Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Development spending slightly up
Development spending went up more than 2 percentage points to 13.6 percent in the first four months of fiscal 2016-17 from a year earlier but it is still lagging behind given the government’s ambitious budget. This year’s annual development programme of Tk 123,346 crore is 50.9 percent larger than last year’s, and has crossed the Tk 1 trillion ($12.7 billion) mark.
1,600MW power export to Bangladesh: Adani demands high rates
India’s Adani Power Limited demanded high rates for exporting 1,600MW of power to Bangladesh from its plants to be set up in Jharkhand, said officials. A negotiation meeting with Adani is scheduled for today with power division secretary Monwar Islam in the chair to discuss the price of electricity and other terms and conditions of power purchase contract, they said. Adani demanded 9.287 US cents or equivalent to Tk 7.43 for each unit or kilowatt-hour of electricity considering imported coal at US$ 112.59 per tonne with port charges, freight, inland transportation and taxes and duties.
VAT causes split in businesses
Businesspeople stand divided over the value-added tax (VAT) dispute with small traders sticking to demands. A section of small businesses raised four-point demands, including continuation of the package VAT with its rate cut. Other members of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) play a different tune on the demand.
Bangladesh Bank sites with nine banks Monday
The central bank of Bangladesh is going to site with top executives of nine new private commercial banks on Monday to review their overall performance — with the issue of classified loans topping the agenda. The Bangladesh Bank (BB) could raise various issues, including rising trend in non-performing loans (NPLs) along with advance-deposit ratio (ADR) of the new banks, according to the officials.
DSEX crosses 4,700-mark
Bangladesh’s stocks closed higher on Sunday, with key index of the premier bourse crossing the 4,700-mark after one month, as optimistic investors were active on sector specific stocks. Brokers said the market extended the winning spell for the four consecutive sessions as the investors’ sentiment regarding the market remained optimistic.
Confusion surfaces over DESCO share offloading
Confusion surfaced over offloading another 10 per cent shares of Dhaka Electric Supply Company to the capital market as the officials of the entity denied any such final decision. A Dhaka Stock Exchange web-post on November 6 said that the BPDB, the major shareholder of DESCO, as per the government order will offload 10 per cent shares of DESCO from its possession to the capital market.
ADB to prove $167m to boost gas transmission in Bangladesh
The Asian Development Bank (ADB) has approved a $167 million loan to improve production efficiency at a key gas field north of the capital and by expanding transmission infrastructure. The Asian Infrastructure Investment Bank (AIIB) is expected to lend an additional $60 million, subject to board approval, which will be managed by ADB. It is the second project to be co-financed by ADB and AIIB.
Stronger dollar weighs on remittance
A stronger US dollar against currencies in Bangladesh’s expatriate hubs has affected the inflow of remittances from those host economies. If the devaluation of currencies, such as pound, euro, ringgit and riyal continues, the amount of remittance will go further down, according to analysts. “We have identified a devaluation of currencies as the major reason for the decline in remittance,” said a senior Bangladesh Bank official.