Business Supplement Issue-4

DT
VOL1, ISSUE 4 | Sunday, March 12, 2017
Business Tribune
New prospects in
Bangladesh blue economy
Syed Zakir Hossain
4
Export earnings fall
Why a trade deficit
4.50% in February
7 is no bad thing

2
Sunday, MARCH 12, 2017
DT
Special
New prospects in Bangladesh blue economy
• Tarek Mahmud
The recent visits of the USA-based
international luxury cruise line Silversea
with tourists to Bangladesh
have ushered in a new era of sea
tourism in the country.
Recently, the Silversea made a
couple of trips to Sundarbans and
Maheshkhali island, which could
be new prospects for the country’s
blue economy, according to the
sector people.
“Blue Economy” is marine-based
economic development
that leads to improved human
well-being and social equity, while
significantly reducing environmental
risks and ecological scarcities.
The recent Silversea visits
helped local business earn a sum
of Tk70 lakh while the government
also earned a significant amount,
the people familiar with the business
said.
After fixing the maritime area
at the Bay of Bengal, the policymakers
started analysing the prospects
of blue economy through sea
resources and minerals while sea
tourism has appeared as first output
such specialised economy by
the visits, experts said.
With the trips, sea tourism had
unveiled another dimension of
blue economy in the country’s
maritime sector, said Civil Aviation
and Tourism Minister Rashed Khan
Menon, at a recent meeting in the
Secretariat.
He said: “About Tk35 lakh revenue
was deposited to the state
treasurer by the first trip of Silver
Discoverer. By this initiative, sea
tourism prospect in Bangladesh
will attract international companies
which carry more earning for
the country.”
National Oceanographic and
Silversea, USA-based international luxury cruise, anchors in Bay of Bengal last Month
Maritime Institute on February 7
organised a seminar on future planning
of blue economy and environmental
research where the research
head Sirazur Rahman Khan said
about 10,000 tourists visit Saint
Martin’s island everyday where the
number is only 3,000 in 2010.
In the seminar, he suggested
making an appropriate survey on the
sea to discover its all resources and
prospects; initiating a well-informative
database over the blue economy
and introducing more international-class
facilities for the tourists.
The international tourists were
scared to visit Bangladesh after the
Gulshan cafe attack last year.
But the trips of 162 foreign tourists
by sea to Bangladesh without
any untoward incident proved
that Bangladesh is “safe and better
place for tourists,” said sources in
Bangladesh Tourism Board.
Amongst the 162 tourists, the
highest 66 visitors were from the
USA. Visitors from the United Kingdom,
Australia, Canada and many
European countries were in the
trips, said Journey Plus, partner of
Silversea in Bangladesh.
The cruise ships “Silver Expeditions”
anchored in Maheshkhali
island of Cox’s Bazar district and
Sundarbans.
Tourists in small boats of the
Courtesy
ship visited the places and expressed
their joy after sight-seeing
and interaction with local people,
said the organiser of the trips.
Marveling at the natural beauty
of Sundarbans and Maheskhali
island, a sailor of the ship wrote
letter to the tourism minister expressing
his delighting experience.
The tourists did not disclose
their names because of security
concerns.
“Bangladesh is now on the
world’s cruise map and this voyage
will help boost future tourism of the
country,” said Journey Plus Chief
Executive Officer Taufiq Rahman.
Cox’s Bazar Deputy Commissioner
Mohammad Ali Hossain said
the tourists visit different historical
places and pagoda.
Maheshkhali Upazila Nirbahi Officer
Abul Kalam said such type of
visits would help develop positive
image of Bangladesh in tourism
sector.
Chittagong Chamber of Commerce
and Industry President Mahbubul
Alam said the initiatives may
inspire tourists from other countries
to visit the world’s longest sea
beach and the world’s biggest mangrove
forest.
Silversea has started carrying
tourists on two routes through Bay
of Bengal. One is Colombo-Kolkata
via Cox’s Bazar and another is Kolkata-Thailand
via Bangladesh and
Myanmar.
The government had announced
2016 year as the “Tourism Year”
while the ruling party strongly tried
to convince foreign tour companies
to initiate operation in Bangladesh.
The Silver Discoverer’s visit shows
the signs of a new trend.
