Export earnings hit record $3.8b in May
Bangladesh’s exports fetched $3.81 billion in May this year, which was the single-month highest in the country’s history riding on the good performance of readymade garment products. Earlier, the monthly highest earnings were recorded in October last year with the exports worth $3.71 billion. Export earnings in May this year increased by 14.78 per cent from $3.32 billion in the same month of last year, which is 9.23 per cent higher than the target of $3.49 billion set by the government, according to the Export Promotion Bureau. Exporters said that export earnings in May reached a record high as RMG manufacturers made an increased number of shipments in the month to avoid missing deadline of export due to long Eid holidays in June. The overall export earnings in July-May period of the current financial year (2018-19) grew by 11.92 per cent to $37.75 billion from $33.72 billion in the same period of FY18.
Plastic goods to grab bigger share in global market
The plastic goods sector, which has tremendous potential to capture a chunk of the global market, will flourish further if a specialised industrial zone and modern recycling system could be established for producing environment-friendly products, according to Business insiders. The country’s plastic goods industry is booming due to availability of raw materials at a cheaper rate, government policy support, manufacturing efficiency and production of diversified goods, they said. Besides, China has moved towards high-tech industries, creating a massive chance for Bangladeshi plastic goods exporters to raise their share in the global market for plastics, expected to reach USD 721.14 billion by 2025, according to a new report by Grand View Research, Inc. According to the latest statistics of the Export Promotion Bureau, the export earnings from plastic products in the first 10 months of the current fiscal increased by 23.6 per cent over the corresponding figure during the last fiscal.
Tax holiday may continue for infrastructure, industries
The government is likely to extend the tax exemption benefit on income from investment in infrastructure and industries in lagging regions for five years to encourage private investment and job creation. The move to continue the facility up to June 2024 is being considered as the existing offer expires on June 30. According to a senior official of Finance Ministry, tax holiday benefit is likely to continue in modified form to encourage investment. Private investment has been hovering between 22 and 23.4 percent of the gross domestic product (GDP) for the last several years for reasons such as inadequate infrastructure and poor investment climate. It rose by only 1.37 percentage points since 2013-14 when it was 22.03 percent, according to Bangladesh Bureau of Statistics.
Tk 100cr fund for budding Entrepreneurs
The government is set to create a Tk 100 crore fund for start-ups as it looks to alleviate youth unemployment, which is progressively becoming an albatross for the country. More than 20.1 million youths aged 15-29 participated in the labour force, according to the Labour Force Survey 2016-17. Of them, 2.1 million were unemployed. Then another 29 percent of the 41.4 million of 15-29 year-olds were not in education, employment or training. In short, the number of unemployed, especially the number of educated unemployed youths, is on the rise in the country as the government can hardly manage jobs for them. On the other hand, new Business opportunities have sprung up in both private and public sectors because of advancement in technologies.
Dhaka stocks rise for 7th day on budget hopes
Dhaka stocks advanced for the seventh session on Monday with a rise in the investors’ participation amid hopes of budgetary measures friendly to the capital market. DSEX, the key index of Dhaka Stock Exchange, gained 0.53 per cent, or 28.62 points, to close at 5,431.59 points Monday. The index gained 179 points in last seven sessions, ahead of the national budget to be announced by Finance Minister AHM Mustafa Kamal in parliament on Thursday. In line with the previous day’s trend, DSEX started gaining from the very beginning on Monday but it went negative after two hours of trading as some investors went for profit taking the opportunity of last few days’ gain.
External Debt: Repayment to hit record high
Bangladesh is going for a record amount in external debt repayment this fiscal year, putting pressure on the almost stagnant foreign currency reserves and tightening market conditions. The Economic Relations Division data shows that the government has paid $1.34 billion to external lenders in the first 10 months till April of the outgoing fiscal year, up by 14.4 percent than what was paid over the corresponding period a year ago. Bangladesh repaid $1.2 billion to its external lenders in fiscal 2017-18, according to the latest report on “Flow of External Resources into Bangladesh” compiled by the ERD. Since independence, the country’s foreign borrowing has been $51.83 billion till June 30, 2018. The government repaid $21.98 billion and the outstanding debt stood at $39.58 billion till April this year.
Novartis gets new country CFO
Fahmid Wasik Ali has recently been appointed country Chief Financial Officer of Novartis (Bangladesh). He will also act as finance director and Company secretary in the Company’s Board of Directors. Mr. Ali joined Novartis in 2006, serving most recently as the CFO of the pharmaceuticals division.
bKash payment now available for Piickme services
bKash Limited, the largest mobile financial service provider in the country has signed an agreement with Piickme Limited, a fast growing app based on-demand ride hailing platform. This will allow passengers to pay through bKash while taking a ride. Mizanur Rashid, Chief Commercial Officer, bKash Limited and Omar Ali, Chief Executive Officer, Piickme Limited exchanged document on behalf of their respective organisations.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,431.59562|| ↑28.62728|| ↑0.53%|
|Nikkei 225|| 21,162.52|| ↑28.10||↑0.13%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 53.47||↑0.21||↑0.39%|
|Crude Oil (Brent)|| $ 62.41||↑0.12||↑0.19%|
|Gold Spot|| $1,328.52||↑0.54||↑0.04%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.6338|
|GBP 1||BDT 104.8970|
|EUR 1||BDT 93.4560|
|INR 1||BDT 1.1883|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<