Private sector driving Bangladesh towards $1-tr economy

Private companies are spearheading Bangladesh’s growth with their energy and optimism, putting the economy on a path to cross the $1-trillion mark by 2040, according to a top global consulting firm. The milestone will be achieved because of private firms’ drive to become world-class global businesses and their ability to recruit the best talent, build globally recognised brands, and compete with leading multinational companies, said the Boston Consulting Group (BCG) in a report. The “Trillion-Dollar Prize Local Champions Leading the Way” report calls private sectors firms as emerging champions. “Bangladesh’s emerging champions are willing to push themselves to embrace more winning traits to go truly beyond great and lead the nation towards becoming a trillion-dollar economy by 2040,” it said. “Bangladesh’s emerging champions are innovative companies that have grown rapidly, created a structural advantage in the domestic market and are ready to pursue global ambitions.” The success of these champions echoes the path of exemplary enterprises in other countries, doubling down on domain expertise, domestic success, and quality talent.

Source: https://www.thedailystar.net/business/economy/news/private-sector-driving-bangladesh-towards-1-tr-economy-3178946

Dollar crisis will ease by January: Salman F Rahman

The ongoing dollar crisis in the country will ease by January next year, said Salman F Rahman, private industry and investment adviser to the prime minister. He said this to journalists while talking to reporters during a visit to Mujibnagar Muktijuddho Smriti Complex (Mujibnagar Memorial) in Meherpur today. The value of the dollar has increased in the international market and that has affected the country’s market, he said. “There has been a crisis all over the world. No one knows how far it will go. But Bangladesh will not fall into any such crisis due to Prime Minister Sheikh Hasina’s visionary thinking and planning.”

Source: https://www.thedailystar.net/business/economy/news/dollar-crisis-will-ease-january-salman-f-rahman-3179921

Bank lending rate being uncapped

Borrowers should brace for costlier funds as lending-rate caps are being phased out to give a much-coveted profitability raise to bankers who lament inflationary pressure on their earnings, sources say. Bangladesh Bank (BB) plans to lift the limits on interest on credits in phases from the third quarter (Q3) of this fiscal year, but ‘unofficial’ hints already begin giving the banks a free play. In accordance with the plan, officials say, the central bank is set to lift the interest- rate cap on SMEs first, to be followed by working capital and industrial term loan in tandem. This reverting to open money market allows banks to raise the rate on interest to “balance out the crushing pressure of inflation”. As part of the move to reintroduce market-driven lending rate, the central bank has verbally but unofficially allowed the banks to enhance interest rate for consumer goods, sources at the BB said. Seeking anonymity, a BB official said they had discussed the matter in recent meetings and decided to remove the ceiling on lending rate in phases so that it does not trigger any panic to any quarter.

Source: https://thefinancialexpress.com.bd/economy/bank-lending-rate-being-uncapped-1669430791