World Bank (WB) to provide loan of USD 515 million for two projects

The World Bank is set to provide a loan of USD 515 million financial assistance for two projects in the power transmission and insurance sectors in the country. Out of the total amount, the World Bank will provide USD 450 million for Enhancement and Strengthening of Power Transmission Network in Eastern Region Project. The project will expand the electricity transmission network in the eastern region, covering greater Cumilla, Noakhali and part of greater Chattogram. The project will also expand the existing grid network by building 13 new substations and rehabilitating an existing one. It will provide new electricity connections to some 275,000 households and 16,000 agricultural consumers and reduce power interruptions. It will also construct 290 kilometre and rehabilitate 157 kilometre of the existing transmission lines. The project will enhance transmission capacity, ensure efficient evacuation of power, and improve grid operations. The World Bank board approved the project on March 29, 2018. The Washington-based lending agency will also provide USD 65 million for Bangladesh Insurance Sector Development Project which will improve capacity of the state owned insurance corporations.

Source: https://thefinancialexpress.com.bd/economy/bangladesh/wb-to-provide-loan-of-515m-for-two-projects-1523279094

Graduation from LDC very important milestone: WB

Terming Bangladesh’s eligibility to graduate from the Least Developed Countries (LDCs) group an important milestone, World Bank (WB) country director Qimiao Fan yesterday said the country needs for taking actions to address some emerging challenges like fiscal deficit, raising the tax-GDP ratio and boosting investment in infrastructures and human development, reports BSS. “The graduation is actually a very important milestone,” Fan said while speaking at a programme arranged to release the ‘Bangladesh Development Update: Building on resilience’ here. “I think Bangladesh needs more measures to increase the domestic revenue mobilisation in this regard. I’m quite happy to see the NBR (National Board of Revenue) launching the process for preparing a medium-term revenue strategy which I think a very positive step,” he added. The WB country director said Bangladesh continues a strong development trajectory with growth in between 6-7 percent over the last couple of years, which is a strong growth. He said the strong growth has benefitted from the strengthening garment exports as well as recovering remittances. “The economy has continued to grow quite robustly and I think this continued sustained growth in Bangladesh in the last couple of decades and certainly in the last few years. It’s also very well recognised in the recent UN recognition that the country is eligible to graduate from the LDC status,” he said. Fan stressed undertaking significant reforms, attracting more women in the labour market, wooing more investment through further improving the business environment, streamlining regulatory framework in infrastructure project management particularly in the public sector, and continuing the country’s achievement in reducing poverty particularly extreme poverty.

Source: http://www.theindependentbd.com/post/145235

Economy to grow at 6.5pc in this fiscal, says WB

The World Bank has expressed its doubt over the Bangladesh’s 7.65 per cent economic growth projection for the current fiscal year (FY) raising questions about data accuracy. “The robust growth projection for the current fiscal is doubtful as some government statistics doesn’t match with it (projection),” said the bank’s lead economist in Dhaka Zahid Hussain. He made the remarks while presenting the “Bangladesh Development Update” Monday in Dhaka. Mr Hussain questioned a series of government data such as higher manufacturing growth, lower service sector growth compared to its higher job creation, higher growth amid lower labour income and remittance inflow, production capacity of the industrial sector, and almost stagnant investments. The Bangladesh Bureau of Statistics, the state statistical agency, has recently said that Bangladesh’s gross domestic product (GDP) is expected to grow at 7.65 per cent rate in the current financial year 2017-18, which is even higher than its 7.5 per cent target. In contrast, the Washington-based lender said that Bangladesh’s GDP growth is expected to grow at 6.5 per cent rate in the current FY2018.

Source:
http://today.thefinancialexpress.com.bd/first-page/economy-to-grow-at-65pc-in-this-fiscal-says-wb-1523295724
https://www.thedailystar.net/business/banking/wb-doubts-765pc-gdp-growth-estimate-1560541
http://www.newagebd.net/article/38697/wb-raises-eyebrows-over-govts-gdp-estimate
http://www.dhakatribune.com/business/2018/04/09/world-bank-gdp-growth-projected-6-5-7-range-next-2-fiscal-years/

Budget to ‘rationalise’ rate, cut layers

The budget for the upcoming fiscal year, 2018-19, would explore ways for ‘rationalising’ the existing corporate tax rate in the country, Finance Minister A M A Muhith said in the capital on Monday. “The current corporate tax rate in Bangladesh is quite high, and there are many layers depending on types (of the corporate entities),” he said after a pre-budget meeting with the editors of top newspapers. “However, we are planning to rationalise this high corporate tax rate as well as to reduce the number of layers.” “We will bring down the number of corporate tax layers to two,” the finance minister further said. The meeting also decided that the government would think of imposing tax on advertisements provided on Facebook and Google (from the country), he added. In addition, the meeting also decided to reduce the existing tax and VAT (value added tax) on newsprint and to introduce landing fee on Indian channels aired in Bangladesh.

Source: http://today.thefinancialexpress.com.bd/first-page/budget-to-rationalise-rate-cut-layers-1523295759

Iraq keen to import RMG from BD

Iraqi apparel traders are interested in importing garment products from Bangladesh mainly because of quality, Bangladesh Ambassador to Iraq Abu Maqsoud M Farhad said on Monday. “Though Iraq imports apparel from Turkey and China, Iraqi people and high officials are positive about the quality of Bangladesh-made apparel. And they are willing to buy Bangladeshi RMG products,” he said at a meeting with President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Siddiqur Rahman. BGMEA vice-president Mohammed Nasir was also present at the meeting held at its headquarters in the city. Mr Farhad stressed the need for developing business relations with Iraq to explore opportunities there. The BGMEA will take necessary measures in creating and exploring the market in Iraq, Mr Rahman said.

