimp 11.90 percent.

Bangladesh’s export earnings from the US in fiscal 2010-11 were impressive as it totalled $ 5107.52 million representing a 29.29 percent gain from the figure of fiscal 2009-10.

The export earnings in fiscal 2009-10, however, totalled US$ 3.14 billion, a 7.74 percent fall over US$ 3.4 billion in 2008-09, mostly because of the global economic recession.

The RMG export, including knitwear, witnessed a sharp fall of over 6 percent in fiscal 2009-10, fetching US$ 2.9 billion as against US$ 3.1 billion in 2008-09.

The 2009-10 fiscal marked the end of an ups-and-down decade for Bangladesh exports to the US. From the robust US $2.5 billion during the 2000-01 fiscal, exports had fallen below US$ 2 billion by 2003-04.

Exports rose steadily to cross the US$ 3-billion mark in 2005-06, and peaked at nearly US$ 3.6 billion during the 2007-08 fiscal.

http://www.unbconnect.com/component/news/task-show/id-70962

British-Bangladeshi

March 13th, 2012, 09:54 PM

A bright spot for investment
A Swiss fund manager explains why investors should park money in Bangladesh

Bangladesh has a huge potential for the foreign fund managers as the country's economic growth and performance by listed companies is very good, said Roberto Pusterla, a Swiss fund manager.

This is the right time to invest in the Bangladesh stockmarket as the market is lucrative for long-term investments, said Pusterla, also a member of the management (private banking) of Geneva-based Banque Morval.

He emphasised the need for political stability, power and infrastructure development, and macro economy and foreign investor friendly policy to attract investors into the country.

“I hope Goldman Sachs, an international asset management firm based in USA, will come one day to invest in Bangladesh's stockmarket,” he added.

A Swiss fund invested 10 million euros (Tk 107.3 crore) in the Bangladesh stockmarket in October 2010 -- the first foreign fund invested in the country.

The fund styled 'Bangladesh and EM Equity Fund' was created targeting Bangladesh and some other emerging markets.

“We are working to collect more capital from individuals and institutional investors globally,'' said Pusterla, fund manager of Bangladesh and EM Equity Fund.

Pusterla said in the Bangladesh stockmarket, the fund's preferable sectors include banks, pharmaceuticals, power and telecom.

The fund invested 32.01 percent in the banking sector as on January 31, which is the fund's biggest investment in a single sector.

The fund invested 19.89 percent in the fuel and power sector, 13.03 percent in pharmaceuticals, 5.89 percent in telecommunication, 8.09 percent in tannery and textile, 1.55 percent in food and allied and 14.27 percent in others.

He said the fund's strategy is to identify undervalued listed companies and provide exposure to these companies through a diversified portfolio of equity holdings.

“When selecting an investment opportunity, the manager looks for well recognised brands with a strong presence and competent management in a growing market,” according to the fund's strategy.

Commenting on market behaviour and the macro economy of Bangladesh, Ales Glavan, an adviser to the fund manager for Bangladesh, said the present situation in the market is the entry point for long-term investment as the share prices of many of the fundamentally strong companies have come down.

“Bangladesh Bank doing very well in controlling inflation as the government cut subsidy in different sectors. This policy will be helpful for the economy in the long run. A 6 percent to 6.5 percent GDP growth is helpful for the country,” Glavan said.

Foreign investors, including non-resident Bangladeshis in Europe and in other countries, have a good opportunity to invest in the fund, he said. “If they put cash in our fund, we can invest largely in Bangladesh.”

The government decided to withdraw the 10 percent tax on profits earned by foreign institutional and non-resident Bangladeshi investors, which will help foreign investment, he said.

He said administrative complexities, political instability and tax barriers are the main obstacles for the foreign investors.

Bangladesh and EM Equity Fund made its investment through BRAC EPL, one of the leading portfolio managers that give stock brokerage services to foreign fund managers.

The Swiss fund is not the only one to focus on in the Bangladesh market. Data on portfolio investment shows that foreign investors or global fund managers are also investing here.

Foreign investors bought shares worth Tk 1,216.83 crore, while they sold shares worth Tk 1,138.40 crore last year, according to Dhaka Stock Exchange (DSE) statistics.

The buying tendency by the foreign investors, most of whom are actually global fund managers, can be attributed to the lower value of securities due to massive corrections in share prices throughout the last couple of years, local brokers said.

The overall market PE (price to earnings) ratio came down to a five-year low at 13 last year, a level that points at a good time for investment, they said. The market price-to-earnings ratio on the Dhaka bourse was 11.61 yesterday.

http://www.thedailystar.net/newDesign/news-details.php?nid=226158

British-Bangladeshi

March 14th, 2012, 10:29 PM

Unlocking a world of potential: The Bangladesh journey
HSBC/FinanceAsia roundtable in Dhaka

Introduction by Dr Atiur Rahman

The Bangladesh story is a well kept secret. Most of all, it is a story of entrepreneurship. In the early 1970s, there was very little expectation that we would become such a big exporter, or that, in effect, every Bangladeshi would become an entrepreneur. In fact, Bangladesh is the only country in the region that has grown consistently over the past decade, despite political upheavals and natural calamities. The poverty level has halved during the past two decades and income inequality is declining, as shown by the falling GINI coefficient. Other social indices are also improving: immunisation and nutrition is better than India's, for example. Meanwhile, exports are going from strength to strength, and include apparels, leather, shipbuilding (four ships were exported to Germany in the last few months), pharmaceuticals, software and jute. There is also geographic diversification for the destination of those exports, with new markets found in Japan, Russia and all around the world. Bangladesh is one of the lowest cost countries, despite recent inflationary pressures. A flexible exchange rate also helps our exporters. However, there is room for further export growth, which is now gaining 3 percent share of GDP every year, and a per capita income of $800 means the country has massive potential for increased affluence. Bangladesh is also providing for facilities to be an offshore centre for outsourcing. Today, 50 percent of our economy is driven by the service sector, so financial intermediation plays a vital role.

We, at the central bank, have taken the initiative by improving automation, while commercial banks such as HSBC can bridge the gap between local and international activities. Bangladesh certainly welcomes foreign investors and it's worth bearing in mind that foreigners have always enjoyed a stable operating environment here despite challenges of a developing nation. The strategic geographical position of Bangladesh, as a gateway to India and the Middle East, is also important. Finally, looking ahead, perhaps the key to further progress is to elevate the branding of Bangladesh. Meetings such as this one, sponsored by HSBC and FinanceAsia, can do a lot to help this process.

What are the prospects for Bangladesh's principal exports of apparels and textiles?

Dr Zahur Ahmed: Although the US and Europe are important export markets, we have diversified during the past two years, in particular to China, Russia, Australia, the UAE and South Africa. India is likely to be next. The recession in the US and Europe will have just a short-term effect. No other country can support the $300 billion global apparel industry like Bangladesh can, so the prospects look healthy. However, energy costs are getting too high, and we will need to aim towards product diversification.

Lutfe M Ayub: I have been in the business for 20 years, and I still see tremendous opportunities. The global recession is temporary. More important are Bangladesh's low costs, flexibility and entrepreneurial spirit. In 2010, we exported $12 billion worth of goods; in the first 10 months of this year we have already exported $16 billion, finding new markets in Australia, Japan and Africa, and should achieve an average growth rate of 20 percent a year - so will soon reach $40 billion. But, there are socio-economic consequences of this progress. We need to improve the country's physical infrastructure, focus on branding, and enhance our partnership and understanding with the government. Nevertheless, apparels will be a continued success story.

Paul Hollins: We have been sourcing from Bangladesh for a number of years, but increased the level significantly during the past three to four years, and have even started manufacturing in the country. Bangladesh enjoys critical mass that is found nowhere else. On the other hand, it needs better logistics and infrastructure.

Md Mahbub-ur-Rahman: It is important to stress the dynamics of the garment trade. Take this pair of trousers that I brought with me for demonstration. The material was sourced from China, made into the final product in Bangladesh for a Japanese retailer and then sold in Shanghai. Trade between developing nations, specially inter Asia trade, is growing at a much faster pace compared to global growth in trade. This new silk route or really the Asian trade corridor is likely to become much more important for the world economy in the future. HSBC has a role to play facilitating this international trade process, and it is a rapidly developing part of our business. We have a leading position in export and import out of Bangladesh, over 8 percent of the country's international trade is facilitated by us. We are also able to support inter-Asia trade from end to end, linking importers and exporters in Bangladesh with their counterparts in, say China or India, within a seamless global platform.

Sanjay Prakash: In fact, 1 in 10 pairs of jeans in the world is manufactured in Bangladesh, and 1 in 7 sold in the US is made here. Speed and connectivity are HSBC's strengths in this industry, and 40 percent of the banks' lending in Bangladesh is to the apparel sector.

Dr Atiur Rahman: It's also worth noting that the central bank has recently opened a window for foreign exchange transactions in Renminbi, and also introduced other incentives for the growing trade with China.

Dr Syed Ferhat Anwar: In my view, key challenges are to enhance product branding and improve labour productivity. The government can help with the former, by funding research and development for design, while companies need to look outside Bangladesh for alternative manufacturing bases where the cost of land is lower.

How much traction do other export industries enjoy?

Mahmudul Huq: The jute industry has enjoyed considerable growth in the past 10 years. Bangladesh is the world's biggest exporter of both raw and manufactured jute, and exports 85 percent to 90 percent of its raw fibre - India consumes most of its own. Our main export markets are India, Pakistan and China. Indeed, we exported 100,000 tonnes to China last year, compared with 30,000 imports eight years ago. That's a phenomenal growth. The rest of the world takes 20 percent of the country's jute exports, and they are in effect captive customers. Meanwhile, the market in weaving products has stabilised after contracting over 30 years, with exports to India growing during the past five years. This has happened simply through refurbishing old factories, and without help from banks or the government. Yarn for the carpet industry has also posted spectacular growth. Bangladesh was exporting 15,000 to 20,000 tonnes in 1980; now the figure is 400,000 tonnes. Carpets can be made faster and cheaper, but manufacturers still need jute yarn, because it adds weight and volume at the cheapest cost. A further trend is a shift towards exporting spun yarn to China, and eventually we will be exporting the finished product.

Ahsan Khan Chowdhury: Bangladeshis can export anything to anywhere. Our company, for example, trades in difficult markets such as Papua New Guinea, South Sudan and Somalia. Bangladeshi entrepreneurs go to tough markets, and we thrive. That is the beauty of Bangladesh. We learn from experience at home, and then enter new countries gradually, and we will eventually develop global brands. In fact, Pran is already a global brand. Bangladesh's demography and location are also advantageous, and I expect that north-east India will be a big market for us soon. Other features are improving levels of education, resilience against set-backs, high aspirations, and adaptability.

Nazim Farhan Choudhury: We started our graphic design outsourcing company five years ago, and now employ over 200 people in every continent except Latin America although that will change soon and expect to have 400 staff by the end of next year. We design print and online graphics for leading global brands from around the world.

Mahfuz Anam: Bangladesh actually has one of the freest media in the world. There are over a hundred good newspapers in Dhaka, 10 private TV stations and several radio stations. It is a very vibrant media and much more so than in Malaysia, Indonesia or Singapore, for example. And this is healthy for the country. I'd also like to emphasise our country's achievement despite awesome challenges. We have a population of 150 million constrained in a landmass of 144,000 square kilometres, yet we are successful at feeding and educating that population within a democratic framework. It is like an experiment. However, we also need to raise worldwide media attention, diverting its focus from the periodic natural disasters or political unrest. Instead, it should be more aware of our entrepreneurs and our successful human social development, which is happening more often than not. At the foremost, we and our government need to be convinced of Bangladesh's future. There is a great story here, and we should be grateful to HSBC and FinanceAsia for promoting it.

Dr Atiur Rahman: I agree; ours is a story that should be told more frequently in more places. The non-resident Bangladeshis, who supply $12 billion worth of remittances each year, is another dimension. They are widely recognised as hard working, loyal, ambitious and entrepreneurial, setting up small businesses throughout the world. We all should celebrate and encourage this aspect of Bangladeshi culture. In fact, the central bank, as regulator, can and does encourage and nurture these aspirations through dedicated policies and incentives.

Should Bangladesh's companies get bigger, or will the future remain with SMEs?

Dr Syed Ferhat Anwar: Here's an interesting fact - if the world's population were placed in the US, the population concentration would still be less than in Bangladesh. So we and our entrepreneurs should expect to face challenges. Most of them are in the services sector; the country has the greatest concentration of retail outlets - nine per square kilometre. Is this good? Yes for today, but perhaps not for tomorrow. Around 63 percent of the country's population is young, and they are getting better educated. Many will want to seek improved opportunities, maybe travelling abroad. So, we need to rethink our strategy: too many small enterprises will not necessarily be productive.

Ahsan Khan Chowdhury: Starting small is a good place to learn from, but we are likely to graduate to bigger size, despite recent problems such as high gas prices and the global financial crisis acting as short-term constraints.

Lutfe M Ayub: I'd highlight two things - a shortage of natural resources and high population density are significant impediments to other types of industries on a large scale. Hence, the services sector is essential to Bangladesh; no other industry is as suitable, and as capable of providing employment and as less capital intensive. The second point is important - the cost of borrowing money is high in Bangladesh. Indeed, I'd argue that banks need to be more competitive and offer cheaper rates, comparable to the rates that foreign investors can access.

Md Mahbub-ur-Rahman: I sympathise with that point, HSBC continually thinks about alternative ways to help its customers, taking a broad perspective, and using its international connectivity. That means we are willing and able to use our offshore banking book, the largest in Bangladesh, to provide foreign currency support to local firms, bringing competitiveness to local enterprises in international operations. Our experience is very pleasant with Bangladeshi exporters and their business acumen and proficiency. We however, need to be aware that while foreign currency exposure is fine for exporters with a natural hedge, the dynamics are more complex for purely domestic firms. We also need to determine, which is the more important driver, availability or the cost of finance.

Deposit rates need to encourage savings, which leads to higher lending rates in Bangladesh. Otherwise, the availability of financing will be low. Real effective lending interest rates, adjusted for inflation, are not bad in the overall context.

We have exchange control regulations in place, which presents certain operational challenges, but overall it also protects the local economy from a number of challenges. We are happy to find a very supportive Central Bank and the Board of Investment for local companies accessing internationally competitive financing markets.

Lutfe M Ayub: I agree there are other problems, although one - the surge in the price of natural gas - is less of an issue for us as we have moved to alternative fuels. The main concern is lagging productivity due to inadequate mid-level education and lack of targeted training among the workforce.

Dr Zahur Ahmed: We too have adapted to alternative and more efficient fuels, and introduced power-saving practices. I agree that labour productivity needs to improve. Many employees arrive straight out of their protective rural communities. Entrepreneurs need to adopt a patient approach, and try to understand people better. This approach is successful, and efficiency at my plants is now at around 60 percent compared with about half that a few years ago.

Ahsan Khan Chowdhury: Banks such as HSBC have a positive role to play in financing Bangladeshi companies. Lending at global rates of interest would undoubtedly help us. Not just lending, international footprint is also important.

What are the constraints to developing business and entrepreneurial skills?

Sanjay Prakash: A core job for us at HSBC across the globe is to finance and facilitate entrepreneurship. In fact, we run a regional “HSBC Young Entrepreneur Awards” programme in Asia Pacific. And it is worth noting, that Bangladeshi teams have finished within the top three for each of the six years the awards have been organised here. Another issue is the development of local capital markets. These are essential to attract foreign investment and funding for local enterprises; but the corollary is improved corporate governance, shared profits and capital restructuring.

Nazim Farhan Choudhury: One failing is that we don't enhance entrepreneurial skills sufficiently in our education system, in order to prepare the million people entering the workforce every year. The challenge is to teach these skills and techniques on a mass scale, not just at business schools. Also, female entrepreneurship is very important, particularly supported by microfinance, and fostered by support groups. I see more and more female entrepreneurs in my advertising business.

Mahmudul Huq: But, our success in meeting the challenges of educating, employing and feeding a population that has doubled in size since independence is due to our entrepreneurs. And we still feel confident about the future.

Nazim Farhan Choudhury: It's possible that we have inherent entrepreneurial skill sets. But, bear in mind, as Bengalis we have only been in business for a short time. Before independence, most businesses were run by the West Pakistanis, and Bengalis merely concentrated on trading. The first generation of Bengali had businessmen learned from their mistakes, and sent the next generation overseas to study; and they are bringing about a new dimension.

Paul Hollins: The education of management at all levels, specially mid and senior level is essential, so it can organise the labour force and inputs more effectively, allowing entrepreneurs to deliver the final product. At our company, foreign managers train locals who will eventually replace them.

Dr Syed Ferhat Anwar: Most large businesses in Bangladesh conduct in-house training. But, we still lack some of the formal skills, although NGOs have helped.

Ahsan Khan Chowdhury: The private sector has had a crucial role in all aspects of society: education, transport, telecoms and hospitals. Also, the transition from SMEs to larger companies is taking place.

How important is foreign investment for the country's future?

Paul Hollins: As a foreign company operating and sourcing here, we believe that Bangladesh has a sustainable future for us, even as the country becomes richer. There is no alternative to the mass of people in the workforce.

Dr Syed Ferhat Anwar: Foreign direct investment (FDI) is essential especially for infrastructure development. However, the private sector is sceptical about foreign companies, so joint ventures are the best way to start. For example, take the pharmaceutical industry. Local companies dominate the sector, after multinational corporations came in with generic ideas that were inappropriate for Bangladesh - and they failed.

Sanjay Prakash: The impact of the government is important especially a political system that ensures stability. Bangladesh is one of the 11 new frontier countries, and there is interest among international fund managers. The key to attracting them is having the right returns, liquidity and transparency. Entrepreneurs have to 'show themselves', that is, be willing to change capital structures, implement good audits, improve governance and share profits.

Dr Syed Ferhat Anwar: We can build up efficiency through training, but corporate governance here needs to have a local dimension that reflects Bangladesh's uniqueness. This is especially true for small firms.

Md Mahbub-ur-Rahman: The international markets need to be aware of Bangladesh's improved performance, particularly since being rated by S&P and Moody's.

We feel the time is ripe for Bangladesh to access international bond markets as a sovereign. The current low yields and credit concerns in Europe has actually driven up the attractiveness of emerging market sovereign bonds, and we are receiving queries from fund managers on when Bangladesh will issue its first bonds. If Bangladesh goes to the market with arrangers having extensive experience in managing Asian sovereign issues like us, we are confident of a successful issue at an acceptable pricing.

But more important than the pricing, it will open up new avenue of funding for the government for strategic investments. In the process, we will get to tell our growth story to the world's leading investors, which always has a positive impact in line with what we were talking before. Building credibility in small steps is probably one of the best branding possible for us. This will also set the right benchmark for corporates to access the same market.

Sanjay Prakash: HSBC advised Bangladesh Bank in its negotiations with S&P to gain a BB- rating. The country is likely to take a step-by-step approach to issuing a sovereign bond.

How important is recognition, such as that achieved by the HSBC Export Excellence Awards?

Sanjay Prakash: This is the second year that we've run the awards. We felt that it was a way to recognise the value of Bangladeshi exporters, showcase them, and promote trade and competition. The awards have credibility, not least because we appoint high calibre, independent jurors.

