BBN Briefing – Good Morning Bangladesh 

Last updated: September 1, 2024

Good morning. Here's what happened overnight and what you need to know today.

1.

Budget May Squeeze: The interim government is planning to revise the national budget for the current fiscal year urgently and cut "wasteful expenditures" in order to alleviate the pressure on the foreign currency reserves and tame persistent inflation. A finance ministry official said last week that formal discussions in this regard may start in September, adding that there is scope to cut the budget by more than Tk 100,000 crore. (The Daily Star)

2.

Private Investment Falls: Private investment as a percentage of Bangladesh's gross domestic product (GDP) dropped in the last fiscal year, reflecting slower industrial growth, according to the Bangladesh Bureau of Statistics (BBS). Provisional data show that private investment fell to 23.51% of GDP in the 2023-24 fiscal year (FY24), down from 24.18% in FY23. (The Business Standard)

3.

Insure Factories against Attacks: Businesspeople in Bangladesh are becoming interested in sabotage and terrorism insurance following incidents of arson, looting and vandalism at several industrial establishments across the country, according to various insurers. Sabotage and terrorism insurance provides coverage against financial losses resulting from politically motivated violence as well as acts of terrorism or sabotage. (The Daily Star)

4.

Flood Costs Tk 33.5b in Crop Losses: The deluge in south-east and other parts has devastated the key staple rice and other crops in 23 districts, damaging 1.0-million tonnes of produce worth Tk 34 billion so far. Agriculture ministry in its primary projection, released on Friday night, said 1.43-million hectares of land were brought under farming in the districts affected by flash flood, coupled with days of driving rain. A total of 0.372-million hectares, or more than 26 per cent of the total standing crops, have been inundated in the districts. (The Financial Express)

5.

Internet Users Surge: Internet usage in Bangladesh has significantly risen across various activities, including social media browsing, online shopping, educational pursuits and official tasks.An analysis of data from the Bangladesh Telecommunication Regulatory Commission (BTRC) shows that the number of internet users in the country increased by 10.05 per cent in the first six months of 2024. (The Business Post)

6.

Why BB Remained Open on Jan 5 Night’17: Bangladesh Bank typically maintains regular office hours since its inception, but Fazle Kabir had changed this practice for his own interest after assuming the role of central bank’s governor in mid-2016. Mr. Kabir officially took the helm of the country’s central bank on March 20 in 2016, with a primary focus on recovering the US$81 million stolen from the bank's foreign exchange reserves and restoring the confidence of central bankers after the heist. All of his efforts went in vain, as Mr. Kabir could not recover the stolen reserve money from the Philippines. (Bangladesh Business News).

---Saju Sarker

Bangladesh Business News
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