Tiger Tours Limited Chief Operating
Officer Sumala Chowdhury
said: “The sea tourism has a huge
prospect for our economy. But we
have to flourish and nurse the sector
without doing any harm to our
natures, heritage and tourist environment.”
Sohel Rana, member of traveler
group Oronyopremi, said the government
should take more tourism-friendly
initiatives to inspire
many more tourists to visit the
world’s longest sea beach and the
world’s largest mangrove forest.
Tour Operators Association of
Bangladesh urges the government
to bring all bureaucratic formalities
under an umbrella for tour operators
so that they can easily do any
formality promtly. •
Luxury hotel business boom as foreigner visit increases
• Ishtiaq Husain
Luxury hotel business is gaining
momentum as foreigners in droves
are currently visiting the country to
attend international programmes
including IT and tourism conferences
and above all international
fair on RMG.
The steady economic growth
has contributed a lot to boost the
hospitality business. Since demand
is on the upswing, the number of
five-star hotels is being built in the
country’s two main cities.
Based on the demand for accommodation,
construction of
10-12 five-star hotels is underway
in Dhaka and Chittagong which
would be ready for guests within
five years.
The construction of International
hotel chain Marriott, Hilton, Novotel,
Sheraton, InterContinental
Holiday Inn, Marriott Courtyard
and one more Westin hotel is going
on in full scale.
Now, 10 five-star hotels have
over 2,000 rooms while more
10 would provide around 2,000
rooms.
Marriott International will be
built beside Jamuna Future Park
with an accommodation of 700
rooms. Likewise, Dhaka Sheraton
will be constructed at Purbachal,
Holiday Inn at Tejgaon, Westin in
Banani residential area and Pacific
Jeans in Chittagong.
In the last couple of years, hospitality
industry saw a huge growth
considering the number of new
five-star hotels that came into being.
During this time, The Westin,
Radission Blu Water Garden, Amari,
Six Season, Four Points Sheraton,
Le Meridien, Sarina, Regency
had been open for guests.
The average annual hotel occupancy
of these luxury hotels were
around 70% which indicated a
huge growth in the hospitality industry.
According to the World Travel
and Tourism Council (WTTC), the
direct contribution of Travel and
Tourism to GDP in Bangladesh in
2015 was Tk407.6 billion (2.4% of
GDP), which rose 5.2% to Tk428.9
billion in 2016. This primarily reflects
a wide range of economic
activities generated by industries
such as hotels, travel agents, airlines
and other passenger transportation
services.
The global authority on economic
and social contribution
of Travel and Tourism promotes
sustainable growth for the sector,
working with governments and
international institutions to create
jobs, to drive exports and above all
generate prosperity.
The direct contribution of Travel
and Tourism to GDP is expected
to rise 5.6% to Tk738.1 billion (2.3%
of GDP) by 2026.
Kazi Wahidul Alam, editor, The
Bangladesh Monitor, a fortnightly
travel newspaper, said definitely,
the growing hospitality industry
is a key indicator of any country’s
economic activity as this is a major
part of tourism industry.
The upcoming luxury hotels will
play a vital role in the development
of economy.
Though luxury hotels are increasing
in the country, prices of
the rooms here too high compared
with those in India Nepal, Malaysia
and Thailand.
Talking to the Dhaka Tribune
Ashwin Nayar, general manager,
Le Meridien Dhaka, said since the
number of hotel increases, prices
of hotel rooms will come down.
Shahidus Sadeque, director
(business and sales), InterContinental
hotel, said the number of
hotels under construction indicates
that the hospitality industry
is growing.
“We have done well in 2010, 2011
and 2012. Currently, we are also doing
well. If Bangladesh can achieve
nearly 7% GDP growth, we need at
least five-six five-star hotels.”
All these new ventures are the
part of tourism industry, he said,
adding that more sports, events
and international seminars in coming
days must add to the growth of
the tourism industry. •

Interview
3
Sunday, MARCH 12, 2017
DT
Le Méridien: Cohesive workforce key to
business momentum
• Ishtiaq Husain
In line with the booming hospitality
business, Le Méridien Dhaka – as
elsewhere in the world – has gained
its business footing within a couple
of years with the help of sheer team
work that came as a cohesive unit.
