Economy will return to high growth path next fiscal year: UN
Bangladesh’s economy will return to the high growth trajectory in the next fiscal year overcoming the scarring impacts of the coronavirus pandemic, according to a United Nations report. The country’s gross domestic product (GDP) will grow by 7.6 per cent in the fiscal year of 2021-22 following a 5.1 per cent expansion in the current fiscal year, said the World Economic Situation and Prospects 2021 report produced by the United Nations Department of Economic and Social Affairs. The UN forecast is higher than the projection made by the World Bank and is in line with that of the International Monetary Fund (IMF). The WB has said Bangladesh’s economy will expand by 3.4 per cent in the FY22 from 1.6 per cent in the current fiscal year. The IMF has forecast 7.9 per cent growth in the FY22. The government has lowered the GDP growth projection for the current fiscal year to 7.4 per cent taking into account the fallouts of the coronavirus pandemic. Several South Asian countries ran fiscal deficits of about 10 per cent of GDP in 2020, and government debt is forecast to grow significantly for most countries. economic diversification is low or minimal in many South Asian economies, with the near single-trade economies of Bangladesh (garments), Iran (oil) and the Maldives (tourism) especially exposed to external demand shocks. Garment shipment accounts for more than 80 per cent of annual exports of Bangladesh.
Stocks fall, Beximco companies end rally amid profit taking
Concerns of Beximco Group witnessed corrections yesterday after leading from the front to raise the benchmark index of the Dhaka Stock Exchange (DSE) to a three year high just a week ago. DSEX, the benchmark index of the DSE, dropped 94.55 points, or 1.63 per cent, to 5,695 yesterday. Stock prices of Beximco Limited, whose paid-up capital is Tk 876 crore, fell 8.1 per cent while Beximco Pharmaceuticals with a paid-up capital of Tk 446 crore dropped 4 per cent. IFIC Bank, which has a paid-up capital of Tk 1,619 crore, fell 2.84 per cent and Shinepukur Ceramics, another listed concern of Beximco Group, declined 8.39 per cent. It has a paid-up capital of Tk 146 crore. Among the 49 listed insurance companies, only 8 rose while 37 dropped. The regulator fixed the interest rate on margin loans at no higher than 12 per cent, and the trigger sales came as a result. Turnover, one of the important indicators of the market, fell 29 per cent to Tk 1,125 crore. Beximco topped the turnover list, trading shares worth Tk 142 crore followed by Energypac Power Generation, Robi Axiata, LankaBangla Finance, and Beximco Pharmaceuticals. Jute Spinners topped the gainers’ list, rising 7.53 per cent followed by Agrani Insurance, BATBC, Daffodil Computers, and Green Delta Mutual Fund. Energypac Power Generation shed the most, falling 9.93 per cent followed by Shinepukur Ceramics, Beximco, Robi Axiata and Midas Financing. The port city bourse also dropped. The general index of the Chittagong Stock Exchange (CSE), CASPI, fell 299 points, or 1.77 per cent to 16,578 yesterday.
NRB Commercial Bank’s IPO subscription begins Feb 3
The subscription for initial public offering (IPO) of NRB Commercial Bank is set to start from February 3 and it will continue until February 9, which will remain open for all kinds of investors. The fourth generation bank, which will raise Tk 120 crore through the IPO, is the first private commercial bank in the last 12 years to get listed with the stock market. Earlier in 2008, First Security Islami Bank got listed with the stock market. NRB Commercial, a private commercial bank, will issue 12 crore ordinary shares at a face value of Tk 10 each. With the IPO proceeds, the bank will use Tk 110 crore to buy government securities, Tk 6 crore in the secondary market for buying shares and the rest for IPO related expenses. The bank’s weighted average earnings per share for the last five years and net asset value per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020. The bank has been booking higher profits for the last few years. Its gross profit rose 22 per cent year-on-year to Tk 323 crore in 2020, according to the banks’ financial statements. The bank established on February 20, 2013 had a pre-IPO paid-up capital of Tk 582 crore. The bank has 83 branches across the country till 2020.
E-payment of import taxes over Tk 2 lakh a must from July
Business will require to pay import tariff and taxes over Tk 200,000 electronically from the first day of July this year as the National Board of Revenue (NBR) is gradually automating customs systems in order to provide faster service and bring about transparency. The NBR made payments of import tariffs and taxes totalling more than Tk 2 lakh compulsory from April 1 this year for businesses who bring goods through Customs House, ICD Dhaka. And so, e-payments for import duties and taxes of over Tk 2 lakh will be made compulsory for the rest of the customs houses from July this year. The duty that has been exempted would have been added to the total revenue collected and Bangladesh’s revenue-GDP ratio would have been higher in that case. Bangladesh’s tax-GDP ratio is less than 10 per cent.