Bangladesh Economy thread

[leonblack08]

Since there is no thread on Bangladesh economy,let's start this with a good news.
Please keep this thread up and running.

Forex reserve all time high

BSS, Dhaka



Bangladesh foreign exchange reserve hits a new record on Thursday when it crossed the 8 billion US dollar-mark for the first time in the country's history.

"The reserve crossed US dollar 8 billion and the growth is a good sign for the economy," Bangladesh Bank (BB) Governor Dr Atitur Rahman told BSS on Thursday. The country needs the reserve for keeping its economy on a strong footing, he also said.

Earlier on July 5 this year, the reserve reached $7.42 billion when the country received a record $10 billion in remittance.

A recent study of the World Bank, Dhaka office, projected that the remittance inflow into the country would remain over $10 billion dollars in the current 2009- 10 fiscal year despite the fallout of the global financial meltdown. This projection indicates that the reserve would also maintain a strong position, a BB official said.

The official referred to the government initiatives to help boost remittance inflow through establishing an expatriate bank, providing training to the potential migrant workers for skill development and setting up of labour wings in Bangladesh missions abroad to protect the interests of country's expatriates overseas.

He said these initiatives would help maintain steady growth of the remittance and the reserve as well.

A recent report in the Bangladesh Economic Review, however, projected a decline in the number of Bangladeshi workers abroad. "More than 200,000 people migrated overseas for jobs in the first five months of this year is lower than about 3,78,000 expatriates in the same period last year," it said.

An official of the Bangladesh Association of International Recruiting Agencies (BAIRA) said though the overall number of outgoing workers declined, the outflow of skilled manpower increased last year.

"The skilled manpower would be able to sent home more green bucks, minimizing the negative impact of the decline in overall manpower export", he observed

http://nation.ittefaq.com/issues/200...8/news0135.htm

[leonblack08]

Local mobile phone sets to hit market in January

Star Online Report
Mobile phone sets made in Bangladesh will hit markets by January next, said the chairman of the parliamentary standing committee on post and telecommunications today.

The handsets would cost between Tk 1,500 and Tk 10,000, committee chief Hasanul Haq Inu told reporters after a meeting at the parliament complex.

He said locally-made land phone sets retailing for Tk 500 each would be available in markets next month.

Telephone Shilpa Sangstha and Cable Shilpa Sangstha took the initiative to manufacture digital land phone and mobile phone sets, fiber optic cables, solar power panel and laptop at home.

Inu said local laptop computer, fibre optic cables and solar panel would hit markets soon.


The Daily Star - Details News

[leonblack08]

Malaysian group intends to build car plant

Star Business report
The Malaysian Agate group has expressed its interest to build a car plant in joint venture with local the Walton High Tech Industries, officials of both the sides disclosed it yesterday.

The group will also import Walton-made motorbike and freeze and market those in Malaysia and some other countries.

“Bangladesh is a big market for cars and other motorised vehicles. Production cost will be relatively cheaper because of huge surplus labours,” said Agate Group Managing Director Sultan Abdul Quadir at a press briefing at the Walton headquarters at Motijheel in Dhaka.

The group has also planned to invest in the country's power sector and human resource development, Quadir said.

Agate's proposals include setting up 1,000-megawatt power plant based on coal fired facilities, medical schools and other training facilities to create qualified nurses and other technicians and imparting training to the local people with a duration ranging from three months to three years for overseas job market.

In the field of international trade, the delegation on behalf of the Malaysian government expressed its desire to export 1.5 million tonnes of palm oil to Bangladesh.

Quadir expressed his interest during a meeting with Commerce Minister Faruk Khan at his office Sunday.

Agate Group operates duty free outlets to sell cigarettes, cosmetics, jewellery, leather goods, perfumes, fashion wear, watches, textiles and electrical goods in Malaysia. The company also operates colleges to provide courses in engineering, electronics and information technology.

It involves in software development for finger print identifications, general security systems and warfare related technological equipment.

The group has a coalmine in Indonesia and a 1,200-megawatt power plant in Gujarat in India.

Walton Directors Mahbubul Alam and Abul Bashar Howlader were present at the press conference.