Source: http://today.thefinancialexpress.com.bd/trade-market/iraq-keen-to-import-rmg-from-bd-1523291179

Analyst shows ways to cut Indo-Bangla trade gap

India should source at least 5 percent of its $400 billion worth of annual imports from Bangladesh to narrow down the ever-swelling bilateral trade gap between the two countries, said a trade analyst yesterday. Bangladesh is no longer an aid-dependent nation, but a trading one, which indicates that the country has the competitiveness to meet the global demand for goods, said Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue. Even 10 to 15 years ago, Bangladesh’s aid versus trade ratio was 1:1 but now it has become 1:15, Rahman said. He spoke at the “bilateral conclave on India-Bangladesh relations, deepening cooperation and the way forward” at the Pan Pacific Sonargaon hotel in Dhaka. The Institute for Policy, Advocacy and Governance organised the discussion. Amit Datta Roy, senior research fellow at the institute, moderated the event.

Source: https://www.thedailystar.net/business/analyst-shows-ways-cut-indo-bangla-trade-gap-1560508

60 metres of metro rail to be visible this month

A partial structure of the highly anticipated metro rail system for Dhaka city is set to become visible this month with the erection of two viaducts at Dia Bari in Uttara, the starting point for the system. Viaduct is a series of spans or arches used to carry a road or railroad over a wide valley or over other roads or railroads. With the installment of the two viaducts, 60 metres of the 20.1-kilometre-long metro rail will become visible. The metro rail’s end point would be Motijheel. “All the works are going on in full swing,” said MAN Siddique, managing director of Dhaka Mass Transit Company.

Source: https://www.thedailystar.net/business/60-metres-metro-rail-be-visible-month-1560532

Creating employment for youths key to sustainable development

Experts at a dialogue on Monday laid emphasis on creating employment for young generation in order to achieve sustainable growth and development. They also called for protection of workers’ rights, expansion of social security for working people and developing a coping mechanism for addressing the challenges of automation at work. The Economic Relations Division (ERD) organised the dialogue on ‘Inclusive growth and decent work’ with support from the UNDP-funded Knowledge for Development Management (K4DM) Project. Monowar Ahmed, Additional Secretary of ERD, chaired the session. Speaking at the dialogue, Dr Khondoker Golam Moazzem, Research Director of Center for Policy Dialogue (CPD), suggested addressing the issue of emerging labour standards in the context of graduation from LDC and sustainable development goals (SDGs), as Bangladesh has to comply with the global labour standards now in addition to the national standard.

Source: http://today.thefinancialexpress.com.bd/trade-market/creating-employment-for-youths-key-to-sustainable-development-1523291102

Desktops still popular among internet users

Smartphones have made it a lot easier to access the internet, but a digital company found that desktops are still the first choice for a third of its customers across Bangladesh. In November 2017, Wizards Ad Network conducted a study on 86.19 lakh customers, of them 28 percent preferred using desktops. The figure was 30.52 percent in a similar study carried out on 66.45 lakh internet users in November 2016, the company said. However, the number of desktop users—who are mainly heavy internet users—is declining, said Imtiaz Ahmed, lead of operations of the company which mainly uses these data for commercial purposes like digital marketing campaigns and advertisements. Over 52 percent or around 45 lakh were found to be using mobile phones to access internet in 2017, which was 46.52 percent a year ago, he said. About 20.16 percent of the devices being used were tablet, phablets, smart televisions, portable media players and some other non-branded smartphones last year, Ahmed said. The company runs such studies from time to time to make digital contents more customers specific, a new trend for the country, he said.

Source: https://www.thedailystar.net/business/desktops-still-popular-among-internet-users-1560487

Building trust among retail consumers

Cyberspace has changed the way consumers have been interacting with brands over the last couple of years. The power of influence has clearly shifted onto consumers. This has prompted brands to increase engagement with their consumers to understand more about their needs and, in turn, become more responsive. However, consumers want brands to do more; they want them to become more authentic, to own up to their mistakes and even to take a stand on social and political issues. Thus, today, winning consumers’ trust has become more aligned to the business success of a brand.

Source: https://www.thedailystar.net/business/building-trust-among-retail-consumers-1560505

Relaunch of British Business Group

The British Business Group (BBG), Bangladesh has formally been relaunched at an event at the residence of the British High Commissioner in Dhaka, reports UNB. “For over 13 years the BBG has been a strong partner in Bangladesh for the British Government and a responsible and respected voice within the business community,” British High Commissioner Alison Blake said in a message on Monday. On Sunday evening, Alison Blake introduced the seven members of the new Board of Trustees of the BBG to government and business stakeholders from across Bangladesh. The newly elected Chairman of the BBG, Francois de Maricourt, Chief Executive Officer of the Hongkong and Shanghai Banking Corporation Limited in Bangladesh since 2014, spoke of his vision for the British Business Group and its future role. BBG’s primary focus will be striving to improve the business environment for British companies that operate in Bangladesh.

Source: http://today.thefinancialexpress.com.bd/trade-market/relaunch-of-british-business-group-1523291155

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