Owned by Best Holdings, Le
Méridien began its journey in
Dhaka in November 2015 with 304
rooms, including 25 suites and six
restaurants.
Dhaka Tribune sat with the hotel’s
General Manager Ashwani
Nayar to get his insight into the
hospitality business that is gaining
momentum.
With his vast experience in Starwood
Hotels & Resorts and various
other global hotel brands including
the Intercontinental, Park Royal
and Holiday Inn worldwide, Nayar
took the helm of Le Méridien Dhaka
venture, first time serving as a
pre-opening general manager.
The seasoned hospitality business
expert shed light on various
issues in this exclusive interview.
Ashwani Nayar, General Manager of Le Méridien Dhaka
Do you think the number of fivestar
hotels in Bangladesh is still low?
I personally believe that there is
still a lot of space to fill in in terms
of supply. The situation was a little
unbalanced in the past. We have
our first five-star deluxe hotel in
The international hotel chain has gained
its popularity within just over a year
after opening its venture in Bangladesh
hospitality industry
matured stage. As to investment
and interest, I can definitely say our
company in Sheraton Brand was in
this country for so many decades.
We are the biggest hospitality company
with 5,700 hotels. Our hotel is
even today having 100% occupancy.
It goes to show as a relatively
new player in the market. We are
running full house. It just goes to
show that the market is leaning
very strongly towards becoming
very matured and very very strong.
Do you think hotel rooms are too
costly in Bangladesh compared
with other tourist destination
countries?
I think the cost of hotel rooms or
cost of any services we are providing
are relative to market itself in
Mahmud Hossain Opu
global comparison, but the main
thing one should look at is the market
we are getting in. The number
of issues that come into play is the
price of operations, cost of land, returns
from investment required to
set up that particular business.
Again demand and supply situation
comes up. I think we are
measured by where we are, and if
you really make a country-to-country
comparison, which is not really
possible, because the amount of
investment varies to open and run
a hotel everywhere in the world. I
think from Bangladesh’s perspective,
we are where we started.
What are the challenges in
the hospitality industry in
Bangladesh?
I think the biggest challenge which
we need to address at this point of
time is to overcome hospitality as
a business globally. I think the war
on hospitality will be fought on talent.
Fortunately, for us in Bangladesh
I could say people who are in
the industry have been very enterprising.
Every large section of them
will continue even today to work in
various parts of the world with various
roles.
Now, we have been very strong
in tracking the talent back into our
country with the opening of Meridian
and I think that the proper
mix of locally available talent and
fresh talent is building the industry
jointly. The other area which I
personally believe to address is
gender diversity. Even today we
discuss gender diversity as a subject
which means that there is need
to address it.
There are a lot of women moving
towards leadership roles but
somehow the diversity ratio is still
required to be streamlined which
means we need to be smart enough
to attract more female workers
at entry level to be able to retain
them through a good growth path
in their careers as they are moving
to mid-level management and then
put them into senior management.
What is your main goal in the
hospitality industry?
Our vision is never to be satisfied.
I don’t mean it in a negative sort of
manner, rather I mean it in a positive
manner. My vision on this is
our team will always remain hungry.
We will always try to reach
the top and continue to learn and
develop ourselves. Yes, we have
100% occupancy, but tomorrow we
will have 70%. Our ultimate goal is
to be an aspiring company which
people would be inspired to be a
part of. •
DT: How have you gained so much
popularity within a year?
Ashwani Nayar: First of all I would
like to give the credit to our entire
hard-working team which has
come together as a very cohesive
unit to gain the popularity. The level
of commitment and passion to
do something great was at its peak
since the beginning and it gave us a
good start.
The parent company was
initially Starwood, which is now
Marriott International that sees
Le Méridien Dhaka as a flagship
benchmark for the Meridian brand
which maintains high quality
comparable only to a series of best
international standard hotels. We
have at least attempted to set a new
benchmark here in Bangladesh in
terms of services and products in
hospitality business. I am proud
and so humble to see our efforts
that have achieved six international
hospitality awards within the first
one and a half years of opening the
hotel.
eight years that means the demands
keep growing in all these
years as there is no supply.
I think demand and supply
should go hand in hand. When we
set our foot in hotel business here,
we added almost 45% our supplies
to the existing ones that again goes
a little imbalanced. Going forward
I would like to see hotels across all
levels, not only five-star and deluxe
hotels but also the first-class,
three-star and four-star hotels.
