Business Supplement Issue-27

More documents

Recommendations

Info

4 Sunday, August 27, 2017 DT Week in Review Export: Bangladesh yet to fully tap Asian markets Bangladeshi exports to Asian countries are still low due to absence of proper preferential trade agreements and quality products, even though there are huge trade opportunities in the region. Exporters and trade analysts say that removing non-tariff barriers, signing trade-friendly bilateral agreements and proper usage of preferential trade deals can boost Bangladesh’s exports to the region. They also said that high dependency on developed countries in North America and Europe could risk export earnings. According to Export Promotion Bureau data, Bangladesh’s exports to Asian countries were worth $4.16bn in FY2016-17, which is 12% of total exports. At the same time, European Union (EU) imported 55.83% ($19.35bn) of Bangladesh’s total exports and the United States 21.19% ($7.34bn). For a developing country, Bangladesh has made remarkable progress as an exporter of manufactured goods, especially readymade garments, but it’s highly reliant on the markets of developed countries. The export basket is dominated by the readymade garment (RMG) sector, which accounts for over 80% of total exports, followed by several other products including agricultural products, frozen food, jute and jute goods, and leather. In the last fiscal year, against a target of $37 billion, Bangladesh’s overall export earnings stood at $34.83bn, which is 1.68% higher than the previous year’s $34.25bn. Of the amount, the RMG sector alone earned $28.15bn. Bangladesh has set an export target of $37.5bn for the current FY2017-18, which is a 1.35% rise from last year. “Since there is an economic meltdown in traditional export destinations like Europe and the US, Bangladesh will Dhaka Tribune have to find new markets. Grabbing more Asian markets can help reduce dependency on the developed countries or a certain region,” AB Mirza Azizul Islam, former finance adviser to a caretaker government, told the Dhaka Tribune. “With the similarities in culture and taste, the markets of some of the Asian nations can help Bangladesh boost its export sector,” he added. Asia’s population is 4.47 billion, which is 59.6% of the global total. China is the most populous nation in Asia with about 1.38 billion followed by India with 1.32 billion. “Bangladeshi apparel products are sold in China, Japan, Indonesia and some other countries, but not all of that is exported directly. International buyers buy and import from us and then sell the products in these countries with their brand,” Exporters Association of Bangladesh President Abdus Salam Murshedy told the Dhaka Tribune. Since there are non-tariff barriers in the way of exporting to these countries, the government should take initiatives to sign deals to remove them, said Salam, also managing director of Envoy Group. Even though over $1bn worth of products were exported to Japan in the last FY, the market there is yet to be tapped fully as the island nation is a market for high-end products, a level Bangladesh has not reached yet, he said. But, Salam added, the exporters would enter the high-end markets soon and Bangladeshi exports in the Japanese and other South Asian markets will increase in near future. Moreover, non-tariff barriers, location issues, countervailing duty and anti-dumping duty on jute and jute goods by Indian government are also major obstacles for Bangladeshi exporters. • Muhith: One house one farm project to close by 2021 Finance Minister AMA Muhith has said the One House One Farm project will be closed within 2021 while the Palli Sanchay Bank will remain open. He made the above statement at the inauguration of the online portal of Palli Sanchay Bank at his secretariat office on August 24. Senior Secretary of Finance Division Hedayetullah Al Mamun, Senoir Secretary of Financial Institutions Md Eunusur Rahman, Chairman Palli Sanchay Bank Dr Mihir Kanti Manjumdar and others also spoke at the event. Mihir Kanti said: “No bank gives any loan with 8% interest rate. But the Palli Sanchay Bank does. The bank also provides seasonal loans.” He also added that this specialised bank will set up branches in the future at the union level. • Vegetable prices soar as floods damage farmland The prices of vegetables have skyrocketed in the city’s kitchen markets as the monsoon floods devastated large areas of farmland. Of them, the prices of onion have risen almost 100% from a month ago. The vegetable was selling at between Tk50 and Tk55 per kilogram at different city markets on August 21, up from Tk30-35 in late July. Prices of garlic, ginger including different spices and vegetables including eggplants, pointed gourd, brinjal also increased while the Eid-ul-Azha, one of the biggest Muslim festivals, is only a few days away. The retails said they were facing supply shortage due to floods, resulting in the price hikes. “Farmlands have been damaged by the floods in different parts, which has contributed to the surge in vegetable prices,” Tofazzal Hossain, a vegetable vendor at Karwan Bazar, told the Dhaka Tribune. Trading Corporation of Bangladesh said the supply crunch of vegetables due to the deluge heat up the kitchen markets in Dhaka and elsewhere in the country and increased the prices of essentials up to 102% in August from July. Onion prices shot up by 90-102%, 15 kinds of vegetables by 50-100%, chili by 110%, garlic by 20%, riverine fish except Hilsa by 20-30%, local chicken by 10%, cardamom by 8% and cinnamon by 5% on August 18 than the previous weeks, according to the data of TCB and Department of Agricultural Marketing (DAM). • Bangladesh looks to Free Trade deal with Turkey A MoU for Free Trade Agreement (FTA) was signed with Turkey on August 23 at the Turkey-Bangladesh Business Forum – 2017. FBCCI’s First Vice President Sheikh Fazle Fahim and Turkish Exporters’ Assembly member of sector council Basaran