DT e-Paper 06 March 2017

More documents

Recommendations

Info

DT 10 Business MONDAY, MARCH 6, 2017 CAPITAL MARKET SNAPSHOT: SUNDAY DSE Broad Index 5,573.1 -0.2% ▼ Index 1,299.9 -0.3% ▼ 30 Index 2,010.9 -0.5% ▼ Turnover in Mn Tk 7,944.8 -4.3% ▼ Turnover in Mn Vol 208.4 -3.6% ▼ CSE All Share Index 17,243.1 -0.3% ▼ 30 Index 14,988.1 -0.3% ▼ Selected Index 10,455.4 -0.4% ▼ Turnover in Mn Tk 436.0 2.1% ▲ Turnover in Mn Vol 13.6 -3.1% ▼ Muhith rejects proposal to raise banks stock exposure • Asif Shawkat Kallol Finance Minister AMA Muhith has rejected Orion Group Chairman Obadul Karim’s proposal to raise the limit of stock market exposure for commercial banks along with any contract with the company on the basis of its stocks. The minister recently expressed his agreement with a Bangladesh Bank letter that argued that risks to the banking sector would increase if the limit is raised and if companies can obtain loans on their stock market holdings. However, the central bank says large business groups can obtain loans for investment in priority sectors in the country under state loan guarantee. The Orion Group appealed directly to the Prime Minister’s Office to amend the provisions of the Bank Company Act. The government is amending the law to change the structure of bank director boards. Earlier, Bangladesh Bank General Manager Abu Fara Md Nasar sent the letter to the Finance Ministry recommending that the provisions 26 (A) and 26 (B) of Bank Companies Act 1991 not be amended, in reply to the ministry’s query. In his letter, he said if the provisions are amended, there will be a negative impact on the country’s Bangladesh Bank says overall bank investment in the country’s stock market needs to be limited for the betterment of the market DHAKA TRIBUNE stock market. Officials of the Bank and Financial Institutions Division said the central bank does not agree with the proposed amendment to provision 26 (A) as the big groups want to have contracts with banks who invest in stocks. They said the central bank thinks the investments are not certain and are risk-prone. The Bangladesh Bank letter reads: “Overall bank investment in the stock market needs to be limited for the betterment of the local stock market.” It says the government should provide guarantees to large business group loans on a case-by-case basis. “Syndicated loans to large business groups will ease the risk of implementation of any big project,” he said. Under the provision 26 (A), banks are not allowed to invest more than 5% of their paid up capital in the stock market. The banks’ share market exposure limit is 25% of its capital under the provision 25 (B) of the Bank Companies Act 1991. The capital includes paid-up capital, share premium, statutory reserve and retained earnings. But the Bangladesh Bank gives exemption of bank exposure if the government provides loan or guarantee to the bank for investing in the stock market, according to the law. Earlier in December 2015, the banks’ capital given to their stock market subsidiaries were kept out of their stock market exposure. • Nasrul: Industries to pay higher gas tariff • UNB Hinting at further increase in gas prices, State Minister for Power and Energy Nasrul Hamid on Sunday asked the industry owners to get ready to pay higher gas tariff in the future. “We’re trying to provide imported gas to industries within two years which will be costlier. So, I’d ask the industries to get ready to pay the increased gas price,” he told reporters on the sidelines of a seminar on energy efficiency at a city hotel. The remarks from the junior minister came within a couple of days of High Court’s suspension of the second phase hike in gas price, scheduled to be effective on June 1. The first phase came into effect on March 1. The government raised the gas price by 22 percent through the Bangladesh Energy Regulatory Commission (BERC) on February 23 in two phases. Nasrul Hamid said his ministry has to increase the gas price due to payment of high tax. “We have to pay 55 percent tax to the national exchequer. If we fail to pay the tax timely, we have to pay a lot,” he said. Admitting the charging of higher fares by transport operators on the plea of gas price hike, he said it is unfortunate that nobody is talking about the issue. “But when we raised gas price, hartal was called.” Institute of Policy, Advocacy and Governance (IPAG), a think tank, organised the seminar on the occasion of International Energy Efficiency Day. Energy secretary Naziumuddin Choiwdhury also spoke at the seminar with IPAG chairman Prof Syed Munir Khasru in the chair. He said the government has moved to formulate a policy to make the LPG price affordable as there is a plan to replace the existing piped natural gas with the LPG. “We’ll invite debate on LPG price and controlling issues. Because, more discussions are needed to determine who would control the price and how it will be regulated,” he said. At the seminar, the speakers laid emphasis on implementing energy efficiency initiatives to reduce the cost of energy. In a presentation, Power Division joint secretary and SREDA member Siddique Zobair said India has taken a big initiative to promote the use of energy efficient appliances while China has adopted a policy in its budgetary framework to provide subsidy to use energy efficient products. He said Bangladesh has been studying different mechanisms to set its own strategy to promote energy efficiency. •