What is our position in hospitality
industry as a country? Is it the
early stage of growth?
In Bangladesh, there are a large
number of hotels in the pipeline. I
think we are moving forward from
the state of development to a very
Courtesy

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Sunday, MARCH 12, 2017
DT
Week in Review
10% rise in women workforce to raise Bangladesh GDP by 1%
If Bangladesh can raise the
participation of women in
labour force by 10% within
the next five years, it would
play a pivotal role in driving
the GDP growth by 1%,
experts have said. “Currently,
the contribution of women
workforce in our GDP growth
is 34%,” said World Bank lead
economist Dr Zahid Hossain.
He said the participation of
women in workforce would
take the country forward in
attaining higher GDP growth
in line with achieving the
Sustainable Development
Goals (SDGs) by 2030.
Mahmud Hossain Opu
Govt allows sand
export at Tk1 per cft
The decision was taken at a meeting of the
National Sand Corridor Management Committee
on March 6 with land minister Shamsur
Rahman in the chair. Shamsur said sand can be
lifted experimentally for 6 months initially from
the proposed site of Jamuna river by keeping
the flows normal for river traffic and navigability.
If any adverse impact on the environment
is detected, the dredging will be stopped, he
added. Earlier, Infrastructure Dredging Limited
applied to the Ministry of Water resources
seeking permission for dredging Jamuna river
and exporting the sand to Singapore and Maldives
at its own cost initially for a period of two
years. Later, the Land Ministry, Water Resources
Ministry and Shipping Ministry discussed the
proposal of the company at a meeting of the
National Sand Corridor Management Committee
on Oct 18, 2016. •
Export earnings fall 4.50%
in February
Bangladesh export earnings have witnessed a
4.50% fall to $2.73bn in February due to slow
growth in apparel sector. However, the export
earnings have seen a 3.22% rise to $22.83bn
in the first eight months from July to February
of the current fiscal year. Export earnings are
moving through ups and downs. Of the first eight
months, negative growth dominated the first four
months while it was in the positive territory in the
remaining months.
Trade analysts and manufacturers attributed
Brexit, US election and economic slowdown in the
export destinations to the downswing in export
earnings. According to Export Promotion Bureau
(EPB) data released on Wednesday, the export
earnings in February marked 4.50% fall to $2.73bn.
In February last year, Bangladesh export earnings
stood at $2.85bn. On the other hand, Bangladesh
earned $22.83bn in July-February period of the
current fiscal year which is 3.22% higher compared
to $22.12bn in the same period a year ago.
RMG sector, the lifeline of the export earnings,
has observed slow growth in July-February
period of the current fiscal year. In the period,
clothing products earned $18.63 billion, up only
by 2.82%, compared to $18.12bn in the same
period a year ago. Of the total amount, knitwear
products fetched $9.08bn, which is over 5%
higher compared to $8.64bn a year ago, while
Woven garments earned $9.56 billion posting
a 0.83% rise compared to $9.48bn in the same
period last year. •
Tofail: Gas crisis
likely to end by 2018
Commerce Minister Tofail
Ahmed said the government
plans to set up a
number of liquefied natural
gas terminals across
the country so there is no
gas crisis by 2018. He was
talking to journalists after
a meeting with Qatar
Ambassador in Bangladesh Ahmed Mohamed
Al-Dehaimi on March 6. Tofail said the Qatar
government is now implementing a floating
LNG terminal project in Bangladesh and has
also expressed interest in investing in land
LNG terminals. As per the government plan,
the country will have to import about 182.5bn
cubic feet of LNG annually from Qatar to meet
daily deficit of 500 million cubic feet against
the present production of 1,900 mmcfd. •
Bernicat: Disputes in
factories shouldn’t
hamper production
US Ambassador to Bangladesh Marcia
Bernicat said any dispute between workers
and owners in the country’s garment industry
should not hamper production. “In any case of
dispute between workers and owners, everybody
should make sure that the production
does not stop in any way. If the production is
stopped – it is not only owners’ problem, it is
also workers’ problem,” she said while speaking
to journalists in Ashulia near Dhaka on
March 9. The envoy held meeting with trade
union leaders, workers, owners and NGO representatives in Ashulia.
