No of mobile subscribers rise for 2nd month after June-August setback

The number of active mobile subscribers rose for the second month in October with telecom operators adding 0.9 million users in the month as the issue of biometric re-registration of SIM settled down, said BTRC officials. The total number of subscribers of five mobile companies stood at 120.7 million at the end of October, up from 119.1 million in September, according to the Bangladesh Telecommunication Regulatory Commission data released on Tuesday. The data of Citycell, which was shut for two weeks in October over a payment dispute, has not been included in the tally, said officials. The total number of subscribers, which according to officials are basically active SIMs, hit its highest mark at 132.6 million in May 2016. But, the number came down to 117.7 million in August, 2016 as the operators lost around 15.0 million subscribers after the end of the deadline for biometric SIM registration of mobile phone users on May 31. The number of users declined as many of the subscribers who had multiple SIMs did not complete biometric registration for all of their SIMs. The latest BTRC data showed that leading operator Grameenphone added 0.7 million subscribers in October taking its subscriber base to 55.7 million at the end of the month. In September, GP got 0.5 million new subscribers.

Source: http://www.newagebd.net/article/7218

Government seeks to raise investment to 32.0% in next two years

The government now seeks to raise investment to 32.0% of the country’s GDP within two years in pursuit of an 8.0% growth in the gross domestic product. Finance Minister AMA Muhith spoke of the growth plan at an event on ‘Dream and Possibility of a Developed Bangladesh’ at the Bangladesh Bank Tuesday. “Our present investment level as percentage of GDP is around 29.5 which should reach 32.0% within the next two years,” the Finance Minister said. Mr Muhith opined that reaching that particular threshold in terms of investment will give the country’s economy an extra confidence for going forward. “At the same time, the GDP growth of the country which reached 7.0% in the last fiscal should increase to 8.0% within two years time,” he added. The Finance Minister attributed the higher growth rate during the last fiscal to improved political stability which ensured uninterrupted economic and business activities across the country. He termed the economic growth of the last 15 years significant as the GDP growth during this period has never come below 6.0%. The Finance Minister also noted that despite continuous and healthy economic growth, the country did not experience any increase in inequality. He attributed this balance to government’s emphasis on social security.

Source: http://print.thefinancialexpress-bd.com/2017/01/18/162399

Stocks continue bull run as investors getting back confidence

The bullish momentum continued in the stockmarket for the seventh consecutive session yesterday. The Dhaka bourse’s key index reached the 5,500-point mark with the turnover crossing Tk 2,000 crore for the first time in more than six years. The escalation of the turnover and index, the two most important indicators of the market, suggests that investors are getting back their confidence in the market, which has been sluggish since the price debacle of 2011. DSEX, the benchmark index of Dhaka Stock Exchange, rose 97.61 points or 1.78 percent to finish the day at 5,575.47 points — the highest since the introduction of the index on January 27, 2013. The turnover stood at Tk 2,064.96 crore yesterday, up 11.22 percent from the previous day. The turnover last crossed Tk 2,000 crore on December 7, 2010.

Source: http://www.thedailystar.net/business/stocks-continue-bull-run-investors-getting-back-confidence-1346842

Call for lenders not to provide margin loan beyond limit

The leading stock brokers of the premier bourse and merchant bankers have urged the lenders not to provide margin loans beyond stipulated limit. They made the call at a meeting held Tuesday at the premises of the Dhaka Stock Exchange (DSE). As per the latest limit set by the securities regulator, the lenders are allowed to disburse margin loans at 1:0.5 ratio. The representatives of the DSE Brokers’ Association of Bangladesh (DBA), merchant bankers and top officials of the premier bourse attended the meeting. “The participants at the meeting also agreed to maintain compliance for a sustainable growth of the market,” said a meeting participant. Among others, the listed companies’ bonus issue was also discussed at the meeting.