Md Mahbub-ur-Rahman: It is a humble way of recognising exporters' strength, stressing our own connectivity and bringing entrepreneurs together.

Nazim Farhan Choudhury: Speaking as a recipient of an award, I'd say that several benefits are that its gets people talking, encourages competition and helps us attract talent that might otherwise go to multinationals. Perhaps more needs to be done to promote the winners of the awards.

Dr Syed Ferhat Anwar: Awards motivate people to achieve better standards. So they have a positive contribution, although maybe some equally deserving companies have missed out in the process. Also, what happens next?

Lutfe M Ayub: The HSBC award is a brilliant idea, and HSBC needs to be applauded for its efforts and initiative. It gives a company a higher profile, helps trade and promotes the country overall.

Sanjay Prakash: One of the challenges we faced was to spread the net wider to include other banks' customers. So, it is not exclusively an HSBC award it is for exporters in general. I also appreciate that we need to promote the award-winners more effectively.

PARTICIPANTS

Dr Atiur Rahman

Governor, Bangladesh Bank

Ahsan Khan Chowdhury

Deputy Managing Director,

Pran-RFL Group

Lutfe M Ayub

Managing Director, Sunman Group

Mahmudul Huq

Managing Director, Sadat Jute Industries

Mahfuz Anam

Editor and Publisher, The Daily Star

Nazim Farhan Choudhury

Managing Director, Graphicpeople Ltd and Adcomm Ltd

Paul Hollins

Operations Director, Dewhirst Group UK

Dr Syed Ferhat Anwar

Professor, Institute of Business Administration, University of Dhaka

Dr Zahur Ahmed

Managing Director, Apex Spinning and Knitting Mills Ltd.

Sanjay Prakash

COO, Commercial Banking, HSBC Asia-Pacific; former CEO, HSBC Bangladesh

Md Mahbub-ur-Rahman

Head of Commercial Banking, HSBC Bangladesh

Moderated by: Rupert Walker

Senior Reporter, FinanceAsia

http://www.thedailystar.net/newDesign/news-details.php?nid=226301

British-Bangladeshi

March 14th, 2012, 10:53 PM

Bangladesh economic dev model presented in ECOSCO

Economic Adviser to the Prime Minister Dr Mashiur Rahman presented a Bangladesh economic development model highlighting the government's steps for employment generation programmes in the summer session of Economic and Social Council (ECOSOC) of the United Nations (UN), reports BSS.

The adviser is leading a five-member Bangladesh delegation in the session now being held in New York, USA, said a handout Wednesday today.

Dr Mashiur Rahman is taking part in a number of discussion sessions of the ECOSOC.

In his presentation at a meeting of the ECOSOC, Dr Mashiur Rahman said the present government has taken various initiatives, including national service guarantee scheme, social safety net programme, self-employment, training programme for the development of skilled manpower and women employment and for employment generation in the country.

Taking part in a separate discussion, the adviser highlighted Bangladesh's economic stability and achievements in the sector despite the global economic downturn. The government has been working for the welfare of the poor people and for enhancement of their ability, standard of life and progress, he added.

"The government's programmes are opening up new employment opportunities for the people when the economic recession has been reducing the scope for new job-seekers worldwide," he added.

In this connection the adviser said the government has reopened closed mills and factories, especially jute mills.

www.thefinancialexpress-bd.com/more.php?news_id=123534&date=2012-03-15

British-Bangladeshi

March 16th, 2012, 05:56 PM

Light engineering export exceeds targets

Export earning from light engineering equipments surpassed the target, set for the present fiscal year (2011-12), within the first six months of the fiscal, following a growing demand of the items produced here abroad, said sector insiders.

The target of export earning from light engineering was fixed at US$ 26.85 million for the present fiscal. However, the sector has already earned US$ 27.67 million within the six months of the fiscal, according to the Export Promotion Bureau (EPB) data.

The sector insiders expressed their hope that earning from the engineering products will increase further, as the demand of the products is gradually growing in the global market.

The EPB data showed that overseas shipment of the products went up by around 163.27 per cent during the first half of 2011-12, comparing with the corresponding period of the previous year.

Its export earning stood at $ 27.67 million during July-December period of the fiscal 2011-12, which was $ 10.51 million during the same period of the fiscal 2010-11.

Bangladesh Engineering Industries Owners Association (BEIOA) president Abdur Razzaque said the demand of the local light engineering products has recently increased in some countries like India, Myanmar and South Africa.
"The countries are mainly importing construction and agriculture machineries and spare parts from Bangladesh."

He said though the export volume of these items has increased significantly, but the growth is not yet satisfactory, comparing to the global demand.
The BEIOA president also said it is necessary to establish at least eight to ten industrial parks across the country to increase the export earning from the sector.

The country should follow India where about 1,600 industrial parks have been established to boost the engineering sector, said Mr Razzaque.

He said the Ministry of Industries assured the association of setting up an industrial park within the tenure of the present government, but so far, no initiative is taken in this regard.

Nearly 40,000 light engineering units are operating in the country, where around 6.6 million people are directly and indirectly involved, according to BEIOA.

The sector is now providing vital support to industrial, agricultural and construction sectors by manufacturing a wide range of spare parts, castings, moulds, dices, oil and gas pipeline fittings and light machinery.

http://thenewnationbd.com/newsdetails.aspx?newsid=33897

British-Bangladeshi

March 19th, 2012, 10:21 PM

Poverty level declines to 31.5pc in 5 years
Lowest rate in Ctg div, highest in Rangpur

Bangladesh's poverty rate has dropped to 31.5 per cent, an 8.5 percentage point decline in the last five years since 2005, according to final Household Income and Expenditure Survey (HIES) released Monday.

"We've attained an impressive success in poverty alleviation as the poverty level declined significantly in the last five years," said Shajahan Ali Mollah, director general of Bangladesh Bureau of Statistics (BBS).

BBS conducted the survey from February 2010 to January 2011 on 612 samples across the country.

The upper poverty line in the rural area stood at 35.2 per cent in 2010 against 43.8 per cent in 2005, while in the urban area it was 21.3 per cent in 2010 against 28.4 per cent five years back, the report said.

The lowest poverty rate was recorded in Chittagong division at 13.1 per cent, while it is 15.6 per cent in Dhaka, the survey said.

Rangpur division has the highest incidence of poverty at 30.1 per cent, the survey said.

The head count rate (HCR) recorded a reduction by 8.6 percentage points in rural areas and 7.1 percentage point in urban areas during the period between 2005 and 2010.

BBS report said that in about 20 years since 1991-92, the country's poverty level dropped by 25.2 per cent.

"This is close to achieving the millennium development goal (MDG) about halving the poverty incidence by 2015," the chief of the BBS told the FE.

The national statistics organisation measures the poverty level by the cost-of-basic-needs method.

In HIES 2010, the HCR involving incidence of lower poverty is estimated at 17.6 per cent at the national level, 21.1 per cent in the rural areas and 7.7 per cent in the urban areas.

Mustafa K Mujeri, director general of government-funded think-tank Bangladesh Institute of Development Studies (BIDS), told the FE: "Our economy is growing each year. So this is not surprising."

Mr Mujeri said the country's income inequality had also dropped marginally in the recent years, adding: "This has an impact on the poverty level."

Ahsan H Mansur, executive director of local think-tank, Policy Research Institute (PRI) told the FE: "We've confidence in the poverty measuring method as this is almost equivalent to our in-house survey on the same issue."

"There is no doubt that the real income has surged in recent years," Mr Mansur added.

However, the poverty rate in Barisal was recorded at 26.7 per cent, Khulna at 15.4 per cent, Rajshahi at 16.8 per cent, and in Sylhet at 20.7 per cent.

The 'poverty gap', which estimates the depth of poverty of a country's population, is estimated at 3.1 per cent at the national level.

Chittagong division has recorded the lowest gap at 2.2 per cent. The gap is at the highest level in Barisal division.

The study said the per capita income of the poor is at the highest level in Dhaka division at Tk 1159.30, followed by Rajshahi division at Tk 1119.90 and Rangpur at 1100.35.

The survey said per capita expenditure of the poor is Tk 1245.76 at the national level, Tk 1200.02 in the rural areas and Tk 1457.65 in the urban areas.

Chittagong division recorded the highest per capita expenditure with Tk 1174.50, followed by Dhaka at Tk 1071.29.

http://www.thefinancialexpress-bd.com/more.php?news_id=124066&date=2012-03-20

British-Bangladeshi

March 20th, 2012, 06:44 PM

ECNEC approves 7 projects worth Tk 1,958 crore

Executive Committee of the National Economic Council (ECNEC) on Tuesday approved seven development projects involving Tk 1,958 crore that include one for providing separate identity cards to 1.3 million fishermen in the country.

The approval came from a meeting of the ECNEC held at the NEC conference room in city’s Sher-e-Bangla Nagar with Prime Minister Sheikh Hasina in the chair.

“The total cost of all the seven projects will be borne from the government exchequer,” said acting Planning Division Secretary Bhuiyan Shafiqul Islam while briefing reporters after the meeting.

Of the seven projects, Department of Fisheries under the Fisheries and Livestock Ministry will implement the project titled ‘Registration of fishermen and providing them identity cards’ at a cost of Tk 85 crore.

The project covering 482 upazilas of all the 64 districts will be completed by June 2015.

Under the project, the fishermen will have separate registration also. A primary list of fishermen would be prepared by identifying them at upazilla level.

Based on this list, ID cards would be prepared and distributed among them. These cards will be in line with their national ID. A complete data-base for fishermen along with their photographs and elaborate information will also be developed. Besides, the project will provide financial assistance to the fishermen who would be severely affected by natural calamity.

ECNEC approved a Tk 1,224 crore project, called ‘Augmentation of gas production under fast track program (revised)’, in order to enhance gas production substantially and maintain uninterrupted supply of natural gas to meet the country's growing demand.

Under the project, drilling of five appraisal-cum-development wells under BGFCL and SGFL, and work over of a well will be implemented. Moreover, two process plants will be set up. On completion of the project, 135 mmcf/d additional gas will be available in the country.

The meeting also approved ‘Greater Kushtia district infrastructure development project’ (Tk 340 crore), which aims to construct bridges, culverts, and hat-bazars, and develop roads with bituminous carpeting at village, union and upazila level under Kushtia, Chuadanga and Meherpur districts.

The other approved projects include further development of Jessore Science and Technology University (Tk 30 crore); construction of road from Saheb Bazar to Gourhanga Mor (amended, Tk 45 crore); extension of aviation fuel (Jet-A1) hydrant system at Hazrat Shahjalal International Airport, Dhaka (Tk 40 crore); and Economic Census-2013 project (Tk 194 crore).

Ministers, Advisers to the Prime Minister, Planning Commission members, secretaries of the concerned ministries and other high officials attended the meeting.

News Source:
UNB

British-Bangladeshi

March 20th, 2012, 07:06 PM

Savoring Bangladeshi shrimp gets luxurious

The country’s export growth of frozen food has slowed down in recent days as demands falling in major consumer markets of the USA and the EU, due to economic meltdown.

The country’s total export from the sector, which included shrimp and other frozen fish, during the first eight months of current fiscal has failed to achieve the projected target. The export earnings from frozen food during July-February of current fiscal stood at $ 4.45 billion as against a set target of $ 4.68 billion. The amount is $ 13.31 million below or 2.9 per cent less than the target. Not only economic slowdown in the USA and EU, desperate marketing of a new variety of shrimp -- vannamei -- by the neighboring India and Thailand has left Bangladesh behind. Another cause of shrinking export revenue, said exporters, was that high interest rate.

If the declining trend continues, experts fear that the country might not achieve the target from the sector, fixed for the current fiscal.

Almost 90 per cent of the country’s frozen food consignments are shipped to US, EU and other developed countries, most of which are facing economic slow down. “The consumers there are not lifting adequate number of packets of ‘black tiger’ and sweet water prawn, farmed in Bangladesh,” said an entrepreneur.

“Rather they are switching over to low cost shrimp, such as, Vannamei’”, said the exporter adding that the trend will have a negative implication in the future frozen food exports.

At present each pound of standard size ‘black tiger’ shrimp (16-20 pieces per pound) is selling at $ 4.5 -5.0 in the EU market as against $ 6.0-6.50 a few months ago. On the other hand, each pound of Vannamei is selling at $ 3.0 -3.50. Although black tigers, exported by Bangladesh, are cultured naturally and have good taste, but consumers prefer to Vannamei due to low prices.

According to sources, India last year harvested bumper crops for vannamei shrimp. To accommodate this large supply, their processing plants are reportedly running at 150-200
per cent of their capacities and doubled their working shifts.

Despite the foray, large shrimp especially the black tigers are still in high demand and exporters said the production of such shrimp is 40 percent of the annual domestic output. “The prices of smaller shrimps (from 26-100 pieces a pound) are quite low because of increased availability of vannamei from other countries,” said Ashim Kumasr Roy of Apex Food.

Besides Vannamei, recent increase of bank interest, industry sources said, cast a critical impact on the overall growth of the industry. Most of the bank have increased the interest rate for export oriented industry from 7 per cent to 16 per cent and also decreased the cash credit limit to 120 days instead of 270 days set earlier. These factors are eroding up their competitiveness, exporters said.

“Due to the recession we are getting low prices, but the growth is still continuing, said another exporter of frozen food, adding that it’s essential to reduce the cost of production.

http://theindependentbd.com/business/finance/100645-savoring-bangladeshi-shrimp-gets-luxurious.html

British-Bangladeshi

March 23rd, 2012, 07:09 PM

Sending remittance up to US $500 to be charge free

The government is taking steps so that Bangladeshi migrant workers can send up to $500 dollars to the country without any fee, said Expatriates' Welfare Minister Khandker Mosharraf Hossain on Wednesday.

Remittance contributes around 13 percent to the gross domestic product (GDP),” he said at a views-exchange meeting at his ministry with the officials of Bangladesh Labour wings abroad. He asked the Labour wing officials to work sincerely to increase the flow of remittance and resolve the problems of migrant workers.

Mentioning that around 80 lakh Bangladeshis are now working in different foreign countries, he also asked the officials to be more proactive to explore labour market abroad for more manpower export.

The minister said the cost of migration from Bangladesh is much higher than that of other countries. “The migration cost shouldn’t be the higher than 2-4 months’ salary of a worker,” he viewed.

Mosharraf directed the officials concerned to carefully examine the migration cost and the salary of workers before giving approval to their visas.

He also asked them to ensure the security of women migrant workers and take steps so that they can communicate with their family members over phone any time without any hassle. “You’ll have to ensure that the recruiting agencies register their (women workers) names for insurance.”

Terming the recent killing of Saudi Embassy official Khalaf Al Ali unexpected, the minister said it will not affect the country’s labour market abroad.

The government is investigating the case sincerely and stern action will be taken after the investigation, he added.

News Source:
UNB

British-Bangladeshi

March 26th, 2012, 06:27 PM

‘Bangladesh may get $14b as remittance, this year’

The government is contemplating to reform three-decade old Emigration Ordinance to insert more rights to the migrant workers. And, to facilitate international employment, the government is also setting up a migrants’ bank, according to Expatriates Welfare and Overseas Employment Minister Khandaker Mosharraf Hossain, MP. The minister also emphasised policy support to migrant workers while speaking at a business luncheon meeting of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), as the chief guest at a local hotel on Sunday.

In efforts to reduce migration costs, facilitate migration loan and encourage (remittance) investments, a migrants' bank will be set up, pointed out the minister.

“Manpower is our asset. We have received over US$ 12 billion remittance in 2011,” Mosharraf said.

Although foreign workers from Bangladesh make up just 2.8 per cent of Bangladesh’s population, they contribute to more than 13 per cent of gross domestic product (GDP). Remittance was second-biggest source of foreign income after ready-made garments in 2010-2011, the minister added.
According to the World Bank, Bangladesh is one of the top 10 remittance recipient countries globally.

Cost to migrate from Bangladesh is still very high comparing to other countries and step should be taken to bring it lower, minister said, and added that initiative is needed for a minimum five years of job agreement for migrant workers with host countries.

To encourage migrant workers to remit money through banks, he suggested that Bangladesh Bank allows migrants to send home up to $ 500 at free of charge.

He said majority of migrants from Bangladesh, approximately 63 per cent of them, are less skilled and semi skilled. The Middle East is the largest destination for Bangladeshi migrant workers, approximately some 80 per cent. However, Southeast Asia is also emerging as an important destination. Executive Committee of the National Economic Council (Ecnec) has already approved Tk 1,000 crore funds for setting up another 36 institutions for skill development of migrants, he added.

The government has taken some measures to attract host countries so that they employ more Bangladeshi immigrants. To explore new markets for Bangladeshi workers, high level visits have been undertaken to Romania, Iraq, Mali and Libya to mention a few. The government is also opening Bangladesh missions in some of these prospective countries. Similar efforts are also underway with other East European and Central Asian countries. And, conventional markets in Africa and North America are also being pursued. Furthermore, the Expatriates Welfare and Overseas Employment Ministry has also started exploring and diversifying into new sectors, such as care giving, nursing and other medical professions, as well as actively promoting women labour migration.

The minister thanked Bangladesh-Malaysia Chamber of Commerce and Industry for organising this important meeting.

While welcoming the guests, Syed Nurul Islam, president of BMCCI highlighted the role of immigrants in the country’s economic development.

He said over 8 million Bangladeshi people are working in different countries and among them huge numbers are living outside as regular immigrants. If everything goes well, Bangladesh will get over $14 billion in this year, he hoped. This will be an enormous achievement for Bangladesh, he observed.
The programme was also addressed by the special guests--Dr. Zafar Ahmed Khan, secretary of Ministry of Expatriates Welfare and Overseas and Employment, and C M Koyes Sami, managing director, Probashi Kallyan Bank.

http://www.theindependentbd.com/business/finance/101694-bangladesh-may-get-14b-as-remittance-this-year.html

British-Bangladeshi

March 26th, 2012, 06:58 PM

UAE-Bangladesh trade expected to exceed $1b mark this year
Expatriate community in the UAE a major contributor to growth

Nazmul Qununine, Bangladesh Ambassador to the UAE, said that during 2010-2011 trade with the UAE reached almost $900 million. Over 250,000 Bangladeshis were employed in the UAE last year.

Abu Dhabi: The volume of trade between Bangladesh and the UAE is likely to cross the $1 billion (Dh3.67 billion) mark for the financial year ending July 2012, said Nazmul Qununine, Bangladesh Ambassador to the UAE.

"Trade is fast becoming an essential component of Bangladesh's developmental strategy over the last decade or so and Bangladesh is now not dependent on foreign aid," he told Gulf News.

During 2010-2011, trade with the UAE reached almost $900 million, with Bangladesh's exports reaching $125 million and the UAE's exports reaching $770 million.

One of the key contributors to this growth is the large Bangladeshi expatriate community in the UAE. The UAE is home to over 700,000 Bangladeshi expatriates, making it the main overseas market for Bangladeshi workers.

In 2011, over 250,000 Bangladeshis got employment in the UAE, said Qununine. "They send more than $2 billion in remittances to Bangladesh and this year this is likely to increase," he said.

