Important Business News Extracts – January 25 2017
Regulator asks bullish bourses to stay cautious
The regulator has asked the bourses to keep an eye on the current upward trend in the stock market against the backdrop of a bullish momentum that continued yesterday as well. DSEX, the benchmark index of Dhaka Stock Exchange, rose 38.5 points or 0.67% to finish the day at 5,708.24 points — the highest since the introduction of the index on January 27, 2013. The turnover stood at BDT 20.1 billion, down 7.7% from the previous day. Massive reforms have been carried out after the price debacle in early 2011.
The securities’ regulator is not in favor of intervening in the capital market frequently. The chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor M Khairul Hossain said this while speaking on the regulatory stance for recent capital market.
At least half a million Bangladeshis are expected to find jobs in Malaysia this year, a junior minister said Tuesday. The Southeast Asian nation has already sent demand for 15,000 workers, according to state minister for foreign affairs ministry Shahriar Alam.
Trump’s protectionism to mar any B’desh benefit: economists
United States’ pulling out of the Trans-Pacific Partnership deal, which has been thought to affect Bangladesh trade, will have a little impact on Bangladesh as the new US president Donald Trump’s ‘protectionist’ economic agenda would hurt global economy including Bangladesh’s export, economists said. The US president signed an executive order on Monday ending the US’s participation in the TPP, a sweeping trade pact negotiated with eleven other nations.
Bangladesh should initiate reforms in oil pricing, subsidy and market deregulation to make the most of the historically low oil price in the international market, the Policy Research Institute of Bangladesh said yesterday. Low international oil prices, solid economic performance and political stability provide a unique opportunity to tackle these sensitive reforms,” said Sadiq Ahmed, vice-chairman of PRI, at a seminar held at the think-tank’s office in Dhaka. Politically sensitive reforms like oil price subsidy and pricing are best done from a position of strength. Bangladesh economy is growing, the macroeconomy is stable and inflation has come down. Oil prices began its slide in the international market in June 2014, but it was only in April last year that Bangladesh made the adjustment, and too slightly. The government had planned for another round of cuts but has shelved the course after oil prices started showing an upward trend.
Revenue appraisers began crosschecking the withholding tax returns from some companies to determine propriety of the pay disbursed to their foreign and local employees and consultants. In recent times, the submitted accounts on the pay-as-you-earn tax of some multinational companies (MNCs) and domestic firms have been under surveillance of the taxmen.
The uniform 15.0% VAT will remain, the finance minister said Tuesday while expressing the hope to dispel the differences over enforcement of the new tax law. Opposition to enforcement of the new Value Added Tax and Supplementary Duty Act from July next still persists from key stakeholders, especially from the business community. Some of them are venting concerns over provisions of the new act, passed in 2012, for their possible implications for enterprise development.
Department of Livestock Services (DLS) detects bird-flu in country after four years
Bird-flu or H5N1 virus has recently been detected in two different areas of the country, according to Department of Livestock Services (DLS). After being confirmed about the incidents in Rajshahi and Dhamrai on January 16, DLS has sent a report to World Organisation for Animal Health.
India and Bangladesh are contemplating financial modalities of establishing a gas pipeline that will be covering most the north-eastern states and West Bengal, according to a report by newindianexpress.com. Speaking at International Conference on India-Bangladesh Multi-Sectoral Cooperation here Ministry of External Affairs (MEA) Joint Secretary Sripriya Ranganathan said that energy security is becoming new paradigm of India-Bangladesh relationship.
Government to renew India power import contract soon
The government is set to renew the contract with India for open import of 250-megawatt power that costs over BDT 6.3 billion for six months. Bangladesh imports a total of 500.0 megawatts of electricity from the neighbouring country-half of it from open market and as much from government power entity. The open import is much costlier.
The government has moved to increase production capacity of state-run LP Gas Ltd’s annual LPG (liquefied petroleum gas) six-fold to 120,000 tonnes (mt) from existing 20,000 mt to cater to the mounting demand of the fuel, said officials.The LP Gas Ltd, a wholly-owned subsidiary of state-owned Bangladesh Petroleum Corporation (BPC), has floated an international tender seeking expression of interests (EOIs) from interested firms for selecting a joint venture partner for construction and operation of import-based LPG storage, bottling and distribution plant at Mongla in southern Bagerhat district, said a senior BPC official.
Beximco Pharmaceuticals Limited has announced the creation of a joint venture (“JV”) with BioCare Manufacturing (M) Sdn Bhd (“BioCare”) based in Malaysia, as the Company’s first overseas manufacturing collaboration, said a statement. Under the terms of the JV, Beximco Pharma will provide full technical support to BioCare for the establishment of manufacturing facilities in Seri Iskandar Pharmaceutical Park, Perak, Malaysia to produce specialised pharmaceutical products. Beximco will issue 30.0% of the equity shares in the JV company. BioCare will operate and fund the facility.
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