Good morning. Here's what happened overnight and what you need to know today.
1.
100 Days of Govt: Businesses Seek High Security, Low Interest: Weak law and order, high interest rates on bank loans, and slow bureaucracy remain big concerns for entrepreneurs despite many steps taken by the government in its first 100 days, business leaders said yesterday. With the supreme sacrifice of hundreds of youths in the July-August mass uprising that toppled the previous regime, the people have huge expectations from this government, for reforms to ensure transparency and accountability, and to restore macroeconomic stability, they observed. (The Daily Star)
2.
Engage Private Sector More in Reforms to Energise Economy: The government should increase its engagement with the country's private sector in making policies and decisions amid ongoing reforms, according to prominent business leaders, who cited major challenges such as high inflation, rising interest rates and slowing demand and investment that are now plaguing private businesses. Mentioning that the private sector is the key driver of Bangladesh's economy, they said increased engagement can better resolve their issues and remove investment bottlenecks, boosting employment and economic growth. (The Daily Star)
3.
Review Trims MRT-5 Project Cost by Nearly Tk7,000cr: The cost of the 17.20 km metro rail MRT-5 (Gabtoli-Dasherkandi) Southern Route project saw a sharp 15% reduction in cost following a recent review, indicating the potential of savings that can be achieved through reassessments of mega projects, initiated by the previous government. The cost cut, equivalent to Tk6,898 crore, came after Dhaka Mass Transit Company Limited (DMTCL) re-evaluated the project on instructions from the Planning Commission, now led by interim government's Adviser Prof Wahiduddin Mahmud. (The Business Standard)
4.
Meghna Ventures Into Bus, Truck Tyres with Tk1,300cr Investment: Meghna Innova Rubber Company Ltd, a subsidiary of the Meghna Group, has commenced manufacturing tyres for buses and trucks with a Tk1,300 crore investment. This latest expansion positions Meghna, the country's largest bicycle exporter, to reduce reliance on imported bus and truck tyres, thereby saving valuable foreign currency. "Since last month (October), we have started producing 15-inch to 20-inch bias tyres for trucks and buses. Our goal is to meet most of the demand for these tyres in Bangladesh within the next six months," Lutful Bari, chief operating officer of the Meghna Group, told TBS. (The Business Standard)
5.
Call Money Rate Shoots over 10% Amid Liquidity Crunch: Call money becomes a tool for making quick bucks by the banks with the lending rate on the interbank market rising fast, crossing over 10 per cent on average. Thursday's rate marks one of the highest call-money rates in many years, according to bankers. The rates ranged between 9.8 per cent and 11 per cent on the last transaction day, and an average of 10.01 per cent for the day. Central bankers attribute the liquidity strain to increased bets by many banks on government treasuries, which offer risk-free and higher returns compared to other lending avenues. (The Financial Express)
6.
Financial Challenges Are Manageable: BB Governor: Bangladesh Bank Governor Ahsan H. Mansur has dismissed concerns about the financial crisis, assuring that the prevailing challenges are manageable. "We are not in a crisis. The issues in the financial sector are fully solvable. We won't face a situation like Sri Lanka or any other countries experiencing severe economic distress," he said at MasterCard Excellence Award 2024 at a city hotel on Saturday. Highlighting improvements in the country's external sector, the BB governor who was present as the chief guest said the balance of payments has stabilised while there has been a rise in foreign exchange reserve and stability in the currency exchange rate. "I see no risks arising from the external factors." (The Financial Express)
----Saju Sarker
BBN/SSR/AD