She also urged the owners make sure that the workers are working in a
safe environment. When asked about the workers unrest, Bernicat said the
workers and owners now “have no problem.” “After talking to owners and
workers here, I found completely a different scenario. They have no problems
between them.” “There must have a good relation and mutual understanding
between the workers and owners. Otherwise, the instigators would get the
chance to create unrest,” she stressed. Marcia Bernicat urged the government
and garment industry owners to ensure workplace safety and workers’ rights
for restoration of the GSP trade facility. •
Dhaka Tribune
BGMEA sought
three years' time
to move office
Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) has filed
a petition with the Supreme Court on
Wednesday seeking a three-year time to
shift its office from the building located
over Hatirjheel lake.
Talking to the Dhaka Tribune, BGMEA
lawyer Imtiaj Moinul Islam said: “We have
sought three years to shift the office to a
different location.
“The matter was placed before the
Supreme Court’s Appellate Division on
March 9 .” When asked regarding the
demolition of the building, the lawyer
replied: “It is a different issue.” On March
5, the apex court dismissed a petition to
review it’s 2016 verdict saying the building
was built illegally and therefore must
be demolished.
The Supreme Court had also ordered
the BGMEA to inform it in a petition by
March 9 as to how long it would take to
demolish the building. •

Corporate News
5
Sunday, MARCH 12, 2017
DT
Rahman Rahman Huq (KPMG Bangladesh) has recently hosted a technical seminar on the new VAT Act
2012 and Rules 2016, said a press release. First secretary at National Board of Revenue, Dr Md Abdur Rouf
attended the seminar as chief guest at the presence of Adeeb H Khan, senior partner at KPMG Bangladesh
IPDC Finance Limited has recently celebrated International Women’s Day by participating an event
named, Women Leadership Summit 2017, said a press release. The company’s managing director, Md
Mominul Islam was present at the event that was organised by Bangladesh Brand Forum
Bangladesh Institute of ICT in Development (BIID) has recently organised the 1st Nutrition Olympiad
2017 under Nutrition Club initiative supported by INGENAES/USAID, said a press release. FAO
representative in Bangladesh, Sue Lautze was present at the programme as chief guest
Dutch-Bangla Bank has been awarded scholarship to students who are in need of financial aid for
studying at higher secondary and graduation levels, said a press release. Finance Minister, AMA Muhith
was present at the programme as chief guest while the bank’s chairperson, Sayem Ahmed presided over
the programme
AB Bank Limited has recently celebrated International Women’s Day at its corporate head office, said a
press release. The bank’s chairperson, M Wahidul Haque attended the programme
ZH Sikder Women’s Medical College and Mandy Dental College have jointly organised a programme
to celebrate 50th convocation of Dhaka University, said a press release. The chairperson of governing
body at Mandy Dental College and vice-chariperson of ZH Sikder Women’s Medical College, Parveen
Haque Sikder was present at the programme
Mercantile Bank Limited has recently celebrated International Women’s Day by holding a programme at
the bank’s head office. The bank’s managing director, Kazi Masihur Rahman inaugurated the programme
NRB Bank Limited has recently launched card cheque facility for its credit cardholders, said a press
release. The bank’s managing director, Md Mehmood Husain inaugurated the launching event
Prime Minister’s Office has recently signed an agreement regarding online electric bill collection
management with NRB Commercial Bank, Bangladesh Polli Biddutaiyon Board (BREB) and Access to
Information, said a press release. The bank’s managing director, Dewan Mujibor Rahman, BREB secretary
Khaleda Pervin and project director at Access to Information, Kabir Bin Anowar have signed the agreement

6
Sunday, MARCH 12, 2017
DT
W E E K L Y M a r k e t O v e r v i e w
5,671.6
Stocks
SUMMARY Points Change (%) Turnover (BDTmn) Volume (mn) Advanced issues Declined issues Unchanged Issues
DSEX 5,671.6 1.52% 53,706 1,491 147 152 34
CSE ASI 17,570.7 1.55% 3,099 96 143 120 22
Stocks turn green as investors eye Q4 results
• Tribune Business Desk
Stocks have recovered last week with investors
taking position on companies prior to the
on-going earnings season.