The Daily Star - Details News

[leonblack08]

Remittance hits new monthly high

Expats send home $937m ahead of Eid-ul Fitr

Bangladeshis working abroad remitted US$ 937 million in August this year --- the highest monthly inflow in history thanks largely to the forthcoming Eid-ul Fitr festival, officials said Thursday.

"The remittance amount in August is a new record after June," a senior official of the Bangladesh Bank (BB) told the FE, adding that $919.10 million was remitted in the last month of the previous fiscal year.

The August figure is up by $52.53 million from July, according to the central bank statistics released on Thursday.

BB officials said the record rise in remittance is due to the ensuing Eid-ul Fitr, the biggest religious festival for the Muslims, when traditionally migrant workers send home increased amount of money.

"Despite facing hard times due to the global recession, many workers saved more money and worked more hours in an effort to send higher amount to their families and relatives back home," said an official.

The August total took the remittance figure in the first two months of the current fiscal to $1.823 billion, registering an 18.19 per cent growth over the corresponding period of the previous fiscal.

Officials said the latest figure also shows that despite the slowdown of overseas jobs, inflow of money has maintained a robust trend --- a continuation of last fiscal year when remittance grew 22.41 per cent.

Overseas jobs for the country's unskilled and semi-skilled workers plunged by 30 per cent in August as the main job markets for Bangladeshi migrant workers continued to face the onslaught of the global meltdown.

The state-run Bureau of Manpower, Employment and Training (BMET) said 38,434 people found jobs abroad in August this year, down from 54,708 of the corresponding period of 2008.

In the first eight months of the year, as many as 327,359 Bangladeshis found jobs abroad, a fall of 38 per cent than the same period of the last year.

The World Bank has projected that despite the massive job squeeze for Bangladeshi migrants, the country would still receive nearly $11 billion in the current fiscal year.

"We think the amount could be higher than the World Bank projection. We have sent record number of workers abroad in 2007 and 2008. The robust remittance flow is due to the carried over effect of the last two years," another BB official said.

The central bank earlier took a series of measures to encourage expatriate Bangladeshis to send their hard earned money through formal banking channel instead of the illegal "hundi" system to boost the country's foreign exchange reserves.

As part of the measures, the BB has issued four more licences to three commercial banks in the last month for setting up exchange houses in different parts of the world aimed at expediting remittance inflow.

The central bank has also issued more clearances to the local banks for establishing contacts with overseas exchange houses through drawing arrangements.

The central bank has, so far, given approval to establish 280 exchange houses and set up 820 drawing arrangements abroad to boost flow of remittance through formal channels.

Four state-run commercial banks and dozens of private commercial banks have also stepped up efforts to increase remittance flow from the Middle East, the United Kingdom, Malaysia, Singapore, Italy and the United States.

"We are establishing new contacts with overseas exchange houses so that our overseas workers can find it easy to send money back home. We're also setting up our own exchange houses," Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed told the FE.

The country's foreign exchange reserves stood at $9.149 billion Thursday due to the robust remittance.

http://www.thefinancialexpress-bd.co.../04/78096.html

[DarkStar]

Great news for the Bangladeshi economy!

[tauheedameen]

@DarkStar: Despite these good news, current price hike and syndicate cannot be stopped.

[tauheedameen]

Price control move pays off little

Basic commodity prices are on the rise despite frantic efforts by the government to control market, and promises from traders, during Ramadan.

To this end, the commerce ministry resorted to fixing prices of some of the daily necessities. The other government measures include strong market monitoring where the apex trade body Federation of Chambers of Commerce and Industry stretched its hands, introduction of price charts at shops in kitchen markets and open market sales of some items by state-run Trading Corporation of Bangladesh in Dhaka.

Market surveys show that these measures are yet to pay off as much as expected.

FBCCI in its latest visit to some kitchen markets in the capital on Saturday found a downward trend in the prices of essentials, except for sugar. An abundant commodity supply had led to this downtrend, the businessmen's forum also found. The business leaders, however, admitted to the fact that essentials' prices were not below or at par with the government fixed rates.

Annisul Huq, FBCCI's president who led the team to the kitchen market, said sugar prices remain high.