Training

Although a majority of Bangladeshi workers in the UAE are unskilled, the Dhaka government has been pushing for professionals such as doctors, nurses, engineers, bankers, pharmacists, teachers and accountants to join the workforce here.

"The UAE may want to set up a Nurses Training Institute and recruit nurses from Bangladesh," Qununine said.

Last year, the Prime Minister of Bangladesh, Shaikh Hasina, visited the UAE and signed two trade and investment agreements as part of the country's plan to bolster ties with the UAE.

Back then, Shaikh Hasina urged UAE investors, both from the public and private sectors, to invest in major infrastructure projects offered through public and private partnerships and joint ventures.

One of the problems hampering industrial growth in Bangladesh is the shortage of power.

The government has said that it will provide electricity "for all" by 2021, and increase power to 11,000 MW by 2015 and 20,000 MW by 2021.

‘Alleviate poverty'

"The government believes that electricity is a key element to alleviating poverty and eventually turn Bangladesh into a middle income country," he said.

"In line with the election pledge, the government has already published a yearly master plan for production of electricity from 2010-2015, both for the public and private sectors."

Investments

Today, investments from the UAE in Bangladesh stand at about $3 billion in sectors such as ceramics, telecommunications, banking, construction and services.

"Our expatriate business community in the UAE has been investing in Bangladesh in the recent years, Qununine said.

Bangladeshi business groups dealing in readymade garments, ceramics, furniture and other sectors are considering opening showrooms in the UAE to boost their business activities.

Qununine said that there are a number of agreements in place to boost ties such as a joint economic commission, air services agreement, agreement on the avoidance of double taxation, agreement on the promotion and protection of investment and a memorandum of understanding between the two apex federal chambers.

When it comes to the aviation sector, Qununine said that the government is "favourably" considering increasing the existing rights due to the demand from expatriates here.

"At present there are 42 flights a week each way," he said.

"There has been a demand for increasing these flight rights."

http://gulfnews.com/business/general/uae-bangladesh-trade-expected-to-exceed-1b-mark-this-year-1.999685

British-Bangladeshi

March 27th, 2012, 06:21 PM

Higher duties thwart P&G's expansion

Procter & Gamble (P&G) plans to introduce more of its products to Bangladesh to tap the market potential, as the steady economic growth of the country is fuelling demand for consumer goods.

But higher import duty for personal care goods acts as a barrier to the world's largest consumer goods company to launching more of its items in the market of 16 crore people.

Samuel S Kim, vice president for Asean and Asia development markets of P&G Asia, shared this view with The Daily Star in an interview during his recent visit to Dhaka. Import duty and supplementary duty together stand as high as 110 percent for shampoo, he said.

Higher duty also becomes a bottleneck for P&G to offer products at prices affordable to a large number of consumers here, Kim said.

"It makes Bangladesh ironically one of the places in Asia with the highest duties. Therefore, it's difficult for us to be able to provide products (to consumers) of great value and benefit at prices that can be lower," he said.

"Supplementary duty is the key challenge to reduce prices. It makes me feel bad that we are not being able to provide consumers with these products at prices that they should pay."

Kim said supplementary duty on top of basic import duty ranges 20-60 percent.

Out of 304 brands in different categories, the USA based multinational P&G markets its hair care brands Pantene and Head & Shoulder, shaving razor and foam under Gillette brand, skin care product Olay, Oral-B toothbrush, baby diaper Pampers and feminine napkin Whisper.

Of the products, the 175-year-old company enjoys leadership in the razor segment in Bangladesh where it has been selling its products through agents since 1996.

Its anti-dandruff shampoo -- Head & Shoulder -- sells well along with Pantene in Bangladesh's $500 million common consumer goods market, where another multinational firm Unilever is the main player.

Kim said the company does not flaunt its country-based sales figure. But P&G's business in the country is still 'quite modest', he said.

"It's modest in that it's one of the smaller businesses in our portfolio with a lot of growth potential," he said, adding that the market is rapidly changing.

"I need to offer more of P&G products and we will continue to grow with the growth of Bangladesh economy."

But much of the prospects of increasing sales lies in the hands of the government, for which the company is awaiting a reduction in duty, particularly supplementary duty.

A cut in duty will lead to wider emergence of the P&G products in the market, enabling higher number of consumers to get more choices within their purchasing capacity.

The company will thus create a more competitive environment in consumer goods segment, creating competitive pressure on marketers to improve qualities of their products.

"It's not so much important about winning against competitors. It's about winning for consumers. Consumers will only win when they have choices," Kim said.

"Think about anything in life -- if there are more choices, then through competition there will be more improvements. If retailers have more products to sell, you will be creating a more competitive environment where everybody will win."

P&G presses for reduced duty in shipments of its products from its base to Bangladesh at a time when rising per capita income fuels consumer spending for personal and household care products here.

An around 6 percent annual economic growth now leads to a gradual change in lifestyle and tastes of consumers living in urban and semi-urban areas.

According to the official, common consumer goods market that includes hair care, skin care, feminine care, baby care and male grooming stuff is growing by 5-10 percent annually in Bangladesh.

"This is a vastly growing market and we look forward to seeing continued and faster growth and providing more brands to the consumers. I am particularly impressed with the economic development here," said Kim, who has been visiting the country from time to time in the last two years.

Bangladesh, one of the most populous countries in the world, offers a good market potential, he said.

"It means that we have to be here. And frankly, keeping the development and current economic progress in view, we believe we can do good jobs in improving the lives of people here."

The P&G official said the company having operation in 80 countries also looks to reach all consumers, including those with low incomes.

But providing products to poor people at prices within their capacity is a challenge, he said.

"It's a constant challenge to figure out how we reduce the costs that can enable us to provide products of benefits, that can meet most consumers' needs and improve their lives. That is an ongoing challenge and ongoing journey."

Now P&G market experts travel the outskirts of the cities of developing markets to see how most people live to better understand their needs.

Kim said Bangladesh economy is growing fast and there are different levels of needs and consumers in the country.

P&G wants to do business here by creating a long lasting relationship with all segments, he said.

“We are just at the beginning phase here. We want to create a long term relationship, trust and connection with the Bangladeshi consumers.”

“Our purpose is to touch and improve people's lives. And when we do better jobs of touching and improving people's lives, we can generate sales and profit," he said.

http://www.thedailystar.net/newDesign/news-details.php?nid=227887

British-Bangladeshi

March 30th, 2012, 03:34 AM

‘Bangladesh on track to achieve MDGs’

The government of Bangladesh and its development partners today jointly examined trends in implementation of the Annual Development Program (ADP) at a local consultative group plenary meeting, reports BSS.

They concluded that disbursement of project aid is running at roughly the same pace as last year and identified ways to accelerate implementation beyond historic levels.

The Plenary Meeting of the Local Consultative Group was attended by Secretaries from relevant development ministries and ambassadors and heads of development agencies working in Bangladesh.

The meeting was co-chaired by Iqbal Mahmood, Senior Secretary, Economic Relations Division, on behalf of Government and Ellen Goldstein, World Bank Country Director, on behalf of development partners.

Bangladesh’s strong track record of growth in the past two decades has succeeded in cutting the poverty rate in half, and the country is also on track to achieve many of the Millennium Development Goals.

Development partners recognize these achievements and have supported the country’s priorities with an unprecedented volume of financial and technical support. Outstanding commitments of external aid now top US$ 13 billion, and aid continues to fund 35-40 percent of the country’s Annual Development Program (ADP).

Bangladesh’s ability to absorb aid flows effectively - and to demonstrate the results achieved - is of particular importance as aid commitments rise.
“Development Partners are supporting us with record financial commitments. The increased external aid commitment must be matched by scaled up disbursement by way of enhanced implementation of the Annual Development Program to get better results,” said Iqbal Mahmood.

“Today we agreed with partners to work together to conduct regular tripartite portfolio reviews, strengthen monitoring of lagging projects and develop an electronic aid management platform.”

At the meeting, government and development partners discussed an array of possible solutions to accelerate project disbursements above trend. While budget support has decreased since FY 09/10, project aid has increased.
“The good news is that aid disbursements for projects are running at the same level as last year. Nonetheless, a quantum improvement in implementation is possible if structural obstacles are alleviated,” said Ellen Goldstein.

“Going forward, development partners hope to see concrete measures to streamline project approval and revisions, increase transparency and efficiency of public procurement, enhance continuity in project staffing and deepen public financial management reforms to encourage greater use of country systems.”

Participants agreed to hold quarterly meetings to closely monitor the implementation of the agreed measures. Although adequate absorpti*on has been a source of concern for Government and its partners, achieving development results is the ultimate goal.

Development partners lauded the incorporation of concrete goals and targets in the Sixth Five Year Plan, and offered support to Government to ensure effective tracking of progress.

News Source:
News Today

British-Bangladeshi

March 31st, 2012, 09:53 PM

Bangladesh an example among LDCs

Bangladesh’s ability to translate WTO’s (World Trade Organization) flexibilities for the world’s poorest nations into trade and development outcomes is an example for all the least developed countries (LDCs), visiting WTO DG Pascal Lamy said here on Saturday.

“Bangladesh has done particularly well and is well-positioned for the future… of course, if Bangladesh is to continue in its leadership role it needs leaders,” he told the next generations of Bangladesh’s leaders at the convocation of Dhaka University.

He said a vibrant private sector, active civil society, and profound social transformation mean Bangladesh is poised to make the next leap to integrate into the global economy.

“For the budding entrepreneurs amongst you, I encourage you to see development opportunities…open markets spur innovation and change. Protectionism impoverishes and corrupts,” he said

On Bangladesh’s RMG sector, Lamy said: “Economists here and elsewhere issued dark predictions of doom for Bangladesh and its fledgling garment sector. The reality, I think, you will agree, has been somewhat different.”

“Bangladesh’s garment sector has not just survived, it has thrived. Removing the quotas revealed Bangladesh's comparative advantage. Unilateral preferences have also helped Bangladesh's competitive edge.”

Lamy sees a challenge for Bangladesh which is to expand the progress in the garment sector to other sectors of the economy.

He also said simplification of the rules of origin governing duty- and quota-free access to the EU market in 2010 has led to a surge in Bangladesh's garment exports.

Lamy said the experience of Bangladesh shows that foreign market access for services provided through temporary movements of professionals can have important positive effects in terms of improved availability of scarce foreign currency, improving the current-account balance, financing of higher levels of imports, economic growth, employment generation and poverty reduction.

“The value of remittances to Bangladesh's economy is many times larger than aid or even foreign direct investment.”

Pascal Lamy, the fifth DG of the WTO, was the Convocation Speaker of the 46th convocation of Dhaka University held at the university playground.

Lamy, also a French political adviser, a businessman, and a former European Commissioner for Trade, was conferred upon Doctorate of Laws degree (Honoris Causa) at the convocation.

He encouraged Bangladesh to continue its leadership role on trade issues among the LDCs.

News Source:
UNB

British-Bangladeshi

March 31st, 2012, 10:04 PM

B’desh well on track to achieve middle-income status by 2021
Pascal Lamy tells DU convocation

"The government is well on track to meet many of the time-bound targets, including achieving middle income status by 2021," he said in his speech at the 46th convocation of the University of Dhaka, held at the university playground.

Mr Pascal Lamy, the fifth DG of the WTO, was the Convocation Speaker. A French political adviser, a businessman and a former European Union (EU)

Commissioner for Trade, Mr Lamy was conferred upon Doctorate of Law degree (Honoris Causa) at the convocation.

The WTO chief said the flexibilities in the WTO system are aiding Bangladesh's growth and development and it is now a model for other least developed countries (LDCs) in terms of using such flexibilities.

But as the country starts to push against the middle income bracket, some of those flexibilities would begin to fall away as the graduation process from the status of an LDC beacons Bangladesh, he said.

He said managing this transition will require investing in the service sector, infrastructure and in trade facilitation programmes and it would require helping Bangladesh businesses to integrate themselves better in the global value-chain.

"In sum, it is a transformation that will require a great deal of strategic planning. In WTO, you will find a willing and sympathetic partner," the WTO chief said.

He said a vibrant private sector, active civil society and profound social transformation mean Bangladesh is poised to make the next leap to integrate itself into the global economy.

"The WTO is your partner in achieving your development goal," he said adding that he encouraged Bangladesh to continue its leadership role on trade issues among the LDCs and to deliver on the vision of Golden Bengal though individual and collective efforts.

Noting various successes of Bangladesh related to the global trade, Lamy said, "Bangladesh leads the way for other LDCs."

"This country needs an internet generation that will twitter blog and network Bangladesh into the global economy," Pascal Lamy said.

"Bangladesh has done particularly well and is well positioned for the future. Three of the five fastest growing markets for LDC exports are regional partners - China, India and Thailand," he said.

"In 1993, only 1 in 500 people had access to a telephone. Not even a generation later, Bangladesh had over 56 million mobile phone subscribers," he said.

The WTO chief further said international trade contributes significantly to growth and development in the LDCs'. Trade accounts for two-thirds of the 7 per cent annual growth that LDCs have recorded over the past decade.

"Yet even though LDC trade grew twice as fast as world trade in the last decade and have doubled their share in global trade, they still account for only 1 per cent of world trade," he added.

He said the ready-made garment sector - mainstay of Bangladesh's economy and the source of more than 75 per cent of total exports and more than three million jobs, particularly for women - accounts for over 10 per cent of GDP.

He said between 1974 and 2004 world trade in textiles was governed by quotas limiting the amount that developing countries could export to developed countries. The phasing out of the Multifibre Arrangement began with the debut of the WTO in 1995 and by 1 January 2005 all quotas on textiles and clothing had been eliminated.

"In many developing countries, including Bangladesh, there was considerable apprehension. Economists here and elsewhere issued dark predictions of doom for Bangladesh and its fledgling garment sector. The reality, I think you will agree, has been somewhat different," he added.

He said that Bangladesh's garment sector has not just survived, it has thrived. Removing the quotas revealed Bangladesh's comparative advantage. Unilateral preferences have also helped Bangladesh's competitive edge. Simplification of the rules of origin governing Duty Free and Quota Free access to the EU market in 2010 has led to a surge in Bangladesh's garment exports.

"Similar achievements have also been registered in Bangladesh's pharmaceutical industry which has seen its growth consolidated by the flexibilities offered to LDCs under the WTO's intellectual property rules," Mr Lamy mentioned.

He said that progressive trade opening unquestionably helped Bangladesh reduce poverty.

"Few countries anywhere in the world have recorded an 8.5 per cent drop in absolute poverty over a five-year period. Progressive trade opening has unquestionably helped Bangladesh reduce poverty," he said.

"A more open, transparent, non-discriminatory and rules based multilateral trading system can assist WTO Members in realising their potential in an increasingly globalised economy," the WTO DG said.

He said that the WTO consensus driven decision-making gives LDCs a voice and a stake in the multilateral system which neither regional nor bilateral trade schemes can deliver.

These benefits are recognised not just by the WTO, but also by the United Nation's Programmes of Action for LDCs, which under the "Istanbul Programme of Action for LDCs" provides a blueprint for international co-operation on integrating LDCs in to the global economy.

He said trade - both imports and exports - LDCs can make a vital contribution to development and to poverty reduction. LDCs also face particular difficulties arising from specific structural and capacity constraints.

"A more open, transparent, non-discriminatory and rules based multilateral trading system can assist WTO Members in realizing their potential in an increasingly globalised economy. For LDCs it is a vital tool. The WTO consensus driven decision-making gives LDCs a voice and a stake in the multilateral system which neither regional nor bilateral trade schemes can deliver," he said.

He said when the WTO opened its doors in 1995 there were 123 governments around the table. The number now rose to 157. More than 97 percent of global trade will be covered by the WTO.

"I encourage Bangladesh to continue its leadership role on trade issues among LDCs. I encourage you, the students of this fine institution, to deliver on the vision of a Golden Bengal through your individual and collective efforts," said Lamy.

News Source:
Financial Times

British-Bangladeshi

April 7th, 2012, 03:50 AM

Next budget to be 17pc bigger
It's not ambitious target, says Muhith; economists for proper aid utilisation, streamlining taxation.

The national budget of 2012-13 will be about 17 percent bigger than the current one, Finance Minister AMA Muhith said yesterday.

The next fiscal year's allocation will be nearly Tk 1,90,000 crore, up from Tk 1,63,000 crore budget of this fiscal year, he said.

The minister also said his target is to keep the budget deficit below 5 percent in the upcoming FY.

“The Tk 1,90,000 crore budget is not an ambitious one,” Muhith said while briefing journalists after a pre-budget meeting with economists at the state guesthouse Padma in Dhaka.

“The next budget should be more than Tk 2,00,000 crore to provide citizens with the necessary facilities.”

In the next budget, he said, the government will mainly focus on institutional reforms and productivity of the investment. The government will seek to increase income from non-NBR (National Board of Revenue) revenue sources to meet its expenditure.

The minister said economists at the meeting suggested proper utilisation of foreign aids so that economy gets the proper boost.

A group of economists belonging to different think tanks also suggested the minister fix a minimum tax for Tax Identification Number holders as many of the TIN owners evade taxes.

Muhith said currently the number of TIN holders could be around 50 lakh, but only 8 lakh people pay taxes regularly. Many eligible persons dodge taxes by using loopholes in the TIN system.

He said the economists did not discuss anything on black money in the meeting. But they recommended formulating a coal policy and rationalising subsidies in sectors like education, food and export.

The economists suggested the minister devise a unified subsidy policy as the government does not have specific estimate of subsidies that make a big dent in its yearly spending.

At the meet, they also spoke for strengthening foreign trades, which generate 60 percent income of the country.

The experts stressed the need for education reforms through bringing changes in curricula and teaching methods, the finance minister said.

He added in the next budget the government will lay emphasis on housing for the low-income people and introducing a viable transport system.

Muhith also said the economists suggested rationalising the property taxes as the prices of land increased manifold over the last few decades.

As an example, Muhith said, many people bought a piece of land at the capital's posh area at Tk 20,000 years ago, but they are paying the property tax at the earlier rate, although land prices have already crossed crores.

“So, we have a plan to rationalise the wealth tax in the next budget.”

When his attention was drawn to giving licence to new banks, Muhith said the government did not issue any licence to any new bank yet, although the central bank has already recommended three.

“Bangladesh Bank suggests a lot to the finance ministry, but all suggestions are not considered. A total of 49 applications were submitted to the finance ministry for new banks,” he said.

Economists from different organisations including Policy Research Institute, Bangladesh Institute of Development Studies and Bangladesh Economic Association attended the meeting.

News Source:
Daily Star

British-Bangladeshi

April 10th, 2012, 02:29 AM

New logistics company gets off the ground next week

A new logistics service provider -- Nippon Express Bangladesh Ltd -- will start operations in the country next week.

The company, a joint venture initiative of a Japan-based logistic giant Nippon Express Co and a Bangladeshi company Golden Harvest logistic Ltd, will come into operation on April 17.

The Bangladesh unit of Nippon aims to accomplish the work related to transportation and storage of exportable and imported goods of Bangladesh, said Rezaul Alam, chief operating officer of the company.

The Dhaka-based company has an initial paid-up capital of Tk 10 crore that will be increased up to Tk 100 crore in the next five years, said Alam.

