Private sector credit growth beats target

Private sector credit growth has surpassed the target set in the central bank’s monetary policy — three months ahead of the end of the fiscal year — thanks to low interest rates and less borrowing by the government. The growth was 15.16% in March, which is 0.16%age point higher than the target, according to central bank statistics. The Bangladesh Bank in its Monetary Policy Statement (MPS) set the private sector credit growth at 15.0% year-on-year by June 30 this year. The credit growth also rose over the same period last year; on March 15 last year, the credit growth was 13.6%. The central bank said the credit growth was below 14.0% last fiscal year, while the country’s economic growth was 6.5%. The growth in gross domestic product would be 7.05% this fiscal year, according to provisional estimates by Bangladesh Bureau of Statistics.

Source: http://www.thedailystar.net/business/private-sector-credit-growth-beats-target-1228375

Stock brokers build fortune misusing client fund

Some stock brokers make money misusing or diverting their client funds, posing safety risk to the stock market. The funds are diverted in the form of depositing FDR, paying staff salary and many other personal and company purposes. The securities regulator, Bangladesh Securities and Exchange Commission, has detected 16 such cases since setting up Instant Watch Surveillance System Software in 2013. For the wrong doing, it usually slaps financial penalty, which, experts say, is insignificant compared to the brokers’ offence. Two such brokerage firms were detected so far in 2016, three in 2015, seven in 2014 and four in 2013, according to the BSEC. Among the errant brokerages, the regulator found that NCCB Securities & Financial Services Limited had not maintained separate customer account and all customers’ deposit had been put into the broker’s own account, which was a violation of the securities rules. The brokerage firm has showed in its audited financial report 2012 that it received over BDT 0.9 million cash and BDT 26.0 million as security deposit from its clients, but it had mentioned that the broker had deficit of around BDT 25.0 million, according to the BSEC. For this wrong doing, the regulator had fined NCCB Securities & Financial Services Limited BDT 1.5 million. Another example is Globe Securities that showed it had fund deficit of BDT 195.0 million in 2012, BDT 177.0 million in 2011 and BDT 117.0 million in 2010.

Source: http://www.dhakatribune.com/business/2016/may/24/stock-brokers-build-fortune-misusing-client-fund#sthash.EReftSid.dpuf

Import growth registers slight downward trend

The country’s overall import growth witnessed a slightly downward trend in the first nine months of the current fiscal year (FY) due to falling trend of prices of commodities including fuel oil in the global market, officials said. The import growth rate came down to 4.98% during the July-March period of FY 2016 from 5.17% in the same period of the previous fiscal, according to the latest central bank statistics. The actual import in terms of settlement of letters of credit (LCs) rose to USD 30.22 billion in the first nine months of FY 16 from USD 28.79 billion in the same period of the previous fiscal. On the other hand, opening of LCs, generally known as import orders, dropped by 2.29% to USD 31.56 billion during the period under review from USD 32.31 billion in the same period of the FY2015. The import of consumer goods came down to USD 3.51 billion in the nine months of FY 16 from USD 3.68 billion in the same period of the previous fiscal year. On the other hand, food-grain imports, particularly of rice and wheat, also dropped by 22.93% to USD 870.98 million during the period from USD 1.13 billion in the same period of the FY 15. The import of capital machinery or industrial equipment used for productions rose by 12.55% to USD 2.51 billion during the nine months of this fiscal against USD 2.23 billion of the same period of the previous fiscal.

Source: http://print.thefinancialexpress-bd.com/2016/05/24/142244

Government expects 7.25% GDP growth in FY’17

The government expects that Bangladesh economy will grow at 7.25% in next fiscal year with a possibility of rise in investment. Planning Minister AHM Mustafa Kamal disclosed the growth projection for the FY2016-17 at the National Economic Council (NEC) meeting recently. “Under the leadership of Prime Minister Sheikh Hasina, the GDP growth will be at 7.05% this fiscal year and we hope that the growth in next fiscal will be at 7.25%,” said Mustafa Kamal as quoted by the meeting sources. The meeting observed that the country’s economy had been growing at above 6.0% since 2008 though the world economy was affected by recession in that year. It said the major role in increasing economic growth rate of Bangladesh rest with investment. It said this fiscal year the government investment had increased though there was a decrease in private sector investment. The government expects that Bangladesh economy will grow at 7.25% in next fiscal year with a possibility of rise in investment. The meeting observed that the country’s economy had been growing at above 6.0% since 2008 though the world economy was affected by recession in that year.

