FDI hit record USD 2.45 billion last fiscal year
Foreign direct investment hit an all-time high of USD 2.45 billion in fiscal 2016-17 on the back of a surge in equity investment by mobile phone operators. The inflows are an increase of 22.54% from a year earlier, according to data from the Bangladesh Bank. The telecom sector saw the highest inflows of USD 594 million, followed by textile and garment at USD 360.35 million and power at USD 334.26 million. Last fiscal year, USD 701.0 million flew in from the Singapore, USD 314 million from the UK, USD 208 million from the US, USD 187 million from Norway, USD 178.0 million from South Korea, USD 112.0 million from Hong Kong, USD 95.0 million from India and USD 90.04 million from the Netherlands. Last fiscal year, equity capital or new investment shot up 99.13% to USD 1 billion. Reinvestment of earnings by existing foreign companies also edged up 8.70% last fiscal year to USD 1.25 billion.
The Asian Development Bank (ADB) endorses USD 1.2 billion for 2nd phase upgradation
The Asian Development Bank (ADB) board of directors has approved USD 1.2 billion in finance for the second phase upgradation of the Dhaka-Northwest international trade corridor in Bangladesh, according to a news release issued by ADB on Tuesday. Since 2001, the SASEC members have invested more than USD 9.2 billion in the projects with a regional dimension, including 31 transport projects worth USD 7.3 billion. SASEC transport investments in Bangladesh focus on developing highway corridors. Road travel accounted for 70% of all passenger traffic and 60% of freight in Bangladesh, where traffic had been growing at a rate of 8.0% annually, it mentioned. First ADB loan of USD 198.0 million was approved in 2012 for what is now considered phase-one of the international corridor project. It increased capacity on 70 kilometres (km) of the Joydeypur-Elenga section of the road. ADB’s financial assistance will be delivered through a multi-tranche financing facility, with the first tranche comprising a regular loan of USD 250 million and a concessional loan of USD 50.0 million.
Dhaka Bank Limited achieved the milestone of US$2.0 billion in foreign trade business
Dhaka Bank Limited achieved the milestone of US$2.0 billion (both import and export) in foreign trade business. In this connection, Central Processing Center (CPC) of the bank celebrated the occasion through an event at Banani Club recently. Managing Director & CEO of the Bank Syed Mahbubur Rahman was present on the occasion.
FSIBL vows to promote SME, agriculture, women entrepreneurship
First Security Islami Bank (FSIBL) has launched vigorous campaign to promote SME, agriculture and women entrepreneurship aiming to contribute more in the development of country’s home-grown economy. “SME, agriculture and women entrepreneurship are our key priorities to help create a supportive ecosystem for ensuring economic growth,” Syed Waseque Md Ali, managing director of FSIBL told The Financial Express recently to mark the 18th anniversary of the leading PCB. The bank is also procuring low cost deposits to ward off the possible effects due to fall of interest rates and growing competition. “The banking industry, as a whole, is affected by twin troubles-fall in interest rates and unhealthy competition- and we are not spared from this menace,” Syed Waseque said. “We will become the pre-eminent bank in the industry through offering quality banking services, stable financial strength and fulfilling regulatory compliances,” he said adding a proper plan of action has already been taken in this regard. As on September 30, 2017, the bank earned Tk 3.23 billion as profit with a deposit portfolio of Tk 290 billion. During the period, the bank invested Tk 264 billion. A total of 163 branches of the bank are now operating across the country, but it will be 168 by the end of coming December.
Annual Development Programme (ADP) spending rate stands at 10.21% in Q1
The implementation rate of the annual development programme in the first quarter was recorded at 10.21%, said planning minister AHM Mustafa Kamal on Tuesday. According to the Implementation Monitoring and Evaluation Division, the previous first quarter best was 10% in 2013-14. The IMED’s calculation showed that ministries and division could spend 12.85% of the project aids, 8.48% of the government fund and 10.78% of the own fund during the period. The government has earmarked an allocation of BDT 1.5 trillion for the ADP implementation in the current fiscal year, which is 38.51% higher than the last fiscal ADP. Out of BDT 1.5 trillion ADP allocation, the government will fund BDT 963.3 billion while the rest of the funding, BDT 570.0 billion, will come as project assistance. An allocation of BDT 106.7 billion for implementing the self-financed projects of the state-owned enterprises is also included in the ADP.
India snubs pleas against anti-dumping duty
An Indian court has dismissed appeals against an anti-dumping duty imposed on Bangladesh’s jute goods, dampening the spirits of domestic millers and exporters. The Customs, Excise and Service Tax Appellate Tribunal of India on October 9 gave the order, rejecting the appeals filed by five local millers and the Jute Products Importers Association of India against anti-dumping duty for jute goods shipments from Bangladesh. The anti-dumping duty ranges between $19 and $352 per tonne. “This is bad news for us,” said Moniruzzaman Monir, managing director of Pride Jute Mills, one of the five millers to have appealed against the anti-dumping duty early this year. The other mills are: Anwar Jute Spinning Mills, Sagar Jute Spinning Mills, Sidlaw Textile Bangladesh and Sharif Jute Mills. “We have been exporting jute products to India for a long time. We will not be able to do business now due to the anti-dumping duty,” Monir added. The Indian revenue authority had slapped the duty on January 5 based on a report of the Directorate General of Anti-Dumping and Allied Duties (DGAD) of India. The DGAD launched an investigation based on complaints from the Indian Jute Mills Association that Bangladeshi exporters were selling jute products at prices lower than those of India’s domestic market. As part of the investigation, a DGAD team visited some factories in Bangladesh and collected data, including export prices of shipped products to India and sales prices in the domestic market.
