Read more about April’s business and international news
ONION PRICES SHOOT UP DESPITE ADEQUATE STOCK
Prices of onions has increased by Tk3-4 per kg at retail markets, although they arein high supply. Local varieties were sold at Tk34-36 per kg while imported Indian/Burmese varieties at Tk30-34 per kg. The Indian government has slashed the minimum export price (MEP) of onion by USD 50 per tonne to USD 250, a move which would help in encouraging exports of the commodity. Bangladesh produced a record 1.65 million tonnes of onion in the last financial year (FY ’14) against a demand of 2.2 million tonnes, according to the Bangladesh Bureau of Statistics (BBS) and the commerce ministry.
GOVERNMENT INTRODUCE PREPAID GAS METER
The government has taken a step to introduce 1.76 million prepaid gas metres in Dhaka and Chittagong aimed at improving energy efficiency as well ensuring best use of gas. An installation of 0.26 million prepaid metres in the two metropolitan cities, financed by Japan International Cooperation Agency (JICA) would be completed by 2018 and another project financed by the Asian Development Bank (ADB) to introduce 8,600 prepaid is set to complete by June this year. They are also installing 2,00,000 prepaid metres for the residential consumers of Dhaka at a cost of Tk 7.22 billion, while Karnaphuli Gas Transmission and Distribution Company Limited 60,000 metres at a cost of Tk 2.45 billion. The total cost for implementation of the two projects is Tk 9.71 billion, of which JICA is financing Tk 6.07 billion.
STOCKS BOUNCE BACK AT THE BEGINNING OF THE MONTH
Stocks bounced back after losing in the last three sessions, with turnover hitting highest in the year. The market started with a flying note and remained vibrant throughout the session. Investors’ increased participation, along with notable buying pressure indicates that the market might have released from its recent bearish momentum, it said. Gainers beat losers 178 to 44, with 10 issues remaining unchanged at the port city bourse that traded 10.56 million shares.
FOREIGN EXCHANGE RESERVE CROSS $23 BILLION
The foreign exchange reserve of the country yesterday rebounded and crossed $23 billion for the second time in its history, according to Bangladesh Bank (BB), reports BSS. The foreign exchange reserve resurged to $23.03 billion yesterday. Earlier on February 26, the reserve hit the new record of $23.08 billion, after the payment to ACU (Asian Clearing Union).The reserve position would not go below $23 billion mark even after regular payment to Asian Clearing Union (ACU) if the growth in remittance inflow continues with political stability.
MORE POWER TO BE IMPORTED FROM INDIA
An additional 600 megawatts (MW) of power will be imported from India. Of this, 500 MW will be imported through the Bangladesh (Bheramara)–India (Baharampur) grid and 100 MW will be imported from India’s north-eastern state of Tripura. In this connection, the Executive Committee of the National Economic Council (ECNEC) yesterday approved the two projects. The Power Grid Company Bangladesh Limited (PGCB) will implement the expansion of the existing capacity of the power grid inter-connection project by June 2018, with the Asian Development Bank (ADB) providing Tk 844.88 crore. According to the development project plan (DPP), the project aims to import an additional 500 MW of power from India by enhancing the capacity of the existing Bangladesh (Bheramara)– India (Baharampur) grid inter connection, thereby meeting the growing demand for power to ensure socio-economic development.
USD-BDT NOW STABLE
USD/BDT maintained a stable tone last week as well and traded around 77.80 levels. As the country will start receiving wage earners remittances from next week, the market might get eased in coming week. The average daily inter-bank USD-BDT transaction volume was about USD 16.43 million against USD 40.10 million of the preceding week. USD-BDT swap market in this week remained vibrant. The daily average volume of swap transaction was around USD 90.00 million.
