Overhaul of pension scheme in the offing

The government will form a pension authority within next two years to oversee the pension scheme for the private sector. It may also bar the retired government staff from selling more than 50 percent of their pension benefit from next fiscal year. The decision was taken at a high level meeting yesterday at the secretariat with Finance Minister AMA Muhith in the chair. After the meeting, Muhith told reporters that many government officials sell their pension benefit at a time, due to which they face many problems later on. None will be allowed to draw more than 50 percent of his/her pension money at a time, the minister said. The rest of the amount can be drawn every month in the course of his/her life. In his budget speech earlier in June, Muhith said the existing pension system would be reformed and an initiative would be taken to introduce a pension system in the private sector. At yesterday’s meeting, the finance division presented a concept paper about the initiative, and it was decided that a proposal in this regard will be placed in the cabinet meeting, said a finance ministry official.

Source: http://www.thedailystar.net/business/overhaul-pension-scheme-the-offing-1272055

EPB to add service sector export receipt to monthly data

The Export Promotion Bureau has taken a move to include the country’s export earnings from the service sector in the export data the government agency releases on monthly basis, with a view to showing the real picture of the sector. Currently, only export earnings from computer services under the sector are added to the data, but there are 10 more subsectors which remain out of the EPB export statistics. With the inclusion of earnings from all subsectors, the amount of total export earnings of the country would be increased by more than USD3 billion, EPB officials said. The country’s export earnings were around USD33 billion in last financial year of 2015-2016. On August 9, the EPB sent a letter to the Bangladesh Bank governor, seeking from the central bank export earnings data of the service sector on monthly basis. EPB vice-chairman Mafruha Sultana requested BB governor Fazle Kabir to take necessary initiatives so that the EPB can get the export earnings data of the service sector from the statistics department of the central bank on regular basis. Earlier on August 4, EPB officials also held a meeting with BB officials over the issue. EPB officials said that the BB had agreed to provide the export earnings data of the service sector and it might be possible for the EPB to include the data in its July-August export data.

Source: http://newagebd.net/247351/epb-add-service-sector-export-receipt-monthly-data/

Govt invites local businesses to oil, gas exploration

Local private sector businesses should invest in oil and gas exploration, especially in deep sea, Prime Minister’s Energy Affairs Adviser Tawfiq-e-Elahi Chowdhury said yesterday. With the international oil prices going down, deep sea exploration is no more viable for foreign firms who have cancelled their exploration programmes, he said. “We are trying to find some ways for deep sea exploration. If someone wants to drill a well by investing some $150 million to $200 million, maybe we can take some stake in that bid to lower their risks,” Chowdhury said. “We are ready to offer contracts. We want to bring down risks for investors.” Chowdhury was addressing a seminar on “new investment horizon: blue economy”, organised by Dhaka Chamber of Commerce and Industry at its auditorium.

Source: http://www.thedailystar.net/business/govt-invites-local-businesses-oil-gas-exploration-1273141

Cost of exports to Germany soars after cargo ban

The cost of shipments to Germany, Bangladesh’s second largest export destination, has increased at least 5 cents per kilogram for suspension of direct cargo flights from Dhaka to Berlin for security reasons. Germany’s federal civil aviation authority imposed a ban on direct flights from Dhaka to Berlin on June 27 citing Bangladesh to be a ‘high risk’ country due to poor security at Hazrat Shahjalal International Airport. As a result, businesses now have to carry the goods after re-screening at another airport, said Mahbubul Anam, president of Bangladesh Freight Forwarders Association. The cargos are sent from Dhaka by Emirates, Etihad, Saudia and Oman airlines to different airports in Middle East. From there, the goods are re-screened before loading them onto a Berlin-bound flight. Before the suspension of the direct flight, the German national flag carrier, Lufthansa, used to carry 80 tonnes of goods from Bangladesh in its lone weekly fight from Dhaka to Berlin. Germany is the third country, after Australia and the UK, to impose a ban on direct cargo flights from Bangladesh on security grounds. Of the total German-bound cargos, almost all goods are garment items, as Germany is the second largest apparel export destination for Bangladesh after the US, he said. Germany is also the largest air cargo destination for Bangladesh, according to Anam.
Source: http://www.thedailystar.net/business/cost-exports-germany-soars-after-cargo-ban-1273177

Panel for fixing LPG price at rational levels

A government-assigned body has suggested setting liquefied petroleum gas (LPG) tariff at retail level not more than 1.5 times of landed cost or cost and freight (C&F) price of raw materials, officials said. The recommendation equally applies to the fuel produced by both government and private sectors, now that the government is bent on expanding LPG usage for all sections of consumers, including households. By calculating international market prices during May 2015 to April 2016 of Propane and Butane, from which LPG is produced, the panel suggested setting the price of government-produced 12.5-kilogram (kg) LPG cylinder at BDT 732.0 and private sector’s 12kg cylinder at BDT 703 at retail level. According to officials the gazette price of 12.5kg LPG cylinder since July 2012 is BDT 700. However, there was no LPG cylinder available in the market at this price. The prices of 12.5kg LPG cylinder stand between BDT 1,100 and BDT 1,300 based on different companies, it was found. But consumers allege that cylinder of state-owned LP Gas Limited which is supposed to sell 12.5kg LP gas at BDT 700.0 is hardly found on the market.

Source: http://print.thefinancialexpress-bd.com/2016/08/20/149674

Local and Global Stock Indices

World Commodities

Major Currencies Exchange Rates Movement in Last Seven Days

*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.