DT e-Paper 15 March 2017

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DT 10 Business WEDNESDAY, MARCH 15, 2017 CAPITAL MARKET SNAPSHOT: TUESDAY DSE Broad Index 5,681.3 0.4% ▲ Index 1,309.7 0.2% ▲ 30 Index 2,043.6 0.0% ▲ Turnover in Mn Tk 9,648.0 -3.6% ▼ Turnover in Mn Vol 330.0 -2.4% ▼ CSE All Share Index 17,608.9 0.3% ▲ 30 Index 15,298.3 0.3% ▲ Selected Index 10,675.2 0.3% ▲ Turnover in Mn Tk 672.0 7.2% ▲ Turnover in Mn Vol 28.4 20.7% ▲ Telcos for tech neutrality before 4G auction • Ishtiaq Husain Mobile operators Grameenphone and Robi Axiata Limited want implementation of Tech Neutrality before announcing 4G auction to ensure quality of service. The major market players in the mobile telecommunication industry have made the demand while Bangladesh Telecommunication Regulatory Commission (BTRC) is preparing for 4G auction. According to mobile operators, technology neutrality would allow mobile operators to use the 900 MHz and 1800 MHz bands for 3G services. As the 900 MHz and 1800 MHz bands provide better coverage than 2100 MHz, mobile internet services could be provided more efficiently in rural areas. Ekram Kabir, vice president, communications and corporate responsibility, Robi Axiata Limited, said spectrum is also one of the basic and key requirements for launching 4G/LTE. Hence the governmnet should consider spectrum auction and technology neutrality in all existing bands prior to issuing the 4G/ LTE License, he said, adding that without compatible mobile devices, consumers will not be able to experience the 4G/LTE. In summary, the government initiatives will determine whether the country is ready for the quality 4G/LTE. “First and foremost we would like to see technology neutrality introduced to ensure the quality of services and enhanced customer experience,” said Mahmud Hossain, chief corporate affairs officer, Grameenphone Ltd. The benefits of technology neutrality are manifold: more efficient use of spectrum, better quality, speed and lower prices. Mobile internet services do not levy any additional charge for introducing technology neutrality. Most EU governments, USA, Canada, Thailand, Pakistan, Malaysia and many other markets are experiencing tech neutrality. 4G is the fourth generation of wireless mobile telecommunication technology, succeeding 3G, as defined by the International Telecommunication Union (ITU). Since its first commercial launch in 2009, 4G has become the fastest developing system in the history of mobile communication. However, BTRC is working on to launch 4G in 700 MHz band which is not practically implementable. Even, adoption in 700 MHz band in Europe is very low. Seeking anonymity, an official of a mobile operator said if the regulator finally announces to launch 4G without technology neutrality in 700 MHz band, the price of data will not be affordable. Currently, 4G-enabled handset in 700 MHz in the country is only 4% which is a major obstacle to launching fourth generation wireless mobile telecommunication technology. Most of the frequencies – 900 MHz and 1800 MHz – held by mobile operators are currently limited to be used for 2G. Only 2100 MHz band has been made technology neutral and is currently being used for 3G services. The way of improving 3G services and introducing 4G in the country would be to allow technology neutrality in all existing spectrum bands which will give mobile operators flexibility to meet consumer needs and bring Bangladesh on a par with global best practices. “We welcome the initiative on 4G/LTE and hope that the government will conduct effective consultation with the industry players in formulating 4G/LTE Licensing Guideline keeping in mind the National Telecom Policy objectives,” Ekram Kabir said. “Like any other players in the market, Robi is ready to adopt and launch new technology. We are continuously investing for further infrastructure readiness. Fiber is the backbone of 4G/LTE and the government needs to adopt policies to allow mobile operators to invest and lay fibers.” Asif Ahmed, head of corporate communications, Banglalink, said 4G is an integral part of Banglalink’s digital transformation promise. “We welcome 4G with spectrum neutrality. However, for that to happen, we have requested the regulator to first ensure that spectrum is made available.” “Another request we have made to the regulator is to enable us to sell our towers which will help us further invest for spectrum and network expansion in Bangladesh.” • A jute entrepreneur receives crest at the concluding ceremony of the five-day jute products fair at Krishibid Institute in Dhaka yesterday. A total of 95 entrepreneurs were awarded for their contribution to jute sector MAHMUD HOSSAIN OPU Jute entrepreneurs honoured • Nawaz Farhin LG’s mosquito away TV sets • Tribune Business Desk LG Electronics Bangladesh launched Mosquito Away TV, which will act as mosquito repellent. The TVs will be available at all authorised LG showrooms at Tk32,900 for a 32-inch