Tuesday’s morning business round up of Bangladesh

Last updated: March 3, 2015

Dhaka, Bangladesh (BBN)- The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

Ministries volunteer to cut ADP allocations
Some important ministries have desired trimming of their original allocations made in the annual development programme (ADP) for the current fiscal year. The Planning Commission (PC) is now revising the ADP for the current financial year (2014-15) against the backdrop of the ongoing troubled political situation and weak implementation performance. The request for downsizing of allocation, however, has come in contrast to the pressure that is now being put by some other ministries on the PC to make additional allocation for new development projects, sources said.

Electronic LC system faces hiccups

Implementation of electronic letter of credit is facing some troubles after its introduction on January 25. The National Board of Revenue has identified five setbacks in proper implementation of e-LCs and held the commercial banks responsible for such problems, officials said. Importers and exporters also do not provide necessary and relevant information or provide partial information in the LC documents causing problems in the e-LCs system, they said.
These problems create complexities in customs assessments and valuation process causing delay in release of imported goods, they added.

NBR moves for fast disposal of tax cases
The revenue board has moved to accelerate settlement of pending court cases to realise a large amount of stuck-up revenue and thus offset possible shortfall in revenue collection due to political impasse, officials said. National Board of Revenue (NBR) chairman Nojibur Rahman and members concerned met the Chief Justice (CJ) on Monday to seek his support on quick disposal of tax-related cases. Talking to the FE, NBR income tax member (legal and enforcement) Kalipada Halder said there are some 23,000 court cases, involving some Tk 260 billion income tax, customs duty and VAT.

Bangladesh Bank purchases $37m more from four banks
Bangladesh Bank (BB) purchased US$37 million more from four commercial banks on Monday to help keep the inter-bank foreign exchange (forex) market stable, officials said, “We’re purchasing the greenback from the banks directly at market rate to protect the interests of exporters and migrant workers by keeping the exchange rate of the local currency against the US dollar stable,” a BB senior official told BBN in Dhaka. The US dollar was quoted at BDT 77.80 in the inter-bank forex market unchanged from the previous level, market operators said.

RMG sector gives govt 20pt demand for unrest ‘losses’

Textile and apparel sector leaders on Monday placed a 20-point demand to finance minister AMA Muhith including rescheduling facilities for classified loans, increasing the repayment tenure of term loans and cash incentives against the cost of Freight on Board to regain losses caused due to continuing political unrest. At a meeting with leaders of Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association and Bangladesh Textile Mills Association at the secretariat, finance minister assured to look into the demands.

IPO subscription of BSRM oversubscribed by 20 times
The initial public offering (IPO) subscription of Bangladesh Steel Re-Rolling Mills (BSRM) oversubscribed by 20 times against its public issue, according to Chittagong Stock Exchange (CSE).  The Chittagong-based steel manufacturing conglomerate received over BDT 12.32 billion through IPO against public issue of BDT 612.50 million, which is over subscribed by 20 times. Among the total subscription received, BDT 8.62 billion from general public, BDT 916.27 million from affected small investors, BDT 588.88 million from non-resident Bangladeshis and BDT 2.20 billion from mutual fund, according to final data from the CSE.

Remittance falls by 5pc in Feb for turmoil
The flow of inward remittance fell by more than 5.0 per cent in February over the previous month, mainly due to the ongoing political situation along with fewer working days. The remittance from Bangladeshi nationals working abroad was estimated at $1.18 billion in February 2015. The amount was lower by $64.62 million, received in January. The inflow of remittances, however, increased by 0.47 per cent to $1.18 billion in February 2015 from $1.17 billion in the same month of the previous calendar year, according to the central bank statistics.

BBN/SSR/AD-03Mar15-10:52 am (BST)

 

 

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