Exports fall 3.0pc in Dec

Bangladesh’s exports in December fell three per cent from a year earlier to $3.1 billion, seven per cent below target, reports Reuters.For July-December, the first half of the country’s 2016-17 financial year, exports rose 4.4 per cent to $16.8 billion from a year earlier. Shipments of readymade garments, comprising knitwear and woven items, totalled $13.7 billion in July-December, up 4.4 per cent on-year. Exports in the last financial year that ended in June 2016 hit a record $34.24 billion, up 9.7 per cent from the previous year, on the back of stronger garment sales.

Source:
http://www.thefinancialexpress-bd.com/2017/01/04/58224/Exports-fall-3.0pc-in-Dec
http://www.thedailystar.net/business/export/exports-robust-despite-dismal-global-trade-1340413
http://www.newagebd.net/article/6271/h1-export-earning-growth-falls-to-44pc-as-dec-disappoints
http://www.dhakatribune.com/business/2017/01/05/exports-rise-4-5-first-half-fy2017/

Current account deficit keeps widening

The current account deficit was at its highest level in the country’s history during July-November period of the current fiscal year (FY) 2016-17. The deficit is being attributed by experts to fall in remittance and lower than expected level of export receipts. Last time when the current account experienced a large deficit — $447 million — was in the fiscal year 2011-12. But, it was in the negative at $726 million during July-November period of FY ’17, official statistics showed. The current account deficit is a matter of concern for the economy as it may hit the overall balance of payments (BoP) position. The BoP, however, still remains surplus at $1.9 billion, down by $141 million from the same period of the past financial year. According to experts, if both current account and private capital account turn deficit, then the BoP runs into deficit; that is, the central bank is losing reserves. When BoP becomes negative, then the International Monetary Fund (IMF) intervenes and provides capital in aid. Exports grew by 6.15 per cent during the period while imports by 9.5 per cent. It also showed that remittance fell by nearly 16 per cent during the period under review. Economists view the trend with concern but opine that there should not be any ‘panic’ as it may rebound if proper steps are taken to mop up remittances.

Source:
http://www.thefinancialexpress-bd.com/2017/01/05/58275/Current-account-deficit-keeps-widening
http://www.thedailystar.net/business/current-account-deficit-widens-sliding-remittance-1340395
http://www.newagebd.net/article/6273/trade-deficit-rises-by-23pc-in-jul-nov

Summit signs deal to build $500m LNG terminal

Summit Group has signed an initial contract with Petrobangla to set up a liquefied natural gas terminal on Moheshkhali Island in Cox’s Bazar at a cost of about $500 million. Summit LNG Terminal Company, a unit of Summit Group, will develop the floating facilities in 18 months after signing the final contract, the company said in a statement yesterday. The floating terminal will supply 500 million cubic feet of natural gas per day. The LNG will cost the government $0.45 per 1,000 cubic feet of natural gas. Summit will transfer the facilities to Petrobangla after operating it for 15 years. Summit will implement the project jointly with US-based GE as equity investment partner, and plans to implement the LNG terminal project with its own funds. LNG will be the easiest, most cost-effective, environment-friendly and quickest solution to meet the primary fuel demand as the current supply of gas will start declining in 2018. This is the third LNG-related agreement the government has signed so far. In December, Petrobangla signed an initial agreement with India’s energy company Petronet to set up an LNG re-gasification terminal on Kutubdia Island and a pipeline at an estimated cost of $950 million. In July, the state-run corporation and US-based Excelerate Energy signed the final deals to set up Bangladesh’s first LNG terminal, which will handle imported LNG and supply it to the national grid from early 2018. The terminal will be set up at Moheshkhali in the Bay of Bengal.

Source:
http://www.thedailystar.net/business/summit-signs-deal-build-500m-lng-terminal-1340404
http://www.thefinancialexpress-bd.com/2017/01/04/58261/Summit-arm-ties-up-with-US-company-for-LNG-terminal
http://www.newagebd.net/article/6212/petrobangla-summit-initial-contract-for-lng-terminal