Bayrak signed the agreement. Speaking at the forum, Commerce Minister Tofail Ahmed said: “Bangladesh is very interested to sign the FTA with Turkey which will increase trade and commerce. According to the EPB data, in last fiscal year, Bangladesh exported $631.63 million worth of goods to Turkey; while Bangladesh imported goods and services worth $212.30 million from Turkey. “Since the tariff rate is very high for Bangladeshi products entering into the Turkish market, I hope, the FTA will open a new window of economic opportunities for two countries. “The bilateral trade is currently worth $843.93 million. The signing of the FTA would help boost the export of RMG, pharmaceuticals, frozen fish, dry food, jute and jute products, leather, plastic and ceramic products, ship building and light engineering products to Turkey. • Government report proposes 3.5% interest subsidy on home loan for civil servants A proposal for new home loan facilities for civil servants will make the banking and real estate sectors more vibrant, according to a draft report submitted to the Finance Division recently. The report suggests that the government provides an annual interest subsidy of Tk700 crore to Tk980 crore on home loan allocations. Of the subsidies, 3.5% interest will be borne by the government and 5% by civil servants. Under the proposal, the maximum ceiling for home loans will rise to Tk75 lakh and the total loan amount will be Tk20,000 crore to Tk28,000 crore. “Since the banking and real estate sectors are not in a good shape, the investment by around 2.1 million civil servants will rejuvenate the sectors,” a Finance Division official said, requesting anonymity. Civil servants who have only 15 years to serve will enjoy the government home loan facilities. “The government hopes that corruption among civil servants will drop significantly if they own an apartment as they retire,” the official said. An official in the Finance Division said a committee formed in August last year recommended an 8% interest rate on the loan, of which 3.5% interest subsidy will be provided by the government while borrowers will repay the rest. The sub-committee recommended a total interest subsidy of Tk950 crore, the official told the Dhaka Tribune. He added that the county’s banking sector currently has an amount of Tk130,000 crore in “idle money”. Rehab vice-president Liaqat Ali Bhuiyan said the idle money in the banks should be used for building homes for state employees. “If the government provides land at low price, realtors will offer 600- 700 square feet apartments at up to Tk20 lakh for civil servants,” he said. The Finance Division’s final report will be submitted to the cabinet committee for its consent to implement the policy. The proposal was recently submitted to the Finance Division Additional Secretary Nazmul Sheikh, but he did not agree with the sub-committee proposal, terming it “illogical”. •
Corporate News 5 Sunday, August 27, 2017 DT Bangladesh House Building Finance Corporation (BHBFC) is going to organise a three daylong fair titled, Housing Finance Fair 2017 on October 19 at a hotel in Dhaka, said a press release. The corporation’s managing director, Debasish Chakrabarty made the announcement at a press conference BRAC Bank Limited has recently made a contribution to the Prime Minister’s Relief and Welfare Fund to help people affected by flood across the country. BRAC Bank Director SN Kairy hands over a cheque of Tk3 crore to Prime Minister Sheikh Hasina First Security Islami Bank Limited has recently donated Tk3 crore to the Prime Minister’s Relief and Welfare Fund for people affected by flood. The bank’s vice-chairman, Mohammed Abdul Maleque and incumbent Managing Director Quazi Osman Ali hand over the cheque to Prime Minister Sheikh Hasina Islami Bank Bangladesh Limited has recently donated Tk5 crore for flood victims to the Prime Minister’s Relief and Welfare Fund for people affected by flood. The bank’s vice-chairperson, Md Shahabuddin, hands over the cheque to Prime Minister Sheikh Hasina National Bank Limited has recently donated Tk3 crore to the Prime Minister’s Relief and Welfare Fund for people affected by flood. The bank’s Directors, Rick Haque Sikder and Ron Haque Sikder along with Directors of Sikder Group, John Haque Sikder and Sean Haque Sikder, are seen during the handover of cheque to Prime Minister Sheikh Hasina LankaBangla Finance Ltd (LBFL) has recently signed an agreement with DHS Motors Limited (HONDA) in order to provide its customers with special discounts on purchases from DHS Motors. Head of Retail Finance at LBFL Khurshed Alam and DHS Motors GM Md Mukhlesur Rahman signed the agreement Social Islami Bank Limited has recently made a donation to Bangladesh Thalassaemia Hospital. The bank’s additional Managing Director, AMM Farhad, hands over a cheque to the hospital’s advisor, Syed Deedar Bakth NRBC Bank has recently signed an agreement with Labaid Group on providing its VISA cardholders with discounts on several facilities of Labaid Group companies. The bnak’s Executive vice-president, Kazi Safayet Kabir, and Labaid Chiep Operating Officer Al Emran Chowdhury signed the agreement Southeast Bank Limied has recently provided financial support of Tk6 lakh to the family of Late Shaikh Sirajul Hoque, former officer-in-charge at Uttarkhan Police Station. The bank’s Managing Drector, M Kamal Hossain, hands over the cheque to Monjila-Tul-Ferdousi, wife of the police officer Mercantile Bank Limited has recently donated Tk3 crore to the Prime Minister’s Relief Fund for people affected by flood. The bank’s Chairperson, AKM Shaheed Reza, and Mercantile Bank Foundation Chairpersona Shahidul Ahsan hand over the cheque to Prime Minister Sheikh Hasina
Page 1 and 2: DT VOL1, ISSUE 27 | Sunday, August
Page 3: Interview 3 Sunday, August 27, 2017
Page 7: OPINION 7 DT Sunday, August 27, 201

Business Supplement Issue-27

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?