$1.13b project planned to boost logistics at Bangabandhu Shilpa Nagar

The Bangladesh Economic Zones Authority (Beza) is initiating a $1.127 billion project to enhance logistics facilities, including multimodal connectivity, at Bangabandhu Sheikh Mujib Shilpa Nagar, the country’s largest industrial zone in Chattogram. The project aims to transform it into a climate-resilient smart industrial zone with associated infrastructure and renewable energy facilities, including comprehensive road connectivity, a logistics hub with jetties, utility infrastructure, and an intelligent transportation system. The objective is to complete the logistics development by 2030, after which the zone, situated in the Mirsarai-Sitakunda-Sonagazi area of Chattogram and Feni districts. However, businesses have expressed concerns following a government decision that factories outside economic zones or designated areas, such as BSCIC, will no longer receive utility connections and banking services. This decision has raised apprehensions, given that Bangabandhu Shilpa Nagar will not be fully functional for another six years. According to the preliminary feasibility study, $1.025 billion will be sourced from development partners. Beza aims to start investment activities in logistics soon after completing preparatory work, including reviews, within the next year.

Source: https://www.tbsnews.net/economy/113b-project-planned-boost-logistics-bangabandhu-shilpa-nagar-875926

High bank borrowing by government to crowd out private sector

The government plans to borrow Tk 137,500 crore from the banking sector in the fiscal 2024-25 to finance the budget deficit. If the Bangladesh Bank does not provide any fund, the entire amount will need to come from the commercial banks. The government’s plans to finance its deficit budget for fiscal year 2024-25 by borrowing Tk 90,700 crore from foreign sources and Tk 160,900 crore from domestic sources. The government plans to borrow Tk 137,500 crore from banks to finance the deficit. Mansur was addressing a post-budget discussion titled “Budget Insights: Challenges and Opportunities” organised by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and the PRI at Police Plaza Concord Shopping Mall in the capital. If the central bank strictly sticks to those and refrains from printing money to finance the budget deficit, the inflation rate should start coming down within 6 months to 9 months.

Source: https://www.thedailystar.net/business/economy/news/high-bank-borrowing-govt-crowd-out-private-sector-3633426

Tax waivers to lure businesses into special zones should continue

Berger Paints purchased land in Bangabandhu Sheikh Mujib Shilpa Nagar as part of an expansion plan drawn up after it felt encouraged by tax exemptions promised on profits from operations in the special economic zone. Not only Berger but also all companies have been assured of tax advantages by the Bangladesh Economic Zone Authority (BEZA), designed for business operations in all economic zones and hi-tech parks. Berger has been developing land and building its third factory in the Shilpa Nagar since 2018 and is expecting to begin production there in the middle of 2026. It was caught off guard when it learnt that the proposed FY25 budget suggests discontinuing tax benefits to the firms that have factories in places other than the special zones. An SRO (statutory regulatory order) issued by the revenue board in 2015 announced 100 per cent tax exemptions on earnings of production units in the special zones for 10 years from the commencement of the operation. While the FY25 budget removes companies like Berger from the list of beneficiaries, it also reduces the tenure of entitlement to zero tax from 10 years to 3 years for businesses that operate only in the special zones.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/tax-waivers-to-lure-businesses-into-special-zones-should-continue-1718215581

SME Foundation to give out loans at 6pc interest rate

The SME Foundation will provide another Tk 4.5 billion in loans to small and medium-sized enterprises (SMEs) from its ‘Revolving Fund’ at an interest of 6.0 per cent, aiming to help expand their businesses. The entrepreneurs can avail loans ranging between Tk 100,000 and 2.5 million under easy terms while the ceiling is Tk 5.0 million for the purchase of capital machinery. To this effect, the SME Foundation has inked deals with 23 banks and non-bank financial institutions at a ceremony held in a city hotel on Tuesday evening. The ‘Revolving Fund’ was created under the stimulus package announced by Prime Minister Sheikh Hasina to recover the losses caused by the COVID pandemic. So far, the SME Foundation has distributed loans of about Tk 7.16 billion to 8,286 entrepreneurs in three rounds of different schemes.

Source: https://today.thefinancialexpress.com.bd/trade-market/sme-foundation-to-give-out-loans-at-6pc-interest-rate-1718215358

2 more RMG factories get LEED certification, total number now 220

Two more readymade garment (RMG) factories of the country have achieved the recognition of the LEED certification this month, raising the number of the LEED certified factories to 220. As of May this year, the number of the LEED certification factories was 218, with 12 factories earning the certification in the past five months. LEED (Leadership in Energy and Environmental Design) is a globally recognised green building rating system that emphasizes environmental responsibility and energy efficiency. Of the 220 certified factories, 84 have achieved the highest, platinum rating, 122 have earned gold, 10 silver and 4 are certified, as reported by the BGMEA. The newly certified factories are Cotton Club & Cotton Clout-Building 1 of Gazipur’s Kashimpur and Graphics Textiles Limited of Dhaka’s Dhamrai, with achieving 71 and 78 scores in the gold category.

Source: https://www.tbsnews.net/economy/rmg/2-more-rmg-factories-get-leed-certification-total-number-now-220-875476

Japanese investors invited to invest in EZs

Ambassador of Bangladesh to Japan Mr. Shahabuddin Ahmed urged Japanese investors to invest in special and other Economic Zones (EZs) of Bangladesh as Bangladesh has offered fiscal and non-fiscal incentives to foreign investors. Shahabuddin Ahmed came up with the call while speaking at a seminar on “Investment opportunities in economic zones in Bangladesh” held at the Seminar Hall of JETRO Headquarter, Tokyo on Wednesday. The Embassy of Bangladesh in Japan and Japan External Trade Organization (JETRO) jointly organised the seminar. Executive Chairman of Bangladesh Economic Zone Authority (BEZA) Shaikh Yusuf Harun was present at the seminar. The BEZA Executive Chairman shared BEZA’s initiatives to establish 100 economic zones with aims to create 10 million jobs in Bangladesh.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/japanese-investors-invited-to-invest-in-ezs-1718215809