Investment-GDP ratio hits 30pc on public investment

The share of investment in gross domestic product, for the first time, exceeded 30 per cent benchmark in the last fiscal year 2016-2017, mainly riding on rising public investment. The growth of private investment, the main driver of the economy, in the GDP remained meager in the year. Experts and economists expressed doubts over the quality of the increased share of investment in GDP in the year as the rise occurred mainly based on public investment while private investmentgrowth remained almost stagnant. According to the final GDP data of the Bangladesh Bureau of Statistics, overall investment-GDP ratio rose by 0.86 percentage points to 30.51 per cent in FY 2017 from that of 29.65 per cent a year ago. The share of public investment in GDP increased by 0.75 percentage points and stood at 7.41 per cent in the year which was 6.66 per cent in FY 2016. On the other hand, the share of private investment rose by merely 0.11 percentage points to 23.10 per cent from 22.99 per cent, the data released on Thursday showed. Planning minister AHM Mustafa Kamal revealed the details of the GDP at a press conference held at National Economic Council auditorium at Agargaon in Dhaka.

Source: http://www.newagebd.net/article/28547/investment-gdp-ratio-hits-30pc-on-public-investment

Exports up 7.0pc in July-October

Country’s export earnings grew by 7.03 per cent to US$11.50 billion during first four months of the current fiscal year (FY 2017 18), according to official data released Thursday. The earnings were $10.79 billion in the same period (July-October) last FY. In October 2017, the exports grew by 6.42 per cent to $2.84 billion, the Export Promotion Bureau (EPB) data showed. The overall exports in the first four months slightly (0.74 per cent) fell short of the period’s target. In October, however, the exports were 6.28 per cent higher than the month’s strategic target. Readymade garment shipments fetched $9.43 billion, marking 6.99 per cent growth during the period as compared to $8.82 billion in the same period of last FY. The woven items registered 3.85 per cent growth in earnings to $4.45 billion than that of $4.28 billion in the same period of FY 2016-17. The earnings from knitwear export during the period grew by 9.95 per cent to $4.98 billion from $4.53 billion in the corresponding period of last FY. Jute and jute goods exports rose by 16.46 per cent to $345.01 million from $296.26 million in the same period of FY17. The earnings from agriculture products grew by 20.22 per cent during the period while home textiles by 20.37 per cent.

Source: http://today.thefinancialexpress.com.bd/print/exports-up-70pc-in-july-october-1510248870

Inflation falls to 6.04pc in Oct

Inflation came down slightly to 6.04 percent in October riding on the decline in food prices, official figures showed. Last month, general inflation decreased 8 basis points from September’s 6.12 percent, according to the Bangladesh Bureau of Statistics (BBS), which released the data yesterday. Food inflation fell 25 basis points to 7.62 percent last month after reaching a 38-month high of 7.87 percent in September. Prices of all varieties of rice, a key determinant of overall inflation as it accounts for 23 percent of the commodity basket in the consumer price index, went down. In recent months, rice prices rose to record highs, reflecting the dwindling supplies following flood-induced losses to the main boro crop coupled with reduced production and imports in 2016. About 20 lakh tonnes of boro crop were damaged this year, according to the food ministry. In September, coarse rice price in Dhaka city was Tk 52.54 a kg in contrast to Tk 34.62 a year earlier. Similarly, price of fine rice in September was Tk 62.46 to Tk 66.30, which was Tk 53.90 to Tk 55 a year earlier.Rice prices dropped about Tk 2 a kg for all varieties of the staple in October.