He found that the sweetener was selling at Tk 48-Tk 50 per kg at retail level, whereas Commerce Minister Faruk Khan alerted the traders that its price should not cross Tk 42 a kg.

Potato price remained static at Tk 27-Tk 28 per kg.

The wholesale rate of potato at cold storage gates has been fixed at Tk 22-Tk 23 a kg, sugar Tk 39, onion Tk 16-19 and garlic and ginger Tk 55-60.

During Saturday's visit, tomato was found selling at Tk 55-Tk 60 a kg, down from its previous prices of Tk 80-Tk 90 a week earlier.

Green chili was selling at Tk 80-Tk 100 per kg, lower from the previous rate of Tk 120-Tk 160. Brinjal was priced at Tk 36-Tk 40, down from last week's Tk 60-Tk 80 per kg.

The FBCCI team found chickpea selling at Tk 52-Tk 55 against Tk 60 per kg a week ago.

Sales of edible oil by TCB at fair price from the beginning of Ramadan also helped its price ease, as the FBCCI chief shared his market experience with reporters.

Meanwhile, lentil maintained its previous high at Tk 105-Tk 110 a kg because of the item's scanty supply.

Pointing his fingers at sugar price, Huq lamented that traders do not go by the government rate.

In presence of a huge number of traders at the August 20 meeting with the commerce minister, the rates of some essentials including sugar were fixed.

Besides asserting adequate stock of potato with the cold storages countrywide, Faruk Khan at that time warned of the businessmen against any artificial crisis saying that the government will immediately import 50,000 tonnes of potato to ensure a stable market.

Khan said there is no reason to panic, as the stock of basic commodities in the local market is enough.

Defending the government move to fix commodity prices, Golam Mowla, general secretary to Moulvi Bazar Baboshayee Samity who was among the meeting attendees, said sugar price here is still low compared to international market price.

He also pointed to the item's scarcity in the neighbouring countries because of its output shortfall internationally.

"The government should make a good stock of sugar right now to tackle any crisis in near future," Mowla suggested.

On lentil scarcity, he said traders could not import the item this year from India, as the neighbouring country slapped an export ban.

Imports from Syria and Turkey, the two other sources of the lentil importers, have also been badly affected this time because Kuwait has already purchased a huge quantity, Mowla pointed out.

He, however, said: "We are trying to keep the prices at consumers' tolerable level."

Meanwhile, FBCCI plans another market visit in two or three days in a bid to strengthen its monitoring drive.

Huq expects a further fall in commodity prices, but lays emphasis on the government's move to raise the supply.

The government yesterday started purchasing 1,000 tonnes of sugar through the TCB from Bangladesh Sugar Refiners Association to sell it to consumers at fair prices.

[Al-Zakir]

Malaysia to import Walton refrigerators, motorcycles

August 22, 2009 · Leave a Comment

:: The Daily Independent Bangladesh :.. Internet Edition

Malaysia to import Walton refrigerators, motorcycles
Economic Reporter

R.B. Group of Companies Ltd, a leading electrical, electronics and automobile manufacturing and marketing company in Bangladesh, will export Walton brand refrigerators and motorcycles to technology-developed country Malaysia.

The local company recently signed an agreement in this regard with a famous Malaysian company- Aget Group- at its office at Menara Safun Tower in Kuala Lumpur.

Under the agreement, at the primary stage the Malaysian company will import one lakh refrigerators and 50,000 motorcycles every year. This has already created huge enthusiasm at home and some countries abroad.

Through its marketing channels, Aget Group will sell the imported Walton brand refrigerators and motorcycles to Indonesia, Singapore, Vietnam, Myanmar and other countries.

Walton Adviser Mizanur Rahman and founder and Chairman of Aget Group Dr. Sultan Abdul Kadir signed the agreement on behalf of their respective sides.

Walton Director (Finance) Abul Basar Howladar, Managing Director of Seven C Resources Matiur Rahman, Managing Director of Deen Metal Industries Ahmed Ali and General Manager of Aget Group Engineer King Lee were also present at the signing ceremony. At the signing ceremony, Dr. Sultan Abdul Kadir expressed his interest to invest in Bangladesh saying that Bangladesh can be prosperous because of her plenty of natural resources and cheap manpower.