set while a 43-inch will be at Tk51,900, said a statement. LG wants to dominate Bangladesh market with customised products, it said. • The government awarded entrepreneurs for their contribution to promoting jute products at the recently held jute fair. The five-day fair began on March 9 and ended on March 13 at Krishibid Institution Bangladesh in the capital organised by Jute Diversification Promotion Centre. A wide array of jute products were showcased in the fair that drew a total sale of jute goods around Tk3.65 crore and a supply order worth around Tk4.12 crore. A total of 95 entrepreneurs, who participated in the fair received crests on the concluding day of the fair. The fair was held in conjunction with the celebration of first-ever National Jute Day and also for expanding its domestic and international market since the sector has huge potentials for economic development. The award recipients include CORR The Jute Works, Sonali Aansh Industries, Prokritee, Deshi Mart, Fine Fair Curve, Torongo, Brinta Jute Holding Crust and Golden Grid. The government initiative is to bring back the lost glory of jute and the fortune of jute growers, said Textiles and Jute Minister Mohammad Emaz Uddin Pramanik at the concluding ceremony of the fair. According to State minister for textiles and jute Mirza Azam, “Production of polythene like products from jute has already started, which is in fact better than polyethylene. Within 60 days, it can be mixed with soil.” Studies found that jute can be produced in three seasons – monsoon, winter and summer, which Production of polythene like products from jute has already started, which is in fact better than polyethylene. Within 60 days, it can be mixed with soil can help increase production of diversified jute products, added Azam. Bangladesh exported jute products worth $800 million and jute bales worth $135.18 million in 2015- 16 fiscal year. According to Jatiya Sangsad data, Bangladesh exports jute products to 118 countries and raw jute bales to 13 countries. •
‘Focus on human capital development in budget’ • Ibrahim Hossain Ovi The government should put an emphasis on human capital development through quality education, tax ratio to GDP and new driving force of economy in the upcoming budget for inclusive and sustainable growth. Trade analysts, economists and academics came up with the recommendations at a Capacity Building Workshop on Budget Reporting for Journalists in Dhaka yesterday. They also stressed the implementation of budget as it is going through continuous declining trend for the past few years. “Increasing tax to Gross Domestic Products (GDP) ratio is a big challenge, which remains at a single digit,” said former Bangladesh Securities and Exchange (BSEC) chairman Faruq Ahmad Siddiqi. The government should focus on policy reforms in this regard. Value Added Tax (VAT) and income tax would be the next source to revenues as earnings from customs duty are on the wane, said Faruq, also former commerce secretary. Usually, corporate tax system is simple across the globe, but in Bangladesh it is a complex issue and a little bit higher, he added. “There are several slabs in our corporate tax system such as 25% for publicly traded company, 35% for publicly non-traded companies while separate slabs for financial sector and non-financial sector.” To earn more revenues, corporate tax system should be simplified to draw investment from home and abroad, the former bureaucrat said, stressing that policy reforms are a must. Implementation of rules is very important to prevent tax evasion, or else, no ratio would be viable for the government to collect revenues, he added. “In the budget, the government gives importance on new investment, but does not concentrate on the maintenance of existing projects,” said former adviser to the caretaker government, Wahiduddin Mahmud. If investment is not made for the maintenance of existing projects, how will the new projects come into being and see success? he posed a question. “Implementation of budget shows continued decline,” said Mohammad Ali Taslim, professor Inflation rises slightly in February • Asif Showkat Kallol Inflation rose to 5.31% in February from 5.15% in the previous month due to rise in edible oil and meat prices, according to Bangladesh Bureau of Statistics figures released yesterday. Food inflation increased to 6.84% from 6.53% and non-food inflation increased to 3.7% from 3.10%. Planning Minister AHM Mustafa Kamal presented the data at the National Economic Council conference room after a meeting of the Executive Committee of National Economic Council. However, the average inflation rate in last 12 months fell to 5.41% from 6.15% in the same period a year ago, Planning Minister AHM Mustafa Kamal. The price of beef increased with impacts on local food prices. Because of rise in edible oil prices in international market, inflation rate in Bangladesh increased, Mustafa Kaman said. Business 11 of