The country exported goods worth $16 billion and settled import payments to the tune of $21.7 billion during the July-Feb period in current fiscal year, according to Bangladesh Bank data.

Both exports and imports registered a growth of around 14 percent from the same period last year, according to the central bank data.

Local and international logistic service providers now flock to Bangladesh market to grab the growing export and import activities.

“We will provide tailor-made services to the export and import-oriented organisations of the country,” said Alam.

He said his company will offer the entire logistic services relating to in-bound and out-bound activities of goods.

The export and import-oriented ogranisnations will get entire logistic services from Nippon Express Bangladesh as it has integrated all key activities such as transporting, custom brokering, packaging and shipping into one umbrella.

Alam said his company can help businesses save upto 40 percent of logistics costs. “We will work like a full-fledged logistic department of our client organisaions, helping the client save its costs of operating separate logistics department.”

It will help the client organisaton get relief from handling shipping and logistics activities, he said. "The client will be able to give more emphasis on its key functions such as product development and marketing activities."

Initially, the joint venture company will start its operation with a 30,000 square feet warehouse in Gazipur owned by Golden Harvest Logistic Ltd and expand the existing capacity to 100,000 square feet this year, said Alam.

The company also plans to set up more warehouses in the strategic points of the country, including Chittagong, Dhaka, Mongla port and export processing zones, in the next three years and generate a turnover worth $100 million each month.

Two ports of the country handle around 10 lakh TEUs (twenty-foot equivalent units) of containers every year on an average, said Alam.

He said the annual market size of the logistic business is estimated at $2 billion in the country, which is growing annually at 15 percent.

The company plans to hire 50 local people this year and 200 people in the next year to run its operations, he said.

Nippon Express Co, Japan's largest international freight forwarder, has over 400 warehouses worldwide and it offers tailor-made services to best suit its clients' everyday needs.

News Source:
The Daily Star

British-Bangladeshi

April 11th, 2012, 01:13 AM

ECNEC approves 8 dev projects involving Tk 9,393 cr

The Executive Committee of the National Economic Council (ECNEC) on Tuesday approved eight development projects, including three big ones in the power sector to boost power generation, with a total outlay of Tk 9,393 crore.

The approval came from the ECNEC meeting held at NEC conference room in the city's Sher-E-Bangla Nagar area today (Tuesday) with ECNEC chairperson and Prime Minister Sheikh Hasina in the chair.

“Of the total costs of the projects, Tk 6,193 crore will come from the government exchequer while the rest Tk 3,200 crore in project assistance,” said acting Planning Division Secretary Bhuiyan Shafiqul Islam while briefing reporters after the meeting.

Among the three power projects, the government is setting up a 335 MW power plant at Siddhirganj and a 225 MW power plant in Bhola. Besides, the 150 MW Sirajganj peaking power plant will be upgraded to a 225 MW combined cycle power plant.

The 'Construction of Siddhirganj 335 MW combined cycle power plant (1st revised)' project that will cost Tk 4,239 crore aims at meeting the growing demand of electricity in Dhaka and adjoining areas through production of power locally.

Electricity Generation Company of Bangladesh Ltd (EGCBL) will implement the project during the period January 2009-June 2015.

It is expected that the World Bank (WB) will provide Tk 1,820 crore for the project. If the World Bank fund is not available then the project will be implemented by the GoB fund or through PPP.

The power plant under the project 'Construction of Bhola 225 MW combined cycle power plant' will be set up in Borhanuddin upazilla of Bhola district at a cost of Tk 2,060 crore. Of the total project cost, Tk 1,378 crore will come from the Islamic Development Bank (IDB).

Under the project, the Borhanuddin-Patuakhali or the Borhanuddin-Barisal transmission network will be developed through a 132/230 KV transmission line with electricity coverage from the proposed plant.

The power plant will consume fuel from Bhola's Shahbajpur gas field. A feasibility study has already been completed with technical assistance from IDA to pave the way for implementing the project.

Under a project, titled `Upgradation of Sirajgonj 150 MW Peaking Power Plant to 225 MW Combined Cycle Power Plant’ with an estimated cost of Tk 679 crore, an additional 75 MW of electricity will be produced from the plant without using any additional fuel.

The ECNEC approved another project, titled `Construction of long bridges/culverts at upazilla and union roads’, for a massive development of road connection network at the village, union and upazilla level all over the country. Local Government Division will implement the project at a cost of Tk 1,406 crore.

The other projects approved in the meeting are: Protection of the right bank of the river Jamuna in Bogra district (TK 214 crore, GoB); Sylhet central jail construction project (Tk 198 crore, GoB); BMR of Carew & Co. (BD) Ltd (Tk 47 crore, GoB), and Development of Cox's Bazar airport (1st revised) project (Tk 550 crore, GoB)

ECNEC members including Finance Minister AMA Muhith, Planning Minister AK Khandker, Agriculture Minister Matia Chowdhury, Shipping Minister Shahjhan Khan, Advisers to the Prime Minister, Members of the Planning Commission, Secretaries and officials concerned were present in the meeting.

News Source:
UNB

British-Bangladeshi

April 11th, 2012, 01:15 AM

Budget to eye 7.3 pc GDP growth

Finance Minister AMA Muhith on Tuesday said the size of the next national budget would be around Tk 1.89 lakh crore eyeing a GDP growth of 7.3 percent prioritising agriculture, rural development, power and energy, and human resource development.

“The next national budget will be more strategic rather than financial,” he said while addressing a pre-budget meeting with economists at the Finance Ministry’s conference room.

He said the next budget would also target to contain the inflation rate within single digit from the existing double digit of over 10 percent.

The Finance Minister said special emphasis would be given on skill development and speeding up efforts for land digitisation in the upcoming budget alongside enhancing coordination among ministers to expedite implementation process of the Annual Development Programme (ADP).

Former Bangladesh Bank Governor Dr Farashuddin, CPD distinguished fellow Dr Debapriya Bhattachariya, executive director Prof Mustafizur Rahman, Prof Jamilur Reza Chowdhury, former caretaker government adviser M Hafizuddin Khan, Agrani Bank Ltd Chairman Bazlul Haque Khondker and Mamun Rashid, among others, attended the meeting.

On the domestic resource mobilisation, the Finance Minister observed there was not much progress in non-NBR revenue collection. We’ll have quite a quantum jump next year because we’ve already taken a number of steps to review the existing rates and charges.”

He said there might be some unpleasant decisions, but some of them would come in the next budget for fiscal year 2012-13.

Referring to the economists’ concern on reduction in national savings, Muhith said he was not disturbed with the issue as the country had ideal savings for quite some time. “This is rather moving towards a balanced situation,” he added.

Admitting that the project preparation process of the government is extremely week, the Finance Minister stressed the need for making improvement in this regard although it would be tough.

The country also lacks capacity in evaluation and forecasting the economy, he said adding that the planning process has changed. “It has turned into an indicative planning rather than investment planning.”

The economists present at the meeting suggested the government to go for more domestic resource mobilisation, emphasis on aid utilisation, depending less on bank borrowing, export diversification, giving emphasis on containing inflation, rationalising the bank interest rates.

Taking part in the discussion, economist Debapriya Bhattacharya said maintaining the balance between expectation and ability will be the main challenge for the government in the next budget. “The Finance Ministry should not give more emphasis on such political issues that could affect macroeconomic stability,” he added.

He said most of the macroeconomic indicators have deteriorated and the government should not overemphasise implementing political pledges.

Former adviser to caretaker government M Hafizuddin Khan said foreign aid utilisation must be given priority and suggested increased monitoring and evaluation of project implementation.

Former central bank governor Dr Farashuddin said borrowing from the banking system, especially from the central bank, is very dangerous for the overall economy as it is high-powered money.

He suggested taking measures for the diversification of export products. He also suggested withdrawing five percent tax on pension scheme because there is no such tax in other countries.

Renowned educationist Prof Jamilur Reza Chowdhury gave emphasis on materialising the goals of digital Bangladesh, strengthening the PPP policy, forming accreditation council for private universities, giving more effective the government e-procurement system and taking fast steps towards MRT.

CPD executive director Prof Mustafizur Rahman said with the current GDP growth of 6.7 percent and the rate of inflation hovering around 10 percent, the national budget for the next fiscal could be increased to 17 to 18 percent.

He also said expenditures on subsidies must be streamlined for reaching their benefits to the people, adjusting government subsidies in different sectors.

Prof Mustafiz also suggested preparing a coal policy as the country’s power consumption would reach 40, 000-megawatt (MW) by 2020.

Banker Mamun Rashid laid emphasis on streamlining the subsidies for Power Development Board (PDB) and Bangladesh Petroleum Corporation (BPC). He suggested formation of Coal Corporation for proper utilisation of coal for power generation.

Bangladesh Bank Governor Dr Atiur Rahman, Finance Division Secretary Dr Mohammad Tareque, NBR Chairman Dr Nasiruddin Ahmed and IMED Secretary Mozammel Haque were present.

News Source:
UNB

British-Bangladeshi

April 11th, 2012, 06:23 PM

Next budget at Tk 1.89 trillion

Finance minister AMA Muhith on Tuesday said the size of the budget for next fiscal year will be Tk 1.89 trillion with a projected growth of the gross domestic product at 7.3 per cent.

‘We will also try to keep rate of inflation below double digit in the next fiscal,’ he said at a pre-budget meeting with the economists and the former government officials at his office.

The rate of inflation in the first eight months of the current fiscal is, however, prevailing over the double digit, he added.

The government had projected the annual rate of inflation at 7.5 per cent in the outgoing fiscal year.

The finance minister said the government will emphasis more on strategies than finance to prepare and implement the next budget which will be the penultimate one for the present government’s five-year tenure.
The finance minister said agricultural get top priority in the budget.

Besides, focus on human resources development along with electricity and fuels oils, will be increased, he added.

The finance minister admitted that digitalisation in different areas, especially in the land sector, has not been implemented as per commitment and expectation.

He said special attention would be given to the land digitalisation project in the coming budget.

Economists and former government officials urged the finance minister not to rely on bank borrowings, especially from the Bangladesh Bank, to implement the budget.

They demanded withdrawal of taxes on saving certificates.

Former caretaker government adviser Hafizuddin, former Bangladesh Bank governor Farashuddin, Sonali Bank chairman Bahauddin, former finance secretary Siddiqur Rahman, Professor Jamilur Reza Chowdhury, former banker Mamun Rashid and Centre for Policy Dialogue executive director Mustafizur Rahman and its distinguished fellow Debapriya Bhattacharya took part in the discussion.

They suggested that the government should maintain macro-economic stability and formulate a coal policy immediately for future energy security.

Most of them argued that the government should be articulate in making projections on the economic indicators and increase capacity in execution of the annual development programme.

Hafizuddin said 5 per cent tax on saving certificates is illogical and rare in the world. He also stressed on performance audit to ensure proper execution of the ADP and allocation for higher education.
Farashuddin said borrowing from the central bank is suicidal which only pushes up inflation.

Bahauddin said monitoring of prices of essential commodities should be enhanced to save people from the clutch of ‘profit mongering’ traders.

Siddiqur Rahman said the government should bust illegal money holders who were not utilising fiscal incentives to legalise their black money.

Mustafizur Rahman said a new mechanism should be developed to check ‘transfer of pricing’ which forced the government to incur losses to the tune of $1.8 billion annually.

Debapriya Bhattacharya said the government is facing challenges including maintaining budgetary discipline, GDP growth and investment.

Jamilur Reaza said there is a lot of hue and cry with digitalisation which became a lackluster. He said accreditation council should be established to prevent certificate selling business by the private universities.

News Source:
New Age

British-Bangladeshi

April 11th, 2012, 06:29 PM

GDP growth to dip to 6.2pc: ADB
“Inflation to rise rapidly”

Star Online ReportThe country’s GDP growth will slide by 0.5 percent to dip to 6.2 in the current fiscal year due to weak export sector, the major source of growth, Asian Development Bank estimates.

Inflation will rise rapidly in current fiscal year, the ADB also forecast Wednesday when it revealed the ‘Asian Development Outlook 2012’.

The GDP growth was 6.7 in the last fiscal year.

“Fiscal year 2012 growth will slow down in export, the country’s main driver, as the year progress,” Teresa Kho, ADB country director to Bangladesh, said while releasing the ADB’s flagship publication at ADB office in the city.

The ADB country director suggested that the inflation need to be controlled through closer coordination among monetary, fiscal and exchanges policies.

Subsidy has to be rationalised to reduce pressure on budget, Kho said.

The World Bank earlier forecast that Bangladesh's GDP growth will slow down in the current fiscal year and stand at 6 percent against the government's target at 7 percent.

The 7 percent growth target, projected by the government in June after the placement of the 2010-2011 budget in the parliament, had consideration of the prospects and potential risks in the context of global and domestic economic perspectives.

The Bangladesh government also forecast an 8 percent growth for 2014-2015 fiscal.

However, like the ADB, the International Monetary Fund also doubted the government projection and estimated the growth at 6.3 percent.

The Asian Development Outlook 2012, which includes analysis of 45 economies including China and India, provides a comprehensive analysis of macroeconomic issues in developing Asia, with growth projections by country and region.

The ADO special theme chapter, “Confronting Rising Inequality in Asia,” explores ways that policymakers in the region can tackle the problem of widening inequality.

News Source:
The Daily Star

British-Bangladeshi

April 12th, 2012, 05:18 PM

Finally Bangladesh gets $987m loan from IMF

Executive board of the International Monetary Fund (IMF) on Thursday approved a three-year arrangement for Bangladesh under the Extended Credit Facility (ECF) in a total amount equivalent to SDR 639.96 million (about US$987 million).

The Board’s decision will immediately enable the initial disbursement of an amount equivalent to SDR 91.423 million (about US$141 million).

The ECF arrangement is designed to support the authorities’ program, which aims to restore macroeconomic stability, strengthen the external position, and engender higher, more inclusive growth.

Bangladesh has been negotiating with IMF for over a year to get the loan under the ECF arrangement to cope with the on-going balance of payments problem that stood at negative $978 million in Jul-Nov period of the current fiscal.

It was negative $584 million at the same period of the last fiscal.

Even after a series of power price hikes as prescribed by it, the IMF sounded far from happy over the pace of such action.

"Prolonged delays in adjusting fuel, electricity, and fertilizer prices and unanticipated increases in import-related costs could exert additional pressure on the fiscal and external positions," the IMF said.

The ECF arrangement is designed to helping efforts to "restore macroeconomic stability, strengthen the external position, and engender higher, more inclusive growth".

After the board's discussion of Bangladesh, Naoyuki Shinohara, Deputy Managing Director and acting Chair, said: "Macroeconomic pressures have intensified in Bangladesh since late 2010 due to a negative terms-of-trade shock, rising oil and infrastructure-related imports, and accommodative policies."

"During the programme period," the IMF statement said, "Bangladesh is committed to taking actions to create fiscal space, reinvigorate the financial sector, and catalyse additional resources, in order to boost social- and development-related spending, tackle power shortages and the infrastructure deficit, and stimulate export-oriented investment and job growth.

"Bangladesh will undertake reform programmes in four major areas to ensure macroeconomic stability, external viability, and sustained growth.

"The reform areas are fiscal policy, monetary and exchange rate policy, financial sector and trade and investment."

Bangladesh, according to the IMF, has been facing macroeconomic pressures over the past 18 months when balance of payments went into a deficit in the last fiscal and reserves declined significantly owing mainly to increased demand for oil imports.

The IMF projected that GDP growth is expected to slow to 5.5 percent in the current fiscal.

"Fiscal strains have emerged due to rising subsidy costs, mainly on account of higher fuel consumption while headline inflation, while moderating recently, remains at an elevated level, with nonfood inflation the main driver."

It, however, said the near- to medium-term outlook "hinges on timely progress on policy adjustments and structural reforms envisaged under the government's programme".

"Inflation is expected to decline to single digits by end 2012 through appropriately restrained fiscal and monetary policies and, over time, by a further easing of supply constraints."

"The overall BOP is projected to return to a surplus in FY13 through a combination of policy tightening measures, exchange rate flexibility, and more supportive global conditions.

"Reserves are programmed to rise, reaching nearly three months of import cover by FY15.

While the delays in "adjusting" the utility prices and "unanticipated increases in import costs" put pressure on the fiscal and external positions, the IMF sees better days ahead.

"Bangladesh's medium-term prospects are broadly favorable, but still subject to risks. Policy buffers are limited in the event of adverse real shocks, given heightened inflation and reserve losses," it said.

Adjustments and reforms also require strengthened implementation capacity, it added.

After the board's discussion of Bangladesh, Naoyuki Shinohara, Deputy Managing Director and acting Chair, said: "Macroeconomic pressures have intensified in Bangladesh since late 2010 due to a negative terms-of-trade shock, rising oil and infrastructure-related imports, and accommodative policies."

He said more recently, a weakening in external demand and a surge in oil prices have further weakened Bangladesh's balance of payments and added to fiscal and inflationary pressures.

Bangladesh is focusing on policy adjustments and structural reforms aimed at restoring macroeconomic stability, strengthening the external position, and promoting higher, more inclusive growth.

"The authorities are committed to these objectives and stand ready to take additional measures, as appropriate, to ensure the success of the programme."

Bangladesh earlier took US$590 million under poverty reduction growth facility approved in 2003

News Source:
The Daily Star

British-Bangladeshi

April 19th, 2012, 03:55 PM

Bangladesh's Rising Income Potential

Bangladesh is poised to follow China and India's recent growth pattern of rising per capita income as the recent distribution of economic growth has shifted in favor of low and middle income countries.

Bangladesh's estimate of economic growth is predicated upon its impressive growth performance of per capita income averaging 5-7.5 percent over the last decade, and expectation of continued positive economic performance. Moreover, it was able to reduce its population growth rate from 2.7 percent in 1970 to 1.58 percent in 2012, which will contribute to its population control and a steady rise of per capita income.

In addition, Bangladesh has a good prognosis to achieve the United Nation's Millennium Development Goals as they have reduced poverty below 40 percent, gained gender equality, enhanced education levels, maintained relative political stability over the last 20 years, and shifted their economy from agriculture in favor of industrial technology and communication including capturing employment in the "international outsourcing labor market."

Bangladesh's reform movement is of recent origin. It started in 1990 through sound macroeconomic policies, investment in education, drawing upon communication technology and maintaining relative political stability. The history of Bangladesh is linked to the departure of colonial British India in 1947 when India was initially dissected into three countries: East Bengal, India and Pakistan. Then East Bengal was amalgamated with Pakistan and became East Pakistan. However, due to cultural dissonance, East Pakistan seceded and formed Bangladesh in 1971 after nine months of bloody struggle for independence. It took Bangladesh an additional two decades to recover from the devastation and brutality of the war and reach a state of normalcy and stability. Currently Bangladesh has two major political parties, namely Awami League and BNP (Bangladesh Nationalist Party) that have been ruling alternatively during the past 20 years. A system of a neutral Caretaker Government has been responsible for administering elections for the past 15 years. Though this process has been abolished, the system has contributed to peaceful transition of political power and should be re-instated and continued.

