Please post in this thread all the news related to the Economy of Bangladesh.

One of three T-shirts in EU
made in Bangladesh

Kazi Azizul Islam
One in every three T-shirts sold in EU markets is made in Bangladesh, shows a recent market report.
However, although Bangladesh tops T-shirt import to the European Union in terms of volume, Turkey remains the top earner.
Bangladeshi exporters shipped about 251 million T-shirts to the EU or 32 per cent of the total EU imports in the first four months of the current year, and earned about 328 million euros.
Turkish exporters shipped 137 million T-shirts in the same period but earned 508 million euros, according to the report prepared by a leading textile market analyst.
The report was made available to New Age by sources in the Bangladesh Knitwear Manufacturers and Exporters’ Association.
Bangladeshi exporters offer the lowest prices to their buyers – only 1.31 euro for a T-shirt, much lower than the world average of 2.17 euros.
Turkish exporters sell one T-shirt at 3.30 euros on average. India sells one T-shirt for 2.27 euros, China for 2.82 euros and Morocco 1.67 euros.
Jahangir Alam, executive director of Knit Concern Limited, one of Bangladesh’s leading T-shirt exporters, observed that easy availability of high quality cotton and fashion accessories had helped Turkish manufacturers to produce high value items and earn the highest.
‘High value products helped Turkey keep their exports profitable although labour cost is much higher there, especially compared to Bangladesh,’ he said. ‘If backward linkages, especially for high value items, are developed in Bangladesh, factories and workers here who stitch fine will be able to compete Turkey in the high value segment.’
Although Bangladeshi knitwear manufacturers procure more than 80 per cent raw material, especially cotton yarns, from local sources but those are ordinary grade and suitable only for low-cost basic knitwear, industry people said.
High-value items need finer quality yarns, attractive accessories including fashion stones, ribbons and laces and those are not adequately available in Bangladesh, they said.
The EU market report shows that Germany heads the list of important markets and imports 24.66 per cent of all T-shirts in the first quarter from global suppliers.
Imports entering Germany also grew in volume by 38.26 per cent, compared to the first quarter of 2005, an improvement on the 9.74 per cent growth in 2005. Exports to the United Kingdom, second biggest importer in terms of volume, increased 12 per cent.
Bangladesh is regarded as the cheapest source of knitwear in global markets and the European retailers, especially those in Germany, are the largest importers of Bangladeshi knitwear.
Backed by cheaper labour sources, Bangladesh’s knitwear sector has been expanding robustly in recent years.
Industry people predict that, within the next few months, export earning from the knitwear sector would cross that of the readymade woven garment, the largest earner with around $3.6 billion every year.
The Export Promotion Bureau has recently disclosed that in 11 months of the just-ended fiscal year, knitwear exporters shipped products worth $3.5 billion, up $600 million more than in the previous fiscal year.
With more than 1,500 knitwear factories in operation at present, production capacity and earnings of the knit sector has doubled in the last couple of years

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

Bangladesh economy set for "robust" growth

DHAKA (AFP) - Bangladesh's economy is expected to grow at 6.5-6.8 percent in the year ending June 2007 despite high oil prices, creeping inflation and an impending general election, the central bank said.

Overall growth for the 2007 fiscal year "is projected to be in the 6.5-6.8 percent range", the bank said releasing its half-yearly monetary policy statement on Thursday.

"The economy achieved record growth of 6.71 percent in the year to June 2006 and the robust growth trend will continue for the next 12 months," the bank's governor Saleh Uddin Ahmed told reporters.

Deputy governor Allah Malik Kazemi said the economy would sustain its higher growth despite a range of challenges. Inflation reached 7.14 per cent in May.

"We don't think higher oil prices and the impending elections will have much effect on our economy," said Kazemi.

The country's four-party Islamist-allied government will hand over power to an independent caretaker government in October ahead of general elections scheduled for January 2007.

"Over the last one year we have learnt to cope with higher oil prices. And we had seen two caretaker governments in the past. We don't think the elections will have any major impact on the growth," he added.

Despite extreme poverty, the south Asian nation of 140 million people has been one of the world's fastest-growing economies in recent years. It has logged an average of over five percent growth since the early 1990s.

The government earlier this week put on hold a three billion dollar investment proposal by India's Tata Group, citing election preoccupations and officials say more delays are expected.

The country also enjoys one of the world's lowest oil prices owing to government subsidies, which last year cost the country around 600 million dollars.

The bank said the country would benefit from favourable agricultural growth, buoyant service and manufacturing sectors, sustained growth in exports and record remittances sent by expatriate Bangladeshis.

Bangladesh's textile exports grew by nearly 20 percent in the first nine months of this fiscal year with business booming since the end of global textile quotas.

Worker remittances jumped 25 percent to a record 4.84 billion dollars in the 2005-2006 fiscal year

http://news.yahoo.com/s/afp/20060713/wl_sthasia_afp/bangladesheconomy_060713120958

great stuff MZ.

Karnaphuli EPZ in Chittagong opens soon

The Karnaphuli Export Processing Zone (KEPZ), another exclusive economic area in the port city's Patenga industrial belt, is to start functioning soon, as necessary development works with adequate infrastructure facilities are nearly complete.

Officials are hopeful that around 20,000 local people will get jobs and more than $100 million will be invested in the EPZ, where 100 plots are being developed under the first phase of the project.

"Nearly 95 per cent development work of the 1st phase of the KEPZ on the site of the closed Chittagong Steel Mills (CSM) is complete and its formal inauguration is likely to be held next month," KEPZ Project Director Ataul Hoque told the news agency yesterday.

He said necessary infrastructure facilities such as roads, drains, footpaths, and boundary walls have been constructed. Besides, utility services such as water, gas and power connections are going to be established.

Earlier, the government decided to turn the 222.42-acre land area of the CSM into an exclusive economic zone to meet the growing demands for special industrial plots.

Hoque said the land was handed over formally to Bangladesh Export Processing Zones Authority (Bepza), which started the physical work for the project's 1st phase with an estimated budget of Tk 34 crore in July last year.

"The development work of the 2nd phase to prepare another 111 industrial plots is also progressing fast to complete the whole project by the end of 2008," he said adding that the KEPZ will hopefully create some 50,000 jobs.

Besides, Hoque said, the KEPZ will fetch around $250 million in the form of investment for the industrial units to be set up on a total of 211 plots by the end of 2008.

Meanwhile, 40 out of 100 industrial plots under the 1st phase were handed over to entrepreneurs from Thailand, Sri Lanka, Taiwan and Bangladesh. More than 100 applications for allotment are pending for approval, he said.

http://www.thedailystar.net/2006/07/30/d60730050454.htm

Karnaphuli EPZ to start functioning soon
Bangladesh Sangbad Sangstha . Chittagong

The Karnaphuli Export Processing Zone, another exclusive economic area in the port city’s Patenga industrial belt, is to start its functioning soon, as necessary development works with adequate infrastructure facilities are nearly completed.
Officials are hopeful that around 20,000 local people will get jobs and more than $100 million will be invested in the industrial units to be set up on 100 plots being developed under the 1st phase of the project.
‘Nearly 95 per cent development work of the 1st phase of the KEPZ on the site of already closed Chittagong Steel Mills has been completed and its formal inauguration is likely to be held next month,’ project director Ataul Hoque told BSS here Saturday.
He said necessary infrastructure facilities under the 1st phase like construction of road, drain, footpaths, green space, boundary walls, water, gas, power supply and telephone network are now close to completion.
Earlier, the government decided to develop the 222.42-acre land area of the CSM into another exclusive economic zone to cater to the growing demands of entrepreneurs from home and abroad, as all the 445 industrial plots in the Chittagong Export Processing Zone have already been occupied.
Hoque said the land was handed over formally to Bangladesh Export Processing Zones Authority, which started the physical work for the project’s 1st phase with an estimated budget of Taka 34 crore in July last year.
‘The development work of the 2nd phase to prepare another 111 industrial plots is also progressing fast to complete the whole project by the end of 2008,’ he said adding that the KEPZ would hopefully provide as many as 50,000 jobs under its both phases.
Besides, Hoque said, the KEPZ will fetch as much as $250 million in the form of investment for the industrial units to be set up on a total of 211 plots by the end of 2008.
Meanwhile, 40 out of 100 industrial plots under the 1st phase were handed over to the entrepreneurs from Thailand, Sri Lanka, Taiwan and Bangladesh. More than 100 applications for allotment are pending for approval, he said.
The KEPZ officials said that the entrepreneurs as per the proposal would set up industries to produce readymade garments, electrical equipment, garments accessories and textile products.
Hoque said local and foreign entrepreneurs have already invested a total of $509 million in 130 industries in different sectors employing 1.4 lakh local workforce.

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

Malaysia may take 1 lakh workers by Dec
Diplomatic Correspondent

Foreign Minister M Morshed Khan yesterday said Malaysia would meet 50 percent of its worker requirements from Bangladesh after the Malaysian authorities withdrew restrictions on recruiting Bangladeshi workers.
In all, two to three lakh workers would be employed in Malaysia in phases, he said and hinted that around one lakh Bangladeshi workers will go to Malaysia by December this year.


In another development Bangladesh, China and Myanmar have agreed to construct a highway from Kunming to Chittagong through Mandaley.


Briefing diplomatic correspondents about the outcome of the 13th Asean Regional Forum (ARF) meeting and his bilateral talks with his counterparts from Malaysia, China, Myanmar and South Korea in Kuala Lumpur, Foreign Minister M Morshed Khan said both Bangladesh and Malaysian governments would ensure that the certain vested quarters do not cause any misery to these workers.


The Foreign Minister said he had meetings with Chinese Foreign Minister Li Zhaoxing and Myanmar Foreign Minister U Nyan Win discussing the road connectivity. Although Myanmar had some reservations in the past but now they have agreed to the tri-nation road connectivity, he added.


Morshed said if this road could be built, trade and economic cooperation would increase among the three countries. Officials of the three countries would meet soon to discuss the project.


He said the Chinese foreign minister thanked Bangladesh for supporting China to become a South Asian Regional Association for Cooperation (Saarc) Observer.


Morshed Khan also had bilateral meeting with the foreign minister of South Korea discussing bilateral economic cooperation.


Referring to the outcome of the 13th ARF meeting, where Bangladesh was admitted officially as its 26th member, he said it is the success of the government's look east policy.


He said the ARF meeting discussed Middle East issue, terrorism, disarmament and maritime security issues. On Israeli aggression on Hezbollah, Morshed said most member states condemned the Israeli actions and called for immediate cease-fire in Lebanon.

Foreign Secretary Hemayetuddin was present at the briefing

http://www.thedailystar.net/2006/07/31/d60731012216.htm

Bangladesh, China and Myanmar agree on road connectivity

China, Bangladesh and Myanmar have agreed to construct a highway from Chinese city Kunming to Bangladesh's south-east city Chittagong through Myanmar's city Mandaley.

Bangladeshi Foreign Minister M. Morshed Khan who had bilateral meetings with his counterparts from China, Myanmar, Malaysia and South Korea on the sidelines of the 13th ASEAN Regional Forum (ARF) meeting in Kuala Lumpur stated this at a press briefing in Dhaka Sunday.

Khan said he had meetings with Chinese Foreign Minister Li Zhaoxing and Myanmar Foreign Minister U Nyan Win discussing the road connectivity.

In his meeting with the Chinese foreign minister, Khan said China is a great friend of Bangladesh. He had raised the issue of road connectivity with Li Zhaoxing agreed on the project.

Khan said although Myanmar had some reservations in the past but now it has agreed to the tri-nation road connectivity.

http://english.people.com.cn/200607/31/eng20060731_288288.html

Bangladesh, Chile discuss formation of bilateral economic body

Vice Minister of Economy and Executive Vice President of Foreign Investment of Chile Carlos Eduardo Mena, and Bangladesh Commerce Minister Hafizuddin Ahmed have agreed to form a bilateral economic committee to boost trade and investment.

The agreement was reached during a meeting between the two ministers at the Commerce Minister's office in Dhaka on Monday afternoon, media reports from Bangladesh said.

After the meeting, the commerce minister told reporters that due to the absence of a diplomatic mission in Chile, entrepreneurs of Bangladesh are lagging behind in utilizing the opportunity for exporting their goods to Chile.

"Our trade with Chile is not much and the balance of trade is in their favor. We'll have increase the volume of our trade to bring it in our favor," he said.

In this regard, Hafiz mentioned the need of a bilateral agreement that would help Bangladesh to export various items like RMG, leather and leather products, and pharmaceuticals.

He requested the visiting Chilean vice minister to encourage his country's businesses for investing in Bangladesh.

Bangladesh's trade gap with Chile was dlrs 8.93 million in fiscal 2004-05 with Bangladesh exports totaling dlrs 2.79 million against the import bill of dlrs 11.72 million.

In FY 2003-04, Bangladesh exports totaled dlrs 0.59 million while its imports from Chile stood at dlrs 5.81 million.

The Chilean minister termed the meeting with the Bangladesh commerce minister as very important and useful.

"We exchanged views on ways to increase trade between the two countries and also on signing a FTA with Bangladesh," he said.

Carlos Eduardo Mena requested the Bangladesh minister to start as soon as possible the exchange of business delegations between the two countries to promote bilateral trade and investment.

Indicating Chile as a potential market for Bangladesh, he said Bangladesh could export garments, shoes, pharmaceuticals and food items to Chile.

"We can work together in a win-win situation. The geographical distance does not at all matter in this modern time," he said.

Earlier, during a meeting with the Chilean minister on Saturday, FBCCI president Mir Nasir Hossain placed on the table a basket of Bangladesh's export products that have marketing potential in the Latin American country.

The export basket included edible meat, pharmaceuticals, herbal products, cosmetics and toiletries, leather and leather products, footwear, plastic and plastic articles, carpet, jute and jute goods, knit and woven garments, apparel accessories, umbrella, ceramic table, glassware and furniture.

Bangladesh currently export a handful of items like engineering products, woven garments, knitwear, jute yarn and twine, jute manufactures, ceramic tableware, cap, toys, handicrafts, leather and footwear (leather) to Chile.

But its import list is long. The list includes prepared foodstuffs, beverages, spirits and vinegar, tobacco and manufactured tobacco substitutes, base metals and articles of base of other fibrous cellulosic material, recovered (waste and scrap) paper or paperboard, paper and paperboard and article thereof, machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.

http://www.irna.ir/en/news/view/menu-237/0607252531180255.htm

Bangladesh Economy Shifting From Agriculture, Growing Steadily

The economy of Bangladesh is moving away from farming toward industry and providing services like banking and telecommunications, while growing steadily at a faster pace than other developing countries, according to a U.N. report released Thursday.

"The biggest challenge will be to create more jobs outside agriculture," Debapriyo Bhattacharya of the Center for Policy Dialogue, an independent think tank, told reporters while analyzing the Least Developed Countries Report 2006.

The report was prepared by the United Nations Conference on Trade and Development, or UNCTAD, and deals with developing the productive capacities of the world's 50 poorest nations, mostly in Asia and Africa.

Bangladesh's per capita gross domestic product in 2004 was US$408 (euro355), compared to the US$349 (euro303) average for least developed countries.

A traditionally agricultural society, Bangladesh's production base is now tilting toward manufacturing and service sectors, Bhattacharya said.

About 54 percent of the populous nation's labor force is now working in non-agriculture sectors -- compared to 71 percent two decades ago. Services like banking and telecommunications -- particularly mobile telephone networks -- saw the highest growth and investments, Bhattacharya said.

Between 2000-2004, Bangladesh's gross domestic product grew at an average annual rate of 5.1 -- slightly higher than the 5 percent average for other poor countries, the U.N. report said.

"Bangladesh's growth rates have been higher than that of developing countries," Bhattacharya said.

Bangladeshi exports also increased, accounting for nearly 10 percent of the total merchandise exports from poor countries, the report said.

"Bangladesh is the only non-oil exporting country that saw a rise in its merchandise exports between 2003-04," Bhattacharya said.

Bangladesh, a natural disaster-prone nation of 144 million people, also enjoyed improvements in social sectors like public health, primary school attendance and life expectancy -- with lower birth and death rates, the report said.

But the country's future challenges include increasing GDP growth rates to at least 7.5 percent, diversifying export products and markets, creating more jobs in non-agriculture sectors and improving labor productivity, Bhattacharya said.

http://biz.yahoo.com/ap/060720/bangladesh_economy.html?.v=1

Bangladesh, UAE for joint business council


Bangladesh and United Arab Emirates (UAE) will consider setting up a joint commission and a joint business council to promote bilateral trade and investment.

"A Joint Commission with UAE will be something in the right direction," Commerce Minister Hafizuddin Ahmed told a visiting delegation from the UAE who met the minister at his office yesterday.

"The business council will be mutually beneficial for sourcing goods as global corporate bodies are stationed in Dubai," said UAE delegation leader Khalifa Mohammed Abdul Aziz Rubaya Al Muhairi, also a Board member of Abu Dhabi Chamber of Commerce and Industry (ADCCI).

The commerce minister, however, requested the delegation to submit a formal proposal on the business council or joint chamber body so that Bangladesh could consider it officially.

He stressed the need for frequent exchanges of trade delegations between the two countries to establish wider contact among the businessmen.

The minister invited UAE businessmen to invest in the prospective sectors of Bangladesh taking advantage of the EPZ facilities. He also assured them that Bangladesh would consider UAE's request to facilitate them with special area exclusively for UAE investment.

The UAE delegation apprised the minister of their investment interest in aviation and tourism sectors. They also sought clear parameters for their investments.

The UAE business delegation also expressed interest in pharmaceutical products of Bangladesh as they visited a Beximco plant in Gazipur yesterday.

The delegation showed special interest in the company's high-tech specialised products like inhalers, nasal sprays, suppositories, injectables and IV fluids (Saline), said a corporate release.

Visiting different production lines and installations of Beximco Pharma plant, the UAE business team appreciated the quality, absolutely sterile environment and minimum human contact in producing drugs at the plant.

They also visited the state-of-the-art IV Fluid plant, Metered Dose Inhaler (MDI) plant and new USFDA standard Oral Solid Dosage (OSD) plant.

Beximco Pharma, a leading drug manufacturer and the largest pharmaceutical exporter of Bangladesh, provides technical know-how to its importers and also offers contract-manufacturing facilities to the multinational companies.

Calling on also Foreign Minister M Morshed Khan at his office, the UAE delegation discussed issues relating to economic cooperation between Bangladesh and the UAE.

The minister apprised them of the country's attractive investment climate, cheap labour and efficient private sector.

"There are enormous scopes to cooperate with each other in economic fields as well as joint venture initiatives in Bangladesh for mutual benefit of the two peoples," he told the delegation, which showed investment interest in Bangladesh.

They were interested in increasing air frequencies between Bangladesh and Abu Dhabi, especially for Etihad, an airline of their country.

They requested the minister for his support for establishment of air connectivity to Chittagong.

The UAE business delegation also visited the Dhaka Export Processing Zone (DEPZ) and appreciated its security, production-friendly atmosphere and incentive package, said a press release.

http://www.thedailystar.net/2006/08/01/d60801050273.htm

$11.50b export target fixed for FY07
Md Hasan

On the back of a huge success in export earning in the last fiscal year, the Export Promotion Bureau (EPB) has fixed $11.50 billion export target for the fiscal year 2006-07.
The EPB has also fixed $13.11 billion and $15.21 billion targets for the fiscal years 2007-08 and 2008-09.

The export target for the current fiscal year is around $1.34 billion more than that in the last fiscal year.

According to EPB data, the country's export saw the highest-ever surge in terms of volume in FY06, fetching around $1.8 billion more over the previous year. The $10.5 billion export earning also exceeded the target of $10.16 billion in FY06. In fiscal 2004-05, the country bagged $8.65 billion exports.

"The achievement in the last fiscal year gives us the confidence. Outstanding performances by some major exporting sectors such as RMG and leather and leather goods also inspire us to set the target," said Mir Shahabuddin Mohammad, vice chairman of EPB.


He said, "The target is not ambitious. The target is based on economic growth and international market trends."

Besides, safeguard measures imposed by the US against Chinese products until 2008 will also help increase Bangladesh's exports, he hoped.

To achieve the target, the EPB vice-chairman said, the government should give more priority to ceramic, pharmaceuticals, melamine, light engineering, plastic, agro-based products and shrimp.

As per the target, export performance in the next three years has to grow 13.20 per cent, 14 per cent and 15.9 per cent.

He said, "Bangladeshi exporters have become more aware about the trend of international market. So, it is not impossible to reach the target."

Besides, investment in the RMG sector increased substantially, which may result in higher export growth in the current fiscal, he added.

"We have the confidence to achieve more in the coming year if the government support to the RMG sector continues," said Fazlul Haq, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

According to EPB data, the US remained the single largest destination for Bangladeshi goods fetching around $3 billion in FY 2005-06. Around 52 per cent of the total earning came from the EU countries.

The EBP vice-chairman said, "We have to diversify our export market to increase earning."

Citing an example, he said Malaysia has 42 trade facilitation offices around the world, which helps the country post tremendous export growth. He said, "Along with our foreign missions we have to launch this type of trade promotional offices to promote Bangladeshi goods."


http://www.thedailystar.net/2006/08/02/d60802050164.htm

Export from EPZs rises18pc to $1.8 billion in FY’06

The Exports from the Export Processing Zones rose by 18.23 per cent to $1830 million during the 2005-06 fiscal, compared to the corresponding period of the previous fiscal.
According to the Bangladesh Export Processing Zones Authority, exports by EPZs fetched $1549 million during the 2004-05 fiscal that contributed 17.90 per cent of country’s total export.
Garments, textile, terry-towels, caps, tents, electronics and footwear and leather were major exporting items from EPZs.
The general manager of DEPZ, AZM Azizur Rahman, said Chittagong and Dhaka EPZs still hold more than 90 per cent of total exports from all EPZs. Chittagong and Dhaka EPZs fetched $6802 million and $4776 million respectively up to May 2006 .
According to the BEPZA, total investment in all EPZs rose $91 million during the July-May period of the last fiscal.
The total investment of all EPZs was $119 million in the 2004-05 fiscal. It was the highest investment so far in a single year.
An official of BEPZA said, ‘We approved 36 industries that invested $543 million in different EPZs during the last fiscal. Of them, 20 were foreign investors, 10 were local investors and other six belong to join ventures’.
He said some of the factories have started production.
According to the BEPZA, about 1,76,000 workers have been employed in the all EPZs in the last fiscal year.
The government established seven EPZs which are now functioning. Karnaphuli EPZ is now under the implementation stage.

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

Dhaka Stock Exchange ends a hot week

Dhaka stocks ended a hot week Thursday with turnover gaining 109.53 per cent in volume over the previous week’s close.
The Dhaka Stock Exchange turnover hit a 16-month high of Tk 45.15 crore on Wednesday.
The gains that reversed a prolonged bearish trend since the second half of 2005 were generally attributed to pre-election investment spree, coupled with a series of positive corporate results and a relatively peaceful political environment.
Some insiders, however, related the gains to the recent remarks of the corruption watchdog’s chief, which might have driven a good chunk of untaxed money into the market.
The Anti-Corruption Commission chairman, Justice Sultan Hossain Khan, told a lawyers’ audience on July 30 that black money holders, even those who had whitened their money by paying a minimal tax, would not be spared from the action against corruption.
Sources of the money would be unearthed and actions taken against those who possessed it, he warned.
Throughout the week, the market saw a number of companies announcing positive half-yearly earnings. The peaceful end of political programmes, which created a lot of apprehensions among cautious investors, brought many of them back to usual trading.
Liquidity situation on the stock market also improved in recent times as the inter-bank call money rate eased, added a stockbroker.
Turnover on the DSE rose to Tk 48.05 crore on Thursday.
DSE general index gained 23.92 points or 1.64 per cent to close at 1480.74 on the week’s last trading day. In last three days, the index advanced by 73.93 points or 5.26 per cent.
DSE20 index went up by 15.55 points or 1.09 per cent to close at 1444.48. The blue chips index gained 65.30 points or 4.73 per cent in last three days.
Around 26.26 million shares and debentures worth Tk 203.82 crore were traded on the prime bourse last week while around 12.53 million shares and debentures worth Tk 123.12 crore changed hand in the previous week.
DSE general, DSE20 and All Share Price index gained 81.03 points or 5.79 per cent, 74.30 points or 5.42 per cent and 57.64 points or 5.19 per cent respectively.

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

13.56 pc revenue growth in 2005-06

The revenue growth for fiscal 2005-06 has been registered at 13.56 per cent against the previous fiscal year (2004-05), reports BSS.

According to National Board of Revenue (NBR), a total of Taka 33,960.53 crore has been collected as revenue for the last fiscal year, which is Taka 4,055.41 crore more than the previous fiscal. The revenue collection for fiscal 2004-05 was Taka 29,905.12 crore.

The statistics were presented at the 22nd meeting of the Parliamentary Standing Committee on the Finance Ministry at the Sangsad Bhaban in Dhaka on Tuesday.

The meeting was informed that the total asset value of the banking sector reached Taka 2,39,300 crore, of which the nationalized commercial banks (NCBs) accounted for 38.17 percent.

Thirty private sector banks, nine foreign banks and five financial institutions had the rest 57.83 percent assets. There are 48 scheduled commercial banks and financial institutions in the country.

Presided over by chairman of the committee Mushfiqur Rahman the meeting was attended by its members Mohammad Saidul Haque, AM Riasat Ali Biswas, Mohammad Azizur Rahman Chowdhury, Mohammad Habibul Islam Habib and Abdul Kaleque.

Governor of Bangladesh Bank Dr Salehuddin Ahmed, Deputy Governor Mohammad Rumi Ali, Finance Secretary Siddiqur Rahman and ssenior officials concerned were present.

The meeting was told that the central bank has continued off-site and onsite monitoring systems adding `sensitivity to market risk' and introducing `camel rating'.

Under these systems, four banks, the Oriental Bank Ltd, the First Security Bank Ltd, the Bangladesh Commerce Bank Ltd and the Social Investment Bank Ltd, have been identified as problem banks.

The meeting was told that the revenue from customs, duty, VAT and supplementary duty stood at Taka 15,273 crore during the last year. The revenue from local level was Taka 11,270 crore against the target of Taka 11,040 crore marking a growth of 25.73 percent during the fiscal 2005-06.

Revenue collection from income tax sector was Taka 7,141.56 crore against the target of Taka 6,960 crore during the same fiscal year, according to the statistics given at the meeting.

The target for revenue collection in the current fiscal year (2006-07) has been fixed at Taka 41,055 crore

http://www.bangladeshobserveronline.com/new/2006/08/03/economic.htm

Bangladesh, Cambodia sign deal to boost trade, investment

A trade agreement was signed with Cambodia on Friday. Senior Minister of Commerce of Cambodia Dr Cham Prasidh and Bangladesh ambassador to Thailand and Cambodia Shahed Akhtar signed the agreement, said a press release.
The trade agreement would help expand and strengthen trade relations further between the two countries. It will also establish the principles of equality and mutual benefit.
Bangladesh is exporting readymade garments, footwear and leather goods, knitwear, pharmaceuticals, tableware, home linen, textiles, sea foods and marine products, tea, potato, jute and jute goods, light engineering products, spices, cosmetics, ceramic and melamine products, and toiletries to Cambodia.
It is also importing goods, including cotton, edible oil, fertilizer, clinker, staple fibre, yarn and capital machinery from Cambodia.
Ambassador Shahed Akhtar and Economic Counsellor of Bangladesh Embassy Eakub Ali held several meetings with senior officials of the Ministry of Commerce of the Royal Cambodian government and the Cambodian Chamber of Commerce besides prominent business representatives.
The Cambodian businessmen showed interest in enhancing imports from Bangladesh. They also discussed signing of an MOU between the chambers of Bangladesh and Cambodia. The Cambodian Chamber of Commerce informed that a delegation would visit Bangladesh very soon.

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

FBCCI, Ukraine chamber to set up business council

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Ukrainian Chamber of Commerce and Industry (UCCI) yesterday signed an agreement to establish a joint business council aiming to promote trade and economic cooperation between the two countries.

FBCCI President Mir Nasir Hossain inked the agreement signed by UCCI President Serhiy Skrypchenko earlier for their respective sides. Association of Humanitarian, Cultural and Economic Relations of Ukraine's Bangladesh President V Shevelev was present on behalf of the UCCI president.

The agreement will remain in effect for two years and be extended for another two-year period unless either party notified the other of its intention to terminate the deal.

Under the agreement, the two countries will exchange information regarding trade, economic cooperation and services.

Appropriate materials necessary for securing the objectives of the Joint Business Council will also be exchanged.

They will submit recommendations necessary for promoting economic relations between the two countries to the respective governments if considered desirable by other chapter in that country.

Arranging business missions to the other party and receiving businessmen when considered appropriate is also stipulated in the umbrella accord.

During discussion at the meeting, the FBCCI president invited Ukrainian investors to invest in Bangladesh.

"Currently, Bangladesh-Ukraine economic cooperation falls far below its potential. During 2004-05, our bilateral trade registered US$ 42.85 million only," he said.

Bangladesh exports dry foods, jute yarn and twine, and tea in bulk while imports vehicles, vessels, live animals, machinery and mechanical appliances.

"There are several opportunities for Ukrainian companies in our market, especially in the sector of machine-building, iron and steel. Exchange of scientific expertise and technology, packaging finished products are potential fields for cooperation," the FBCCI president mentioned.

Nasir also emphasized the kickoff of Bangla-Ukrainian cooperation in pharmaceutical sector and direct flight between the two countries to boost economic activities.

The Association of Humanitarian, Cultural, Economic Relations Ukraine and Bangladesh President, V Shevelev, expressed his interest in investing in the energy sector.

http://www.thedailystar.net/2006/08/06/d60806050256.htm

3 years old BBC News:

BMW defies Dhaka's potholes

By Alastair Lawson-Tancred
In Dhaka

The sight of luxury BMW cars negotiating their way through the pot-holed and notoriously crowded streets of Bangladesh may seem a little incongruous.

But ever since the German car firm opened its Dhaka showroom last week, interest in the vehicles has soared.

Those peering through the showroom windows aren't just bemused rickshaw pullers marvelling at the wonders of German engineering.

At least 50 vehicles have been sold - from $70,000 to $270,000 apiece - since BMW announced it was planning to move into Bangladesh at the beginning of this year.

"We have been amazed at the level of interest," says sales executive Anis Khan. "And it's not just from inquisitive members of the public.

"We have had enquiries from a wide range of people including businessmen, industrialists and the odd politician."

Driven to destruction

All this seems odd in a country where there are few roads in good enough condition to go faster than 50 miles an hour, and where few cars emerge undented from the notorious traffic jams.

On practically every Bangladeshi road there is a frightening competition for space between rickshaws, cars, buses and lorries.

There is no highway code as such. The few traffic lights that work are routinely ignored, and everywhere there are the famous potholes - into which, it is rumoured, pedestrians have been known to disappear.

It doesn't exactly seem the dream market for luxury cars, and yet BMW is the latest of a long line of manufacturers to realise that middle class Bangladeshi spending power can no longer be ignored.

It is now possible to buy the latest Mercedes, Volvos and Mitsubishis from dealers whose premises are every bit as upmarket as the BMW showroom.

"We have to remember that the overwhelming majority of people buying these vehicles won't actually drive them," said Mr Khan.

"They will have drivers who are paid to negotiate the horrors of Dhaka's traffic."

Barmy about BMW

One satisfied customer is businessman Henry Choudhury.

"For me these cars are the best. They're smooth running, efficient and have comfortable seats.

"I realise there's a danger they may get scraped and dented but I've told my driver Morshed that he will get a bonus for every month that he can keep it unscathed."

In fact, business for Dhaka's luxury car dealers is so brisk that demand is now starting to out stretch supply. Many are now selling their vehicles to customers through brochures, which can mean a delay of several weeks for the car to be shipped to Bangladesh.

And while some may feel frustrated at not being able to take immediate possession of their vehicle, they can at least take consolation in the wide range of BMW accessories on sale - from T-shirts to mugs, wallets key rings and travel bags.

The biggest seller? A BMW umbrella, regarded by many wealthy Dhakaites as the ultimate monsoon fashion statement.

http://news.bbc.co.uk/2/hi/business/3092805.stm

Dhaka stocks extend gains

Dhaka stocks maintained gaining streak for the fourth consecutive day on Sunday with turnover touching Tk 52.72 crore, highest since March 9, 2005.
The turnover on the prime bourse hit a 16-month high of Tk 45.15 crore last Wednesday.
The Securities and Exchange Commission chairman, Faruq Ahmad Siddiqi, told New Age on Sunday that good corporate results and the improved
political environment were behind the recent rise in the share prices and turnover on the bourses.
Recently the stock market has been coming out of a long-standing depression, he said.
‘So far we do not get any evidence of any manipulative move behind the rise. However, we are closely monitoring the situation,’ said the capital market watchdog’s chief.
‘Stock market has achieved buoyancy in recent time due to the buying spree from a good number of new institutional investors as well as existing ones,’ said Moin Al Kashem, a stock market analyst.
Low prices of the shares, positive half-yearly earnings reported by most of the companies and relatively peaceful political environment have prompted the large investors to make pre-election investment in the share market, he said.
Recent gains reversed a prolonged bearish trend in the stock market since the second half of 2005.
Moin said rise in the share prices also attracted the small investors and brought many of them back to usual trading.
Liquidity situation on the stock market also improved in recent times as the inter-bank call money rate eased, he also said, forecasting a seesaw movement ahead of the next general election.
Some insiders related the gains to the recent remarks of the corruption watchdog’s chief, warning that the black money holders would not be spared even after legalising money by paying minimum tax.
The strong message might have driven a good chunk of untaxed money into the market, they believe.
Recent rise is normal as the market has bounced back after a long bearish trend, they, however, said.
DSE general index gained 13.72 points or 0.93 per cent to close at 1494.46 on Sunday. In last four trading days, the index advanced by 87.65 points or 6.23 per cent.
DSE20 index, comprising of blue chips, however, shed 11.89 points or 0.82 per cent to close at 1432.59.
Before Sunday’s fall, the index gained 73.93 points or 5.26 per cent in three days.
A total of 204 issues were traded on the DSE on Sunday. Of them, 109 issues advanced, 79 declined and 16 remained unchanged.

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

Dhaka-Phnom Penh sign trade agreement

A trade agreement between Bangladesh and Cambodia was signed in Phnom Penh on August 4.

Senior Minister for Commerce of Cambodia Dr Cham Prasidh and Bangladesh Ambassador to Thailand and Cambodia Shahed Akhter signed the agreement on behalf of the respective governments, an official of the Commerce Ministry said.

Bangladesh’s major export items to Cambodia are—readymade garment, footwear and leather goods, knitwear, pharmaceuticals, table wear, home linen, textile, seafood and marine products, tea, potato, jute and jute goods, light engineering products, spices, cosmetics, ceramic, melamine products and toiletries.

Major import items from Cambodia are—cotton, edible oil, fertilizer, clinker, staple fiber, yarn and capital machinery.

Sources said, the trade agreement would help in further expanding and strengthening trade relations between the two countries.

The agreement will establish the principles of equality and mutual benefit and most favored nation treatment for enhancing economic developments in the two countries.

According to sources, both the countries will take appropriate measures to facilitate, strengthen, consolidate and diversify the trade on a long term and stable basis.

Cambodian businessmen showed interest to enhance imports from Bangladesh, sources said. They also discussed signing of an MOU between the Chambers of Bangladesh and Cambodia.

Leaders of the Cambodian Chambers of Commerce informed the Bangladesh Ambassador that a business delegation team would soon visit Dhaka, sources said.

http://nation.ittefaq.com/artman/publish/article_29744.shtml

$ 418.9m remittance in July

In July, the first month of fiscal year 2006-07, Bangladesh received $ 418.90 million remittance sent by the expatriates.

This remittance inflow recorded a 22.51 percent growth over the corresponding period of the previous fiscal, according to the Bangladesh Bank.

The increased remittance inflow resulted in a healthy position of the foreign exchange reserve as it stood at $ 3.2 billion yesterday.

http://www.thedailystar.net/2006/08/08/d60808050768.htm

Exports clock 21.63pc growth in FY06
RMG, leather, frozen foods contribute to record $10.53b earning

Export earning reached US$ 10.53 billion with a 21.63 per cent growth in 2005-06 fiscal year, thanks to continuous good performances by knitwear, woven garments, leather and frozen foods.

The export volume of the country for the first time also reached double-digit figure in terms of billion dollar-mark fetching $1.88 billion more than that of the previous fiscal year. The country earned $ 8.65 billion from export in the 2004-05 fiscal year.

Significant rise in knitwear, leather, petroleum by-products, textile fabrics, raw jute, jute goods, and footwear contributed to the overall export growth during July-June period in FY06 over the previous fiscal year.

The exports crossed the target of $10.16 billion by 3.61 per cent, according to Export Promotion Bureau statistics.

The knitwear exports grew by 35.38 per cent fetching $ 3.82billion, which exceeded the $ 3.6 billion target set for the period.

Woven products, one of the major export earners, continued to see positive growth, fetching $ 4.08 billion during the period.

Besides, frozen food, leather, petroleum by-products, textile fabrics, bi-cycle, agricultural products also recorded higher export growth.

However, jute goods, footwear, electronics, chemical products, engineering products, melamine tableware, camera parts, home textile recorded growth over the previous fiscal year, but failed to achieve the target.

On the other hand, the export growth of tea, handicrafts, and ceramic products declined and failed to reach the target.

Cut flower posted the highest 187.06 per cent growth which fetched $ 21.07million, followed by petroleum by-products with 152.08 per cent growth earning $88.43 million and textile fabrics with 117.45 per cent growth earning $ 36.88 million.

On the other hand, in the month of June exports earned $ 1.1 billion that is all time single month high, posting a 27.87 per cent growth over the corresponding period of the previous fiscal year.

http://www.thedailystar.net/2006/08/08/d60808050768.htm

EU region emerges largest buyer of Bangladeshi products
Naim-Ul-Karim
8/7/2006

The European Union (EU) region emerged the largest buyer of Bangladeshi products in the fiscal year of 2004-05.
It was revealed in the recently-published Export Statistics Report, prepared by the Export Promotion Bureau (EPB) showing the region-wise trend of exports.
Buyers of other regions in order of' total value of goods were American region, Asian region (Excluding Middle East), Middle East, African region, Oceania East European region.
Meanwhile, an evaluation report on export earning of the eleven months of fiscal 2005-06 observed that the country's 87 per cent export market accounted for 29 per cent in USA, 52 per cent in EU, 1.48 per cent in Canada and 2 per cent in Japan.
Besides, the report also observed that 89 per cent of total export earning included 38.75 per cent from readymade garments, 36.08 per cent from knitwear, 4.37 per cent from jute goods, 2.49 per cent from leather, 1.92 per cent from chemical products, 1.48 per cent from raw jute, and 0.12 per cent from tea.
Of the total exports from Bangladesh during fiscal year 2004-2005 amounting to US dollar 8654.52 million, export to the countries of' EU region stood at US dollar 4621.22 million i.e. 53.40 per cent.
Germany, UK, France, Italy, Belgium and Denmark are the major importing countries of Bangladeshi products among the 25 member states of EU.
During the eleven months of last fiscal 2005-2006 Bangladesh exported US dollar 1595.18 million i.e. 16.95 per cent of the total export to Germany. In the same fiscal, country's export earning from the UK stood at US $ 940.86 million i.e. 10.00 per cent of total earning. Export earning from France stood at US$593.43 million i.e. 6.31 per cent of total earning. In the same period of the fiscal, Italy imported Bangladesh's products worth US $ 375 million i.e. 3.19 per cent of the country's total export earning.
Two other major importing countries of Bangladesh's product in EU are Belgium and Netherlands. During the period under review, country's export earnings from Belgium and Netherlands stood at US $319.27 million and 288.44 million i.e. 3.39 per cent and 3.07 per cent of total export respectively.
Countries of the American region were the second largest buyers of Bangladesh's goods during the FY 2004-2005 and goods worth US dollar 2794.20 million were exported to this region covering 32.29 per cent of total export.
Country's export earnings from USA stood at US$ 2711.58 million during the eleven months from July-May of the fiscal 2005-06 i.e. 28.81 per cent of our total export earnings. USA was the largest buyer of Bangladesh's products compared to the other countries during the period.
The third largest buyer of Bangladesh's products during the FY 2004-2005 were the countries of Asian region (excluding Middle East) and goods worth US dollar 752.09 million i.e. 8.69 per cent were exported to this region. The countries are China, India, Japan, Pakistan, Singapore. During the period the country's exports to Japan stood at US$126.06 million, India 225.52 million, China 58.63 million, Pakistan US$ 52.37 million and Singapore US $ 85.83 million.

http://www.financialexpress-bd.com/index3.asp?cnd=8/7/2006&section_id=1&newsid=33545&spcl=no

Knitwear likely to be major export earner in current fiscal

Knitwear is expected to be a major export earner in the current fiscal. Knitwear exports overtook woven exports in the last quarter of the last fiscal.

Knitwear exports registered a 48 per cent growth and reached $1,134 million while woven exports earned $1,119 million registering a growth rate of 22 per cent during April-June period of the last fiscal compared to that in the previous fiscal, Export Promotion Bureau (EPB) said.

The government has yet not set the total export target including that for knitwear for the current fiscal, said an official of EPB.

Knitwear became the major export earner for the first time in the history of country in April fetching $324 million, according EPB statistics.

According to EPB statistics, knitwear export reduced the earning gap, with woven exports, to $267 million in the last fiscal from $779 million in the previous fiscal.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Fazlul Haque told BDNEWS that to have a one billion dollar export growth in a single sector was truly a milestone, adding that knitwear sector would be a major export earner from the current fiscal.

He hoped that this export trend would continue if internal problems like wage cost, infrastructure cost and electricity problem could be minimised.

Knitwear product exports continued to maintain a robust growth, posting a 35.38 per cent rise to $3,817 million while woven exports fetched $4,084 million in the last fiscal.

Fazlul said that price of knitwear had reduced in the last fiscal due to domestic and international competitions.

He said, ‘We are ready to face any kind of challenge in the world knitwear market if internal problems of the sector can be solved.’

Export earnings from the country’s major Knitwear destinations, especially Germany, the USA, Canada, Greece, and Sweden, during the first nine months of the 2005-06 fiscal surpassed the total earnings of the previous fiscal.

An EPB official said that knitwear exports were continuously finding new markets with widening of its small export base.

During the last fiscal, knitwear exports to destinations like Mexico, Japan, Saudi Arabia, Turkey, Russia and South Korea continuously increased, he added.

Knitwear exports have grown over 30 per cent during the last three fiscals.

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

Pharmaceutical industry growing at fastest space

The country’s pharmaceutical industry is the largest among the least developed countries (LDCs) and growing at 10 percent annually, one of the fastest rate ever witnessed in the past.

The Asian Development Bank said it in a recent review pointing out that exports of the pharmaceutical products to global market are also increasing at the same time at a robust 40 percent annually.

The industry’s market share stood at US$ 500 million last year meeting 96 percent of domestic demand in addition to exporting to over 60 counties.

Bangladesh now produce more than 5,000 registered brands with over 8,000 different dosage in different forms and strengths.

The export items cover wide range of products of all major therapeutic classes and dosage forms. It includes high-technology products like inhalers, suppositories, nasal sprays, injectibles and infusions.

More than 150 companies are producing drugs in the country but the very basic problem is that the manufacturers are still dependent on 80 percent imported raw materials.

But initiatives are in place now to set up new industries to produce raw materials and the country’s pharmaceutical sector will see a further fillip once these factories will start delivery.

The ADB said the pharmaceutical industry here is largely dominated by domestic producers, except a few locally based multinational firms engaging in the production and marketing.

It said the quality and effectiveness of Bangladeshi drugs are widely acclaimed in the global market.

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

Bangladesh exports cross record 10 billion dollar mark

Exports by Bangladesh rose above a record 10 billion dollars in the past fiscal year led by the country's booming textile industry, the government said.

Exports rose 21.6 percent to 10.53 billion dollars in year ended June 30 powered by a record 24 percent export rise in textiles shipments such as t-shirts, jeans and other clothing items, data released by the country's Export Promotion Bureau said on Tuesday.

"Since the country's independence in 1971, this is the highest export growth in our history. And all the credit should go to our ready-made garments exporters," export bureau chief Mir Shabuddin Mohammad told AFP.

Bangladesh, one of the world's poorest nations, made gains under a global textile quota-free regime launched in January 2005 that initially raised concern that large producers such as China would squeeze out poorer nations.

"There were a lot of predictions that the our garments would not be able to compete in a quota-free textile regime. The donors (international aid agencies) were even worried about where our millions of women workers would go to find work," Mohammad said.

Bangladesh has more than 4,200 garment factories that employ millions of workers and are crucial for the economy. But a number of these factories pay low wages and have lax safety standards which prompted violent worker protests in late May through June to call for better conditions.

Apart from textiles, the country's traditional exports such as jute, shrimp and leather also witnessed double digit growth during the year, the bureau said.

http://news.yahoo.com/s/afp/20060808/wl_sthasia_afp/bangladeshtradetextile_060808061542

WTO exemption gives boost to Bangladesh pharma industry


With major Asian producers India and China kept out of competition, Bangladesh, which enjoys the patent rights exemption under the present WTO regime, is racing ahead as a producer and exporter of pharmaceutical products.

The Asian Development Bank (ADB) has commended Bangladesh's pharmaceutical industry as the largest among the 50 least developed countries (LDCs). Its 10 percent annual growth rate is one of the fastest, BSS news agency said quoting an ADB review.

Export of Bangladeshi pharmaceutical products to global market are increasing at a robust 40 percent annually.

The industry's market share stood at $500 million last year, meeting 96 percent of domestic demand, besides exporting to over 60 counties.

Bangladesh now produces more than 5,000 registered brands with over 8,000 different dosages in different forms and strengths, Bangladesh Observer said.

The export items cover wide range of products of all major therapeutic classes and dosage forms. It includes high-technology products like inhalers, suppositories, nasal sprays, injectibles and infusions.

However, even though more than 150 companies are producing drugs in the country, its basic problem is that the manufacturers are still dependent on 80 percent imported raw materials.

Initiatives are in place now to set up new industries to produce raw materials, which will be reflected in further growth in the country's pharmaceutical sector soon.

The ADB said the pharmaceutical industry here is largely dominated by domestic producers, with few Bangladeshi multinational firms also engaging in production and marketing.

It said the quality and effectiveness of Bangladeshi drugs are widely acclaimed in the global market.

Bangladesh is enjoying a patent right exemption of the World Trade Organisation, to continue up to 2016 as a LDC, and it is taking full advantage of it, the ADB said.

Most manufacturers here, however, produce finished patented drugs, with only a few companies involved in producing active raw material known as pharmaceutical ingredients.

The export of the country's pharmaceutical drugs started at first to neighbouring countries like Myanmar, Sri Lanka and Nepal.

But the boom immediately started to spread to regulated markets in Asia, Africa, Europe and the Middle East as the country started to produce quality drugs.

Renowned hospitals and institutions in various countries, including Kenya, Pakistan, Singapore and Sri Lanka are using Bangladeshi drugs for treatment, the ADB said.

There is also the advantage of low-cost labour in Bangladesh, which is sough to be tapped by major multinational companies shifting their production here.

http://in.news.yahoo.com/060809/43/66jbq.html

BANGLADESH'S RMG SECTOR SURGES 24.44 PCT IN FY2005-06


The export of readymade garments grew 24.44 per cent in the 2005-06 financial year, although the sector's contribution to the national exchequer registered a slight fall.

Apparel exporters termed the achievement a landmark success despite a sharp fall in the prices of finished products on the global market.

"The quality of our products and its competitiveness in terms of prices helped the sector achieve such an tremendous success," said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Md Fazlul Hoque.

The export of clothing products grew by 24.44 per cent fetching US$7.90 billion, compared with the 22.54 per cent surge the sector registered last fiscal year in earning $6.41 billion.

In the 2004-05 financial year the RMG accounted for 76 per cent of the nation's total foreign exchange earnings.

This year the RMG sector's contribution fell 1 per cent, with the segment accounting for 75 per cent of foreign exchange in 2005-06.

Increased earnings by frozen food, leather, textile fabrics and agriculture products pushed down the proportional contribution of the RMG industry.

Export Promotion Bureau (EPB) figures revealed the knitwear grew 35.38 per cent, earning $3.816 billion, while the woven garment sector increased by 13.50 percent to fetch $4.083 billion in the 2005-06 financial year.

Despite concern about the viability of the woven garment sector following the phase-out of the Multi-Fibre Agreement on January 1, 2005, the apparel sub-sector is still the nation's top export performer.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president SM Fazlul Haque said the woven garment sector said the strong growth was due to increased orders.

"We received huge orders in July and August, considered to be the peak season. Buyers came to us as there were restrictions on some products of China," he said.

Bangladesh's total export earnings hit a new high in FY2005-06, surging 21.63 per cent to $10.526 billion.

This compares to $8.65 billion earnt in the previous fiscal year.

The knitwear sector alone fetched about $1 billion, due to burgeoning European demand.

"Although the unit price of our products has declined on the international market very sharply, we were confident to increase the volume and we succeeded," Mr Hoque told UNB.

He said Bangladesh has emerged strong competitor in the knitwear sub-sector, due to its quality products, and the development of supportive backward linkages.

"We're now ready to face any kind of challenges," he said, adding that the recent industrial unrest in the industry could threaten future growth.

http://au.biz.yahoo.com/060810/17/u5vp.html

Saifur holds talks with Wolfwitz
WB, IMF laud achievements of Bangladesh

Thursday August 10 2006 08:12:56 AM BDT


World Bank President Dr Paul Wolfwitz highly commended the achievements of Bangladesh in implementing reforms to reduce poverty and accelerate growth, reports BSS.
He said this is the highest (Bangladesh Observer) in South Asia,
despite unfavourable external environment resulting from higher commodity price, particularly soaring oil prices.

He also underscored the need for maintaining the pace of reforms especially in areas vulnerable to external shocks in order to sustain the hard earned macro-economic stability in the country.

The WB president said this while Finance and Planning Minister M Saifur Rahman held a meeting with him on Tuesday in Washington DC.

Saifur also held meeting with Acting Managing Director of International Monetary Fund (IMF) Takatoshi Kato in Washington yesterday. Bangladesh Ambassador to USA Shamsher M Chowdhury and WB Alternate Executive Director Zakir Ahmed Khan were present at the meetings, an official handout said on Wednesday.

During the meeting the finance minister thanked the WB president for the release of the DSC-III and approving the Country Assistance Strategy (CAS) for Bangladesh erlier this year, which envisages substantially higher commitment for the next four years to implement Poverty Reduction Strategy Paper (PRSP).