6.5% GDP GROWTH IN 9 MONTHS
Bangladesh in the first nine months (July-March) of the current 2014-15 fiscal registered 6.5 per cent GDP (Gross domestic product) growth, reports BSS. During the period, a total of Tk 79,978 crore has been collected as revenue. The growth rate in revenue collection is 16.42 per cent. The World Bank predicted that Bangladesh economic growth would be between 6.4 and 6.6 per cent in fiscal 2014-15, if there was no political turmoil, but now it would be at 5.6 per cent. It said the political turmoil in the first quarter of 2015 cost the country’s one per cent of GDP, amounting to US$ 2.2 billion.
FASHION HOUSES WANT TAX REDUCTION
Fashion houses placed four-point demands, including reduction of the 5% VAT on their clothing items to 2%, for recouping the losses they incurred due to political turmoil. In a post-Boishakh press conference held at the Fashion Entrepreneurs Association of Bangladesh (FEAB) office, the leaders of the fashion world claimed to have bagged sales worth about Tk 16.50 billion during this Boishakh festival, which is 10% higher than previous year’s. Last year, the fashion sales fetched Tk 15 billion.
FISH, LENTIL AND POTATO PRICES INCREASE
Prices of river fish, lentil, potato and some summer vegetables has increased. Prices of all kinds of fish declined after the Pohela Boishakh festival. But the prices of river fishes again started to increase, according to key kitchen markets. Pabda was sold at Tk 950-1000, Golsha at Tk 450-500, Tengra at Tk 400-450, Shing and Magur at Tk 800-850 and Shoul at Tk 400-450 per kg based on their size on Friday with a Tk 80-120 hike in a week. Local variety of lentil was sold at Tk 92-96, local broken at Tk 90-92 per kg while imported course varieties were sold at Tk 76-80 per kg with a Tk 4-6 hike in last seven days.
MODEST GROWTH IN INDUSTRIAL ACTIVITY
The country’s industrial activities in the first half of the current fiscal year (2014-15) witnessed a moderate trend. The moderate trend is reflected in the latest data available with state-owned Bangladesh Bureau of Statistics (BBS). It shows that the Quantum Index of Industrial Production (QIIP) of medium and large scale manufacturing industries stood at 243.36 points at the end of December last year which was 240.13 points at the end of June. According to BBS, mining output stood at 174.54 points at the end of December last which was 155.27 at the end of June 2014.
BETEL LEAF EXPORTERS MAY TAKE OVER EU MARKET AGAIN
Bangladesh may begin exports of betel leaf to the European Union after long two years. Although there are no specific statistics on betel leaf export, commerce ministry and exporters say the average annual shipment could amount to US $31 million. Bangladesh exported agricultural products worth $615 million in the last financial year, of which cut flower and foliage was $39 million.
PRINTING BUSINESS AND PAPER SALES PROSPER
Paper sales and printing businesses are booming on the back of forthcoming city corporation election campaign. Traders expect to ring up as much as Tk 300 million in income. They have a chance to do brisk business as the elections are scheduled to be held on April 28. The election to undivide DCC was held way back in 2002.
FOREIGN BIDDERS INTERESTED IN SATELLITE CONTRACTS
The telecom regulator has drawn positive response from foreign companies as they bid for Tk 30 billion contracts for the country’s first satellite, officials said. The officials said four companies have already collected necessary documents to participate in the international tender floated by the Bangladesh Telecommunication Regulatory Commission (BTRC) on March 24 this year. The government is set to build the country’s own satellite to 119.1 degrees east longitude under the Bangabandhu Satellite Project by late 2017.
FINANCIAL TIMES CHOSE YUNUS AS ONE OF THE SIX FINANCE PIONEERS
Financial Times chose Professor Muhammed Yunus as one of six greatest Finance Pioneers of all time. In the March 31, 2015 issue in an article entitled “Business Pioneers in Finance”, Professor Yunus has been placed alongside Warren Buffett, Amadeo Giannini, Henry Kravis, JP Morgan, and Mayer Amschel Rothschild as greatest business finance pioneers of all time, said a press release.