The benchmark index, DSEX has advanced
85 points to reach 5,671.6 points during the
past week with average daily turnover going
up by 0.23% to Tk1,074cr in comparison to a
week before at Dhaka Stock Exchange.
DS30 closed at 2,049.6 points after gaining
28.6 points over the week and DSES ended at
1,312.2 points by gaining 8.2 points.
Investors are seen taking position on
scrips that they are convinced to announce
strong earnings growth during the on-going
earnings seasons, said an analyst at UCB Capital
Management Ltd.
Roughly a third of total turnover has been among major sectors, banking and textile 25% Convertible Bonds of BRAC Bank Ltd declined
generated from banking and non-banking financial
have showed positive movement over the
the most by 8.42%.
companies.
past week.
GlaxoSmithKline(GSK) Bangladesh Limit-
LankaBangla, Baraka Power and GPH Ispat During the week, Premier Leasing appreciated
ed is the only company that announced divi-
are the most traded stocks last week while
the most by 20.8% and Subordinated dend last week, which was 500% cash. •
Most Traded Price Weekly change MOVEMENT OF Movement DSEX INDEX of LAST DSEX WEEK Index last week
LankaBangla 67.4 9.42% 5680
Baraka 51.5 0.78% 5660
GPH Ispat 48.0 5.73% 5640
Islami Bank 43.4 -2.03%
5620
BEXIMCO 35.2 1.73%
5600
RSRM Steel 84.4 1.44%
5580
BD Thai 33.1 8.17%
5560
Keya Cosmetics 16.2 0.00%
Central Pharma 35.8 15.48%
5540
DSEX (+) 1.52%
5520
City Bank 36.4 9.97%
DAY 1 DAY 2 DAY 3 DAY 4 DAY 5
Dhaka Tribune has accumulated the stock market related data primarily from Dhaka Stock Exchange website. The basis of information collected was primarily from daily stock quotations and audited/
unaudited reports of publicly listed companies. High level of caution has been taken to collect and present the above information and data. The publisher will not take any responsibility if any body uses this
information and data for his/her investment decision. For any query please email to news@dhakatribune.com.
Poll: Wall Street unanimous on US rate hike next week
• Reuters
Wall Street's top banks were unanimous on the
view the Federal Reserve will increase interest
rates at its policy meeting next week following a
stronger-than-forecast February US payrolls report,
a Reuters poll showed on Friday.
Employers added 235,000 jobs last month, more
than the 190,000 forecast among economists polled
by Reuters. A drop in unemployment, more people
seeking jobs and a rebound in wage growth were
other upbeat aspects of the report that economists
at these top banks reckoned give the Fed a green
light to raise rates by a quarter point, to 0.75-1%.
"It ticks all the boxes for the Fed to move next
week," said Michael Hanson, chief US macro strategist
at TD Securities in New York. The Fed previously
raised rates by a quarter point, to 0.50-0.75%, in
December. TD is one of the 23 primary dealers, or
banks that do business directly with the Fed.
To be sure, the path of rate increases in 2017
could change, according to primary dealers.
It may speed up if the economy accelerates because
of possible tax cuts, looser regulations and
infrastructure spending from President Donald
Trump and a Republican-controlled Congress. On
the other hand, it may be slowed by overseas developments
including surprise election results in Europe,
which could roil financial markets, they said.
Barring unexpected outcomes, the widely anticipated
rate increase in less than a week would
be followed by two more hikes later in 2017, 20
dealers said in the poll. Two dealers forecast only
one more hike after a March move, while one dealer
saw three more increases.
A Reuters poll conducted on Feb 3 showed 14
primary dealers surveyed say they expected no
rate hike in March with 12 of them anticipating
such a move by the end of the second quarter.
The dramatic shift in expectations for a March
hike came even before Friday's strong jobs figures.
Last week, a group of Fed officials including
Chair Janet Yellen hammered the point that they
were prepared to lift rates at the Fed's upcoming
meeting as the economy is near full employment
and inflation to closing in on their 2% goal.
Traders' view on a March increase, as measured
by interest rate futures FFH7, jumped to 80% from
30% in reaction to a barrage of hawkish rhetoric
from policymakers. Their view on the possibility of
a rate hike strengthened to 93% after Friday's jobs
report, according to CME Group's FedWatch tool.