Prospects for continued economic development look very promising, especially if Bangladesh begins development and reconstruction projects, including disaster preparedness necessary for incessant monsoons, instituting building codes for earthquake safety, fortifying waterways, and building infrastructure of road and cities. As a largely delta region with many rivers and one border of coastal land on the Bay of Bengal, waterways play a significant role in the economy.

During British rule many of the waterways were fortified and flooding damages were minimized through dams and barrages, which were not kept up in the interim period. The construction of this infrastructure will contribute to significant growth of employment in the economy and such projects will enhance installation of hydroelectricity generators, which will provide substantial renewable energy. Improving infrastructure is crucial also to creating a positive foreign and domestic investment climate to mitigate the weather-related economic risk.

Relations of Bangladesh with India will have a major bearing upon the prospects of Bangladesh to join the "rich club" along with India and China.

There are disputes between Bangladesh and India over unresolved water ways. Bangladesh has filed a legal action with the International Court of Justice to determine the maritime boundary regarding the rights in Teesta River, the fourth largest in the country. These disputes need to be resolved fairly either through the court system or bi-lateral negotiation. The resolution of these disputes will free Bangladesh to explore its natural resources of gas and oil within its water territories.

Moreover, India blocks a majority of Bangladesh's exports to India via excessive imposition of tariffs. Indeed the two nations must reach trade agreement that will be mutually beneficial and resolve the water way disputes expeditiously.

Nake M. Kamrany is a Professor of Economics at the University of Southern California. Jessica Stauffer and Faiyaz Azim are both students of Economics at the University of Southern California.

News Source:
www.huffingtonpost.com

British-Bangladeshi

April 19th, 2012, 04:00 PM

5 economic zones to be set up to promote industrialisation

The decision was taken at the first meeting of the Governing Board of Bangladesh Economic Zone Authority (BEZA) held at the Prime Minister’s Office on Wednesday with Prime Minister Sheikh Hasina in the chair.

The economic zones are- Gohira in Anwara upazila and Mirsarai of Chittagong district, Sherpur in Moulvibazar district, Bangabandhu Bridge adjacent areas in Sirajganj district and Mongla in Bagerhat district.

Briefing reporters after the meeting, PM’s press secretary Abul Kalam Azad said that five economic zones will initially be set up in five areas of the country as part of the government’s plan to set up economic zones in all the seven divisions. More economic zones would also be set up in other areas in the future.

The meeting also approved the Operational Rules 2012 of BEZA and Service Rules for its officials and employees.

It discussed various agendas elaborately and the Prime Minister gave some suggestions in this regard.

The aims of the economic zones are to expedite massive economic development in remote areas, alleviate poverty, set up agro-based industries and food processing plants for increasing the country’s export basket and generating employment opportunities.

Prime Minister Sheikh Hasina directed the authorities concerned to be careful about maintaining the environment of the areas as well to try to minimize the losses of the local people in establishing such economic zones.

She also asked them to simplify the regulations and policies for the foreign investment in these economic zones as well as ensuring health, education and civic amenities for people.

Finance Minister AMA Muhith, Agriculture Minister Matia Chowdhury, Land Minister Rezaul Karim Hira, Industries Minister Dilip Barua, Communications Minister Obaidul Quader, ICT Minister Syed Abul Hossain, Forests and Environment Minister Dr. Hasan Mahmood, PM’s Advisers HT Imam, Dr Mashiur Rahman, State Minister for Power Brig Gen (retd) Enamul Haque, State Minister for Science and Technology Architect Yeafesh Osman, Bangladesh Bank Governor Dr. Atiur Rahman, BEZA executive chairman M Mosharraf Hossain Bhuiyan and other concerned secretaries attended the meeting.

News Source:
UNB

mirzazeehan

April 19th, 2012, 11:05 PM

British-Bangladeshi

April 20th, 2012, 05:13 PM

Same here. :cheers:

British-Bangladeshi

April 23rd, 2012, 05:53 PM

Preparing for the new Bangladesh

What makes some countries rich and others poor? How can one tell when a nation is poised for economic development and prosperity? In the scheme of things, there are a few more important questions worth answering.

The “Father of Economics” Adam Smith observed quite rightly over 200 years ago that “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.”

Of course, Adam Smith was a supreme believer in the natural industry of mankind, but once a country begins on the road to prosperity, history shows that it is very difficult to divert that path. By almost any measure, Bangladesh is now on that path. Of course, in our hectic, stressful daily lives it is not always easy to recognise the long-term trends that are unfolding under the surface. The media is usually full of stories of countless social problems such as crime, corruption and congestion and the personal anecdotes we hear are often similarly depressing. Thus it will always be; it was the same during the economic development of every country from America to Korea to Brazil.

TRAFFIC IS ACTUALLY GOOD NEWS

For instance, let us consider Dhaka's notorious traffic congestion. That is actually good economic news because it reflects rising incomes. The first thing people do when their incomes rise is to buy consumer goods and cars, but it takes nation years to build the required transport infrastructure. All the world's great cities have suffered this problem. Truly bad news is no traffic problem as that reflects stagnant incomes.

“THE RULE OF 70”

One of the most powerful forces in nature is compounding growth or “the exponential function”. When something is growing at 10 percent per year, that means it will double in size in seven years (70 divided by 10 percent = seven). If something grows at 2 percent, it will take 35 years to double (70/2), and so on. Bangladesh's economy is growing at a rate of nearly 7 percent which means the total value of goods and services this nation produces is set to double from current levels in just 10 years by 2022. This is a similar rate seen across many developing nations over the past several years and the economic and social change is transformational. And, all this occurs as we are stuck in traffic worrying about the latest personal or social problems.

POWER OF THE MIDDLE CLASS

History also shows us that as the middle class expands, corruption necessarily declines because, unlike the very rich and the many poor, a middle class of merchants and entrepreneurs cannot -- and will not -- tolerate corruption.

THE NEW BANGLADESH -- AN EMERGING ASIAN TIGER

For years, many Bangladeshis have wanted to emigrate to the West. But the West now looks to have entered a sustained “post growth world”. The West may still be a pleasant place to live, but South Asia is now where all the action and opportunity lays. The secret in business is always to be where the growth is. Although it may not always feel like it, Bangladesh is the right place -- and now is the right time. Indeed, increasingly the new recommendation must be “Go East, young man!”

William Westgate, an economist and director of London Training Services, lectures at Regent College in Gulshan, Dhaka. He can be reached at wwestgate@gmail.com.

British-Bangladeshi

April 23rd, 2012, 05:58 PM

Earning from leather products export rises 41pc in July-March period

Leather products export has recorded a significant increase of 41.53 percent during July-March period of current financial year fetching US$59.26 million compared to US$ 41.87 million during the corresponding period of last fiscal.

Export Promotion Bureau (EPB) officials said that the diversification of leather products has enabled the sector to achieve export growth.

Exporters and manufacturers have hoped that they would be able to ship goods exceeding the target set for the current financial year.

Bangladesh has exported leather goods worth $59.26 million within the first nine months against the annual target of $77.59 million.

Trunks, suit-cases, handbags, shopping bags, belts, musical instrument cases, traveling bags, rucksacks, map-cases, cutlery cases & other conventional and non-conventional items were exported to different destinations across the globe.

Exporters said that lower cost and international standard has attracted the international buyers to import from Bangladesh.

"Buyers of leather goods are increasingly shifting to Bangladesh from countries like China and Vietnam, as we can ensure international standard, designs and competitive price," former president of Bangladesh Tannery Association (BTA) Mohammad Shahin told the FE

Besides, quality of our domestic leather is very attractive, which is also another reason of increasing demands of our products in the international market," Shahin added.

He also said that the buyers have so far been doing business with China. But now they are gradually shifting their orders to Bangladesh.

Deputy General Manager (DGM) of Dhaka Hide and Skin Ltd, Mohammad Rezaul Karim said, "If the increasing trend of buying orders continues, Bangladesh would not need to export finished leather within a short period of time.

"We are very optimistic that the country would need to import finished or raw hides in near future rather than exporting it as the export of the countries value added products of leather goods have been increasing," he added.

He also said that most of the leather and leather goods manufacturers are now trying to create new markets across the globe to reduce reliance on some conventional markets.

Italy, New Zealand, Poland, UK, Belgium, France, Germany, the USA, Canada, Spain are the main importing countries of Bangladeshi leather products.

Besides, India, Nepal, Australia and some other countries are emerging as potential importing nations of Bangladeshi leather goods.

News Source:
Financial Express

British-Bangladeshi

April 23rd, 2012, 06:00 PM

Frozen food exporters off to Brussels

A 25-member Bangladesh frozen food exporters team left Dhaka for Brussels Sunday to take part in the European Seafood Exposition 2012 which is a big event for seafood exporters and importers across the globe, officials said.

"The local frozen food exporters annually exports around 52 per cent of shrimp to the countries of European Union and among these around 40 per cent orders are finalised in the European Seafood Exposition," Bangladesh Frozen Foods Exporters Association (BFFEA) acting president Sheikh Md Abdul Baki told the FE.

He said: "Though the European Union countries are not free from the effect of economic recession, we are hopeful that we will get a satisfactory number of shrimp export orders at the seafood exposition."

BFFEA sources said, the country's frozen food exporters exported around 28,000 tonnes to 30,000 tonnes of black tiger and fresh water shrimp worth US$270 million to EU countries in fiscal year 2010-11.

Mr Baki said: "It is the biggest get together for the sea food exporters and importers. The local frozen food exporters will have the opportunity to know about the latest technology of seafood processing."

He said: the local frozen food exporters will have the opportunity to negotiate with the representatives of EU Food and Veterinary Office (FVO), Sea Food Importers and Processors Alliance (SIPA), INFOFISH as well as attend seminars on the sidelines of the seafood exposition.

The delegation will attend the European Seafood Exposition to be held on April 24 to April 26. Bangladesh Frozen Foods Exporters Association (BFFEA) President Kazi Shahnewaz is leading the 25-member delegation of Bangladesh frozen food exporters.

Besides the exporters, a 10-member trade delegation headed by member of parliamentary standing committee for commerce ministry Zainul Abedin will also take part in the exposition.

Exhibitors across the world will display seafood products including fresh, canned, frozen, and value-added seafood; storage, processing, and handling equipment; and a host of seafood-related services including freight-handling, insurance, and information technology.

News Source:
Financial Express

British-Bangladeshi

April 23rd, 2012, 06:02 PM

Flower export exceeds target

Export of cut flower and foliage has exceeded the target by over 10 per cent as entrepreneurs found it to be an emerging industry of high potentials that widens the export basket, officials said Sunday, reports BSS.

"Export of flowers and floral products has seen an impressive growth over the years contributing to the GDP (gross domestic product) as the entrepreneurs are trying to tap a strong demand for the non-conventional product in global market," an Export Promotion Bureau (EPB) official told the news agency.

He said the country exported cut flowers and foliage worth $35.02 million during July - March 2011-12 financial year an amount which was 10.6 per cent more that the export target.

Bangladesh exports flowers and floral products to India, Pakistan, Italy, Portugal, Saudi Arabia, The United States, South Korea, the Philippines, Singapore, Japan, Germany, Britain, Denmark and France.

"Around 10,000 hectares of land are under flower cultivation in our country," Bangladesh Flower Growers and Exporters Association (BFA) President M Ahsanullah said adding that Jessore is the region which accounts for the maximum volume of flower cultivation.

Tube rose, rose, orchid and marry gold are among the major flowers that make up Bangladesh's floral basket for exports.

Most of the tuberose and rose supplies come from Jhikargachha of Jessore and Savar of Dhaka, marry gold from Chuadanga and orchid from Mymensingh and Manikganj.

Horticulture experts said Bangladesh is highly suitable for cut flower and foliage production due to its favourable climatic, topography and other conditions like labour cost and relatively low capital investment in contrast with high value addition.

Dhaka Flower Merchant Welfare Association (DFMWA) leaders said appropriate training for the people involved in flower production, cutting, packaging and preservation and marketing could boost the industry provided cold storage, air conditioned vehicles for flower transports and subsidy in air cargo freight charges were provided.

"There is no slab system in Biman for flowers and ornamental plants though it is available for vegetables . . . sometimes flowers are damaged before reaching destination as Biman often does not maintain its proper flight schedule," a BFA official said.

Kenya, Israel, Zimbabwe, Ecuador, Uganda appeared as major flower exporting countries as the cut flower trade is a multibillion dollar world industry with the United States, Germany, the Netherlands, the United Kingdom, Switzerland, Italy, France, and Japan being major world consumers.

News Source:
Financial Express

dd2402

April 24th, 2012, 02:30 PM

http://www.nytimes.com/2012/04/24/business/global/in-bangladesh-strong-promise-of-economic-growth.html?_r=1

An article about Bangladesh on the NY times :)

mirzazeehan

April 24th, 2012, 06:59 PM

^^cheers!

British-Bangladeshi

April 25th, 2012, 05:36 PM

^^
Thanx for the article bro.

mirzazeehan

April 25th, 2012, 09:46 PM

First the Economist of London Training Services,then the Profressor of University of Southern California,and now New York Times!!!!
Bangladesh's booming economy is surely getting noticed now.....our economy is starting to make "News!" around the world!:banana:

TIslam

April 26th, 2012, 02:34 AM

King Nothing

April 26th, 2012, 03:39 AM

Bangladesh's booming economy is surely getting noticed now.....our economy is starting to make "News!" around the world!:banana:

The question is how much of this "boom" reaches the masses. Bangladesh has been growing for the last 15 years, but I feel like our family is only slightly better off. The way I see it, the people at the top reap the most benefits and then wealth slowly trickles its way down. With the people at the bottom barely benefitting at all

mirzazeehan

April 26th, 2012, 12:50 PM

The question is how much of this "boom" reaches the masses. Bangladesh has been growing for the last 15 years, but I feel like our family is only slightly better off. The way I see it, the people at the top reap the most benefits and then wealth slowly trickles its way down. With the people at the bottom barely benefitting at all

Though I dont completely disagree with you,I do think that the masses are benefitting from this significantly.For example,just 5 years ago,we could get a maid with just 1500-2000 taka,but from what I hear from my mom,they have to be paid around 3000-4000 taka now.
Same could be said about hiring a driver,a drivers salary has more than doubled in the last 5 years,and all this couldnt have been just inflation.Ofcourse i agree that the elite benefit the most from the economic growth,as in most other countries,but I feel that the trickling effect is quite significant as well.

British-Bangladeshi

April 26th, 2012, 03:13 PM

Country hopeful of boosting CBC export to Australia, NZ

Bangladesh will be able to boost export of Carpet Backing Cloth (CBC) to Australia and New Zealand as the leading businesses of those countries have planned to visit Dhaka soon following the government assurance of offering competitive price and high quality of the product, official said.

To export more jute goods including CBC to those countries, a high -powered government delegation headed by Senior Secretary of the Ministry of Textiles and Jute (MoTJ) Md Ashraful Moqbul has visited Australia and New Zealand recently.

The exports of CBC from Bangladesh to Australia and New Zealand have drastically declined due mainly to global recession and widespread use of synthetic for producing carpet by maximum companies in those countries.

The country now exports only 30 per cent of CBC to Australia and New Zealand which was 70 per cent in the past.

The Bangladesh team visited Australian cities of Sydney, Canberra and Melbourne and Auckland in New Zealand to boost CBC export.

The team held talks with the farmers' association, importers and visited different carpet producing factories there.

"We tried to motivate them (Australian and New Zealander importers) to import CBC from Bangladesh. They agreed to visit Bangladesh within the next few months following our offer of price competitiveness and high quality of CBC product," the Senior Secretary of MoTJ told the FE Wednesday.

He said that they assured the importers of Australia and New Zealand to fulfil their requirement with timely shipment of CBC.

On the other hand the importers of Australia and New Zealand had given assurances to Bangladesh delegation that they would visit Bangladesh within the next few months, he said adding they would initially give trial order to Bangladesh to supply CBC to them.

"Right now the importers of those countries (Australia and New Zealand) have agreed to give us trial order for exporting CBC by Bangladesh Jute Mills Corporation (BJMC) to them," Mr Moqbul said and added that Bangladesh would be able to export CBC with competitive price.

Asked how to increase export of jute products being produced mainly by BJMC following the squeezing of jute goods exports in some Middle East and African countries, Mr Moqbul has said there has been a golden opportunity for Bangladesh to export jute sacks to Thailand as Bangkok has decided to use jute sacks for packing rice instead of other artificial fibre sacks.

"The jute mills under BJMC have sufficient quantity of raw jute now for producing jute sacks for fulfilling the internal and external demand," he added.

A director of BJMC said that Bangladesh had exported 2,000 roles (1240 tonnes) of CBC to Australia and New Zealand worth Tk 130 million during the fiscal year (FY) 2010-11. He said that BJMC has made net profit worth Tk 190million during the FY 2010-11 since 1982.

News Source:
Financial Express

Equinox2

April 26th, 2012, 03:52 PM

Though I dont completely disagree with you,I do think that the masses are benefitting from this significantly.For example,just 5 years ago,we could get a maid with just 1500-2000 taka,but from what I hear from my mom,they have to be paid around 3000-4000 taka now.
Same could be said about hiring a driver,a drivers salary has more than doubled in the last 5 years,and all this couldnt have been just inflation.Ofcourse i agree that the elite benefit the most from the economic growth,as in most other countries,but I feel that the trickling effect is quite significant as well.
The real indicator, however, is the growing paucity of servants/domestic workers in the city due to the increasing availibility of jobs in garments factories/beauty parlours etc. which these workers tend to prefer. People are terrified to let go of their maids/drivers as they fear they won't find a suitable replacement or will have to wait ages for one. That, for me, shows that things are getting better for the people at the bottom. They have greater bargaining power and more choice when it comes to being employed.

British-Bangladeshi

April 27th, 2012, 01:55 AM

Youth: a boon for economy
Leadership Summit urges them to aspire to be global citizens

The majority of youth population in Bangladesh could be a boon for the country as young people have emerged as a major force behind economic development in many Asian countries, speakers at a discussion said yesterday.

Three out of four people in Bangladesh are below 40 years, which could impact the growth story, they said.

Bangladesh's young population should be open-minded and tolerant to new ideas, cultures and religions and also be knowledgeable and hard-working to become global citizens, they suggested.

Their comments came at the seminar on "Global citizenship: a step forward" as part of the "Youth Leadership Summit 2012" at Bangabandhu International Conference Centre in Dhaka.

Bangladesh Youth Leadership Centre (BYLC) organised the three-day event with the theme “Leading Bangladesh into the future: a journey of exploration.”

Neal Walker, United Nations resident coordinator in Bangladesh, said the youth population around the world accounts for a fifth of the world's population. "This is your world and you are going to change it."

The youth has the potential to contribute to creating a better world, Walker said. "To become a global citizen, you need to know your country first to be able to appreciate other countries."

He urged the participants to get involved in any work that gives the individual satisfaction because all jobs give dividend. "By doing so, you will learn how to get things done and get results."

He said the youth issue is one of the top five agendas of the current UN secretary general. "The UN aims to strengthen participation of the youth in decision making process."

Walker said the opinion of the youth served the key ground for the recent political and social changes in the Arab world, similar to the Language Movement and the Liberation War in Bangladesh.

