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.
Graduation from LDC: Bangladesh to face tougher export challenges
Bangladesh’s export sector will face tougher competition in the global market after losing duty-free market access and preferential trade benefits when it graduates from LDC status and officially joins the ranks of developing countries. The Committee for Development Policy, a UN panel, on March 16 announced Bangladesh’s eligibility for the developing country category as it has met the three prerequisite criteria in terms of National Income per Capita, Human Assets Index, and Economic Vulnerability Index.
Muhith warns of losing soft loan facility, rise in debts
Finance Minister A M A Muhith on Wednesday warned all of some impending challenges, including losing concessional loan facility and increase in debt as the country has earned eligibility, preliminarily, for graduating to a middle-income country. “From now on no loan will be available, everything will be debt. When we take debt, we have to be careful, so that we do not sink into quicksand.”
Bangladesh’s excess liquidity falls by 18% in January
The overall excess liquidity with the country’s banks dropped by nearly 18 per cent in January mainly due to higher credit growth, particularly in the private sector. The liquidity came down to BDT 712.36 billion in January 2018 from BDT 866.96 billion a month before, according to latest statistics of the central bank. It was BDT 921.64 billion in September 2017.
No VAT on port services for exporters: NBR
Export-oriented industries will not have to pay value-added tax on port services provided by the Chittagong Port Authority, said the National Board of Revenue. VAT wing of the revenue board on Tuesday asked the port authority to stop collecting 15 per cent VAT on port services from 100 per cent export-oriented industries.
Shipping lines to issue bills of lading to importers
The central bank of Bangladesh has relaxed foreign exchange regulations allowing the shipping lines to issue bills of lading to the name of importers after receiving advance payment. The shipping lines earlier issued such bills to the name of banks concerned, officials said.
ICB plans to issue Tk 2,500cr bond
The Investment Corporation of Bangladesh, which is one of the largest investors in the capital market, plans to issue a long-term bond of Tk 2,500 crore to prop up jittery stocks. The development comes as the state-owned enterprise finds itself in a spot of cash crunch after banks started pulling out funds from November last year following a central bank notice that instructed them to strictly maintain their single borrower exposure limit.
Commercial gas price might rise by 70%, household gas could cost double
After the much-criticized two-step hikes in the price of gas last year, authorities have proposed yet another increase which could see the price of gas for commercial prices rise by 70%. On Tuesday, Bakhrabad Gas Distribution Company (BGDC) proposed the Bangladesh Energy Regulatory Commission (BERC) to hike commercial prices by 70%. A formal proposal was submitted on Wednesday.
Call to sustain economic reform
Bangladesh has challenges ahead in areas like health, education, and financing as the nation transitions from a least-developed country, speakers said Wednesday. They said that though LDC graduation is “a great achievement” for the country, it also faces the challenge for maintaining export income.