IT exports shoot up 52pc in Jul-Apr
Information technology (IT) exports from Bangladesh are snowballing as global clients have swamped local IT companies with orders for various software, data processing and other digital service solutions. As such, local IT companies saw their export earnings shoot up 52 per cent year-on-year to $369 million in the July-April period of fiscal 2021-2022, according to the Export Promotion Bureau (EPB). The industry raked in $242 million from exports in the first 10 months of fiscal 2020-21 before going on to cross the $300-million mark by the end of the year as Covid-19 turbocharged global demand. Receipts from ITES exports, namely data processing and web hosting, grew by around 61 per cent year-on-year in the July-April period to $277.9 million. Similarly, IT consultancy services raked in $31 million in the first 10 months of fiscal 2021-22, up from $22 million a year ago, while software exports rose to $51 million from $42.6 million at the same time. The export earnings of Brain Station 23, one of the top software exporters in Bangladesh that employs 600 local tech talents, grew by 40 per cent during the July-April period of 2021-2022.
Free fall of stocks as core index sinks below 6100
Stocks witnessed yet another massive fall on Sunday, with the key index of the prime bourse sinking below 6,100-mark, as the jittery investors continued their sell-off to exit from the market. The market saw a sharp decline from the beginning of the session as panic-driven investors dumped their holdings amid fears over a possible economic depression in the coming months plunging below the 6,100-mark instantly. Finally, DSEX, the prime index of Dhaka Stock Exchange (DSE), slid 74.07 points or 1.20 per cent to settle at 6,052, the lowest in nearly 13 months since June 29, 2021. The core index shed more than 314 points while the market-cap wiped out Tk 204 billion in just nine trading days to Tk 4,984 billion, lowest in 14 months. The foreign currency reserves dropped below $40 billion, hitting a two-year low last week, while local currency is depreciating against the dollar and June inflation hit a nine-year high to 7.56 per cent. The investors’ activities were mostly focused on the textile sector, capturing 27.6 per cent of the day’s total turnover, followed by miscellaneous (12.7 per cent) and pharmaceuticals (11.5 per cent). All the sectors faced heavy sales pressure, leading to the share price erosion of more than 83 per cent stocks. Out of 382 issues traded, 318 declined, 42 advanced and 22 issues remained unchanged on the DSE.
Macroeconomy out of comfort zone: CPD
The country’s macroeconomic situation has moved beyond the comfort zone due to a rising inflation, depleting foreign exchange reserves, widening trade deficit, falling Taka, and ongoing power and fuel shortage, according to the Centre for Policy Dialogue (CPD). Terming the stagflation – high inflation combined with high unemployment and stagnant demand – very rare since 1970, she said Bangladesh is also at economic risk.