Saifur Rahman apprised Wolfwitz of the status of the reform agenda undertaken by the present government and the progress toward economic growth and poverty reduction. He said that the present government has always demonstrated its commitment to reforms aimed at pro-poor growth keeping in view the socio- political environment.

The finance minister said Bangladesh is on track in meeting most of the millennium development goals (MDGs) within the stipulated target date. "Besides, the country achieved outstanding successes achieved in social sectors like education, health and nutrition" he added.

He said Bangladesh has been successful in achieving accelerated economic growth which reached nearly 7.0 percent last year.

TH WB president highlighted the importance of continued support of the WB in the form of development support credits. He said the WB will actively support the government in implementing the PRSP. He assured that budget support to the government for implementation of PRSP will continue.

Acting managing director of IMF also lauded Bangladesh government for improvement of macro-economic performance including sustained growth with moderate inflation progress in meeting MDGs and robust growth in exports and remittances.

Saifur Rahman apprised Kato of the measures taken by the government to sustain the achievements already made and also to accelerate domestic revenue mobilization, which has recorded substantial improvement.

The Bangladesh finance minister and the IMF acting managing director agreed that the 5th PRGF review for the release of the next trance of PRGF and trade integration mechanism (TIM) worth about US$100 million will take place early next month.

Kato also hoped that on successful completion of the PRGF by the end of this year, there will be another round of PRGF agreement with Bangladesh very soon.

http://www.bangladesh-web.com/view.php?hidDate=2006-08-11&hidType=TOP&hidRecord=0000000000000000121932

DSE concludes bullish week

Dhaka stocks ended another bullish week with turnover gaining 34.68 per cent in volume and 32.52 per cent in value over the previous week’s close.
Turnover on the Dhaka Stock Exchange rose to Tk 73.08 crore, its highest in more than six years, on Thursday, last trading day of last week.
Market indicator touched Tk 73 crore mark for the first time after turnover of Tk 74.41 crore on July 10, 2000.
Around 35.37 million shares and debentures worth Tk 270.10 crore were traded on the prime bourse last week while around 26.26 million shares and debentures worth Tk 203.82 crore changed hand in the previous week.
The recent gains that reversed a prolonged bearish trend since the second half of 2005 were generally attributed to pre-election investment spree, coupled with a series of positive corporate results and a relatively peaceful political environment.
Liquidity situation on the stock market also improved in recent times as the inter-bank call money rate eased, insiders said.
Fresh funds are coming into the stock market, said Ahmad Rashid Lali, senior vice president of DSE.
Improved liquidity situation at the money market gave respite the leading institutional investors including merchant banks to channel the funds to the stock market, he said.
Lower prices of the stocks, even of the companies with good fundamentals, and good corporate results reported by the companies prompted the large investors to make their pre-election investment in the stock market in a relatively peaceful political environment, said Lali who is also a stock broker.
DSE chief executive officer, Salahuddin Ahmed Khan, on Thursday said the supply of securities to the stock market increased considerably in last one and a half year with a good number of companies entered into the market through initial public offerings and a state-owned company under direct listing.
He said liquidity crisis kept the demand lower and as a consequence prices of the shares went down to their bottom level.
With the improvement of liquidity situation at the money market recently, large investors became active and market achieved upward trend, he said.
Upward trend also drew huge number of small investors into the usual trading, he said.
‘We, however, is closely monitoring the situation to check any manipulative activities, DSE CEO said adding that so far the DSE did not find any manipulative move behind the recent rise.
Throughout last week, DSE general index gained 88.40 points or 5.97 per cent to close at 1569.14 on Thursday.
DSE20 index, comprising of blue chips, however, shed just 0.98 points or 0.07 per cent to close at 1443.50. The index declined first three days of last week due to the profit taking selling pressure from the share holders.
All share price index advanced by 75.07 points or 6.43 per cent to close at 1242.36.
With the rise of prices, market capitalisation on the DSE increased by Tk 1,639 crore last week. DSE market capitalisation stood at Tk 26,396 crore up from Tk 24,757 crore on the last trading day of the previous week.
Dhaka Electric Supply Company topped the turnover leaders last week. The power company’s turnover totalled at Tk 30.24 crore which was 11.20 per cent of total turnover of the DSE last week.
Other turnover leaders were Lafarge Surma Cement, Summit Power, Beximco Pharmaceuticals, Pubali Bank, Jamuna Bank, Heidel Burg Cement, Padma Textile, Rupali Bank and Bd Online.
Alpha Tobacco and Modern Dyeing topped the top ten gainers and losers companies last week.
Alpha Tobacco gained 49.50 per cent price advancement of its share while Modern Dyeing witnessed 13.02 per cent fall.

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

Brown praises Bangladesh economic performance


NEW YORK, Aug 11: Mark Malloch Brown, Deputy Secretary-General of the United Nations, has praised Bangladesh’s economic performance in recent times and observed that the country “had reasons to be proud of such achievements”, reports BSS.
He made the remarks at a meeting with the visiting Bangladesh Finance Minister M. Saifur Rahman on Wednesday evening, a press release said on Friday.
Saifur Rahman briefed the UN Deputy Secretary-General on the measures being adopted to achieve the millennium development goals (MDGs) and poverty alleviation in Bangladesh.
He cited statistics that demonstrated the successes “despite many and varied constraints”.
Malloch Brown also lauded Bangladesh’s constructive role in the United Nations.
He expressed the hope that if called upon to do so, Bangladesh would be able to participate in any future peacekeeping or stabilization operations in Lebanon.
He described the current crisis in Lebanon as “deeply critical” and underscored the need for a speedy diplomatic solution.
Dr. Iftekhar Ahmed Chowdhury, Ambassador and Permanent Representative of Bangladesh to the United Nations, who accompanied the minister, informed the UN Deputy Secretary-General that Bangladesh was following the evolving situation very closely and hoped to be able to discharge any responsibilities that it may be called upon to do. Mahmudul Karim, Economic Minister at the Bangladesh Mission, was also present on the occasion.

http://www.newstoday-bd.com/business.asp?newsdate=#154

Survey detects oil reservoir in Bay
Sunday, August 13,2006

DHAKA: A scientific survey group has found for the first time in the Bay of Bengal a thick sedimentation of elusive oolitic carbonate, which promises prime underground reservoir of oil.
The scientists extracted tiny, light-brown, rounded oolites from a depth of 125 meters off the Sundarbans coast, and found out through sonar map study that sediments accumulated in about 6-meter thick layers over a vast area between offshore blocks 21B and 20B, and beyond.


"But this study was not aimed at exploring mineral resources. Specific and advance studies will be able to determine the actual extent of oolite layers and the potential of oil and gas reserves," said a source close to the survey, conducted by German geo-scientific and natural resources institution BGR and the Bremen University of Germany with partial funding from the US Ocean Drilling Programme.

Six Bangladeshi experts from the navy, Geological Survey of Bangladesh, Petrobangla and Chittagong Port Authorities also participated in the survey that was primarily aimed at studying the sedimentation in the Bay throughout June and July on the basis of a one-page agreement with the government, sources said.

Bangladesh could have obtained detailed geological data from this survey if the agreement was better or done in consultation with local experts. Still, the brief and sketchy sonic and seismic data that the Germans shared with Bangladesh suggest how invaluable this data could be.


The survey also produced seismic data covering more than 1,000km areas. The BGR shared this data with the government in a raw form, which calls for advance scientific analysis and interpretation, for which the country is not equipped.

Sandstone, which highlights potentials of gas resources, was found predominantly in Bangladesh but existence of these highly permeable and porous carbonate rocks was not known before.

Each spherical grain of ooid sand, no larger than 2mm, forms around a nucleus of fecal matter or shell debris in a process similar to that of a pearl's formation. Over time, this oolitic sand accumulates in thick layers that cover hundreds of square kilometers. Upon burial, these layers eventually form a porous carbonate rock that can store large quantities of oil and gas. Between one-third and a half of the world's oil and gas reserves come from underground reservoirs in carbonate rocks, experts say.


Sources quoting survey team leader Dr HR Kudrass said that the oolite layer used to be the beach of southwestern region 20,000 years ago during the ice age.

This region is the largest delta in the world, and its rivers are accumulating sediment at the quickest rate towards a deep sea fan, which is the largest in the world. "Sedimentation thickness at places is 20km," said sources, quoting Kudrass.


This unusual sedimentation should have increased Bangladesh's land by 15 meters a year towards the sea. But as there is a submarine canyon in the southwestern Bay down by the Sundarbans, the sedimentation spreads up to Sri Lanka. The submarine canyon is so deep that it was named Swatch of No Ground (Song) during the British regime.


WEAK DEAL
Sources said that had the foreign ministry consulted with local geological experts before signing its one-page agreement with the BGR, it could have been a much better deal for the country. The BGR conducted the same study twice-- during the nineties and the eighties. This time, the survey team was better equipped.


"Scientific or not, this data is valuable to oil companies. That is why the BGR did not get any permission to study the Indian waters," a source observed. "We don't know where this data will eventually land to. Whatever data we have got out of this study is in raw form, and we won't be able to interpret it as efficiently as the international oil companies do."

The BGR even asked money when the government wished to obtain its data on the delta gathered in the nineties.

"We don't know exactly who gave them previous permissions and why. If we are not benefited from a study, why should we allow foreign countries to scan our region? Even this time, the foreign ministry did not think enough about our interest before signing the agreement."

Sources said that the BGR conducted the same survey in mid-eighties on the basis of an agreement with Petrobangla, which focused more on geological information and extensive data sharing. As a result, Bangladesh was immensely benefited

http://www.southasianmedia.net/index_story.cfm?id=317110&category=Frontend&Country=BANGLADESH

Malaysia to recruit 1.3m Bangladeshi workers
FE Report
8/15/2006

The Malaysian government will recruit nearly 1.3 million Bangladeshi workers in its different sectors. Bangladesh and Malaysian governments have fixed the recruitment cost of a worker at US $1200.
The Malaysian government will recruit a total number of 2.6 million foreign workers in its different sectors including construction, service, factory and plantation, and 'bio metric' methodology will be followed in workers' recruitment.
Malaysian government, after a long time, is going to recruit Bangladeshi workers, and it has made a mandatory provision for its companies and factories that they will have to recruit minimum 50 per cent of their foreign workers from Bangladesh. Addressing a press conference in the city Bangladesh Association of International Recruiting Agencies (BAIRA) president MAH Selim MP disclosed this. The press conference was also attended by BAIRA vice presidents Abdus Sobhan and Safiqul Alam Firoz and joint secretaries Golam Mostafa and Munsur Ahmed.
The minimum monthly salary of a Bangladeshi worker will be BDT 10, 800 in plantation and BDT 24,000 in industry.
This is the first time Malaysian government has introduced biometric system of fingerprint so that unapproved workers cannot go to Malaysia.
"The Malaysian government has made a compulsory provision for the companies and factories that they must recruit minimum 50 per cent of their foreign workers from Bangladesh. This is a unique opportunity for Bangladeshi semi-skilled workers," said Selim.
Asked about extra amounts charged by some recruiting agencies, the BAIRA president said, "It is unethical to take extra amounts. If we receive any specific allegation against any agency we will cancel their membership."
In the name of medical check-up and training of workers the agencies cannot take any amount as the Malaysian government has informed the Bangladesh government that the recruiting agencies need not think of training and doing medical check-up of workers as they will do it there.
"Though the Malaysian government has instructed us not to do medical check up of workers, we must do it. Without check-up if a worker goes and comes back to Bangladesh then it will be a huge loss for his family," said Selim about the medical check-up of workers.
Malaysian government has made a provision that the outsourcing agencies and factories will have to submit their demand of manpower to the home ministry for approval.
And an outsourcing agency can apply for highest 50 workers for a specific company or factory and if the company needs an additional number of workers then it may apply to the home ministry directly.
After checking the submitted applications the home ministry will inform the outsourcing agencies and they will later inform the BAIRA office and BAIRA liaison office in Malaysia, Malaysian high commission in Dhaka, the ministry of expatriate welfare and manpower employment of Bangladesh and the manpower, employment and training bureau.
After receiving approval BAIRA will inform its agencies. Now it has over 700 members. Later the agencies will submit their database-listed workers' names to the BAIRA office, which will then inform the Malaysian government.
After receiving calling visa for workers from the Malaysian government the BAIRA will invite all the workers and take their fingerprints in biometric system so that no worker without calling visa can go to Malaysia.

http://www.financialexpress-bd.com/index3.asp?cnd=8/15/2006&section_id=7&newsid=34330&spcl=no

Dhaka won't accept all conditions set by donors, says Saifur


Tuesday August 15 2006 08:48:39 AM BDT


Finance and Planning Minister M Saifur Rahman said Monday that Bangladesh would not accept all conditions set by its development partners for getting loans and assistance from them, report agencies. (Financial Express)

"Bangladesh's economy is not so bad that we will have to accept all conditions put forward by donors," Saifur Rahman told reporters on his arrival from a week-long visit to Washington where he held talks with the World Bank (WB) and the International Monetary Fund (IMF) officials on the release of credits.

"We will not make 'halal' into 'haram' and 'haram' into 'halal' according to their suggestions," he categorically said.

Saifur went to Washington to talk with the WB and the IMF to make arrangement for the WB's 4th trance of the development support credit (DSC-IV) worth US$ 200 million, and IMF's 6th instalment of the poverty reduction growth facility (PRGF) fund amounting to $97 million as soon as possible.

Saifur Rahman also held meetings with Deputy Secretary of the US Department of the Treasury Robert M Kimmitt and signed an agreement -- a protocol of exchange of ratification instruments of the convention for the avoidance of double taxation and the prevention of fiscal evasion.

He also attended different programmes including exchanging views with the expatriate Bangladeshis there.

The finance minister said the WB and the IFM are highly impressed at the present government's performance in maintaining the country's macro economic stability without adjusting oil price in the local market with the unprecedented oil price hike in the global market.

"They also highly praised the government for continuing reforms in various fields and policy reform, ensuring gender parity and bringing institutional changes in the country," he added.

He said the institutional changes and policy reform implemented in the past five years would help the next governments a lot to achieve rapid growth in the days to come.

He said the development partners also described Bangladesh as a self-reliant upcoming country and highly commended the achievements of Bangladesh in reducing poverty and accelerate growth. "They agreed Bangladesh is on track in meeting most of the millennium development goals (MDGs) within the stipulated target date. Besides, the country achieved outstanding successes achieved in social sectors like education, health and nutrition" he added.

Saifur Rahman said the 5th PRGF review for the release of the next trance of PRGF and trade integration mechanism (TIM) will take place early next month.

He, however, said that the WB and the IMF are little bit concerned about sustaining of the macro-economic stability in long term without adjusting oil price and increasing revenue collection. "But they are not forcing the government to adjust the price of oil price or implement any reform in the country as they are very much considering about the country's socio-political environment.

New investment zones planned

The Board of Governors of Bangladesh Export Processing Zones Authority (Bepza) in its 24th meeting yesterday agreed in principle to set up new investment zones in addition to EPZs to attract more local and foreign investment.

The board of governors approved all the seven items on the agenda of the meeting held at the International Conference Centre (ICC) with Prime Minister Khaleda Zia in the chair.

After the meeting, Bepza Executive Chairman Brig Gen Ashraf Abdullah Yussuf disclosed the items approved at the meeting.

The items are the organogram of Bepza, security outsourcing in EPZs, expansion of Comilla EPZ, Bringing 184-acre land of Chittagong Steel Mills under Karnaphuli EPZ, installation of underground water network in Chittagong EPZ, setting up a container terminal on the Shitalakhya river beside Adamjee EPZ and construction of two hospitals in Dhaka and Chittagong EPZs.

The Bepza executive chairman told journalists that Prime Minister Khaleda Zia would inaugurate Karnaphuli EPZ by the end of this month.

In the meeting, the prime minister appreciated the new Bepza executive chairman for successfully handling the recent unrest in some garment industries in DEPZ and hoped that his efforts would continue to accelerate the progress of the EPZs.

Finance Minister M Saifur Rahman, Industries Minister Matiur Rahman Nizami, Foreign Minister M Morshed Khan, Communications Minister Nazmul Huda, Commerce Minister Hafizuddin Ahmed, State Minister for Power Anwarul Kabir Talukder, State Minister for Shipping Kamrul Islam, State Minister for Civil Aviation Mirza Fakhrul

Islam Alamgir, State Minister for Land Ukil Abdus Sattar, Advisor to the Energy Ministry Mahmudur Rahman and Prime Minister's Political Secretary Harris Chowdhury among others, attended the meeting.

http://www.thedailystar.net/2006/08/16/d60816012917.htm

Tk82.26cr industrial parks for auto, plastic goods industries
BSCIC to implement projects in 4 years

Bangladesh Small and Cottage Industries Corporation (BSCIC) will set up three industrial parks -- two for automobile industry and one for plastic goods industry-- outside the capital at a cost of Tk 82.26 crore.

BSCIC signed two separate Memoranda of Understanding on Monday to this effect with associations of automobile workshop owners and plastic goods manufacturers.

BSCIC Secretary Shams Uddin Ahmed signed the Memoranda of Understanding with Khair Uddin Montu, president of Bangladesh Automobiles Workshop Malik Samity, and AK Iqbal Hossain, president of Bangladesh Plastic Products Manufacturers and Exporters Association.

The projects will be implemented in the next four years under the Annual Development Programme (ADP), a BSCIC press release said.

The two automobile parks will be established at Aminbazar and Matuail in Demra at a cost of Tk 35.30 crore.

The plastic industry park will be established in Darigao area under Keraniganj upazila at a cost of Tk 46.96 crore.

The industrial parks will have infrastructure facilities such as inland road, drain, culvert, electricity, bank, gas connection and telephone network.

http://www.thedailystar.net/2006/08/16/d60816050258.htm

RMG exporters likely to raise product-price to compensate for hike in workers' wages
Shakhawat Hossain
8/20/2006

Bangladesh's garment manufacturers and buying houses have alerted foreign retailers about a possible 10-20 per cent hike in prices of their products.
"We have already sent messages to our international buyers to be prepared for the possible price enhancement of the Bangladesh made RMG products," Bangladesh Garments Buying Association (BGBA) Vice President Iftekhar Hossain told the FE.
The move aims at scuttling the effect of wages rise for the readymade garment (RMG) workers on this vital sector that accounts for nearly 80 per cent of Bangladesh's annual export earnings.
The garment producers are under pressure from both the government and the international buyers to raise the wages and improve the living condition of the workers, who have been waging a campaign, for a hike in their salaries and benefits.
The government has decided to increase the minimum wages of the RMG workers following a recent unprecedented labour unrest in Savar and Gazipur -- the country's main RMG zone.
The price hike of readymade garments will help the country fetch at least additional $ 1.0 billion income in export in the current fiscal year. .
The price hike will not affect the competitiveness of the locally RMG products much as the exporters are still providing the products at cheaper rates than those charged by India, Pakistan and Vietnam, Hossain said.
Abundant supply of un-killed and semi-skilled labourers at cheaper prices has been providing crucial edge of the local RMG exporters over that of others in the international markets.
Hossain said: "The price hike in salaries of those un-skilled and semi-skilled labourers and other issues are yet to be resolved," said Iftekhar Hossain.
The government has formed a wages board in last June and asked it to fix minimum wages by this August. But the board that has already met 17 times without substantial progress has sought two more months.
The big gap between the rates of wages hike suggested by the representatives of labourers and garments owners has raised a doubt about fixing of minimum wages by the deadline of August 31, sources said.
Sources said the garment owners want the fixation of minimum wages at Tk 1300 from existing Tk 950, but the labour representatives have demanded Tk 4800.
If the board agrees to the garment owners' demand it will cost an additional Tk 180 million per month in wages, but it will jump to Tk 1.93 billion if workers' demand is met.
There are roughly 0.5 million unskilled RMG workers in the country, who have been paid Tk 470 million monthly at existing the rate of Tk 950, according to labour ministry officials.
The hike in RMG workers' wages in Bangladesh is just matter of time, said officials at the liaison offices of the reputed international retail houses in Dhaka.
The number of such offices is more than 70 in Dhaka. They have asked their central offices to act as per the changing situation.
An official of a French retailer in Dhaka told the FE that his company had already taken note of an additional cost for the summer products, which will be in the market by October.
The liaison offices of foreign companies and some 2000 local buying houses are playing a major role in the booming local RMG business. They are involved in 75-80 per cent of Bangladesh's annual garment export business.


http://www.financialexpress-bd.com/index3.asp?cnd=8/20/2006&section_id=1&newsid=34955&spcl=no

DSE turnover hits new high

Turnover on the Dhaka Stock Exchange on Monday rose to Tk 79.87 crore as the upward trend that started at the end of July continued.
Share prices on the bourse, however, went down on the day for the profit-taking selling pressure. Market fell after the rise of three consecutive trading days.
Sources concerned said the turnover recorded its highest after 1996, in the year stock market of the country suffered a bubble-and-bust.
‘The situation is different now because after the debacle the country’s capital market has gone through a number of developments in terms of trading system and market growth, said Salahuddin Ahmed Khan, chief executive officer of the DSE.
DSE automated its trading system on August 10, 1998, he said.
He said over the years the supply of securities to the stock market increased greatly but demand remained lower due to liquidity crisis and as a consequence the prices of the shares went down to their bottom level.
Statistics prepared by the concerned department of the DSE showed during the period from January 2005 to August 9, 2006, 19 companies and two mutual funds entered the stock market with 8.08 crore shares worth Tk 599.60 crore.
With the improvement of liquidity situation at the money market recently, large investors became active and market achieved upward trend, said Salahuddin.
The CEO of DSE said two block transactions played a significant role in Monday’s rise of turnover.
60 lakh shares of Beximco worth Tk 24.60 crore and around 6.88 lakh shares of BD Online worth Tk 3.78 crore were traded on the block market on Monday.
DSE general index lost 14.03 points or 0.89 per cent to close at 1563.33 on Monday.
DSE20, comprising blue chips, shed 8.77 points or 0.61 per cent to close at 1436.55.
Market fell on Monday due to the profit taking selling pressure from the investors as they sold their holdings to reap the benefit of previous three days’ rise, stock brokers said.
A total of 205 issues were traded on the DSE on Monday. Of them, 52 issues advanced, 131 declined and 22 remained unchanged.

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

KEFZ starts operation on August 29

The Karnaphuli Export Processing Zone, set up at the now defunct Chittagong Steel Mill Site with an expenditure of Tk 70 crore, will start its operation on Tuesday (August 29).

Bangladesh Export Processing Zone Authority sources said that the prime minister, Khaleda Zia, was expected to inaugurate the EPZ as the chief guest in a function.

The project engineer of the Karnaphulli EPZ, Nurul Akter, said that they were implementing the project to establish the EPZ in two phases adding that 90 percent infrastructure development under the first phase had already been completed.

He also said that 100 industrial plots had been prepared involving Tk 34 crore under the first phase and 111 more plots would be prepared under the second phase of the project by 2008.

The BEPZA sources expressed optimism that the Karnaphuli EPZ would bring foreign investment of Tk 700 crore and create employment opportunities for 50 thousand people when it would go for exporting goods worth more than Tk 250 crore a year.

The Chittagong Steel Mill, located on 222.42 acres of land at the Patenga area in the city, was laid off on July 7 in 1999, after 32 years of its inception, due to incurring with continuous losses.

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

Local RMG unit in Karnaphuli EPZ soon

Arrow Fabrics (Pvt) Ltd, a local company, will establish a readymade garment unit in the Karnaphuli Export Processing Zone.

It will be the seventh manufacturing plant in the Karnaphuli EPZ, a press release of Bangladesh Export Processing Zone Authority (Bepza) said.

Bepza Member (Investment Promotion) Masud Ahmed and Arrow Fabrics Managing Director Masuda Begum yesterday signed the agreement on behalf of their respective sides.

The company will invest US$ 1.43 million with a target of manufacturing 250,000 dozens of readymade garments, including jackets, shirts, shorts, trousers and other dresses.

It will also create employment opportunities for some 1,181 Bangladeshis.

http://www.thedailystar.net/2006/08/23/d60823050769.htm

Eskayef exports drugs to Sri Lanka this month

Eskayef Bangladesh Ltd, the country's leading pharmaceutical company, is going to export medicines to Sri Lanka this month.

As part of the company's massive business initiatives to expand pharmaceuticals products to international market, Eskayef Bangladesh will initially export 12 products to Sri Lankan market.

The products that Eskayef is going to launch in the Lankan market include Esoral tablet, Losectil capsule, Zithrox tablet, Zithrox suspension, Folex capsule, Dialon tablet, Dilator tablet, Facid Cream and Facid ointment.

"As Sri Lankan market has huge demand for drugs, we want to be among the top three pharmaceutical ventures in Sri Lanka by 2010. The company has already applied for registration of 44 more products in Sri Lanka," said A M Faruque, managing director of Eskayef Bangladesh Ltd, at a press conference in Dhaka yesterday.

Gamini S Munasinghe, Sri Lankan high commissioner to Bangladesh, also spoke at the press briefing.

The high commissioner said Bangladesh has huge potential to export drugs to Lanka.

He said as Eskayef is a renowned company, its market operations in Sri Lanka will help strengthen relations between the two countries.

Faruque said, "Eskayef uses most advanced technologies for quality control in every stage of the manufacturing process. For this reason, the company has received very good response from Nepal, Vietnam and Bhutan."

Eskayef, the fifth largest pharmaceutical company in Bangladesh in terms of turn over, is also planning to export products to Myanmar, Hong Kong and Bulgaria, Faruque added.

http://www.thedailystar.net/2006/03/01/d60301050453.htm

Eskayef plans massive market expansion in Sri Lanka

Eskayef Bangladesh Limited, a leading pharmaceutical manufacturer and marketer, as a part of its massive business expansion in the international market, is giving special emphasis on Sri Lanka.
Eskayef Managing Director AM Faruque met Sri Lankan Health Minister Nimal Siripala De Silva in the city during his recent visit and expressed his vision about Eskayef's strong presence in Sri Lanka in the coming days.
De Silva appreciated the quality and packaging standard of Eskayef products and had shown his interest in importing more products from Eskayef.
Sri Lankan High Commissioner in Bangladesh V Krishnamoorthy, Head of Chancery of Sri Lankan High Commission VW Aponsu and Marketing Manager of Eskayef Shagufa Anwar was also present at the meeting.
AM Faruque said, "We have a major growth plan in view in Sri Lanka in the near future. We have already got registration for 25 products and another 45 products are in registration pipeline".
Due to multinational heritage and high quality of its products, Eskayef has already got tremendous response from the physicians of Sri Lanka, he added.
In order to facilitate export to western coun-
tries, Eskayef has taken
up a new project under its wings to establish a state-of-the-art customised pharmaceutical plant at Tongi with a vision of offering newer world-class health care products.
The new facility is being designed and purposefully would be validated to conform to international cGMP (current good manufacturing practice) with a particular emphasis on meeting MHRA standard of the UK for facilitating export to western countries.
'Elomatic', one of the leading European pharmaceutical consultants, would provide technical know-how for this top quality facility.

http://www.financialexpress-bd.com/...d=35250&spcl=no

Eskayef focuses on Indonesian pharma market

Eskayef Bangladesh Limited, a leading pharmaceutical manufacturer and exporter of Bangladesh, focuses on Indonesian pharmaceutical market as part of its massive business expansion in international arena.

"As the cost of medicine in Indonesia is very high, our government is interested to import medicine from Bangladesh because of its high quality and competitive price. I welcome Eskayef to explore this opportunity," said Indonesian Ambassador to Bangladesh Warmas Hasan Saputra in a meeting with AM Faruque, managing director of Eskayef, while visiting Eskayef corporate office in Dhaka yesterday, says a press release.

Reciprocating his interest for possible business alliance with Indonesian pharmaceutical companies, Faruque said, "We are focusing on Indonesia and considering it as a very potential market for our products."

http://www.thedailystar.net/2006/06/07/d60607050865.htm

Firms agree to higher Bangladesh garment prices

August 23, 2006

DHAKA (Reuters) - Most large foreign companies have agreed to higher prices for ready-made garments imported from Bangladesh in a bid to help the industry pay better wages to its restive workforce, business officials said on Wednesday.

Factory owners agreed in June to raise salaries to 1,300 taka ($18.60) within three months after angry workers forced dozens of factories to shut for weeks, they said. Garment workers earn a minimum monthly wage of 950 taka - a third of a farm labourer.

Disgruntled workers demanding higher wages and benefits had burned factories, battled police and attacked vehicles. One worker was killed and more than 150 injured.

Garment industry leaders had said they could pay higher wages only if importers paid more for their products.

"Most of the big firms are willing to raise prices but the bottom line is whether the factories are ensuring social compliances or not," said Qayum Reza Chowdhury, president of Bangladesh Garments Buying Association (BGBA).

U.S. retailers Wal-Mart Stores Inc. and JC Penny have agreed to raise prices on this condition, Chowdhury said.

Garments are Bangladesh's biggest export, bringing in more than $7.9 billion in the year to June 2006. The country has about 4,000 garment factories, employing about two million workers, many of whom toil in dismal and dangerous conditions.

Most of the country's textile factories are poorly built and maintained, many with no emergency exits. Over 100 garment workers were killed in a series of factory accidents last year.

Qayum said the International Labour Organisation had also asked that workers' wages be raised.

The BGBA represents more than 70 liaison offices of foreign firms and some 2,000 local buying houses, which together account for up to 80 per cent of ready-made exports from Bangladesh.

The deal struck in June between the government, factory owners and textile workers provides for higher wages, better job security, trade union membership, weekly holiday, payment for extra work and paid maternity leave.

The workers, however, are asking for a minimum monthly wage of 4,300 taka due to higher cost of essential commodities.

"We have requested the buyers to increase our products' price, without which we cannot raise wages," said S.M. Fazlul Hoque, president of Bangladesh Garment Manufacturers and Exporters Association. "But in a free market we cannot force them. If we try to, they may shift to China or elsewhere."

"We have proposed to our principals (to raise prices) and they have agreed," said Mahboob Kawsar, a director of Ottoconnection Limited.

Complices Sports and Jeans, a French firm that buys up to $12 million worth of textiles yearly through Ottoconnection has agreed to increase prices by up to 10 percent, Mahboob said.

http://www.ndtvprofit.com/homepage/news.asp?id=264569

Current account back to black
Export, import cross PRSP targets in FY06
Asjadul Kibria

The country’s current account has posted a record surplus in the fiscal year 2005-06 on the back of robust growth of remittance and lower deficit in merchandise trade balances.
But the financial account balance turned deficit due to decline in foreign assistance and foreign direct investment in the period under review.
The Bangladesh Bank data showed that current account balance posted a surplus of $572 million, reversing a deficit of $557 million in the year-ago period.
The turnaround in current account balance has greatly cushioned the pressure on foreign exchange reserve from inflating oil import bills, and also gave some breathing space for the exchange rate.
The export earnings and import payments, as showed in the balance of payment table prepared by the central bank, stood at $10.42 billion and $13.30 billion respectively in the last fiscal year, recording a deficit of $2.88 billion.
The merchandises trade deficit was $3.29 billion in the fiscal year 2004-05, which was the highest trade gap in any fiscal year so far.
Both the export earnings and import payments have crossed the target set in the mid-term macro economic framework of the poverty reduction strategy paper.
The MTMF set $9.9 billion as ceiling for export and $13.24 billion for import for the fiscal year 2005-06.
For the export and import figures posted in the balance of payment, however, quoted the ‘free on board’ values that also reduce the value of import around by 10 per cent from the ‘clearing & forwarding’ value.
On the basis of ‘c & f’ value, import payments in the last fiscal year stood at $14.75 billion which was 12.2 per cent higher over $13.14 billion in fiscal year 2003-04.
The service sector trade gap stood at $1.11 billion and for the first time the gap in the trade in services crossed $1 billion level.
Receipts and payments in the service trade stood at $1.29 billion and $2.40 billion respectively in the last fiscal year.
Both the deficits in merchandise and service trades were largely offset by the higher current transfer backed by robust growth in remittance in the last fiscal year.
The current transfer stood at $5.34 billion in the last fiscal year, against $4.29 billion in the fiscal year 2004-05, showed the central bank data.
Of the total transfer, worker’s remittance alone contributed $4.80 billion, up from $3.84 billion in the fiscal year 2004-05.
‘In recent years, remittances have proved to be the cornerstone of the current account balance,’ said the latest issue of the central bank quarterly.
Meanwhile, in the last fiscal year, financial account balance turned a deficit of $24 million against the record surplus of $784 million in the fiscal year 2004-05, showed the central bank figure.
The foreign direct investment dropped by 15.6 per cent to $675 million in the last fiscal year from $800 million in fiscal year 2004-05.
On the other investments, medium and long-term loans dropped to $921 million from $940 million, showed the central bank calculation.
A huge sum of costly suppliers’ credit emerged as a major woo for the country’s economy. The government repaid $805 million as trade credit in the last fiscal year while the net repaid amount was $320 million.
The amortization payments for medium and long-term loans were also higher in the fiscal year 2005-06, worth $489 million, which was $449 million in the previous fiscal year.
The capital account has recorded a bigger surplus of $242 million in fiscal year 2005-06 compared to $163 million in the previous fiscal year.
The overall balance has recorded a wider surplus of $365 million in the last fiscal year against a lower surplus of $67 million in the previous fiscal year 2004-05.
The central bank has attributed the balance to larger surplus in current account and capital account.
The balance of payment table also showed $425 million as errors and omissions in the previous fiscal year.

Poverty drops by 8.9pc in last 5 yrs
FE Report
8/24/2006

The county's poverty rate recorded a 1.78 percentage points fall annually over the past five years, reveals the latest Household Income and Expenditure Survey (HIES).
The HIES survey conducted by the Bangladesh Bureau of Statistics (BBS) in the last calendar year said poverty in the national level came down to 40.0 per cent in 2005 from 48.9 per cent in 2000.
The survey that reflects changes in consumption patterns between 1991-92 and 2005 revealed that poverty reduction in the rural areas was faster than in the urban areas.
The poverty rate in the rural areas dropped by 1.7 percentage points a year in the last five years while the rate of decline was 1.36 percentage points a year in the urban areas.
Poverty rate in the rural areas fell to 43.8 per cent in 2005 from 52.3 per cent in 2000. The poverty in urban also declined to 28.4 per cent in 2005 from 35.2 per cent in 2000, added the survey.
Local experts expressed opposing opinions on the survey results that were approved by the finance ministry a couple of days ago, sources said.
A high official of the Bangladesh Institute of Development Studies (BIDS) said the results of the survey are not consistent with the gross domestic products (GDP).
The GDP has not increased as the way the survey report has suggested the rate of reduction in poverty, he said, adding that the fall in poverty rate should always be consistent with the growth of the GDP.
Ananya Raihan of D-Net, however, said of most the latest results of the HIES survey are acceptable though those are not consistent with the GDP growth rate.
He pointed out that contribution of many sectors has not been considered in calculating the GDP growth. "If contributions of those sectors are considered, the GDP growth rate will be higher," he added.
The survey that covered 11 food and non-food items, 10,080 households and 48,969 people also revealed that a greater level of poverty reduction took place in Dhaka, Chittagong and Sylhet divisions.
During the period the rate of poverty came down to 32 per cent from 46.7 per cent in Dhaka, 34 per cent from 45.7 per cent in Chittagong and 40 per cent from 42.4 per cent in Sylhet.
But there are no significant changes in poverty situation in Barisal and Khulna divisions.
Poverty in Khulna reached 45.7 per cent from previous 45.1 per cent while in Barisal, it came down to 52 per cent from previous 53.1 per cent

http://www.financialexpress-bd.com/index3.asp?cnd=8/24/2006&section_id=1&newsid=35395&spcl=no

Saudi prince wins Rupali bid for $330m
Khawaza Main Uddin

Saudi Prince Bandar Bin Mohammad Abdur Rahman Al Saud has won the bid to buy the state-owned Rupali Bank with an offer of $330 million, paving way for the first major takeover of a local bank by a foreigner.
The Privatisation Commission, the statutory regulatory body responsible for divestment, on Sunday announced the Saudi business tycoon’s firm as the highest bidder beating the $100 million offer of the Domestic Investors’ Consortium.
The financial offer by the Saudi prince warded off the commission’s fear of getting lower price of the nationalised commercial bank due to political turbulence, ending a long-drawn process of privatisation, especially legal battles that repeatedly disrupted the sell-off bid since the decision was taken in March 2005.
On hearing the progress on privatisation of the bank and particularly selection of the Middle Eastern investor, the share price of the Rupali Bank touched Tk 1,700, marking a single-day gain of Tk 424.50 Sunday.
Two more bidders — MAA International Investment Limited of Malaysia and JJ Finance Ltd of the Untied Kingdom — were declared disqualified on technical and financial grounds, said the commission chairman, Enam Ahmed Chaudhury.
The commission selected the four bidders in the final round of tender process.
The statutory body under the Prime Minister’s Office opened the tender Sunday and found the Saudi investor as the most qualified bidder for acquiring the government’s 67 per cent shares in Rupali Bank only a day before the expiry of permissible timeframe.
A High Court Division bench of the Supreme Court stayed the tender process of the Rupali Bank, issuing an order on last Monday, which was on Tuesday put on hold by the Appellate Division of the Supreme Court for seven days ending today.
The commission at a meeting today is expected to discuss the selection of the Saudi prince for endorsement by the approval committee.
‘The file of the approval committee’s recommendation will be sent to the prime minister for a final approval,’ the commission chairman informed newsmen. If everything permits, the handover ceremony of the bank will be held some time next month, he added.
Multilateral lending agencies, which had been insisting on quick privatisation of the bank, once prescribed the government to infuse more funds and also wanted to join the bank after divestment with equity.
However, officials concerned said the Saudi prince might come up with more investment initiatives in Bangladesh as his oil-rich country has been enjoying a huge budget surplus, thanks to petroleum price-hike and problem of investing money in the West after the September 11, 2001.
According to the rules of the tender, the selected party would take over assets and liabilities of the bank and make re-capitalisation of the Rupali Bank by injecting fresh funds to make it vibrant.
The Rupali Bank has a total of 495 branches across the country and 25,25,000 deposit accounts and 1,07,000 lending relationships.

DAP Fertiliser Company likely to start operation by month-end

Prime Minister Khaleda Zia is likely to inaugurate the newly-established Di-Ammonium Phosphate (DAP) Fertiliser Company Ltd in Chittagong by the end of this month.
Sources in Bangladesh Chemical Industries Corporation (BCIC) said trial production in the newly-established factory comprising two units, DAP-1 and DAP-2, has already started.
Both the units will produce a year around 500 thousand (five lakh) tonnes of DAP fertiliser, equal to about 400 thousand tonnes of Triple Super Phosphate (TSP) and 200 thousand tonnes of urea fertiliser, the sources said.
They, however, mentioned that with the two new units going into operation, TSP import would decline a year by 500 thousand tonnes and urea import, by 200 thousand tonnes.
Presently, the country imports 250,000 tonnes of DAP and 450,000 tonnes of TSP annually to meet the local demand.
According to sources, around 1,500 people will get employment opportunities directly and indirectly with the start of production in these two units.
The monthly production capacity of both the units is 264,0000 tonnes each with the per day production capacity of 800 tonnes each. Both the units will produce 18 per cent nitrogen and 46 per cent phosphorous fertiliser each.
Besides, the Triple Super Phosphate Company Ltd., under the BCIC produces every year around 220 thousand tonnes of SSP fertiliser and 65 thousand tonnes of TSP fertiliser.
The total implementation cost of the two units was over Tk 10.30 billion (Tk 1030 crore), of which over Tk 5.1 billion was spent for the DAP-1 and over Tk 5.19 billion for the DAP-2.
Of the total cost of the DAP-1, over Tk 3.14 billion was in foreign currency and the remaining Tk 1.96 billion came from the Bangladesh government.
For implementation of the DAP-2 project, the total cost was over Tk 5.19 billion, of which over Tk 1.3 billion came from Bangladesh government and the remaining amount of over Tk 3.88 billion came as grant assistance by the Japan International Cooperation Agency.
The Chinese firm, Messrs Complant China, completed the DAP-1 construction work while Messrs Toyo Engineering Corporation and Mitsui and Company Ltd of Japan completed the DAP-2 construction work.
In a meeting of the Executive Committee of National Economic Council (ECNEC) on April 24, 2001 the then government decided to construct the DAP-1 and DAP-2 units.
The meeting approved the DAP-1 project involving Tk 3.93 billion and the DAP-2 project involving Tk 4.52 billion. The DAP project was later dropped in 2001 by the incumbent government upon its assumption of office, on the ground that the former government had assigned a Japanese company and a Chinese company to construct the DAP units without inviting international tenders.
Later, due to pressure from Japan and China, the present government, however, resumed the construction work of the two units. But the construction cost then increased by Tk 1.8 billion, said the source.
With the DAP Fertiliser Company Ltd going into operation, the number of the country's fertiliser factories will stand at eight. The other factories are: Jamuna Fertiliser Company Ltd, Chittagong Urea Fertiliser Ltd, Zia Fertiliser Company Ltd, Urea Fertiliser Factory, Natural Gas Fertiliser Factory Ltd, Polash Urea Fertiliser Ltd and Triple Super Phosphate Company Ltd.

http://www.financialexpress-bd.com/index3.asp?cnd=8/26/2006&section_id=3&newsid=35585&spcl=no

Textile makers eye $10b export by 2010

BTMA seeks execution of taskforce suggestions by one month
Star Business Report

Textile makers hope $10 billion annual export by 2010 if the suggestions of a high-profile taskforce are rapidly implemented.

Welcoming the government's prompt action on preparing the 12-point taskforce report, they yesterday sought implementation of the recommendations within a month.

“As Prime Minister Khaleda Zia has given directives to the agencies concerned to go for necessary action to make into reality the suggestions of the report prepared by the taskforce on textile sector headed by Textile and Jute Minister Shahjahan Siraj, we are hopeful of its immediate implementation," MA Awal, chairman of Bangladesh Textile Mills

Association (BTMA) told a press briefing at the BTMA office in the capital.


The Prime Minister's Office issued the directive on August 22 following the submission of the report by the taskforce to the PMO. With a view to developing the textile sector, the taskforce was formed in 2005.


The taskforce in its report suggested maintenance of the existing bank loan and investment ratio at 70 percent and 30 percent and fixation of the lending rate at 9 percent for the sector.


The suggestions made in the report included financial assistance for all the textile sub-sectors on a priority basis, duty-free import facilities for dice-chemicals, sizing materials and spare parts, raising cash incentives to 10 percent from five percent within the next ten years and assistance to establish high-tech park, RMG Village, Industrial Park, API (active pharma ingredients) Park and Effluent Treatment Plant.


The report also proposed an increase in income tax from 5 percent to 15 percent gradually in a time span of 15 years instead of continuing tax-holiday facilities.


Awal in his reaction to the taskforce suggestions told journalists that they would help sustain the existing investment in the textile sector of the country.


The BTMA chairman in this context expressed apprehension that an organised group is as active in the textile sector as the group put its ill efforts in the RMG sector to destabilise the industries.


On a query, he said that the textile leaders are aware of the group's ill motive and admitted that the workers wages should be raised in a rational manner.


BTMA leaders M Jamal Uddin, Omar Faruk, Akteruzzaman Mondal, Ahmed Ali, Mahbub Hossain, M Billah and Mizanur Rahman were also present at the briefing.

http://www.thedailystar.net/2006/08/29/d60829050371.htm

Local co to invest $4.31m in Adamjee EPZ

M/s Maa Knitting and Dyeing Industries Ltd (MKDIL), a cent percent Bangladeshi-owned company, is going to invest $4.31 million ($43.1 lakh) to set up a factory in Adamjee Export Processing Zone.

The proposed plant is likely to manufacture 2,700 tonnes of knit fabrics annually for ready made garments, and also create employment opportunity for 233 Bangladeshis.

Bangladesh Export Processing Zones Authority (BEPZA) General Manager (Investment Promotion) S Mahmud Yunus and MKDIL Managing Director Mohammad Hanif Monday signed a lease agreement to this effect on behalf of their respective organisations.

Among others, BEPZA Executive Chairman Ashraf Abdullah Yussuf, Member (Engineering) Prasanta Bhushan Barua, Member (Finance) AKM Mahbubur Rahman, Deputy General Manager (Investment Promotion) M Fazlur Rahman Bhuiyan, Manager (Public Relations) Nazma Binte Alamgir and Manager (Investment Promotion) Tanvir Hossain were also present at the signing ceremony.

http://www.financialexpress-bd.com/index3.asp?cnd=8/30/2006&section_id=7&newsid=36025&spcl=no

Sonamasjid to function as full-fledged land port soon

Sonamasjid Land Customs station, the second largest revenue-earning land customs station in the country in Chapainawabganj, is going to function as a full-fledged land port soon.

According to officials concerned, the station will be transformed into a full-fledged land port through formal opening within the next two weeks.

Customs officials said the land customs station was opened in the 1991-92 fiscal and the amount of revenue earnings through the station is cumulated to be Tk 909.38 crore.

In the first fiscal of its launch, Tk 12.23 lakh was earned as revenue from the station while the amount was around Tk 140.14 crore in the fiscal year 2005-06.

The government had set a collection target of Tk 151 crore for the last fiscal but the collection was around Tk 140.14 crore. The target is fixed at Tk 180 crore for the current financial year.

Officials said the government has undertaken a development project to transform the country's 11 potential land customs stations into full-fledged ones through Bangladesh Land Port Authorities.

In the first phase, implementation works on the four stations -- Sonamasjid, Hilli, Banglabandha and Chirir Bandar -- are in the final stage.

The Panama Sonamasjid Port Link Ltd, a private firm, has implemented the project of Sonamasjid land customs station on 'build-operate-and-transfer (BOT)' basis.

Director of the firm Ashraful Alam Rashid said all sorts of required infrastructures were constructed and developed on 18.3 acres of land based on the 49:51 ratio terms and conditions of the agreement signed between the government and the firm.

As per the accord, the port was scheduled to formally open on September 10, Rashid added.

Convener of Sonamasjid C&F Agent Association Latifur Rahman said revenue earnings would double with the opening of the station as a full-fledged land port.

Besides, restriction order on import of 46-category items through the port due to its infrastructure problem would be withdrawn that would also contribute a lot to enhancing revenue earnings to a great extent, Latifur added.

http://www.thedailystar.net/2006/08/31/d60831050471.htm

First local clinker plant may go into production by December
Mahmudur proud of BoI's role to encourage investment

Country's investment board chief has expressed pride in his role in encouraging foreign and local entrepreneurs to invest in Bangladesh.
Mahmudur Rahman, executive chairman of the Board of Investment (BoI), said, "Many people termed me an agent of foreign companies while some of them suggested that I should be the president of foreign investors' chamber. But, they should know that the BoI's role is to encourage the foreign entrepreneurs as well as the private sector of the country to invest here."

Rahman, also energy adviser, was addressing yesterday a signing ceremony between Nitol-Niloy Group and Laxmi Engineers of India in Dhaka.

As per the deal, a plant will be set up at Chattak in Sylhet to produce clinker, a basic raw material for cement.

Laxmi will provide machinery to the Nitol-Niloy to set up the country's first locally owned clinker plant titled Niloy Cement Clinkerisation Industries Ltd. Bijoy Sharma, managing director of Laxmi Engineers, and KM Zahid Uddin, chief executive officer of Niloy Cement Clinkerisation, signed the agreement on behalf of their organisations.

Citing the statements made by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Bangladesh Chamber of Industries (BCI) on Tuesday, Mahmudur Rahman said the chamber leaders said that the government is charging more for gas from the domestic investors than the overseas investors. "I wonder where they got this absolutely wrong data," he said.

He further said prior to the quota phase-out some 'pundits' of the country predicted that Bangladesh's garment industry would collapse due to drastic decline in the item's export. "But, at that time I was always debating with the pundits that nothing like this will happen. And after the quota phase-out pundits' prediction proved wrong," he added.

Speaking at the function, Nitol-Niloy Group Chairman Abdul Matlub Ahmed said, "We hope we can start our production by December this year and the produced clinker will be supplied only to the Niloy Cement Factory."

He said initially Nitol-Niloy will set up a plant partially with 400 tonnes capacity per day at a cost of Tk 26 crore while the plant will be set up full-fledgedly costing Tk 111 crore.

Presently, the country has to import almost all of its demand for around 60 lakh tonnes of clinker annually.

Matlub also urged the government to waive import duty and tax on limestone, which is used to produce clinker.

Among others, Economic and Commercial Minister of Indian High Commission in Dhaka DN Sreevastava spoke at the function.

http://www.thedailystar.net/2006/08/31/d60831050269.htm

Nitol to produce clinker locally

The Nitol group has ventured into clinker processing industry, to be the country’s second basic cement raw material supplier after the multinational cement giant Lafarge Surma, the first that is locally owned.
The latest concern of the country’s leading industrial group Niloy Cement Clinkerisation Industries will produce clinker at its plants at Chhatak of Sylhet, procuring limestone from the bordering Indian mine-rich state Meghalaya.
‘With 400-tonnes per day capacity, the first unit of Niloy will go into operation by December next,’ announced, Matlub Ahmed, chairman of the Nitol Group, on Wednesday, signing the plant supply contract.
KM Zahid Uddin, CEO of Niloy, and Bijoy Sharma, proprietor of the Indian supplier Laxmi Engineers, signed contract at a ceremony at Hotel Sheraton, attended by Energy advisor Mahmudur Rahman and commercial councillor of the Indian embassy DN Srivastava.
Matlub said Niloy’s first unit would cost Tk 260 million while total cost of the project, to have three other similar capacity units in phases, would cost Tk 1,115 million.
Rising value of clinker, whose price almost doubled to $52 per tonne in a couple of years, lured Nitol to venture into clinker business, Matlub said.
The demand of clinker some 6 million tonnes at present growing at 18 per cent per year are met through imports while Lafarge, that will start production soon, have capacity of about 1.2 million tonnes.
The government-owned Chhatak cement, a composite 0.2 million tonne clinker and cement project, is a very insignificant market player, observed Nitol’s boss.
Matlub said output from their clinker plants, which would be financed by their group concern—Fidelity Assets and Securities, would entirely be consumed by Nitol’s several cement grinding mills, already in operations.
The country has about 70 cement grinding mills including several multinationals.

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

Local firm to invest $4m in Adamjee EPZ

A local business house Scandex Group, also known as M/s Scandex Knitwear Ltd, is going to set up a knit garment unit in Adamjee Export Processing Zone with an investment of US$ 4 million.
The garment plant is expected to create employment opportunities for 2020 Bangladeshis, a Bepza press release said yesterday.

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (Bepza) and M/s Scandex Knitwear on Tuesday in Dhaka.