The UN official said Bangladesh has been known as a land of storms, floods and typhoons. "But that is a small part of the success story of the country."

"Bangladesh is one of the few countries that are on track to achieve most of the Millennium Development Goals."

Michael Kuehner, chief executive officer of Robi Axiata Ltd, a mobile operator, said leadership is the key requisite for development, and the youth has always played a critical role in development.

He said youth is one of the biggest resources for any country to have. Unlike many other countries, Bangladesh has a lot of resources in terms of the youth. It is a good thing.

Kuehner said the youth is contributing to the economic growth in many countries to a large extent.

He said economies of the developing countries, which have a big class of youth, are growing.

Asia, for example, is growing as its youth population is energetic, hardworking and entrepreneurial, he said adding that youth should be given proper training and opportunities so that they can tap their potential.

He urged the country's growing young population to excel in English to connect themselves with the rest of the world in an effective way.

Kuehner said global citizenship faces many challenges. It is not fully covered by legal framework in most countries that are making it impossible for the youth to act globally.

Shiro Sadoshima, Japanese ambassador to Bangladesh, urged the participants to think big.

While chairing the discussion, Mahfuz Anam, editor and publisher of The Daily Star, said the youth is a huge resource for driving the country.

The country's young population has already become global citizens because of information technology and connectivity, Anam said.

Bangladesh has given so many things to the world, he said. "Nobel laureate Prof Muhammad Yunus' microcredit has been replicated in many countries. Many countries have accepted the idea as an important tool to fight poverty."

Anam urged young people to be open-minded, tolerant, knowledgeable and hard-working to become leaders.

Ejaj Ahmad, president of BYLC, also spoke at the summit, which began yesterday.

News Source:
Daily Star

mirzazeehan

April 27th, 2012, 02:01 AM

More news about "Booming Bangladesh" :cheers:

Dressed to impress
Noel Quinn

When I tell people in Hong Kong, London or New York that Bangladesh is a land of untapped business opportunities, there are usually some who’ll raise their eyebrows in incredulity or admiration. For those who haven’t visited in person, it’s a country they only know from media headlines as a place of natural calamities and social pressures as the population expands.

Fortunately, I’m finding that the sceptics and uninformed are increasingly in the minority. As the global business community focuses its attention on Asia, there’s mounting interest in Bangladesh for its skilled workforce, its thriving economy and the impressive export industry it’s built in just over 40 years.
While acknowledging that Bangladesh still has much to do to realise the government’s long-term vision, I believe the prospects here are quite bright. So does HSBC Commercial Banking, which handles over 8 percent of the country’s international trade, and which recently showed Bangladesh to be the Asia-Pacific’s second fastest-growing trade partner after Vietnam. In fact, our research indicates that Bangladesh’s regional commerce will increase by more than 9 percent annually through to 2016.

Our confidence stems from what we see on the ground, in the cities and in the export processing zones, and from our expectations that Asia will increasingly sit at the heart of the global economy. Bangladesh now ranks higher than India, Indonesia and the Philippines in the World Bank’s ‘Doing Business’ report, and it has nurtured companies producing goods for household brands including Levis, Nike, Raleigh and Sony.

Some have suggested that Bangladesh could become like Mexico, which has established itself as a low-cost manufacturing hub for its enormous neighbour to the north. In some ways the analogy is insufficient in that Bangladesh borders India and is also close to China – two economies HSBC thinks will become the world’s third-largest and largest respectively by 2050. In other ways, the analogy exaggerates because by 2050, even after a seven-fold increase, we expect China’s income per capita will only be 32 percent of that in the US.

What we know today is that Bangladesh is a competitive place to do business when benchmarked against its emerging market peers. It has clear cost advantages, and a committed young workforce that’s keen to learn. With an increasing number of international companies relying on Bangladesh for the timely delivery of quality garments, the country has a medium-term opportunity to win manufacturing investment in this vital export sector. With economic austerity in the West making consumers there more cost-conscious, companies here have an opportunity to promote sales of affordable clothing while investing to rise up the value chain.

The challenge, of course, is that Bangladeshis want to increase their earning power. They want economic diversification that will bring new job opportunities while reducing the nation’s reliance on apparel and expatriate remittances. This will require effort to build the infrastructure businesses need to capitalise on Bangladesh’s location, and it will require effort to attract new industries and the skills transfer that comes with them.

Though the garment industry is likely to provide the backbone of the economy for some time to come, it’s encouraging to see that companies making goods as diverse as camera lenses, shoes, mobile phone components and car parts have chosen to set up plants in the EPZs. Local entrepreneurs and investors from Canada to Taiwan are starting to recognise Bangladesh’s potential as a location for light engineering, shipbuilding, agro-processing, pharmaceuticals and ICT. Samsung’s recent opening of a research and development centre in Dhaka is a good case in point.

Like many local businesspeople, HSBC is watching with great interest as the governments of India and Bangladesh negotiate greater access to each other’s road, rail, sea and air transport networks. For India, a deal will improve domestic links to its north-eastern states. For Bangladesh, it could help the country become a regional centre for trade and manufacturing, a gateway to the sea for Nepal and Bhutan, and the hub of a trans-Asia highway connecting India to China and South-East Asia.

Looking eastwards, Bangladesh is positioning itself to boost trade with China as China rebalances its economy from exports to sustainable domestic demand. Last year, HSBC helped a customer in the Dhaka EPZ to buy yarn from China in Chinese Renminbi. This deal was another sign of things to come, as Bangladeshi firms seek to cement relationships with Chinese partners, cut transaction costs and hedge foreign exchange risk in what is set to be the next global currency.

Clearly, I have to be balanced in my conversations with overseas companies. Bangladesh must ensure power supplies and communications networks are robust, for example, and it must recognise the competitive strengths of neighbours such as Vietnam, Cambodia and Pakistan.

As I also tell them, however, it’s clear to me that there are few people who can match Bangladeshis for their resilience in the face of a challenge. If this country continues to reinforce its links with the developed world, while deepening relationships in the emerging markets, it has every reason to demand attention in biggest corporate boardrooms.
Noel Quinn is the head of commercial banking for HSBC Asia-Pacific and group general manager for HSBC Holdings

Source:http://www.thedailystar.net/newDesign/news-details.php?nid=227850

British-Bangladeshi

April 27th, 2012, 02:05 AM

^^
Impressive, I will sleep peacefully tonight. :cheers:

British-Bangladeshi

April 27th, 2012, 02:06 AM

Food bag exports fuel high hopes

Growing demand for food packaging products in the developed countries offers an opportunity for Bangladeshi entrepreneurs to earn millions of dollars from exports.

To tap the potential, a local entrepreneur for the first time in the country's history has started exporting food bags to the US and Canada, which are the biggest markets for the products.

“We have already secured orders of more than $6 million and have some export agreements in place for our entire production for five years. The agreements are extendable,” said Faruque Ahmed, country director of Atlas Group. Renowned global food distributors will be the buyers of the products, he said.

The group's first company, Atlas Greenpac, which started commercial production this month, is projected to export products worth $27 million in the first year. To meet the growing export demand, Atlas will set up two more factories and expects to go for production in 4/5 months.

Combined exports of these three factories are projected to be $67 million next year. Each factory will manufacture a range of food packaging products different from others.

Businesses and bankers see it as an achievement of the local entrepreneurs to enter the global fast food industry, especially in the North America, where stringent quality and consistency are the pre-requisites.

The move is a step forward towards the country's efforts to diversify exports and enlarge its non-traditional list of exportable products.

According to Datamonitor, a US-based market research agency, the US wrapping and paper packaging market generated total revenues of $39.6 billion in 2009. The European and Asia-Pacific markets were of $33.1 billion and $58.8 billion respectively in 2009.

Datamonitor forecast the US market would grow to $48.5 billion and the European and Asia-Pacific markets to $40.7 billion and $64.2 billion respectively by the end of 2014.

Data shows each family in the US and Canada uses roughly 500 bags a year. With a combined population of 350 million and 33.5 million respectively, the total market size is estimated at nearly 192 billion bags. The market is estimated to grow as people have shifted away from plastic bags.

“It is a multi-billion dollar market,” said Syed Fazle Rabbi, chairman of Atlas Group.

Like garments, cheap labour is the biggest advantage for Bangladesh, he said. A labourer is paid minimum $2,000 per month in the US or Canada.

“Strict industrial law and compliance issues in those countries increase the costs several times higher,” Rabbi said. China and India that could be Bangladesh's competitors in the food packaging industry are busy with their local markets, he added.

News Source:
Daily Star

British-Bangladeshi

April 27th, 2012, 02:10 AM

Furniture exports shine

Furniture exports grew 30.29 percent to Tk 154 crore in the nine months through March due to an increase in demand for wooden and crafted furniture in the United States, Japan and European countries, industry insiders said.

The sector earned Tk 204 crore from furniture exports in fiscal 2010-2011, up from nearly Tk 197 crore in the previous year, according to data from Bangladesh Furniture Exporters Association (BFEA).

“The main reason behind the export growth is that we have low-cost labour, which lowers our costs of production,” said KM Akhteruzzaman, chairman of Bangladesh BFEA. “So we can offer high-quality products at competitive prices.”

Moreover, there is increasing demand for hand-carved wooden furniture in the US, UAE, Saudi Arabia and Qatar. They prefer furniture designs that follow Victorian styles, hand-carved and heavy furniture, which is the dominant production style of carpenters in Bangladesh, he said.

“Our local carpenters have excelled in carving on wood, especially teak.”

Furniture is one of the most rapidly growing sectors in Bangladesh constituting approximately 85,000 enterprises and carpentry households across the country. Annual growth in terms of turnover is around 19 percent a year.

At present, the size of local furniture market stands at Tk 10,000-12,000 crore a year, according to BFEA.

The industry currently employs about 30 lakh people directly. It is one of the most labour intensive industries in Bangladesh, having a capability of absorbing even unskilled labourers.

Previously, Bangladesh only exported wooden furniture to neighbouring countries such as India and Nepal. In the last three years, the volume of furniture export, both wooden and steel, increased al lot.

Akhteruzzaman said the furniture market could be further expanded, both at home and abroad, by blending technology, skilled manpower, quality raw materials and designs.

Seventeen members of BFEA export furniture. Otobi, Akhtar, Hatil, Brothers, Partex, Navana, and Furnitec are the major players. Apart from these member companies, there are some more companies that export furniture to the neighbouring countries.

However, furniture makers and exporters now face the adverse impacts of high duties on the import of raw materials, which is holding them back from expanding the industry further.

In addition, declining sources of the local supply of wood and a lack of technical expertise are forcing the sector to play a trivial role in the national economy, said industry insiders.

“We need support from the government to take the sector to a higher level, which would help us contribute more to the economy,” said Ferdous Ahmed, managing director of Furnitec, a major player in the local market. “We now have to pay over 90 percent in duties on the import of raw materials, which ultimately increases production costs. This eventually reduces the competitiveness of our products than that of our regional competitors.”

“We often face difficulties in meeting the buyers' price targets, although our exports have grown manifold in recent years,” added Ahmed, also the secretary general of BFEA.

Industry insiders said most of the raw materials for wooden furniture, including teak and adhesive and painting products, have to be imported from Malaysia, Canada and China.

In addition, the sector also suffers from a lack of technical knowledge, which makes the sector dependent on traditional methods that consume time.

“The government should take the necessary steps to help the sector grow fast. Most small entrepreneurs suffer from a lack of capital, while the bank interest rate is still too high,” said Akhteruzzaman, also the managing director of Akhtar Furnishers Ltd.

News Source:
Daily Star

British-Bangladeshi

April 30th, 2012, 03:46 PM

A lot more to do for 7-8pc growth

Economists yesterday said Bangladesh would need to accelerate investments, productivity and reforms to achieve 7-8 percent growth.

“It's not possible to alleviate poverty, create employment and achieve the middle-income country's status without a 7-8 percent growth rate,” Dr Debapriya Bhattacharya, distinguished fellow of Centre for Policy Dialogue (CPD), told a seminar on 40 years of Bangladesh's economy and challenges.

Bangladesh Youth Leadership Centre, a leadership training institute in Bangladesh, organised the programme as part of its three-day summit --Leading Bangladesh into the future: a journey of exploration -- at Bangabandhu International Conference Centre in the capital.

Bhattacharya, who chaired the session, also said structural reforms are needed to ensure inclusive growth so the marginal section of people can be brought into the mainstream of the development process.

Young minds, mostly students, who attended the session, were very inquisitive. They wanted to know about a wide range of economic issues -- from skills and entrepreneurship development to inclusive growth and potential business sectors.

They also raised questions about employment, jute industry, monetary and fiscal policies, invasion of the local market by low-cost Chinese and Indian goods, sovereign bonds and whitening of black money.

Bhattacharya said allowing black money to be whitened by the successive governments discouraged honest taxpayers.

Some relatively young economists -- Dr Fahmida Khatun, head of research at the CPD, Dr Nazneen Akhter, senior research fellow of Bangladesh Institute of Development Studies, and Dr Khandker Golam Moazzem of CPD, talked about the transformation of the Bangladesh economy.

They told the young minds how the economy of Bangladesh has shifted to services and manufacturing from traditional agriculture in the last 40 years since independence of the country and where the economy stands today.

They also shed lights on tariff liberalisation, access to the global markets and the dominance of the private sector over the Bangladesh economy.

The economists said Bangladesh grew at 4 percent during 1980s and 5 percent in the next decade. Now the economy is growing at an average of 6 percent, they said. Investments still cannot go beyond 24 percent of gross domestic product (GDP).

“But this is not enough to alleviate poverty and create adequate employment,” said Bhattacharya.

Though the services sector contributes 50 percent to the country's GDP, he questioned its quality. People are doing grocery business in a very small scale and getting self-exploited, he said.

Fahmida Khatun said higher growth is required to absorb the rising workforce.

“Our investment rate has been stuck at around 24 percent of GDP for the past several years. We need to take it to 30 percent to grow at a higher rate,” she said.

According to her, climate change and food and energy security will be the major challenges for Bangladesh in the days to come.

Nazneen Akhter said 32 lakh workforces are being added to the labour market every year and most of them remain unemployed.

“Employment opportunity in the industrial sector has to be increased to absorb the growing workforce,” she said.

But the major challenge, according to her, is skills development, which needs immediate attention.

Golam Moazzem presented a brief picture of Bangladesh's industries that expanded to apparels, frozen fish and ceramics now from jute and tea a few decades ago.

“Still the industrial sector is limited to a few products and 97 percent of the industries are small and medium enterprises,” said Moazzem.

He also criticised the trend of the businesspeople, who prefer bank loans to raising capital from the stockmarket.

News Source:
The Daily Star

British-Bangladeshi

April 30th, 2012, 03:49 PM

Mozena: Golden Bangladesh hinges on youth

Brighter days beckon Bangladesh and the youth should realise that potential, US Ambassador Dan Mozena said yesterday.

"The dream of Golden Bangladesh can be a reality within a decade or two," Mozena told a gathering of several hundred young people.

The envoy said building Bangladesh up into a middle-income country with an improved quality of life for its people will not be easy.

"The Golden Bangladesh will not just happen like that. People will have to make it happen. Those people are you," he told the youths at Bashundhara Convention Centre.

Mozena said Bangladesh is truly a blessed country. "It has a unifying culture, language and spirit," he said, praising energy, creativity and resilience of Bangladeshis.

He said Bangladesh's soil is rich and productive and it has ample water and abundant natural resources, Mozena said.

"The private sector and the entrepreneurial spirit thrive," he said and expected that Bangladesh should be the world's largest readymade garment and home textile exporter.

He also hoped Bangladesh should be a major global player in building freighters, in information technology, pharmaceuticals, finished leather goods, seafood and in finding new uses for jute.

The youths are the future and the leaders of Bangladesh, he added.

"America will be your partner in this task," he told the youths who were mostly university students. “The new challenging Bangladesh, the Golden Bangladesh, awaits your renaissance. The time is now,” he said.

Mozena said the US will open its Edward M Kennedy Center for public services and arts in collaboration with the Liberation War Museum.

Foreign Secretary Mohamed Mijarul Quayes, Cofounder and Principal of Cambridge Leadership Associates Marty Linsky and Founder and President of BYLC Ejaj Ahmad also spoke.

HILLARY CLINTON
The visit of US Secretary of State Hillary Clinton early next week will deepen bilateral ties between Bangladesh and the USA, Mozena said.

News Source:
The Daily Star

British-Bangladeshi

April 30th, 2012, 09:22 PM

Are export processing zones the new sweatshops, or drivers of development?

Giant export factories like those in Bangladesh are great for foreign firms, but the benefits for local workers are less obvious.

Where does Nike make its trainers? Or Wrangler its jeans? In the same place Raleigh make its bikes, Philip Morris makes its cigarettes, Korean companies make LED lights, and giant corporations like Walmart, Mothercare, Tesco and Reebok make practically everything from pharmaceuticals to fishing rods and baseball caps. The Chittagong export development zone (EDZ) in Bangladesh is the capital of globalisation, the plumb centre of global free trade, and the reason, it could be argued, that industrialised countries don't make much any more.

This month, I was invited to a Youngone factory, one of 17 that the giant Korean conglomerate has making clothes and shoes for the world in the Chittagong zone. That people died in riots here in 2010 – and that the factory was ransacked by Bangladeshi workers angry that the government had not increased their wages – was not mentioned. The intention was to show Bangladesh as a modern manufacturing centre.

It's certainly that. Outside the giant works, there were manicured lawns and clean streets; inside, armies of young, mainly female workers toiled silently in masks on long production lines. Together, in this one factory, the 3,500 workers make a staggering 14,000 pairs of shoes a day, or more than 5m a year. We were told not to say who the shoes were being made for, or to talk to the workers, but it's no secret this factory makes trainers and clothes for brands like Nike, North Face and Timberland.

Bangladesh is proud of its Chittagong zone, not just because its 137 factories export $1.6bn worth of goods a year, and last year invested $930m, but because it claims to have the cheapest labour in the world and there is a desperate need for foreign currency and jobs. China's minimum wage in its EPZs is $250 a month, Indonesia's $135 and Pakistan's $80. But corporates manufacturing goods in Chittagong need pay workers an average of only $48 a month, said the zone manager. That's about $1.50 a day.

Are these factories the new sweatshops, as some developments groups say? People are paid more to work in the zone than in factories beyond the gates and, from what I could see in the two works I visited, the conditions – albeit perhaps not surprisingly – looked good. But the pay rates, which are set by government and not by the companies, are terrible. An apprentice in a Chittagong EDZ factory need only be paid a meagre $20-22 a month (less than $1 a day), unskilled workers $38 a month, semi-skilled $45 and skilled workers up to $60 – all for a six-day 48-hour week. No unions or strikes are allowed, not many workers stay more than a few years, and it is understood that on average only a quarter of the workforce gets the minimum wage.

"We do not allow unions, only workers associations," said the manager. "They can discuss matters with their companies. They are happy."

Foreign businesses are treated royally. Bangladesh has a deep energy crisis, with demand massively outsripping supply, yet companies in the zone get cheap, reliable power, as well as generous 10-year tax holidays, freedom from red tape, duty-free imports, immunity from national laws, cheap labour and low rents. In Chittagong, companies pay just $2.20 monthly to rent a square metre of space, and I was told that the annual rent paid to the Bangladesh government by all the factories on the giant site was just $4m a year. So how much had Bangladesh invested in building the factories for the companies? No one could say.