Source: http://www.thedailystar.net/business/inflation-falls-604pc-oct-1492441

Local companies, MNCs see moderate rise in foreign shareholders’ stake

The quantity of stakes held by foreign shareholders in some listed local and multinational companies rose moderately during December 31, 2016 to October 31, 2017. IDLC Finance, Olympic Industries, Square Pharmaceuticals, British American Tobacco Bangladesh Company (BATBC), ACME Laboratories, City Bank, BRAC Bank, Delta Brac Housing Finance Corporation and Beximco Pharmaceuticals witnessed rise of foreign stakes during the period.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/local-cos-mncs-see-moderate-rise-in-foreign-shareholders-stake-1511018018

Women’s overseas jobs rebound in October

More than 100,000 Bangladeshi women workers have secured overseas jobs in the last 10 months to October, the government has said. Of the total, two-thirds of the women were recruited by the Kingdom of Saudi Arabia (KSA), where they were employed mainly in the housekeeping sector, according to the data of the state-run Bureau of Manpower, Employment and Training (BMET). Sector-insiders said although the outflow of women workers dropped slightly after May, it picked up from the last month. They expressed the hope that the upward trend in recruitment will continue over the remaining part of the year. The BMET statistics showed that in the January-October period, around 100,136 women workers went overseas with employment. Of them, some 66,773 workers went to Saudi Arabia, up from 57,604 in 2016. Jordan has become the second-largest recipient country of Bangladeshi female workers recruiting 17,400 (17.4%) female migrants, followed by Oman 7,879, Qatar 2,775, and the United Arab Emirates (UAE) 2,712 in the last 10 months.

Source: http://today.thefinancialexpress.com.bd/last-page/womens-overseas-jobs-rebound-in-october-1510940517

Budget financing biggest challenge, says CPD

Financing the 2015-16 fiscal budget will be its biggest challenge, Centre for Policy Dialogue (CPD) said today placing doubts on whether the revenue target can be met. The think-tank expressed this in its reaction on the BDT 2950 billion budget, the biggest ever in history, placed at the Jatiya Sangsad yesterday by Finance Minister AMA Muhith. The mega budget aims 7% growth and targets over BDT 2008 billion in revenue – 84% of which will be provided by the National Board of Revenue (NBR) in the form of VAT, income tax, import duty and others. The think tank believes that sufficient initiatives have not been taken in the budget to boost private investment in the country which has remained sluggish over the past two years.

Source: http://www.thedailystar.net/business/financing-the-budget-the-challenge-cpd-92551

BTRC draft policy sets 4G speed at 20 Mbps

Bangladesh Telecommunication Regulatory Commission has drafted a set of standards for quality of service for the mobile network operators, asking them to ensure minimum 20 Mbps (megabyte per second) downlink speed once 4G service is launched in the country. Although the BTRC is yet to issue licenses to the mobile network operators for 4G, the fourth generation of broadband mobile network technology, the telecom regulator drafted the standards which would be mandatory for the MNOs. The draft standards, titled 4G/LTE Quality of Service (QoS) Parameters for Cellular Mobile Telecom Operators, said that the operators, which would be awarded 4G licenses, must have to ensure 20 Mbps download speed for data throughput. Besides, the mobile phone operators would have to maintain 5 Mbps uplink speed for data throughput. Once the standards for 4G service are finalised, mobile phone operators will have to follow the standards in running the service in entire 4G service area and sub-service area as well. The BTRC will check the speed through drive test on random basis for any zone/area/sub-service area/node. In case of any complaint regarding the QoS issues, the commission may conduct audit or drive test by itself or by any other agency assigned by the commission.

Source: http://www.newagebd.net/article/28546/btrc-draft-policy-sets-4g-speed-at-20-mbps

Grameen Phone (GP) responds to ‘tax evasion’ reports

Chief Executive Officer (CEO) of Grameenphone (GP), Michael Foley, in a statement on Thursday said the company is committed to comply with the final resolution of court, although it has difference of opinions regarding the tax claim worth BDT 20.15 billion lying stuck regarding the pending cases. •. The statement said the company kept ‘relevant’ provisions in its books in full compliance with all international and local accounting standards. The amounts in the cases highlighted by the Large Taxpayers Unit (LTU) under Value Added Tax (VAT) Wing of National Board of Revenue (NBR) represent in aggregate 6.7% of GP’s total contribution to the government of Bangladesh over the last five years, the statement also said. GP sent the statement in response to the Thursday’s media reports on tax evasion allegations against the company in an internal letter from LTU-VAT to Bangladesh Securities and Exchange Commission (BSEC). In the letter, the revenue board has raised a claim of unpaid VAT and irregular tax exemptions amounting to BDT 20.15 billion.

