Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning news highlights compiling reports, published by different newspapers and news portals in Bangladesh.
Public servants pay to eat up largest chunk of rev budget
The pay and allowances of public servants are set to constitute the largest chunk of the revenue budget for the next fiscal year (2015-2016). The government will be allocating an enhanced amount of Tk 450 billion on this account for over 1.3 million public servants. Analysts, however, appeared sceptical about the gains from this fat outlay on account of pay and allowances since the productivity output of public servants is unlikely to get any boost. The allocation to be proposed in the new budget is at least Tk 160 billion higher than that of the current year.
Weekly Review: Bangladesh’s stocks extend winning streak
Bangladesh’s stocks closed higher for the four straight weeks that ended on Thursday despite the prime bourse faced ‘technical glitches’, which delayed trading activities in first two sessions of the week. The week featured five trading sessions as usual. Of those, the market closed higher in first three sessions while last two saw correction. Week-on-week, DSEX, the benchmark index of the DSE, went up by 61.43 points or 1.37 percent to end at 4,544.71 points.
High non-bank borrowing puts extra pressure
The government is counting a huge amount of interest for domestic borrowing for the financial year 2014-15 because of upward trend in non-bank borrowing by way of national savings tools compared with borrowing from banking sources, said Bangladesh Bank officials, economists and experts. The increased interest payments will put an extra pressure on the government to manage its deficit financing of Tk 61,346 crore for the annual budget of the current fiscal, they said.
The government set a target to pay interest of Tk 29,305 crore in the annual budget for FY15 against the domestic borrowing (mainly bank and non-bank borrowing). A Bangladesh Bank official said that the interest payments for domestic borrowing might exceed its original target because of the upward trend in investment on the national savings tools by clients.
Bangladesh, India expected to ink dozen of deals during Modi’s Dhaka visit
Bangladesh and India are expected to ink around half a dozen important memoranda of understanding to forge a strong strategic partnership between the two countries. Besides, they will strike six vital agreements to further strengthen the bilateral cooperation on road, rail, waterways, trade, security, infrastructure and people-to-people contact. Diplomatic sources in Dhaka and New Delhi said the June 6-7 Bangladesh visit of Indian Prime Minister Narendra Modi will open a new chapter in Indo-Bangla ties.
Commodity prices keep rising
The prices of essential commodities continued to rise in the city’s kitchen market in last week as traders increased the prices in phases ahead of Ramadan. Last week the prices of red lentil and chicken increased and the prices of gram, onion and sugar remained high. The price of broiler increased by Tk 10 a kilogram and it was selling at Tk 165-Tk 170 a kg on Friday due to a supply shortage, traders said. The prices of locally-bred hens remained high and the item was selling at Tk 260-Tk 320 a piece weighing from 800 grams to one kg.
BD-India water transit deal renewal becomes uncertain
The renewal of the Indo-Bangladesh water-transit protocol has become uncertain with Delhi disagreeing to allow the passage of goods to third countries through its land, pay levies to Dhaka for such transit and raise the maintenance cost of protocol routes, officials said. The Protocol on Inland Water Transit and Trade (PIWTT) is scheduled to be signed during the Dhaka visit of Indian Prime Minister Narendra Modi on June 6-7. During the shipping secretary-level meeting in New Delhi on April 20 this year, the two sides had agreed to amend the PIWTT in line with the bilateral trade agreement
Pigeon jailed for spying in India
With a wire-like object on its body and a mysterious stamped message on its tail, it’s no wonder the bird had security services in a flap. A pigeon was arrested and jailed in India on suspicion of being a “spy” after it landed in Manwal village, around two and a half miles from the Pakistan border. It was discovered on Wednesday by a 14-year-old boy whose suspicions were aroused when he spotted a stamped message in Urdu on its tail that read “Tehsil Shakargarh, district Narowal”, along with some numbers.
India’s economy surges by 7.5%
India’s economy grew 7.5% in the three months ending in March, higher than the previous quarter and above expectations. It means the country has outpaced China’s economic expansion for two quarters out of the last three, reports BBC. Forecasts were for growth of about 7.3% for the period compared with a year earlier. However, the country adopted a new way of calculating growth, which some experts say distorts the real picture. The country’s annual growth for the year 2014-15 was 7.3%. Despite the robust growth numbers, India’s government and its businesses are hoping the country’s central bank will move to cut lending rates again soon to give the economy a further boost.