Globally, there are now several thousand EDZs. But a wall plaque in the Chittagong zone says this one was set up by Robert McNamara, the legendary head of the World Bank, in 1980 and was one of – if not the – first in the world. Born in the era of structural adjustment and maximum control of economies by the bank and the International Monetary Fund (IMF), the zone could be seen as the spark that led to the blaze of globalisation and neoliberalism that has dominated global development for 30 years, accounting for the massive growth and wealth of corporations like Walmart, Tesco, Reebok, the IT sector, Philip Morris and thousands of other multinationals.

So what are these EDZs good for? Does Bangladesh benefit apart from the jobs? The World bank says they "provide a country with foreign exchange earnings by promoting non-traditional exports, create jobs and generate income as well as helping technology transfer". Their critics say they favour the export market rather than the domestic market, exploit poor countries, and allow relaxed environmental and safety standards. The organisation War on Want and local development groups argue that the wealth created has made little improvement to the lives of ordinary workers, despite the creation of millions of jobs.

John Vidal travelled with the Bangladesh government.

News Source:
The Guardian

TIslam

May 1st, 2012, 04:15 AM

Economic Analysis

This is how to run the economy

The Financial Express

May 1, 2012

M. A. Taslim

The Finance Minster (FM) often says things that surprise the economics profession. Perhaps that is only because they are paying attention to the wrong things. When the FM speaks to the local media or even to his parliamentary colleagues, he is essentially talking politics. And politics of our country has already degenerated sufficiently not to necessarily have substance. However, when the FM writes memos to the International Monetary Fund (IMF) supplicating for funds, he has to talk economics, with facts and figures to boot. Hence, if one is interested in knowing what the FM really thinks about the state of the economy, he should read the memo that he has written to the IMF in a desperate bid to have the Extended Credit Facility (ECF) fund released. We must thank the IMF that it published the memo and the attachments on its website. Otherwise the nation would have been in the dark about the full contents of the FM's communication. The IMF does some good things too!

The FM states at the beginning of the Memorandum of Economic and Financial Policies: "Macroeconomic pressures have intensified over the past 18 months resulting in heightened risks to Bangladesh's external position". He apparently now recognises the build-up of macroeconomic pressures and its balance of payments (BoP) consequences which the local economists repeatedly warned him about during the past year or so, and which he initially rejected. He also states "...fiscal pressures have also emerged, stemming mainly from rising fuel, electricity and fertilizer subsidies. In turn, domestic borrowing by the government rose sharply in the first half of fiscal year (FY) 12, straining available liquidity in the banking system and putting upward pressure on interest rates".

This confession of sorts is in sharp contrast to the government's obdurate reluctance to admit that the oil-driven rental power plants have thrown fiscal discipline out of the window and that government borrowing has crowded out the private sector. These gas-guzzling plants have increased petroleum imports by more than three billion dollars punching a big hole in the balance of payments. This was further aggravated by foreign relations' debacles that have dried up external funds. There has been very little net inflow of foreign resources during this fiscal year. A consequence of this has been the depreciation of the taka.

The onset of an economic downturn worldwide, especially in our main export markets, has considerably slowed down the growth of exports which has largely offset the effects of recessive policies of Bangladesh Bank (BB) to contain imports through aggregate demand management. Large scale government borrowing at a time of tight monetary policy has caused a liquidity crunch that has pushed the interest rate much higher than intended. Investment has taken a hit dimming the prospect of high growth and new employment.

To get out of the current predicament the government had to agree to the harsh conditionalties of the ECF. These will drag the economy further down before any improvement becomes visible, i.e. things will get worse before it becomes better. This is underscored by the IMF's forecast of a growth rate of only 5.5 per cent (later reportedly revised to 5.9 per cent) this fiscal year. This is a far cry from the FM's insistence that 7.0 per cent growth target will be achieved, but conforms to the apprehension of the local economists that it would be difficult to achieve even 6.0 per cent growth this year.

In the cleverly designed package agreed with the IMF ceilings or floors have been set on only a few variables. The government had to commit not to exceed the agreed ceilings on BB's net domestic assets, net credit to the government by the banking system, non-concessional external debt and suppliers' credit and reserve money. It also agreed to maintain net international reserves, tax revenues and social spending above the suggested floors.

These apparently innocuous conditionalities actually put restrictions on the flexibility of the government in deciding on the nature and magnitude of the current and the next budget. Taken together these essentially impose limits on the extent of government spending and borrowing, and ensure that the current tight monetary policy is continued. Hence, the government's policy space is circumscribed in an essential way. The elected government that boasts of nine-tenths majority in the parliament has effectively surrendered its flexibility to conduct national fiscal and monetary policies in a manner that will achieve the goals of its much-touted manifesto; some people from overseas will now oversee the economic policies of the sovereign government.

The impact of the conditionalities on the monetary sector is already evident from the rising interest rates and falling credit growth. Fiscal discipline will be imposed through the ceilings on net credit to the government and non-concessional foreign borrowing. Subsidies will be reduced by increasing electricity tariffs which have already increased by about 40 per cent. An automatic adjustment mechanism will be put into effect by the year-end to ensure full pass-through of international fuel prices to domestic prices. Thus the subsidy costs will be shifted to the public. Tax effort will be intensified to increase revenue. The Ministry has indicated a budget size of Tk189 billion for the next fiscal year. If the inflation rate remains at its current level, this will represents only a very small real increase over this year's budget. Fiscal policy will be, therefore, restrictive to match the restrained monetary policy.

While such imposed restrictions may seem abhorrent to some independent-minded people, the shrinking of the policy space of the government may not be an altogether bad thing. The manner in which the government has turned a fairly good economic situation (of FY 2009-2010) to its current depressing state calls its economic management credentials into question. On its own it might have pushed the economy into a crisis zone. The external intervention might help to put the economy on track. Since no one in the government or the party seems to be much concerned about being told how to run the economy, there should not be much internal resistance. The silver lining is that if these policies work, the government could claim credit in time for the next election.

(Prof M. A. Taslim is Chairman, Department of Economics, University of Dhaka.

m_ a _ taslim@yahoo. com)

http://www.thefinancialexpress-bd.com/more.php?news_id=128335&date=2012-05-01

British-Bangladeshi

May 4th, 2012, 07:55 PM

Remittance grows by 10pc in 10 months

Remittance inflow in the first 10 months of the current financial year increased by 10.41 per cent compared with that of the same period of the previous financial year.

According to data released by the central bank on Thursday, the expatriate Bangladeshis in July-April of the 2011-12 financial year sent $10.61 billion in remittance against $9.61 billion during the same period of the FY2010-11.

The BB data, however, showed the remittance inflow in April had dropped further from that of the previous month of March.

The expatriates remitted $1.08 billion in April whereas the country received worth $1.10 billion in March.

The inflow of remittance in April, however, increased by 8.01 per cent compared to that of the same month of the FY2010-11.

A BB official told New Age on Thursday that the remittance inflow had declined in April and March due mainly to decline in value of dollar against the Bangladeshi Taka.

The official said the migrant Bangladeshis had sent a record amount of foreign currency from December to February in the current financial year as the local currency had continuously declined against the US dollar.

The remittance inflow was $1.14 billion in December, $1.22 billion in January and $1.13 billion in February, showed BB data.

The rate of dollar decreased to around Tk 81.75 to Tk 81.90 in April from that of Tk 85-Tk 86 in January.

Another BB official said, ‘The country’s prevailing political instability is one of the causes for declining remittance inflow in April, as the expatriates were not encouraged to send the foreign currency.’

The clients are reluctant to go for transaction with the commercial banks during the general strikes. As a result, the expatriates did not send significant amount of remittance in the period, he said.

The private commercial banks received $727.30 million in inward remittance in April while the state-owned commercial banks received $328.49 million, foreign commercial banks $14.59 million, and specialised banks $11.90 million.

Islami Bank received the highest remittance of $295.15 million among the PCBs while Sonali Bank received the highest remittance of $114.98 million among the SCBs.

News Source:
Daily Star

British-Bangladeshi

May 4th, 2012, 07:57 PM

Export to US sees 0.95 pc growth in July-Feb

Export earnings from the USA, the largest export destination for Bangladesh goods, witnessed a 0.95 percent growth during the July-February period of the current fiscal, mostly because of the good performance of RMG and frozen shrimps.

It totalled $ 3315.73 million in the first eight months (July-February) compared to $ 3284.51 million during the corresponding period of the previous year. The amount represents 20.85 percent of the country’s total export earning during the eight-month period.

According to recent statistics compiled by the Export Promotion Bureau (EPB), RMG export to the US, including knitwear, amounted to US$ 2977.32 million during the July-February compared to US$ 2967.91 million during the corresponding period of the last fiscal. The RMG items, including knitwear, witnessed a 0.32 percent growth in the US market.

The major exports to the US market during the period were woven garment ($ 2310.75 million), knitwear ($ 666.57 million), frozen shrimp ($ 44.97 million), cap ($ 22.67 million) and home textiles ($ 165.24 million).

During the period, around 36.91 percent of the country’s total woven garment exports entered the US market, followed by knitwear 10.59 percent and frozen shrimp 13.01 percent.

Bangladesh’s export earnings from the US in fiscal 2010-11 were impressive as it totalled $ 5107.52 million showing a 29.29 percent gain from the figure of fiscal 2009-10.

The export earnings in fiscal 2009-10, however, totalled US$ 3.14 billion, a 7.74 percent fall over US$ 3.4 billion in 2008-09, mostly because of the global economic recession.

The RMG export, including knitwear, witnessed a sharp fall of over 6 percent in fiscal 2009-10, fetching US$ 2.9 billion as against US$ 3.1 billion in 2008-09.

The 2009-10 fiscal marked the end of an ups-and-down decade for Bangladesh exports to the US. From the robust US $2.5 billion during the 2000-01 fiscal, exports had fallen below US$ 2 billion by 2003-04.

Exports rose steadily to cross the US$ 3-billion mark in 2005-06, and peaked at nearly US$ 3.6 billion during the 2007-08 fiscal.

News Source:
UNB

British-Bangladeshi

May 8th, 2012, 08:55 PM

Bangladesh identifies Australia & NZ for CBC exports

Bangladesh has identified Australia and New Zealand as alternative markets to boost exports of its Carpet Backing Cloth (CBC).

CBC is made of jute and is exclusively used in making of both woven and tufted carpets. It is used as base or backing material for the carpets.

Recently, a Bangladesh Government delegation led by Md. Ashraful Moqbul, Secretary of the Ministry of Textiles and Jute (MoTJ), paid a visit to Australia and New Zealand to explore possibility of increasing CBC exports to these countries.

The team held discussions with various importers in New Zealand’s Auckland city and in Australian cities of Canberra, Melbourne and Sydney. The delegates also visited several carpet manufacturing units in these cities.

Speaking to fibre2fashion, Md. Ashraful Moqbul, Secretary, MoTJ, said, “We had some business discussions with importers in Australia and New Zealand during our visit last month.”

The team found that most carpet producers now use synthetic CBC and only a few of them still use jute CBC.

“We proposed the jute CBC users to buy their CBC from Bangladesh. In turn, they asked for competitive prices, on time delivery and good quality products. We retuned with a sample order in hand,” informs Mr. Moqbul.

If Bangladesh is able to bag more orders of CBC from Australia and New Zealand, it will definitely benefit the Bangladeshi industry because both the BJMC mills and the public sector mills are producing CBC alone.

“Since there are not enough markets for CBC, Bangladeshi mills are in search of new markets where they can export their products. We see Australia to be a good destination for exporting CBC from Bangladesh,” the MoTJ Secretary mentions.

Explaining the reason for Bangladeshi CBC exports going down in recent times, he says, “So far, most of the CBC from Bangladesh was destined to the US market. But now, the carpet producers in the US have reduced the use of jute and are mostly depending on the synthetic CBC. Hence, our exports to the US market have gone down.”

Continuing further, he says, “Moreover, CBC exports to the Middle East market viz. Libya, Sudan, Iran etc. are also witnessing a downtrend.”

News Source:
www.fibre2fashion.com

British-Bangladeshi

May 11th, 2012, 03:42 PM

UN Escap sees 6.6 percent GDP

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) today predicted a 6.6 percent GDP growth in this fiscal, but urged Bangladesh to address high inflation, budgetary deficit and inequalities for sustained economic growth.

The observation came at the launching of Escap's Economic and Social Survey for Asia and the Pacific 2012 at the CIRDAP auditorium here.

UN Resident Coordinator Neal Walker, BIDS Director General Dr Mustafa K Mujeri, ESCAP Executive Syed Nuruzzaman and UNIC Office-in-Charge Ali Reza, among others, spoke on the occasion.

Neal walker said Bangladesh has maintained an average sustained growth of 6.2 percent in last five years despite global economic meltdown and natural disasters, and it would achieve a growth of 6.6 this year against 6.1 percent in 2010 and 6.7 in 2011. But he suggested immediate steps to improve the situation in power, energy and communications sectors for foreign investments and further domestic growth.

Referring to the survey, Neal Walker said exploration of natural gas and new investment in power projects with minimum transmission and distribution losses were crucial for Dhaka to steer its economic growth in near future.

Nuruzzaman said countries in the Asia Pacific were the fastest growing economies in the world, but unemployment among youths remained very high in the region that witnessed an economic slowdown in 2010 than previous years. He came up with a number of policy suggestions to overcome the ordeal.

He said countries especially "aspiring economy" like Bangladesh has to make a balance between growth and inflation, while addressing income and gender inequalities, and generate employment for educated youths.

Dr Mujeri said the Escap report gave an overall picture of the socioeconomic progress and challenges in the Asia-Pacific and said Bangladesh could learn many things from it for future course of actions. He said Bangladesh has secured third position after India and Sri Lanka in South Asia to maintain a high economic growth, but inflation, inequality and "quality growth" remained major challenges ahead.

"There should be a mechanism to make a balance between GDP growth and high inflation," he said, adding the growth should be pro-poor in order to make it sustainable and efficient. He said the government has to find ways to help people cope with the soaring commodity prices which would grow further in the years ahead due to high consumption in emerging economies.

"The world is not going to get rid of high commodity prices shortly," he said, urging Bangladesh to focus more on export items that would have high values and advanced technological inputs. In this context, he said the future of readymade garments might not remain bright and the government should think right now to go for technological advancement and value- added products to diversify exports.

Dr Mujeri also called for higher investment in the agriculture sector and increase agro-productivity to offset food inflation. He also said population should be controlled and managed in a batter way to keep the country livable.

News Source:
BSS

British-Bangladeshi

May 14th, 2012, 10:01 PM

Fiscal protection to local engineering products emphasized

Local manufacturers have called upon the government to take necessary steps in the upcoming budget to create an environment for flourishing high tech engineering products and job creation opportunities. To achieve this goal, industry leaders and economists have laid emphasis on fiscal and other supportive steps in the budget by discouraging imports through appropriate tariff facilities.

Specially, they urged the government to give protection to local manufacturers of refrigerator, television, air-conditioner and motorcycles.

Parties are importing these items at huge under-invoicing depriving the government huge revenue, in addition to undermining local manufacturing.
So steps should be taken in the budget to secure enough revenue by stopping under-invoicing while giving protection to local manufacturers of such products, they said at pre-budget discussions in the city.

They said import lobbies are at work to influence the government to keep open the cheaper import outlets at the cost of local manufacturing facilities which have developed over the years at huge investments.

The responsibilities lie with the government now to protect them and give them enough space to further grow in greater national interest.

With import dependence no industry can flourish, they said.

Pointing to a L/C opened in January last year to import air conditioner of different brands and capacities, a functionary of a local manufacturing group said their import document quoted prices varying from US$ 25 to $55 which stood about several times lower than the real price. The real price of a single compressor of an air conditioner is about $40. When an AC is imported at $50 price, it is liable to pay 150 per cent import duty. The real cost of import stands at $200 dollar.

On the other hand, local manufacturers have to pay $250 on import of raw material for an AC which is discouraging to local manufacturing. This trend must be reversed, he said.

Bangladesh is now self-sufficient in refrigerator manufacturing. So, the industry circles believe that there should be supplementary duty on import of finished and semi-finished refrigerators, air conditioners and such other engineering products in which Bangladesh has already made significant progress to become self dependent.

With the tag "Made in Bangladesh," these household appliances are moreover, exported now to 19 countries. Local manufacturers are planning new market expansion to over 50 countries and fiscal protection and incentives are most important factors in achieving the goals.

Local hi-tech products has led to the creation of massive employment, along with value addition, skilled manpower creation and follow up development in the country's socio-economic fields. The country is saving huge foreign exchange and moreover earning growing income from exports.

News Source:
New Nation

mirzazeehan

May 16th, 2012, 12:56 AM

Wall Street Journal
Bangladesh Is South Asia's Standard-Bearer
The former 'basket case' is more moderate on religion and more pragmatic on development than its peers.
By SADANAND DHUME

Despite its 160-million strong population, Bangladesh can find it hard to elbow its way onto the global stage. It's in an area where India is cast in the lead as the dominant economy, Pakistan plays the intermittent villain, and Sri Lanka and Nepal feature in cameos as countries with uncertain futures. Yet when U.S. Secretary of State Hillary Clinton touches down in Dhaka Saturday—the highest ranking American official to visit in nearly a decade—she'll encounter a country that can teach a lesson or two to all other regional actors.

The world's third-most populous Muslim-majority country stands out as a model of moderation. Unlike in virtually every other country in the Muslim world, Islamists in Bangladesh are on the defensive. Seven people, including high profile leaders of the Jamaat-e-Islami, South Asia's most powerful Islamist group, face war crimes charges for their role in slaughtering Bangladeshi patriots, Muslim and Hindu alike, during the country's 1971 war of independence against Pakistan.

Current Prime Minister Sheikh Hasina Wazed's father, Sheikh Mujibur Rahman (1920-75) led that struggle, which claimed 3 million lives according to the Bangladesh government. The trial reveals the government's willingness to deal with one of the most painful episodes in the young nation's history. It also shows its refusal to allow Islamists to label the regime as "anti-Islam" for pursuing them, a form of blackmail that often obstructs justice in other places.

In a similar vein, Bangladesh can boast one of Asia's best records of fighting Islamist terrorism. The South Asia Terrorism Portal estimates that only nine people have lost their lives since Ms. Hasina swept to power at the end of 2008. In the four years before that, terrorists claimed 56 lives at home, while the Bangladeshi terrorist group Harkat-ul-Jihad al-Islami (or HuJi-B) carried out high-profile terrorist strikes in India.

Much of Bangladesh's success in confronting the most intolerant elements within its own society comes from crafting an inclusive national narrative. Unlike Pakistan, Bangladesh does not define itself by faith alone. Most Bangladeshis see no contradiction between being proud Muslims and proud Bengalis. This self-confidence gives the country the ability, which some other Muslim societies lack, to push back against extremism.

