DT e-Paper 24 February 2017

DT
10
Business
FRIDAY, FEBRUARY 24, 2017
CAPITAL MARKET SNAPSHOT: THURSDAY
DSE Broad Index 5,625.3 -0.0% ▼ Index 1,309.5 -0.3% ▼ 30 Index 2,036.2 0.1% ▲ Turnover in Mn Tk 13,331.5 1.8% ▲ Turnover in Mn Vol 340.2 6.0% ▲
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PMO fears disinflation situation
• Asif Showkat Kallol
The projection of low inflation rate,
4.75%, could create disinflation
situation in the country, having a
possibility of negative impact on
overall economic growth rate, according
to Prime Minister’s Office
analysis.
The analysis on the January-July
monetary policy statement said
the low inflation indicates a situation
of the “extremely squeezed
demand.”
In the MPS the possible projection
of the inflation rate is 5.25%,
but real inflation rate can be as low
as 4.75% and as high as 6%.
AB Miza Azizul Islam, former
caretaker government finance adviser,
however said the inflation
rate of 4.75% would not create disinflation
situation.
He said an inflation rate of below
2% could result in disinflation.
But the low inflation rate may
lead to fall in industrial production.
The inflation rate came down to
5.03% in December last year, the
lowest in 53 months, assisted by
Commerce Minister Tofail Ahmed speaks at the inaugural of Ninth Asia Pharma Expo in the city yesterday
a steady decline in non-food prices
since June as well as no supply
disruption since political situation
remained calm.
According to official statistics,
the general inflation rate went
down 35 basis points in December
from 5.38% in November.
This was led by the fall in nonfood
inflation, which dropped to
4.49% in December, a decline of 88
basis points from 5.33% a month
earlier.
Food inflation fell slightly to
5.38% from 5.41% in November. •
Ninth Asia Pharma Expo begins
• Nure Alam Durjoy
A three-day ninth Asia Pharmaceutical
Exposition has begun in
the city yesterday with the participation
of more than five hundred
companies from thirty five countries
across the world.
Commerce Minister Tofail
Ahmed, as chief guest, formally
inaugurated the Pharma Expo at
capital’s Bashundhara International
Convention City, being jointly organised
by Bangladesh Association
MEHEDI HASAN
of Pharmaceutical Industries (BAPI)
and GPE Expo Private Limited.
The exposition, which will remain
open from 10:00am to 6:00pm
every day, will end on Saturday.
The expo includes pharma processing
and packaging, biotech lab
equipment, API manufacturing
plants, machineries, pharma formulation
and contract manufacturing in
which domestic entrepreneurs will
be able to know about modern technologies
and raw materials for drugs.
The inaugural ceremony was attended,
among the others, by BAPI
Secretary S M Shafiuzzaman, State
minister to Health and Family Welfare
Zahid Maleque, Directorate
General of Drug Administration Major
General Mustafizur Rahman and
BAPI Adviser Salman F Rahman.
Inaugurating the expo, Tofail
Ahmed said: “Bangladesh is almost
self-sufficient in the pharmaceutical
sector thanks to the significant
progress the industry made in the
last three decades.”
“About 98% of the local demand
is being met by domestic manufacturers.”
BAPI Secretary SM Shafiuzzaman
said the pharmaceutical sector
was “directly contributing to the
country’s economic development.”
“We are now exporting to more
than 127 countries after meeting
98% of the local demand,” he added.
BAPI Adviser Salman F Rahman
said the sector has grown consistently
and continues to expand.
“It has matured. There’s a huge
demand for medicine in the global
market. We could have exported
more but the export process is
complex and time consuming,” he
added. •
Call for inclusive data
to spearhead Dhaka’s
future economy
• Ibrahim Hossain Ovi
A comprehensive study is required
in order to set strategy for the future
of Dhaka’s economic growth.
Economists, urban planners and
businesses stressed the need for
such a research to bring in an equal
development for the capital and its
suburbs that will ultimately fetch
the country a middle-income status.
The recommendations were
made at a stakeholder dialogue on
“Dhaka’s Economic Future: Opportunities
and Challenges” held in
the capital yesterday.
Dhaka Chamber of Commerce
and Industry (DCCI) and Power
and Participation Research Centre
(PPRC) jointly organised the dialogue
to discuss the issues of economic
growth of the capital.
“There is information about the
city’s poverty, sanitation, education
and other issues, but no citybased
analysis on economy,” said
Prof Nazrul Islam, a prominent urban
planner.
“We should know about the capital’s
economic potential. Economic
investment planning is very important.
For that purpose, a comprehensive
study on the economy of
Dhaka is required,” said Islam.
“Dhaka has a great economic
potential which is still untapped.
Dhaka could be the best connector
for other parts of the country,” said
Hossain Zillur Rahman, PPRC executive
chairman.
“Livability is not just a social
concern, it is also an economic concern.
Dhaka’s economic vibrancy
is high but untapped. We have set
plan considering the aspects,” said
Hossain Zillur Rahman.
“The equal development of
Dhaka as well as its suburbs would
help us attain the middle-income
country status.”
He suggested that RAJUK should
consult with business community
to include economic plan in its
master plan. If health, education,
transportation and housing system
improve, other cities of the country
will gain the same economic potential
like Dhaka.
Zillur emphasised the need for
cluster-based economic zones in
the capital to make it a connectivity
hub in the country.
“Dhaka is one of the fastest
growing cites in the world, but too
many authorities and bureaucracy
sometimes hamper speedy infrastructure
development,” Martin
Rama, World Bank chief economist,
South Asia Region, said in his
keynote presentation.
The economic potential of greater
Dhaka is immense and a proper
policy guideline can tap these opportunities,
he added.
“There is a strong query for data
and we will have it to share by next
two to three months,” Martin said,
adding that efforts are on to bring
everything under a single platform.
“Dhaka Chittagong Economic
Corridor can be one of the solutions
to decentralisation of Dhaka,” said
DCCI president Abul Kasem Khan.
‘Dhaka has a great
economic potential
which is still
untapped. Dhaka
could be the best
connector for other
parts of the country’
There is a common perception
among the mass population that
‘Dhaka is Bangladesh and Bangladesh
is Dhaka’ as everyone wants
to rush to the capital for livelihood,
added the business leader.
“We have to come out of this
perception. For economic activities,
the government should focus on the
entire country without distinguishing
between urban and rural areas.”
The DCCI boss stressed the necessity
of acquiring knowledge
about formal and informal economy
of the capital as about 70%
workers are employed in informal
sector while the size of informal
economy remains unknown.
Policies are too much centralised
to Dhaka while the quality of
public works are horrible and there
is a lack of accountability and coordination,”
said Abdul Haque, managing
director, Haq’s Bay Automobiles
Ltd.
It is high time that institutional
reforms got to be done in the best interest
of Dhaka’s future cultural and
industrial growth, Haque added.
About 33% revenues come from
the Dhaka city, but all the activities
are unplanned, said Md Abu Bakar
Siddique, a businessman.
The city is not planned, but the
business is planned, he said, calling
for a planned city. •