Source:
http://today.thefinancialexpress.com.bd/last-page/gp-responds-to-tax-evasion-reports-1510940631
http://www.newagebd.net/article/28549/gp-says-it-keeps-relevant-provisions

Prospects of medicines exports to Iraq getting dimmed

Exports of pharmaceutical products from Bangladesh to Iraq are getting delayed due to a lack of progress in talks despite interests shown by the Arab country. Earlier, the Iraqi ministry of health had expressed its interests to import pharmaceuticals and hire medical professionals from Bangladesh to rebuild its shattered medical sector. The Bangladesh embassy in Baghdad, in a letter to the ministry of foreign affairs on February 28, 2017, cited the Iraqi government’s interests to import pharmaceuticals and enhance cooperation with the country’s health sector.

Source: http://today.thefinancialexpress.com.bd/print/prospects-of-medicines-exports-to-iraq-getting-dimmed-1511019948

Vegetables shipment slumps on high prices

The export of vegetables has marked a sharp fall in the wake of spiralling prices of the agricultural produce on the local market, said market-insiders. The export volume slumped by 37 per cent to $9.0 million in the September-October period of the current fiscal year (FY ’18), compared with $13 million in the same period of the last year, according to the Export Promotion Bureau (EPB). However, the total export of vegetables in the first four months (July-October) of FY ’18 reached $26.8 million. In the local market, the prices of vegetables ranged between Tk 60 (pointed gourd) to Tk 200 (coriander leaf) ($ 0.74 to $2.43) a kg, compared to the price range from Tk 40 to Tk 120 in the corresponding period of last year, according to the Department of Agricultural Marketing (DAM). The DAM data showed that vegetables prices hit the record high in October following two spells of flooding. “Shipments of vegetables to Europe have marked a gradual decline in the last few months as high prices of vegetables in the domestic market have discouraged traders from exporting the produce,” said Shariful Islam Sourav, proprietor of Sohan Enterprise.

Source: http://today.thefinancialexpress.com.bd/print/vegetables-shipment-slumps-on-high-prices-1510935234

Fringe sectors have huge prospects

The local light engineering parts makers can supply 40 of the 900 components needed for assembling a motorcycle, meaning the sector has ample growth opportunities. The demand for the remaining spare parts for the growing sector is met through imports, said Ashraf Ibn Noor, vice-president of Bangladesh Engineering Industries Owners’ Association. On the other hand, the local light engineering sector can supply 70 percent of the spare parts to the local and export-oriented bicycle industry as the sector has grown a lot over the years, he said. Currently, Bangladesh mainly needs to import chains and gears for assembling the bicycles meant for domestic and export purposes. Four or five bicycle exporters use the local spare parts to shorten the lead-time. Similarly, if the government provides proper policy, the local manufacturers can also supply the power tillers, which are imported to meet the demand.

Source: http://www.thedailystar.net/business/fringe-sectors-have-huge-prospects-1492423

‘E-commerce will boost national economic growth’

There are 50,000 people actively engaged in e-commerce with projections of 1,000,000 people being employed in the sector over the next 10 years. E-commerce sector brings enormous opportunities to the business sector as it makes 24/7 business possible. It makes the economic activities more dynamic. It is a fast growing sector; the annual turnover from this sector was Tk1,000 crore in 2016. Around 50,000 people are currently employed in e-commerce services in Bangladesh. This sector has huge potential that the government must tap into. E-commerce industry will boost the country’s economic growth, but for that it must be recognised as a sector that can contribute to the national economy. Besides the government, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other such organisations have to consider this sector profitable and include it in their business policies.

Source: http://www.dhakatribune.com/business/commerce/2017/03/05/e-commerce-boost-economic-growth/

Local and Global Stock Indices

World Commodities

Major Currencies Exchange Rates Movement in Last Seven Days

*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.