Trade with China trebles in a decade
Bilateral trade between Bangladesh and China trebled to nearly $12 billion in the past decade thanks to the soaring imports by Industrialists and Businesses. Trade between the two nations, which was $3.51 billion in 2008-09, rose to $12.38 billion in 2017-18. And in the first nine months of the just concluded fiscal year trade stood at about $11 billion, with the balance heavily tilted towards China, according to data compiled by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). The data showed that import from China has been increasing gradually while shipment to the world’s second biggest economy have been hovering below $1 billion for the last several years. Analysts and Entrepreneurs said Bangladesh gets duty-free access for nearly 5,000 items but Businesses cannot take full advantage of the opportunity owing to the country’s small export basket.
MoC issues guidelines on RMG subcontracting
Subcontracting readymade garment (RMG) factories, under an official guideline issued recently, are now required to take mandatory membership of their respective apex trade bodies for doing business, according to official. Besides, they are also required to put in place safety measures required for the workers and for other purposes, they have added. The Ministry of Commerce (MoC) finalised its set of guidelines for the subcontracting units after more than six years. The MoC issued a circular in this connection on May 27 last mainly to implement the National Tripartite Plan of Action (NTP) on Fire Safety and Structural Integrity in the RMG sector in Bangladesh and to ensure transparency in the subcontracting system and accountability. Following a fire incident at a subcontracting factory, namely Tazreen Fashion Limited, killing more than 112 garment workers, pressure built on bringing the subcontracting activities under a legal cover by formulating guidelines to protect the interest of workers.
Banks’ operating profit rises despite liquidity crisis
Most of the private banks saw their operating profits edge up in the first half of the year despite the ongoing liquidity crisis and a decline in credit growth. The Daily Star obtained data of 23 banks and all of them posted growth in operating profit — which is the profit before deduction of taxes and setting aside provisioning for loans — ranging from 2 percent to 120 percent. Of them, Islami Bank Bangladesh, which is the largest private sector Bank, posted the highest operating profit of Tk 1,223 crore in the six months to June, up 19.78 percent year-on-year. City Bank reported a 39 percent jump in operating profit to Tk 371 crore between the months of January and June as it concentrated on mobilising low-cost deposits and expanding its trade finance Business.
MFS transactions hit record high
Transactions through the mobile financial service platform hit a record Tk 42,236.23 crore in May as discounts offered by the major MFS providers to tempt Eid shoppers to pay through their channel appear to have worked. The amount is an increase of 20.8 percent from the previous month, according to data from the Bangladesh Bank. “Eid has surely been a big factor behind the spike in transactions but there were few other factors as well,” said Sheikh Md Monirul Islam, Chief external and corporate affairs officer at bKash. The Central Bank’s move in May to increase the MFS transaction limits also seemed to have helped log in the highest number for a single month, said Md Serajul Islam, spokesperson of the BB.
Gas price hike to hit manufacturing sector hard: Business Leaders
Business leaders on Monday strongly opposed the latest gas price hike and said that the jump in gas tariff would hurt the country’s manufacturing sector and the sector’s productivity would fall. They said that the country’s export sector would lose its competitiveness in the global market as a high jump in gas tariff would increase production cost. The government on Sunday raised the price of gas for captive power generators to Tk 13.85 per cubic metre from Tk 9.62, and for industries Tk 10.70 per cubic metre from Tk 7.76. The Bangladesh Energy Regulatory Commission said that the price had to be increased as country’s gas generation, distribution and transmission companies called for it because of a rise in gas production price due to import of liquefied natural gas
BEZA Chief’s Contract extended
The tenure of Executive Chairman of the Bangladesh Economic Zones Authority (BEZA) Paban Chowdhury has been extended for next two years more. Mr. Paban joined as the Executive Chairman at BEZA on June 30, 2014. Later, he was appointed on a contractual basis at the same position on June 28, 2017.
Bengal Cement begins journey
Bengal Cement Limited officially started its journey to uphold “Strength with durability”, as the newest subsidiary of the renowned business conglomerates in Bangladesh. With the vision of meeting the growing demand of infrastructure development sector in Bangladesh and delivering high quality standard cement to the customers, Bengal Cement made the debut with a Gala Event at International Convention City Bashundhara (ICCB), recently.
PKSF gets new Managing Director
Mohammad Moinuddin Abdullah has recently joined the government established development organisation Palli Karma-Sahayak Foundation (PKSF) as Managing Director for a three-year term. He is also a former senior secretary of the agriculture ministry.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 21,748.8||↑18.83||↑0.09%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 58.87||↓0.22||↓0.37%|
|Crude Oil (Brent)||$ 64.93||↓0.13||↓0.20%|
|Gold Spot|| $1,390.04|| ↓5.85||↓0.42%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.1054|
|GBP 1||BDT 105.2010|
|EUR 1||BDT 94.0854|
|INR 1||BDT 1.2044|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<