S Mahmud Yunus, general manager (Investment Promotion) of Bepza, and Farid Ahmed Patwary, managing director of Scandex Knitwear, signed the deal on behalf of their sides while Ashraf Abdullah Yussuf, Bepza executive chairman, among others, was present.

http://www.thedailystar.net/2006/08/31/d60831050976.htm

Scandex knitwear to invest $4m at Adamjee EPZ

Bangladeshi Scandex Group, is going to invest $4 million to set up a knit garments factory in Adamjee export processing zone.

Scandex Knitwear Limited will manufacture annually 5 lakh dozens of T-shirt, 1.5 lakh dozens of polo shirt and 1 lakh dozens of Fleece shirt.

BEPZA General Manger S Mahmad Yunus and Farid Ahmed Patwary, Managing Director of Scandex Knitwear Company signed the lease agreement on behalf of their respective organisations on Tuesday.

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

Forex reserve crosses record $3.55b

The country's foreign exchange reserve crossed record US$3.55 billion mark yesterday.

Huge earnings, mainly from exports and remittance, contributed to the flow of foreign exchange reserve, sources at Bangladesh Bank said.

The foreign exchange reserve stood at $3.557 billion on Wednesday as increasing deposits of funds were made by the commercial banks, particularly by the nationalised commercial banks (NCBs) through their foreign exchange clearing accounts with the central bank, sources added.

http://www.thedailystar.net/2006/08/31/d60831050875.htm

Knitwear exports to surge this fiscal, reports BKMEA

At the conference held at Dhaka Reporters' Unity (DRU), Fazlul Haque, President, Bangladesh Knitwear Manufacturing and Exporters Association (BKMEA), revealed that the knitwear exports are expected to earn around US $4,876 million during this fiscal year, which will record a leap of $3,500 million as compared to the last fiscal’s income.

This meet was attended by President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Mir Nasir Hossain Bangladesh Chamber of Industries (BCI) A K Azad and DRU Shafiqul Karim alongwith General Secretary Shahed Chowdhury.

Whereas all of the delegates participated in the talks, Hossain informed that Bangladesh registered 21 perecent rise in exports during the last fiscal and advised to provide sufficient electricity to continue this climb.

http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=22481

DSE turnover hits Tk 80.92cr

Turnover on the Dhaka Stock Exchange (DSE) yesterday reached Tk 80.92 crore, the highest after 1996's bubble and bust.

Earlier on August 21, the DSE witnessed its highest turnover after 1996 with Tk 79.87 crore.

Market analysts said the institutional investors like banks and financial institutions, which play important role in keeping the market vibrant, were more interested in investing money in the market yesterday.

They also attributed the recent upward trends mainly to pre-election buying spree, coupled with a series of positive corporate results.

Besides, they said liquidity situation on the stock market also improved in recent times as the inter-bank call money rate eased, which encouraged the institutional investors including merchant banks to channel their funds to the stock market.

"Fresh funds are coming into the market," said a DSE broker. With the improvement in liquidity situation large investors have become active, he added.

Along with the turnover, the indices also went up. The DSE General Index rose by 21.89 points or 1.39 per cent to close at 1587.07 points while the DSE All Share Price Index increased by 25.52 points or 1.97 per cent to close at 1321.01 points yesterday.

A total of 75,36,261 shares of 199 issues worth Tk 80.92 crore changed hands on the DSE yesterday. Of the issues traded, 122 closed in gains, 56 suffered losses and 21 remained unchanged.

Trading on Chittagong Stock Exchange (CSE) closed higher yesterday with the gainers dominating the losers.

The CSE All Share Price Index increased by 69.90 points or 1.88 per cent to close at 3783.41 points.

The CSE-30 Index also shot up by 55.21 points or 1.71 per cent to close at 3277.39 points.

A total of 102 issues were traded yesterday. Of them, 69 gained, 24 declined and nine remained unchanged. A total of 3,257,562 shares Tk 17.46 crore changed hands on the bourses.

http://www.thedailystar.net/2006/09/01/d60901050268.htm

Bangladesh jeans look to be
global market leader

Kazi Azizul Islam

Bangladesh emerges as the most competitive source of denims and looks set to be global market leader on the back of robust export growth both in US and EU, say market analysts and industry people.
Trousers, mostly jeans, topped the country’s export basket in the last fiscal, fetching $2.07 billion, which was 42 per cent higher than the previous year’s earning.
Global market reports reveal that Bangladeshi trouser makers are beating fast their competitors in the US and EU markets and grabbing significant market shares.
According to the US commerce department, exports of cotton denim trousers increased 126 per cent in terms of volume. Bangladeshi exporters doubled their share to 2.33 per cent in the US market in 2005 and commanded over 5 per cent share in the first quarter of the 2006.
During the period, share of number one supplier Mexico shrank to 37 per cent from 43 per cent in 2005, while supply from the second biggest exporter China dipped to 1.93 per cent from 6.45.
If the trend continues, Bangladesh would have at least 10 per cent share in US denim trousers market by the yearend, analysts say.
Price competitiveness and interim restrictions on Chinese garments have helped Bangladesh gain foothold in the global denims market.
In the first quarter of 2006 Bangladeshi exporters sold per dozen of trousers at $78 in the USA, against $99 of China and $102 of Mexico.
Export performance in the European market is also impressive. The latest report from the European Commission shows Bangladesh had consolidated its leading position in EU’s jeans market during the first half of 2006.
‘We see a brighter future for Bangladeshi trousers and denims as those are very competitive,’ said Pearl Kerlsson, chief executive of Bangladesh operation of H&M, a top global retailer especially in EU market.
Globally denim products have a $70 billion worth annual export market, said an executive of the Bangladesh Garment Manufacturers and Exporters Association and the global buyers were rushing to Bangladesh after the expiry of the quota regime, finding most competitive prices.
‘We are undoubtedly the most competitive denims suppliers and this is why more buyers are diverting from other countries,’ said Abdus Salam Murshey, the immediate past vice- president of BGMEA.
Salam said his Envoy Denim, with a daily stitching capacity of 4,000 dozens trouser, is booked with advance orders. Bright prospects inspired him in venturing into fabric production.
Envoy’s Tk 100 crore plus modern denim unit will go into production soon. At least one dozen of others invested more than Tk 1000 crore during last one year in the sector, Salam said.
Anisul Islam Mahmud, chairman of the county’s largest denim fabric producer- Shasha Denims- said local production capacity crossed 200 million meters, which is now adequate.
‘Bangladesh heads to be a top supplier in the global denim market,’ said Mahmud, a former foreign minister of the country.

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

Textile export earning to
rise to $15b by 2011

Agence France-Presse . Dhaka

Bangladesh manufacturers forecast Saturday that textile exports would double to more than 15 billion dollars in five years as the country profits from a quota-free global trade regime.
Textile exports posted a record 24 percent increase to 7.9 billion dollars in the year ended June 30, as manufacturers’ prices proved highly competitive under the quota-free regime launched on January 1, 2005.
‘Last year we had tremendous growth. The quota-free textile regime has proved to be a big boost for our factories,’ said S.M. Fazlul Hoque, president of the Bangladesh Garments Manufacturers and Exporters Association.
‘We’re confident we can now keep the growth momentum intact and double our exports to more than 15 billion dollars in the next five years,’ he told reporters in Dhaka.
Bangladesh textile factories were initially written off as a sector headed for disaster after the withdrawal of quotas that had given its exports guaranteed access to major markets like the United States.
Multinational financial institutions like the World Bank and International Monetary Fund had said the country faced more than a 30 percent drop in exports in the first year after quota withdrawal because it was feared the industry was not sufficiently developed to compete on a global scale.
They also predicted massive social chaos from a fall in export trade as garment factories account for 40 percent of the country’s industrial jobs. More than 85 percent of their 2.2 million workers are women.
But Hoque said a combination of low wages and caps on Chinese textile exports had led to Bangladesh’s ‘impressive’ performance.
‘We can now compete with Chinese products. Our products also have become more competitive on the world market. Of course, the safeguards on Chinese textiles by America and the European Union helped us a lot,’ he said.
But one international trade expert expressed caution, saying ongoing labour unrest over the low wages that have contributed to Bangladesh’s export success could derail growth. The sector was shaken by violent protests in late May and June over poor pay that left two people dead.

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

American jeans, now made in Bangladesh!
Sunday, 03 September 2006

Dhaka, Sep 3 - Jean may have originated in America, but Bangladeshi brands are now invading Western markets as Dhaka hopes to corner 10 percent of America's multi-billion jean market.

'Envoy' and 'Sasha' are among the Bangladeshi brands that have made their presence felt in the US and in the European Union nations, the New Age daily reported Sunday.

Cheap labour and competitive prices have made Bangladesh a world leader in a market that is estimated at $70 billion, it said quoting a major exporter of the clothing item, market analysts and the chief of a major western retailing chain.

Trousers, mostly jeans, topped Dhaka's export basket in the last fiscal, fetching $2.07 billion, which was 42 percent higher than the previous year's earning.

'Global market reports reveal that Bangladeshi trouser makers are beating fast their competitors in the US and EU markets and grabbing significant market shares,' says the report.

While India, another major exporter does not figure in the newspaper's reckoning, New Age says that Bangladesh has beaten Mexico and China, thanks to some interim restrictions placed by authorities in those countries.

According to the US commerce department, Bangladeshi exporters doubled their share to 2.33 percent in the US market in 2005 and commanded over 5 percent share in the first quarter of 2006.

During this period, the share of Mexico - the number one supplier - shrank to 37 percent from 43 percent in 2005, while the supply from China - the second biggest exporter - dipped to 1.93 percent from 6.45 percent.

If the trend continues, Bangladesh would have at least 10 percent share in the US denim trousers market by the yearend, analysts said.

In the first quarter of 2006, Bangladeshi exporters sold at $78 per dozen of trousers in the USA, against $99 of China and $102 of Mexico.

Export performance in the European market is also impressive. The latest report from the European Commission shows Bangladesh had consolidated its leading position in EU's jeans market during the first half of 2006

http://www.nerve.in/news:25350014476

Fresh RMG factory to generate 2,631 jobs

Messrs Ocean Jeans Limited (OJL) and Bangladesh Export Processing Zones Authority (BEPZA) signed an agreement in Dhaka recently.

Messrs Ocean Jeans Limited, will invest US $2.6 million to establish a readymade garment factory in Chittagong Export Processing Zone (CEPZ).

Company will annually manufacture 2.5 million pieces of RMG products, including men's, ladies' and kids' jeans and casual wear.

This venture is expected to generate 2,631 jobs.

http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=22748

Karnaphuli EPZ goes into operation today

The Karnaphuli Export Processing Zone here in Chittagong, the eighth export processing zone in the country, goes into formal operation today.
The EPZ on the site of now closed Chittagong Steel Mills Ltd at North Patenga targets an annual export of $750 million.

The latest EPZ will create employment opportunities for over 52,000 Bangladeshi nationals after the completion of the zone by 2009.

Prime Minister Khaleda Zia is scheduled to inaugurate the EPZ, where a total of 211 industrial plots will be developed on 222.43 acres of land in two phases at a cost of Tk 84 crore.

The implementation of the project's first phase on 74 acres of land at a cost of Tk 34 crore is going on in full swing.

So far 100 plots have been developed and 24 of them have already been allotted to set up seven industrial units, Brig Gen Ashraf Abdullah Yussuf, executive chairman of Bangladesh Export Processing Zones Authority (Bepza), told a press briefing here yesterday.

The Bepza chief said investors have proposed to invest some $45.84 million, of them $38.23 is foreign direct investment (FDI), in the seven units, which will create around 9,000 jobs for Bangladeshi nationals.

http://www.thedailystar.net/2006/09/12/d60912050462.htm

PM to open Karnaphuli EPZ today

Prime Minister Khaleda Zia will inaugurate the Karnaphuli Export Processing Zone in Chittagong today (Tuesday).

Government took decision to turn the closed Chittagong Steel Mills into Export Processing Zone with a view to accelerate the economic activities of the country. Karnaphuli EPZ is the 8th EPZ of the country.

The EPZ on 222.42 acres of land is situated in North Patenga, 5.6 km away from Chittagong Port, said a BEPZA press release.

Sixty percent work of the project has already been completed and the rest will be done after formal inauguration. Total plots of the project will be 211. In the first phase, 100 plots have been prepared on 74 acres of land at a cost of Tk 3399.78 lakh.

Meanwhile, 24 plots have already been allotted. BEPZ has so far sanctioned seven industrial units in Karnaphuli EPZ, of which two are fully foreign, two joint ventures and three Bangladeshis.

These are Sri Lankan Kenpark Bangladesh Apparels, Taiwanese Yogotex Fabrics, Thai-Bangla Bright Star, Hilland-Bangla Denim Expert, Bangladeshi Liss Jeans Manufacturing, Shah Amanat Accessories and Arrow Fabrics. Their total proposed investment is US$45.844 million with employment opportunity to 8,878 Bangladeshis.

The industrial units will produce knitting and textile goods, readymade garments and its accessories, electrical equipment, home appliances and miscellaneous items.

Under the first phase, the proposed investment of Karnaphuli EPZ is Tk 135.00 crore and probably 12,500 Bangladeshi nationals will get employment opportunity of which 75 percent are female.

After completion the EPZ will have 70 industrial units where estimated investment will stand US$ 350.00 million creating employment opportunities for about 52,000 Bangladeshi nationals.

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

PM opens 2 fertiliser units and Karnaphuli EPZ

Prime Minister Khaleda Zia yesterday inaugurated two DAP (di-ammonium phosphate) fertiliser factories and a new export processing zone (EPZ) in Chittagong.

One of the DAP factories has been built by a Chinese firm and the other by a Japanese company in the Chittagong Urea Fertiliser Ltd (CUFL) complex.

The prime minister opened the two units of DAP Fertilizer Company Ltd by by commissioning the production of DAP fertiliser for the first time in Bangladesh.

The DAP-1 project, involving Tk 510.64 crore, has been funded jointly by the governments of Bangladesh and China and constructed by Chinese company Complant China. The factory has the capacity of producing 500 tonnes of fertiliser a day.

Involving a cost of Tk 519.64 crore, the DAP-2 project, jointly funded by Bangladesh government and JBIC, has the capacity of manufacturing 500 tonnes of fertiliser a day. Toyo Engineering Corporation and Mitsui Ltd of Japan constructed the unit.

"DAP has the quality to meet the demand for both TSP and urea. So, farmers will not have to buy TSP and urea separately as they can meet the requirements of the two fertilisers by using DAP," said an expert at the newly-built factory.

The two new units will produce around 5 lakh tonnes of DAP fertiliser annually, which is equivalent to 5 lakh tonnes of TSP and 2 lakh tonnes of urea fertiliser.

"As a result, yearly import of 5 lakh tonnes of TSP and 2 lakh tonnes of urea will be reduced which will save a huge amount of foreign currency," according to an official.

The raw materials of DAP-1 are phosphoric acid, ammonia, and sulphuric acid while of DAP-2 are phosphoric acid, ammonia and silica. Ammonia and sulphuric acid are available locally while phosphoric acid has to be imported.

The PM visited the two units and watched the production process. Local MPs and investors were present during the inauguration.

Later, the prime minister inaugurated the newly-built Karnaphuli Export Processing Zone, set up on 222.42 acres of land, on the premises of the closed-down Chittagong Steel Mills at North Potenga on the outskirts of the port city.

Total plots in the project will be 211, drawing an estimated investment of $350 million and creating jobs for 52,000 Bangladeshi citizens. Annual export target of the factories in the EPZ has been set at $750 million.

http://www.thedailystar.net/2006/09/13/d6091301022.htm

Exports post 26.42pc rise in July of FY07

Export earning reached US$1.143 billion in the first month of the 2006-07 fiscal year posting a 26.42 percent growth over the same period of the previous fiscal, thanks to good performance by woven garments, knitwear, leather and home textile.

The country, however, fetched 0.79 percent lesser than the amount targeted at $1152.50million from export during the period.

Significant rise in knitwear, frozen foods, light engineering, home textile, agro-processed food contributed to the overall export growth in July of the 2006-07 fiscal over the same period of the previous fiscal, according to Export Promotion Bureau (EPB).

The knitwear sector showed outstanding performance in the month of July. The item's export grew by 31.19 percent fetching $ 452.95 million, which exceeded the target set for the first month. With 24.57 percent growth, woven products, one of the major export earners, continued to see the positive growth fetching $ 451.91 million during the period.

"We are the highest exporters during the period and also have been able to exceed the target of woven garments earnings at the onset of the fiscal ", said Fazlul Haq, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

"The performance is outstanding for the knitwear sector. But it could be better if the unrest of the apparel sector did not occur," he said.

$ 51.93 million was earned from export of frozen food, another major foreign exchange earner, registering a 6.68 percent growth during the period.

Light engineering products, including motor parts, iron chain, fetched 21.33millon showing a growth of 319.88 percent over the target of $11.99 million during the month of July.

"The shortfall is not significant if we review the overall performance," a high official of EPB said, expecting to achieve the target in case of continuation of the present trend.

Product diversification and maintaining global standard can help increase the country's export in the days to come, he felt.

Textile fabrics worth $ 18.12 million were exported during the period registering the highest 279.87 percent growth.

Jute goods, leather, raw jute, textile fabrics, petroleum by- products saw positive growth during the period compared to the same period of the last fiscal, but all these products have failed to achieved the target set for July in FY 2006-07.

Leather fetched $ 25.96million during the period showing a 38.53 percent growth. Raw jute and jute goods exports also rose by 112.75 and 4.82 percent in the first month of the current financial year.

Pharmaceuticals, chemical fertiliser, tea, ceramic, melamine did not see expected growth during the period.

Agricultural products, including vegetables and tobacco, worth $ 10.98 million were exported during the period, but failed to achieve the target of $11.99 million during the period.

Export volume rose 22.42 percent while price index dipped 4.00 percent during the first month of the current financial year.

http://www.thedailystar.net/2006/09/14/d60914050161.htm

Pran to export $1.5m products to Ghana

Pran Exports Ltd (PEL), a concern of Pran Group, will export products worth $1.5 million to Ghana in the next one year.

An export agreement to this effect was signed yesterday between the PEL and Ghana-based Transit Stop Over Ltd at Dhaka Reporters Unity.

Hasan Mahbub of the PEL and Nana Fii Agyeman of Transit Stop signed the deal on behalf of their companies while Eleash Mridha, executive director of Pran, and Kamruzzaman Kamal, general manager (Marketing), among others, were present.

"Under the deal, we will import juice, soft drinks and confectioneries", Nana Fii said, adding that in near future the company might import spices, pickle, jam and jelly from Pran as these products are witnessing increasing demand in Ghana.

Executive director of Pran said, "In our product line we have already 170 items, which are being sold in local and foreign markets."

"As there is no standard lab facilities in Bangladesh, we are facing problems in testing our products before exporting those to the EU markets", he said, stressing the need for a standard testing laboratory and a designated authority to issue health certificate.

The Pran officials also informed the signing ceremony that the company exports its products to 65 countries in Asia, Europe, Africa and Australia.

http://www.thedailystar.net/2006/09/14/d60914050363.htm

Aristopharma signs deal with APC for its new plant

Aristopharma Ltd, a leading pharmaceutical company of the country, has recently signed an agreement with a renowned pharmaceutical consulting firm, the Asia Pacific Consultants Pvt Ltd (APC) of Australia for its new pharmaceutical plant to be built at Rajendrapur.

Chairman and Managing Director of Aristopharma Ltd MA Hassan and Director, Engineering Services of APC Albert Ooi signed the agreement on behalf of their respective organizations.

Md Mahboob Hassan, director of Marketing and Commercial, Mahmud Hassan, director of Production, Shahid Hassan, director of Finance and Administration, Noor Hossain, Product Promotion Manager; Ashish Khan, manager of Engineering of Aristopharma Ltd and Nayeem Saifur Rahman, country manager and Wayne McKenzie, Operations Specialist of APC were also present on the occasion.

Spread over more than 10 acres of magnificent landscape the new plant would be built as per the cGMP guidelines of PIC/S.

PIC/S (Pharmaceutical Inspection Cooperation Scheme) is the co-operative arrangement among 29 regulatory authorities including US FDA, UK MHRA, TGA Australia, most of the countries of Europe, Canada, Singapore and Malaysia.

APC will be involved in total designing and implementation of this new project. The plant once completed, would be the first PIC/S compliant manufacturing facility in this part of the world.

Apart from usual tablets, capsules, creams, or suspensions, the plant will have dedicated facilities for cephalosporins, steriles, hormones and steroids, metered dose inhalers, lyophilised injections, anti-cancer, anti-HIV and infusion products.

http://www.financialexpress-bd.com/index3.asp?cnd=9/15/2006&section_id=7&newsid=37628&spcl=no

Overseas jobs for Bangladeshis up 40 percent


Overseas jobs for Bangladeshis rose by 40.85 percent in the past eight months of 2006, compared with those of the corresponding period of the previous year, local daily The Financial Express reported Thursday.

During the past eight months, 223,289 persons went abroad with jobs, including 4,761 defense personnel, compared with 158,376 of the corresponding period of the past year, the recently-published statistics of the Bureau of Manpower, Employment and Training (BMET) revealed.

Over 4.37 million Bangladeshis have gone abroad with jobs since 1976.

The country-wise trend of manpower export reveals that the Middle East countries are the major overseas job markets for the Bangladeshis.

So far 2,167,396 people have gone to Saudi Arabia with jobs. Of them, around 55,682 persons went there during the last eight months.

The United Arab Emirates (UAE) has so far created 619,839 jobs for the Bangladeshis, including 66,655 in the last eight months.

Over 455,176 persons have so far been employed in Kuwait, 98, 105 in Qatar, 66,343 in Iraq, 53,747 in Libya, 125,908 in Bahrain, 244,185 in Oman, 15,835 in Brunei, 21,077 in Jordan and 4,015 in Lebanon.

On the other hand, over 269,157 Bangladeshis have so far been employed in Malaysia, 17,594 in South Korea, 134,775 in Singapore, 438 in Ireland, 5,777 in the United Kingdom, 462 in Laos, 4,201 in Mauritius, 2,403 in Italy, 1,327 in Spain, 637 in Madagascar, 468 in Namibia.

Besides, around 63,443 defense personnel have joined 52 United Nations peace-keeping missions in 12 countries since 1988, of which more than 10,000 soldiers are currently employed.

According to the BMET, of the total overseas job-seekers, 4 percent are professionals, 33 percent skilled, 16 percent semi- skilled and 47 percent unskilled

http://english.people.com.cn/200609/14/eng20060914_302783.html

ACU trade hits record $16.42b
Country’s export registers 18pc growth in eight months

Total transactions routed cumulatively through the Asian Clearing Union during January-August period of 2006 have crossed the total trade volume of 2005.
The latest issue of the Asian Clearing Union Newsletter, published in Tehran this week revealed that during the eight months of 2006, ACU’s total transaction stood at $16.42 billion.
The January-August transaction has increased by 55 per cent over the same period of last year when the total transaction stood at $10.56 billion.
And in the whole year of 2005, the total trade transaction was $16.399 billion, which was the highest in a single year since the inception of the union’s operation till then.
But, Bangladesh’s trade with the partner countries of the union has recorded a mere 2 per cent growth during the period under review, showed the ACU data.
During January-August period of current year, Bangladesh’s total transactions with ACU stood at $1.53 billion that was $1.50 billion in the same period of 2005.
ACU groups Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan and Sri Lanka, providing the member countries with a simple payment arrangement to settle bills of intra-regional transaction through central banks on a multilateral basis
During the period under review, Bangladesh’s export to the member countries, however, increased by 18 per cent amounting to $97 million which was $82.1 million in the same period of 2005.
The import from the member countries showed a marginal rise to $1.43 billion in the current year from $1.42 billion in the same period of last year.
The ACU report also showed that only in August, Bangladesh Bank was the largest debtor in the system.
The debit and credit under the system generally reflect a country’s import from and export to other member countries of the union where payment has to be made bilaterally.
In two-way trade, Bangladesh has made 5th largest transactions within the system settled by it’s central bank—Bangladesh Bank.
Pakistan’s total trade volume has almost doubled during the period under review mainly due to record 114 per cent growth in import from the member countries in total.
The ACU data showed the State Bank of Pakistan has settled some $1.18 billion in January-August of 2006 in total, registering 94 per cent growth over the same period of 2005.
India’s two-way trade with the member countries registered 50 per cent growth in eight months of 2006 over the same period of last year.
The Reserve Bank of India’s total transaction stood at $7.14 billion during January-August period of current year which was $4.76 billion in the same period of 2005.
The combined export of India to the other member countries has registered 30 per cent growth while import from the union members also increased to 73 per cent.
Iran’s total trade within the system has registered 76 per cent growth during the period under review as the total amount stood at $4.79 billion which was $2.75 billion in the eight months of 2005.
The ACU statistics showed that Iran’s import from the member countries declined by 6 per cent while export registered a huge 86 per cent growth.
Sri Lanka’s total transaction increased by 83 per cent during the period under review, mainly spurred by 90 per cent growth in import.
The main objective of the clearing union, which started its operation in November 1975, is to promote trade among the member countries through making the transaction easier, economising the use of foreign exchange reserves and minimising transfer costs.

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

Russians keen to import jute, leather from Bangladesh

Russian Charge d Affaires Vladimir T Dzhunkovskiy visited the residence of the honorary consul of Ukraine in Bangladesh and Chairman of Bashundhara Group Ahmed Akbar Sobhan at Gulshan in the city recently.
He was accompanied by his wife and Md Arifur Rahman, Chairman of Dreamland Group of Companies. They met Sobhan and Sayem Sobhan, managing director of Bashundhara Group.

Sobban welcomed Dzhunkovskiy and his team mates and exchanged views on bilateral issues particularly in respect of relationship between Bangladesh and Russia.

They also discussed trade, economy and investment. Dzhunkovskiy said that the entrepreneurs of his country were interested to import some essential products from Bangladesh like jute, pharmaceuticals, leather and other goods.

http://www.financialexpress-bd.com/index3.asp?cnd=9/20/2006&section_id=7&newsid=38195&spcl=no

Exports thru' 19 trade missions fetch $8517.54m

9/22/2006

About $8517.54 million Bangladeshi products were exported through 19 trade missions in 17 countries across the world during the last fiscal year of 2005-'06, reports BSS.
Commerce Minister Hafizuddin Ahmed Thursday gave the figure in the Parliament while replying to a question from treasury bench member Mohammad Nurul Huda.
The minister said that 19 trade missions were actively working in 17 countries including two both in the USA and India to increase the country's trade abroad.

http://www.financialexpress-bd.com/index3.asp?cnd=9/22/2006&section_id=1&newsid=38475&spcl=no

Lafarge Surma starts cement production

Lafarge Surma plant at Chhatak has started production of cement. After successful operation of the vertical raw mill and the kiln, the cement factory at the plant site commenced operation Friday.
Earlier, the kiln was fired successfully following which production of clinker was started last month.
French company Lafarge, world leader in building materials, along with Spanish cement maker Cementos Molins, has set up the state-of-the-art cement manufacturing plant at Chhatak, Sunamganj.
It is the country's first fully integrated dry process cement plant in the private sector.

http://www.financialexpress-bd.com/index3.asp?cnd=9/23/2006&section_id=7&newsid=38527&spcl=no

Bentasa Apparels to invest $7 lakh in KEPZ

A Bangladeshi company, M/s Bentasa Apparels (Pvt) Limited, will set up a readymade garment factory in Karnaphuli Export Processing Zone. The fully local owned company will invest $703,000 and create employment opportunity for 1210 Bangladeshi nationals. It will manufacture annually 2.5 million dozens readymade garments, including shorts (cargo and basic), swim shorts, pants (cargo and basic), woven boxer, trouser and boxer, shirt and blouse, T-shirt, polo shirt and FLC jackets, a BEPZA press release said Friday. Masud Ahmed, member (Investment Promotion) of BEPZA and Belayet Hossain, managing director of M/s. Bentasa Apparels (Pvt) Limited, signed the lease agreement.

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

Epic Group Opens C.I.P.L.
Epic Group strengthens Asian manufacturing base with new state of the art garment manufacturing facility in Bangladesh

HONG KONG, Sept. 25, 2006 -- The Epic Group, headquartered in Hong Kong, announced today that it will open a new state of the art garment manufacturing facility in Dhaka, Bangladesh in early October 2006. The new facility, Cosmopolitan Industries Pvt. Ltd. (C.I.P.L.), a wholly owned subsidiary of the Epic Group, will be the largest stand alone garment manufacturing plant in Bangladesh with 500,000 sq. ft. of fully air conditioned manufacturing space.

C.I.P.L., located 30 minutes from the Dhaka airport, will have a production capacity of close to 50,000 garments per day, and finishing capacity of 60,000 garments daily in a highly advanced wet processing area, as well as 20,000 units of capacity using the latest in wrinkle free technology. C.I.P.L. has also invested in 20 Japanese computerized embroidery machines to complement the existing design and manufacturing capabilities.

"This is an exciting step forward for the Epic Group," said Ranjan Mahtani, CEO. "The opening of C.I.P.L. will bring a new class of manufacturing to the Bangladesh fashion industry, and after 25 years of experience in this market, we are pleased to be able to make such a positive contribution."

The Epic Group currently manufactures garments for major international brands and retailers, and with the addition of C.I.P.L. will be producing in excess of 3 million garments per month. Mahtani and his two managing partners Dinesh Virwani and Sunil Daryanani attribute the continued growth to a major emphasis on fabric innovation, product development, cutting edge technology and design. Ashok Melwani, Scott Felder, and Jeff Bergus, manage the USA market for Sales, Merchandising and Design.

The Epic Group was incorporated in 1971 in Hong Kong, and currently has international offices located in China, Vietnam, Bangladesh, USA and United Kingdom.

Source: http://www.ereleases.com/pr/20060925003.html

Let's keep our hands crossed and pray for the economic growth of Bangladesh in the near future. With big time neghbors such as India, Thailand, Malaysia and China, I hope Bangladesh could take the opportunity in benifiting from this growth same as the Philippines has always been doing.

Let's keep our hands crossed and pray for the economic growth of Bangladesh in the near future. With big time neghbors such as India, Thailand, Malaysia and China, I hope Bangladesh could take the opportunity in benifiting from this growth same as the Philippines has always been doing.

well said. I think Bangladesh is on it's way up. Let's hope it happens sooner rather than later.

Natural gas engines to be built in Bangladesh thru' joint venture

Malaga-based Advanced Engine Components (AEC) has announced plans to assemble natural gas (NG) engines in Bangladesh, after signing a memorandum of understanding with Inter Baraka Holdings Motors Ltd.
The two companies will form a joint venture, to be named IBAEC Engine Ltd., which will import the base NG engines from ACE's Chinese production customers, for assembling in Bangladesh, said a press release yesterday.

AEC recently signed an agreement with China's third largest automotive manufacturer Dongfeng Nanchong Automobile Co Ltd. to develop a natural gas engine compatible with Euro-3 emission standards.

The joint venture company will import base natural gas engines from ACE's original equipment manufacture customers in China and incorporate ACE's NG vehicle system at the company's facilities in Bangladesh.

The NG engines will be produced for both the Bangladesh and export markets.

IBH is part of the Inter Baraka Holdings group. IBH produces only CNG powered vehicles. Their product range includes TARO city buses and mid city buses, RAINO highway buses and KENDO trucks.

According to the MOU, IBH will provide land, buildings and other infrastructure while ACE will provide technical knowledge, support and services. IBH will fund all local operating costs.

The final shareholding of the joint venture company will be determined when project cost evaluations are completed and a formal joint venture agreement expected to be signed in November 2006.

Initial production capacity of the joint venture is planned for 200 to 300 NG engines per month.

The press release mentioned that Bangladesh has significant NG reserves and is building significant NG refuelling capacity for NG vehicles. The import of NG base engines and the ACE NGVS as raw materials will save the joint venture company up to 30 percent in local taxes.

IBH selected ACE due to its world leading NGVS and OEM contracts in China. ACE will benefit from its shareholding in the joint venture company together with the ongoing supply of NGVS and other specialised engine components to the rapidly expanding NG market in Bangladesh.

http://www.thedailystar.net/2006/09/29/d60929050354.htm

Various dev schemes reduced poverty in greater Rangpur
BSS, Rangpur

The grip of abject poverty has been lessened in 35 upazilas of grater Rangpur district with the implementation of a number development projects during the past five years.
Official sources said distribution easy-term and interest free loan and providing training to unemployed youths on various trades, distribution of allowances among the needy, farming of crops in a diversified manner, pisciculture, rearing of cattle and poultry birds and social afforestation under the government's initiative have helped hundreds of ultra-poor to get rid of the cycle poverty.The sources said the river erosion and flood-hit people in Rangpur, Nilphamari, Lalmonirhat, Gaibandha and Kurigram have now changed their fates and achieved self-reliance as a result of the programme.
Officials in the district administrations today said as per the directives of Prime Minister Begum Khaleda Zia, each poor or distressed family was provided with TK. 5,000 to TK.20,000 under the risk reduction project (RRP) in the areas. The TK.50-crore Char Livelihood Project (CLP) being implemented in 28 upazilas of the region has already yielded excellent results for eradicating poverty. The government is also implementing another TK. 50-crore special project to create job opportunities for the ultra-poor people of 12 districts in the country, including the five districts of greater Rangpur.
Besides, the TK.4.60-crore poverty eradication project being implemented from October last in five selected upazilas of greater Rangpur has yielded very positive results. Each of the beneficiaries under the project was provided with TK.5,000 to TK.10,000 easy-term loan and training for proper utilization of the money on self employment programme in the districts.
The ongoing TK. 341.90-crore north-west crop diversification project has brought about a revolutionary change in the rural economy ushering in a new hope for the small, marginal, landless and affluent farmers of these districts.
The people are producing a huge quantity of 30 selected varieties of high- yielding cash crops and fruits under the project in the areas and many of them have already changed their lots.
The Rajshahi Krishi Unnayan Bank (RAKUB) has introduced several projects including a special easy-term loan programme with adequate funds called "prevention of advanced selling of crops" for the poor, small and marginal farmers. The programme has been undertaken for the poor to overcome seasonal job crisis.
Besides, all other ongoing income- generating and social welfare activities by various government departments and non-government organizations (NGOs) including CARE-Bangladesh, USAID, World Food Programme (WFP) and other donor agencies are also playing very important roles in achieving a sustainable self-reliance by the poor and distressed people of the areas, the sources said.

Source: http://www.thebangladeshtoday.com/people%20&%20place.htm

Manufacturing output posts 12.5pc growth in FY06

Despite rate hike and power crisis, country’s medium and large manufacturing sector posted double digit growth in the last fiscal year 2005-06 thanks to the resilience of the sector.

According to the Bangladesh Bureau of Statistics, the general index of industrial production (manufacturing) stood higher at 327.09 points in the last fiscal year recording 12.5 per cent growth over fiscal year 2004-05.

The growth of the quantum index of production was 11 per cent in the fiscal year 2004-05, showed the BBS data.

The major sub-index of the QIP that comprises ‘jute, cotton, woven apparel and leather’ posted 19.2 per cent growth. This sub-index constitutes about 39 per cent of the overall movement of the QIP.

The Asian Development Bank, in its quarterly update report on Bangladesh economy, earlier said that concerns about the impact of the phasing out of multifibre arrangement on manufacturing have not been reflected.

‘Outperforming many competing countries, garments and knitwear exports of Bangladesh continue to maintain strong growth. However, towards the end of FY06, widespread labour unrest engulfed the garment sub-sector causing concerns,’ it added.

In reality, the export performance of the RMG in last fiscal year showed that there was little impact on the production and operation of the leading export earning industry.

Export earnings of woven garments and knit garments registered 13.50 per cent and 35.50 per cent growth respectively in the last fiscal year over the previous year.

Bangladesh Bank Quarterly, based on nine months data, earlier said that despite the seasonality in the RMG related product demand in the world, the production of both the large and medium scale manufacturing industries particularly food, knitwear, cotton textile, leather footwear, pharmaceuticals, cement, plastic products and ceramic increased substantially.

‘One reason for maintaining the industrial growth within the power crisis is entrepreneurs resort captive generators to continue their business and export,’ said a business leader.

He, however, added that captive power generation has actually increased the cost of doing business and without improvement of power supply it would be almost impossible to continue uninterrupted production.

The ADB also echoed the same observation. ‘When power supplies are unreliable, manufactures have no alternative but to either accept lower productivity or invest in backup generation capacity,’ said the ADB’s quarterly update.

‘Small enterprises, which cannot afford backup power, had no alternative but to shut down production during prolonged load shedding and power outages,’ it added.

The statistical bureau data further showed that ‘wood product including furniture’ sub-sector registered 20.28 per cent growth although it contributes very little to the manufacturing sector.

The data also showed that ‘fabricated metal product’ posted 9.64 per cent growth while ‘paper and paper products’ 7.54 per cent and non-metallic products 7.42 per cent growth. These three sub-sectors contribute around 12 per cent of the total QIP, as per old-weight estimation.

In fact, the BBS is yet to revise the QIP which is based on 17 years old base-year of 1989-90 and also old weights of the sub-indices.

More than a year back, BBS decided to revise the quantum index by redistributing weights to different sub-sectors and also increase the number of samples for survey.

The central bank, however, in a parallel calculation use both the old and new weights to measure the more reliable scenario of the manufacturing output. For instance, against the weight of 38.2, it used 68.1 for the ‘jute, cotton, woven apparel and leather’ sub-sector. In a similar vein, weight for ‘food, beverage and tobacco’ decreased to 9.7 from 22.1.

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

Bangladesh closes trade deficit with India by 14pc
Exports rose 68pc in 2005-06
Monjur Mahmud

The country's trade deficit with India narrowed by around 14 percent in the last financial year when exports rose sharply and imports declined moderately.

Exports to India shot up by 68 percent, amounting to $241.96 million in fiscal 2005-06. In the preceding year, they stood at $143.66 million only.


On the other hand, imports from India dropped by around 8 percent, totalling $1,868 million in the last financial year from $2,025.78 million in FY 2004-05, according to Export Promotion Bureau (EPB) statistics.

The trade deficit with the neighbouring country ballooned to a record $2,003 million in 2003-04. However, it came down to $1,882 million in the following year and $1,626 million in FY 05-06.

"Exports to the northeastern states of India increased substantially in the last financial year," Mir Sahabuddin Mohammad, vice-chairman of Export Promotion Bureau (EPB), told The Daily Star.

Explaining, he said the banks in the northeastern India earlier could not open letters of credit (L/Cs) for imports from Bangladesh, discouraging the potential importers. But now they can open L/Cs, which is a step forward in facilitating trade between the two countries, he noted.


Besides, EPB had organised several exhibitions in India and received a good response from the Indian importers and buyers, observed the EPB vice-chairman adding there are demands for Bangladeshi products including toiletries, cosmetics, melamine, fish, leather and ceramics in these Indian states.


Some non-tariff barriers like mandatory testing required by India, inadequate banking facilities and poor infrastructure at the land ports are hindering Bangladesh's export growth to India, local exporters said.


India deliberately tries to stall import from Bangladesh, as its land customs officials are not informed about the preferential market access given to Dhaka by New Delhi, according to a study jointly carried out by a Bangladeshi and an Indian chamber.


"It is almost impossible to export products to India if the exporters have to undergo cumbersome and cost-incurring certification procedures," the study styled "Enhancing the Trade and Investment between Bangladesh and Northeast India" pinpoints how difficult it is to export to India.


Conducted by Chittagong Chamber of Commerce and Industry (CCCI) and Tripura Chamber of Commerce and Industry (TCCI), it also cites examples of different goods having difficulty entering the Indian market.


In FY 2005-06, India restricted import of jute products from Bangladesh by pushing up the import duties substantially and by imposing other non-tariff barriers. The action was meant to stem the import of jute products from Bangladesh that rose by more than 500 percent during April-November period of that fiscal.

The trade between Bangladesh and Northeast India through informal channels is many times higher than that done through formal channel.

It is widely believed that the total volume of unofficial trade between the two countries is more than $2 billion annually and of that amount, over one-third occurs between Bangladesh and Northeast India.

Though routes and channels for formal trade between the two countries are limited, the scope for informal trade is unlimited due to the porous nature of common border.

http://www.thedailystar.net/2006/10/06/d6100601022.htm

this seems like a very exciting time for Bangladesh. Economy seems to be doing well despite the shortages of power.

this seems like a very exciting time for Bangladesh. Economy seems to be doing well despite the shortages of power.

You are right Tmac..its quite amazing how Bangladesh is managing to make such progress despite power shortages and labour unrest.In each of the first two months of the current fiscal,the nation's export earnings stood above 1 billion US dollars...if this continues,then our exports may as well stand over 12 billion US dollars in this fiscal year..and all these...when our power plants are tripping,trade unions are carrying out violent protests,and our political parties are fighting each other.

US anti-dumping move boosts Bangladesh shrimp exports

Export of Bangladesh's frozen food to the United States has received a boost following anti-dumping measures taken by that country against some major shrimp producers.

According official figures, frozen food export to the USA rose to US$ 160 million in fiscal 2005-06 from $149 million in 2004-05 and $126 million in 2003-04.

The exports of frozen food were $80 million, $78 million and $80 million over the same period in the European Union excepting Belgium. Its export to Belgium was $96 million, $84 million and $94 million respectively in 2005-06, 2004-05 and 2003-04.

The country fetched $390 million in 2003-04, $420 in 2004-05 and $459 million in 2005-06 through frozen food exports.

Officials said there has been a steady increase in frozen food export of the country. This is mainly due to rise in export to the United States, they said.
They, however, said the frozen food export to the European Union has remained mostly steady. The export growth to EU countries has not risen because of technical barriers imposed by those nations.

"The technical barriers and other compliance-related issues are hampering the growth of frozen food export to the EU countries," said one exporter.
The EU countries continue to be sensitive to compliance issues, forcing the country's frozen foods extorters to seek increased shipments to the USA.
Earlier, the EU was the main export-destination for Bangladesh's frozen food, the second largest foreign exchange earner after the readymade garment sector.

While talking to the FE, Vice Chairman of the Export Promotion Bureau (EPB) Mir Shahabuddin Mohammad said the country has an excellent opportunity to export its frozen food to the US market as other major exporting country has been facing anti-dumping barriers by the US.

The US has imposed anti-dumping duty on import of frozen food from India, Thailand and Vietnam. But Bangladesh's duty free access to the US has helped increase in the overall export volume to that country, said Touhidul Islam, Vice President of Bangladesh Frozen Foods Exporters Association (BFFEA).

"Our value added products have got an enormous response in the US market that makes the export volume considerably higher," he said. Asked whether the presence of antibiotic -- nitro furan -- in prawns is reducing the volume of export to the EU market, he said only sweet water prawns, which is 30 per cent of the total export of frozen food, are vulnerable to such antibiotics.
The US market has not imposed any restriction for presence of such antibiotics, which have very little effect on human body, he added.

EU trade Adviser Zillur Hye Razi feared that this year the export of frozen foods might decline as a number of shrimp consignments were sent back from the EU for reason of non-compliance with food safety directives.

The frozen food exporters should give more importance to nitro furan issues for maintaining smooth flow of export to the EU, he said. Against the backdrop, the BFFEA has imported the nitro furan-detecting machine recently to comply with the EU directives.

http://www.financialexpress-bd.com/index3.asp?cnd=10/7/2006&section_id=1&newsid=40081&spcl=no

Inequality deepens
Rich-poor gap in villages widens, though poverty declines in 5 yrsInam Ahmed and Rejaul Karim Byron

Poverty has significantly reduced in five years since 2000 by 8.9 percentage points to 40 percent, but the rich-poor gap has widened further, according to the latest Household Expenditure Survey (HES), posing a new challenge to policymakers to close the gap.

The Income Gini Co-efficient, a measure to assess income inequality, shows an increase from 0.451 in 2000 to 0.467 in 2005, mostly because of increasing rural inequality. A higher Gini Co-efficient reflects a worsening situation for poverty.

Rural Gini Co-efficient increased from 0.393 in 2000 to 0.428 in 2005. Although the urban inequality did not get worse, neither did it improve. The urban Gini Co-efficient remained static at 0.497 in the five years.


In fact, inequality in Bangladesh also deepened for the decade since 1990. The earlier HES showed the coefficient was 0.259 in 1991-92 and it reached 0.306 in 2000. This measure was done by assessment in 14 zones of the country. However, the new HES figure was derived by widening the assessment area to 16 zones.

The other continued alarming trend reflected in the survey is that income share of the lower tier people has decreased while the top 50 percent's increased, widening the gap between the richest and the poorest. It is now clear that 50 percent of the population claims only 20.32 percent of total income. Interestingly, the top 5 percent or the richest of the tiers also lost their share of income and recorded at 26.93 percent as against the previous survey that showed them to have sharply gained their share of income.

Looking at the consumption pattern, it is found that there was no significant change of Gini Co-efficient of consumption expenditure between 2005 and 2000. However, the rural people spent more as their share in expenditure increased from 0.279 to 0.284 on the Gini Co-efficient.


A joint study on chronic poverty in Bangladesh by the Bangladesh Institute of Development Studies (BIDS) and Chronic Poverty Research Centre released Sunday has observed: "It appears that there is a growth-inequality-poverty trade-off. The way out of this situation does not lie in undermining the growth of the dis-equalising activities, but in ensuring that poor people can effectively participate in them. The sources of rising inequality are linked with the uneven spread of economic and social opportunities, unequal

distribution of assets, specially in respect of human capital and financial capital, growing disparity between rural and urban areas as well as between developed and underdeveloped areas. "

Dr Zaid Bakth, research director of the BIDS, said 'unearned' income of a segment of the people has increased over the years leading to non-distribution of income. This is a reason for the rising inequality, he suggested. Also the phenomenon rise of the service sector now accounting for about 54 percent of GDP and a declining agriculture contributing only 17 percent to GDP also resulted in the rising inequality.

Between 1999 and 2004, the poor's income increased 4.8 percent, while it increased 19.4 percent for the non-poor, the preliminary report of the Poverty Monitoring Survey 2004 shows. The rural poor are even worse off where income increased by only 0.54 percent for them against the urban's 7.97 percent.


"The widening income disparity in Bangladesh is explained most convincingly when we compare the income shares of top and bottom quintiles of the population," a CPD report says. "Between 1999 and 2004, national income attributable to the poorest 10 percent of Bangladesh population declined from the miniscule proportion of 1.7 percent to 1.5 percent. Conversely, the control on the national income by the richest 10 percent of the population increased from 33.9 percent in 1999 to 36.5 percent in 2004."

In other words, the income difference between the poorest and the richest increased from 20 times in 1999 to 24.5 times in 2004. Not only this, urban-rural income difference also continually increased up to the mid-1990s, and this trend was only reversed in the later half of the 1990s with strong agricultural growth.


"Overall, it seems that Bangladesh is precariously positioned in the growth-inequality link as in the initial stage of the Kuznets process," Dr Wahiduddin Mahmud told The Daily Star in an earlier interview. "The problem assumes special significance in a situation whereby the very process that brings some initial dynamism in the system, also contains factors that lead to deterioration in the distribution of income."

Source:http://www.thedailystar.net/2006/10/10/d6101001011.htm

Foreign Press on Bangladesh

Source:http://www.bdpressinform.org/foreign.htm

A good number of news items were published in the leading foreign dailies.Some of those are as follows in brief:


The Hindu of India published a news item in its 9th June issue with a headline"Some success stories" saying that as a young nation Bangladesh has quite a few successes on social as well as economic fronts. Economic growth is being sustained at over 5.5 percent despite huge setbacks due to recurrent natural disasters. The industrial growth in Bangladesh has far outpaced growth in other sectors. The service sector is pulsating with new dynamism, while social and economic infrastructure has improved significantly. The macro-economic stability and major policy orientations remain largely pro-investment and pro-growth. In primary school enrolment and the ratio of girls to boys, Bangladesh is among the best in developing countries. Bangladesh has achieved the fastest reduction in infant and child mortality rates among all the developing countries of the world. Bangladesh has reduced population growth rate at an unprecedented speed in recorded history. The population growth is about 1.47 percent. Contraceptive prevalence rate has increased to around 54 percent as a result. The Immunisation programme is acclaimed worldwide as one of the best in the developing world


The Times of India published a news item in its 31st March issue with a headline "The best kept investment secret in S. Asia". The news said that emerging market reports believe that Bangladesh is the 'New rising star' in South Asia for foreign investment. Bangladesh has enjoyed spectacular growth in international direct investment, particularly in recent years. The government has already liberalized the Industrial Policy for attracting more and more foreign investment in Bangladesh. Normally, investors are required to deal with only one agency i.e BEPZA for all their requirements. For setting up industry in the Export Processing Zones, the investors are required to submit only a simple application with few relevant papers to BEPZA for approval. In order to achieve and materialize the objectives of BEPZA, it not only developed desired infrastructure facilities, the authority also offers numerous incentives and benefits which are not only being enjoyed by the industries from both home and abroad but also recoup their investment in a very short span of time. BEPZA offers the most competitive fiscal and non-fiscal incentive package for the investors in EPZs. In Bangladesh it is possible for its homogeneously, large number of potential human resources, competitive wage level and its geo-regional location. Bangladesh is the most homogeneous country in this region. It reflects the advantage of social stability, which is the key element in creating confidence among foreign investors. The incentive packages offered by the EPZs of Bangladesh for attracting investment stand to be the most competitive among the ones offered by other countries.



The Time Magazine in its April 10th 2006, issue published an article headlined "Rebuilding Bangladesh" by Alex Perry. Parry said that Bangladesh, dubbed in the 1970s by Henry Kissinger as a 'bottomless basket,' is making surprising progress on many fronts. According to the U.N.D.P the country now scores higher than neighbor India on several key barometers of social development, such as infant mortality, child vaccination, and employment of women a striking turnaround over the past decade or so. The country's much praised microcredit scheme, operated by the Grameen Bank, has lent an average of $120 each to 5.8 million people. And the government says 100% of young children are now enrolled in primary school, and that girls at last have equal access to education goals that Khaleda Zia, as a woman leading a conservative Muslim nation, had made a priority. 'If we want to progress as a country, to remove poverty and spread awareness of family planning, we have to give (girls) equal rights,' she explains. The economy is looking up, too. GDP has grown by at least 5% for three years running, and the Asian Development Bank predicts that growth will hit 6.5% in 2006. Foreign direct investment rose from $138 million to $454 million in the first six months of last year compared to the same period the previous year. The number of cell-phone users rose by 144% in a year. And Goldman Sachs has rated Bangladesh as one of 11 developing nations that, in the long term, could emulate the success of China, India, Brazil and Russia. Mahmudur Rahman, Begum Khaleda Zia's executive chairman of the Government Board of Investment, can scarcely hide his delight, describing Bangladesh's recent economic success as 'nothing short of a miracle.