After March, however, primary dealers were split
on the timing for when the Fed would raise rates during
the rest of 2017. Twelve of the 23 dealers saw a
rate increase to 1.00-1.25% by the June 13-14 meeting,
while 10 expected such a move by the Fed's September
meeting, the latest Reuters poll showed.
Six of them forecast the Fed's final rate hike for
2017 at its September meeting, bringing its target
range to 1.25-1.5%. Fourteen primary dealers said
they saw the Fed raising rates to 1.25-1.5% at its
Dec 12-13 meeting. •
Dhaka Tribune
DSE NEWS
GLAXOSMITH: The Board of Directors has
recommended 500% cash dividend for the
year ended on December 31, 2016. Date of
AGM: 20.04.2017, Time: 11:00 AM, Venue:
Hotel Agrabad, Agrabad C/A, Chittagong.
Record date: 23.03.2017. The Company
has also reported EPS of Tk. 53.51, NAV per
share of Tk. 214.65 and NOCFPS of Tk. 71.86
for the year ended on December 31, 2016 as
against Tk. 68.99, Tk. 216.15 and Tk. 84.42
respectively for the same period of the
previous year.
SHEPHERD: The Company has reported its
profit after tax Tk. 13.64 million and basic
EPS Tk. 0.13 for the 3 (three) months period
ended on 31 December 2016 (October- December,
2016) as against profit after tax of
Tk. 21.08 million and basic EPS of Tk. 1.10 for
the same period of the previous year. It is to
be noted that basic EPS has been calculated
based on weighted average Pre-IPO paid-up
number of shares i.e. 104,205,986 for 2016
and 19,119,400 shares for 2015. However,
considering Post-IPO 124,205,986 number
of shares the Company's basic EPS for
the 3 (three) months period ended on 31
December, 2016 would be Tk. 0.11. For the
period of 6 (six) months (July to December,
2016) ended on 31 December, 2016 profit
after tax was Tk. 35.53 million and basic EPS
was Tk. 0.34 as against profit after tax of Tk.
37.12 million and basic EPS of Tk. 1.94 for the
same period of the previous year. However,
considering Post-IPO 124,205,986 number
of shares, Company’s basic EPS would be
Tk. 0.29 for 6 (six) months period ended on
31 December, 2016 (July - December, 2016)
and NAV per share would be Tk. 17.59 as on
31 December, 2016.
KEYACOSMET: EPS was Tk. 0.49 for October-December,
2016 as against Tk. 0.17 for
October-December, 2015; EPS was Tk. 1.02
for July-December, 2016 as against Tk. 0.60
for July-December, 2015. NOCFPS was Tk.
(0.76) for July-December, 2016 as against
Tk. (0.40) for July-December, 2015. NAV
per share was Tk. 14.38 as on December 31,
2016 and Tk. 13.36 as on June 30, 2016.
RSRMSTEEL: Md. Younus Bhuiyan and
Mrs. Shamsun Nahar Rahman, both are
Sponsors/Directors of the Company, have
expressed their intention to sell 13,00,000
shares and 8,00,000 shares out of their
total holding of 58,16,760 shares and
66,82,400 shares respectively at prevailing
market price (in Block Market) through
Stock Exchange within next 30 working
days.
DOREENPWR: The Board has recommended
110% final cash dividend (i.e. total 310%
cash dividend for the year 2016 inclusive of
200% interim cash dividend which has already
been paid) for the year ended on December
31, 2016. Date of AGM: 27.04.2017.
Record Date: 21.03.2017. Time and Venue of
the AGM will be notified later. •

OPINION 7
Why a trade deficit is no bad thing
DT
Sunday, MARCH 12, 2017
THE lAST
WORD
TRADE DEFICIT TO EXPORTS RATIO OF BANGLADESH
40%
• Tim Worstall
It was Adam Smith who told us that
there’s nothing more ridiculous
than worrying about the balance of
trade.
And since all of economics is either
a footnote to Smith or wrong
we should probably take note of his
point.
Which means that some of the
worrying about Bangladesh’s trade
balance is misplaced.
Yes, it’s true, the current account
deficit is up, some $754m in
the July-January period as opposed
to the surplus in the same period
last year of $2.47bn.