Bangladesh-India fuel pipeline project hits fresh snags

The construction of the proposed 130-kilometre cross-country pipeline to carry diesel is facing yet another setback as the Indian firm has, allegedly, reneged on the agreed term of bearing the costs, said sources. India’s state-run Bharat Petroleum Corporation Ltd (BPCL) in a recent letter to the Bangladesh Petroleum Corporation (BPC) agreed to provide the pipeline construction cost from Indian credit line instead of its own coffer. It is a violation of the terms of memorandum of understanding (MoU) inked between the two companies in October last year as the BPCL had agreed to build the pipeline at its own cost to export around 1.0 million tonne of diesel to Bangladesh for 15 years. The BPCL in its letter requested the BPC to inform about the latter’s position over the changed status. The BPC has not yet responded to the BPCL letter. In the MoU, the BPCL had agreed to build the pipeline spending money from its coffer subject to import of diesel by state-run BPC from the BPCL’s Numaligarh refinery in Assam for 15 years. The BPC and the BPCL also had agreed to fix the premium rate of US$ 5.50 per barrel to Mean of Platts Arab Gulf (MoPAG) diesel assessments on cost and freight (CFR) basis meaning that the price would be above US$ 5.50 per barrel from international price of diesel. The cost of fuel transportation and the loss from evaporation are covered from the premium. Two state-run oil entities also had agreed to stall the initial plan of building a joint venture company to share the costs of building the oil-carrying pipeline. The proposed pipeline would carry around 1.0 million tonne of diesel per year to Bangladesh’s northern region, once it is constructed.

Source: http://www.thefinancialexpress-bd.com/2017/01/05/58276/Bangladesh-India-fuel-pipeline-project-hits-fresh-snags

BD eighth among ODA recipients in Asia

Bangladesh stands eighth in Asia among the recipients of official development assistance (ODA) from the developed OECD countries with its 4.0 per cent share in the total inflow to the continent. The country received US$2.42 billion in net assistance from the developed countries in 2014, OECD (Organisation for Economic Cooperation and Development) in its data showed Wednesday. Afghanistan has been placed on top of the list with 9.0 per cent of its ODA share among the Asian nations while Bangladesh’s next-door neighbour India stood 5th with 6.0 per cent share. The OECD bloc unveiled Wednesday the final data on foreign aid in 2015, showing that its member-nations provided a total of $131.4 billion in 2015, an increase of 6.6 per cent in real terms over 2014. Net ODA as a share of gross national income (GNI) of the OECD nations was 0.30 per cent. The Asian countries received $59.17 billion out of total $131.4 billion ODA handouts from the OECD donors. According to the grouping findings, Bangladesh received the highest 60 per cent of its total ODA in 2014 for social sector, 16 per cent for economic sector, 9.0 per cent for production sector, 8.0 per cent for the humanitarian cause, 6.0 per cent for multi-sector, and 1.0 per cent in general programme aid.

Source: http://www.thefinancialexpress-bd.com/2017/01/05/58271/BD-eighth-among-ODA-recipients-in-Asia

Land tariffs for economic zones to be finalised today

The tariff plan prepared by Bangladesh Economic Zones Authority for leasing and renting lands in 16 economic zones will be finalised today. Under the plan, if approved at a meeting of Beza’s governing body, the tariff for per square metre land will range between $0.35 and $0.8 in case of leasing while it will range between $0.9 and $2 in case of renting. The land tariff varies depending on the types of infrastructure — developed, undeveloped and specialised. It is necessary to fix the tariff to allocate lands—which are developed or being developed under the authority and supervision of Beza in economic zones—to the entrepreneurs for setting up industrial units. An economic zone is a designated area in a country with special economic regulations that differ from the rest of the country. An entrepreneur can enjoy various benefits, including tax incentives, from the authorities by setting up an industrial unit in an economic zone. Earlier in July, a tariff plan with higher prices than the latest proposal was placed at the governing body’s meeting for approval. But the governing body, instead of approving the plan, reset a committee headed by the senior secretary of the Finance Division and asked it to come with a revised tariff plan. The revised tariff plan will be of two types. The first will be made for Mirsarai, Feni, Shreehatta, Dhaka-2, Araihazar and Gazaria economic zones. The second plan is meant for Cox’s Bazar, Moheshkhali 1, 2, 3 and 4, Moheshkhali Special, Moheshkhali, Sabrang Tourism Park, Naf Tourism Park and Mongla economic zones. The service charge will be 10 percent of the amount of any utility bills such as gas, electricity, water, recycling, purification and effluent treatment, while the regulatory fee has been proposed at Tk 500 for each permit.

Source: http://www.thedailystar.net/business/land-tariffs-economic-zones-be-finalised-today-1340389

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