But there is new hope. From the slow but marked gains in foreign investment to Begum Khaleda Zia's decision to fight Islamic militancy head-on, Bangladesh has achieved progress that few outsiders, or even Bangladeshis, believed possible a few years ago. 'All we need,' says University of Dhaka Professor of Economics Abul Barkat, 'is five years of good governance, and we'd be away.' Surely no nation ever deserved it more.


The Indian Express of Kolkata published a news item in its 17th November issue under the headline "From Dhaka with hope" saying that The biggest surprise at the recent SAARC summit was not China's quasi-entry into this South Asian body. It was Bangladesh's quiet transformation. South Asian strategy was the story of a South Asian turnaround. Considered once the test case of development, Bangladesh has quietly undergone a major transformation. Bangladesh has overcome the gender bias in primary and secondary education - achieving this MIX at a historic rate - and attained dramatic declines in infant and maternal mortality. Similarly, once considered a population time bomb, Bangladesh has achieved one of the fastest declines in fertility rates in the world. Overall, many of the country's human and social development indicators place Bangladesh at the top for low income, developing countries for South Asia in particular. It is within this fluid context that Bangladesh of political and administrative policy making system has emerged, and continues to emerge. Decades of gains can be erased quickly if a country's political and administrative systems do not keep pace with the demands of it citizens and the ever- changing global context. Indonesia and Argentina are two examples. If the past decades have been a challenge for Bangladesh in catalysing its social transformation, the next decade will be a test to sustain it. If history is any indication, Bangladesh has the capacity to deliver.

Local footwear exporters eye 30pc growth

Local exporters eye a rise of up to 30 per cent in leather footwear exports to the European market after the European Union (EU) has imposed a two-year anti-dumping restriction on leather shoe shipments from China and Vietnam, reports BDNEWS.

"We expect a rush of buyers from the EU in coming days as the EU ruled against Chinese and Vietnamese shoes," said Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association President Tipu Sultan Wednesday.

The 25-member EU imposed a 10 per cent anti-dumping duty on Vietnam and 16.5 per cent on China on October 4.

The latest measures came after the authorities imposed temporary duties on shoe shipments from the two countries in April, which the exporters said would place in Dhaka in a competitive position compared to Hanoi and Beijing.
Bangladesh is under the generalised system of preferences (GSP) to the EU countries. Vietnam also gets the GSP facility but a 10 per cent duty on its shoes will help Bangladesh firm up its foothold in Europe. China is left out of GSP.

According to Sultan, Bangladesh ships 60 per cent of total leather footwear to the EU region, 30 per cent to Japan and 10 per cent to other parts of the world. Italy, France, Germany and England are the major importers of Bangladeshi footwear.

http://www.financialexpress-bd.com/index3.asp?cnd=10/12/2006&section_id=1&newsid=40637&spcl=no

Madhyapara Mining Co begins trial production

Madhyapara Granite Mining Company Limited (MGMCL) finally began its trial production last Tuesday. According to sources, the hard-rock mining project of Petrobangla is expected to be handed over within next three months, if Namnam, the project's contractor, accomplishes the trial run successfully.

In accordance with the project proposal, Namnam will develop five blocks in the mine to extract 6,660 tonnes of granite from each block, the sources said.

After finishing the trial production in all five blocks Namnam will have to perform a 24-hour test run on December 12 this year, the sources said further.

Earlier, the original estimated cost in the project's first profile was Tk 6.50 billion (650 crore). Due to Namnam's repeated delays the government had to spend an additional cost of Tk 6.0 billion, the sources alleged.

Namnam signed the contract with Petrobangla in March 2004 under a North Korean supplier's credit arrangement.

The project was supposed to go on test run in June 2006, which failed due to technical fault. The target of granite extraction from the mine has been fixed at around 1.65 million tonnes per year, and the duration of the project has been set for 46 years, the sources added.

http://www.financialexpress-bd.com/index3.asp?cnd=10/15/2006&section_id=7&newsid=40879&spcl=no

BSCIC industrial estate in Brahamanbaria gaining momentum

The industrial estate of the Bangladesh Small and Cottage Industries Corporation (BSCIC) in the district is gaining momentum with opening of 50 out of 67 industrial units.

The BSCIC industrial estate was established in 1998 on 21.98 acres of land in Nandanpur area of the Sadar Upazila in the district. A good number of entrepreneurs set up their units in the estate, and those are running successfully.

The entrepreneurs started getting interested in investing in the industrial area due to honesty, hard work and regularity by the BSCIC authorities.
Of the total 135 plots in the estate, allotments were given for all plots. All industrial units are now in operation.

These are Javed Metal, Ebrahim Pipe, Loly Pharma, Rid Pharma, Rabeya Foundry, Anwar Oil, Ratan Food, Munni Soap, Munni Chemicals, Janani Metal, Chowdhury Links, Tara Bread & Biscuit, Kashem Metal, Aziz Metal, Ma-Mony Soap etc.

The units that are already open are earning profit. The government earns about Tk 10 million as revenue from the estate every year, BSCIC sources said.

Local people are demanding that the estate be extended by 15 more acres so that they can establish another forty units there.

http://www.financialexpress-bd.com/index3.asp?cnd=10/15/2006&section_id=7&newsid=40883&spcl=no

Export earnings grow by
36 per cent in August
Kazi Azizul Islam

Country’s export earnings grew by more than 36 per cent to $1.156 billion in August compared with the same month of the previous year while the first two months’ earning of the current fiscal stood at $2.3 billion with 2 per cent surplus of the target set for the period, says Export Promotion Bureau.
The average growth for the two months is 31 per cent.
The bureau statistics released on Sunday showed that readymade garments accounted for more than 78 per cent in July-August total with woven garments recording a 30 per cent rise to $914 million, highest since the end of the quota system in January 2005.
Knitwear maintained robust growth with a 36 per cent rise, fetching $900 million, bureau data showed.
‘Growth at 36.29 per cent in August was the highest in a decade for any single month,’ a senior official in the bureau’s statistics and research cell, told New Age.
‘Usually the July-September is peak season for garment exporters but embargoes on certain categories of Chinese garment in US and EU markets, have been illustrating the fortune of Bangladeshi exporters,’ he added.
Products missing targets of the period and dropping with earning are: tea 62 per cent to $1.15 million, and electronics 14 per cent to $0.44 million.
Besides garments, products that overshot their targets and marked growth between July and August are frozen food, the second largest export earner after RMG, bagging $97 million, home textile $45 million, ceramic products $6 million, engineering products $40 million, and cut flowers and agro-processed foods each about $5 million.
Export earnings of some products also grew despite missing the respective targets over the period. Exports of jute goods grew 2 per cent to $54 million, footwear 30 per cent to $18 million, raw jute 74 per cent to $36 million, and bi-cycle 12 per cent to $23 million.
Tea, a traditional export item, and home textile not only missed the export targets but also declined by about 4 per cent and 38 per cent respectively. Tea fetched $7 million and home textile about $82 million.
Export of primary products amounted to $145 million, with an increase of 16 per cent on year-to-year basis. The manufactured products saw 32 per cent growth to $2,093 million.
Price index of primary and manufactured products increased 5.92 per cent and 1.66 per cent respectively while the volume of exports increased 10.32 per cent and 30.76 per cent.
The export-earning target for the current fiscal year has been set at $12.5 billion.

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

Bangladesh fetches 2.3 billion USD from exports in July- August

Export earnings of Bangladesh has gone up by about 31 percent during July-August of fiscal 2006-07 over the corresponding period of 2005-06, riding on the continuous good performance of knitwear and woven garments, local daily The Financial Express reported Monday.

Bangladesh fetched 2.3 billion U.S. dollars from exports in July-August of fiscal 2006-07 (July 2006-June 2007) against 1.75 billion dollars in the same period of fiscal 2005-06, according to the Export Promotion Bureau (EPB) statistics.

Woven garments during July-August of 2006-07 fetched 913.86 million dollars against 701.53 million dollars of the corresponding period of the last financial year.

Export of knitwear products had also been able to maintain a robust growth during the July-August of 2006-07, fetching 899.91 million dollars, up by 35.81percent over the corresponding period of the last fiscal year.

Since independence, this is the first time the country has been able to set a new record in export growth helped by government patronage and campaign in the United States and European markets by the country's businessmen for knitwear products.

EPB Vice Chairman Mir Shahabuddin Mohammad Sunday said continuous government support and tireless effort by the country's exporters have fetched this record amount of export earnings.

Shahabuddin also said that the trend of robust export growth would continue in the coming months this year as the aggressive campaign by Bangladesh Knitwear Manufacturers and Exporters Association are playing a pioneering role in expanding and enhancing the existing market in the United States and EU region.

Apart from knitwear, export earnings from leather, frozen food, home textiles, handicrafts and ceramic products recorded growth so far in fiscal 2006-07.

http://english.people.com.cn/200610/16/eng20061016_312202.html

Pubali Bank
Saudi prince keen to buy remaining govt shares
Sarwar A Chowdhury

Saudi Prince Bandar Bin Mohammad Bin Abdul Rahman Al Saudi, preferred buyer of the state-run Rupali Bank, has expressed his willingness to buy the rest 26 per cent shares of the bank owned by the government.

The Saudi prince conveyed the message to the Privatisation Commission while unveiling future reform plans for the bank, sources said.


Privatisation Commission Chairman Enam Ahmed Chaudhury yesterday quoted the Saudi prince as saying that if the government wants to sell the rest shares in the bank, the prince will buy those.

The prince is also interested in investing in other sectors in Bangladesh, he said adding that authorised representatives of the Saudi prince are conducting studies to assess the potential fields.


Talking about the Saudi prince's future reform plans for the Rupali Bank, he said the prince will introduce helicopter service, set up offices abroad to offer remittance services, initiate a US$ 20 million fund for human resource development and put emphasis on small and medium enterprises.


"The prince also informed us that he will not shut down any branch of the bank, rather he will introduce a scheme to modernise the bank," Chaudhury said.


At present, a representative committee of the Saudi prince headed by Sir Frank Peters is working with the Bangladeshi committee, formed by the Privatisation Commission, to prepare a deed of share sell and purchase document, he said adding that all the procedures will be completed by the commission by next Sunday.


"Now, it depends on the arrival of the Saudi prince in Bangladesh to sign the agreement."

The prince will have to pay $330 million in a single chunk before signing the sale and purchase agreement, he said.


On August 27, the commission declared the Saudi prince the highest bidder. On October 5, Prime Minister Khaleda Zia okayed the bid of US $330 million for buying 67.26 per cent share of the Rupali Bank.


The government that owned 94 per cent shares of the Rupali Bank, decided to sell 67 per cent of them in order to appease the World Bank and the International Monetary Fund (IMF), who demanded reforms in the banking sector of the country as a prerequisite for receiving loans from them.

In March last year, the government assigned the Privatisation Commission to sell the bank. The rest six per cent shares are held by general public.


Total assets of the Rupali Bank as showed in December 2005 stood at $1.07 billion and it has over 493 branches across the country.

Source:http://www.thedailystar.net/2006/10/20/d6102001137.htm

ADB sees strong economic growth for Bangladesh

Bangladesh's economy is projected to grow strongly and political uncertainty in the lead-up to the general elections in January 2007 will not affect economic activity significantly, an Asian Development Bank (ADB) report said.

However, the growth of the Gross Domestic Product (GDP) is forecast to slow down somewhat to 6.0 per cent in FY 2007 against 6.7 per cent in FY 2007 because of likely lower growth in agriculture and further tightening of monetary policy, the ADB said in its South Asia Economic Report Thursday.

"GDP growth in FY2006 (1 July 2005 to 30 June 2006) accelerated to 6.7 per cent because of a rebound in agriculture, strong expansion in export-oriented manufacturing, and continued buoyancy in services. Based on the assumption that political uncertainty in the lead-up to the general elections in January 2007 will not impact economic activity significantly, the economy is projected to continue to grow strongly," the report said.

It said higher domestic fuel prices and continued depreciation of the currency will exert inflationary pressures in FY2007, but because of the tighter monetary policy, inflation is forecast to a moderate 7.0 per cent.

In June, the government increased fuel prices by 10-30 per cent, and that should reduce the fuel subsidy by about US$210 million annually.

However, implicit fuel subsidy continues to be high and is estimated at about US$810 million or 1.3 per cent of GDP. The state-owned Bangladesh Petroleum Corporation (BPC), which is required to sell petroleum products below cost, is consequently accumulating losses. That in turn has had negative consequences for the effectiveness of monetary policy in dealing with inflation and for the health of the banking sector, the report said.

Despite Bangladesh Bank's (BB) tighter monetary stance, the report said, monetary expansion remained strong, with broad money and domestic credit increasing by 19.5 per cent and 20.2 per cent respectively in FY2006.

Although private sector credit growth decelerated, public sector credit surged mainly due to Bangladesh Petroleum Corporation's huge borrowing from the state-owned commercial banks -- estimated at US$1.5 billion, the report said adding that because of continuing concern about rising inflation and credit growth, Bangladesh Bank is expected to tighten monetary policy further in FY2007.

The fiscal deficit increased to 3.9 per cent in FY2006. However, it was lower than the original budget target of 4.5 per cent, mainly due to underperformance of development spending.

It said the FY2007 budget envisages a fiscal deficit of 3.7 per cent of GDP, with a sharper focus on pro-poor public spending, augmentation in revenues (increase domestic revenues as a percentage of GDP by 0.5 per cent), and reduction of losses of the state-owned enterprises.

Rapid growth in export earnings at 21.6 per cent and overseas workers' remittances at 25 per cent, and a slowdown in non-oil imports, helped the government record a current account balance surplus in FY2006 despite the higher oil prices, the ADB report added.

Concerns about the impact on the economy of the phase out of the Multi-Fibre Arrangement (MFA) have thus far not materialised, it said adding that textile and clothing exports, which primarily consist of garments, account for over 70 per cent of Bangladesh's total merchandise exports.

The report said garments exports continue to grow strongly at 23 per cent, outperforming many competing countries. Sustained growth in exports, together with the high level of workers' remittances, should help maintain a small surplus on the current account balance in FY2007.

However, for Bangladesh to sustain high growth in the garments sector, infrastructure improvements would be required and particular attention would have to be paid to social compliance issues that have surfaced recently, including serious labour unrest, the ADB report said.

In Bangladesh, the banking sector's average CAR (Capital Adequacy Ratios) rose from 6.7 per cent in 2000 to 8.7 per cent in 2004. However, the four state-owned commercial banks could not attain the required level, while a number of private and other banks also failed to maintain the required CAR.

While Bangladesh and Nepal remain plagued with very high none-performing loan (NPL) ratios, the NPL ratios in India, Pakistan, and Sri Lanka are comparable to those in the East and Southeast Asian economies.

In Bangladesh, the overall after-tax return on assets (ROA) has increased to 0.7 per cent in 2004 from 0.3 per cent in 2003. However, the ROA of state-owned commercial banks has been very low and turned negative in 2004, while that of the development financing institutions (DFIs) is even worse. Private commercial banks have had an inconsistent trend, while foreign commercial banks have generally displayed strong profitability.

Bangladesh and Nepal have not announced plans to implement the Basel II recommendations in the short term. However, Bangladesh has considerably improved bank regulation and a national steering committee led by the Bangladesh Bank has been formed to move forward with implementing Basel II banking standards. In Nepal, efforts are under way to strengthen financial sector supervision, and to raise internal audit and accounting standards.

Oil import expenditure as a percentage of GDP increased dramatically in 2005, to 2.7 per cent in Bangladesh, 7.0 per cent in Sri Lanka, 5.5 per cent in India, 3.7 per cent in Pakistan. More than 20 per cent of export earnings in India, Pakistan, and Sri Lanka and 16.4 per cent in Bangladesh went toward paying for oil imports.

Currencies in South Asia have generally been stable against the US dollar. The exception is the Bangladeshi taka, the value of which has continued to decline.

But the continuing rise in energy prices is making this policy increasingly difficult to sustain. With oil prices likely to stay high for an extended period, South Asian countries could greatly benefit from well-structured energy policies.

Within South Asia, Bangladesh experiences most problems in power supply. More than 70 per cent of firms view electricity as a major or very severe constraint to business. Electrical outages occur 249 times a year. More than 70 per cent of firms have generators that supply 19 per cent of total electric consumption. Also, in India, electricity is viewed as a major or very severe constraint to business by more than 25 per cent of firms. About 64 per cent of firms have generators that also supply 19 per cent of total electric consumption.

http://www.bangladesh-web.com/news/view.php?hidDate=2006-10-20&hidType=TOP&hidRecord=0000000000000000132950

Pharma estate planned in Munshiganj

The Bangladesh Small and Cottage Industries Corporation has drafted a Tk 453 crore project proposal for developing pharmaceutical ingredients which is awaiting approval of the planning commission.

The Bangladesh Association of Pharmaceuticals Industries is involved with the industrial estate project, planned to be set up on nearly three hundred acres of land of Baushia-Laksmipur mouja of Gazaria upazila under Munshiganj district.

The estate will contain 50 plots of five acres each and is expected to generate employment for about 20 thousand people, according to the project expected to be completed by June 2009.

The president of BAPI, SM Shafiuzzaman said, Bangladesh has been exporting medicine to 67 countries for the last six years and the export volume is increasing by 50 per cent each year.

In the last fiscal year (2005-2006), Bangladesh exported $27 million (Tk 185 crore) worth of medicine to the international markets.

The pharmaceutical industry here has a better backward linkage than the garments and therefore early completion of the pharmaceutical industrial park would significantly enhance country’s economy, he said.

Bangladesh pharmaceutical industries at present has to import 70 to 75 per cent raw materials but with the completion of the industrial estate in time the country will be able to produce 90 per cent of the required raw materials.

It will make medicines cheaper domestically and help the country to compete with China and India in the export sector, the industrialists hoped.

Bangladesh has got the opportunity of producing patent drug till January 1, 2016 as a member of world trade organisation and as a least developed country under the agreement on Trade Related Aspect of Intellectual Property Rights, he pointed out.

To compete on the price of medicine in the market at home and abroad there is no alternative to producing raw materials locally, said Shafiuzzaman.

Among 49 least developed countries, Bangladesh has the best infrastructure and manufacturing facility of finished pharmaceutical formulations, said the chairman of Pharmaceutical Technology department of the University of Dhaka, Professor ABM Faruque. Bangladesh is in unique position to bring revolution in its pharmaceutical sector if the country could capitalise optimally, he said.

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

Apparel export to United States reaches $1.9 billion

Bangladesh’s apparel export earning from the US has amounted to about $1.9 billion during the first 8 months of 2006, with more than 24 per cent increase, said the US department of commerce.

In 2005 calendar year, Bangladesh’s apparel export to the US totalled $2.372 billion with around 20 per cent growth. The US is the single largest destination of Made-in-Bangladesh apparels, especially woven garments.

A report of the US department of commerce, released a week ago, shows that with $299 million in August, which is the highest of the year to date, apparel export earnings totalled at $1,886 million. During the same period in the previous year 2005, the export earnings amounted to $1,521 million.

The growth of apparel export in terms of volume was however relatively lower, according to the report, as during the period the shipment of apparels grew by less the 17 per cent to 1,242 million units.

Industry people said the Bangladeshi exporters are now getting better price for per unit of apparel from the US buyers, especially after the US authorities imposed restrictions on certain categories of Chinese garments in mid-2005.

To check the flooding of cheap Chinese apparels hitting hard local industry, the US authorities, using a WTO provision, imposed limits on Chinese exports.

Exporters observed that such gains are short-term and they predicted tough time for the biggest export earner after 2008 with the end of restrictions.

‘Definitely we are reaping benefits of safeguard measures,’ said Abdus Salam Murshedy, the immediate past vice-president of the Bangladesh Garment Manufacturers and Exporters Association.

Murshedy said the export of woven garments especially denim products is robustly increasing as the US buyers are rushing here to get most competitive products from the Bangladeshi suppliers.

He also acknowledged that drives of Bangladeshi knitwear exporters in US market that is relatively new to those manufacturers, who had long been concentrating on EU market only, helped large rearing for the country.

The US commerce department report said during January-August of 2006, Bangladeshi exporters also earned more than $54 million from US market selling textile fabrics, home textiles, terry towels and other non-apparel textile products.

Bangladesh is one of the top five suppliers to US apparel import market, sized at around one trillion dollars a year, world’s single largest.

Records show, Bangladesh’s total exports to the US in 2005 amounted to $2.69 billion while imports totalled $319 million. In 2004 the growth of apparel export was around 7 per cent to $1,978 million.

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

Current account balance surplus rises on growth in remittance
Star Business Report

The current account balance surplus increased in the first two months -- July and August -- of this fiscal year (2006-07) mainly due to growth in remittance.

Trade imbalance also declined in the same period caused by export growth, according to Bangladesh Bank statistics.


Despite larger service and income deficits, current account balance recorded a bigger surplus of US$414 million in July-August of FY 2006 against that of $99 million in the same period of FY 2005.

Trade balance also recorded a smaller deficit of $148 million in July-August of this fiscal compared to the deficit of $352 million during the same period of the previous financial year.


Remittance inflow maintained over 24 per cent growth in the first three months of this fiscal. Remittances in July to September period of FY 2006 stood at $1328 million, which was $1071 million during the same period of the last fiscal.


Besides, non-resident Bangladeshis (NRBs) are sending more money home ahead of Eid-ul-Fitr, contributing to growth in remittance.


The total remittances reached around five billion dollars in the last fiscal mainly due to increase in skilled labour force abroad and government's efficient move against money laundering.


On the other hand, exports saw a 31 percent growth in July-August of FY 2006 over the same period of the previous fiscal while import payments registered a 17 percent growth over the corresponding period of the previous fiscal.


Export earnings amounted to $2301 million in the first two months of FY 2006 against $1753 million during the previous fiscal's corresponding period.

Import payments in July-August of FY 2006 increased by $394 million to $2709 million compared to $2314 million during the same period of FY 2005. Of the total import payments during the first two months of FY 2006, imports under cash and for EPZ stood at $ 2553 million, under loans/grants $13 million, under direct investment $9 million and short term loan by Bangladesh Petroleum Corporation at $132 million.


Meanwhile, fresh opening of LCs (letter of credits) in July-August of FY 2006 increased by $322 million or 13 percent to $2777 million against $2454 million during the same period of FY 2005.

Source:http://www.thedailystar.net/2006/10/21/d61021050162.htm

Eid shopping widens to auto,
computer markets
About 1,050 vehicles, 20,000 PCs sold
Kazi Azizul Islam
Eid shopping this year widened from traditional fashion market to automobile and consumer durables market as people with disposable incomes spent heavily, giving good sales to car dealers and personal computer, furniture and electronic home appliances shops.
Businesspeople roughly estimate they had 10 to 20 per cent higher sales turnover than that of the past year, with automobile taking the lead.
Apart from good sales of upper middle-class friendly reconditioned cars, many distributors of branded automobiles saw their stocks exhausted.
Factors including easy access to consumer credit provided by banks, reduced taxes, declining operational cost of durables, upcoming election and effective marketing drives contributed to the sales growth of consumer durables, market people said.
Around 1050 cars and other vehicles were sold with a turnover of Tk 130 crore, while 20,000 personal computers fetched Tk 60 crore and electric and electronics home appliances and furniture had Tk 100 crore and Tk 400 crore respectively in sales, market sources said making preliminary assessment based on sales data till the first-half of Monday.
‘We sold 61 cars in October and we flailed to serve few customers as our stock finished,’ said a senior sales executive of Pacific Motors, marketer of the Japanese Nissan brand that commands 56 per cent share in Bangladesh’s car market.
Prices of cars ranged between Tk 10 lakh and Tk 32 lakh, said the official, estimating that at least 160 brand new cars, pick-ups and jeeps were sold during eid season. Sales in eid were 50 per cent higher than the average monthly turnover, he said.
Market people estimated that with few luxury jeeps and sedans, each priced more than Tk one crore, brand new segment had Tk 40 crore worth of business this year.
In 2005, 1184 brand new cars and other vehicles were sold in Bangladesh market dominated by Toyota, TATA Indica, Suzuki, Mitsubishi, Hyundai, Mercedes Benz, BMW, Proton and Land Rover brands.
About 900 reconditioned vehicles were sold during this eid season alone, which were higher by 200 than the monthly average sale and at least 10 per cent higher than the previous year’s eid sales, said Abdul Mannan Chowdhury, president of the Bangladesh Recondition Vehicles Importers and Distributors Association.
Eid sales of reconditioned vehicles would amount to at least Tk 90 crore this year, said Mannan, ‘Toyota brands were mostly traded with prices ranging between Tk 8 lakh and Tk 12 lakh.’
Reduced tax and drastic fall in fuel cost due to CNG conversion pushed up the sales of light vehicles in recent months, he said. ‘The upcoming election has also contributed to the sales boom as we have found significant buyers of microbuses, mostly used in election campaigns.’
Faizullah Khan, president of the Bangladesh Computer Samity, said around 20,000 personal computers were sold ahead of eid, which were almost double the monthly average sales, while hardware market had a Tk 60 crore business.
Sales promotion drives like computer fair, advertisements on latest multimedia entertainment tools and expansion of domestic internet usage inflated computer sales, observed businessmen in city’s hardware markets at IDB Bhaban and Elephant Road.
KM Akhtaruzzaman, president of the Bangladesh Furniture Industries Owners Association, said, ‘Sales during this eid were better than that in last couple of years’
He said Bangladesh had a Tk 3,000 crore annual market of furniture with Tk 500 worth of imports from China, Malaysia and Singapore.
Eid sale was significantly higher than that in other months, he said. ‘This year it is higher by at least 15 per cent to around Tk 400.’
Electric and electronic home appliances markets saw around Tk 100 crore business this season, said market people.
‘Our sales is higher by 20 per cent,’ said Nurul Abser, director of the Electromart, marketer of TV sets, refrigerators, washing machines, ovens and other imported appliances brands including Konka of China.
Preferring anonymity, an official of another leading electronics marketing company, said their festival sales turnover was about Tk 7 crore.
‘At least Tk 100 crore worth of electronics and appliances were sold during eid this year by all marketers,’ said the official, whose company market Chinese and Dutch brands. ‘Sale is encouragingly good this year.’
Several marketing officials pointed out that easy and expanded access to consumer credits by different banks are also boosting sales of consumer durables in recent times.

Source:http://www.newagebd.com/front.html#2

it's great to see that more and more people are able to buy luxuary items in Bangladesh. Large number of growing middle class and upper middle class.

GrameenPhone posts 57pc
revenue growth
Staff Correspondent
Mobile phone operator GrameenPhone has posted 57 per cent revenue growth in the third quarter of the current calendar year compared to the same period in 2005 mainly for increasing number of subscriptions, the company says.
The total revenue of the company jumped to Tk 1,156 crore or NOK 1,133 million (1 NOK=Tk 10.202) in the July-September period of 2006 which was Tk 790 crore or NOK 775 million during the corresponding period in 2005.
‘The number of subscriptions increased by almost 1 million in the third quarter of 2006 and by 5.2 million from the third quarter of 2005,’ said the Q3 report of the Norwegian Telenor group released on Thursday, which owns 62 share of the GrameenPhone.
At the end of the Q3, the total subscribers of the company rose to around 9.4 million and the estimated market share remained stable at 63 per cent compared to the previous quarter, said the report.
Lauding the continuous growth of GrameenPhone, Jon Fredrik Baksaas, chief executive officer of Telenor, said GrameenPhone in Bangladesh continued to impress, delivering solid performances.
The report, however, said the average revenue per user decreased by 31 per cent primarily due to the decrease in average prices and dilution due to subscription growth.
The ARPU was recorded around Tk 400 or NOK 41 in Q3, which was Tk 650 or NOK 65 at the same period in last year.
During July to September, GrameenPhone invested around Tk 445 crore to expand the network and coverage.

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

Bangladesh top denim supplier to EU

Bangladesh emerged as the number one supplier of denim clothes to the European market, commanding 27 per cent share of imports during the first half of 2006, reveals the European Commission.

Exporters here said the increasing availability of locally produced denim fabrics and enhanced ability to offer the most competitive prices helped Bangladesh gain greater market share.

Restrictions on the certain Chinese apparels in the EU market have also benefited the Bangladesh denim sector to a large extent, exporters added.

In terms of earnings, Bangladesh, however, ranked third because of the exporters’ concentration on low-cost dresses.

The latest compilation of customs data by the European Commission, released a couple of weeks back, shows that during January-June period, Bangladeshi apparel manufacturers shipped about 24 million pairs of denim jeans in men’s and boys’ category to different European importers and retailers.

Bangladesh’s export volume during the period increased by 26.15 per cent and stood on top with 26.76 per cent of the total European imports of denims. Turkey stood second with 12.44 per cent market share while Pakistan stood third with 10.89 per cent.

In the first half of the previous year, China held the number one position in the EU’s denim market with 25.73 per cent share in the category while Bangladesh had 20.84 per cent, Turkey 14.25 per cent, Tunisia 9.55 per cent and Pakistan 9.19 per cent.

Despite being the number one in terms of volume, Bangladeshi exporters failed to bag the highest earning from the market due to their concentration on low-end products, the European commission revealed.

In terms of earnings, Bangladesh’s position was third with 98 million euro after Turkey and Tunisia which earned 148 and 105 million euro respectively.

On an average, Bangladeshi denim exporters earned 4.03 euro as unit price for men’s and boy’s jeans, which stands much lower than the global average of 7.38 euro.

In contrast, Turkish exporters received 13.10 euro, Tunisian 11.01 euro, Pakistanis 5.04 euro and Chinese 5.62 euro for each pair of denim men’s and boys’ dress from the European buyers.

In women’s and girls’ denims category, Bangladeshi exporters saw volume increase by more than 91 per cent to about 17 million pairs in the first half of the current year.

Bangladesh topped the list in this category also, with 18.59 per cent of the market share, which is more than double the share it saw a year-ago period in Europe.

Turkey’s exporters shipped 12 million pairs of women and girls jeans showing a decline in volume by 1.49 per cent.

China, which had grabbed half the market share in the girls’ denim category this period last year, saw a steep decline of 82 per cent in sales this year, now being placed at the third position with 10.47 per cent market share.

Again, Bangladesh lagged behind in terms of earnings from women’s and girls’ denim clothes. Turkey’s exporters earned the highest 156 million euro during the period, while Bangladeshis, the volume leader, earned 68 million euro, securing the second position.

‘As we are offering most competitive prices to denim importers in Europe, they are rushing to us, while some categories of Chinese items are facing restrictions in EU market,’ pointed out Abdus Salam Murshedy, the immediate past vice-president of the Bangladesh Garment Manufacturers and Exporters Association.

He said local capacity for producing denim fabrics enhanced significantly in recent times that helped apparel manufacturers catering to the demands from European buyers.

Preferring anonymity, an official in Dhaka office of a major global brand, famed for denims, told New Age Bangladeshi exporters are not dynamic, still they bank on low labour cost and concentrate on volumes. ‘Buyers see them always as low cost suppliers.’

‘If manufacturers develop their capacity in designing and improve finishing of denims, Bangladeshi exporters will also be able to compel buyers to pay higher prices.’

http://www.newagebd.com/front.html#3

Singer starts constructing own building at Bogra

Singer Bangladesh Limited has started the construction work of a seven-storey building on its own land at Matidali-Fulbari at Bogra town recently with a view to expanding business and providing better services to customers.

Singer Asia President and Chief Executive Officer (CEO) Gavin Walker laid the foundation stone in presence of Chairman and Managing Director of Singer Bangladesh Limited Mahbub Jamil recently, according to a press release.
Management committee members of Singer Bangladesh, local elite and journalists were present on the occasion.

It is expected that the construction work of the building will be completed within next one year.

This building with unique architectural beauty will be brining a new dimension in shopping experience of Bogra people. This building will also be accommodating other commercial offices.

http://www.financialexpress-bd.com/index3.asp?cnd=11/7/2006&section_id=7&newsid=42940&spcl=no

Dhaka faces perception gap abroad: Frowein

Friday November 03 2006 08:57:49 AM BDT

Ambassador of the Delegation of the European Commission Dr Stefan Frowein has said the world''s perception of Bangladesh lags many years behind reality."…I''ve become more and more convinced that the world''s perception (News Today)

of this country lags many years behind reality. What is needed is to build on the positive exposure afforded by the Nobel Prize accolade and to re-brand Bangladesh to address the perception gap," he told a debate on Thursday.

Vision 2021 Forum and the Delegation of the European Commission co-organised the event titled "Bangladesh 2021: From vision to reality - tangible steps from key sectors to fulfil Bangladesh''s potential by her 50th year" at Dhaka Sheraton Hotel.

The event was designed to provide an opportunity to debate the initiatives that could be taken to gear up Bangladesh''s development through improved co-operation between the public and private sector.

Representatives from the business community, government, political parties, civil society and media attended the event.

Introductions and an initial exchange of views were led by Dr Stefan Frowein, Ambassador of the Delegation of the European Commission in Dhaka, and Sayeeful Islam, former president of the Dhaka Chamber of Commerce and Industry and Chairman of the Vision 2021 Forum.

Three roundtables on key development concerns were subsequently presided over by Dr Frowein, Dr Mizanur Rahman Shelley, Overseas Director of AIBS and Chairman CDRD, and Barrister Tania Amir.

Dr Frowein lamented that images of floods and riots tend to be favoured by Western media over in-depth reports on booming garments exports or meaningful contributions to UN peacekeeping.

He said in spite of the natural beauty and personal warmth of the country, the number of tourists arriving has only risen from 150,000 in 1998 to around 300,000 last year, whilst other countries have made great leaps forward in the field.

"It is hard to second guess why this is so but the old adage that "bad news travels faster than good" may be to blame."

Dr Frowein said it is vital that the public and private sectors in Bangladesh draw on their respective strengths to work together for a bright future for the country.

He added it is also imperative that whatever party or parties form the next government clear ideas are articulated to take the country''s development forward in a fair and equitable manner.

Sayeeful Islam proposed to work towards a milestone of achieving a per capita income of 1000 US dollars by the year 2021, a target that could readily be achieved based on one condition -- political ownership.

http://www.bangladesh-web.com/view.php?hidDate=2006-11-04&hidType=TOP&hidRecord=0000000000000000134617

JC Penney president in town; Hicks visit cheers up RMG exporters
JC Penney may double procurement from Bangladesh

Leading suppliers of readymade garments hoped that the major US apparel retailer JC Penney would enlarge its procurement from Bangladesh significantly.

Kenneth C Hicks, president and chief of merchandising at the JC Penney, was scheduled to land in Dhaka Wednesday evening and meet suppliers here and visit their production facilities Thursday.

JC Penney had nearly $18.8 billion sales in 2005, generated mainly from its more than 1,000 departmental stores of retail apparels, jewellery, gift items and home furnishing materials.

Visit of Ken, the No 2 in JC Penney’s management, is a significant event for Bangladesh’s export oriented apparel industry that earned $7.9 billion in fiscal 2005-2006, ending in June.

Sources linked with JC Penney’s Bangladesh liaison office told New Age that it is one of the top five US retailers, which import Made-in-Bangladesh apparels in significant quantities and the company’s annual procurement is around $80 million.

US is the single largest destination for Bangladeshi apparels and in the last fiscal more than $2.4 billion worth of Made-in-Bangladesh apparels were sold there.

Industry people said retailers were weighing Bangladesh heavily in recent months after it belied a mass predicted fear of fall in exports to the quota-free US market from January 2005. Bangladeshi manufacturers are rather seeing robust increase in their shipments with most competitive prices of products.

JC Penney procures mainly woven garments from several dozens of Bangladeshi manufacturers including Opex Group and Beximco Group.

‘So far as we have heard, JC Penney will at least double its procurement from Bangladesh very soon and Hicks will talk about this after visiting production facilities of the suppliers,’ said a senior official of a leading supplier.

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

JC Penney to import $300m of apparels by 2008

Top officials of JC Penney Thursday said that the leading US retailer would buy around $300 million of apparels from Bangladesh by 2008 from the existing $150 million level.

The officials told journalists that they were ‘excited and impressed’ after on-spot investigation into the capacities of their Bangladeshi suppliers.

They (JC Penney bosses) hoped that the suppliers would continue to be able to boost exports overcoming political instability in the country.

When asked whether political unrest in Bangladesh would hamper local garment business, JC Penney president and chief merchandising officer replied, ‘Bangladeshi suppliers have strengthened their capabilities to tackle any adverse situations and increase business growth.’

The president and chief merchandising officer of JC Penney, Kenneth C Hicks, and other high officials of the US-based retailer visited Beximco Industrial Park at Savar Thursday.

‘We are excited being in Bangladesh, and especially impressed after looking at the capabilities of our suppliers,’ Hicks said journalists.

He deferred that foreign garment buyers come to Bangladesh only for cheap products. ‘Global buyers are rushing to Bangladesh as the local manufacturers supply quality products.’ He pointed that product development should be the strategy of the local sellers.

‘Further and further product development should be the strategy for sustaining and enhancing its business in global market.’

JC Penney has more than 1,000 departmental stores and in 2005 their turnover was about $18.8 billion. They sell apparels, jewellery, gift items and home furnishing materials throughout the US.

This is the first time such a high delegation from a top global retailer visited Bangladesh.

‘Visiting of such top JC Penney delegation which includes president of the company is a significant event for Bangladesh RMG industry and its global image would be enhanced,’ said ASF Rahman, chairman of Beximco Group.

A senior official of Beximco Textiles told journalists that at present JC Penney import around $150 million of apparels annually. ‘The delegation told us that they would increase import to about $300 million within next two years,’ he said.

Beximco exports about $20 million worth of garments to JC Penney shops.

The US is the single largest destination for Bangladeshi apparels and in the last fiscal more than $2.4 billion worth of made-in-Bangladesh apparels were sold there.

The export oriented apparel industry earned $7.9 billion in fiscal 2005-2006, ending in June.

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

Number of poor falls sharply

The number of poor people in Bangladesh fell to 40 per cent from 49 per cent in the last five years, beating the rate of poverty decline in neighbouring India and Pakistan, a study said Thursday.

‘From 2000 to 2005, the proportion of poor in the population fell to 40 per cent from 49 per cent,’ said the joint study by the Bangladesh government and the World Bank.

During the period ‘the proportion of those classed as very poor, measured by household income and expenditure, fell to 25 per cent compared to 34 per cent in 2000,’ the study added, according to a World Bank statement.

‘The decline in poverty by around two percentage points a year was much faster than in India and Pakistan during the period,’ it said.

To calculate poverty, the researchers compared household income against the cost of buying a basket of foods that would give 2,122 calories a day.

Bangladesh with a population of 144 million is one of the world’s poorest nations but has witnessed impressive economic growth in the last 15 years.

The economy has grown by over five per cent annually since the early 1990s and in the last three years, average growth was over six per cent. According to the study, most of the poor live in rural areas, home to more than 70 per cent of the population.

During the last five years, rural poverty fell from 53 per cent to 44 per cent, while urban poverty decreased from 37 per cent to 29 per cent.

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

Exports up 31pc to $3.3b
in July-September

Kazi Azizul Islam

The country’s export earnings grew by 31.49 per cent during July-September quarter, led by readymade garments that maintained strong growth and commanded over three-fourths of total export revenues.
Export Promotion Bureau statistics released on Tuesday showed that during the first quarter of the current fiscal, exporters earned $3.252 billion, exceeding the quarterly target by about two per cent.
Export earnings fell short of target by 7 per cent in the first quarter of the past fiscal, 2005-06.
Export of manufactured products, which share more than 93 per cent of export earnings, marked about 31 per cent increase in terms of volume and 1.62 per cent in terms of price.
The country’s export earning target for the current fiscal has been primarily set at $12.5 billion with 19 per cent growth target.
Exporters earned $10.5 billion, including $7.9 billion from readymade garments, in the fiscal 2005-06, with about 22 per cent growth over the previous year.
Major products in the export basket — woven garment, knitwear and frozen foods — performed well so far in the current fiscal, with earning growth ranging between 25 and 36 per cent, data showed.
Readymade garments, which showed 33.5 per cent growth year-on-year, accounted for $2.515 billion or more than 77 per cent of the total export revenues earned during the period.
‘Bangladeshi exporters, mainly garment manufacturers, are doing very well in recent months, they are shipping higher volumes of goods to global markets and earning more,’ said Mir Shahabuddin Mohammad, vice-chairman of the Bureau.
In the first quarter, earnings from woven garment, the number one product in the country’s export basket, increased by 30.92 per cent to $1.266 billion, up from less than a billion dollar it earned in the same period last year.
During the current fiscal, knitwear exports grew by 35.94 per cent to $1.249 billion, from $779 million of a year back.
Earnings from frozen food during the current fiscal grew by 24.61 per cent to $153 million, home textiles by 78 per cent to $65 million, footwear 28 per cent $29 million, while petroleum by-products (naphtha, furnace oil), ceramic products, handicrafts also performed well.
Jute goods earned $79 million, raw jute $24 million, leather $65 million, bi-cycle $20 million, textile fabrics $12 million, showing positive growth.
Pharmaceuticals earned about $8 million, vegetables $11 million, tobacco $7 million and tea $1.6 million—all posting a negative growth compared with the same period of the last fiscal

Source:http://www.newagebd.com/front.html#15

Great articles guys. Now I just come here to get an update on the economy of Bangladesh and the latest news! Thanks a lot.

Great articles guys. Now I just come here to get an update on the economy of Bangladesh and the latest news! Thanks a lot.

AC, feel free to leave behind comments, suggestions, etc.

Emerging Market Investment: Broad Based With a Sprinkle of Narrow Ideas

Posted on Nov 21st, 2006 with stocks: EEM

Roger Nusbaum submits: There is a good article from Bloomberg about whether investors are better off with active or passive management in emerging markets, with iShares MSCI Emerging Markets Fund (EEM) being the proxy for passive management. The general take away is that passive is better than active, but that seems like the type of thing where the data could be mined either way.

I think a combo of different things is the best way to go. Broad-based exposure is probably right for a big chunk of a do-it-yourselfer's emerging market exposure. However I would not rule out a narrow idea or two; either an individual stock or a fund of some sort that is single country or regional.

If a do-it-yourselfer allocates 6% to emerging markets, it does not seem like a stretch that this person could pick one narrower idea to study, learn and then buy.

For a while I have been writing that I thought that in the next few years Vietnam and Pakistan would be lifted into a similar echelon as the BRIC countries. Turns out some other folks have had similar thoughts according to this article from New Zealand. Goldman Sachs JB Were in Australia has a term called N-11 which stands for the next eleven after the four BRICs. The N-11 countries are: Mexico, Korea, Bangladesh, Egypt, Indonesia, Iran, Nigeria, Pakistan, the Philippines, Turkey and Vietnam.

That group of countries represents opinion from JB Were. It is not clear to me that these are necessarily the best eleven, but this ties in with some of the recent posts about frontier investing. As it is with investment products so it is with these economies; they continue to evolve socially and as investment destinations. I think it is worthwhile to devote time to these types of places.

One reader left a comment about too many of the new ETFs being for commodities and emerging markets. I am not sure whether this is correct or not but either way it is true that brokerage firms and the like to tend to create more products geared to a certain part of the market closer to a top than a bottom.

The thing I would say about this is that just because there are several funds to invest in alternative energy type stocks does not mean you increase your position beyond what you currently own, if you own any and BTW I do not.

If you allocate 5% to commodities; five new products give you more choices for your 5%. Investment companies might be trying to time something, but you don't have to.


http://seekingalpha.com/article/21068

New private jute mill starts operation in Rajshahi

A new jute mill at village Alypur under Paba Thana in Rajshahi started operation on Tuesday. It is the largest private-run jute mill in the northern region.

The mill aims to produce good quality jute products including gunny bags, sacks and ropes, which would be exported to different countries.

Rajshahi mayor Mizanur Rahman Minu on Tuesday formally inaugurated the mill at a function where Rajshahi Krishi Unnayan Bank (RAKUB) chairman Ruhul Kabir Rezvi, Bangladesh Bank director general Abu Hena Razi Hasan, Rajshahi Palli Biddut Samity director general Sarwar Hossain, Mercantile Bank manager Ariful Haque, among others, were present.

Rajshahi Chamber of Commerce and Industries (RCCI) president, also proprietor of the Rahman Jute Mills, presided over the function.

Minu as the chief guest said like the Rahman Jute Mills, many private industries are being established in Rajshahi, providing employed for people.

The Alypur mill stands on the 15 bighas of land beside Rajshahi-Naogaon highway where 50 looms and 11 spinning machines have been installed, the authorities said.

More than 1,000 workers and 50 officials are working here in three shifts to produce 10 tonnes of jute products a day. The mill will use around one lakh maund of jute a year, the mills sources said.

The jute growers of Rajshahi region will get fair price and feel interested in growing more jute on their fallow lands, the mills authorities hoped. The farmers will be able to sell raw jute at the mill gates where no middlemen would be allowed, said Syed Murshed, general manager of the mill.

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

DSE market cap crosses Tk 30,000cr
Sadat Sayem

The market capitalisation on the Dhaka Stock Exchange Wednesday increased to Tk 30,595.75 crore as the share prices continued to gain.
‘The market indicator touched Tk 30,000 crore mark on Tuesday for the first time in the history of country’s capital market,’ said a high official of the Securities and Exchange Commission, the bourse watchdog.
On Tuesday, the market capitalisation on the DSE rose to Tk 30,511.31 crore while the figure was Tk 29,748.09 crore on Monday.
Meanwhile, stock prices on the prime bourse gained on Wednesday for the third consecutive day as the investors remained hopeful of a solution of the political crisis over electoral reform.
DSE all share price index gained 4.21 points or 0.33 per cent to close at 1297.79 on Wednesday, while DSE20 advanced by 7.80 points or 0.58 per cent.
‘Reaching to Tk 30,000 crore mark is an indication of a significant development of the capital market over the years,’ said Mansur Alam, executive director of the SEC.
He said all the stakeholders of the capital market, from investors to regulators, contributed to the growth of the market.
Over the years, awareness of the investors grew up and they gained confidence in the stock market for some market friendly moves by its regulators including legal and infrastructural developments, he said.
He said the government also contributed significantly to the market growth by offloading the shares of the Dhaka Electric Supply Company and the Power Grid Company Bangladesh, two state-owned entities, on the bourses.
The chief executive officer of the DSE, Salahuddin Ahmed Khan, said the market grew in depth over the years with the entering of a good number of companies into the market.
Echoing the SEC official, he said the inclusion of the DESCO and the PGCB, which have strong financial bases, put significant positive impact on the share market in this regard.

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

Trade deficit poised to fall in Q1
Asjadul Kibria

Country’s merchandise trade deficit with the rest of the world is likely to hover below $500 million during the first quarter of the current fiscal year, showed the indicative statistics.
Although the actual figure is not available as the central bank is yet to finalise the balance of payments estimation, proxy calculation revealed that trade deficit would be the lowest in two years.
Significant growth in export earnings and less import payment narrowed down the trade gap in July-September 2006 which was also reflected in 3.52 per cent appreciation of local currency against dollar in the first quarter.
The central bank statistics showed that the total value of fresh letters of credit for import registered 19.8 per cent growth to $4.23 billion in the first quarter.
Thus the actual import payment is likely to hover around $4.1 billion level as the difference on import L/C value and actual import payments generally ranges between $150-$200 million.
To calculate the free on board value, the Bangladesh Bank also deducted 10 per cent of the import value as freight and insurance charge which is later incorporated in the balance of payment table.
With this approximation, the import on f.o.b value is likely to come down to about $3.7 billion in the period under review.
On the other hand, Export Promotion Bureau statistics showed that export earnings stood at $3.25 billion in the first quarter of the current fiscal year. Having some marginal adjustment to incorporate in the balance of payment table, the figure will be almost same.
Thus trade deficit is likely to stand at $450 million in the period under review while the amount was $586 million in the same period of last fiscal year.
The trade deficit in July-August 2006 was around $150 million, almost half the amount of $352 million in the same period of 2005.
The import payment in July-August 2006 was $2.71 billion while the value of import L/Cs was $2.77 billion in the same period.
And, the adjusted figure of import in the balance of payment table was $2.45 billion in the first two months of the current fiscal year.
The central bank statistics also showed that in the first quarter of the fiscal year 2004-05, the trade gap was $410 million. Since then, the trade gap always stood above $500 million in every quarter up to last quarter (April-June) of the last fiscal year 2005-06.
The highest amount of trade gap stood at $1.17 billion in the third quarter (January-March) of fiscal year 2004-05, showed the central bank data.
The lower trade gap eased pressure on balance of payments, and having robust growth of remittance, the current account is also likely to maintain a substantial surplus in the first quarter.
The current account recorded a surplus of $414 million in July-August 2006 period while the amount was around $100 million in the same period of 2005.
In the last fiscal year, the total trade deficit was $2.88 billion that was also significantly lower from the amount $3.3 billion the fiscal year 2004-05.

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

APPAREL EXPORT TO US
India losing market to
Bangladesh, 3 others
Economic Times . New Delhi

Contrary to predictions, the US market for textiles and garments is not proving to be a cakewalk for India and China after the country dismantled quantitative restrictions on textile imports last year. Although both countries experienced steep increase in exports to the US in ’05, the momentum has slowed down considerably in the current calendar year.
In the case of China, the import curbs on certain categories of exports placed by the US in January ’06, under a special WTO dispensation, is the main reason behind slackening exports.
As for India, however, the growth slump is inexcusable, as it faces no such discriminatory treatment in US market. India is simply losing out in the fresh wave of competition from smaller players such as Bangladesh, Vietnam, Pakistan and Indonesia. Growing at a phenomenal pace, the countries have thrown a spanner in India’s export expansion plans.
Chinese apparel exports to the US recorded a phenomenal growth of 77.19 per cent in 2005 with exports in the first 10 months growing to $13.47 billion from $7.6 billion in the comparable period of ’04.
In 2006, the growth slowed down with garment exports during January-September 2006 registering a rate of just 7.58 per cent to $13.13 billion against garment exports of $12.2 billion in the first nine months of 2005.
Similarly, for India, garments exports to the US grew 30.56% during January-October 2005 to $2.52 billion from $1.93 billion in the same period of the previous year. In 2006, the growth slowed down to 10.75% during January-September to $2.51 billion from $2.27 billion in the first nine months of ’05.
On the other hand, during January-September ’06, Bangladesh recorded a growth of 24.7 per cent in garment exports to the US to $2.20 billion, Cambodia grew 26.28 per cent to $1.58 billion, Vietnam recorded a growth of 23.8 per cent to $2.5 billion while Indonesia surpassed India by exporting garments worth $2.76 billion, recording a growth of 27.85 per cent over its performance in the first nine months of ’05.
In comparison, in the first 10 months of 2005, Bangladesh showed a growth of just 18.3 per cent in supplies to US apparel market while Vietnam (1.18 per cent), Cambodia (18 per
cent) and Indonesia (18.4 per cent) also reported slower growth.
Despite being an LDC, Bangladesh has no duty-free access to the US, which means that its gain is for the sole reason of competitiveness.
Indian exporters have also suffered a major dip in the rate of growth in unit-value realisation during the period. Says RL Toshniwal of Indian Spinners Association, ‘Due to high raw material prices, Indian exporters have become weak in synthetic and blended textiles and clothing, which account for 60 per cent of the US market.’
Worse, in several categories where India has managed to maintain its market penetration, China is facing quota curbs.