Source: www.dhakatribune.com/business/2016/may/24/govt-expects-725-gdp-growth-fy17#sthash.pP9tmwpg.dpuf

Bangladesh exports to Turkey dip by 10.0% in July-April

Country’s export earnings from Turkey in the July-April period of current financial year 2015-16 declined by 10.73% to USD 518.87 million from USD 581.25 million in the same period of financial year 2014-15 due to fall of export of major item readymade garments. Turkish clothing and textile exporters, however, said that instead of import they have been trying to increase their capacity to meet the domestic demand of readymade garments. The readymade garment exports to Turkey in the first 10 months of the FY16 decreased by 7.67% to USD 358.26 million from USD 388.04 million in the FY15, according to the Export Promotion Bureau data. Following readymade garment products, Jute and jute products were one of the major export items to Turkish market. Earnings from jute and jute products in the July-April period of current financial year 2015-16 decreased by 17.94% to USD 13934 million from USD 169.82 million in the same period of FY 15, the EPB data showed. Due to the imposition of duty, the export earnings from Turkey declined by 24.23% to USD 551.87 million in the financial year 2011-12 from USD 724.45 million in the FY11. Overcoming the barrier of safeguard duty, the country’s export to Turkey increased to USD 637.81 million in the financial year 2012-13 from USD 551.87 million in FY 12. In the FY 14, export earnings increased to USD 856.19 million while the earnings started to decline in FY 15 and amounted USD 720.88 million in the financial year.

Source: http://newagebd.net/231549/bangladesh-exports-to-turkey-dip-by-10pc-in-july-april/

New VAT law to ‘deal blow to agro-processing industry’

Nearly 500 agro-processing units of the country are likely to suffer a major blow after the new Value Added Tax (VAT) law takes effect from July 01 next, sector insiders’ fear. According to them, imposition of new VAT will put an adverse impact on the agro-processing sector as it is now paying different taxes and duties to the government. Some 489 agro-processing units are the members of the association. Besides, there are many units across the country, which are not the members of the association. Some 1.5 million people are involved with the industry, he mentioned. Presently, the agro-processing industry pays 37% corporate tax. The sector has also been paying 5.0% advance tax on import and 1.0% duty on import of capital machinery, according to people involved with the sector. The agro-processing sector earns a significant amount of foreign currency every fiscal year (FY). It earned some BDT 16.0 billion in last FY, an association data showed. It has sought subsidy for the country’s manufacturers and exporters and different facilities for promoting the sector.

Source: http://print.thefinancialexpress-bd.com/2016/05/24/142214

World Bank: Economic zones create 5,500 jobs

Economic zones attract domestic and foreign investment, create jobs and help accelerate growth, said a World Bank statement yesterday. The World Bank, together with UK-DFID and IFC, is supporting the Bangladesh government to develop economic zones and hi-tech parks through the Private Sector Development Support Project (PSDSP). Till now, the project has helped create nearly 5,500 jobs. In the last two years, with the support of PSDSP, the Bangladesh Economic Zones Authority (BEZA) and the Bangladesh Hi-Tech Park Authority (BHTPA) have licensed 16 economic zones and hi-tech parks and assessed 33 sites, completed feasibility studies, and master plans for new zones. BEZA has a large pipeline of new economic zones. It has issued licences to eleven private zone developers including licensing to Mongla Economic Zone on public-private partnership basis. The tendering process for the development of economic zones in Mirshorai, Shrehatta and other locations has started. BEZA has assessed twelve sites and drafted another nine for pipeline Economic Zones.

Source:
http://www.dhakatribune.com/business/2016/may/24/wb-economic-zones-create-5500-jobs
http://print.thefinancialexpress-bd.com/2016/05/24/142222
http://www.thedailystar.net/business/wb-aided-project-creates-5500-jobs-1228354

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*Currencies and Commodities are taken from Bloomberg.