Modi's Bangladesh visit

Sunday’s morning business round up of Bangladesh

Last updated: June 7, 2015

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

India to give $2b in low-cost loans
India will provide $2 billion of fresh low-cost loans to Bangladesh, most of which will be used for connectivity-related projects to increase trade between the two countries. “Our development partnership is scaling new heights,” Indian Prime Minister Narendra Modi said after a preliminary agreement was signed yesterday. The fund will support infrastructure and other development activities in Bangladesh, he added.

Indian cos to invest $5.5bn for setting up power plants in Bangladesh
Two Indian companies are set to invest $5.50 billion for setting up 4,600-megawatt (MW) power plants in Bangladesh. The state-owned Bangladesh Power Development Board (BPWB) signed two memoranda of understanding (MoUs) in this connection with Indian companies Adani Power Limited and Reliance Group at the Bidyut Bhaban in the capital Dhaka on Saturday. The deals were signed when Indian Prime Minister Narendra Modi is paying his maiden trip to Bangladesh.

Govt bank borrowing target to hit pvt sector: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry on Saturday observed that the government’s dependence on bank borrowing might put a negative impact on credit flow to the private sector. The newly-elected president of the country’s apex trade body, Abdul Matlub Ahmad, made the observation at a press conference on proposed national budget for the financial year 2015-16 that was placed before the parliament on June 4. ‘If the government fails to arrange the deficit financing properly, the development activities will be hampered,’ he said.

CII: Modi's visit to result in $10b trade
Indian Prime Minister Narendra Modi's visit to Bangladesh will result in big gains for both countries that can have bilateral trade worth $10 billion by 2018, Confederation of Indian Industry (CII) has said, reports PTI. According to CII, trade between India and Bangladesh was at $6.9 billion in 2014-15. However, it is heavily in India's favour with its exports to Bangladesh at $6.2 billion and imports at $0.6 billion.

Electricity connections to industrial units resume
State Minister for Power, Energy and Mineral Resources said the government had started giving power connections again to new industrial consumers from Saturday last. "We have started giving electricity connections from today (Saturday)," he said on the sideline of a programme arranged on the occasion of signing of memoranda of understanding (MoU) between two Indian private firms and the state-run Bangladesh Power Development Board (BPDB) for building 4,600 megawatts (MW) power plant projects at Bidyut Bhaban in the city.

Two economic zones for India
Bangladesh yesterday signed a deal with India to develop two economic zones to bring in more Indian investments and reduce the rising trade imbalance with the neighbour. The industrial enclaves will be set up in Mongla, the country's second seaport, and Bheramara, Kushtia in five years, Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority, told The Daily Star by phone. He shared the development after signing an agreement with Indian Foreign Secretary Subrahmanyam Jaishankar, marking the two-day visit of Indian Prime Minister Narendra Modi in Dhaka. The Indian Economic Zone will promote Indian investments in Bangladesh, said Modi in his written speech.

Bangladesh expedites monitoring on bank’s OBU operations

The central bank has expedited its monitoring and supervision on off-shore banking units (OBUs) of the commercial banks after nearly 30 years of its inception in Bangladesh for minimising risks. As part of the moves, the Bangladesh Bank (BB), the country’s central bank, is now collecting information on assets and liabilities of each OBU on weekly basis for assessing their risks. Besides, the central bank has started preparations to bring the functions of OBUs under regular monitoring by amending the existing provisions on operation and establishment of the OBUs operations in Bangladesh.

Govt to impose AIT on 17 service sectors

The government has identified 17 new services sectors and rationalised the tax rates for the sectors through imposing tax at source at different rates in place of average 10 per cent in the next fiscal year. In the Finance Bill-2015 which was placed before parliament on Thursday, the National Board of Revenue said that the authorities would deduct the income tax at applicable rates from the sectors while making payment against the received services. According to the proposal, the government and non-government agencies will deduct tax at source at the rate of 10 per cent on the payment to catering service providers, 10 per cent on commission and 1.5 per cent on gross receipts of cleaning service providers and collection and recovery agency, event management and private security service providers.

BBN/SSR/AD-07June15-7:54am (BST)

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