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

Shortage of labour hits
Narsingdi farm owners
Our Correspondent . Narsingdi

FARM owners in Narsingdi have been facing problem in harvesting aman paddy due to acute shortage of labour.
The crisis of labour has pushed up their wage to Tk 130 per day at many places across the district this season from Tk 80 last year.
Farmers said 30 to 35 labourers are needed for harvesting paddy from one hectare of land. Most of the farm owners are not getting required number of labourers to harvest paddy from the fields.
The marginal farmers are now harvesting paddy by themselves. But the big farm owners have no option but to hire them with high wages.
Local people said that a large number of landless workers have migrated to different places within and outside the
district where many small and medium industries have sprung up. As the wages paid by the industries are much higher
many workers decided to stay back.
Yet many farm labourers preferred to stay at the industrial bet as the job in mills and
factories is almost permanent while the farm work is seasonal. The exodus of local labour to cities and towns has created labour crisis at all the upazilas of the district. The labourers from the neighbouring districts of Mymensingh, Kishoreganj and Netrakona have partially met their demand in Narsingdi.
Many land owners are now hiring women and child labour at a high rate to harvest paddy from the fields.

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

Current account posts $408m surplus
Balance of payments stronger in Q1
Asjadul Kibria

Country?s current account balance posted a huge surplus during the July-September period of the current fiscal year 2006-07 that significantly offset the deficit in financial account.
Having huge surplus in current account, the overall balance also maintained a surplus trend although foreign aid dropped significantly in the period under review, showed the Bangladesh Bank statistics.
The current account surplus stood at $408 million in the first quarter of the current fiscal year against wide deficit of $132 million in the same period of the last fiscal year, showed the central bank data.
The Bangladesh Bank Quarterly said that given the sizable current account balance, the overall balance of payments turned strongly positive in the fourth quarter of the last fiscal year.
?The current account is estimated to have recorded a surplus of 1 per cent of GDP in FY06 after recording a deficit of nearly 1 per cent of GDP in FY05,? said the International Monetary Fund in its latest country report.
?This reflects continued strength in exports of garments and in worker remittances, and a slowing in non-oil imports, brought about by a tightening in monetary policy and a depreciation of the taka by about
13 per cent since end-June 2005,? it added.
The trend is also true of the first quartet of the current fiscal year.
The overall balance stood at a surplus value of $133 million in July-September 2006 period while the value was negative or deficit $131 million in the same period of last year.
As the higher growth of export significantly outpaced the moderate growth of import payments, the merchandise trade gap also dropped to $417 million from $596 million in the period under review.
The balance of payments table, prepared by the central bank, showed that export earnings and import payments stood at $3.22 billion and $3.64 billion on free on board calculation basis.
The import payments, on the basis of C&F value, stood at $4.02 billion and import data on BoP was incorporated by deducting 10 per cent of C&F value.
The deficit on service trade, however, widened further to $362 million in the first quarter of the current fiscal year from $270 million in the same period of last fiscal year.
But robust growth in remittance inflow, amounting to $1.42 billion in July-September 2006, helped to turn the current account to significantly positive balance.
The central bank data further revealed that financial account deficit widened to $35 million from $13 million during the period under review mainly due to decline in foreign aid.
The economic relation division data showed that total aid disbursement during the first quarter of the current fiscal year declined to $129.26 million from $273.84 million in the same period of 2005.
Net receipts of foreign aid during July-September 2006 stood lower at $35.19 million, against $179.64 million during July-September 2005.
The foreign direct investment increased marginally to $188 million in the first quarter of current fiscal year from $181 million in same period of last fiscal.

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

Contributions of home-based workers to GDP
Nazrul Islam

Amina Begum (35), a mother of three children, of Sheikh Para village in Bera Upazila of Pabna earns, on an average, Tk 1,200 a month producing embroidered quilt or "nakshi kantha." Her extra earning, along with her rickshawvan-puller husband's income, has brought a sort of economic security in her family. They could send their wards to school, buy their dresses and give them two square meals. Not only that, her husband has opened a monthly Tk 500 deposit scheme for future security of the family. When Amina compares her life style with her neighbours, who did not engage themselves in any incoming generating activity, she could understand how happy she is.

Not only Amina, about 100 women of Sheikh Para are engaged in various home-based work, earning a sizeable amount of money and contributing to the family. Rural women are usually involved in home-based work like producing various handicrafts items such as embroidered quilt, wall mat, floor mat, carpet, hand fan, clay jewelry, decoration pieces, bamboo and cane products, sewing, embroidery and tailoring, and also poultry farming and homestead gardening.

The funding and raw materials required for such work are not hard to obtain for a rural woman. Many raw materials are available at a nominal price, or even free of cost, in rural areas. The initial funding required is managed from family members, cooperatives or NGOs having programs to develop home-based workers and handicrafts producers. Work, on contract or piece-rate basis, is also commissioned by organisations and intermediaries who are in handicrafts marketing and exporting, and in such cases the funding and raw materials are often provided by the commissioning organisations.

Women in this part of the world are traditionally creative and are gifted with artistic skills that they apply in producing handicrafts. The embroidered quilts made by Bangladeshi rural women are appreciated all over the world for their creativity and craftsmanship. These are exported regularly to the developed world.

According to Bangladesh Bureau of Statistics data, there is some 40 million active women labour force in the country. Among them, approximately 15 million women are engaged in various home-based or household work. A pilot survey by Bangladesh Home Workers Women Association (BHWA) in Bera upazila in Pabna shows that a home-based woman worker earns Tk 1,000 a month, on an average. For example, in the month of September, 113 women in Sheikh Para village earned Tk 182,100, in Madhy Karamja village 99 women earned Tk 81,000, while 31 women in Sandel Para earned Tk 69,400.

Although the garment industry is considered to be the largest provider of jobs to unskilled women it provides jobs to only 1.5 million women, and is mainly based in urban areas. The industry would not be able to accommodate millions of unskilled, and mostly illiterate, women residing in rural Bangladesh. Therefore, expansion of home-based work has an immense prospect, through which millions of women could earn their livelihood and improve their socio-economic condition.

By engaging in home-based work the underprivileged women are not only improving their own lives, and that of their families, but are also contributing positively and effectively to the economy of this country. But unfortunately, the contribution of the home-based workers is not reflected in government statistics. The BBS data shows that the contribution of the industrial sector to GDP in FY 2002-03 was Tk 462.37 billion (constant price of 1995-96). Of the amount, the contribution of large scale industry was Tk 325.58 billion, while small scale industry contributed Tk 136.80 billion. But the contribution of home-based workers was not included here. If the 15 million home-based workers earn, on an average, Tk 1,000 a month then their annual contribution to the GDP would stand at Tk 150 billion.

Women are socially repressed and financially deprived. They are vulnerable to abuse and discrimination from the family, the society and the economic mechanism of the country. At the heart of their problems are two deep-rooted factors: patriarchal attitudes towards women dictate that women should not participate in economic activities and, therefore, there is no need for them to obtain education.

The age-old belief that a woman's place is behind the curtains has been sustained by religious fundamentalism and conservative mindsets. Secondly, because women have largely remained economically unproductive, and also remained mostly illiterate, they are deemed to be weak and inferior, and as a result they become the target of abuse and discrimination. The two factors are correlated, and form a cycle in which the women of our rural society are thrown into from the moment of their birth.

To break out of this cycle, women must take a greater part in economic activities. They should be turned into tools for earning money. To achieve gender equality and earn respect they must obtain education and self-awareness. Only then will the women of our country be empowered. And through this process of self-development they will be able to contribute positively to the economy of the country.

There is hype in our country that micro-credit is a magic pill for eradicating poverty. But, in fact, micro-credit itself can't create any income. The micro-credit financing organisations provide loans without any collateral and yet, at the same time, they charge very high rate of interest. This becomes a tremendous burden for the poor, and extremely poor, loan recipients. Very often the small loans they obtain in the first place cannot generate further income, as originally intended, through investment in income generating activities like cottage industry. But the pressure of repaying the loan plus interest, usually in weekly installments, subjects them to various forms of torture by the NGO officials.

Quite often, whatever meagre properties the loan defaulters have, like cattle heads, crops or small lands, are forcefully taken away by credit giving NGOs. This compels the poor loan recipients to take further loan from other organisations to pay back the first loan. And doing so, they are plunged into a cycle of debt and poverty. This phenomenon has become widespread in recent times, and it has tarnished whatever benefits the numerous micro-credit programmes had in the beginning. The image of micro-financing has plummeted and women, who were supposed to receive the benefits of micro credit, are the worst sufferers since these loans are given to them.

The plight is compounded by the fact that many rural women hand over the funds to their husbands to invest in income generating activities and, in the end, become helpless and burdened with debt. This scenario, which is common in recent times among a widespread rural population of the country, has proved the futility of implementing micro-financing in our country, despite its good intentions. It is home-based work, or any other form of income-generating activity, that can help a person earn something through the micro- credit.

Bangladesh's stride towards economic upliftment, despite all sorts of socio-politico-economic obstacles, is possible only due to the hard-working marginal people of this country. Women, specially, should be given the credit. Although home-based workers contributed about Tk 150 billion to the GDP, their contribution in the national economy is ignored, or not counted. The contribution could be increased if a planned initiative is taken, evaluating their inputs to the national economy.

Garment exports to EU jump
Value increases by 35pc, volume 16pc

Readymade garment exports to the European Union, the largest destination of ‘Made in Bangladesh’ apparels, increased tremendously in the first eight months of the current year, said European Commission.

Making a turnaround from the previous year’s performance, Bangladesh replaced Romania to be the number four source of textiles and clothing for the EU market during January-August period.

Exports increased by nearly 35 per cent in value and more then 16 per cent in volume, showed latest statistics of the commission.

Exporters and trade experts pointed out that an interim embargo on certain categories of Chinese garments in the EU market, European buyers’ increased interest in procuring products from low-cost sources and enhanced capacity of Bangladeshi knitwear and denim industries propelled the significant growth.

‘Exports have been increasing significantly from end 2005 as buyers of low cost garments rushed to Bangladesh after the European Union imposed embargos on some categories of Chinese garments in the mid-year,’ said Abdus Salam Murshedy, the immediate past vice-president of the Bangladesh Garment Manufacturers and Exporters Association.

The embargo on the Chinese garments will last until 2008.

He claimed that Bangladeshi garments exporters offer most competitive prices which attract buyers.

The European Commission data shows that during the period, Bangladeshi exporters earned euro 3.19 billion by shipping 4,33,428 tonnes of apparels and textile products against euro 2.37 billion by shipping 3, 72,626 tonnes in the first eight months of 2005.

Exports declined in 2005 as the EU market was flooded with Chinese garments. Export earnings in the year declined by about euro 200 million against the same period of 2004.

Professor Mustafizur Rahman, research director of Centre for Policy Dialogue, said, ‘Embargo on Chinese products, competitive prices, enhanced capacities in knitwear and denim industries helped local exporters to increase exports.’

The international trade analyst added that reduction in production of low cost garments in some EU countries including Romania and Portugal also made the EU buyers to come to Bangladesh.

‘Smooth supply of electricity and operations in ports and enhanced capacity in backward linkages industries are required for the sustainable growth of the garments exports,’ he said.

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

Remittance hits all time high

http://i78.photobucket.com/albums/j98/mirzazeehan/busi-b.jpg

Inflow touches $598.2 million in November;
totals $2.3 billion in 5 months
Asjadul Kibria

Remittance inflow in November totalled $598.2 million, the highest amount in a single month in the country’s history, cushioning the blow on balance of payments and easing pressure on exchange rate.
The November earnings have pushed up the total figure of remittance in the first five months of the current fiscal year to $2.30 billion, posting 30 per cent growth over the same period of last fiscal.
Higher conversion rate lured expatriates into sending home more money defying the concerns over the persisting political turmoil, bankers said. Increasing remittance inflow is a common pre-election phenomenon, but the amount this time broke all previous records, they said.
The November earnings were 58.6 per cent more than the amount sent home by Bangladeshis living abroad in October, showed the provisional estimation of the central bank. The remittance earnings were at $377 million in October.
The total inflow of remittance in July-November period of fiscal year 2005-06 was $1.76 billion, showed the central bank data.
The total inflow in first five months of the current fiscal year 2006-07 also overshot the annual total inflow worth $1.88 billion of the fiscal 2000-01 by wide margin.
The record increase in remittance despite political turmoil last month provided a strong backup to the balance of payments and also eased the pressure on exchange rate.
The first quarter data showed that current account maintained a record surplus of $408 million while overall balance also turned into surplus from deficit in the same period of the last fiscal year.
Bankers were of the view that significant depreciation of taka against dollar has encouraged the expatriate Bangladeshis to send more money through the official channel.
Estimation showed that taka depreciated by 1.22 per cent in November 2006. The average taka-dollar exchange rate was Tk 67.7 per dollar at the beginning of November and Tk 68.54 at the end of that month.
But the exchange rate increased as high as Tk 72 at one point of time in November, showed the central bank data.
‘The [last] week of November began with the US dollar trading against Bangladeshi Taka in the inter-bank market at 72.30,’ said a weekly review report of the Citibank NA.
‘With a surplus supply of the greenback during the first half of the week the BDT advanced against the USD,’ it added.
‘The higher conversion rate has definitely attracted the expatriates to send more foreign currency to the country,’ said a fund manager of a leading commercial bank.
‘At the same time, overseas Bangladeshis have been adjusted with the current political situation and enhanced the amount of remittance.’
Some bankers observed that in the pre-election period remittance inflow usually increases and the latest scenario is a reflection of the trend.
The higher inflow of remittance has also contributed to the country’s gross foreign exchange reserve which stood at $3.57 billion on Tuesday.
Bankers held that if the trend continues, the annual inflow will cross $5.5 billion level in the current fiscal year.
In the last fiscal, the total inflow of remittance stood at $4.80 billion registering 25 per cent growth from the previous fiscal.

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

French firms show interest in Bangladesh economy

As Bangladesh economy will grow faster in the next two years, French companies are getting more interested in the country, French Ambassador in Dhaka Jacques-Andre Costilhes said yesterday.

If the country can cut corruption, the economic growth will accelerate in the coming days, he said this at a briefing of the France-Bangladesh Chamber of Commerce and Industry (CCIFB) in the capital.

The ambassador expressed his hope that a trade fair involving French companies as well as other European companies will be held in Dhaka next year as part of the move to develop economic relationship between Bangladesh and France.

The briefing session was arranged on return of a business delegation of the chamber from India. The delegation participated in France-India Forum 2006 in New Delhi.

CCIFB President Syed Farhad Ahmed, Director Rifat Rashid, French Embassy's Trade Commissioner Dominique Simon and Deputy Trade Commissioner Sophie Clavelier Khan also spoke.

Farhad said Bangladesh can start call centre and data entry business with France companies as the country has a great potential.

"If the government and the French Embassy jointly launch language training programmes, it will help local entrepreneurs start business on data entry and call centre operation," he said.

Farhad said as the Indian IT firms are getting more sophisticated and staying reluctant to carry out outsourcing jobs like data entry, Bangladeshi companies can utilise the opportunity, he added.

Simon said French companies like Lafarge are investing in Bangladesh in construction, telecoms, and alternative power sectors paving the way for a greater economic relation.

He said potential also remains in retail business and aeronautical sector in Bangladesh.

A 12-member business delegation from Bangladesh met French companies in New Delhi on the sidelines of 'France-India Forum 2006' held from December 3 to December 8 where 225 French companies took part.

Bangladeshi companies held business-to-business meeting with French companies of different sectors such as pharmaceutical, IT, transport and logistics, chemicals and service.

http://www.thedailystar.net/2006/12/14/d61214050362.htm

The trade value between France and Bangladesh crossed $1 billion during the first 10 months of the current year, French diplomats and officials of the Franco-Bangla chamber said Wednesday.

Exports of France to Bangladesh during the first 10 months of the current year have reached 75 million euro ($100.5 million) gowning robustly by 60 per cent over the corresponding period in the previous year while Bangladesh’s exports to France amounted to 680 million euro ($911.2 million) with a 25 per cent growth,’ said Dominique Simon, trade commissioner of French embassy.

At a press conference held at a city restaurant Wednesday, officials of the French embassy and leaders of the France-Bangladesh Chamber of Commerce and Industry (CCIFB) were briefing journalists on recent activities of the chamber and the annual gala evening scheduled to be arranged by the chamber on December 15.

Bangladesh exports mainly knitwear, woven garments and frozen shrimps to France while imports machinery, aviation equipment, telecom and electrical equipment, perfumes, cosmetics and cereals from the EU country.

Jacques Andre Costilhes, French ambassador in Dhaka, said, ‘Regarding growth on business here, we are not too worried with political difficulties (occurring in Bangladesh during the past few weeks).’

Both Costilhes and Simon observed Bangladesh’s political situations as temporary phenomena that also occur in France but they avoided to put their evaluations on the latest political developments in Bangladesh.‘Delegation of the European Union in Dhaka is responsible to put observations on political developments here and its views are shared by France,’ he said.

The French trade commissioner observed that in comparison with its neighbours, Bangladesh is open and liberalised for foreign businesses.

He cited French companies including Lafarge, Total, Alcatal and Areva that were doing comfortable business here and informed that French companies were coming forward to partner the government in modernisation projects in aviation sector. ‘Several other French companies are getting interested in Bangladesh in recent days.’ Syed Farhad Ahmed, president of the CCIFB, said Bangladeshi businessmen had encouraging interactions with the officials of several globally famed French companies at the France-India business forum held at Delhi during December 3 to 8.

After talking to their Bangladeshi counterparts, the French businessmen turned enthusiastic on Bangladesh’s potential sectors including retail and agro business, he said, informing that his chamber plans a France-Bangladesh business forum in Dhaka by sometimes in 2007. He said Bangladesh has huge potential to increase trade by serving France businesses through call centres, back office support and data processing with people skilled in IT and French language stationed in Dhaka.

Rifiat Rashid, director of the CCIFB, told the conference that the French gala evening this year would include ballet performance from the National Ballet of Paris and Bangla music and dance. Sophie Clavelier Khan, assistant trade commissioner of the embassy, also spoke at the conference.

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

Electronic system of payment of electric bill is being introduced on December 19 in Chittagong as a model that will be later extended countrywide.

Some 3 lakh residential and commercial power subscribers of the area can primarily pay their bills through 200 ‘Bill Pay’ centres. The centres will receive bills from 9:00am to 10:00pm everyday, including on weekends.

After introduction of the system, bills of the subscribers will be directly deposited with PDB account. ‘Moreover, the system will reduce mistakes and complexities,’ said an official announcement Thursday.

Later, subscribers can pay their bills round the clock through their mobile phones. They can also know about all their bill-related information through SMS.

To this effect, an agreement was signed between the Power Development Board and Grameen Phone at WAPDA Bhaban in Dhaka on Thursday. The PDB board secretary, Abdul Jalil, and the Grameen Phone deputy managing director, Frank Fodstad, signed the deal on their respective sides.

The PDB chairman, ANM Rezwan, board members and other top officials of the state-owned entity and the private-sector Grameen Phone were present at the agreement-signing ceremony. Speaking on the occasion, the PDB chairman said, ‘The new system will be expanded across the country if proved successful in Chittagong.’

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

Forex reserves hit record $3.8b on remittance, export growths
Star Business Report

The country's foreign exchange reserves hit a new high of $ 3.8 billion yesterday, thanks to robust remittance and export growths.
Besides, the reserves have also upped the value of taka against dollar. The greenback was selling at Tk 69 this week, against Tk 69.50 the last week. Dollar price reached record Tk 74 in recent days.


Earlier, the country's remittance hit a record high in a single month as it reached US$ 598 million in November.


Bangladesh Bank sources said the remittance inflow surged as the overseas workers are sending money ahead of Eid-ul-Azha, contributing to rise in reserves that reached $ 3790.33 million yesterday.


However, the foreign reserves will reduce next month, as Bangladesh has to pay significant amount of export-import bill to the Asian Clearing Union (ACU), sources said.

But the reserves may cross $ 4 billion-mark before the payment if the remittance flow continues, the sources added.


The overall remittance rose to $ 2305 million during the first five months (July-November) of the current fiscal (2006-07), posting a strong 30 percent growth over the same period of last fiscal.


On the other hand, the country's continuing strong export growth since the last fiscal year is also contributing to rise in reserves.

According to the Export Promotion Bureau (EPB), in the fiscal 2005-06 Bangladesh exported goods worth $10.52 billion, registering 21 percent growth. The export is also rising in the current fiscal year with approximately 31 percent growth

EPZs register over 15pc growth in investment during July-mid Dec
Bazlur Rahman
12/18/2006

The Export Processing Zones (EPZ) area in the country registered more than 15 per cent growth in the investment during July to mid December in 2006-07 compared with the corresponding period of the last year despite all the hindrances including political hostility and higher cost of doing business.
Bangladesh Export Processing Zones Authority (BEPZA) sanctioned a total of 27 plots in the EPZ areas and a total of more than US$290 million investment has been made during the period.
EPZs area also created employment opportunities for 35,737 people during the period, of which 32,276 are Bangladeshi BEPZA deputy general manager Nazma Alamgir said.
For the first time foreign investors have started showing interest in investing in the far-flung EPZs including Uttara EPZ in Nilpharmari due to the aggressive marketing strategy by BEPZA authority.
On December 3 last BEPZA executive chairman Ashraf Abdullah Yusuf visited Uttara EPZ with a group of Chinese investors and they have submitted a proposal to set up industries in that EPZ area, said Nazma.
The BEPZA is expecting huge investments in this far-flung EPZ, which has been failing to attract significant investments since its establishment in 2001 on 267.7 acres of land with 221 plots.
"After assuming office five months ago I have started sophisticated marketing strategy depending upon the government- offer for foreign investors to attract FDI and our strategy has been fruitful," said Ashraf Abdullah Yusuf.
The Chinese investors who visited Uttara EPZ-Nilphamari with the BEPZA chairman expressed satisfaction over the facilities and they have submitted the investment proposal, Nazma pointed out.
But the amount of investment in the proposal has yet to be disclosed by the BEPZA authority.
Investments in these far-flung EPZs might increase several times if the country's political situation remains business-friendly and it could reduce cost of doing business, said an official of BEPZA.
Compared with any other country Bangladesh government offers most lucrative terms in the EPZs area including 100 per cent profit repatriation facility, visa for consecutive 6 months for foreign investors and citizenship for individuals who make investment of more than US$ 50,000.
But the political stalemate, high cost of doing business including red-tapism have been working as the bottleneck in attracting more FDI to the country, a BEPZA official said.


http://www.financialexpress-bd.com/index3.asp?cnd=12/18/2006&section_id=7&newsid=46948&spcl=no

Tube train move gathers pace


The Ministry of Communications has decided to seek approval of the cabinet committee on economic affairs to construct an underground railway network in the capital to ease traffic congestion. It has taken the move after the Private Infrastructure Committee (PICOM) of the Board of Investment (BoI) has drawn up the US$ 898.55 million venture under a private infrastructure project.

Communications Secretary Ismail Zabiullah told the FE that construction of a metro subway in the capital was a necessity to cope with the requirement of a mega city. Zabiullah, however, avoided making comment when asked whether the cabinet committee on economic affairs under the interim government can take any decision about such a giant private infrastructure project.But, he said, the cabinet division has directed the ministry to re-examine the project before sending it for the approval of the committee.

"The project proposal was placed before the cabinet division at the fag end of the immediate past government and it was sent back to the communication ministry for further scrutiny," he said. The ministry has already held an inter-ministerial meeting and completed necessary re-examination of the project before sending it again to the cabinet division, he added.

Contech Limited, a local construction firm, will build the 52-kilometre underground railway network with six major routes in the capital city under build, operate and transfer (BOT) basis, ministry sources said. The construction, as per the proposal of the firm, will be 'cut and cover' method and the whole process will be completed in four years by a consortium of a number of foreign and local organisations. The construction firm will operate the tube rail for 34 years before transferring it to the government, sources added.

The communication ministry that recognises the necessity of an underground railway for solving the traffic problem and easing transportation of the city people has, however, decided to send the proposal for approval without conducting a technical feasibility study. But it has done financial feasibility of the project, ministry officials said.

The ministry invited a pre-qualification bidding in February 2003 to set up the underground railway on BOT basis in Dhaka. Only two companies responded, of which the local firm Contech Limited was qualified.

According to Contech pre-qualification bid proposal, it is committed to keep the fare below that of surface transport and will not apply tunnel boring method that is very expensive and time consuming. India set up metro rail in Delhi and Kolkata with 'cut and cover' method.

According to the proposal, a firm from Hong Kong will work as the constructor, Sena Kallyan Sangstha, Bangladesh as the financier and project manager, the Bangladesh University of Engineering and Technology as the lead consultant, Hitachi of Japan as equipment supplier, and JBIC (Japan Bank for International Cooperation) as provider of supplier's credit and syndicated bank loan.


http://www.financialexpress-bd.com/index3.asp?cnd=12/18/2006&section_id=1&newsid=46998&spcl=no

Good for Bangladesh. Much needed thing. Thanks for the info. Banglabir.

Great news. I heard about this a long time ago but then it was stalled for a bit. Does this mean its back on track?

QUICK OVERVIEW

Debt - external: $16.5 billion (1998)

Economic aid - recipient: $1.475 billion (FY96/97)

Currency: 1 taka (Tk) = 100 poisha

Exchange rates: taka (Tk) per US$1 - 69.000 (Ocotber 2006), 49.085 (1999), 46.906 (1998), 43.892 (1997), 41.794 (1996), 40.278 (1995)

Fiscal year: 1 July - 30 June

Growths in remittance and exports have contributed to an overall positive balance of payment (BoP) in the last fiscal year (FY 2005-06).

Country's trade imbalance also recorded a decrease of 13 percent as export outweighed import in the last fiscal.

Overall BoP recorded a surplus of US$ 365 million in the FY '06, which was a smaller surplus with $ 67 million in FY '05, according to Bangladesh Bank statistics.

Exports saw a 21.63 per cent growth during last fiscal whereas in FY '05 the growth was 13.83 per cent.

Earning from export amounted to $10.52 billion in FY' 06, which was $8.65 billion during FY '05.[citation needed]

During the last fiscal, growth in import was 12.05 percent or $1431 million whereas export had a growth of 21.63 percent or $1849 million.

On the other hand, remittance inflow maintained the growth rate over 24.78 percent, touching $4.8 billion mark in the last fiscal mainly due to increase in skilled labour abroad and government's efficient move against money laundering.

Due to better performance by the export sector, the country's trade deficit decreased largely in the last fiscal. Reducing by $418 million country's deficit in trade balance now figures at $2879 million.

Despite larger service and income deficit, current account balance recorded a surplus of $572 million in the last fiscal against the deficit of $557 million during FY '05.

The overall BoP recorded surplus despite decline both in foreign aid and net foreign direct investment (FDI) in the last fiscal.

According to official statistics from Bangladesh government, net FDI amounted to $675 million in financial year 2005-06, which was $800 million in FY '05.

Bangladesh Bank statistics also reveals that foreign aid amounted to $1241.21 million in last fiscal, which was $1260 million in FY '05

Source: http://en.wikipedia.org/wiki/Economy_of_Bangladesh

Bangladesh's forex reserves hit record 3.8 billion USD

Bangladesh's foreign exchange reserves hit a new high of 3.8 billion U.S. dollars on Sunday, thanks to robust remittance and export growths, The Daily Star reported Monday.

Besides, the reserves have also upped the value of taka against dollar. The greenback was selling at 69 taka this week, against 69. 5 taka the last week. Dollar price reached record 74 taka in recent days.

Earlier, the country's remittance hit a record high in a single month as it reached 598 million dollars in November.

The central bank sources said the remittance inflow surged as the overseas workers are sending money ahead of Eid-ul-Azha, the Muslim religious festival, contributing to rise in reserves that reached 3.79 billion dollars Sunday.

However, the foreign reserves will reduce next month, as Bangladesh has to pay significant amount of export-import bill to the Asian Clearing Union, according to the central bank.

But the reserves may cross 4 billion dollars mark before the payment if the remittance flow continues.

The overall remittance rose to 2.31 billion dollars during the first five months (July-November) of the current fiscal (2006-07), posting a strong 30 percent growth over the same period of last fiscal.

On the other hand, the country's continuing strong export growth since the last fiscal year is also contributing to rise in reserves.

According to the Export Promotion Bureau (EPB), in the fiscal 2005-06, Bangladesh exported goods worth 10.52 billion dollars, registering 21 percent growth. The export is also rising in the current fiscal year with approximately 31 percent growth.

http://english.people.com.cn/200612/18/eng20061218_333629.html

Ogilvy starts journey in Bangladesh

Ogilvy & Mather Worldwide and Marka yesterday signed an agreement to establish a full-service brand communications and advertising agency in Bangladesh, says a press release. O&M will own majority shares in the new agency, which will operate as Ogilvy & Mather Communications Private Limited.

Ogilvy & Mather Communications' clients will include Ogilvy's worldwide and regional clients as well as companies currently being serviced by local company Marka.

"This new Bangladesh agency completes the foundation to our South Asia strategy," says Miles Young, chairman of Ogilvy & Mather Asia Pacific. "We have a strong network in India and we just established fully owned operations in Pakistan. At the same time, Marka is well known as a nimble, solutions-oriented player in the local market."

Commenting on the merger, Pratap Bose, CEO of Ogilvy & Mather India, said "Ogilvy would bring in its fully armoury of specialised skills into the Bangladesh market and provide a quantum difference to what clients have traditionally been used to." Fahima Choudhury, managing partner of Marka, said, "We at Marka are looking forward to our new venture with Ogilvy & Mather."

http://www.thedailystar.net/2006/12/20/d61220051370.htm

Lafarge Surma zeroes in on domestic cement market

Lafarge Surma zeroes in on domestic cement market
Sarwar A Chowdhury, back from Chhatak

As Lafarge Surma Cement Ltd has started production, the French-Spanish joint venture zeroes in on domestic market. "Bangladesh is a growing market and there has always been a demand for quality cement. So, the thrust is to sell our Supercrete brand cement in the local market as Bangladesh is our major market," Yong Ngai Chan, managing director of the company, told a group of reporters during a media tour to the cement plant at Chhatak in Sunamganj district on Wednesday.

"As we are producing clinker in our own plant using raw materials -- limestone and shale -- from our own quarry in Meghalaya, India, we can ensure consistent supply of cement," said Chan.


Jointly built by world leader in building materials Lafarge of France and renowned Spanish cement maker Cementos Molins, Lafarge Surma Cement is the first fully integrated dry process cement manufacturing plant in Bangladesh.


According to Chan, Lafarge Surma cement plant, built on an area of about 90 acres of land on the bank of river Surma, is one of the best and technically advanced plant in the entire network of Lafarge, which has operations in 76 countries.


"It is also a unique cross border project as the cement plant is linked between its quarry site at East Khasi Hills in Meghalaya and clinker and cement manufacturing plant at Chhatak in Sylhet with a 17 kilometers (ten kilometers in Bangladesh side and seven kilometres in Indian side) long belt conveyor," he said.


The conveyor belt has a capacity of bringing 800 tonnes of limestone and shale per hour from quarry site.


Lafarge also set up a modern crushing plant at the quarry site that crushes the limestone and feeds into the belt conveyor to be transported to the cement plant in Bangladesh. "In the quarry there is a stock of limestone for over 50 years," the managing director said.


The managing director said at the moment the cement plant has the capacity of producing 1.5 million tonnes of cement per year. "We are also studying the feasibility of increasing the capacity," he added.


Chan also said there is a chain of extremely high standard quality control system from the raw materials to the finished products, as the plant has the state-of-the-art high tech equipment to test and ensure quality.


Replying to a query, Chan said around US$ 270 million was invested in the cement plant. "We also expect to make profit from the next year," he hoped.

The company started its trial production of clinker in August, commercial production of cement in September and marketing of Supercrete cement in November this year.


Apart from cement production, Lafarge is also carrying out a community development project, under which the company is running a school to educate the children of the people, who have been rehabilitated from the project site.


Construction of the project began in late 2003. Earlier, a massive land development was done for raising the 90 acres of landmass to be flood safe. Over three million cubic metres of sand and earth were filled in the area.
A view of the newly launched Lafarge Surma Cement plant on the bank of the Surma at Chhatak in Sunamganj.

http://www.thedailystar.net/2006/12/22/d61222050261.htm

RMG exporters see $3b
sales in USA in 2006
Kazi Azizul Islam

Readymade garment exporters predict a robust $3 billion earning from their single largest market, USA, where they had already shipped apparels worth about $ 2.5 billion until October.
Figures released by the US Department of Commerce last week showed that with about $280 million in October, Bangladesh’s apparel exports to USA during January-October period stood at $2,485 million.
‘Our export earning from USA is most likely to cross $3 billion mark in 2006,’ said Abdus Salam Murshedy, immediate past vice-president of Bangladesh Garment Manufacturers and Exporters Association.
Murshedy’s Envoy Group owns several large-sized garment manufacturing units, which are specialised in woven garments-shirts, trousers, mainly suiting American buyers.
‘Bangladeshi apparels are now more price competitive than other suppliers. The re-imposition of US interim quota restriction on certain categories of Chinese garment in mid- 2005 helped our exports post a robust growth in the current year,’ said the apparel sector leader.
To check the flooding import of cheap Chinese apparels hitting hard local industry, the US authorities, using a WTO provision, imposed limits on Chinese exports in the middle of 2005.
That proved a boon, though short-term, for Bangladesh’s apparel sector and helped it overcome the setback of the expiry of export quotas that gave it fortune for the decades, earlier.
Bangladesh’s apparel exports stood around $7.9 billion, or more than three-fourths of the country’s $10.5 billion export portfolio in the past fiscal ended in June.
US buyers alone import more than 33 per cent of the country’s garment exports while European Union as a group absorbs nearly 55 per cent.
By October, Bangladesh’s apparel export earning from USA in terms of value was about 25 per cent higher than the year-ago period, US commerce office said.
In 2005, the first year after the textile export quota phased out in US market, Bangladesh’s readymade garment exports there increased by 20 per cent to $2.38 billion.
Export performance in that year belied the fears aired by trade analysts that the end of multifibre arrangement from January 1, 2005, would bring a doomsday scenario for the country’s apparel sector.
Earlier in 2004, growth in garment export to USA was around 7 per cent to $1,978 million

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

BB sees 7.1pc GDP growth this fiscal

The Bangladesh Bank (BB) yesterday forecast an overwhelming 7.1 percent growth in the gross domestic product (GDP) for the current fiscal against the donor agencies' 6 percent projection considering pre-election political unrest.

Defending the higher growth fixation, the central bank consultant Syed M Ahsan said they forecast such higher rate mainly due to well performances by the industrial and agriculture sectors.

However, he said the projected growth could not be achieved if hartals, strikes and power shortage continue in future.

Earlier, the Asian Development Bank in its Quarterly Economic Update for Bangladesh, released in September 2006, said the GDP growth rate may stand at 6 percent during the FY07 as the country is facing several problems including pre-election political disruption, power shortage and infrastructure constraints.

"It is seen that the aggregate GDP growth projection for the current FY07 is in the range between 6.6 percent and 7.1 percent," stated the central bank's Monetary Policy Review released yesterday. The BB's Policy Analysis Unit prepared the review.

According to the BB consultant, the central bank last fiscal projected a growth rate of 6.3 to 6.8 percent, which was near to the provisional estimate of Bangladesh Bureau of Statistics of 6.7 percent.

The central bank review also recommended further raise in petroleum price even if it remains unchanged in the international market. It observed that the hike might help stop petroleum smuggling to India.

"The government should increase the petroleum price as soon as possible," the BB consultant said replying to a query.

The review said the pricing issue assumes even greater importance due to the continuing accumulation of debts of Bangladesh Petroleum Corporation and the other state-owned enterprises, which are not only jeopardising their financial solvency but also making the lending commercial banks (mainly the nationalised commercial banks) vulnerable.

The review projected that the industrial sector is likely to grow in between 9.5 and 10.5 percent, service sector in between 6.6 and 6.8 percent and the agriculture sector is likely to yield 2.8 to 3.4 percent growth rate during the current fiscal.

http://thedailystar.net/2006/12/25/d6122501085.htm

great news for the bangladeshi economy, clearsky!!! GDP growth at the rate of 7.1......amazing.........hopefully if Bangladesh keep up at this pace of GDP growth rate, Insallah we will become tiger economy in the south asia soon in the future!!!!

Election expenses unlikely to influence price situation: Salehuddin
BB upbeat about FY '07 growth prospect
FE Report
12/27/2006

The central bank expects a 6.8 per cent growth in gross domestic product (GDP) in the current fiscal but it has identified seven downside risks, including inflationary pressure, higher global oil prices and political uncertainties.
Other risks are under-pricing of energy products, serious power shortage, probable adverse effects in the readymade garments (RMG) sector from 2008 onwards due to the expiry of restrictions on China and possible slow progress in structural reforms in the election year.
"….real GDP growth has been projected to increase to 6.8 per cent in FY07 sustaining at 7.0 percent in FY08 and FY09, aided by improved macroeconomic stability and intrinsic resilience, buoyancy in the overall agriculture sector growth, steady growth in the manufacturing sector, SOE and NCB reforms, and sustained improvement in the investment climate," the Bangladesh Bank (BB) said in its annual report for the fiscal year 2005-06, released Tuesday.
"It's our cautious GDP estimate … it can go up to 8.0-9.0 per cent if the economy gets an enabling environment," Bangladesh Bank Governor Dr Saleh Uddin Ahmed told a press briefing.
Though the economy has been facing the challenges of the Multi-Fibre Arrangement (MFA) phase-out and persistent fuel price hike, assuming the continuation of prudent policies and structural reforms, the near and medium term economic prospects of Bangladesh appear favourable, the report observed.
The central bank sees a better future for the country after amicable solution of the political impasse that has taken huge toll on the national economy.
"Economy sustained the political uncertainty during the last few months as the farmers in rural areas were not sitting idle while private sector overcame the political unrest with their own creativity," he said replying to another question.
"We are looking for a better future for the country. We will achieve the growth target in FY 07," the BB Governor Salehuddin Ahmed told reporters after releasing the annual report.
He also expressed the hope that the political uncertainty would be eased in the near future as all political parties are joining the election.
"Initiatives to remove infrastructural inadequacies, especially the power shortages, should be taken to support the near and medium term GDP growth targets and to improve external competitiveness," the BB report suggested.
The probable adverse effects from the quota elimination for Bangladesh may come into reality after 2008, when the restriction imposed on China will expire, the report observed.
Last Sunday, the central bank Policy Analysis Unit (PAU) projected the GDP growth for FY07 in the range of 6.6 to 7.1 per cent because of higher growth in industry and service sectors.
Inflation is projected to decline to 6.0 per cent in FY07 from 7.2 per cent of FY06 and gradually to 4.5 percent in FY09, with easing of domestic supply bottlenecks and an appropriately tightened monetary policy stance towards maintaining price stability, coupled with the support of a prudent fiscal policy, the BB annual report projected.
"We are trying to keep the inflation rate below 7.0 per cent with our policy supports," the central bank governor said, adding that the inflationary pressures on economy went up in October last due to higher consumption of different essentials items during the Ramadan.
About election expenditure, the BB governor said such expenses will not have any direct impact on the economy but sale of some products like tea, cigarette and soft drinks may increase during the election period.
When asked about the huge underhand dealings when it comes to vote- buying, the central bank chief said such transactions are not reflected in the market immediately.
Referring to the government's borrowing from the banking system, the BB governor said the borrowing has increased from the banking system due to lower foreign fund flow and decreasing trend in revenue earnings.
"We have already conveyed our concern to the government in this connection," Salehuddin added.
According to the statistics, the country's consumers' price index (CPI) inflation has slightly increased to 7.30 per cent on a point-to-point basis in October last from 6.89 per cent in September 2006.
Besides, the inflation rate moved up to 6.98 per cent in October 2006 from 6.97 per cent in September last on annual average basis, the Bangladesh Bureau of Statistics (BBS) data showed.
"Stabilising the inflation rate is a major challenge for the policymakers because a low and stable rate of inflation is critical for accelerated economic growth and poverty reduction," the report said.
Continuation of cautious monetary policy along with strong administrative measures to check syndicated control of business, extortion and smuggling are expected to help contain the rising trend of inflation, it added.
The BB also suggested for working hard on WTO negotiations which are likely to resume in the near future in order to ensure a significant proportion of proposed Aid-for-Trade package for the LDCs.
"In the absence of critical breakthrough in WTO negotiations, Bangladesh also needs to continue its efforts addressing the issue of market access through bilateral and regional agreements, especially under SAFTA and BIMSTEC," said the Bangladesh Bank in its annual report

Source:http://www.financialexpress-bd.com/index3.asp?cnd=12/27/2006&section_id=1&newsid=47935&spcl=no

Saleha Wires to expand plant in Adamjee EPZ

M/S Saleha Wire Ltd, a Bangladeshi industry manufacturing copper and aluminum conductors, wires and cables, will expand its plant with increased investment in the Adamjee Export Processing Zone.

The 100 per cent local company will expand its production space from the current 2,000sqm with additional investment by $2.5 million, which will cumulatively stand at $6.7 million, a press release of the BEPZA said here Thursday.

The company has already employed 69 Bangladeshi workers and will now create more jobs for the compatriot unemployed people, the press release said.

An agreement to this effect was signed recently between the Bangladesh Export Processing Zones Authority and M/S Saleha Wires Ltd.

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

Few months old

Bangladesh termed 'rising star'
By
Sat, 21 Oct 2006, 10:04:00

MIZUHO Corporate Bank, a reputed Japanese bank, has described Bangladesh as 'a rising star' making tacit suggestions for Japanese investors to adopt the 'China plus one ' strategy considering Bangladesh their manufacturing hub, given the low labour and utility costs as well as the variety of incentives made available to the companies here. The bank's Hong Kong branch has painted the picture of the country in a story titled 'Bangladesh: South Asia's Next Rising Star?' published in its September issue of the China ASEAN Business Report. The report referred to the surge in foreign direct investment from $ 79 million in 2001 to $ 810 million in

2005 as a result of reforms and proposals from a number of big companies to make multi-million-dollar investments in Bangladesh.

According to the government's investment promotion agency, the Board of Investment, Bangladesh attracted $ 2,603 million foreign direct investment in last five years, while the domestic private investment amounted to Tk 302,550 crore. The report praised the investment board for what it said was 'leading the way in setting up an example for the rest of the country'.

Bangladesh had earlier found itself in the 'Next Eleven' ranking by Goldman Sachs, a leading US investment banking and securities firm, among the 'next generation of nations with promising economic growth potentials - Pakistan, Iran, Indonesia, Turkey, Egypt, Nigeria, Vietnam, Philippines and, more importantly, South Korea and Mexico.

The report also pointed out weaknesses in the country's investment climate and some barriers.

It was not at all a bed of roses, as some of the problems it had to deal with included poor infrastructure - unstable power supply and shortage of water - and high logistics costs, the report quoting a company having business in Bangladesh said. 'In order for Bangladesh to overhaul the image that foreign investors have of an impoverished country ravaged by corruption, terrorism and general lawlessness, the government needs to work on cutting the amount of red tape that would hamper foreign trade and investment,' the report noted. Bangladesh, in fact, is trying to establish itself as the next rising star of South Asia in foreign investment with the government's policy reforms creating a more open and competitive investment climate.

According to a recent report released globally by the United Nations Conference on Trade and Development (UNCTAD), Bangladesh stood second after Pakistan in South Asia and 5th among least developed countries (LDCs) in attracting foreign direct investment. Among the LDCs, Bangladesh ranked 9th in 2004 and 18th in 2001 and the UNCTAD ranking is based on data valid until April 2006 while the Bangladesh Bank, country's central bank's latest FDI figure shows 84 per cent increase in 2005. Despite orchestrated adverse campaign by vested quarters at home and abroad against the country, Bangladesh attracted successfully foreign investors who have started coming in a big way for direct investment in various industries. Investment from Asian countries like Korea, Japan is increasing. Middle Eastern countries are also showing their keen interest in this regard.

Source:http://nation.ittefaq.com/artman/publish/article_31708.shtml

DHL Express Centre opens in Adamjee EPZ

DHL, the world's leading express and logistics company, has opened its eighteenth express centre in Bangladesh in Adamjee Export Processing Zone (EPZ), says a press release.

Desmond Quiah, country manager of DHL Express (Bangladesh), inaugurated the centre on Tuesday while other senior officials of the company were present. Desmond Quiah said, "We would continue our efforts to reach out to our customers as much as possible. The opening of another new express centre is indicative of DHL's continued growth and our commitment to the business community."

Pointing to the emergence of Adamjee EPZ as an important commercial centre, Quiah said DHL aims to give customers the easiest and most convenient access to its express products and services.


The company also has express centres in Dhaka, Chittagong and Comilla EPZs. The new express centre is expected to address the needs of various industries located in Adamjee EPZ.

http://www.thedailystar.net/2006/12/28/d61228051060.htm

Rhythm invests $2.53m in KEPZ

A Bangladeshi company named Rhythm Dressmakers Limited will set up a garment industry in the Karnaphuli EPZ through investing 2.536 million US dollars. The planned garment-manufacturing unit is estimated to annually produce 4.90 lakh dozens of readymade garments, including shirts, blouse, pant/trousers, shorts and jackets, a BEPZA release said. ‘The company would create employment opportunity for 2,780 Bangladeshi nationals,’ it said. To this effect, an agreement was signed on 28 December between Bangladesh Export Processing Zones Authority and the Rhythm Dressmakers Limited management.

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

Bangladesh central bank revises growth forecast upward to 7.1 pct

Bangladesh's central bank has revised up its forecast for economic growth this fiscal year to as much as 7.1 percent as manufacturing and services boomed despite frequent nationwide strikes.

The economy of the impoverished delta nation of 140 million people for the year ending June 30 is expected to expand "in the range between 6.6 percent and 7.1 percent," the Bangladesh Bank, the central bank, said in its mid-year monetary policy review.

The new forecast topped a July estimate of 6.5 to 6.8 percent that came ahead of almost daily strikes from September to December by opposition parties calling for electoral reform. The protests ended last week and the opposition have pledged to participate in national elections slated for January.

Last fiscal year, the economy grew a record 6.71 percent.

The central bank said the upward revision came as the mainstay of the economy, textiles, showed strong export growth and Bangladeshi workers abroad sent home more of their earnings.

Bangladesh's textile exports rose more than 30 percent in the first three months of this fiscal year, compared to the same period a year ago, the central bank said. Textile exports hit a record 7.9 billion dollars last year following the end of global textile trade quotas in January 2005.

At the same time, money sent home from workers abroad rose more than 25 percent from the same period last year. Worker remittances reached a record 4.84 billion dollars last year.

The South Asian nation has been one of the world's fastest-growing economies in recent years, logging an average five percent since the early 1990s.

http://ca.news.yahoo.com/s/afp/061225/business/bangladesh_economy_2

Bangladesh's Foreign Exchange Reserve Stands At Healthy $3.88 Billion

The country's foreign exchange reserve stood at $3.88 billion Saturday, the last working day of the current calendar year, the Bangladesh Bank officials said. The Bangladesh Bank is the country's central bank.

"The foreign exchange reserve reached at its highest-ever level in the history of Bangladesh mainly due to significant inflow of remittances," a senior official of the central bank told AHN in the capital city, Dhaka.

The official also expressed the hope that the reserve may cross $3.90 billion mark before making a routine payment to the Asian Clearing Union in the first week of January next year.

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

The country could meet import bills for over three months with the existing foreign exchange reserve, officials added.

The foreign exchange reserve stood at $3.79 billion on Dec. 17. That was because of an upward trend of inward remittances along with disbursement of promised soft loans amounting to $80 million by the development partners, sources in the central bank said.

Sources said, however, that the foreign exchange reserve might drop slightly after making the routine payment to the Asian Clearing Union in the first week of the next month.

The foreign exchange reserve had dropped to $3.23 billion on Nov. 9, down from $3.54 million after making a routine payment to the Asian Clearing Union amounting to $315 million.

http://www.allheadlinenews.com/articles/7005997390

BoP remains strong in July-October
Asjadul Kibria

http://i78.photobucket.com/albums/j98/mirzazeehan/econ.jpg

Country’s overall balance of payments continued to show surplus trend in the first four months of current fiscal year despite significant decline in external assistance and lower inflow of foreign direct investment.
Overall balance stood at $82 million in the first four months of 2006-07, which was $133 million in the first quarter of the same fiscal.
The surplus balance in the first four months was lower compared to the first quarter figure of the current fiscal as the current account surplus slowed down during the July-October period, showed the central bank statistics.
However, there was a shortfall of $217 million in the overall balance in the first four months of 2005-06, showed the Bangladesh Bank data.
The central bank statistics showed that foreign direct investment dropped to $200 million in July-October period, which was $242 million in same period of 2005.
Foreign aid has also continued to decline as net aid inflow dropped to $22.7 million in the first four months of the current fiscal, which was $190.85 million in the same period of previous fiscal year.
The economic relation division data showed that total aid disbursement during the period under review declined to $172.00 million from $334.85 million in the first four months of 2005-06.
The repayment of principal amount of foreign loans was slightly higher to $149.3 million in the period, which was $144 million in the same period of last fiscal.
Robust growth of remittance coupled with lower trade deficit provided strong backup to the current account with a surplus of $344 million in the period under review which was $300 million in the same period of 2005.
But, the current account surplus slowed down in the period from the $408 million in the first quarter of the current fiscal mainly due to higher deficit in service trade and income.
The central bank statistics also showed that trade deficit stood lower at $688 million in July-October 2006 which was $742 million in the same period of 2005.
The export earnings and import payments registered 23.3 per cent and 17.6 per cent growth respectively during the July-October period.
Analysing the external sector trade trend, the monetary policy review, prepared by the policy analysis unit of the research department of the Bangladesh Bank, projected that export would continue to grow at current rate while import growth would be moderate.
‘The trade deficit is expected to narrow further in FY07, though the volatile cost of petroleum products remains a source of disquiet in this prediction,’ said the review.
‘While the import of capital machinery and construction material may be benefited the economy in the medium to long term by increasing productivity capacity and providing infrastructure facility, the persistently high oil prices may continue to put pressure on current account balance in FY07,’ said the review published in last month.

