Tuesday’s morning business round up of Bangladesh

Last updated: March 24, 2015

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

Non-farm activities generate the bulk of rural income

Rural households earn more from non-farm activities than agriculture due to the low price of farm products and lack of an appropriate marketing system, a recent survey by Bangladesh Bureau of Statistics found. Of their average annual income of Tk 91,739, 22.77 percent comes from agriculture sector and 77.23 from the non-agriculture sector, according to the Rural Credit Survey 2014. The reason, according to Khondker Ibrahim Khaled, former chairman and managing director of Krishi Bank, was that the production cost for agriculture is much higher, which may have eaten into the incomes.

Tk 4.44b given to refinance 18,658 investors' portfolios
A sum of over Tk 4.44 billion has been disbursed under a bailout package against the portfolios of 18,658 of the investors affected during December 2010-January 2011 stock-market debacle, officials said. According to information found in the securities' regulator and the Investment Corporation of Bangladesh (ICB), 27 merchant banks and brokerage firms availed the recompensing facility from the refinancing scheme. "The loan-sanctioning committee of the scheme has issued sanction letters to 44 merchant banks and brokerage firms who sought the funds worth Tk 5.26 billion for 21,067 affected investors," said an official of Bangladesh Securities and Exchange Commission (BSEC).

RMG owners need to do more to improve working condition

Canadian high commissioner Benoit Pierre Laramee on Monday said more works were needed to be done in the readymade garment sector in Bangladesh to improve working condition and to make the sector more competitive. ‘The recognition and protection of the rights of workers will be a key factor for the sustainability and productivity,’ he said at a press briefing following a meeting with the leaders of Bangladesh Garment Manufacturers and Exporters Association in the city. The envoy urged the BGMEA to continue its role in helping to improve working condition in the RMG sector and said that the creation of re-employment opportunities for the Rana Plaza victims was required. Benoit said, ‘It is important to ensure compliance with safety standards but more important to ensure that a second Rana Plaza tragedy never happens again.’

Yunus, NBR in tax dispute

A tax dispute has arisen between the National Board of Revenue and Nobel Laureate Prof Muhammad Yunus over gifting of earned money to family members. The NBR argued that the Nobel laureate had given out about Tk 77 crore as gifts to his family members and others over three assessment years, against which Tk 15.39 crore as tax was payable to the state. But a legal counsel for Yunus said the amount should get tax exemption as per rules as the money was given to family members for maintenance. Earlier this month, the microcredit pioneer went to the High Court challenging the NBR decision to impose tax on the amount he had given out from his already-taxed money. The case is still pending.

Remittance mostly used in consumption: ILO
Use of remittance in Bangladesh is still more in consumption than investment even after receiving billions of dollars from migrant workers for over three decades, according to a latest finding. The International Labour Organisation (ILO) in its study found out the causes of such unproductive state of the foreign exchanges the country's overseas workers send home.    It points out lack of policy and programmes, including absence of awareness-building campaigns and training for migrating workers and families dependent on remittance.

Govt pay hike reviewers get more time

The government has for the second time extended the tenure of a secretarial committee tasked with reviewing the recommendations of the 8th National Pay and Service Commission (NPSC). According to a Cabinet Division circular issued yesterday, the committee’s tenure has been extended from March 15 to April 15. Earlier, its tenure was extended by one month on February 15. Finance Ministry Senior Secretary Mahbub Ahmed, an influential member of the secretarial committee, told the Dhaka Tribune yesterday: “We hope the review committee will submit its report by April 15.” “It is the government’s decision when it will execute the NPSC recommendations,” he added.

BBN/SSR/AD-24Mar15-10:33 am (BST)

 

 

 

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