But as Smith said this is nothing
to worry about – the important
thing we need to grasp is why we
should not, in point of fact, worry
about it.
The first reason is an over-arching
theoretical one – why is it that
we partake in trade at all? It is to
gain access to those lovely imports
that foreigners make better than
we do. To think otherwise, to think
that it is exports which make us
richer is to fall into the pernicious
trap of mercantilism.
I export my labour from my
household, most certainly I do, and
in return I get lovely money. But
that money is not what improves
my lifestyle – what I buy with it –
that food and clothing and machinery
which are the imports into my
household – are what make my life
better.
Thus imports are the reason
that we trade, exports being just
the hard work we’ve got to do to be
able to afford them.
We can make the same point another
way.
It’s entirely possible that we
don’t divide and specialise labour
at all. Many Bangladeshis live this
way right now out in the country,
or used to until very recently.
Pretty much everything the
household consumed would be
produced by that household. We
have another name for those people
too – the absolutely poor.
Once we do divide and specialise
our labour then we must
trade the resultant production.
We export our own production not
because we gain some heartfelt
pleasure from seeing other people
consuming what we have sweated
blood and tears over, but because
we are then able to import those
things that others have worked to
produce.
It is often a mistake to equate an
economy to a household, certainly
35%
30%
25%
20%
15%
10%
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Data collected from Bangladesh Bank website as of March 10, 2017
it is on such things as borrowing,
currency and so on.
But on trade they are indeed
conceptually equal, there’s no difference
at all between household
trade, regional trade and trade
across national boundaries.
All of them make us richer as we
gain access to those imports of what
others make better than we do.
So, one way of looking at a trade
deficit is that we’re getting richer,
we’re gaining access to more imports,
the very thing we conduct
trade for in the first place.
The second point is a more detailed
one about how trade statistics
are done. We rather like the
idea of foreigners putting their
capital into Bangladesh in order to
aid in developing industry and the
country. We’re well aware that this
also makes us richer, drives up local
wages.
But we must recall that the balance
of payments does balance,
always and everywhere. This is not
arguable, it is a definition.
We have the balance of trade in
goods, then we add the balance in
services – remittances are really
a service export so we’re positive
there – and that gives us the balance
of trade, the very thing which
Smith told us not to worry about.
That’s also, with minor adjustments,
the current account.
The capital account, instead of
it being foreigners sending us money
for things we have made and
sent them, is foreigners sending us
money to make things which stay
in Bangladesh. Foreign money to
build a building, make a power station,
construct a factory
And the balance of payments is
the current account plus the capital
account.
The capital account will always,
and everywhere, be the inverse of
the balance on the current. For, as I
have said, the balance of payments
always balances.
So what happens when someone
decides to build a factory in
an export zone, just as an example?
We know that this will provide
well paying jobs for Bangladeshis,
well paid relative to the local alternatives
that is, those jobs making
people richer.
We generally regard this as a
good thing, therefore, this sort of
foreign direct investment. But that
What we cannot do is employ foreigners’ money to make
us richer and also have a trade surplus. This is not arguable,
this is definitional. So, what is it that everyone would prefer?
Get richer or do that ridiculous thing of worrying about the
balance of trade?
means, inevitably, that we will have
a surplus on that capital account.
And as the BoP does always balance
that means that we must have
a deficit on the current account at
the same time.
It’s entirely possible for us to say
that we want to have a balanced
current account. But that also
means that we must develop the
country only with the capital that
we have, we cannot allow foreigners
to send more in.
Equally, we can welcome with
open arms that foreign capital, but
that does mean that we’ll have to
run trade deficits of some size.
dhaka tribune
External Sector
of Bangladesh
in FY16
Exports (EPB)
USD 34.2bn
Imports (FOB)
USD 39.7bn
Trade Deficit
USD 5.5bn
Remittance Inflow
USD 14.9bn
Current A/C Balance
USD 3.7bn
Source: Selected Indicators, BB
What we cannot do is employ
foreigners’ money to make us richer
and also have a trade surplus.
This is not arguable, this is definitional.
So, what is it that everyone
would prefer? Get richer or do that
ridiculous thing of worrying about
the balance of trade? •
Tim Worstall is a Senior Fellow at the
Adam Smith Institute in London.