Private sector credit growth exceeds target in June
Private sector credit growth exceeded the target, set by the central bank earlier, in June despite a declining trend in recent months. The growth in credit flow to private sector came down to 16.95 per cent in June 2018 on a year-on-year basis from 17.60 per cent a month ago. It was 15.66 per cent in June 2017, according to the Bangladesh Bank (BB) statistics. The central bank in its outgoing monetary policy had set a target for the private sector credit growth at 16.80 per cent at the end of June, 2018. The BB is now formulating the next monetary policy statement (MPS) for the first half (H1) of the current fiscal year (FY) 2018-19 aiming to achieve a maximum economic growth with curbing inflation, the officials added. The total outstanding loans with the private sector rose to Tk 9076.22 billion in June last from Tk 8924.03 billion in May 2018. It was Tk 7760.56 billion in June 2017.
DSE closes marginally higher on Monday
The Dhaka bourse on Monday closed marginally higher riding on banking sector. The broad index of the Dhaka Stock Exchange (DSE) displayed volatility throughout the whole session. At the end of the session, the DSE broad index DSEX closed at 5348.06 points with a rise of 0.16 per cent or 8.88 points. The shariah based index DSES declined 0.46 per cent or 5.88 points to close at 1268.69 points. The blue chip index DS30 closed at 1913.05 points with a marginal rise of 0.23 per cent or 4.53 points. Of total issues traded, 130 advanced, 168 declined and 41 were unchanged on the premier bourse DSE. The turnover stood at above Tk 8.73 billion which was 17.23 per cent less than the turnover of the previous session.
Regulator okays Kattali Textile IPO despite DSE’s objection
The capital market regulator has given a go-ahead to the initial public offering of Kattali Textile disregarding tough observations from the Dhaka Stock Exchange. On June 26, the Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the garment exporter, which plans to raise Tk 34 crore from the market. The DSE recommended the IPO of Kattali Textile should not be approved as it failed to submit some documents what the premier bourse wanted to verify the authenticity of the data presented in the draft prospectus of the company. In December 2017, Kattali Textile applied to the DSE expressing its willingness to go public and submitted its draft prospectus accordingly. According to the review, exports of Kattali Textile increased 22.42 percent and the cost of goods sold rose 22 percent year-on-year in 2016-17. Its cash received and cash paid also went up that year. To verify the authenticity of the data, the DSE asked for some documents such as bank statements, letter of credit documents, bill of entry, VAT and tax documents and bill voucher. But the company failed to submit the documents. This led the DSE board not to recommend the IPO of Kattali Textile to the commission.
Tk 1 lakh for each project
Some 64 projects, many of which are important infrastructure ones, got just Tk 1 lakh each this fiscal year in a bizarre move by the government that has presented its most expansive development budget yet of Tk 1.80 lakh crore. People do not benefit from these token allocations as it will further delay the implementation of the projects, said Ahsan H Mansur, executive director of the Policy Research Institute. “This is misallocation of resources as well as waste of public money”. Of the 64 projects, 57 are five to eight years old and they were scheduled for completion this June, four are ongoing and the remaining three did not even start work, according to data from the planning ministry. But the government has indiscriminately allocated Tk 1 lakh to each of these projects without considering their deadline or their importance.
UK wants to invest in infrastructure
The United Kingdom wants to invest in a big way in Bangladesh to help achieve its middle-income country status saying the next generation of British Bangladeshis can make the difference with their cemented ties with Bangladesh, says a British trade envoy. She listed the energy sector, especially renewable energy, and technological cooperation, education and skill sharing as some of the potential areas for cooperation. Talking about investment barriers, she said further improvement in business climate meant that more investors were looking at Bangladesh for future investment, not just from the UK but from other countries. “This is something very important.”
ADB doubles commitment for next three years
The Asian Development Bank is ready to lend $8.01 billion to Bangladesh over the next three years, almost the double the amount it had committed in the previous three years. Between 2015 and 2017, the Manila-based multilateral lender committed $4.08 billion. The ADB has already sent an indicative plan to the government about its intent to bankroll various mega projects with the view to reducing high transport and logistics costs and improving access to domestic, regional and international markets. It will focus on the development of transport corridors integrating roads, railways and ports in order to ease congestion, improve climate resilience, continue institutional reforms and facilitate trade. The ADB will continue to support the development of the Dhaka-Chittagong-Cox’s Bazar Railway corridor, add the Dhaka-Southwest road corridor to the pipeline and support investments in the Chittagong Port. The lender will also support the improvement of public transport in the capital through the Dhaka Metro Rail project and work towards developing high-speed rail corridors, logistics and inland waterways.
NBR forms 2 committees to expedite finalisation of new income tax law
The National Board of Revenue has formed two committees to review and finalise the draft of new income tax law within the shortest possible time. Income tax wing of the NBR recently formed the committees — one for Bangla draft and another for English draft — to prepare the law as soon as possible. They said that a seven-member committee headed by NBR member Alamgir Hossain would review the English draft in line with the international best practices and compatibility with the socioeconomic context of the country. It will submit a report with observations, recommendations to include and exclude issues, if any, inconsistent with international best practices and the country’s prevailing socioeconomic context from the draft law. It will also identify the possible constraints on implementation of the proposed law and suggest strategies for smooth implementation. The committee will also gather opinions from field-level income tax officials about the applicability of the draft law. The proposed law will also be aligned with most of the provisions of the existing Income Tax Ordinance-1984. NBR officials said that another committee headed by income tax commissioner Meftah Uddin Khan would assist the external legislative expert on finalising the Bangla draft of the law.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$67.70||↓0.47||↓0.69%|
|Crude Oil (Brent)||$72.86||↓0.13||↓0.18%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.0000|
|GBP 1||BDT 110.0232|
|EUR 1||BDT 98.1708|
|INR 1||BDT 1.2187|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.