PUBALI BANK CHAIRMAN RE-ELECTED
Hafiz Ahmed Mazumder has been re-elected as chairman of the board of directors of Pubali Bank Limited. Habibur Rahman and Fahim Ahmed Faruk Chowdhury have been re-elected as vice-chairmen of the board of directors. Hafiz Ahmed Mazumder is associated with many social welfare activities. He contributed in education sector by establishing Hafiz Majumder Education Trust.
Habibur Rahman is the sponsor director of Green Delta Insurance, Delta Hospital and Delta Medical Centre. Fahim Ahmed Faruk Chowdhury is the managing director of Chittagong Electric Manufacturing Company, CEM Ready Mix Concrete Ltd, Ranks FC Properties Ltd.
BANDWIDTH EXPORT TO INDIA
The Cabinet has cleared 10 GBPS bandwidth export to India paving the way for Bangladesh to earn more than $1.2 million per year. The agreement to supply 10 GBPS bandwidth is commendable as Bangladesh will be earning foreign currency while India’s north-east is getting easy internet connection, which they had to get from Mumbai previously.
BANGLADESH’S FIRST EVER PACKING FILM FACTORY
Thai Film Industries (pub) Ltd has proposed to set up a packing film factory in Bangladesh with an investment of US$ 40 million. A team comprising three members of the Thai company visited Dhaka last month and made the proposal to BEPZA and to the Board of Investment (BoI), the official said. The proposal is the first-ever of its kind in Bangladesh. There is no such manufacturing factory in the country.
NEW DMDS AT IFIC BANK
Fariduddin Al Mahmud and Shah Md Moinuddin have been promoted to Deputy Managing Director (DMD) of IFIC Bank Limited with effect from April 1. Prior to their new position, both of them were senior executive vice presidents of the bank. Farid started his banking career in IFIC Bank in 1984 as a probationary officer while Moinuddin joined the bank in 1986 also as a probationary officer.
LOCAL POTATOES TO BE EXPORTED TO RUSSIA
Commerce Minister Tofail Ahmed said Russia will import one lakh tonne potatoes from Bangladesh, as the country is interested to boost bilateral trade. “Bangladesh Agriculture Department has made the potato bacteria free as per the requirement of Russia . . . a delegation of the country is expected to arrive here soon to finalize the deal of potato,” he told the newsmen after a meeting with the Russian Ambassador to Bangladesh Alexander A Nikolaev. The minister said Russia is keen to import readymade garment (RMG) from Bangladesh, “But, there are complexities regarding custom duty, which also has the involvement with Belarus and Kazakhstan.” Export of RMG products would be possible to export easily, if the complexities are eliminated,” said Tofail. Bangladesh has a US$ 03.05 million trade deficit with Russia, as in the fiscal year 2013-14, Bangladesh exported products of $ 283.35 million against the import of $ 286.40 million.
TRIPURA TO PROVIDE 100MW ELECTRICITY
Bangladesh will receive 100 megawatts (MW) of power from Tripura by December this year. The Executive Committee of the National Economic Council (ECNEC) approved the Tripura (India)–Comilla south sub-station (Bangladesh) grid interconnection project, worth Tk. 179.45 crore. The Power Grid Company of Bangladesh (PGCB) will implement the project by June 2016, under which Bangladesh will import 100 MW of power from the Palatana power station of Tripura through the Comilla south power sub-station. Under the project, 43 km of transmission lines will be set up from Tripura to the Comilla south power sub-station, and two 132 KV lines would be expanded at the sub-station.
PREMIER LEASING GET NEW MD
Mustafizur Rahman joined Premier Leasing and Finance Limited as managing director on March 29. Prior to joining the company, Rahman was the managing director of International Leasing and Financial Services Limited. He started his career in financial institutions through joining in IDLC Finance Limited.
TELCO SUBSCRIPTION HITS 122.62 MILLION IN FEBRUARY
The number of mobile phone users in the country rose to 122.66 million at the end of February this year from 115.98 million a year before, according to the telecom regulator Bangladesh Telecommunication Regulatory Commission (BTRC). According to BTRC, the country’s first cellphone operator Citycell lost 135,000 and Airtel 418,000 in users in last one year.