Business 11 DT MONDAY, MARCH 6, 2017 NBR to begin pre-budget talks on March 8 • Tribune Business Desk National Board of Revenue will start pre-budget meetings with different stakeholders from March 8. Representatives of different sectors will talk to the taxmen ahead of the FY2017-18 budget, according to the meeting schedules. The pre-budget talks, which are usually attended by representatives of all the leading chambers, business organisations and associations, are a regular fixture every year to help make an inclusive national budget. NBR Chairman Md Nojibur Rahman will chair the meetings. The NBR holds the meetings as part of preparations of budget formulation for the upcoming fiscal year, which it expects to be a participatory, pro-people, business-friendly and a potentially revenue-generating budget. At the inaugural meeting on March 8, the NBR will hear from the country’s three leading chambers - Metropolitan Chamber of Commerce and Industry, Dhaka Chamber of Commerce and Industry and Bangladesh Chamber of Commerce and Industry. On March 14, the meetings will be held with a number of export-related organisations including Bangladesh Economic Zones Authority, Bangladesh Investment Development Authority and Bangladesh Export Processing Zones Authority. On March 23, the taxmen will hear from hoteliers, restaurateurs and other service sector operators. The meetings will also be held with representatives from the paper, printing, publication, film and advertising firms and representatives of clinics and diagnostic centres. Talks will take place with banks, insurance companies, SME Foundation and stock exchanges on March 30. On April 3, the NBR will hold meeting with economists and professionals. The following day the meeting is scheduled to be held with construction, other industries and business sector and the Real Estate and Housing Association of Bangladesh. The meeting with the Economic Reporters Forum and representatives of the country’s print and electronic media is due on April 5. On April 6, the NBR will meet representatives from various export sectors including those enjoying bond facilities like Bangladesh Garment Manufacturers and Exporters Association. The meeting with different chambers including Foreign Investors Chamber of Commerce and Industry and India-Bangladesh Chamber of Commerce and Industry is scheduled on April 10. The meeting is scheduled with electrical, electronics and transport sector on April 11, with leading chambers of divisional cities on April 13, with Large Taxpayers on April 17 and with agriculture and chemical sector on April 18. On April 19, the NBR will meet representatives from clearing and forwarding agents, tax lawyers and chartered accountants. Once the meetings are over, the NBR will meet finance minister at the consultative committee meeting with the country’s top trade body - Federation of Bangladesh Chambers of Commerce and Industry on April 23. The business representatives will be able to make recommendations directly to the finance minister at that meeting. Meetings are also scheduled with different divisional chambers and also with divisional commissioners and deputy commissioners of divisions on different days. The last meeting, on May 4, will be with the divisional commissioner and deputy commissioners of Sylhet. The next budget will be placed in parliament in early June for the coming July-June fiscal year. • Huawei hosts the Global Digital Transformation Forum at the Mobile World Congress 2017. The technology giant united the industry’s greatest minds at the event recently PwC advisory leader due in Dhaka today • Tribune Business Desk Deepankar Sanwalka, PwC Advisory Leader for India-Bangladesh, is set arrive in Dhaka today on a three-day visit. He will meet senior government officials and clients of PwC Bangladesh during the visit, said a press release. Deepankar joined PwC India in 2014. He has over 20 years of experience in forensics, governance, internal audit, revenue assurance, financial risk management, sustainability, development sector practices as well as accounting advisory services with a specialisation in forensics accounting. Deepankar is a member of the International Arbitration Council of the ICC, the ASSOCHAM Committee on Internal Audit and Corporate Fraud. • China cuts 2017 growth target to around 6.5% • AFP, Beijing China yesterday trimmed its 2017 GDP growth target to “around 6.5%” as the world’s second-largest economy, already expanding at the slowest pace in a quarter-century, faces an array of challenges. The target, detailed in a report to be presented to China’s rubber-stamp parliament by Premier Li Keqiang beginning at 9 am (0100 GMT), was lower than last year’s range of 6.5 to seven percent. The economy ended up growing 6.7% in 2016, its slowest rate since 1990. “GDP is projected to grow by 6.5% approximately, however in practice, we will strive for better,” according to a copy of Li’s planned address to the National People’s Congress (NPC), the Communist Party-controlled legislature. Li’s remarks said the target was still sufficient to meet the Communist Party’s target of doubling the size of the economy by 2020, compared to 2010. The NPC brings together thousands of politicians from across China, touted by the ruling party as proof that it answers to the people despite a monopoly on power, and is used to outline top national priorities and policies. The target came in slightly below the expectations of analysts in a sign that authorities are prioritising risk control over short-term growth rates. China is trying to pivot from hyper-fast growth based on investment and exports towards a steadier consumer-driven model. •
Page 1 and 2: SECOND EDITION MONDAY, MARCH 6, 201
Page 3 and 4: News 3 MONDAY, MARCH 6, 2017 Govern
Page 5 and 6: Elections to 14 upazilas, 4 municip
Page 7 and 8: Law demanded for indigenous groups
Page 9: World 9 MONDAY, MARCH 6, 2017 DT Sr
Page 13 and 14: Controversy creates cash Where trad
Page 15 and 16: Opinion 15 MONDAY, MARCH 6, 2017 DT
Page 17 and 18: What's on 17 MONDAY, MARCH 6, 2017
Page 19 and 20: Sports 19 HOCKEY WORLD LEAGUE ROUND
Page 21 and 22: Sports 21 MONDAY, MARCH 6, 2017 DT
Page 23 and 24: Showtime Cholochitro Shilpi Samiti

DT e-Paper 06 March 2017

Create successful ePaper yourself

Delete template?

Save as template?