Dhaka University, Department of Economics. The government has to increase efficiency of implementation. In the last fiscal year, budget implementation was 76.26%, which was 80.92% in the previous fiscal year. “The size of budget is a reflection of the government aspiration, but the efficiency of budget implementation is very much needed to materialise the aspiration,” said Hossain Zillur Rahman, chairman To earn more revenues, corporate tax system should be simplified to draw investment from home and abroad BBS Director General Amir Hossain was also present at the meeting. According to the BBS data, The point-to-point overall inflation rose to 5.14% in rural areas from 4.09% in January. The non-food inflation declined to 2.46% in February from 2.52% in the previous month. In urban areas, the overall inflation rate rose to 5.62% in the point to point basis from the previous month’s 5.57%. Food inflation rose to 7.22% which was 7.11% in the previous month. Non-food inflation remained same at 3.91%. On the other hand, the index of local wage rate has increased in that period. The general wage rate increased to 6.88% from 6.65%. The farm wages rose to 6. 99% from 6. 70%. The sector-wise wages rose to 6.65% from 6.46%. The rate of wages in the service sector also rose to 6. 80% from 6.77% in the previous month. • of Power and Participation Research Centre. In the upcoming budget for the fiscal year 2017-18, the government has to think about the present status of driving force of the economy, which contributes to the growth, he added. In parallel with the existing growth driver, the government has to mull over new economic growth driver, plus concentrate on human capital development through ensuring equality education, said Zillur, also a former adviser to caretaker government. • DT WEDNESDAY, MARCH 15, 2017 BB sends team abroad wto probe weak remittance inflow • Tribune Business Desk As the falling trend of the inflow of remittances is becoming a matter of concern for the country, two teams of experts of Bangladesh Bank (BB) are visiting Saudi Arabia, Malaysia and Singapore to find reasons behind the declining trend of remittances, reports BSS. BB economic advisor M Akhtaruzzaman is leading a three-member team visiting Saudi Arabia where over 80 lakh Bangladeshis have been working and the country received a record US$2955.55 million in remittance in Fiscal Year 2015-16. General Manager of BB Governor’s Secretariat Dr M Habibur Rahman is leading the other team visiting Malaysia and Singapore, the Southeast Asian countries being the major sources of remittances for Bangladesh. The central bank through the Foreign Ministry has also asked the Bangladesh missions abroad to take necessary steps in getting the cooperation of law enforces of the respective countries to stop the use of illegal channels by the Bangladesh workers in sending remittances home. Bangladesh migrants sent home US$1337.14 million from Malaysia and US$387.24 million from Singapore in 2015-16. According to BB, Bangladesh received US$1478.42 million in remittances from Saudi Arabia, US$744.46 million from Malaysia and US$204.61 million from Singapore for the first eight months of FY17. But inward remittance maintained a sluggish trend from the very beginning of FY17 and the country received a total of US$8,112.52 million for the first eight months of FY17 though the amount was US$9774.09 million during the same period of FY16. In February 2017, the country received only $936.20 million, the lowest ever, while the amount was $1136.27 million in February 2016. Subhankar Shah, executive director of the central bank, said the falling currency rate against dollar and low oil prices have hit the incomes of the Middle Eastern countries where most Bangladeshi migrants work. “Some NRBs are also using informal channel, including mobile banking, for sending their money home,” he added. BB has already asked different mobile banking operators to enhance further their surveillance in the mobile money transactions. The central bank has also enhanced its own supervision on mobile money transactions, besides lowering the ceiling of such transactions to check any abuse of the services. • Radisson Blu Dhaka is going to launch a food festival titled “Taste of Australia” on March 17 at its Water Garden Brasserie Restaurant COURTESY
Page 1 and 2: SECOND EDITION WEDNESDAY, MARCH 15,
Page 3 and 4: News 3 WEDNESDAY, MARCH 15, 2017 PM
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Page 7 and 8: 8 militants held across country •
Page 9: World EU headscarf ban ruling spark
Page 13 and 14: Opinion 13 Minorities in the neighb
Page 15 and 16: The death of truth In a world of fa
Page 17 and 18: What’s on 17 WEDNESDAY, MARCH 15,
Page 19 and 20: Sports 19 DT WEDNESDAY, MARCH 15, 2
Page 21 and 22: Man City's De Bruyne aiming for Cha
Page 23 and 24: Francophonie festival commences in

DT e-Paper 15 March 2017

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