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

Bangladesh Bank makes Tk 2,290 crore profit

The central bank made a net profit of Tk 2,290 crore in 2005-06, which was Tk 1,890 crore in the earlier fiscal year.

The bank’s total income amounted to Tk 3,510 crore during FY06 compared with Tk 2,420 crore in FY05, according to the Annual Report 2005-06 of the bank.

The income from foreign sources increased by Tk 160 crore to Tk 740 crore and income from domestic sources increased by Tk 860 crore to Tk 1,570 crore. Revaluation gain from foreign exchange and gold increased by Tk 70 crore to Tk 1,200 crore in the period.

In the expenditure side, the total outlay of the bank jumped by 130 per cent to Tk 1,220 crore in FY06 from Tk 530 crore in the previous fiscal year.

The staff cost sharply increased to Tk 540 crore from Tk 290 crore of the previous year. Also interest paid on deposits rose to Tk 360 crore from Tk 190crore of FY05.

Out of the total profit of Tk 2,290 crore, Bangladesh Bank transferred Tk 1,090 crore to the government account, which was Tk 330 crore higher compared with the previous fiscal year.

In the balance sheet of the bank, it is revealed that foreign assets increased by Tk 6,210 crore to Tk 29,780 crore in FY06 due to increase in foreign reserves and revaluation of foreign assets.

Domestic assets also enlarged by Tk 9,280 crore to Tk 33,490 crore in the same period as there was an increase in holding of adhoc treasury bills.

On the liabilities side, foreign currency liabilities rose by Tk 3,670 crore to Tk 14,690 crore in 2005-06 fiscal year. The increase was due to revaluation of IMF securities and increase in loan under the Poverty Reduction and Growth Facility.

Domestic liabilities also rose by Tk 10,620 crore to Tk 42,630 crore in FY06 compared to Tk 32,010 crore in FY05. Notes in circulation shot up by Tk 4,530crore to Tk 24,500 crore in the last fiscal.

The liabilities for notes in circulation were backed by gold and silver (Tk 500 crore), foreign currencies (Tk 8,000 crore), government securities (Tk 12,770 crore), Bangladesh coins (Tk 40 crore) and other domestic assets (Tk 3,190 crore).

The total equity of the bank stood at Tk 5,950 crore in the last fiscal from Tk 4,750 crore in the previous fiscal.

The financial statement of Bangladesh Bank was prepared by Hoda Vasi Chowdhury &Co and A Qasem & Co in accordance with International Financial Reporting Standards approved by the International Accounting Standard Board.

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

Rawhide Export
Exporters eye Tk3000cr earning in FY07

Leather and leather goods exporters eye more earning from exports of rawhide this fiscal as additional quantity of the item is available now in the market because the candidates engaged in the electioneering have sacrificed animals more than the usual in a bid to woo their supporters.

They said the extra rawhide would help fetch Tk 3000 crore from the sector in FY 2006-07.

The industry insiders attributed this projection of higher export earning to less extortion centring rawhide trading and low price of crude salt, an essential item that is used in rawhide processing, as well as a better price now offered for the exportable item in the international market.

Around 180 million square feet of skin and hide worth Tk 800 crore is assumed to be traded locally this Eid-ul-Azha season as against 140 million square feet traded the previous year, according to the business circle.

Tipu Sultan, president, Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFA), told The Daily Star that they found the overall rawhide collection satisfactory despite some hindrances in transportation of hides and local syndication in price of the produce.

He said he is hopeful of achieving this year's target of export earning from the sector set by the government.

The Export Promotion Bureau (EPB) set the target of earning Tk 2030 crore from exports of rawhide, Tk 980 crore from footwear and Tk 560 crore from leather bags in the financial year 2006-07.

Bangladesh produces over 220 million square feet of leather every year, 70 percent of which come from sacrificed animals.

As per EPB data, finished leather exporters received 26 per cent higher price for their product in FY 2005-2006.

A piece of cow-skin was selling between Tk 800 and Tk 2000 and goat-skin between Tk 180 and Tk 250 at the Posta wholesale market in the capital yesterday.

The prices of cow-skin ranged from Tk 400 to Tk 800, while goat-skin sold between Tk 180 and Tk 200 in the same market last year.

http://www.thedailystar.net/2007/01/05/d70105050165.htm

Forex reserves touch all-time high

The central bank’s foreign exchange reserves reached an all-time high Thursday thanks to a rise in remittance inflows and export earnings.

The reserves, which stood at $3,533 million at the end of November 2006, topped $3,953 million Thursday.

Official statistics showed the reserves totalled $3,483 million at the end of FY 2005-06.

Further back, the forex reserves touched $3,070 million in 1994-95 fiscal. In the FY 1990-91, the total reserves reached $880 million.

‘Increased remittance inflows and export earnings have helped the reserves reach this level,’ said a senior foreign exchange policy analyst with the central bank.

Referring to a $400 million in remittance receipts during the first 21 days of December 2006, the official expected that the sum would cross $500 million in December.

Remittance inflows in the July-November of FY 2006-07 rose 30.86 per cent to reach $2,305.65 million from $1,761.88 million in the corresponding period of the previous fiscal.

During the July-October of 2006-07, export earnings increased by 23.95 per cent to reach $4,127.30 million from $3,345.95 million in the same period of the previous year.

‘We have also seen a sustainable growth in imports,’ he said.

Import payments rose by 17.67 per cent to top $5,243.10 million in the July-November of FY07 from $4,489.7 million in the corresponding months of previous year.

The official expected that foreign exchange reserves might touch $4,000 million ($4 billion) early next week prior to payment to the Asian Clearing Union, an arrangement to settle payments for intra-regional transactions among some Asian countries.

‘We will have to pay over $300 million to the ACU,’ he said.

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

From the pic. it looks like Khulna port is growing. It will be good for the economic growth of Southern Bangladesh if it grows.

http://virtualbangladesh.com/images/general/khulna.jpg

Forex reserves hit new high of $3.9b
BB moves to steady dollar at Tk69

Country's foreign exchange reserves hit a new high of $ 3.9 billion yesterday as the remittance inflow marked a 30 percent growth during the first six months of the current fiscal year, according to the Bangladesh Bank (BB) sources.

In view of the average remittance inflow, the growth is seen significant compared to it in the same period last fiscal, although such a flow came down slightly to $534.20million in December from $598.29million in November this fiscal.

The BB sources said high remittance inflow and huge export earnings contributed to a healthy foreign reserve of $3957.84million. But the reserve will fall today or tomorrow on Bangladesh's payment of an amount as big as $335million of export-import bill to the Asian Clearing Union (ACU).

Meanwhile, the central bank is keeping a cautious watch on the trend of money market as it has observed that the reserves have also upped the value of taka against dollar. It is also found that the supply side of foreign exchange does not cope with the slightly slow demand side because of political unrest in the country. This, it is assumed, may result in a significant drop in price of dollar in the local money market.

To prevent such a fall in the currency price, the BB has already purchased 60 million dollars from the money market. The central bank offers Tk69 per dollar to commercial banks.

The BB said if the dollar price goes below Tk69, exporters might face a setback, so the offer is made for the commercial banks with a view to steadying the price of the greenback at Tk69.

Earlier, the country's remittance hit a record high in a single month as it reached US$ 598 million in November.

As per the BB sources, the remittance also marked a surge in December as the overseas workers sent money on the occasion of Eid-ul-Azha.

But the reserves may cross $4 billion-mark before the ACU payment if the remittance flow continues, the sources also assumed.

The overall remittance rose to $ 2840 million in the July-December period in FY 2006-07, posting a strong 30 percent rise over the same period last fiscal, which was $2178million.

According to the Export Promotion Bureau (EPB), in the fiscal 2005-06, Bangladesh exported goods worth $10.52 billion, registering a 21 percent growth. The export is also rising this fiscal with approximately a 31 percent growth.

http://www.thedailystar.net/2007/01/08/d70108050166.htm

Forex reserves cross $4b mark
Sheikh Shahariar Zaman

http://i78.photobucket.com/albums/j98/mirzazeehan/yu.jpg

The foreign reserves cross $4 billion mark for the first time in Bangladesh over robust remittance inflow, rising export earnings and lower import payments.
‘Remittance inflow, export earnings and use of banking channel to remit money are the reasons behind the huge foreign reserves,’ said Salehuddin Ahmed, governor of Bangladesh Bank. The foreign exchange reserves stood at $4,020.99 million on Tuesday.
The central bank encourages private commercial banks to sign agreements with foreign money exchange houses so that expatriates can easily send their money through the legal channel, he said.
‘Central bank increases its monitoring system so that recipients of remittance can encash money within the shortest possible time,’ he added.
He said remittance inflow would increase if more skilled and semi-skilled workers can be sent abroad.
‘Skilled and semi-skilled workers can earn more money than that of unskilled workers and they send most of their earnings home,’ the central bank chief said.
The governor said prolong political uncertainty would put a toll on export earnings.
‘From the supply side, it will be difficult for the exporters to procure raw materials or open their factory due to political unrest. On the other hand, from the demand side, buyers may feel reluctant to place orders in the country where manufacturers can not supply products on scheduled times.’
During the first six months of the current fiscal the remittance earning grew by 31 per cent to $2.86 billion from $2.17 billion of the corresponding period of the last fiscal.
The total remittance earning during 2005-06 was $4.8 billion and in 2006 calendar year the inflow stood at $5.48 billion.
The country saw record remittance inflow in November with $598 million and in December the remittance inflow was $556 million, the governor said.
‘On Monday alone we received $81 million remittance,’ he said.
He said improved reserves attract foreign direct investment as investors can repatriate their income easily.

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

great news for Bangladesh!!

Workers turn the golden goose
Overseas employment doubles in 5 years; remittance flow goes up by 150pc
Porimol Palma

The flow of remittance increased by about 150 per cent in last five years while overseas manpower employment doubled, with a record amount of remittance earned and the highest number of people migrated last year.

From January to November in 2006, Bangladeshis abroad sent around US$ 4.92 billion against US$2 billion in 2001 while about 4 lakh people left the country for joining jobs overseas last year, which was less than 2 lakh in 2001, according to the Bureau of Manpower, Employment and Training (BMET).

The money sent by the Bangladeshis abroad was US$4.25 billion in 2005 and the number of overseas manpower employment that year was only around 2.52 lakh.


The United Arab Emirates (UAE) hired 1,30,204 people, the highest number, while The Kingdom of Saudi Arabia (KSA) employed 1,09,513 people, the second highest number of contract or temporary workers from Bangladesh last year.


The UAE and KSA hired 61,978 and 80,425 workers in 2005 from Bangladesh.

The other countries that follow the KSA and UAE are Kuwait hiring 35,775 workers, Bahrain 16,355, Oman 8,082, Qatar 7,691 and Malaysia 20,469 workers from Bangladesh last year.

During the period of the caretaker government, the number of people who left the country for joining jobs abroad marked a sharp rise as it was about 46,474 in November and 49,012 in December last year.

The Middle East countries, especially the KSA and UAE, are hiring more workers from abroad, including Bangladesh, for development activities that got boosted due to almost doubling of oil price in the international market, manpower businesses and government officials said.


Strictness of the administration, especially during the caretaker government, also contributed to the increase of the number of people migrated last year.


“Strictness in checking at the airport contributed to the lessening of illegal or undocumented migration,” an official of the Ministry of Expatriates' Welfare and Overseas Employment said on condition of anonymity.


Many foreign job aspirants, who would like to resort to illegal ways, had to follow the legal or official ways and it contributed to the rise in the number of documented migration, said a source.

Referring to a case of holding 31 outbound women on November 17 last year by immigration police at Zia International Airport and alleged involvement of government officials, a recruiting agent said a large number of Bangladeshis go abroad illegally that keeps the official number lower.


The Ministry of Expatriates' Welfare and Overseas Employment suspended the four BMET officials who were detained by the police after the November 17 incident.

The then BMET director (Immigration) Manzur Rahman was also made OSD (official on special duty) for his alleged involvement in issuing emigration clearance certificates to the 31 women.


Migration expert Abdul Alim said the remittance would have doubled if the government could arrange sufficient banking facilities and incentives to the wage earners abroad as well as to the long-term Bangladeshi migrants in the developed countries.


More government attention for the internationally recognised professional training to the outgoing workers could also add value in the total migration process, he said.


The number of people going abroad could also increase greatly if the government took effective steps to explore new markets, especially to some European and African countries, Alim added.


Of around 50 lakh Bangladeshi workers and professionals working abroad, over 50 per cent are in the Middle Eastern countries and they send about 70 per cent of the total remittances.

Source:http://www.thedailystar.net/2007/01/11/d7011101033.htm

Its remarkable how the Bangladeshi economy has become a "rising star" despite the political crisis. Even six/seven years ago imagining Bangladesh as an emerging economy was difficult but now we have shown the world the potential we hold. Yunus has rightly said "Bangladesh is a country of possibilities."

Stock market experiences massive gain
DSE turnover hits Tk 92.34 crore, highest after 1996

Stock prices and turnover shot up Sunday on the buying spree from the investors stirred by the end, to an extent, of the political chaos that put the country’s capital market into a downtrend for months.

The general index of the Dhaka Stock Exchange gained 74.94 points or 4.74 per cent to close at 1656.93 on Sunday, while benchmark DSE20 advanced by 58.40 points or 4.18 per cent to close at 1456.04.

The Chittagong Stock Exchange selective categories index gained 96.99 points or 4.04 per cent to close at 2498.21 on Sunday, while benchmark CSE30 advanced by 133.64 points or 4.03 per cent to close at 3451.53.

‘It is the reflection of the changed situation under the state of emergency declared,’ said Abdullah Bokhari, president of the DSE.

On Thursday evening, the president, Iajuddin Ahmed, dissolved the previous interim cabinet and promulgated a state of emergency, ending over two months of political chaos in the country.

Bokhari, also the managing director of AB and Company Ltd, a brokerage house, said investors recovered their confidence to put money on stocks as the confrontational politics eased.

The chief executive officer of the DSE, Salahuddin Ahmed Khan, said institutional investors played a significant role on the market on Sunday. Led by them, the retail investors returned to the trading floor on Sunday, he said.

He noted although market fundamentals were good, the market remained dull for months due to political uncertainties.

‘We, however, are closely monitoring the market to check any manipulative activities,’ DSE CEO said.

Subrata Moitra, a retail investor, said he returned to the market as he hoped that he could gain from the present situation.

Turnover on the DSE increased to Tk 92.34 crore, highest after 1996, the year the country’s capital market had suffered a bubble-and-burst. On last Thursday, the DSE turnover was Tk 26.57 crore.

The CSE turnover increased to Tk 21.40 crore from the Thursday’s total of Tk 6.72 crore.

A total of 192 issues were traded on the DSE on Sunday. Of them, 177 issues advanced, five declined and ten remained unchanged.

Of the total 83 issues traded on the CSE, 78 advanced, three declined and two remained unchanged.

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

Bangladesh's economy to grow 7 pct in 2006/07

Bangladesh is poised to achieve a projected 7.0 percent growth in the fiscal year to next June, with hopes boosted by signs of political stability after months of turmoil that forced postponement of this month's parliamentary election, the central bank governor said.

Announcing a half-yearly monetary policy update, Bangladesh Bank governor Salehuddin Ahmed on Sunday told reporters, "We are confident of hitting the targeted growth if political stability is maintained."

In the last fiscal year, the economy grew a record 6.7 percent.

Bangladesh Bank said on Sunday it would stick to a cautious monetary policy stance to combat rising inflation, which peaked at 7.31 percent in October.

"Monetary policies aimed at supporting annual real GDP (Gross Domestic Product) growth of 7.0 percent will continue unchanged in the cautious and restrained stance in H2 2006/07 fiscal year keeping in view the prevailing external situation and the internal risks to price stability posed by the domestic situation," the bank said in its Monetary policy statement.

The central bank expected easing global commodity prices attendant to a projected slight slowdown of the global economy in 2007 should help further ease domestic inflation.

"The policy stance will of course be adapted promptly and flexibly in the face of any unfolding development, with special attention to the credit needs of sectors promoting and supporting economic growth," it said.

On the price outlook, the Bangladesh Bank projected average inflation in a range between 6.85 percent and 6.95 percent in the second half of the current fiscal year to June 2007.

Annual inflation hit 7.31 percent in October, up from 6.89 percent a month earlier.

Credit to the private sector has grown by 18.8 percent year on year as of November 2006.

In the 2005/06 fiscal year, exports hit a record $10.53 billion, of which $7.9 billion came from garments.

Remittances from 3 million Bangladeshis working overseas rose more than 25 percent to a record $4.8 billion in the last fiscal year, the second-biggest source of foreign income.

The economy of Bangladesh has grown by an average 6 percent over the past three years. The Asian Development Bank said recently it expected growth in the same range in 2006/07.

http://asia.news.yahoo.com/070114/3/2vrcd.html

DSE market cap at record highest
Bourse gets Tk 9cr foreign portfolio investment

Dhaka stocks rallied on Wednesday for second consecutive day on the buying spree from the investors.

The Dhaka Stock Exchange witnessed foreign portfolio investment of some Tk 9 crore on Wednesday, market sources said.

An official of the bourse said it was 10 per cent of total turnover on the bourse on the day.

With the rise of share prices, market capitalisation at the DSE recorded its highest with Tk 33,336 crore.

The market indicator touched Tk 30,000 crore mark on November 21 last year for the first time.

The general index of the DSE gained 31.20 points or 1.88 per cent to close at 1691.74, while benchmark DSE20 advanced by 40.25 points or 2.75 per cent to close at 1501.11.

A stock broker said market got momentum as the confrontational politics eased down.

Turnover on the DSE also increased to Tk 90.03 crore from the Tuesday’s total of Tk 70.37 crore. On Monday, the DSE turnover was Tk 81.13 crore while on Sunday, the market indicator touched Tk 92.34 crore, highest after 1996.

Most of securities ended up on Wednesday. Of the total 198 issues traded on the DSE, 145 advanced, 38 declined and 15 remained unchanged.

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

Khulna condom factory starts operation soon

Essential Drugs Company Ltd, the lone medicinal venture in the public sector, has completed the works of a condom manufacturing factory in Khulna that is awaiting launch of trial production soon, said a press release.

Once launched, the plant would save foreign currency equivalent to Tk 25 crore annually.

‘It will also supplement government’s poverty-reduction programme by helping birth control,’ said EDCL managing director Harun-Al-Rashid.

EDCL, set up with the main objective to supply essential drugs to the public hospitals and clinics at low prices, contributed to the national exchequer around Tk 120 crore revenue in the last five financial years since 2000-2001.

It paid Tk 21.97 crore to the exchequer in 2001-02, Tk 20.51 crore in 2002-03, Tk 25.47 crore in 2003-04, Tk 27.63 çrore in 2004-05 and Tk 23.89 crore in 2005-06.

The company earned Tk 19.48 crore gross profit in 2001-2002, Tk 15.50 crore in 2002-03, Tk 16.93 crore in 2003-04, Tk 19.67 crore in 2004-05, and Tk 46.23 crore in 2005-06.

The net profit was Tk 13.41 crore, Tk 9.04 crore, Tk 8.01 crore, Tk 5.05 crore and Tk 0.45 crore respectively in the years.

During the last five years, EDCL sold drugs worth Tk 443.64 crore.

Commencing its operation with only one plant in Tejgaon Industrial Area in 1962, EDCL has two more plants – a drug-making unit in Bogra established in 1985 and the Khulna condom manufacturing facility.

EDCL is presently producing 133 world-standard lifesaving drug items in the form of capsules, tablets, dry syrup, injections, oral saline, liquids, ophthalmic drops or ointment and skin ointment or lotion, and supplying those to public hospitals and clinics at low prices.

Besides, it is supplying drugs to the World Health Organisation and UNICEF and exporting those to different countries. The company is also in small-scale manufacturing first-generation cephalosporin drugs, the high-potent life-saving drugs now widely used all over the world in the treatment of chronic diseases, and supplying the expensive drugs to public hospitals and clinics at lower prices.

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

Intramex Knitwear, Texaid begin production

Intramex Knitwear Ltd and Texaid Ltd have commenced their production recently.

The factories have been established with Tk 200 million (20 crore) financing by NCC Bank Ltd (NCCBL) at Gazipur.

Earlier, NCCBL Managing Director Md Nurul Amin formally inaugurated the factories as the chief guest of the opening ceremony, where Additional Managing Director Kazi Md Shafiqur Rahman was present as the special guest.

Intramex Group (IG) Managing Director ATM Enayet Ullah presided over the programme. NCCBL senior vice presidents Sheikh Abu Ahmed and Pijush Kanti Shaha along with IG General Manager Mohammad Aminul Islam were also present on the occasion.

Intramex is the country's second largest industry, which has oven garments, knit textile, sweater and colour units under one roof.

http://www.financialexpress-bd.com/index3.asp?cnd=1/18/2007&section_id=7&newsid=49787&spcl=no

Stock prices surge amid buying spree

The stock prices surged Wednesday on the Dhaka Stock Exchange (DSE) amid a strong buying support both from retail and institutional investors.

The DSE market capitalisation whopped to Tk 333.36 billion on the day, the ever highest due to the bullish trend of share prices.

The latest political development which has ended the unrest and turbulence, inspired the investors to invest in the stock market.

Earlier, the market capitalisation crossed Tk 300 billion-mark on November 22, 2006.

All the indices marked a significant rise amid the transaction of Tk 900.304 million on the day which was Tk 703.66 million Tuesday.

DSE sources said about ten per cent transaction of Wednesday's total turnover was done by foreign investors.

The DSE had witnessed a record turnover worth Tk 923.398 million, the first after the 1996 high-tide on Sunday, the first trading day after the assumption of office by Fakhruddin Ahmed, the new chief adviser of the caretaker government.

Out of 198 traded issues, 145 gained, 38 declined and 15 remained unchanged.

The DSE All-Share Price Index (DSI) gained by 22.04 points or 1.62 per cent to close at 1376.99 while DSE General Index (DGEN) advanced 31.20 points or 1.87 per cent to finish at 1691.73 on the day. DSE-20 blue chip index (DS 20) moved up by 40.24 points or 2.75 per cent to close at cross 1500-mark and closed at 1501.10.

"A huge number of new investors returned to the market expecting a new political perspective and it is natural to have such a confidence among the investors," said one director of the DSE.

"Investors passed a tough time amid a cloudy political unrest during the last three and half months and now they feel it very timely to invest," another DSE source told the FE.

"The uncertainty due to the confrontational politics has been removed and this prompted the investors to invest in the capital market," DSE chief executive officer Salahuddin Ahmed Khan told the FE.

Investors were feeling insecure to invest in the stock market during the last few months because of political unrest and uncertainty and started withdrawing their fund from the stock market fearing further erosion of prices. "But now, investors feel time has changed and the cloud of uncertainty is over," said DSE senior vice president Ahmad Rashid.

He said DSE hopes to witness a one billion taka trade within a very short period.

Power and bank sector shares were hugely traded at the market on the day. DESCO, PGCB, Square Textile, Southeast Bank, Bextex, Prime Bank, Square Pharma, Beximco Pharma, Grameen One and Jamuna Bank were the top ten turnover leaders in terms of value on DSE with Tk 91.55 million, Tk 82.68 million, Tk 49.11 million, Tk 42.28 million, Tk 34.46 million, Tk 33.62 million, Tk 28.90 million, Tk 24.88 million, Tk 21.72 million and Tk 20.94 million traded respectively.

Prices of Square Textile, Wata Chemical, Kohinoor Chemical, Eastern Cables, Intech Online, Bd Online, Beximco, Bextex and Beximco Pharma rose between the range of 10.71 per cent to 6.00 per cent.

http://www.financialexpress-bd.com/index3.asp?cnd=1/18/2007&section_id=1&newsid=49853&spcl=no

DSE turnover crosses record Tk 1.04b mark

The Dhaka Stock Exchange (DSE) Thursday witnessed a record Tk 1.04 billion trading amid a continued rally of share prices.

The turnover is a record high after the 1996 bubble in the stock market.
A strong buying support -- both from retail and institutional investors -- propelled the daily average turnover in the whole week to whop to Tk 877.14 million from Tk 336.08 million registering a record 160.99 per cent rise in a week.

Wednesday's meeting between Finance Adviser Mirza Azizul Islam and DSE directors also made a positive impact on Thursday's trading.

Mirza Aziz, a former chairman of the Securities and Exchange Commission (SEC) assured the DSE directors for taking steps to offload the shares of profitable state-owned companies and mobile phone companies in the stock market.

The DSE market capitalisation whopped to Tk 337.65 billion on the last trading day of the week which was Tk 333.36 billion Wednesday.

The latest political development which has ended the unrest and turbulence, propelled the investors to invest in the stock market from the first trading day in the week.

All the indices marked a significant rise as out of 206 traded issues, 158 gained, 30 declined and 18 remained unchanged.

The DSE All-Share Price Index (DSI) gained by 13.53 points to close at 1390.53 while DSE General Index (DGEN) advanced by 21.78 points to finish at 1713.52 on the day.

DSE-20 blue chip index (DS 20) moved up by 20.32 points to close at 1521.43.
"A huge number of new investors returned to the market expecting longer political stability and it is natural to have such a confidence among the investors," said a director of the DSE.

"Investors passed a tough time amid a cloudy political unrest during the last three and half months and now they feel that it is time to invest," another DSE source told the FE.

Investors were feeling insecure to invest in the stock market during the last few months because of political unrest and uncertainty and started withdrawing their fund from the stock market fearing further erosion of prices.
"But now, investors feel time has changed and the cloud of uncertainty is over," said DSE senior vice president Ahmad Rashid.

Power and bank sector shares were hugely traded on the day.

PGCB, DESCO, Southeast Bank, Exim Bank, Bextex, Mutual Trust Bank, Jamuna Bank, One Bank, Square Textile and Prime Bank were the top ten turnover leaders in terms of value on DSE with Tk 94.48 million, Tk 55.09 million, Tk 49.93 million, Tk 40.57 million, Tk 40.19 million, Tk 33.72 million, Tk 32.45 million, Tk 30.95 million, Tk 26.50 million and Tk 24.13 million traded respectively.

Market sources said investors showed a strong enthusiasm to buy shares of many companies irrespective of fundamentals of the companies concerned.
"As a result, prices of Z-category companies like Shyampur Sugar, Paper Processing, Wata Chemical, Renwick, Monospool, Legacy Footwear, Dhaka Fisheries, Bd Com and Gulf Foods marked a significant rises between the range of 6 per cent to 13.15 per cent," one market operator said.

Commenting on this unhealthy sign, chief executive officer of DSE Salahuddin Ahmed Khan said investors are now very much aware on the market fundamentals and any unusual rise of any issues will be investigated properly.
Among the A-category shares, Atlas Bangladesh rose by 12.15 per cent, Eastern Lubricants 17.76 per cent, Eastern Cables 15.16 per cent, Metro Spinning 10 per cent, Monno Jutex 10.23 per cent, National Tubes 7.61 per cent and Usmania Glass 13.97 per cent Thursday on the DSE.

Among the B-category shares, Beach Hatchery, Saiham Textile and Monno Fabrics registered 8.82 per cent, 8.14 per cent and 4.43 per cent rises respectively.

DSE management celebrated Thursday as the daily turnover crossed Tk one billion-mark in a landmark event in the DSE's one decade history. The DSE management bought sweetmeats to celebrate the event, sources concerned said.

http://www.financialexpress-bd.com/index3.asp?cnd=1/19/2007&section_id=1&newsid=49960&spcl=no

Domestic investment up by 36pc in six months

The country's domestic investment proposals registered a 35.79 per cent growth in first half of fiscal 2006-07 over the corresponding period of the previous fiscals despite the political unrest during the past three months.

According to the Board of Investment (BoI) statistics, the country received 1077 local investment proposals worth Tk 129.756 billion during the first six months of the current fiscal against Tk 95.098 billion in same period of fiscal 2005-06.

However, in December last, some 193 projects of the local investors, amounting to an aggregate investment of Tk 14.479 billion, were registered with the BoI, declining by 50 per cent, from the level of December 2005 when 205 projects involving a total investment of Tk 21.571 billion registered.
The value of local investment proposals was Tk 13.817 billion in 138 projects, Tk 19.526 billion in 218 projects, Tk 26.967 billion in 225 projects, Tk 39.938 billion in 135 projects and Tk 15.027 billion in 168 projects in November, October, September, August and July respectively.

It was Tk 11.798 billion in 89 projects, Tk 23.714 billion in 171 projects, Tk 9.564 billion in 119 projects, Tk 13.011 billion in 144 projects and Tk 15.439 billion in 198 projects in the corresponding months of the previous fiscal.

The textile sector is on the top of the domestic investors' choice. The chemical and service sector came next, followed by the light engineering and agro-based industries.

The BoI statistics showed that the value of local investment proposals posted a 48.09 per cent growth in fiscal 2005-06 over that of 2001-02.
The local investment proposals were worth Tk 88.060 billion in 2001-02 followed by Tk 116.526 billion in 2002-03, Tk 135.461 billion in 2003-04, Tk 140.046 billion in 2004-05 and Tk 183.703 billion in 2005-06 fiscal.

The BoI official said the actual implementation rate of the domestic investment proposals is about 85 per cent while it is 70 per cent in the case of foreign investment proposals.

A senior BoI official said the foreign investors are coming to Bangladesh considering its cheap labour and energy resources compared to those of other countries across the world.

http://www.financialexpress-bd.com/index3.asp?cnd=1/19/2007&section_id=1&newsid=49962&spcl=no

Packaging, accessories industry records 25pc growth

The packaging and accessories industry in the country grew by 25 per cent over the last one year contributing to the export earnings of $1.20 billion (120 crore) recorded in the readymade garments (RMG), pharmaceutical, frozen food, leather goods, agro-based products and other export-oriented sectors.
Its contribution to the total export earnings is about 12-15 per cent, which has been included in the 76 per cent export earnings recorded in the RMG and other export-oriented sectors. Its value addition is at least 42-50 per cent, sources said.

Export earnings in the accessories sector will reach $3.0 billion, including direct and indirect exports, by 2008 if the current trend of growth continues, sources said.

"We are optimistic of achieving the $ 3.0 billion target by 2008 as the volume of RMG exports is expected to rise to $15 billion," said Safiullah Chowdhury, president of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA).

However, there are other packaging and accessories industries meeting the packaging requirements of the local industries like food and beverage, cosmetics, biscuits, chips, spices, and other consumer goods. The demand for flexible packaging, tetra packaging and poly packaging has also increased significantly.

The packaging and accessories industry supplies at least 15 per cent of the raw materials to the RMG sector and about 10 per cent to other sectors.
The failure of the paper and board industry to meet the local requirements forced the users to go for import of paper, board and other products of packaging from China, Singapore, Malaysia, India, South Korea, Indonesia, Germany, Thailand, Japan and some other countries, sources said.

All the packaging requirements in the country's export-oriented sectors including RMG are now met by the packaging and accessories units, mostly small and medium-sized, thus making the country more competitive in the global export market.

There are around 750 packaging and accessories units in the country and they recorded a 6.0 per cent growth last year.

Experts said the government, donor agencies and foreign investors may come forward to exploit the high potential of the accessories market here.

If the opportunities are explored, Bangladesh can be a hub for local, regional and global packaging service providers in the competitive world market, they said.

The BCCAMEA president said high tech research and fund for product development for providing better accessories and packaging services are needed urgently.

Mentioning the use of the country's accessories by world-famous companies like JC Penny, BRECADEN, and WAL-MART, he said: "We are now able to meet the 100 per cent requirement of accessories of the country's RMG sector, which are of international standard".

Proper policy support from the authorities concerned is also needed to improve the overall infrastructural facilities like communications and power supply. Removal of customs hassles, enhancement of capital resources, hassle-free bond facilities and incentive are needed to be ensured by the government, the BCCMEA president said.

He, however, stressed the need for establishing a research and testing laboratory and packaging training institutes soon for further development of the sector.

http://www.financialexpress-bd.com/index3.asp?cnd=1/20/2007&section_id=1&newsid=50031&spcl=no

DSE turnover grows by 160.99 per cent
Bourse general index gains 131.54 points in a week

Dhaka stocks witnessed massive rise in transactions and prices last week due to the apparent end of political pandemonium.

Turnover at the Dhaka Stock Exchange increased by 160.99 per cent to total at Tk 438.57 crore in last week from the previous week’s figure of Tk 168.04 crore.

On Thursday, the DSE turnover rose to Tk 104.71 crore, highest after 1996, the year the country’s capital market suffered a bubble-burst, surpassing Sunday’s total of Tk 92.34 crore.

The general index of the DSE gained 131.54 points or 8.31 per cent to close at 1,713.53 on Thursday while benchmark DSE20 advanced by 123.79 points or 8.86 per cent to close at 1521.43.

With the rise of prices, market capitalisation increased to Tk 33,766 crore, while the figure was Tk 31,709 crore on the last trading day of the previous week.

It was Tk 24,573 crore on November 13, 1996, the day DSE turnover recorded its highest at Tk 106.50 crore.

Market operators attributed the recent rising trend to the apparent end of the political pandemonium that had put the country’s capital market in downtrend for months.

Sharif Ataur Rahman, managing director of SAR Securities, said investors regained confidence to put money on stocks as the confrontational politics eased down with the promulgation of emergency.

The chief executive officer of the DSE, Salahuddin Ahmed Khan, said institutional investors, prime movers of the market, returned to the trading floor as the political uncertainties eased down, adding that ‘retail investors followed them.’

A total of 262 issues were traded last week. Of them, 199 issues advanced, 30 declined and 10 remained unchanged while 23 issues recorded no trading in the period.

In Tech Online topped the gainers’ list while Rahima Food was the biggest loser. In Tech Online gained 31.47 per cent in its share prices while Rahima Food witnessed 16.67 per cent fall.

The Power Grid Company Bangladesh topped the turnover index with total sales of Tk 45.50 crore which was 10.37 per cent of the total turnover of the bourse last week.

Other turnover leaders were: Southeast Bank, Dhaka Electric Supply Company, Prime Bank, Square Textile, Exim Bank, Bextex, Jamuna Bank, Grameen Mutual Fund One, Aims 1st Mutual Fund.

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

DSE turnover hits all time high at Tk 111cr

Turnover on the Dhaka Stock Exchange (DSE) yesterday hit all time high of Tk 110.89 crore amid a huge capital inflow in the market.

Earlier, the highest DSE turnover was Tk 106 crore on November 13, 1996.

DSE market capitalisation stood at Tk 34,425 crore, which was also the highest.

A strong buying support both from the general and institutional investors also led DSE witness the highest ever turnover, they viewed.

Experts said the market started witnessing a huge capital inflow from January 14 following declaration of a state of emergency in the country and also formation of a fresh interim government.

On that day, the DSE turnover was Tk 92.33 crore, which increased to Tk 104.70 crore on Thursday.

DSE President Abdullah Bokhari said, "Investors especially the institutional investors got back confidence to invest in the stock exchange."

"Investment from banks and other financial institutions were around 65 percent of the total turnover on Thursday," said the DSE president adding, "Today [yesterday] the percentage could be more."

Citing an average Tk 200 crore daily turnover in Sri Lanka, Bokhari said the turnover in Bangladesh should be more, as the size of gross domestic product in Bangladesh is greater than that of Sri Lanka.

Replying to a query, the DSE president said that the present market will not face any bubble burst like in 1996 as scripless trading, strong monitoring and surveillance, strict rules and regulations and a state-of-the-art infrastructure are now in place.

He suggested the investors to invest on securities analysing the price earning ratio.

Stock market expert Yawer Sayeed said there is a potentiality of further increase in turnover as the current turnover is minuscule in terms of money, which is around Tk 100 crore, considering a mammoth market capitalisation of more than Tk 30,000 crore.

A senior official of a merchant bank said, "The DSE and SEC should strictly monitor the market so that no manipulation could take place in the market."

Along with the turnover, the stock prices also rallied on the DSE yesterday for the fourth consecutive day led by power and banking sector. The DSE All Share Price Index rose by 31.39 points or 2.25 percent to close at 1421.92 points while the DSE General Index went up by 43 points or 2.5 percent finishing at 1756.53 points.

Besides, DSE-20 Index, comprising blue chips, also shot up by 24.66 points, or 1.62 percent, to close at 1546.10 points.

UNB adds: Trading at Chittagong Stock Exchange (CSE) closed higher yesterday with the gainers strongly dominating the losers.

The CSE All Share Price Index increased by 2 percent to close at 3985.68 points.

The CSE-30 Index also rose by 1.71 percent to close at 3645.51 points.

A total of 98 issues were traded. Of them, 80 gained, 13 declined and five remained unchanged. Some 5,213,126 shares and debentures worth Tk 27.26 crore changed hands.

http://www.thedailystar.net/2007/01/22/d7012201085.htm

Apparel exports to US, EU grow 24pc in 4 months

Bangladesh earned $2.6 billion through exports of readymade garments (RMG) to the US and European Union markets, registering a 24 percent growth in the first four months this fiscal.

According to Export Promotion Bureau (EPB), during the July-October period in FY 2006-07, exports of woven and knitwear product to the two markets surged 25.44 percent and 23.45 percent respectively.

During the period, the country exported $573.29million woven and $943.3million knitwear to the EU, while it exported $792.93 million woven and $290.81million knitwear to the US.

"RMG export earnings from the US market may cross $3 billion this fiscal, if we can continue the growth," said Abdus Salam Murshedy, the immediate past vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He said, "Competitive price advantage with other suppliers, especially after the US authority re-imposed an interim quota restriction on certain categories of Chinese garments in mid-2005, has helped in surging our exports."

Quoting a latest data released by the US department of commerce, he said with an earning of about 280 million dollars in October, Bangladesh's RMG exports to the USA during the January-October period in 2006 stood at 2485 million dollars.

"This figure is very significant, he said, stressing government support to continue the process of external trade.

Meanwhile, Bangladesh's share of its total RMG exports to the US is 33 per cent, while it is 55 percent in the EU.

"In the post-MFA period, the Bangladeshi RMG exporters upgraded their productivity and quality to retain the international market. Besides, competitive price advantages contributed a lot to the rapid rise in RMG exports," said Fazlul Haque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

He said Bangladeshi RMG exporters had been doing a brisk business in the EU market since January 2006 and the exports would have upped, if some of the buyers had not shifted to another country because of the political crisis that persisted here for a certain period.

In the FY 2005-06, Bangladesh fetched $3.9 billion from exports to the EU and $2.6billion from the US.

http://www.thedailystar.net/2007/01/22/d70122050150.htm

Bangladeshi meat to enter Middle East market

Bangladesh’s lone meat-processing company said Sunday it was in line to launch the country’s first-ever meat exports, sending halal or Islamic-certified products to the Middle East.

The Bengal Meat Company said it was expecting clearance for export to Dubai in the next few weeks as it looks for a share of the global market in halal products, estimated at 1.2 trillion dollars annually.

‘We have sent samples of our meat to Dubai authorities. As soon as we get clearance, we will start exporting,’ said the firm’s chief executive, Sharif Ahmed Chowdhury.

‘The Dubai officials have visited the plant and they were impressed with our standards. We expect the clearance within one or two weeks,’ he said.

Bangladesh has one of the world’s biggest livestock populations with goat and cattle the mainstays, according to Food and Agricultural Organisation (FAO).

But the country has never exported meat and the current plan came about only after the government offered a 20 per cent export subsidy, said Chowdhury.

‘Initially, we will export 50,000 dollars worth of meat every day. We are confident it will grow by leaps and bounds once we start,’ said Chowdhury, a former chief of Bangladesh Livestock Research Institute.

Meat certified as halal means that the animal was slaughtered according to traditions set forth by the Prophet Mohammed.

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

Sony Ericsson sees Bangladesh
a key strategic market
Neeraj Bansal tells New Age
Zahedul Islam

Bangladesh is a key strategic market for the growth of Sony Ericsson, the fourth largest mobile pone maker in the world, said Neeraj Bansal, head of market units, Bangladesh and Sri Lanka in an interview with New Age Sunday.
‘We want to be among the top three global players in mobile handset market and to become successful; we are focusing on markets like Bangladesh where there is plenty of scope for business,’ said Neeraj.
‘There is a huge potential for us to grow in Bangladesh,’ said Neeraj, adding that to capture the market, Sony Ericsson would start a massive campaign this year with full ranges of its product portfolios particularly music, camera, walkman and FM band-enabled phones.
‘Our target is to reach all segments of people through our low and high end phones,’ he said.
Neeraj also said that the mobile phone maker was also working on introducing Bangla text supporting handset to cater to the local needs.
He, however, said Bangladesh was still in an infant stage for Sony Ericsson and hoped that it would achieve a significant foothold in this marker within a couple of years.
‘We hope to get a considerable market share in Bangladesh through our diverse ranges of products to meet the different needs of people,’ he said.
‘The market has already started to widen; a lot of customers are using our phone being attracted by its innovative and stylish design, and uniqueness,’ he said.
He said the mobile phone manufacturer has already set up nine service centres across the country to sell its products with one year warranty from the day of purchase.
Regarding the presence of grey market of mobile phone in the country, Neeraj said the grey area would soon disappear as the major global brands have already set up their offices in Bangladesh and are selling warranted phones.
Brand awareness has also been created among the people because of the the presence of global dominant players, he said.
He also praised the government for lowering the taxes on handset to Tk 300 which he believed a positive move of government to address the grey market.

http://www.newagebd.com/2007/jan/22/busi.html#3

Exports up by 38pc in Nov
Tea losing markets and becoming
non-player in export
Kazi Azizul Islam

Total exports of the country in November last year grew by about 38 per cent to $916 million, compared to the same month of 2005, exceeding the target of the month by more than 8 per cent.
In October the total export earning declined by 0.2 per cent to $871 million, missing the target set for the month by 4.18 per cent.
But business picked up in November, and compensated for the slide in October.
In the first five months of the current fiscal year, the amount of export grew by 26 per cent to $5.046 billion, crossing the target by 2 per cent, according to the official data released by the Export Promotion Bureau on Sunday.
Officials of the bureau said good performance by the manufacturers of woven garments, textiles, frozen foods and footwear in November helped the growth to exceed the target.
The bureau said that from July to November in 2006, total export earnings stood at $5,046 million, crossing the target of $4,950 million. The total export earning was $4,011 million in the same period of the previous fiscal year.
The readymade garment sector was responsible for 76 per cent of the total export earning, and its earning grew by 28.31 per cent to $3,823 million in the above mentioned period. Its earning grew by 26 per cent in the July to October period last year.
In the January to November period, earning by the woven garment segment grew by 24.45 per cent to $1,908 million, crossing the target by nearly four per cent, while earning of the knitwear segment, the number one product in our export basket, grew by about 31.18 per cent to $1,915 million, but missed its target by 0.21 per cent.
‘High growth of woven garments, frozen foods, textiles and footwear raised export earning in November,’ said Supal Chandra, deputy director of the Bureau. He predicted similar encouraging growth in December also.
The EPB’s report shows that earning from export of frozen foods grew by 29 per cent to $255 million, of textiles by 83 per cent to $106 million, and of footwear by 34 per cent to $45 million. Handicrafts, ceramic products and engineering products also performed well.
Raw jute earned $79 million, jute goods $164 million, leather $115 million, bicycles $34 million, and textile fabrics $20 million. They have grown, but fallen short of targets.
Pharmaceuticals earned $12 million, tea only $1.95 million, and vegetables $15 million. All registered negative growth compared to the same period of in the last fiscal year. The case of tea, once a major earner, is pathetic.
Export of manufactured products, which is responsible for more than 90 per cent of export earnings, registered an increase of 26 per cent in terms of volume and about 2.32 per cent in terms of value. The country’s export earning target for the current fiscal year has been set at $12.5 billion, which will need 19 per cent growth. Exporters earned $10.5 billion, including $7.9 billion from readymade garments, in fiscal year 2005-06, registering about 22 per cent growth over the previous year.

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

Earning from shrimp export to EU grows by 55pc
FE Report
1/22/2007

The earning from exports of shrimp has grown by 55 per cent since the withdrawal of restriction of its shipment in 1998 by the European Union (EU).
The export of shrimp shot up to $403.58 million in fiscal 2005-06 from US$ 260 million in 1997-98, Export Promotion Bureau (EPB) sources said Sunday.
The EU imposed the ban on the export of fishery products from Bangladesh in July 1997 for non-compliance with food safety directives of its food and veterinary office.
It withdrew the ban in February 1998 on the government's assurance to comply with the safety standard.
Following the withdrawal of the ban, the overall export earnings from frozen shrimps were recorded at $ 242.23 million, $322.43 million, $ 349.75 million, 252.18 million, $ 297.04 million, $ 362.87 million and $ 365.82 million in 1998-99, 1999-2000, 2000-01, 2001-02, 2002-03, 2003-04 and 2004-05 fiscals respectively, EPB statistics showed.
However, the earning from shrimp export to the United States increased by 64.95 per cent in the period between 2001 and 2006.
Earlier, the EU was the main export-destination for Bangladesh's shrimp, the second largest foreign exchange earner after the readymade garment sector.
But from fiscal 2001-02 the export of the product to the US market increased due to product diversification and anti-dumping duty on other leading exporting countries by the US government, exporters claimed.
The EU countries continue to be sensitive to compliance issues, forcing the country's frozen foods exporters to seek increased shipments to the USA.
The country has an excellent opportunity to export its frozen food to the US market as other major exporting countries have been facing anti-dumping barriers by the US.
While talking to the FE, Touhidul Islam, Senior Vice President of Bangladesh Frozen Foods Exporters Association (BFFEA) said: "The US has imposed anti-dumping duty on import of frozen food from India, Thailand and Vietnam. But Bangladesh's duty free access to the US has helped increase in the overall export volume to that country."

http://www.financialexpress-bd.com/index3.asp?cnd=1/22/2007&section_id=1&newsid=50282&spcl=no

DSE turnover continues rising

Turnover on the Dhaka Stock Exchange (DSE) yesterday continued rising, hitting new all time high of Tk 119.06 crore.

Earlier, the highest turnover on the DSE was Tk 110.89 crore on Sunday.

DSE market capitalisation stood at Tk 34,547 crore, which was also the highest.

http://www.thedailystar.net/2007/01/23/2007-01-23__bus03.jpg

Along with the turnover, the stock prices also increased slightly on the DSE led by power and banking sector scrips. The DSE All Share Price Index rose by 5.81 points or 0.4 percent to close at 1427.73 points while the DSE General Index went up by 5.89 points or 0.33 percent finishing at 1762.43 points.

However, DSE-20 Index, comprising blue chips, dropped by 6.94 points, or 0.44 percent, to close at 1539.15 points.

Commenting on the latest development, DSE Chief Executive Officer Salahuddin Ahmed Khan said both general and institutional investors are participating in a renewed enthusiasm.

"Investments from banks and other financial institutions were around 50 percent of the total turnover on Thursday and 62 percent on Sunday," said the DSE CEO adding, "Today [yesterday] the percentage could be same or more."

Terming the share price behaviour as normal, he said the institutional investors are investing in the securities having good fundamentals. "If the general investors follow the institutions, the market will act normally," he observed.

Nurul Amin, managing director and chief executive officer of National Credit and Commerce Bank Ltd, said the investors got back the confidence to invest in the stock exchange following the latest political development.

He also said the present market will not face any bubble burst like in 1996 as scripless trading, strong monitoring and surveillance, strict rules and regulations and a state-of-the-art infrastructure are now in place.

A total of 25,905,538 shares of 210 issues worth Tk 119.06 crore were traded on the premier bourse. Of the issues traded, 116 closed in gains, 76 suffered losses and 18 remained unchanged.

Experts said the market started witnessing a huge capital inflow since January 14 following declaration of a state of emergency in the country and formation of a new interim government. On that day, the DSE turnover was Tk 92.33 crore, which increased to Tk 110.89 crore on Sunday.

Power Grid Company of Bangladesh (PGCB) topped the turnover leaders followed by Beximco Pharma, Southeast Bank, Jamuna Bank and Bextex.

The PGCB, the state-owned power company, topped the list with 500,750 shares worth Tk 15.38 crore.

http://www.thedailystar.net/2007/01/23/d70123050161.htm

Mostafa Group to set up $20m knitting project

Mostafa Group, the Chittagong-based leading Bangladeshi conglomerate, is going to set up a knit fabric and apparel manufacturing industry in the Karnaphuli EZP.

The proposed Mostafa Knitting and Dyeing Industries will create employment opportunity for 3,886 Bangladeshi and seven foreign nationals. The Mostafa Knitting Company will annually produce 3,216 tonnes of knit fabrics, 3,75,000 dozens of t-shirt, 50,000 dozens of polo shirt and 3,37,500 dozens of panty.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Mostafa Knitting and Dyeing Industries Limited in Dhaka on Monday.

Mostafa Group, having more than $700 million annual turnover, has been engaged in business since 1952 with its wings in commodity imports and marketing, ship breaking, manufacturing of steel products, artificial leather, rexin, readymade garments, papers, refining of palm oil, soybean oil, Vanaspati Ghee.

It has business in shrimp hatchery, highway transports ICT also has stakes in One Bank, Bank Asia Limited, Federal Insurance Company, Union Insurance Company, South Asia Insurance Company and the Chittagong Stock Exchange as corporate member.

M Fazlur Rahman Bhuiyan, General Manager, In-charge (Investment promotion) of BEPZA and Jahir Uddin, Managing Director and CEO of Mostafa Knitting Company have signed the lease agreement on behalf of their respective organizations.

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

Turnover on DSE hits highest Tk141cr mark

Turnover on the Dhaka Stock Exchange (DSE) yesterday hit the highest mark of Tk 141 crore, surpassing the previous record of Tk 119 crore on Monday, amid a strong buying support from investors including foreign participants.

The DSE through block market transactions witnessed foreign portfolio investment of around Tk 19 crore, over 13 percent of the total turnover on the premier bourse, DSE sources said.

A total of 349,500 shares worth Tk 19.01 crore were traded on the DSE's block market.

"The foreign portfolio investment led the DSE to cross the previous highest turnover," said a DSE high official.

DSE market capitalisation stood at Tk 35,369 crore, also the highest.

Commenting on the latest development, Chairman of Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi said the recent improvement of law and order situation, glut of liquidity, listing of new shares and a healthy operating profit by the banks in the last year contributed to the surge in turnover.

Referring to the rising trend of share price indices over the last two weeks, he also said, "I feel that now the investors, especially the retail investors, should invest carefully in the securities."

"There is a trend among the retail investors that they buy shares when the price indices go up. But, the indices increase up to a certain limit, as the price indices witness a downtrend due to profit taking selling pressure from the big or institutional investors," he explained.

Replying to a query, the SEC chief said they are yet to find any sign of manipulation in the market.

The commission, however, is watching the price behaviour of some Z category shares, he said, adding, "monitoring would be continued.''