Source: http://print.thefinancialexpress-bd.com/2017/01/18/162400

Online VAT registration begins in March

The National Board of Revenue plans to launch online VAT registration in March so that businesses can prepare to file returns electronically from the beginning of next fiscal year. Manual registration will come to an end after the online system is introduced, said a senior official of NBR, seeking anonymity. Businesses, particularly the small and medium enterprises that do not have access to the internet, will get support from VAT online services centres to comply with the new law that is expected to come into effect from July this year. The revenue authority plans to open 12 centres to help businesses register and file returns online, according to the official. Three centres are expected to open in Uttara, Motijheel, and Farmgate next week, he added. “Businesses will get all sorts of assistance without any cost.” Firms will get registration online until June; returns can be filed starting in July.

Source: http://www.thedailystar.net/business/online-vat-registration-begins-march-1346830

NBR to open email accounts to hear taxpayers’ complaints

The National Board of Revenue plans to open three email accounts to receive complaints about harassment faced by the taxpayers at the field level. The taxpayers will be able to give suggestions and seek solutions from the authority for tax, VAT and customs related problems through the accounts, NBR Chairman Md Nojibur Rahman said yesterday. “Instant solution will be provided,” he said at a programme organised by the Customs, Excise and VAT Commissionerate, Dhaka (North) in the capital. The email accounts are feedbackcustoms@nbr.gov.bd, feedbackvat@nbr.gov.bd, feedbacktax@nbr.gov.bd. The event was organised to make businesses aware of the VAT and Supplementary Duty Act 2012 and boost compliance and tax payment. He said internal revenue collection will rise because of the introduction of a modern and automated VAT system.

Source: http://www.thedailystar.net/business/nbr-open-email-accounts-hear-taxpayers-complaints-1346818

Bangladesh among top five optimistic markets in Asia

Bangladesh along with Myanmar, Vietnam and the Philippines is among the top five “most optimistic market” in Asia Pacific region, according to a new ranking. The country recorded the largest gain of 11.2 points to 82.8 points – a significant improvement in overall consumer confidence compared to H1 2016 where it saw a relatively smaller increase of 4.2 points. Bangladesh, which experienced a small improvement in consumer confidence in the previous survey, recorded the largest improvement among the 17 Asia Pacific markets in this survey with increases across all five components and a more than 10 points gain in outlook on stock market, quality of life and economy. Neighbouring India, however, topped the Mastercard Index of Consumer Confidence in the second half of 2016. But the overall stability masks some significant movements across five markets in the region compared to the previous six months. Hong Kong, Thailand and Bangladesh saw more than 10 point improvements, while Malaysia and Taiwan saw more than 10 point decreases.

Source: http://print.thefinancialexpress-bd.com/2017/01/18/162370

BPC to award today Technip Tk 257cr deal sans tender

The state-run Bangladesh Petroleum Corporation, bypassing tenders, will today sign a €30.75 million, equivalent to Tk 257 crore, contract with French company Technip to prepare the engineering design for a refinery unit with a capacity of processing three million tonnes of crude oil every year. Technip, which built the country’s first refinery with a capacity of processing 1.5 million tonnes per annum in Chittagong in 1968, will prepare the design and relevant documents in six months, an energy division official told New Age on Tuesday. The petroleum corporation, in line with the engineering design, will then begin negotiations with Technip to build the second unit of refinery, he said. The energy division plans to provide the funding for engineering design as well as construction of the second refinery unit from the profit made by the petroleum corporation, the officials said, adding that the construction cost of the refinery unit has been estimated at around Tk 16,730 crore. Being failed in awarding a contract to build the second refinery unit through tenders, the government, in July 2015, decided to process the entire activities of the project under the Speedy Supply of Power and Energy (Special Provisions) Act 2010 that indemnifies officials concerned against prosecution for making decisions.