He also pointed out that through the agreement the relationship between the two countries would increase in future and Bangladesh would get an opportunity to expand its market in the ASEAN region.

Walton Adviser Mijanur Rhaman said: “Walton refrigerators are being exported to South Africa, Australia and some other European countries. Walton now eyes ASEAN countries for doing good business.”

A RB Group official said, “The recent economic meltdown gives Walton a competitive edge as its production cost is relatively cheaper because of lower wages.”

“Many manufacturing plants in developed countries were shut down following the global meltdown. These countries are now looking for import from developing countries,” he said.

Headquartered in Kuala Lumpur, Aget Group is one of the world leaders in power production, infrastructure development, housing, flyover construction, steel industry and finance sector. It has largely investment in Indonesia, Singapore, India, Vietnam and Myanmar. The company has also showed its interest to invest in different sectors in Bangladesh under the arrangement of RB Group of Companies.

[Al-Zakir]

Construction of Narayanganj ICT nears completion

Sat, Sep 5th, 2009 5:15 pm



Faruque Iqbal
bdnews24.com Chittagong bureau chief

Chittagong, Sep 5 (bdnews24.com)—The construction work of the country's lone river way container terminal, on the Buriganga at Pangaon in Narayanganj, is nearing completion, ushering in the possibility for transporting one hundred containers at a time from Chittagong port at minimum cost and time.

The inland terminal equipped with back up facilities and linkages to the country's main seaport is expected to start handling containers on completion of its construction work next year, the Chittagong Port Authority said this week.

Containers have until now been transported from Chittagong port to the capital by road and rail. Although transportation is relatively cheaper by rail, the high cost of road transportation greatly affects prices of goods.

Port officials and business leaders view that container transportation by river might halve shipment costs and reduce risks.

CPA chairman Commodore RU Ahmed told bdnews24.com, "The under construction inland container terminal at Pangaon is likely to launch its operation by mid or towards the end of 2010."

Seventy percent of the construction is almost complete and other infrastructures including jetty is going on at full swing, Ahmed said

Port officials estimated the construction cost of the new inland terminal at Tk 154 crore which might rise if further delayed.

On completion of construction, the terminal would be capable of handling 116,000 TEU (twenty feet equal unit) containers annually, they said

Port secretary Syed Forhad Uddin told bdnews24.com, "BIWTA has already awarded a work order to manufacture two specialised barge-type ships at Narayanganj dockyard for carrying containers from Chittagong port to Pangaon by waterway."

On top of that enlistment of private organisations with experience in related fields is underway, Farhad said

On waterway transportation of containers, Farhad said that it would be possible to transport at least one hundred containers at a time which is possible neither by rail nor road.

He also said that though a good many containers could be transported by rail, there was scarcity of container wagons, which often leads to container jam.

Chittagong Chamber of Commerce & Industries president, and former convener of the Waterway Transport Coordination Cell, MA Latif MP told bdnews24.com, "The port users are eagerly awaiting completion of Pangaon ICT as waterway shipments will halve expenditures resulting in positive impact on import and export of products."

He said that shipment of a 20 or 40 feet container from Chittagong Port to Dhaka cost Tk 40-50,000 by road while it cost Tk 10,000 by rail.

Latif said that there would be no need to unload Dhaka-bound containers from mother vessel at outer anchorage through lighter vessels once Pangaon ICT comes in to operation.

Rather, containers could be transported to Pangaon ICT direct to Dhaka by specialised ships which would save both time and money, he said

The CCCI president also said an option for waterway shipment of containers should be open for all, especially those operating coaster and lighter ships for container transportation to provide businessmen with competitive options.

He said, enlistment of only a few companies might pose a barrier to the process as government officials or officials concerned might benefit unduly, which was not desirable.

Latif said if there was option for open competition, private sector firms could supply required number of vessels, which might benefit both importers and exporters.

BJMEA first vice-president Nasir uddin told bdnews24.com said Dhaka based businessmen would reap most benefit of the new ICT.

http://bdnews24.com/details.php?cid=2&id=141950&hb=5

[tauheedameen]

Is there any news on the latest project under discussion in the cabinet? Padma Bridge.