Echoing him, DSE Chief Execuive Officer Salahuddin Ahmed Khan said the investors should decide on which security they will invest. "They will also have to analyse fundamentals, such as past and present price, previous dividend records and price earning ratio of a share before putting money on that chip," he observed.

On the DSE yesterday, the price indices also went up heavily led by power and banking sector. The DSE All Share Price Index rose by 25.26 points or 1.75 percent to close at 1466.84 points while the DSE General Index shot up by 33.5 points or 1.9 percent finishing at 1794.93 points.

Besides, DSE-20 Index, comprising blue chips, also increased by 17.33 points, or 1.14 percent, to close at 1536.41 points.

A total of 25,092,313 shares of 212 issues worth Tk 140.93 crore were traded on the premier bourse. Of the issues traded, 150 closed in gains, 41 suffered losses and 21 remained unchanged.

Power Grid Company of Bangladesh (PGCB) topped the turnover leaders followed by Dhaka Electric Supply Company of Bangladesh, Jamuna Bank, Summit Power, Lafarge Surma Cement and Southeast Bank.

The PGCB, the state-owned power company, topped the list with 405,050 shares worth Tk 14.06 crore.

Meanwhile, trading at Chittagong Stock Exchange (CSE) closed higher yesterday with gainers dominating the losers.

The CSE All Share Price Index increased by 66.81 points or 1.65 percent to close at 4114.97 points while the CSE-30 Index went up by 32.47 points or 0.9 percent to close at 3620.68 points.

Besides, CSE Selective Categories Index also shot up by 47.85 points or 1.8 percent finishing at 2700.6 points.

A total of 6,104,116 shares of 115 issues worth Tk 25.10 crore were traded. Of the issues traded, 93 gained, 20 declined and two remained unchanged.

http://www.thedailystar.net/2007/01/25/d70125050163.htm

Home textile firms bag $12m export order from German fair

Bangladeshi home textile companies received prospective export orders worth US$ 12 million by participating in 'Heimtextil-2007' held in Frankfurt, Germany from January 10-13, 2007, says a press release.
Ten Bangladeshi home textile companies participated in the fair under the auspices of Export Promotion Bureau.

Home textile products such as bed sheet, bedspread, curtain, quilt, cushion cover, pillow cover, ladies bag, tablecloth, silk products, towels and gloves were exhibited at the fair.

The main objective of participating in the fair was to familiarise the latest Bangladeshi products with the EU countries, other international buyers and trade communities with a view to expanding export market, particularly in EU countries.

Bangladesh pavilion has created significant interest among a large number of visitors and buyers of Asia, Europe and Africa. High officials from other participating countries visited Bangladeshi pavilion and took interest in Bangladeshi products and checked the quality and price competitiveness.

In the Bangladesh pavilion, participants had a series of business meetings and exchanged views with a large number of buyers and visitors for facilitating future orders as per given design, desired materials and preference. EPB-managed Bangladeshi participants bagged substantial amount of prospective orders for their products and on the last day of the fair it amounted to around $12 million.

http://www.thedailystar.net/2007/01/25/d70125050567.htm

Record breaking week for Dhaka bourse

The week-long rally that helped Dhaka bourse see a turnaround in a decade and break its own records brought smiles to many, but also raised concerns about a bubble as a good number of downgraded stocks made quick gains.

Market regulators are cautious but seem loath to put a brake right now, as the look-good political situation just started sending institutional and individual investors back to market.

Analysts and investors, however, are upbeat with the vibrancy that reversed the prolonged downtrend, and busy making the best use of the newfound opportunities. Over the years, the market has developed its capacity to absorb the gains, which are still below potentials, and its in-built mechanism will correct unusual fluctuations, if there is any, they believe.

Turnover at the Dhaka Stock Exchange Wednesday hit its all time high at Tk 140.94 crore surpassing the Monday’s total of Tk 119.06 crore.

On Sunday, DSE turnover rose to Tk 110.89 crore breaching for the first time a Tk 106.50 crore turnover record of November 13, 1996 just ahead of the bubble-burst that rendered thousands of fortune-seekers penniless overnight.

DSE turnover gained 38.68 per cent last week to a total of Tk 608.20 crore from the previous week’s Tk 438.57 crore.

The daily turnover averaged Tk 121.64 crore in the week ending Thursday while it was Tk 87.71 crore in the previous week.

‘The stock market attained significant growth in business, infrastructural and legal spheres over the years and it is capable to absorb the recent rate of daily turnover,’ said Faruq Ahmad Siddiqi, chairman of the Securities and Exchange Commission.

He, however, expressed concern over the quick rise of the prices of the shares and asked the investors to be cautious.

‘Small investors may suffer losses once the market will go through price correction,’ SEC chief said.

DSE general index gained 209.35 points or 13.23 per cent since January 14, the day market set off its current trend.

A stockbroker said the improvement of the political situation encouraged the institutional investors to inject funds in the stock market.

The rise also lured retail investors into the trading floor.

‘Turnover rose significantly as the institutional investors, prime mover of the market, returned to the market in full gear,’ said Moin Al Kashem, a stock market analyst.

The current market trend is positive, he said adding ‘the country’s stock market has improved significantly over the years.’

The general index of the DSE gained 77.81 points or 4.54 per cent last week to close at 1791.34 on Thursday, while blue chips index, DSE20, advanced by 27.83 points or 1.83 per cent to close at 1549.26.

Rising prices propelled the DSE market capitalisation to Tk 37,107 crore Thursday from previous week’s close of Tk 33,766 crore.

A total of 262 issues were traded throughout the last week. Of them, 187 issues advanced, 45 declined and ten remained unchanged.

A total of 20 issues recorded no trading during the period.

The Power Grid Company Bangladesh topped the turnover index with total sales of Tk 79.07 crore, which was 13 per cent of the total turnover at the bourse last week.

The Dhaka Electric Supply Company was the second biggest turnover leader with Tk 30.45 crore.

Other turnover leaders of the week were Southeast Bank, Jamuna Bank, Summit Power, Grameen Mutual Fund One, Aims 1st Mutual Fund, Exim Bank, Square Textile and Prime Bank.

However, Phoenix Leather topped the gainers while Dhaka Fisheries was the top loser. Phoenix Leather gained 79.10 per cent in its share prices while Dhaka Fisheries witnessed 10.61 per cent fall.

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

Remittance from UAE may cross $600m
Record number of Bangladeshi workers employed in UAE

Remittances sent by the Bangladesh expatriates living in the United Arab Emirates are expected to cross $600 million mark in the current fiscal year as a record number of Bangladeshi workers were employed there in the year 2000.

A Foreign Ministry press release Monday said the remittances sent by the Bangladeshi expatriates from the UAE stood at $ 553 million in the 2005-06 fiscal year, showing Bangladesh’s great success in the competitive labour market.

The credit for the remarkable success goes to the integrated efforts of Bangladesh Ambassador, Dubai consulate, BMET and Expatriate Welfare and Overseas Employment Ministry.

According to the UAE Foreign Ministry, some 5,02,842 Bangladeshi labourers were working in the Arab Emirates till December 2006. Of the total, 2,15,718 labourers were working in Abu Dhabi, 1,23,514 in Dubai, 78,395 in Sharjah, 33,316 in Azman, 7798 in Ummul Kowain, 27,308 in Ras-al-Khaima and 16,793 in Fuzaira.

The Overseas Employment Bureau said around 1,18,942 labourers were employed in the UAE from January to November 2006, the highest recruitment in 45 countries of the world, including the UAE.

If the trend continues, the release said, the number of Bangladeshi workers in the UAE will go up to 1.25 lakh by December next.

Meanwhile, the Bangladesh Embassy in cooperation with Abu Dhabi has realised Tk 1.10 crore in compensation from the recruiting agencies for the three Bangladeshi workers who died there since June, 2006 and sent the money back to their family members in Bangladesh.

Besides, some 2,952 Bangladeshi, who were languishing in different jails of Abu Dhabi, were sent back to Bangladesh. The bodies of 120 Bangladeshi workers were also sent back home after their death.

The UAE Labour Minister is expected to visit Bangladesh in February this year when a MoU will be signed between the two countries to protect the rights of the workers working there.

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

The DSE (Dhaka Stock Exchange) is a usually a bubble waiting to burst. There are people with vested interest who see to it that the index rises, the optimism spreads, money pours in, and then they sell sell sell and TA-DA...the market's bottomed out.

We can only hope it'll be different this time around...but....we'll see..

The DSE (Dhaka Stock Exchange) is a usually a bubble waiting to burst. There are people with vested interest who see to it that the index rises, the optimism spreads, money pours in, and then they sell sell sell and TA-DA...the market's bottomed out.

We can only hope it'll be different this time around...but....we'll see..

let's hope so.

DSE turnover hits all time high at Tk158.74cr
Tk49.21cr Brac Bank shares change hands

Turnover on the Dhaka Stock Exchange (DSE) yesterday hit all time high at Tk 158.74 crore with a huge number of Brac Bank's shares worth Tk 49.21 crore changing hands.

http://www.thedailystar.net/2007/02/01/2007-02-01__bus01.jpg

Earlier, the turnover hit highest at Tk 141 crore on January 24.

DSE officials said the trading of the huge number of Brac Bank shares contributed to the highest turnover. A total of 992,400 shares of the bank, which made debut on bourses yesterday, were traded on the DSE.

As a single security the Brac Bank also recorded the highest transaction in terms of value on a single day. Earlier on October 9 last year, Power Grid Company of Bangladesh (PGCB) marked the highest transactions in terms of value with Tk 32 crore.

The Brac Bank also topped the turnover leaders followed by PGCB, Dhaka Electric Supply Company, Grameen Mutual Fund One and AIMS First Mutual Fund.

Closing at Tk 531.50, the prices of the Brac Bank's share rose as high as Tk 540 and as low as Tk 460.

Earlier, the bank floated initial public offering (IPO) with 50 lakh shares at Tk 170 each, including a premium of Tk 70 per share, to raise Tk 85 crore from the capital market.

The DSE All Share Price Index rose by 19.04 points, or 1.3 percent, to close at 1473.61 points while the DSE General Index went up by 29.38 points, or 1.65 percent, to close at 1805.11 points.

But the losers outnumbered the gainers. Of the 205 issues traded, only 47 gained, 140 incurred losses and 18 remain unchanged. A total of 26,064,058 shares were traded on the DSE. The market capitalisation stood at Tk 37,470 crore.

"The retail investors showed a huge interest in Brac Bank shares while the institutional investors appeared less-interested," said DSE Chief Executive Officer Salahuddin Ahmed Khan.

The retail investors are also evaluating the Brac Bank scrip as a chip with good fundamentals. "Brac Bank was founded by Brac NGO, which is a leading development institution in the world, meaning its ownership and management belong to an organization, not individuals," said Amal Saha, a retail investor.

Rated A in the long term and ST2 in the short term until March 31 of 2006, earning per share of the bank stood at Tk 15.74 while the net asset value stood at Tk 202.31, as per the prospectus.

The third generation bank that started operations in mid 2001 is the 26th listed bank on the DSE and CSE.

http://www.thedailystar.net/2007/02/01/d70201050162.htm

Home textile exports surge 62 per cent

Home textiles have overtaken the leather sector to emerge as the fifth highest export earner as a single export item.

The home textiles sector has maintained robust growth in July-November. The sector posted a 62 per cent rise to $106 million in the first five months of the current fiscal year over the same period a fiscal year ago, according to the Export Promotion Bureau’s monthly statistics.

Entrepreneurs said exports would rise significantly if Bangladesh recovers its previous share of the US and Canadian markets.

The country’s export share of home textiles in the US market has fallen continuously in the last five years from 25 per cent in fiscal 2000-01 to a mere 5 per cent in the first four months of the current fiscal year.

Export share of home textiles in the Canadian market also lost out from 15 per cent in fiscal 2002-03 to 6 per cent in the last fiscal year.

‘If we can aggressively market our home textiles in the US market, we will secure much larger orders for the US and Canada,’ Sarker said.
‘The US market trend has been moving from manufacturing to global outsourcing,’ he said.

Local investment in the home textiles sector has surged to second place behind investment in the denim sub-sector, Bangladesh Textile Mill Association president Abdul Hai Sarker said Saturday.

Sources said Bangladesh would take part in the Global Home Textile Fair in the US on May 8-10 at the Orange County Convention Centre in Orlando, the prime venue for US buyers to connect with global outsourcing partners.

Exports of home textiles rose $165 million in the last fiscal year.

Bangladesh exported more than 70 per cent of its home textiles to the EU in the last four fiscal years, although exports were concentrated on a single European country—the UK.

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

6-month exports grow 26pc

The country's export earnings increased by about 26 percent to $ 6,220 million during the first half of the current fiscal year.

The export figure was also 3.6 percent higher than the target of $ 6,006 million set for the period (July-December '06), according to the figures compiled by the Export Promotion Bureau (EPB).

The December 2006 exports rose to $ 1,175 million exceeding the target of $ 1,056 million.

Both volume and value of exports were up during the first half of the year to the satisfaction of the national exchequer. The price of export items increased by less than one percent while the volume rose by 25 percent. The price of export items, particularly the manufactured ones, increased marginally (0.46 percent).

"We tried to hold our buyers at the cost of profit margin during the period of volatile political situation in the country," a prominent apparel exporter said.

He said the volume of apparel export did not decline to that extent but they had to slash the price from the cutting and making charges.

Woven garments registered 24 percent growth to US$ 2,368 million during the July-December period, which is six percent up from the strategic target of US$ 2,234 million for the period.

Knitwear exports were up 32 percent to US$ 2,362 million crossing the target of US$ 2,328 million by over one percent.

Frozen foods, engineering products, home textiles, footwear, ceramic products, handicrafts, cut flower and agro-processed foods have done well and exceeded the target for the period.

Leather, raw jute, bi-cycle, textile fabrics, petroleum by-products, melamine tableware, camera parts, leather bags and parts and computer services have battered the performance but could not achieve the target.

Pharmaceuticals, chemical fertilizer, agri-products, jute goods, tea and electronics lagged behind the target and last year's performance as well.

http://www.thedailystar.net/2007/02/06/d70206050764.htm

DSE turnover hits another record

Huge trading of BRAC Bank and Power Grid Company of Bangladesh (PGCB) shares propelled the turnover of Dhaka Stock Exchange (DSE) Monday to hit another record high at Tk 1.592 billion. The turnover was Tk 1.389 billion Sunday.

Earlier, the DSE had witnessed a turnover of Tk 1.587 billion on January 31, the very first day of BRAC Bank's trading.

Monday's trading led by power and mutual fund issues was dominated by losers as 125 issues declined, 70 gained and 14 remained unchanged out of 209 traded issues.

BRAC Bank was the top turnover leader for the fourth consecutive day with Tk 255.07 million traded with a 9.36 per cent gain over the previous day.

The share price of the new generation bank closed at Tk 645.25 per share against the face value of Tk 100.

On the other hand, PGCB bagged the second position in the turnover list with Tk 105.23 million traded with a 5.81 per cent rise to close at tk 441.00 per share against the face value of Tk 100.

The indices--All Shares Price Index or DSI and DSE General Index or DGEN -- continued to rise but DSE 20, the blue-chip index declined.

DSI and DGEN gained by 12.90 points and 18.43 points to close at 1540.23 and 1883.62 respectively while DSE 20 shed 6.90 points to close at 1527.81.

The total market capitalisation of the DSE rose to Tk 388.75 billion from Tk 386.03 billion.

All the issues of Beximco Group declined for the consecutive second day with the news of arrest of Salman F Rahman, the vice-chairman of the conglomerate.

The news of arrest of Mosaddek Ali, a former law-maker of BNP also triggered the fall of share price of IFIC Bank Ltd -- a Z-category company. Mosaddek is the chairman of IFIC Bank which was closed at Tk 730.25, a 7.56 per cent down from the previous day.

Beximco Group issues -- Bangladesh Online, Beximco, Bextex, Beximco Pharmaceuticals, Beximco Synthetics, Beximco Fisheries and Shinepukur -- declined by 2.53 per cent, 4.37 per cent, 3.58 per cent, 2.84 per cent, 2.19 per cent, 5.20 per cent and 2.58 per cent respectively.

Meanwhile, the management of First AIMS Mutual Fund and Grameen mutual fund One said the current market price of the two issues are grossly overvalued in relation of the their existing net asset value (NAV).

http://www.financialexpress-bd.com/index3.asp?cnd=2/6/2007&section_id=1&newsid=51761&spcl=no

Remittance earnings mark 29.14pc growth in 7 months

Bangladesh expatriates sent home a record US$ 3.32 billion in the first seven months of the current fiscal, marking a 29.14 per cent growth over the same period of the last fiscal, the central bank sources said.

The remittance earnings in the period came as a continuation to last fiscal's trend and record inflow of $4.806 billion. The growth in 2005-06 was 24.89 per cent over the previous fiscal.

The country's foreign exchange reserve stood at $3.76 billion Monday due to robust growth of remittances from Bangladeshis working abroad, the sources added.

According to the provisional estimates of the Bangladesh Bank (BB), the country received $3.32 billion during the July-January period of the current fiscal against $2.57 in the same period of the previous fiscal.

The remittances from Bangladeshi nationals working abroad were estimated at $463.66 million in January last, registering a decline of $94.42 million from the previous month.

Last December, the total amount of foreign exchange remitted by Bangladeshi wage earners amounted to $555.08 million, which was $138.09 million higher than that of the corresponding month of the previous fiscal.

"The flow of remittances normally declines in the post-Eid period," a BB senior official told the FE Monday, adding that it would pick up shortly.

He also said the central bank is continuously pursuing the banks for taking necessary measures to boost the flow of inward remittances.

http://www.financialexpress-bd.com/index3.asp?cnd=2/6/2007&section_id=1&newsid=51766&spcl=no

Remittance rises by 31pc in Jul-Dec 06

Bangladeshi nationals working abroad remitted home $2,861 million in the first half of the current fiscal year, which is 31 per cent more than the $2,178 million remittance the country received in the corresponding half of FY2005-06, reveals the Bangladesh Bank statistics.

The highest amount of $889 million or 31 per cent of the total remittance during the reporting period came from Saudi Arabia.

‘On an average, we received $476.86 million a month during the first half of this fiscal. According to our rough estimate, the amount of remittance in January was more than $450 million,’ said a central bank official.

Of the six months since July, November saw the highest remittance inflow, which is $598 million.

In FY06 Bangladesh received $4.8 billion remittance from its nationals abroad and if the present trend continues the remittance in the current fiscal year will exceed $5 billion for the first time in the country’s history, observed the BB official.

In the first half of FY07, $1,799 million was remitted from the Middle East. Of the non-Middle East countries, the highest amount, $439 million, came from the United Kingdom.

The remittance from Italy that had amounted merely $0.35 million in FY02 jumped to $82 million in FY06 and in July to December of FY07 it amounted $63 million.

According to the banker, ‘The remittance figure has been on the rise as the central bank has intensified its surveillance to check transfer of money in illegal ways, such as through hundi.’

Another reason for the increase in remittance through proper channels is a significant expansion of the network of facilities for sending money to Bangladesh, he added.

‘We have made arrangements with more than 600 money exchangers across the globe that can transfer money real fast to Bangladesh and the local banks can deliver the remitted amounts within 72 hours since receiving them,’ the BB official elaborated.

However, there are two major countries — Japan and Malaysia —from where remittance of money has recently been on the wane.

The remittance from Japan dropped from $14 million in FY02 to $9 million in FY06 and from Malaysia from $47 million in FY02 to $21 million in FY06.

In July to December 2006, the remittance inflow from Japan was merely $4.72 million and from Malaysia $5.62 million only.

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

Bangladesh to export 6 mln pieces of garments to India

Bangladesh is completing the procedures to export 6 million pieces of apparel items to India under the South Asian Free Trade Agreement (SAFTA), local daily The Financial Express reported Monday.

India has already sent a draft memorandum of understanding MoU) to the concerned authority of Bangladesh for import of apparel under the SAFTA, the report said.

The commerce ministry will convene an inter-ministerial meeting by the first week of the next month to finalize the strategy of the government for negotiation with the counterpart.

"The government-to-government negotiation will start after finalizing the strategy in line with the draft memorandum of understanding (MoU) as proposed by India earlier," a senior official of the Bangladesh Tariff Commission was quoted as saying.

Last November, India sent the draft MoU with some terms and conditions for Bangladesh to export the apparels items under the SAFTA.

In the draft MoU, New Delhi has agreed to offer preferential access to 6 million pieces of garments provided the fabrics of 3 million pieces are imported from India and the rest of the quantity can be made available either from Bangladesh's own sources or from India.

http://english.people.com.cn/200702/19/eng20070219_351249.html

Developers eye booming market
5-day REHAB fair kicks off
Star Business Report

Further evidence of the fast growing market for privately owned apartments was demonstrated yesterday when a record number of developers turned up to exhibit at this year's REHAB housing show.

The five-day housing extravaganza kicked off at the Sheraton Hotel in the capital with developers convinced they will pick up good sales. It was scheduled to start in November last year but had to be delayed due to the political turmoil.


"The real estate market is booming due to the influx of people into the cities and the greater ability of middle class people to buy their own homes, " said Mohammad Abdul Awal, president of Real Estate Housing Association of Bangladesh (REHAB).


This year 133 companies are taking part in the annual show compared to 90 last year. Financial institutions as well as developers are represented among the exhibitors.


Awal said buyers were especially interested in small apartments because of their affordability.


Nazrul Islam, a marketing and sales executive with the Amin Mohammad Foundation, said in popular areas apartment prices had risen sharply in the past few years. In Dhanmondi, for example, the average price per square foot was between Tk 2,000 and Tk 2,500 in 2003, but is now Tk6,000 to Tk8,000. This was one of the reasons why customers were looking further a field to areas such as Uttara and Mirpur, he said.


Developers, however, said the price surge did not have a large effect on demand in areas such as Dhamondi and Gulshan because of the huge inflows of remittances from Bangladeshis living abroad, especially those living in the Middle East.

This had caught some developers by surprise, as it had been expected that the inflows would be coming from the US or Europe. However in the US and Europe, NRBs had the chance to gain permanent residency, something they did not have in the Middle East. Instead, they were returning home, wealthy, and in need of an abode.


Another factor driving the market higher was buyers' using property as an investment. "With property prices rising quickly it a much better investment than putting your money in the bank," one developer said.


The exhibition was opened by Mainul Hosein, law, housing and information adviser to the caretaker government.


Speaking on the occasion Mainul urged developers to follow the housing code strictly." It is needless to say that quality and standard of services are of prime importance. These must not be compromised, " he said.


Responding, REHAB President Awal said, "The association has already started to formulate the code of conduct and standard of practice for the Rehab developers."

The entry fee for an individual is Tk 50 and for a family the fee is Tk 100. However, a visitor will get a five-day entry ticket at Tk 100.

Source:http://www.thedailystar.net/2007/02/21/d70221050149.htm

By the way, since when did asian Sky Bazaar turn into Bangladesh forum?
It looks like you guys need a forum of your own.

3 CIS nations to develop trade ties with Dhaka
Housing firms' help sought in tourism infrastructure

Kyrgyzstan, Kazakhstan and Tajikistan have expressed their keenness to develop trade and economic relations with Bangladesh, according to a high-profile business delegation of the three commonwealth independent states (CIS) now on a visit to Dhaka.

These countries are also planning to open up missions in Dhaka. Presently, the embassies of these Central Asian nations in New Delhi look after the Bangladesh related issues in addition to their normal duties.

The delegation expressed the eagerness at a joint trade seminar organised at a city hotel yesterday by the honorary consul of Kyrgyzstan to Bangladesh.

Responding to a question, Nasiriddinov said on a possible rise in the trade volume between Tajikistan and Bangladesh, they would consider opening up a mission here.

Kazakhstan's mission is likely in Dhaka next year, hoped Bauyrzhan Kerimkulov, consul of the country to India and also a member of the visiting team.

Turkish Ambassador in Dhaka Ferit Ergin also spoke at the seminar.

Speaking as the chief guest, President of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Mir Nasir Hossain stressed a regular exchange of business teams between Bangladesh and those CIS for enhanced trade.

Lack of direct transport, communication and language as the main barriers to developing such a trade relation, the apex trade body chief identified, suggesting establishment of a direct communication network with those countries.

Bangladesh can export readymade garments, pharmaceuticals, leather, jute, jute goods and footwear items to those countries whereas it can import high quality cotton, audible oils, and mineral resources from those states, Mir Nasir pointed out.

The business delegation are of the opinion that there are ample scope to develop trade ties between Bangladesh and those states which have been pursuing free economic policies and inviting foreign investment for tapping their economic potentials.

They said their countries have changed their trade policies and are now allowing investment from private sectors and foreigners. The trade rules have also been liberalised and foreigners can repatriate profit money, they added.

The delegation members also proposed that Bangladeshi businesspeople can set up joint venture companies in the fields of textile, pharmaceuticals and tourism in the CIS.

Pointing to the fact that millions of people visit those states every year but the countries lack adequate tourism infrastructure like hotels and resorts, they suggested that Bangladeshi real estate companies can provide technical assistance for developing tourism infrastructure there.

President of Bangladesh Textile Mills Association Abdul Hye Sarker and Honorary Consul of Kyrgyzstan to Bangladesh Kazi Shamsul Haque also spoke on the occasion.

http://www.thedailystar.net/2007/02/23/d70223050257.htm

Bilateral trade with US surges 19% in 2006

Bilateral trade with the US upturned 19 percent to $3.6 billion in 2006, contributed mainly by Dhaka’s increased apparel exports. As per latest statistics, Bangladesh' exports to America stood at $3,270 million last year while imports reached $333 million.

Exports to US, the largest destination, shot up 21.6 percent last year as against 6.4 percent elevation in import of US merchandize. Bangladesh' trade surplus with biggest global economy rose from $2.37 billion in 2005 to $2.94 billion in 2006.

Over 89 percent of last year's export was generated by domestic garments shipped to America, which brought $2,914 million earnings. If revenue from export of textile products such as fabrics, home textiles and towels is added, this figure becomes $2,998 million.

Of the country's total apparel imports worth $8.93 billion in 2006, 33.33 percent came from US despite EU maintaining its status as chief export market.

RMG sector would have exceeded $3 billion in revenue if political unrest had not affected clothing shipments to US in fourth quarter of 2006, according to BGMEA sources.

http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=31203

By the way, since when did asian Sky Bazaar turn into Bangladesh forum?
It looks like you guys need a forum of your own.

I second that. Bangladesh really needs a forum of its own and they deserve it.

By the way, since when did asian Sky Bazaar turn into Bangladesh forum?
It looks like you guys need a forum of your own.

Thats what i was just about to say, i thought i clicked the wrong link or something when i came to the sky bazaar. Ask the moderators for your own forum instead of crowding up this forum.

Someone from Bangladeshi forum should send PM to Jan. Do we have a Bangladeshi mod? I doubt since we dont have a forum for this country yet.

I sent him a mail, he forwarded it to the Asian mods but they said later. They've got plenty of experience so lets leave the decision to them (but in the meantime we'll continue trying to convince them so don't worry!:) )

Thats what i was just about to say, i thought i clicked the wrong link or something when i came to the sky bazaar. Ask the moderators for your own forum instead of crowding up this forum.

It was asked for several times but the mods don't believe it is time for a bangladesh forum yet. So until they believe its time, get used to the crowding :) .

It was asked for several times but the mods don't believe it is time for a bangladesh forum yet. So until they believe its time, get used to the crowding :) .

^^ This and make some friends in the high places starting now. Heck this trick worked for the lebanese to get their own forum.. :lol:

BB will continue to buy greenback
Forex reserve now $4.09 billion

The country's foreign exchange reserve crossed US$4.0 billion Monday as the central bank continued to buy the greenback to keep the foreign exchange market stable.

"We will continue to buy the US dollar from the banks to keep forex market stable," a senior official of the Bangladesh Bank (BB) told the FE Monday.

He also said stable local currency against the US dollar is essential for ensuring the inflow of remittances and export earnings.

The BB directly purchased around $100 million from the commercial banks to help keep their 'net open position (NOP)' within the required limit, sources in the BB said.

The country's foreign exchange reserve stood at $4.09 billion Monday from $3.85 billion on February 6 last.

Sources, however, said higher inflow of remittances from expatriate Bangladeshis and increased export earnings have mainly boosted the supply of the greenback in the market.

"The demand for dollar slightly fell recently in the market due to declining trend of the overall import," a treasury official of a private commercial bank told the FE.

He also said the rate of the US dollar against the local currency may increase if the settlement of import bills rises in the near future.
However, the rate of US dollar remained stable against the local currency Monday due to lower demand for the greenback in the market.

The banks quoted the dollar rate at Tk 69.0 on the day, unchanged from the previous level, in the inter-bank foreign exchange market.

The nationalised commercial banks (NCBs) sold dollar at Tk 70.00 to the importers, private commercial banks made deals at Tk 69.50-Tk 69.90 and foreign commercial banks quoted at Tk 69.40-Tk 69.47.

The inter-bank call money rate was also steady and it maintained previous day's range despite withdrawal of cash through reverse repurchase agreement (repo) auction, fund managers said.

The call rate swung between 6.50 per cent and 10.00 per cent. Most transactions were, however, made at rates fluctuating between 6.50 per cent and 7.00 per cent, they said.

The call rate fluctuated above the bank rate of 5.00 per cent that indicated higher than expected pressure on liquidity, fund managers said.
The central bank withdrew Tk 13.80 billion through reverse repo auction at an interest rate of 6.50 per cent per annum.

http://www.financialexpress-bd.com/index3.asp?cnd=2/27/2007&section_id=1&newsid=53838&spcl=no

ADB forecasts 6.5pc GDP growth in '07

Asian Development Bank (ADB) has forecast a 6.5 percent growth in Bangladesh's GDP in 2007 fiscal, a 0.2 percent fall compared to the last financial year, assuming a check in any further potential momentum in growth by political instability and power shortfall.

"Growth is expected to moderately reflect more normal agriculture growth following the last year's post-flood high growth," stated the ADB's Bangladesh Quarterly Economic Update, December 2006 released yesterday.

However, the report also stated, "The country faces several downside risks in its near to medium-term prospects. These include political disruption and infrastructure constraints, including power shortage."

On a query whether ADB still foresees any political risks clouding the environment here when a new caretaker government (CG) has taken over the administration, Country Director Hua Du did not rule out any such risk.

But, she told journalists at his office in Dhaka, her organisation looks positively to the recent measures taken by the CG. The steps deserving credit include reform initiatives in the election commission, anti-corruption commission and public service commission.

She said, "In this very short time, we feel, this caretaker government has taken all these good decisions to lay the foundations to increase FDI, which will have some major fundamental effects."

The ADB report stressed significant improvement in the infrastructures, including power and transport, to sustain higher growth over the medium term.

"In Bangladesh, per capita energy generation is only 158 kilowatt-hours a year, among the lowest in the world. Only one-thirds of the population have access to electricity. In recent years, the power situation has worsened because of load-growth outstripping supply capacity expansion, and slow progress in reforms," it added.

Bangladesh needs substantial investment to handle the gigantic task of meeting the growing energy reform. Plus it should adopt a cost-reflective power tariff structure, establish the northwest power generation company and take up other measures to organise and streamline its various power entities, the ADB observed.

On the Chittagong Port, the ADB says, "the cost of export for each container in Bangladesh is $902 compared with $797 in Sri Lanka and $481 in Malaysia. For Chittagong Port, the focus should be on contracting out operations to the private sector, outsourcing management of the new container terminal to a private operator, allowing the private sector to invest in port infrastructure and restructuring port management."

It proposed offloading the shares of state-owned petroleum distribution companies and Bangladesh Biman to boost market activity.

The ADB also encouraged major mobile phone companies with big annual turnovers to also offload some of their shares to the stock market to facilitate the process of boosting market capitalisation and trading activity.

In the report, the ADB also blamed 'weak corporate governance, lack of good quality shares and inadequate or irregular participation by large institutional investors' for Bangladesh's capital market lagging behind other South Asian countries.

The report found that Bangladesh's market capitalisation to GDP ratio of 7.5 percent was boosted by a pickup in the exchanges, but since it lags behind other South Asian countries, entrepreneurs here have difficulties to finance new businesses.

Additionally, "small savers and investors are marginalised from sharing the benefits of higher economic growth and corporate profits," the report added.

http://www.thedailystar.net/2007/02/26/d70226050159.htm

Strange as other countries have started to wean away from the dollar except China (they have their reasons for not making the move YET)>

Deal signed to set up $10.96m garments industry in Adamjee EPZ

Sign Knit Wears (Pvt) Limited will invest $10.96 million to set up a composite knit garments manufacturing industry in the country's Adamjee Export Processing Zone (EPZ).

A lease agreement was signed to this effect between Bangladesh Export Processing Zones Authority (BEPZA) and M/S Sign Knit Wears (Pvt) Limited in the city Sunday.

BEPZA Member (investment promotion) Md Farhad Uddin and Sign Knit Wears Chairman and Managing Director Rafiur Rabbi signed the agreement on behalf of their respective organisations.

BEPZA Executive Chairman Ashraf Abdullah Yussuf, Member (finance) AKM Mahabubur Rahman, Secretary Md Ali Akbar, General Manager (investment promotion) AZM Azizur Rahman, Deputy General Manager (public relations) Nazma Binte Alamgir and Manager (industrial relations) Md Abdus Sobhan were present, among others, on the occasion.

Sign Knit Wears is a fully-owned local company. It will manufacture annually 35,46,000 kg of fabrics, 1,20,000 kg of collars and cuffs for Polo shirts, 5,00,000 dozens of T-shirts and 1,80,000 dozens of Polo shirts.

The company expects to create employment opportunity for 1120 Bangladeshi nationals.

http://www.financialexpress-bd.com/index3.asp?cnd=2/28/2007&section_id=7&newsid=53939&spcl=no

Kitchen product maker to reach 80pc capacity by June
Floats 60 lakh shares

Golden Son Limited, a Bangladesh-Taiwan joint venture that manufactures non-electrical cooker, hotpot and food warmer, will utilise its 70 to 80 percent production capacity by June this year using a fund to be raised from the stock market through initial public offering (IPO).

The Chittagong-based company, which cannot utilise now beyond 30-35 percent of its output capacity as it runs short of working capital, received approval from the Securities and Exchange Commission to raise a total of Tk 6crore from the members of the public through floating 60 lakh shares of Tk 10 each.

The IPO subscription will start from March 4 and close on March 8.

"Procurement of working capital is the main reason for which we are floating IPO," said Lin Mei-Hui, managing director of the Golden Son, also a manufacturer of toys and children's tennis ball and racket.

"On utilising the fund, we would also be able to produce items at a rate cheaper than that of China," she hoped.

The company, which went into production in 2005, is also exporting its products to Canada, Australia, UK, Taiwan and Singapore.

Speaking about the Taiwanese entrepreneurs' interests in investment here, the company's top official said, "Hundreds of Taiwanese will invest in Bangladesh if our existing project succeeds in its operation here."

These entrepreneurs, who mainly invested in China, are now looking for new investment destinations other than China, she said, adding that Vietnam and Indonesia are among the top priority destinations of them because of their better infrastructures.

"But, Bangladesh is ahead of them in terms of availability of cheap labour force," she said.

Lin Mei-Hui said a congenial atmosphere, including political stability, adequate infrastructure and policy, is needed to attract foreign investment, especially from Taiwan.

Taiwan has already a good amount of investment in Bangladesh's export processing zones (EPZs) in readymade garments, textile, knitting, garment accessories, metal, footwear and leather goods and plastic product units.

"And the Taiwanese investment can be enhanced many times in Bangladesh," said Belal Ahmed, executive director of Golden Son, adding that after China and India, Bangladesh is the best place for investment in manufacturing sector.

Authorised capital of the company is Tk 50 crore and paid-up capital Tk 19 crore. The company also raised Tk 4 crore through private placement from Investment Corporation of Bangladesh, Trust Bank, Union Capital, Equity Partners and Karnaphuli Insurance.

http://www.thedailystar.net/2007/02/28/d70228050370.htm

Balance of payment surplus reaches $347m in Jul-Dec
Rejaul Karim Byron

Despite slow foreign direct investment (FDI) and foreign aid, the country's overall balance of payment (BoP) surplus reached $347million in the first six months of the current fiscal, thanks to continued export growth and huge remittance inflow.
The BoP was $201million deficit in the same period last year.

The current account balance surplus marked a 132 percent rise during the July-December period in FY 2007 as it reached $579 million against $247million in the same period of FY 2006.

Country's export outweighed import in the first six months this fiscal.

FDI reached $250million in the same period this fiscal, registering a 31 percent drop, while the amount was $362million during the same period of the 2005-06 fiscal.


Meantime, foreign aid also marked a 40 percent fall as fourteen out of 22 development partners did not disburse any aid to Bangladesh in the first half of the current fiscal year.


Besides, there was no aid disbursement from a number of Aid Club donors due to political instability here and lack of reforms deemed necessary to curb corruption and improve governance.

Bangladesh received $294.76 million in foreign aid in July-December this fiscal, while it was $488.55 million in the corresponding period of last fiscal, according to the Economic Relations Division (ERD).

Remittances jumped by 29 percent in July-January period compared to a year earlier to reach $3.32billion. The surge resulted from the increased use of official channels by Bangladeshis abroad to send their money home.


The July-December exports fetched $6.22billion, growing at around 26 percent. The earning from exports in the same period last fiscal was $4.94billion.


Imports in July-December this fiscal increased 20 percent to reach $7.44billion against $6.18billion in the same period of FY2006.

Source:http://www.thedailystar.net/2007/02/28/d70228050168.htm

MZM Textiles to invest $10.033m in CEPZ

Bangladeshi company M/s. MZM Textiles Limited is going to set up a textile manufacturing industry in Chittagong Export Processing Zone (CEPZA), said a press release.

It is a fully local owned company to invest US$ 10.033 million, which will manufacture annually 4.00 million products such as cotton grey, bleached, dyed, printed terry towels, bed sheets, pillow cases washcloth, bamopss, kitchen towels, apron and bath mats. The company will also create employment opportunity for 997 locals and three foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s.. MZM Textiles Limited in the city Monday. BEPZA Member (Investment Promotion) Md Farhad Uddin and M/s.

MZM Textiles Limited Managing Director Md Rafiqul Islam signed the agreement on behalf of their respective organisations.

Among others, Executive Chairman Ashraf Abdullah Yussuf, Member (Finance) AKM Mahabubur Rahman, Secretary Md Ali Akbar, General Manager (investment Promotion) AZM Azizur Rahman, Deputy General Manager (Public Relations) Nazma Binte Alamgir and Manager (Industrial Relations) Md Abdus Sobhan of the BEPZA were present at the signing ceremony.

http://www.financialexpress-bd.com/index3.asp?cnd=3/1/2007&section_id=7&newsid=53990&spcl=no

Bangladesh's Exports Up 21 Pct in Seven Months

Country's export earnings recoded a 21.36 per cent growth to US$ 7039.70 million in the first seven months of fiscal year (2006-07) compared to the corresponding period of the last fiscal year, officials say in Dhaka on Tuesday.

According to the state-run Export promotion Bureau (EPB) figures released on Tuesday, the export earnings fetched $ 7039.70 million in the July-January period, registering a shortfall of $31.55 million against the target of $ 7071.25 million.

"The overall export earnings have increased because of significant rise in terms of quantity along with nominal rise in prices of the exportable products," an EPB senior official told AHN.

According to the statistics, the price index and overall volume of exportable Bangladesh products were increased by 0.29 per cent and 21.07 per cent respectively during the period in the global market.

During the period, woven garments fetched $2698.50 million against $2262.54 million of the corresponding period of the last financial year, showing 19.27 per cent export growth over the corresponding period and 2.58 per cent up over the target.

On the other hand, the export earnings of the knitwear products during the period had also been able to maintain a robust growth, fetching $2636.87 million against $2086.23 million, up by 26.39 per cent over the corresponding period of last fiscal year but fell short of 3.81 per cent over the target.

Readymade garments (RMG) - woven and knit apparels - is the manufacturing sector of Bangladesh having about 76 per cent share of the total export earnings during the period.

http://www.allheadlinenews.com/articles/7006660072

Correlation between GDP growth and anti-corruption drive

Surprise, surprise! The central bank governor Monday feared a little bit of economic slowdown during the current fiscal year because of the ongoing anti-corruption drive.

"There could be a little gap between the actual achievement and the GDP growth target (6.7 per cent) this fiscal because of the anti-corruption drive but the drive will deliver long-term benefit", the Bangladesh Bank governor told reporters at the end of his meeting with the country's top bankers.

But his fear has come in contrast to what has been said time and again in scores of documents of the multilateral lending agencies, particularly the World Bank (WB), on the impact of anti-corruption drive.

According to the WB estimate, pervasive corruption costs Bangladesh 2.0 to 3.0 per cent of its GDP growth annually. The economy should do better this year than what has been projected initially since corrupt politicians and businesses are either in custody or have gone into hiding to escape arrests.

But things are, apparently, going wrong way round. The soaring prices of essentials, if not contained either by cajoling the traders or through market intervention mechanism, might push the rate of inflation to double digit.

The caretaker administration appears to be confident of the macroeconomic stability despite all the cascading effects of the determined drives against corruption and other irregularities that have been going on unabated until recently. But its main worry, certainly, remains to be the price situation.

The chief adviser of the caretaker government has been emphasising on the need for reining in the soaring prices of essential commodities and advisers in charge of the finance and law ministries trying their best to dispel fear among the businesses about possible government actions against them. The central bank, in the backdrop of a marked fall in fresh letters of credit (LCs) against import of essential commodities in the months of January and February last, has advised the banks to be flexible about opening import LCs. The law adviser Monday assured that food items would be released from go-downs sealed by the joint forces earlier for alleged hoarding and help the traders arrested in this connection to get bail from the courts. Actually, the government is trying to restore confidence among the business community.

The anti-hoarding drive has created a sort of nervousness among the importers and wholesalers, no doubt. But one cannot ignore another possibility. The drive against corrupt elements and owners of black money, to be specific, has created a wider unsettling effect on the economy, albeit temporarily.

The demand for goods and services, except for the essential ones, has naturally gone down for two principal reasons-- a little bit of caution on the part of general consumers and large-scale absence of black money from the market in the wake of actions against corrupt elements and tax dodgers.

Since the tentacles of corruption have reached everywhere any concerted drive against corruption is bound to produce a ripple effect. Business should not be any exception. Rather the anti-corruption drive is supposed to jolt the businesses more than any other community, for, these days, politicians and businesses are so much intermingled that it is hard to recognise them differently.

If one traces through the composition of the eight national parliaments constituted since independence of the country, one would notice their gradual transformation. The genuine politicians having their base in the grassroots were outnumbered by others, mainly the businesspeople. There are instances where the genuine politicians have been dragged into business activities by businessmen-turned-politicians.

The reason behind the businessmen joining politics in large numbers has been to curry favour with the people at the power centre to promote their own business interests, unduly. This unholy practice has reached its peak in recent years and stories are galore how the state exchequer has been deprived of billions of taka jointly by politicians and unscrupulous businessmen-cum-politicians.

The problems those are transient in nature should not deter the interim administration from taking appropriate actions against corrupt elements and holders of black money.

The country having almost a half of its population below the poverty level can no more afford unabated corruption and other irregularities. Determined actions on the part of the government would naturally create dislocations here and there. But those would gradually dissipate.

The people have heartily welcomed the government's anti-corruption drive. But the hike in the prices of most essentials has given rise to dissatisfaction among them. If the government can address the problem effectively and take other measures in the interest of the country, there should be no reason for the people to withdraw that support.

http://www.financialexpress-bd.com/index3.asp?cnd=3/14/2007&section_id=1&newsid=55421&spcl=no

Bangladesh's Remittance Flow To Cross $5.5 Billion Mark By Fiscal Year's End

The Bangladesh Bank, the country's central bank, expects the flow of inward remittances to cross the $5.50 billion mark by the end of the current fiscal year. That will be 14.58 percent higher than the same period last year, officials say.

"We are expecting that the flow of remittances will cross $5.50 billion by the end of the current fiscal," a Bangladesh Bank senior official told AHN in the capital city, Dhaka.

He also said the inflow of remittances might touch $5.70 billion at the end of this fiscal year - if the existing trend continues.

The inflow of remittances will come as a continuation to the last fiscal trend that saw a record inflow of $4.801 billion. The growth in 2005 to 2006 was 24.78 percent over that of the previous fiscal period.

According to the Bangladesh Bank's estimate, Bangladesh will receive at least $5.50 billion during the July to June period this year compared to $4.801 billion in the same period last year.

The country has already received $3.81 billion during the first eight months of the current fiscal year and at least $1.80 billion is expected to come in the remaining months of the this fiscal year.

Currently, some private commercial banks, along with the state-owned banks, are trying to increase the flow of remittances from different parts of the world to meet their internal demand for making payments against imports. Those areas include the Middle East, Malaysia, Italy and Singapore.

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

http://www.allheadlinenews.com/articles/7006779997

Bengal Meat to start export soon

The Bengal Meat, country's first meat processing plant will utilise its plant optimally by the next few weeks as buyers from abroad have expressed their desire to import frozen meat from the country.

The meat processing company has been exporting only chilled goat meat to the United Arab Emirate (UAE) since Thursday last. The world market has the demand both for chilled and frozen meat with the former maintaining temperature at 2-4 degrees while the later at below minus 20 degree celsius.

The company is now producing only 20 tonnes of chilled meat every eight hours for the export market.

Its optimum capacity is around 40 tonnes in two shifts. The plant has been built at Santhia in Pabna on 10 acres of land.

"We are now negotiating with the buyers of the UAE to export frozen meat. We think we will be able to complete it within the next few weeks," said Mazharul Islam, Chief Executive Officer of the Bengal Meat.

Its state-of-the-art plant has been designed and equipped by an Australia-based company -Food Equipment Australia. Its total investment is Tk 400 million.

The Bengal Meat, funded by the central bank's entrepreneurs equity fund (EEF), exported a total of two tonnes of goat meat to the UAE in the last week.

The company, is also certified by the ISO 2005, is scheduled to export another chalan today (Tuesday). The company is sending only a tonne in each chalan through air shipment.

The CEO of the company said the UAE market is mainly dominated by the chilled meat. India, Pakistan, Brazil and some other non-Muslim countries are dominating the market.

"We are planning to export hygienically halal meat to potential markets of Saudia Arabia, Kuwait, Egypt and Malaysia as we are eligible and has capacity to take a share of the market," the CEO of the company added. Currently, India, Pakistan and other non-Muslim countries are exporting to the middle-east and other Muslim countries.

Director (operation and technology) Sharif Ahmed Chowdhury said the meat processing plant is also marketing its meat to local markets through the super department stores.

He added: "We are also supplying our meat to the country's luxurious hotels." Sources at the company said the price of beef is Tk 165 for a each kilogram while the goat meat is Tk 255.

Director (operation and technology) also said it is raising cattle at its plant for export purposes side by side collecting cattle locally.

http://www.financialexpress-bd.com/index3.asp?cnd=3/20/2007&section_id=7&newsid=56022&spcl=no

BGMEA unveils 3-year plan to double export
Demands ensuring infrastructure facilities
Star Business Report

A strategy has been unveiled by the new leadership of the apex trade body of the apparels sector to double its export target in a span of three years on the backdrop of changed global business scenario.

Bangladesh Garments Manufacturers and Exporters Association (BGMEA) says besides implementing this new strategy, styled Time Action Plan, to resolve local and global barriers, they would look into enforcement of the tripartite agreements on RMG workers' minimum wages and compliance issues to augment exports from $9 billions to $18 billions.


The plan was laid bare yesterday at a press conference, the maiden one after the newly elected executive body took office of the BGMEA on March 12 in Dhaka.

The BGMEA's new president pointed to the fact that Bangladesh now enjoys some extra privileges of exporting apparels to both the US and EU markets because of the embargo being faced by China, Bangladesh's main competitor.


But he hastened to remind it that such embargo on the Chinese apparels would not stay for long as the EU would lift it by the year-end and the US by 2008.


Anwar-Ul-Alam Chowdhury Parvez said,"We are not worried, rather very confident to reach our target, if government comes forward to ensure infrastructure facilities during the period of three years."

He said as per the Time Action Plan, the 27 members of the association would work together to resolve the obstacles in the smooth business.

To face the challenge of reaching the target of $18billion RMG exports, the BGMEA is keen to work with other parent sectors including Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA), the BGMEA chief said.


A rapid change has been brought about in the global business strategy over the years, he said, adding that UCP-600 (uniform customs and practice for documentary credits), direct trading banking system, delivered ex quay (DEQ) and factoring system are coming up, while deferred payment is now allowed in export and import business.


He suggested that the government should introduce such a direct trading banking system, which is already in force in China.


Parvez also urged the government to send a realistic recommendation on generalised system of preference (GSP) to the European Commission soon so that the country's RMG sector can reap benefit from GSP in the EU market.


GSP issues have changed during the last few years, but Bangladesh has not yet sent any proposals to the commission, he lamented.

He told the press,"As we are committed to implementing the minimum wage for the RMG workers within a short time, we will look into this issue to find out how many factories have gone by the deal with regard to such wages".


Faisal Samad, second vice president of BGMEA, was present at the press conference among other directors and board members.

Source:http://www.thedailystar.net/2007/03/20/d70320050159.htm

Bangladesh a top growth market for ad industry
Says international executive
Sumon Salah Uddin

Bangladesh is one of the fastest growing markets in Asia for advertising and market research, according to a senior executive in one of the region's leading ad agencies.
Nirvik Singh, Grey Global Group chairman of South Asia and president of South East Asia, said that with a growing middle class, a population of more than 140million and the increasing influence of satellite television, the market for consumer products could take off.


The Indian based Grey Global Group, which claims to be Bangladesh's second largest advertising agency, said the country was

one of the three Asian economies with the most potential for growth.


"Bangladesh, Vietnam and Indonesia are Asia's next emerging tigers," said Singh, interviewed in Dhaka on Sunday.


During the next five years this growth would be especially marked in product areas such as healthcare, insurance and financial services, said Singh, who is based in Mumbai.


Grey Worldwide has been operating in the country for over 10 years and Bangladesh is among the top four markets in Asia in terms of growth.

Singh said Grey Worldwide is conducting market research in Asia titled 'Eye on Asia' to better understand the region's consumer behaviour. Similar research on Bangladesh under the programme 'Eye on Bangladesh' will be launched in the country within a few months.

Singh is credited as being the man behind the hugely successful 'Incredible India' tourism campaign and said he has a similar plan for Bangladesh. The campaign would raise the image of the country worldwide and help boost tourism.
"It's not far away from now when brands will be proud to claim themselves 'Made in Bangladesh'," said Singh.