Source: http://www.newagebd.net/article/7215/bpc-to-award-today-technip-tk-257cr-deal-sans-tender

Shadows over prospects of garment exports to US

Exports from Bangladesh, particularly of garment items, will face further tariff competition in the US market if Donald Trump, the president-elect, implements his plan of border tax, one of his major campaign promises. During his 17-month presidential campaign, Trump called for imposing border tax of between 35.0% and 45.0% on imports of goods to protect American jobs from unfair foreign competition. Companies that import goods would pay the tax at the border. Bangladesh’s exports, particularly of garment items, would unequivocally be affected if Trump follows through on his campaign promise once he is sworn into office on January 20, according to Mansur. Since the US does not have an adequate number of factories, the local manufacturers might not meet the demand. Currently, American retailers have to pay 15.6% duty for importing garment items from Bangladesh. Apparel items account for 95.0% of Bangladesh’s total exports to the US in a year. The US apparel importers have to pay 3.08% duty for importing products from China, 8.38% from Vietnam, 2.29% from India, 3.57% from Turkey and 6.3% from Indonesia.

Source: http://www.thedailystar.net/backpage/shadows-over-prospects-garment-exports-us-1346860

Keya Cosmetics to invest BDT 1.6 billion for expansion

Keya Cosmetics, a concern of Keya Group (KG), is set to invest BDT 1.6 billion for expanding its production capacity of Knit Composite and Spinning Divisions, said an official disclosure on Tuesday. The company is expecting that by the end of August 2017, BMRE and installation of newly imported machineries will be completed and from September 2017, the company will go for commercial production with new machineries. The company is expecting that after BMRE and installation of new machineries, the production capacity of the Company will be almost double, said the disclosure. Keya Cosmetics, which was listed on the Dhaka bourse in 2001, engages in the manufacture and sale of cosmetics and toiletries products. The company’s share price closed at BDT 15.2 each on Tuesday.

Source: http://print.thefinancialexpress-bd.com/2017/01/18/162361

Summit awaits final nod to set up LNG terminal

Summit Group is one step closer to setting up its first floating liquefied natural gas terminal on Moheshkhali Island in Cox’s Bazar as the government is set to give its final verdict on the proposal today. The proposal will be presented at the scheduled meeting of the cabinet committee on economic affairs. The development comes after the high-level expert committee formed to scrutinise whether Summit Group’s proposal was compatible with another proposal submitted by a Singapore-based company gave the green light, said a Petrobangla official. The government has also completed negotiations with Summit for setting up the terminal and supplying LNG. An Energy Division official said a proposal has been sent to the cabinet division for signing a final agreement with the local company. Summit Group signed an initial contract with Petrobangla on January 3. Under the proposal, Summit LNG Terminal Company, a unit of Summit Group, will develop the floating facilities within 18 months of signing the final contract. The LNG terminal company will supply 500.0 million cubic feet of gas per day, for which the government will pay a total of USD 1.56 billion in a year. The terminal, which will cost Summit USD 500.0 million, will be set up on a build-own-operate and transfer basis. The tenure of the agreement will be 15 years. The demand for gas will stand at 8,000 MMCFD in 2041, according to an estimate of the Energy Division. The government has already received proposals from 14 companies for setting up LNG terminals.

Source: http://www.thedailystar.net/business/summit-awaits-final-nod-set-lng-terminal-1346836

Regulator eases rules for handset import

The telecom regulator has eased conditions for importing mobile phones, which importers say will help reduce handset prices and improve quality. As per a new decision, the approvals taken from the regulator for importing handsets will remain valid for six months. Importers now receive a no-objection certificate (NOC) for three months only, which puts them in a tight schedule, said industry insiders. In response to an application from Bangladesh Mobile Phone Importers’ Association (BMPIA), the telecom regulator in a recent meeting took the decision, said Md Sarwar Alam, secretary of Bangladesh Telecommunication Regulatory Commission. The commission is convinced and believes that this change will boost the sector, said Alam. Bangladesh imported 27.1 million handsets worth $506 million in 2015. BMPIA estimates that imports would be more than 29 million units worth $540 million in 2016. Importers said they can now work on bulk shipments as they will get more time, which will bring down the cost further.

Source: http://www.thedailystar.net/business/regulator-eases-rules-handset-import-1346848

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