Govt to buy 250,000 tonnes of rice from Thailand, local traders
The government is set to purchase 250,000 tonnes of parboiled rice from Thailand and local traders at a cost of Tk1017.14 crore in order to shore up Bangladesh’s depleted stock of the staple. The Food will submit two proposals in this regard to the Cabinet Committee on Public Purchase today. Speaking to the Dhaka Tribune, an official of the ministry said negotiations between Bangladesh and Thailand came to an end, with the Thai government agreeing to sell rice at $465 per tonne. They earlier demanded $516 per tonne under a G2G (government to government) deal. According to the ministry’s proposals, 150,000 tonnes of rice will be imported from Thailand at a cost of TK578.92 crore, while the remaining 100,000 tonnes will be supplied at Tk438.22 crore by local traders who import rice from India, Thailand, Pakistan and Vietnam. Earlier, the Prime Minister’s Office directed the ministry to import 1.15 million tonnes of rice under G2G agreements and also through international as well as domestic tenders within the next month. Last week, the Cabinet Committee on Public Purchase approved another proposal of the ministry to purchase 100,000 tonnes of rice from India at Tk377.65 crore, each tonne costing $455 (Tk37, 487). The rice will be imported under on a G2G basis.
ACI to invest BDT 287.0 million in subsidiary, joint venture companies
Advanced Chemical Industries (ACI), one of the largest business conglomerates in Bangladesh, has decided to further invest BDT 287 million into its two units, according to an official disclosure on Tuesday. ACI has decided to further invest BDT 247.0 million into its subsidiary ACI Foods as additional equity against rights offer for 2,470,000 ordinary shares of BDT 100.0 each subject to approval from Bangladesh Securities & Exchange Commission (BSEC), said the discourse. The board has also decided to further invest BDT 40.0 million into its joint venture company, Tetley ACI (Bangladesh) as additional equity against rights offer for 400,000 ordinary shares of BDT 100 each subject to approval from the securities regulator, the disclosure added.
Square Pharma approves the matter
The board of directors of Square Pharmaceuticals has approved the matter of merger with two other companies of the same group, according to Dhaka Stock Exchange (DSE). As per the board’s decision, Square Formulations and Square Herbal & Nutraceuticals will be merged with Square Pharmaceuticals. Square Pharmaceuticals was listed on the stock exchanges in 1995. The company’s sponsor-directors hold 34.43% shares, while institutions hold 10.13%, foreign investors 19.33% and general investors 36.11%. Square started the GMP compliance manufacturing plant, which is known as Square Formulations, to meet up the increasing demand of pharmaceutical products since 2014, according to official website. On the other hand, the Square Herbal & Nutraceuticals is the first healthcare entity with a robust pledge to create a new era in the field of medication in Bangladesh. Meanwhile, the board of directors of Square Textile has also taken a decision of merger with Square Yarns.
Western Marine builds two ships for Indian firm
The shipbuilding sector of Bangladesh has an immense opportunity to work with India as the neighbouring country is set to expand water-based cargo movement targeting huge growth in infrastructure development. India’s current government has given importance to bringing a model shift in the transport of cargo from road to rail and rail to water, said BVJK Sharma, chief operating officer and joint managing director of JSW Infrastructure, a concern of Jindal Group. Built at BDT 96 crore, the two bulk carriers, JSW Pratapgad and JSW Raigod, are among the ten commissioned by the Indian company in 2015 for a total of BDT 480 crore. Western Marine Shipyard has successfully navigated the downturn faced by the world’s shipbuilding sectors in last 4 to 5 years, said its Chairman Sohail Hossain.
Akij eyes big profits from purchase of Malaysian firm
Akij Jute Mills Ltd has proclaimed the prospect to make $83.06 million in 10 years from the overseas purchase of Malaysian fibreboard manufacturing firm Robin Resources and its subsidiary Robina Flooring. The company is also promising to repatriate $29.90 million from the overseas equity investment within the time frame. The prospects were highlighted in a report of the Bangladesh Bank Performance Evaluation Committee (PEC). The Financial Institutions Division is likely to send the PEC report to the cabinet committee on economic affair for its consent today. Finance Minister AMA Muhith will preside over the meeting. Earlier, a total of three leading Bangladeshi companies applied to make equity investments overseas. Scrutinising the proposals, the PEC gave its recommendation for Akij’s proposal to remit $20 million to Malaysia for buying the fibreboard and wood composite manufacturing firm. The report of the evaluation committee said the Akij Jute Mills, a concern of Akij Group, will also return its investment of $20 million within three years after the acquisition of Robin Resources.
Local and Global Stock Indices
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,968.02||↓ 13.93||↓ 0.23%|
|DJIA||23,441.76||↑ 167.8||↑ 0.72%|
|FTSE100||7,526.54||↑ 2.09||↑ 0.03%|
|Nikkei 225||21,830.78||↑ 25.61||↑ 0.12%|
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$52.42||↓ 0.05||↓ 0.10%|
|Crude Oil (Brent)*||$58.39||↑ 0.06||↑ 0.10%|
|Gold Spot*||$1,274.53||↓ 2.05||↓ 0.16%|
Major Currencies Exchange Rates Movement in Last Seven Days
|USD 1||BDT 82.61*|
|GBP 1||BDT 108.47|
|EUR 1||BDT 97.14|
|INR 1||BDT 1.27|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.