Then there's the down-to-earth pragmatism present in Dhaka's approach to development. Over the past five years, the economy has expanded on an average of 6% per year. Unlike India, which is hobbled by socialist-era labor laws that interfere with hiring and firing, Bangladesh has built a world-class apparel industry that employs more than 3.5 million people and supplies global brands like H&M, Walmart and Tommy Hilfiger. Thanks to this,the country is already the world's second largest exporter of readymade garments after China. If it plays its cards right, Bangladesh, more than any other South Asian nation, could attract a fresh wave of labor-intensive manufacturing looking for cheaper alternatives to China. Goldman Sachs lists Bangladesh among its "Next 11," countries that have the potential to become major economies.

And after years of tensions with its bigger neighbor, Bangladesh is now being practical and seeking to normalize ties with India. The two countries have already settled long festering territorial disputes and opened up trade. A landmark transit agreement would place Bangladesh at the heart of a potentially dynamic growth corridor encompassing northeastern India and a newly democratizing Burma. This is currently being stymied by Indian politician Mamata Banerjee, who as chief minister of the West Bengal state that borders Bangladesh opposes an allied water-sharing agreement with Dhaka.

Still, Dhaka and New Delhi are pushing for this agreement and it could succeed, possibly ushering in a new peace dividend in the region. At any rate, Dhaka's pragmatism in its foreign relations stands in contrast to India, which can't always suppress its preachy rhetoric of nonalignment (toward the West), as well as Pakistan, which often sputters in a sea of Islamic fundamentalism and knee-jerk opposition to India.

That said, Bangladesh is hardly free of problems. Ms. Hasina and her chief opponent, the Bangladesh Nationalist Party's Khaleda Zia, have created a poisonous zero-sum politics, which has come to the fore again in recent days. The BNP is up in arms at the disappearance of one of its leaders last month and they blame Ms. Hasina's ruling party. They have shut down the country with crippling national strikes four times in the past month.

No one knows how the BNP official in question disappeared, though, and a string of similar disappearances reflect a deteriorating law and order situation. Either law enforcement is engaged in extra-judicial actions, or vigilantes can roam free with impunity. Neither is encouraging.

Meanwhile, the Islamist threat has been reduced but not eliminated. The BNP remains at best ambivalent and at worst actively sympathetic toward Islamist forces similar to those that have helped drag Pakistan in a downward spiral. And though Bangladesh's army deserves some credit for keeping its distance from politics since late 2008, it's by no means certain that the country's latest experiment with democracy, barely three and a half years old, will last. The military first seized power in 1975, and has done so repeatedly since.

But for now, these worries can take a back seat. This weekend, a country once dismissed by former U.S. Secretary of State Henry Kissinger as a basket case, gets to show one of his successors how wrong it has proven him.

Mr. Dhume is a resident fellow at the American Enterprise Institute in Washington, and a columnist for WSJ.com.

Source:http://online.wsj.com/article/SB10001424052702304746604577381671411071762.html

British-Bangladeshi

May 16th, 2012, 05:43 PM

^^
Bravo Bangladesh :cheers:

British-Bangladeshi

May 16th, 2012, 05:45 PM

India emerges as a growing mkt for B’desh WPP bags

India has emerged as a growing market for local woven polypropylene (WPP) bags, which industry owners attributed to huge demand of the world class packaging materials in the neighbouring country's cement sector.

They said India has a large cement market which is expanding day by day, but it has no adequate packaging material factories to meet up their growing demand.

So they are gradually depending on Bangladeshi WPP cement bags (adstar bags), said Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) WPP standing committee chairman Kazi Anwarul Haque.

"We have already started shipment of the products to the neighbouring country from last November," he said adding around 450 tonnes of pp woven bags worth $ 0.9 million are being exported from the country each month.

He also said the export volume of the plastic products will stand at 900 tonnes from next year and the increasing trend will be continuing in coming days.

Nearly 5,000 tonnes of WPP cement bags are being used in the fast growing developing country monthly.

India is the second largest producer of quality cement in the world. The industry is growing at the rate of 8.0 per cent per annum owing to numerous plants of cement spread across the country from North to South and East to West. There are 120 large and 300 mini cement plants in the country.

Local Bengal Plastic Industries Ltd, Madina Polymer Industries Limited, and Akij Group export plastic WPP bags in the South Asian country.

Presently the Bangladeshi cement bags are going to West Bengal, said Mr Haque also the vice president of BPGMEA adding we will start selling the products in Tripura region very soon.

The export prospect of the product in the European Union and USA has also become bright following the anti -dumping duty and wage hike of workers in China, Vietnam, Cambodia and Thailand.

Now EU and USA are importing nearly 75 per cent of the local WPP bags.

Once China, Vietnam, Cambodia and Thailand would meet up the Eurozone demand but now they are reducing production following the wage hike, said industry people.

They said, Canada and Australia can also be prospective markets for our plastic bags but the government has to come forward to explore the potentiality.

According to the association, presently local manufacturers export nearly 9,000 tonnes of WPP bags worth around $ 100 million.

Nearly 300 trillion WPP bags are being used in the globe for packaging of food grains and other products per year.

The export earning from this sector can be increased to $ 300 million in a short time if the government gives cash incentive to the sector, the industry leaders opined.

WPP bags are widely used for bagging of fertilizer, cement, building materials, salt, food grains, onion, potato, rice , wheat, flour, pulse, dates, maize, powdered milk, fruits, chemicals, sugar, poultry and fish feeds etc.

Presently the total investment of the country's WPP sector has exceeded Tk 25.0 billion. Annual turnover is more than Tk 25.5 billion with 20 per cent growth.

The sector has 60 factories with direct and indirect employments of more than 100,000 people, most of the whom are females.

News Source:
Financial Express

British-Bangladeshi

May 18th, 2012, 07:51 PM

Remittance may cross $12.50b by fiscal end: BB

The central bank expects that the country's overall inward remittance will cross US$12.50 billion by the end of the current fiscal year as different moves have already been taken to increase its flow.

"We expect that the inflow of remittance may cross $12.50 billion mark by the end of this fiscal," a senior official of the Bangladesh Bank (BB) told the FE Thursday.

The central bank estimated the figure on the basis of last 10 months flow of remittances registering a 10.43 per cent increase over the corresponding period of last year.

"The steady growth of inward remittance may continue in the coming months following stable exchange rate of the local currency against the US dollar," another BB official said.

He also said the existing stable trend of the local currency against the greenback is likely to continue until June this year.

During the period the inflow of remittance grew by 16.38 per cent to $6.85 billion from eight Middle East countries including Kingdom of Saudi Arabia (KSA), United Arab Emirates (UAE) and Kuwait while the growth rate was only 1.04 per cent to $3.77 billion from rest of the world, generally known as non-Middle East countries.

Among the Middle East countries, the inflow of remittance from Bahrain increased by 58.99 per cent to $235.46 million during the period under review against $148.10 million in the corresponding period last year.

On the other hand, the inflow of remittance grew by 661.14 per cent to $44.56 million from Australia in the first 10 months of this year compared to $5.85 million in the same period of the previous fiscal.

"We've given eight approvals to the local commercial banks for establishing drawing arrangements with the money transfer companies in Australia to boost inflow of remittance from that country," the BB official said while explaining the main reason of the sudden rise of remittance.

He also said only three drawing arrangements out of eight are in operations.

The commission for sending remittance has been dropped recently following withdrawal of pay cash exclusivity clause from the contract between the exchange houses and the banks, the BB official added.

"The overseas Bangladeshi workforce has encouraged remitting their hard earned money through the banking channel due mainly to the lower commission," the central banker said.

He also said the BB earlier took a series of measures to encourage expatriate Bangladeshis to send their hard earned money through formal banking channel instead of the illegal "hundi" system to boost the country's foreign exchange reserves.

News Source:
Financial Express

British-Bangladeshi

May 21st, 2012, 03:43 AM

Remittance inflow from Malaysia to reach $1.5b: BMCCI

The remittance inflow from Malaysia that recently crossed the $1 billion mark can rise further to $1.5 billion if the existing 500,000 Bangladeshi workers keep sending money through formal channels, a leading chamber said yesterday.

“The workers mostly don't have any idea about the benefits of sending remittances through the formal banking channel,” Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) President Syed Nurul Islam told reporters at the National Press Club.

It would not be impossible to bring in $2 billion remittance in future as more skilled manpower would go to Malaysia in the next two years, he added. “For this, we need joint efforts of public and private sectors, including financial institutions.”

The press conference was arranged to brief on the second 'Showcase Bangladesh 2012' to be held in Dataran Merdeka Square in Kuala Lumpur from July 13 to July 15.

BMCCI in collaboration with Bangladesh High Commission in Malaysia, Malaysia South-South Association and Malaysia External Trade Development Corporation will arrange the three-day show.

Syed Moazzam Hossain, former BMCCI president and chairman of the fair organising committee, said the purpose of the showcase is to project Bangladesh to Malaysia and promote trade between the two countries through exports.

News Source:
Daily Star

British-Bangladeshi

May 21st, 2012, 03:46 AM

Local dairy needs govt support to flourish

The prospects of the dairy industry remain largely untapped due to lack of support and incentives from the government to boost milk production and encourage processing.

Local processors said the government pays little attention to the dairy sector although it holds potential to create thousands of jobs, reduce poverty and cut the country's high dependence on imported powdered milk.

“Except for VAT [value-added tax] waiver for white liquid milk processing, we get no tax and duty benefit to process and market locally produced milk," said Kamruzzaman Kamal, director for marketing of PRAN-RFL Group, a leading processor of liquid and powdered milk.

"We have to pay high duty to import materials for milk processing," he said, citing that local processors have to pay 71 percent import duty for milk packaging materials.

In addition, they have to pay 25 percent duty for importing milk tanker and aseptic packaging, 8 percent for milking machines and cooling tankers and 23 percent for other machineries used in the industry.

Such a low support goes on at a time when local processors are increasing milk processing to tap the market prospects, encouraged by a shortfall in milk production supply against the backdrop of rising demand.

Last year, nine local milk processors processed nearly 150 million litres of liquid milk. Four years ago, the total volume of processed liquid milk was 85 million litres, according to Kamal.

The entry of new investors has also buoyed milk output as more farmers opt for dairy farming.

Bangladesh has to spend a lot of foreign currencies every year to import powdered milk due to a shortfall in milk production.

Kamal said high duty and taxes sometimes put local processors on an unequal footing with powdered milk importers, who have seen a reduction in duty over the last several years.

Import duty on powdered milk, which was 51.5 percent in 2008-09, now stands at 33 percent, said the official of Pran.

"The government should impose duty on imported milk considering our production and processing cost so that we can compete and help develop local dairy industry," said Mohammad Ali, chief operating officer of AHZ Agro Industries Ltd, which processes liquid milk and markets under the brand Tatka.

Ali said Bangladesh possesses huge potential to develop the dairy sector, as the country has one of the highest numbers of cattle in the world.

"But low productivity per cow keeps milk output low," he said. "By improving local breeds through artificial insemination, we can easily double milk production. Government support is necessary in this regard."

He said the sector should be given waiver from all sorts of duty and taxes to attract new investment to let the sector flourish. Subsidy should also be given for cattle feed so that farmers can keep milk production cost low, said Ali.

"An integrated policy support will contribute to faster growth of the dairy industry," he said, adding that India became self sufficient in milk production with policy support from its government.

"India now exports milk," he said, also proposing establishing a dairy development board.

Kamal of Pran suggested duty-free privileges for local dairy processors to import capital machinery, vehicles and packaging materials.

"The dairy industry will grow faster if it gets support like poultry,” he said, pointing at the government's support to develop the poultry industry.

News Source:
Daily Star

British-Bangladeshi

May 21st, 2012, 09:26 PM

Bangladesh has potential to be Bengal Tiger
It’ll be a major economic player: Mozena

Underscoring his vision to see Bangladesh as a “Golden Bangladesh and the Bengal Tiger” in the region US Ambassador Dan W Mozena on Monday reassured the US government’s total support in materialising this visualization.

He, however, also hoped that the government would take immediate steps to remove impediments like political instability, corruption, poor infrastructure, energy shortage, and improve of law and order.

“I really believe that within my lifetime Bangladesh can be the Bengal tiger by emerging as a major economic player in the world,”:cheers: the ambassador said while interacting with senior journalists of The Independent during his visit to the offices of the daily.

In this connection he also emphasised the need for enhancing regional connectivity, political stability through a consensus among the major political parties, resolving labour related issues, and tapping the huge energy resources.

Terming Bangladesh as a “huge country”, he said that by exploiting the true potentials of the country Bangladesh can take a leadership role in global RMG, home textiles, pharmaceuticals, and the IT sector.

In this process a large number of employment opportunities could be generated which would help the country to lift the 40 per cent of its poor out of poverty, he noted.

“Bangladesh is a huge country, the 7th largest in the world, but many Bangladeshis do not see it that way.

Bangladesh can play a major role in world economy and the US government and I will do everything in this regard,” Ambassador Mozena added.

Welcoming the US Ambassador, Editor of The Independent Mahbubul Alam said that the US had the largest investment in the country.

“I hope that more US investment will come to Bangladesh and the government would take proper steps to remove the bottlenecks to facilitate the investments,” the Editor said.

Describing Bangladesh-US relationship as excellent, the US Ambassador said, “US Secretary of State Hillary Rodham Clinton came to Bangladesh because this country matters to America. She came to cement the relationship between the two countries.”

“We have a strong partnership. We have a partnership that is bigger than the individuals involved. The signing of the partnership dialogue is proof of my assertion that US-Bangladesh relationship is excellent,” he explained.

“By signing the partnership dialogue we have put on paper our commitment to have an annual senior-level meeting to asses our relationship from a strategic perspective and give our relationship strategic direction,” he added.

Replying to a question, Mozena said that there were many areas where both countries could work to take the relationship further ahead to the mutual benefit of the peoples of the two countries.

In this regard, he mentioned that the US could assist intra-regional connectivity and trade involving countries like Nepal, Bhutan, Myanmar, India and China.

Referring to the killing of labour organiser Aminul Islam, Mozena said, “There is a perception that Bangladesh wants to slowly back off from its international labour obligations.”

The American Federation of Labour and Congress of Industrial Organizations (AFL-CIO), the largest federation of workers’ unions in the US, have filed a petition with the US government to remove Bangladesh’s access to Generalized System of Preferences (GSP) as Bangladesh does not follow international labour standards, he said.

Without mentioning any names, he said that some buyers of Bangladeshi RMG products had raised issues concerning the labour situation in Bangladesh.

In this context, the US envoy said that the issue of the proposed Trade and Investment Cooperation Forum Agreement had been going on for four years and it was yet to be signed.

“We need to conclude the agreement soon. There is a single issue to be addressed and we hope to find a way to resolve that issue,” he said.
“I hope we will sign it,” he added.

About the political situation, the US Ambassador called upon all the major political parties to reach a consensus to find a mechanism to conduct free, fair, credible and participatory elections.

“This country ought to be, should be and must be a democracy.

Non-democratic governance in this country has not been a happy affair. To be a democracy there needs to be free, fair and credible elections.

Therefore, you have to reach a mutual agreement how to conduct free, fair, credible and participatory elections,” he said.

“I am sure there will be an agreement. But, I don’t know when—I say it should be soon,” he added.

The envoy further said that hartals, instability and uncertainty would drive away potential investors from investing in Bangladesh.

About Bangladesh’s relationship with its neighbours, Mozena said that Bangladesh’s improving relationship with Myanmar, China, Nepal, Bhutan, India, Pakistan and Afghanistan was “so very good” for regional stability and trade.

“It’s win-win for all,” he added.

About the extradition of a killer of Bangabandhu Sheikh Mujibur Rahman from the US, Mozena said, “My government will see what we can do.”

Describing the present energy situation “disappointing”, the US ambassador underlined that Bangladesh had failed to tap the potential of its coal resources.

“Bangladesh imports low quality-high sulphur coal from abroad legally and illegally but it did not take any decision on its own coal deposits which are unbelievable,” Mozena said.

“The country should take the opportunity to explore its offshore blocks by starting exploration work in the Bay of Bengal with ConocoPhillips,” Mozena said.

He called upon the government to expedite the block awarding process to ConocoPhillips soon, adding that “the country does not have even one or two days more to remain idle on the energy issue as it hits every sphere of life and economy,” the US ambassador said.

“I don’t understand why the offshore exploration work is delayed as Bangladesh needs a huge amount energy to make the country a middle income nation,” he said. :bash:

He said, “I am proud of the role that Chevron is playing in helping to strengthen the economy of this great nation; in helping to unleash the next Asian tiger, the Bengal Tiger.”

“Bangladesh should move ahead to explore all potential areas of energy and power resources. Thus it could help the RMG and other industries to do business in a proper manner,” he said.

He said the partnership between America and Bangladesh is strong, and that partnership is strongest and most important in the private sector. America is Bangladesh’s largest single export market with potential for great growth. And America is Bangladesh’s largest investor with Chevron the single largest investor in Bangladesh, the ambassador said.

Praising Chevron’s role in Bangladesh’s energy sector, Mozena said, the Muchai Compression Project has increased the gas supply to Bangladesh’s growing power generation, fertilizer, industrial and consumer sectors.

“The US government wants to see a very open and level playing field in Bangladesh to do energy business here and we’d love to see a very transparent bidding process,” Mozena said.

The US Ambassador was accompanied by Patricia A Hill, press and information officer, and Kelly McCarthy of the public affairs section of the embassy.

Meanwhile, the United States of America (USA) wants that an agreement is reached through meaningful dialogue between the ruling party and the main stream opposition to develop a mechanism to hold free, fair, credible and participatory election in Bangladesh. US ambassador to Bangladesh Dan Mozena said this at a discussion organized by Bangladesh Institute of Peace and Security Studies (BIPSS) at a city hotel on Monday.

The sooner the political parties reach the agreement, is better in the interest of democracy in Bangladesh, Dan Mozena said adding “We want to see a democratic, secured, transparent, peaceful and healthy Bangladesh.” Such a Bangladesh, he said, is good for South Asia and also for the USA.

In this context, he said that “home grown problems, should have home grown solutions.”

He said, “I hate hartal as it drives away investment.’ Describing Bangladesh as a model country for others :cheers:, he said, so it has become a strategic partner of the US.

He said the official tour of US high-ups, including that of US secretary of State Hillary Clinton, proved that “something special is happening here.”
The discussion which was initiated by president of BIPSS Major general (retd) Muniruzzaman was attended by diplomats, civil society members and professionals.

Responding to a question, he said, “We don’t see Bangladesh through Indian prism.”

Describing Hillary Clinton’s visit to Dhaka as a grand success, he said it had been his dream since becoming his country’s ambassador to Bangladesh.

He used words of praises for Bangladesh for improving its relations with neighbours including India, China, Myanmar and Pakistan. He said in this context, the secretary of state appreciated Bangladesh’s efforts in curbing terrorism in cooperation with India. In this context, he described Bangladesh as a critical player of regional security.

He also briefly spoke on various areas of engagement between the defence forces of the two countries.

Speaking on increase of Bangladesh’s export to India, he said ‘India is an opportunity to Bangladesh as it is one of the world’s largest growing markets.” The geographical location of Bangladesh, he said, has made it important.

He also spoke on the importance of deep sea port of Bangladesh.

News Source:
The Independent