Commenting on the changes that have taken place in Bangladesh's consumer market over the last ten years, Singh said the country has changed a lot in terms of commercial atmosphere and market trends, thanks to the satellite television.


"Over 50 percent of Bangladesh's consumers are young. They welcome new innovations, helping new companies introduce with new products and services," he added.

Asked if the ongoing drive against corruption and black money would leave any negative impact on the atmosphere for the advertising industry, he said, "Short term losses often lead to long-term gains."

Source:http://www.thedailystar.net/2007/03/20/d70320050260.htm

[SIZE="4"]
[B]Singh is credited as being the man behind the hugely successful 'Incredible India' tourism campaign and said he has a similar plan for Bangladesh. The campaign would raise the image of the country worldwide and help boost tourism.


Thats Great :banana:

Thats Great :banana:

what plan is he talking about?

A tourism campaign for Bangladesh.

DEVELOPMENT FORECAST BY ADBEconomy to grow by 7pc in FY08, inflation to decelerate
Khawaza Main Uddin

The country’s economy will grow by 7 per cent in the next fiscal year compared to 6.5 per cent in the current year, despite challenges in infrastructure development, governance, and stimulating foreign direct investment, forecast the Asian Development Bank. The Manila-based lending agency made the projection in its Asian Development Outlook 2007 launched simultaneously in Dhaka and elsewhere on Tuesday, considering a strong performance of Bangladesh’s industry and service sectors.
The bank also forecast a decelerating trend in inflation in the country from 7.2 per cent in FY2005-06 to 7 per cent in the current fiscal and 6 per cent in FY2007-08.
ADB economist Rezaul Karim Khan, however, could not specify any tolerable rate of inflation, though he said, ‘The perception of inflation is always higher in Bangladesh.’
‘The forecasts assume that the government will undertake policy adjustments to boost foreign exchange reserves, such as more flexibly managing the exchange rate, encouraging greater remittance inflows, and reducing anti-export bias in trade policy,’ the bank opined in its flagship report.
Its country director, Hua Du, lauded Bangladesh’s economic performance but emphasised the need for the government to take quick decisions on the pending foreign investment proposals including the one made by Tata Group if it wanted to see the ‘much-needed capital inflow’ bounce back from the decline in 2006. According to the report, Bangladesh’s shortcomings in key infrastructure like power, ports, railway, and roads are serious hindering the export growth, investment, and opportunities for transport integration with its neighbours.
The country’s prime seaport in Chittagong is plagued by various problems, such as low productivity and weak management, the report said while Rezaul Karim reiterated the bank’s prescription to contract out the port services.
Yet, the report pointed out, the economic expansion in substantial remittances by expatriate Bangladeshi workers.Bangladesh had been underpinned by private consumption and investment spurred by
South Asian economy is expected to post a moderate growth of 7.7 per cent in 2007 and rise slightly to 8 per cent in 2008, the report said. The services sector, supported by an accelerated growth in manufacturing, is expected to drive the region’s economic growth, it added.
The regional economy expanded by 8.7 per cent in 2006 supported by a growth in consumption and investment. South Asian economy has averaged more than 7.5 per cent growth since 2003 that saw reduction in poverty levels in India, Pakistan, and Bangladesh.
‘South Asia’s recent economic performance shows it has emerged as a new growth pole in Asia,’ observed Ifzal Ali, the chief economist of the bank. ‘The region can match East Asia’s exemplary growth rates, albeit from a lower base.’
Every economy in the region posted a growth of more than 6 per cent in 2006, except Nepal due mainly to political unrest.

Source:http://www.newagebd.com/front.html#16

Thais may relocate textile, RMG units to Bangladesh
MCCI lists potential investment areas to the visiting team
Star Business Report

Considering abundant and cheap labour and low cost of infrastructures as well as a congenial investment climate in Bangladesh, Thailand has expressed interest to relocate its textile and ready made garments (RMG) industry here.
Thailand is also eager to invest in the energy sector.

"Thai entrepreneurs are looking for other investment destinations to expand or relocate their textile and RMG industry. To this end, Bangladesh could be a potential destination for them," Vittaya Praisuwan, executive adviser of Thai Board of Investment, said addressing a discussion organised by Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka yesterday.

Praisuwan is leading a 15-member Thai delegation.

He said the Thai investment board recently organised a seminar on 'promoting Bangladesh towards Thai investors' in Thailand where a number of entrepreneurs attended.


Going back o Thailand, they will let the Thai entrepreneurs know about investment opportunities in Bangladesh and pursue them to come here, he said, adding that a delegation comprising only textile and RMG entrepreneurs from his country will visit Bangladesh very soon.

Speaking at the function, Thai Ambassador in Dhaka Suphat Chitranukroh said Thailand is very much experienced in energy sector, especially in gas exploration. Referring to a memorandum of understanding (MoU) signed between Petrobangla and a Thai company to conduct a study on energy exploration, he said, "We can help Bangladesh in this sector."

The Thai envoy said their entrepreneurs are interested in extending their cooperation in hotel services here.


Mingpant Chayavichitsilp, president of Thai-Bangladesh Business Council, said many Thai entrepreneurs want to expand their industries and they are looking for new places for setting up those either in joint venture or in 100 percent ownership.


Pointing to the fact that the Thai businesspeople have to make their consignment of goods from Bangkok through Singapore, which is very costly and time consuming, he said,"It would have been less costly if they could make consignment from Bangladesh as the country has its own ports such as Chittagong Port," he observed.

"It is a right time to do something here," he said, adding that Bangladeshi businessmen can also come forward to invest in Thailand.


In his welcome speech, MCCI President Latifur Rahman said investments in sectors like textile, leather, paper and pulp, energy, telecommunications, tourism, healthcare, agro-based and agro-supporting industries have excellent prospects.


"Leather processing and leather products are also a potential area of investment as Bangladesh has established itself as a source of quality leather and footwear," he said.


Terming Bangladesh one of the lowest consumers of energy, he said with the growth of the economy, the demand for energy is going up by over 800MW annually. "The projected demand is due to reach 5000MW by the end of the current year. This will require US$ 5-7 billion investments in generation and distribution of electricity. So the Thai government or entrepreneurs will find attractive opportunities in energy generation and distribution," Rahman said.


The MCCI chief said the infrastructure sector also provides wide opportunities. "Ports, railways, transport and communications can be of immense profit to Thai investments," he said.


In addition, he said, investments in areas like hand-tools, electronics, LPG cylinder, surgical instruments and computer software can be profitable.


Among others, Rafiqul Islam, managing director of Pragati Insurance Ltd, and Kamran T Rahman, deputy managing director of Pubali Jute Mills Ltd, spoke at the function.

Source:http://www.thedailystar.net/2007/03/29/d70329050162.htm

Bangladesh will become an economic masterpiece Inshallah now that the corrupt are being arrested.

BEPZA signs $402m investment deals with 37 firms

Bangladesh Export Processing Zones Authority has signed deals with 37 firms during the last eight months of the current fiscal 2006-07 which will bring 402 million US dollar in investment in different EPZs.

This amount is 306 per cent higher than that of the corresponding period of the previous fiscal when the investment volume was 99 million dollar.

The stocktaking of the investment scenario in the country’s export-processing zones took place at the 25th meeting of the BEPZA Board at its office on Thursday with chief adviser Fakhruddin Ahmed in the chair.

BEPZA executive chairman Brig Gen Ashraf Abdullah Yusuf informed the meeting that the workers and staff salary and other allowances of different firms in the EPZs have annually increased by Tk 225 crore due to full-fledged compliance with the BEPZA instructions.

Besides, the BEPZA has started a training programme for the workers with a theme and spirit that ‘EPZs of Bangladesh are the sources of skilled manpower’.

He said that initially this programme was launched in Dhaka and Chittagong EPZs.

The BEPZA chief also said that in the last eight months, 252 operating enterprises have increased investment by US$ 104 million, 46 per cent higher compared with the last year. The amount was 71 million dollar in the eight-month period in the fiscal 2005-2006.

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

Shipbuilding firms get foreign orders
Rafiq Hasan, back from Chittagong

Some local ship building companies are receiving orders worth millions of dollars from foreign buyers for large ocean-going ships as they are diverting orders from developed East Asian countries to labour intensive developing countries like Bangladesh.
Ship building industry sources said since countries like South Korea and Singapore are becoming less interested in building such ships, European buyers are now coming to Bangladesh, China and India.


Bangladesh can be a major builder of large ocean-going ships if the government allows duty free import of steel, the basic raw material for ship building industry, they say.

Duty free import of steel can be allowed against a bond system that the material would be used only for export purposes, and it would create scope for huge export orders facilitating use of the country's cheap labour force, experts noted.

"We have world class expertise and skilled labour force for ship building. The only requirement now is government's policy support. If given, this sector can earn billions of dollars of foreign currency every year," said one expert.

These days European buyers are frequently coming to visit ship building plants in Chittagong and place orders for ocean-going ships," said Sakhawat Hossain, managing director of Western Marine Shipyard Ltd.
"European buyers are showing keen interest in the development of ship building industry here, and this would help harness our cheap labour force," he added.

The plant received an order worth $11 million for a 2,600-tonne capacity ship recently. Buyers visited the plant and confirmed the order for the multi-purpose vessel, according to plant sources.


Besides, negotiation is going on for building a tug vessel at a cost of $ 4.5 million. A Singaporean buyer visited the plant and expressed satisfaction. The deal might be finalised within a couple of weeks, the source said.

Earlier, Ananda Ship Builders at Meghna Ghat got foreign orders for cargo ships worth $10-12 million.

Another company, Karnaphuli Ship Builders, built a number of tugboats named Kandari for Chittagong Port Authority (CPA). Previously, such boats used to be imported from Denmark. The company also repaired several large ships belonging to Bangladesh Shipping Corporation (BSC).

"Many ships built here are of international standard because those are built under the supervision of International Classification Society and also under the guidance of the government's Mercantile Marine Department," said Captain Habibur Rahman, principal officer of the department.

It is not a difficult job for local experts to build large ships on the basis of plans and drawings provided by foreign buyers, he mentioned.


Experts pointed out that ship building in East Asian countries has become costly due to high wages of workers. The industry is gradually shifting towards developing countries mainly for availability of cheap labour force.

Vietnam is now one of the main destinations of foreign ship buyers. But all ship building plants in that country have been booked until 2010. This sector developed in Singapore with labour force from Bangladesh.

Around 80 per cent of workers in Singapore ship building industry are from Bangladesh, said the owner of a local ship building plant who visited Singapore plants in the sector several times.

Expansion and development of this industry in Bangladesh is being impeded due to high cost of importing raw materials, industry sources say. "The sector can flourish rapidly and generate huge employment if the government allows back to back letter of credit (L/C) system for importing steel," Sakhawat Hossain said.

Local ship building plants are mainly in private sector and located on the banks of the Karnaphuli in Chittagong and the Meghna in Narayanganj.

A vessel named Keari Sindabad that plies between Teknaf and coral island Saint Martin's carrying tourists, and another vessel -- Sarina Cruise -- used for river cruise of foreign guests at hotel Sarina, show the standard of locally built ships.

Source:http://www.thedailystar.net/2007/04/01/d7040101075.htm

Growths in Export, Remittance
BoP surplus reaches $360m in Jul-Jan
Star Business Report

Despite slow foreign direct investment (FDI) and foreign aid, the country's overall balance of payment (BoP) surplus reached $360million in the first seven months of the current fiscal, thanks to continued export growth and huge remittance inflow. The BoP was $11million deficit in the same period last year.

FDI reached $285 million in the same period this fiscal, registering a 33 percent drop, while the amount was $425 million during the same period of the 2005-06 fiscal.


However, portfolio investment has increased up to 44 percent in the 2006-2007 fiscal, amounting to $23 million. In the last year, during the same period the amount accumulated to $16 million.


Meantime, foreign aid also marked a 44 percent fall as fourteen out of many development partners did not disburse any aid to Bangladesh in the first seven months this fiscal.


Besides, there was no aid disbursement from a number of Aid Club donors due to political instability here and lack of reforms deemed necessary to curb corruption and improve governance.

Bangladesh received $445 million in foreign aid in July-January this fiscal, while it was $790 million in the corresponding period of last fiscal, according to the Economic Relations Division (ERD).
Remittances jumped by 27.55 percent in the July-February period compared to a year earlier to reach $3.82 billion. The surge resulted from the increased use of official channels by Bangladeshis abroad to send their money home.


However, the trade imbalance has gone up to 6.69 per cent this fiscal as imports surpassed exports. Trade imbalance recorded a larger deficit of US $ 1.87 billion during July-January in FY 2006-07 compared to the deficit of US$ 1.49 billion during the same period in FY 2005-06.


The July-January exports fetched $7.03 billion, growing at around 21.36 percent. The earning from exports in the same period last fiscal was $5.8 billion.

Imports in July-January this fiscal increased 22.07 percent to reach $9.79 billion against $8.02 billion in the same period of FY2006.


Despite larger deficits in services and income, current account balance posted a surplus of US$245 million during July-January in the 2006-07 financial year, down from US$321 million during the same period in the 2005-06 fiscal.

Source:http://www.thedailystar.net/2007/04/01/d70401050157.htm

Exports grow 21.13pc in eight months

The country's export earnings grew by 21.13 percent to $8023.87 million in the first eight months of the current fiscal year (2006-07) compared to $6624.21 million of the corresponding period of the last fiscal.

EPB officials said the considerable export growth was mainly due to the technical support provided for export diversification and cash incentives offered to the exporters. The EPB has fixed the total export target at $12,50 million for the current fiscal.

According to Export Promotion Bureau (EPB) figures released yesterday, exports fetched $8023.87million in the July-February period, registering a surplus of $53.87 million against the target of $7970 million fixed for the period.

Earning from woven garments was $3113.83 million during the period against $2615.48 million of the corresponding period of the last financial year, showing a 19.05 percent export growth. The earning was 5.03 percent up over the target.

However, knitwear sector fetched $2980.01 million against the target of $3089.81 million during the eight-month period, leaving a shortfall of 3.55 percent. Fazlul Haque, president of Bangladesh Knitwear Manufacturers and Exporters Association, attributed this shortfall to the labour unrest in garment factories in May last year.

Woven garments apart, earnings from frozen foods, home textiles, footwear, petroleum byproducts, ceramics, handicrafts, cut flowers, agro-processed goods and engineering products also registered significant rise, contributing to the overall export growth. All these products also exceeded the export target set for the period.

On the other hand, leather, tobacco and vegetables failed to achieve the export target during the period, but performed better compared to the corresponding period of the previous fiscal.

Earnings from jute goods, chemical fertiliser, textile fabric, bicycle, raw jute, tea and electronics saw a downtrend over the last fiscal's corresponding period, and also failed to meet the export target fixed for the eight-month period of this fiscal.

http://thedailystar.ws/2007/04/23/d70423050262.htm

^^ Good news, hope the trend continues. I think it is now time to seriously diversify beyond garments. The governement should identify a number of products other than textiles in which we could be serious competitors, and invest heavily to promote their export.

In a recent global warming paper from the new york times i read about the US collatering with other countires to find other energy sources besides fossil fuels. turns out their research provided that fibrous crops like wheat, and they specifically mentioned "jute", could be possibilities to harness for ten times the energy output we have today. one day jute will be an economic powerhouse for bangladesh again.

Forex reserve may cross $4.5b mark by week-end

The country's foreign exchange reserve is likely to cross US$4.50 billion mark by the end of this week due to increase in the inflow of foreign funds in the market.

Besides, the Bangladesh Bank (BB) may receive $45.00 million from the World Bank within this week as soft loan for development of the railway sector.

"We are hopeful about receiving the fund from the World Bank soon," a BB senior official told the FE Monday, adding that the foreign exchange reserve will increase further in the near future.

The foreign exchange reserve stood at $4.42 billion Monday from $4.38 billion of the previous day due to robust growth of inward remittances, sources in the central bank said.

Bangladesh received $4.36 billion as remittances during the July-March period of the current fiscal against $3.47 billion in the same period of the previous fiscal.

Currently, the central bank is closely monitoring the foreign exchange market to keep the rate of the local currency stable against the US dollar that is essential for ensuring the inflow of remittances.

During first two weeks of this month, the BB purchased over $60 million from the commercial banks to help keep their 'net open position (NOP)' within the required limit, the sources added.

The US dollar slightly gained against Bangladesh Taka (BDT) Monday in the inter-bank foreign exchange market, treasury officials said.

The banks quoted the dollar rate at Tk 69.10-Tk 69.13 on the day against Tk 69.08-Tk 69.10 of the previous day in the market.

The nationalised commercial banks (NCBs) sold dollar at Tk 69.40 to the importers, private commercial banks (PCBs) made deals at Tk 69.20-Tk 69.60 and foreign commercial banks (FCBs) quoted Tk 69.40-Tk 69.55.

However, the US-based Citigroup projected that the local currency is likely to remain weak against the US dollar to average Tk 70.25 in fiscal 2006-07 and Tk 73.80 in fiscal 2007-08.

"….we believe that keeping in mind the inflation differentials, to maintain export competitiveness, the Taka will be on a steady depreciation path and expect the Taka to average 70.25/US$ in FY07 and 73.80 in FY08," the group said in a report.

http://www.financialexpress-bd.com/index3.asp?cnd=4/24/2007&section_id=1&newsid=59203&spcl=no

In a recent global warming paper from the new york times i read about the US collatering with other countires to find other energy sources besides fossil fuels. turns out their research provided that fibrous crops like wheat, and they specifically mentioned "jute", could be possibilities to harness for ten times the energy output we have today. one day jute will be an economic powerhouse for bangladesh again.


wow........thanks........that's a great news that Jute could produce such a strong level of energy. could you please provide us with the nytimes link? so we could learn more about it?

Reserve and Exports booming...thats truly great news!

Local shipyard to export 8 ships to Germany

A local leading shipyard will build eight ocean going vessels for two German shipping lines making a breakthrough in the country's ship building industry. The order is worth US$ 96 million.

Ananda Shipyard and Slipways Ltd (ASSL) signed separate contracts Thursday with Schiffahrtskontor Tom Woden GmbH and Co and Ernst Komrowki Holding KG in the capital to deliver the ships between 2009 and 2020.

ASSL managing director Afruja Bari, Schiffahrtskontor Tom Woden GmbH and Co director Klaus tom Worden and Komrowki Holding KG president Ernst P. Komrowski singed on behalf of the respective companies.

"The German companies entered into the contract with ASSL after their attempts in China had to be aborted. The Sino shipbuilding companies are over-booked with orders," Ernst Komrowki Holding KG director Ernst P. Komrowski told a press conference at the Dhaka Reporters Unity.

He added they were convinced of the ability of ASSL and availability of cheap labour force in Bangladesh. ASSL chairman Abdullahel Bari said this might be the single largest export order for any export-oriented sector.

Compared to the other exports, value addition is high in marine vessel export. Around 40 per cent will be value addition on the ships worth $96 million, he added.

ASSL becomes the country's only ship builders that had already exported two vessels to the Maldives and is now building two container ships and several other vessels for a Danish company and the government of Mozambique.

Among five export deals it has so far made, the latest ones with the German companies would give the ASSL a solid foundation to be recognised as a shipbuilder worldwide, Bari said.

Schiffahrtskontor Tom Woden GmbH and Co director Klaus tom Worden said this is a good challenge for Ananda to establish credibility, as the contracted vessels are heavy-duty ships.

"We will operate the ships in icy waters in the European region," he added.
ASSL will deliver six units to Schiffahrtskontor Tom Woden GmbH and Co and the rest to the other German company between 2009 and 2010. The carrying capability of four ships will be 325 twenty equivalent units (TEUs) and the rest will be able to carry 251 TEUs.

ASSL has nearly 700 labourers and 126 naval architects and engineers employed in its yard situated at the bank of the river Meghna. Following the latest contracts, it will double its existing manpower, said Bari.

Bari also expressed the hope that many other local companies would follow suit and establish shipyards in the country if the government declared it a thrust sector and provided adequate facilities for importing materials.

http://www.financialexpress-bd.com/index3.asp?cnd=4/27/2007&section_id=1&newsid=59505&spcl=no

Tk 40m offered for DSE membership

The value of a Dhaka Stock Exchange (DSE) membership has been offered at Tk 40 million, the highest ever in the history of country's stock market.

Akij Group offered the costliest price ever known in the DSE's 53 years of history.

The Akij Group's premier offer was disclosed Thursday when the DSE opened the bidding for selling three membership.

DSE sources said Popular Life Insurance and Shahjalal Islami Bank were the other two top bidders to purchase the DSE membership.

"We will soon approve the 'amazing rate' in our next board meeting," one DSE director said.

Earlier DSE sold three memberships at the rate of Tk 23.60 million each in mid-August of 2006.

Islami Bank Bangladesh Ltd (IBBL) bought one DSE membership during the period.

The DSE floated a tender late last month to sell three forfeited memberships. Five institutions including Brac Bank and Amin Mohammad Foundation took part in the bidding.

The country's main bourse earlier sold one membership at a cost of Tk 15.58 million in 2005.

DSE sources said DSE sold the membership to finance the cost of DSE Tower, now being constructed at Nikunja near Zia International Airport.

Market operators said the Akij Group offer to buy the DSE membership at such an 'incredible price' is very much in line with the recent dominance of institutional members in the DSE trading.

http://www.financialexpress-bd.com/index3.asp?cnd=4/27/2007&section_id=1&newsid=59498&spcl=no

Forex reserves head for $5b mark

country's foreign exchange reserves, spurred by proceeds from the Rupali Bank sale and the fourth installment of development support credit from the World Bank, could touch the $5 billion mark in the near term, a central bank official said, reports bdnews24.com.

A consistent increase in remittance inflows and export earnings pulled the foreign exchange reserves up to $4.43 billion Thursday, the highest ever position in Bangladesh's history. Forex reserves recorded over $4.2 billion in early April.

"We can attain a $5 billion reserve after getting payments from Rupali Bank sale and receiving DSC from the World Bank," Bangladesh Bank deputy governor Kazemi told news agency.

Bangladesh is likely to get the fourth tranche of DSC from the WB by June this year, said a WB economist in Dhaka following a review on the progress of government's reform agenda under the credit line.

The government will also get $458 million from the Rupali sales deal. A Saudi prince has offered $458 million for 94 per cent government stakes with Rupali, the smallest state-run bank.

Kazemi, optimistic about the current trends of increased remittance inflows and export earnings said that remittance inflows till April 19 reached $380 million.

Total remittance inflows in July-March of the current fiscal year climbed over 25 per cent to $4.36 billion from $3.47 billion a year earlier.
Export earnings in eight months up to February increased 21.13 per cent to $8023.87 million in the current fiscal from $6624.21 million in the same months a year ago.

http://www.financialexpress-bd.com/index3.asp?cnd=4/28/2007&section_id=1&newsid=59569&spcl=no

5 billion..thats great news!We had like less than 1 billion five years ago.

I know I posted this news earlier but it's worth mentioning twice.

Bangladesh wins 100 million dollar ship contract in boost to industry

Bangladesh’s main shipbuilder said on Saturday it had won a 100-million-dollar contract to build eight vessels, a deal seen as helping pave the way for the nation to emerge as a major shipbuilder.

Shipbuilding officials and local media said the contract was the impoverished South Asian nation’s single biggest export order.

Ananda Shipyards Shipways Ltd (ASSL) signed the joint deal with two German companies earlier this month to build eight ships with capacity for 325 containers by June 2010, company chairman Abdullahel Bari told AFP.

“This is the single biggest export order for Bangladesh and it will go a long way to making the country a major world shipbuilding nation,” Bari said.

Government officials could not be reached for confirmation on whether it was Bangladesh’s biggest export order as offices were shut for the weekend.

Bangladesh has become a new destination for companies seeking construction of small ocean-going vessels as traditional shipbuilding nations such as South Korea and China now focus on building large ships.

Schiffahrtskontor Tom Woden GmbH and Co and Ernst Komrowki Holding KG signed the deal with ASSL after inspecting its facilities on the river Meghna and failing to find any shipbuilder willing to construct ships for them in China.

“They’re convinced we can build ships and deliver them on time. We have enough skilled workforce,” said Bari, adding he planned to double his 700-strong workforce to fill the order.

The company has invested heavily in equipment in the past few years.

With the new deal “we have orders worth 125 million dollars. We will hand over two ships to a Danish company by year-end. We’re also in talks with a Dutch company to build 22 ships for them,” Bari said. “We’re now swamped with orders,” he said.

Announcement of the deal comes after Western Marine, another shipbuilder in the southeastern port city of Chittagong, last week clinched an 11-million-dollar order to build a tugboat for a Singapore company.

Riverine Bangladesh has been known for its small ferry-making industry since its independence in 1971. Most of the country’s nearly 3,000 ferries were made in the country’s shipyards.

Bangladesh’s more than one dozen shipbuilding yards employ some 20,000 workers but officials say they can ramp up production and manpower quickly.

Expert said it was only a matter of time until Bangladesh emerges as a major hub for building small ocean-going ships.

“The country has always had enough skilled and cheap workforce. Now it has the know-how and facilities,” said C.F. Zaman, Bangladesh head of worldwide ship inspection agency Germischer Lloyd.

“I can easily foresee local shipbuilding emerging as a billion-dollar industry in four to five years’ time. It can easily be a global leader in the small-ship making industry.”

ASSL chief Bari said the industry even had the potential to dwarf the country’s garments sector, the biggest export earner.

“It took us 25 years to earn 10 billion dollars a year in the garments sector. The shipbuilders can do it in less than 10 years,” he said.

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2007/April/business_April695.xml&section=business&col=

GDP growth in FY '08 to be projected at 7.0pc

Finance Adviser AB Mirza Azizul Islam dismissed Sunday any constitutional controversy over the presentation of the national budget for the fiscal 2007-08.

"An ordinance promulgated by the President to this effect will do," the finance adviser told reporters at the end of a meeting of the Resource Committee at his secretariat chamber.

"This year's budget will be placed in a changed situation and will be approved by a presidential ordinance" he said.

The committee discussed the revenue collection trend of this fiscal and ways of increasing revenues in the next fiscal.

This is for the first time a caretaker government is going to present a full-fledged national budget in absence of the national parliament.

Prof. Wahiduddin Mahmud, who was adviser in-charge of the finance ministry under the 1996 caretaker government, placed a budget for three-months and late President Ziaur Rahman placed a full-fledged budget outside parliament in 1977.

The President under Article 93(3) of the constitution is empowered to promulgate an ordinance authorising expenditure from consolidated fund, "whether the expenditure is charged by the constitution upon that fund or not."

bdnews24.com adds: "This year's revenue growth will near 12 percent," Islam said. "The growth rate hovered around 9.0 percent in the last nine months."

The BNP-led alliance government projected revenue growth of about 21 percent for the current fiscal year, which the finance adviser dubbed as an ambitious target.

The adviser however hoped the revenue growth would increase significantly in the next fiscal year due to the caretaker government's anti-graft drive, a finance ministry official who was present at the meeting told the agency, asking not to be named.

In the nine months to March, revenues earned by the national exchequer recorded Tk 250.52 billion, an increase of only 8.5 percent from the last fiscal year, according to NBR statistics.

The target for the nine months was about Tk 308 billion.

Islam said the government would try to specify budgetary allocations on a regional basis to make public spending transparent.

The adviser indicated that subsidies for agriculture might be increased in the next budget.

UNB adds: The finance adviser said that for the next fiscal year the government would project GDP growth at 7.0 per cent and inflation at 6.5 per cent.

"Taking those into consideration, we will try to increase the revenue-GDP ratio and expand the revenue after counting foreign resources and deficit financing," he told reporters.

From the meeting the government has decided to expand the Implementation Monitoring and Evaluation Division (IMED) website to infuse transparency in public expenditure.

"There is an allegation that government did not maintain balance in public expenditure in different regions of the country. On the IMED website we will put all the information about the expenditure region-wise and people will monitor the expenditure," he said.

He also apprised that there would be a window in the website for the people concerned to put in their views-one of the measures being taken to bring pecuniary probity in spending people's money.

http://www.financialexpress-bd.com/index3.asp?cnd=4/30/2007&section_id=1&newsid=59793&spcl=no

Whatever happened to the plan to build a deep sea port in bangladesh?

This is really great news!Already we have a current account surplus of over .5billion US dollars,if this forecast is right,I wonder how high it would hit...


Flow of remittances, RMG earnings to hit $26 b
By Shahidul Islam
Sun, 15 Apr 2007, 13:39:00


With a steady growth of export earnings by the RMG sector and the inflow of remittances, the country's foreign currency earning by the two major sectors is expected to cross US $26 billion in next three years in 2010.

The newly elected leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) announced that they would double the RMG (readymade garment export) to US$ 16 billion in next three years from the present US $8 billion.

While senior officials of Bangladesh Bank yesterday forecast that the inflow of remittances would reach US $10 billion a year in the next three years.

"It is our challenge to double the export earnings and it is possible to win subject to the government's policy support," BGMEA President Anwar-Ul-Alam Chowdhury Parvez told journalists recently.

"We hope the government will play a vital role in this regard," Parvez said, expressing their strong confidence to achieve the target despite the downside risks of eliminating EU and USA's quantitative restrictions on China by the end of 2007 and 2008 respectively.

He said major issues included simplification of customs procedure, improving efficiency of Chittagong port, banking policy reforms in consistent with the global practice, setting up a compliant garment village, rehabilitation of sick industries, relaxing the GSP rules of origin, trying to get zero-tariff access to USA market and deriving benefit out of WTO.

Meanwhile, the country expects expatriate workers to send home US $5.5 billion in the current fiscal (2006-2007) year, ending in June.

The flow of remittances rose to US $4.36 billion in the first 9-month (July-March) of the current financial year.

Remittances rose nearly 25 percent to a record $4.8 billion in 2005-06

making the money sent home by some 4.6 million expatriate workers, the second biggest source of foreign income for Bangladesh behind the US $8 billion earned from textile exports.
"It is not unlikely that remittances inflow can reach US $10 billion over the next three years" said Deputy Governor of Bangladesh Bank Allah Malik Kazemi while talking to journalists.
To ensure that remittances flow in through official channels Bangladesh Bank, the central bank, has expanded drawing arrangements working with 35 local banks and 380 foreign banks and exchange houses.

It has also stepped up monitoring and supervision of banks and the review of statements received from foreign banks and exchange houses.

The inflow of expatriates' money had contributed to keeping up Bangladesh's foreign exchange reserve, Kazemi said, adding that the central bank was also buying dollars to strengthen the reserve position.

"In case of a shock from international fuel price hikes or natural disaster we will be able to face that if we have a strong dollar reserve," he added.

The majority of Bangladeshis work in the Middle East, the United States, EU countries, Malaysia, Japan and Singapore.

Source:http://nation.ittefaq.com/artman/publish/article_35346.shtml

Local firm wins $4.25m order to build tug boat for Singapore
Bond system to spur shipyards growth suggested

A Bangladeshi shipyard has won a $ 4.25 million order to build a powerful tug boat for a Singapore based company, again testifying to the potential of the local ship building industry at a time when Chinese and South Korean yards are losing interest in producing small ocean-going vessels.

A formal agreement, worth around Tk 30 crore, was signed between the Western Marine Shipyard at Chittagong and Maroci Lines Private Limited of Singapore to construct the 4,800 horse power anchor handling tug supply vessel, sources said.

Managing Director of Western Marine Shipyard Sakhawat Hossain signed the agreement during a meeting in Singapore on April 27. The tug will be constructed in one year with the internationally renowned classification society Germanscher Lloyd supervising the construction work.

The same company earlier won an order worth $11 million to construct a 26,000 tonne capacity ship for a buyer in Europe and last month Ananda Shipyards Shipways (ASSL) at Meghnaghat received an export order from German companies of around $100 million for constructing eight ships.

Bangladesh has become a new destination for companies seeking construction of small ocean-going vessels as traditional shipbuilding nationals, such as South Korea and China, are now focusing on bigger ships.

Talking to The Daily Star, Sakhawat Hossain said the ship builders were also looking for new construction places, as South Korea, China and Vietnam have no capacity to take new orders. All the shipyards in those countries are fully booked until 2010, he said.

At least one hundred such orders are waiting now in Singapore, he told The Daily Star saying that only a few orders are arriving in Bangladesh as the country lacks large-scale ship building facilities.

The government's tight export-import policies are also a major barrier for a flourishing shipbuilding industry in the country, he said.

"If the government provides back to back letter of credit facilities to the ship building industries, hundreds of shipyards would be set up in the country within a few years earning billions of dollars of foreign currency," he said.

Steel is the main raw materials for shipbuilding on which the government charges 40 per cent custom duty. As a result, building a ship here becomes costlier, he said.

In order to develop shipyards and provide employment to thousands of workers, the government can provide facilities under a bond system as is being done in the garments sector, Sakhawat said.

http://www.thedailystar.net/2007/05/03/d70503050153.htm

Remittance jumps to $4.86b
in 10 months
Sheikh Shahariar Zaman

http://i78.photobucket.com/albums/j98/mirzazeehan/sourceofremi.jpg

Remittance inflow jumped 25 per cent to $4,861 million during the July-April period of the current fiscal, with blue-collar workers accounting for more than half, Bangladesh Bank statistics revealed.
About 4.5 million expatriates sent this amount home during the first 10 months of the 2006-07 fiscal, surpassing the last fiscal year’s total of $4,801 million and surging foreign exchange reserves to $4,516 million on Monday. The highest amount came from Saudi Arabia as over a million workers sent $1,312 million during July-March period.
The United Kingdom came out as the second biggest source of remittance with Bangladeshi Diaspora sending home $657 million to their relatives at home, closely followed by $656 million from the United States of America. Non-resident Bangladeshis remitted $559 million from the United Arab Emirates and $494 million from Kuwait.
Remittance inflow increased gradually over the years due to strong monitoring system of Bangladesh Bank, quicker services provided by the local banks and stable foreign exchange rates, said a central bank official.
He said more foreign exchange came from the Asian countries with concentration of blue-collar workers.
About $2,741 million came from the Middle East and adjacent countries, the statistics revealed.
So far, the central bank gave licence to 635 exchange houses to set up offices in the foreign countries to facilitate inward remittance.
Local banks, which have either opened exchange houses abroad or developed linkages with foreign banks, have quickened delivery of money at home, now taking maximum 72 hours to reach the recipients anywhere within the country.

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

Are the largest ship yards located in Chittagong Division? I thought they were located in Khulna.

Remittance jumps to $4.86b
in 10 months
Sheikh Shahariar Zaman

http://i78.photobucket.com/albums/j98/mirzazeehan/sourceofremi.jpg

Remittance inflow jumped 25 per cent to $4,861 million during the July-April period of the current fiscal, with blue-collar workers accounting for more than half, Bangladesh Bank statistics revealed.
About 4.5 million expatriates sent this amount home during the first 10 months of the 2006-07 fiscal, surpassing the last fiscal year’s total of $4,801 million and surging foreign exchange reserves to $4,516 million on Monday. The highest amount came from Saudi Arabia as over a million workers sent $1,312 million during July-March period.
The United Kingdom came out as the second biggest source of remittance with Bangladeshi Diaspora sending home $657 million to their relatives at home, closely followed by $656 million from the United States of America. Non-resident Bangladeshis remitted $559 million from the United Arab Emirates and $494 million from Kuwait.
Remittance inflow increased gradually over the years due to strong monitoring system of Bangladesh Bank, quicker services provided by the local banks and stable foreign exchange rates, said a central bank official.
He said more foreign exchange came from the Asian countries with concentration of blue-collar workers.
About $2,741 million came from the Middle East and adjacent countries, the statistics revealed.
So far, the central bank gave licence to 635 exchange houses to set up offices in the foreign countries to facilitate inward remittance.
Local banks, which have either opened exchange houses abroad or developed linkages with foreign banks, have quickened delivery of money at home, now taking maximum 72 hours to reach the recipients anywhere within the country.

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

I am sure its even higher than that. Lot of the money sent by expats go through unofficial channels hence are not accounted for. For example my parents send money to bangladesh regularly yet most of the time, its sent through other people going into Bangladesh. The real amount could even be a billion more than the official value.

I am sure its even higher than that. Lot of the money sent by expats go through unofficial channels hence are not accounted for. For example my parents send money to bangladesh regularly yet most of the time, its sent through other people going into Bangladesh. The real amount could even be a billion more than the official value.

According to a report I read few weeks ago,the total amount(including the unofficial remittance) is about 7 billion US dollars.

^^ I agree wit mirza bhai... total remittance is a lot higher than official figure... and in my opinion, most of these are remitted by un-skilled or semi-skilled low income group working all over middle-east and south-east or east asia. These people earn very little but save the whole thing pretty much and send home to support their family... I admire them so much.. they were keeping our economy running while corrupt politicians and opprtunist people looted their hard earned money... now I can hope that it might change by a political revolution in our country.

Growing confidence of
investors pulls DSE
Market cap crosses Tk 40,000 crore mark
Sadat Sayem

Growing investors’ confidence pushed up stock prices and average turnover significantly on the Dhaka Stock Exchange in the last week.
Amid a rally, market capitalisation on the prime bourse on Thursday crossed Tk 40,000 crore mark, the highest ever at the country’s stock market.
‘Investors made huge demand for shares in the last week as their confidence level increased recently,’ said Abu Ahmed, professor of economics of Dhaka University and a stock market expert.
Ahmed, also former chairman of state-owned Bangladesh Shilpa Bank, said, ‘A number of factors including the announcement of good corporate results and perceived ease down of political tension have brought the investors back to the trading floor in larger number.’
The market expert said investors’ move helped the market to come out from downtrend for months adding ‘more good quality government or private companies’ shares should be offloaded and floated soon to sustain the uptrend.’
The daily average turnover on the DSE increased by 66.67 per cent to Tk 72.74 crore in the last week from the previous week’s Tk 43.64 crore.
The three-day last week saw trading of Tk 218.22 crore while it was also Tk 218.22 crore for the previous week which had five trading days.
The DSE general index gained 44.76 points or 2.61 per cent in the last week to close at 1762.36 on Thursday, while the blue chips index, DSE20, advanced by 54.38 points or 3.98 per cent to close at 1419.66.
Total market capitalisation stood at Tk 40,452 crore on Thursday, while the figure was Tk 39,113 crore on the closing day of the previous week.
DSE vice-president Sharif Ataur Rahman said the market went up amid increased participation of the investors.
Sharif, also the managing director of SAR Securities – a brokerage house, said, ‘Investors made increased demand for the shares of companies with good fundamentals to avail lower prices of the stocks after the months of downtrend.’
A total of 14 companies declared dividends during the last week, DSE statistics shows.
The Power Grid Company Bangladesh topped the turnover leaders with total sales of Tk 24.91 crore which was 11.41 per cent of the total turnover of the bourse last week.
Other turnover leaders were BRAC Bank, Summit Power, Prime Bank, Southeast Bank, Dhaka Electric Supply Company, Shahjalal Islami Bank, Exim Bank, UCBL and Agni Systems.
The top ten leaders accounted for 53.39 per cent of total turnover of the bourse last week.
Information Services Network topped the gainers of the week with 25.15 per cent rise in its share prices while Beach Hatchery was the worst loser witnessing 14.29 per cent fall.

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

Dhaka to sign Trans-Asian railway deal
Unb, Dhaka

The Council of Advisers at its meeting yesterday approved a proposal for signing the inter-governmental agreement on Trans-Asian Railway Network.

The objective of the deal is to develop transport communications in Asian and its surrounding countries, gradually connecting the European countries with the trans-border railway, which will enter Bangladesh from three directions in the west and get out through a single gateway on the eastern front.

The meeting asked the foreign ministry to take necessary steps to sign the treaty, according to Chief Adviser's Press Secretary Syed Fahim Munaim.

The three routes passing through Bangladesh under the treaty are 1) Gede (West Bengal, India)-Darshana (Kushtia, Bangladesh)-Iswardi-Jamuna Bridge-Joydevepur-Akhaura-Chittagong-Dohazari-Gundhum-Myanmar, 2) Singabad (West Bengal)-Rajshahi (Bangladesh)-Iswardi-Jamuna Bridge-Joydevpur-Akhaura-Chittagong-Dohazari-Ghundum-Myanmar and 3) Radhikapur(West Bengal)-Dinajpur-Iswardi-Jamuna Bridge-Joydevpur-Akhaura-Chittagong-Dohazari-Gundhum-Myanmar.

Eighteen countries, including China, Nepal, Iran and Indonesia, signed the deal in South Korea in 2006.

The deadline for signing the agreement by other interested countries was set from November 2006 to December 2008. The countries will have to ink the accord at the UN headquarters in New York.

Chaired by Chief Adviser (CA) Fakhruddin Ahmed, the meeting also discussed the option for modernising the Trademark Law that was enacted in 1940. "Now the law is not functionally acceptable in line with international guidelines," officials said.

A committee headed by the industries secretary was formed to prepare a draft of the Trademark Ordinance 2007 in line with the guidelines of the trade related aspects of Intellectual Property Rights and the World Intellectual Property Organisation.

The committee has been asked to submit the draft by June 30.

During the meeting, ways of making the government pension process easier and expediting its action were also discussed so that pensioners can get their annuity "timely and smoothly".

The CA directed the authorities concerned to take necessary action in this regard and urged the ministries to prepare separate lists of pensioners of the respective ministries.

Members of the Council of Advisers, the cabinet secretary and the secretaries concerned attended the meeting at the CA's office.

Dhaka agrees to negotiate tri-nation gas pipeline


Bangladesh is agreed to negotiate the much-talked-about tri-nation pipeline passing through the country''s territory for transmission of gas from Myanmar into India-one of a priority option New Delhi is tossing to meet their huge energy needs, reports UNB.
"We agree to negotiate for allowing the pipeline if Myanmar sells gas and India agrees to buy…We''ll obtain best possible advantage through negotiations-we''ll get revenue," Foreign Affairs Advisor Iftekhar Ahmed Chowdhury told reporters after return from Myanmar.
Iftekhar Chowdhury, who clinched a deal on cross-border road linking Dhaka and Yangon during the tour, said the tri-nation pipeline issue came up during his meetings with Myanmar leaders, including acting Prime Minister Lt. Gen. Thein Sein, in the Myanmar capital.
According to previous estimate, Bangladesh was to receive $ 100 million to $ 120 million as transmission charge or "willing charge" annually for the 950-km pipeline.
To install the pipeline, a sum of one billion US dollars was estimated to be invested--$ 650 million was to be invested in Bangladesh part.
However, the previous BNP-led alliance government put three conditions to allow the drawing of the proposed pipeline.
The conditions: Bangladesh''s passage to export its products to Nepal and Bhutan through India, reduction of Dhaka''s trade deficit with New Delhi and allowing the import of electricity from Nepal and Bhutan crossing over the Indian territory.
However, there had not been any fruitful negotiations between India and Bangladesh on the tri-nation pipeline. Consequently, Myanmar signed agreement with China to sell out its gas.
Recently, the issue of tri-nation gas pipeline again came up as a reference at the Delhi meeting on regional cooperation in energy sector.
India has also planned energy import from central Asia, passing through a long pipeline that proves expensive.

http://i152.photobucket.com/albums/s191/mdmasud/tarmap_latest_01.jpg

great work Masud! How does this tri-nation pipeline help Bangladesh?

great work Masud! How does this tri-nation pipeline help Bangladesh?

Bangladesh charges duties for gas transported through its territory which can be a large source of income for the country.

Whatever happened to the plan to build a deep sea port in bangladesh?

Isn't Chiittagong enough?

Btw, where will this new port be? Khulna?? :dunno:

Maybe I'm missing something here but does this trans-asian railway really have a point/future? Will countries in south, south east, and far east asia really be connected to europe by rail?? or is this some kinda trick to get bd to allow trains to pass through it?

I love the idea of a trans Asia railway network. Some day when (and if) the whole of Asia is peaceful and prosperous, it will make a great way to travel. Just like Europeans used to make a "Grand Tour" of Europe by rail, the same would be possible here.

Maybe I'm missing something here but does this trans-asian railway really have a point/future? Will countries in south, south east, and far east asia really be connected to europe by rail?? or is this some kinda trick to get bd to allow trains to pass through it?

It increases flow of people between countries and definitely will be a positive. What having transit passengeres through the country does is it adds to the local economy. When people pass through in trains the trains will make several stop overs. In these stop overs people will go out of the train, maybe stay at the place a day or two. Hence contributing to bangladesh.

^^ but Europe is tiny compared to Asia..and even then the high-speed rail network is most extensive in western europe.....how is rail service going to work with such great distances? it's not like we'll be able to afford super fast trains like the tgv or the shinkasen..

since we're on the topic of trains....whatever happened to the underground/subway/metro project for dhaka? is the CG government holding back the process? i guess that would be okay if they find a good consortium to take up the project, instead of some company that'd win the bid by bribing AL or BNP (whichever comes to power next).

^^ but Europe is tiny compared to Asia..and even then the high-speed rail network is most extensive in western europe.....how is rail service going to work with such great distances? it's not like we'll be able to afford super fast trains like the tgv or the shinkasen..

Actually you can already take the train from Europe to China and this service has been running for decades and is still used heavily. This kind of transport akes time, yes, but the type of people who take this is the type of people who do it for the experience. Most of the people in the trains will probably br from nearby asian countries but there will be a small amount from distant countries.

One would not necessarily have to travel from one end of Asia to the other. If, for example, there was good rail service between Sylhet and southeast China (through Myanmar), as suggested by the map on the last page, it would traverse some pretty spectacular unspoilt scenery.

Bangladesh charges duties for gas transported through its territory which can be a large source of income for the country.

There is no large sum. Amount India or India backed consortium Mohona holdings proposed was about $250 million/year. That amount Bangladesh can live without considering long term and strategic risk Bangladesh has to take. By hosting this pipe line Bangladesh will expose itself as target of NE indian insurgents who are fighting for independence from india. And for any reason if gas supply get disrupted because of price or any other dispute (like the case with Russian- Ukrainian pipe line) country importing gas will have excuse to interfere in Bangladesh. We should ask these questions before jumping for mere 250 million dollars. Bangladesh has come long way and remember if we can earn $6 billion from remittance then we can bring more than that $250 million from different source.

Besides, trade and transit happens in reciprocity basis. India wants energy transit. Yet when Bangladesh (for last 30 years) has asked for 22 km for energy and trade corridor to Nepal, India turned down Bangladesh request playing security and strategic risk. Bangladesh should consider security and strategic risk of pipe line in same manner.

There is no large sum. Amount India or India backed consortium Mohona holdings proposed was about $250 million/year. That amount Bangladesh can live without considering long term and strategic risk Bangladesh has to take. By hosting this pipe line Bangladesh will expose itself as target of NE indian insurgents who are fighting for independence from india. And for any reason if gas supply get disrupted because of price or any other dispute (like the case with Russian- Ukrainian pipe line) country importing gas will have excuse to interfere in Bangladesh. We should ask these questions before jumping for mere 250 million dollars. Bangladesh has come long way and remember if we can earn $6 billion from remittance then we can bring more than that $250 million from different source.

Besides, trade and transit happens in reciprocity basis. India wants energy transit. Yet when Bangladesh (for last 30 years) has asked for 22 km for energy and trade corridor to Nepal, India turned down Bangladesh request playing security and strategic risk. Bangladesh should consider security and strategic risk of pipe line in same manner.

250 million does sound like a small amount. On the other hand i don't think all your fears and reasons for not having the pipe is justified. First of all i doubt NE insurgents would attack the pipe since the pipe route is much farther south than where the conflict is taking place in assam. Secondly by attacking a Bangladeshi target the insurgents would face getting involved in an international conflict rather than a national conflict it is currently facing. Also we shouldn't pass up on an economic opportunity just to spite India. Also if there are any price conflicts it will be between Myanmar and India, not banlgadesh as bangladesh would just be a transit country. And also having a key pipeline running through bangladesh would give us a strategic advantage over India. The only grounds i can see for not having this pipeline is an environmental one. I would like to know more about the potential environmental risk this poses before seeing it implemented.

here are some photos of the Dhaka Export Processing Zone

http://img.photobucket.com/albums/v193/Bangladesh/dhakaepz2.jpg

http://img.photobucket.com/albums/v193/Bangladesh/dhakaepz.jpg

There is no large sum. Amount India or India backed consortium Mohona holdings proposed was about $250 million/year. That amount Bangladesh can live without considering long term and strategic risk Bangladesh has to take. By hosting this pipe line Bangladesh will expose itself as target of NE indian insurgents who are fighting for independence from india. And for any reason if gas supply get disrupted because of price or any other dispute (like the case with Russian- Ukrainian pipe line) country importing gas will have excuse to interfere in Bangladesh. We should ask these questions before jumping for mere 250 million dollars. Bangladesh has come long way and remember if we can earn $6 billion from remittance then we can bring more than that $250 million from different source.

Besides, trade and transit happens in reciprocity basis. India wants energy transit. Yet when Bangladesh (for last 30 years) has asked for 22 km for energy and trade corridor to Nepal, India turned down Bangladesh request playing security and strategic risk. Bangladesh should consider security and strategic risk of pipe line in same manner.


Those are some excellent points snoq...thank you for pointing them out. I agree with what you're saying. My beef isn't so much about the trade corridor with Nepal but the water-sharing agreements where we never get a fair shake. This has led to flooding and then prolonged dry periods where we've had famine. If we are going to allow anything of this sort, it shouldn't be in exchange for $250 million...it should be for something that we can really benefit from.

250 million does sound like a small amount. On the other hand i don't think all your fears and reasons for not having the pipe is justified. First of all i doubt NE insurgents would attack the pipe since the pipe route is much farther south than where the conflict is taking place in assam. Secondly by attacking a Bangladeshi target the insurgents would face getting involved in an international conflict rather than a national conflict it is currently facing. Also we shouldn't pass up on an economic opportunity just to spite India. Also if there are any price conflicts it will be between Myanmar and India, not banlgadesh as bangladesh would just be a transit country. And also having a key pipeline running through bangladesh would give us a strategic advantage over India. The only grounds i can see for not having this pipeline is an environmental one. I would like to know more about the potential environmental risk this poses before seeing it implemented.

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

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

250 million does sound like a small amount. On the other hand i don't think all your fears and reasons for not having the pipe is justified. First of all i doubt NE insurgents would attack the pipe since the pipe route is much farther south than where the conflict is taking place in assam. Secondly by attacking a Bangladeshi target the insurgents would face getting involved in an international conflict rather than a national conflict it is currently facing. Also we shouldn't pass up on an economic opportunity just to spite India. Also if there are any price conflicts it will be between Myanmar and India, not banlgadesh as bangladesh would just be a transit country. And also having a key pipeline running through bangladesh would give us a strategic advantage over India. The only grounds i can see for not having this pipeline is an environmental one. I would like to know more about the potential environmental risk this poses before seeing it implemented.


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

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

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

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

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