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.
Bangladesh to lose $7b in exports a year
Bangladesh stands to lose $7 billion in export earnings every year once it graduates into the developing country bracket in 2027 as the trade benefits it currently enjoys will be phased out then, a Planning Commission report says. As a least-developed country, Bangladesh currently enjoys zero-duty benefits on its shipments to the European Union, Canada, Australia and many other countries.
Small savers to cheer as source tax slashed
The National Board of Revenue (NBR) has made 5.0 per cent reduced rate of tax at source on the yields of savings certificates in case of investments up to Tk 0.5 million. The decision was to take effect from August 28, 2019 and onwards.
Private sector credit growth hits fresh 6-year low in July
The descending trend in private sector credit growth has remained unchanged with the growth rate hitting fresh six-year low in July this year amid heavy borrowing from the banking sector by the government, reflecting stagnant private investment state. As per the latest Bangladesh Bank data, the private sector credit growth slumped to 11.26 per cent year-on-year in July this year, much lower than the BB’s cautious projection for the fiscal year 2019-2020.
Foreign investment at capital market falling for 6 months
The net foreign investment at Dhaka Stock Exchange (DSE) remained negative for the six consecutive months till August as the foreign investors, muddled by falling trend in the market and haphazard environment in the financial market, kept selling shares amid volatility at the market during the period. In August, the foreign investors sold shares worth Tk279 crore against their purchase of shares worth Tk176 crore. In July, they bought shares worth Tk309 crore against their sales worth Tk474 crore.
Bangladesh’s stocks see another bearish session
Bangladesh’s stocks witnessed yet another bearish session on Sunday as cautious investors continued their selling binge on large-cap stocks. DSEX, prime index of Dhaka Stock Exchange (DSE), went down by 25.09 points or 0.49 per cent to settle at more than one-month low at 5,070.
Banks hardly lend via agent banking
Banks are showing reluctance in lending through the agent banking window based in rural areas despite mobilising large sums through the platform. As of June, Tk 5,284 crore was collected through the window, up from Tk 2,013 crore a year earlier, according to data from the Bangladesh Bank.
Reliance inks final deals with Bangladesh entities
The Reliance Bangladesh LNG and Power Ltd, owned by the Reliance Power Ltd of India, signed final deals with three Bangladeshi entities concerned on Sunday to construct a 718-megawatt (MW) combined cycle power plant. Under the agreement, the power plant project will be implemented within 36 months of inking the deal (August 31, 2022). The Re-Gasified Liquefied Natural Gas (RLNG)-based plant will be located at Meghnaghat in Narayanganj.
Foreign investors for ensuring predictability of government policy
Businesses on Sunday urged the government to ensure predictability of policy for making short and medium term business plan. At a luncheon meeting organised by Foreign Investors’ Chamber of Commerce and Industry held at Westin Hotel in the city, they said that in the new budget the government introduced very high tax rate.