Dhaka, Bangladesh (BBN) - The Bangladesh Business News (BBN) prepares the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Raising investment: the biggest challenge ahead: Boosting economic growth and investments will be the biggest challenges for the government in the upcoming fiscal year, economists and businesses said yesterday. Rebuilding the damaged image of the readymade garment sector that accounts for nearly 80 percent of the country's total exports will be another tough task, they said. They pointed out the issues at a discussion on “the upcoming budget: promises and challenges” organised by Economic Reporters' Forum (ERF) at the office of Dhaka Chamber of Commerce and Industry.
Muhith says US not giving duty-free access on political grounds: Finance Minister AMA Muhith said Saturday that the United States (US) is perhaps not allowing Bangladesh duty and quota-free access to its market on political grounds. "They (US) are not allowing duty and quota-free access possibly on political grounds," finance minister AMA Muhith told the reporters at his secretariat office on the day. Mr. Muhith said: "They never refused to grant duty free and quota free access to for Bangladesh as a least developed country (LDC). All LDCs get the privileges, excepting Bangladesh."
Foreign loans for social safety net to drop in new FY: Foreign loans for the social safety net projects are likely to fall in the new fiscal year as the lenders are showing more interest in the infrastructure and transport sector deals. The Economic Relations Division officials said they were expecting to strike deals worth only US$ 71.4 million with the lenders on the social protection projects in the coming fiscal year. The amount of loan was US$ 537.85 million for 14 projects that were signed between the government and the lenders—the World Bank, Asian Development Bank and Japan International Agency for Cooperation to improve safety net programme for the poverty-stricken people.
Bangladesh Taka remains stable against US dollar: The exchange rate of Bangladesh Taka (BDT) against the US dollar maintained stable tone in the last week. The market may see the same tone in the current week as well, experts said. The average daily inter-bank USD/BDT transaction volume was about $25.73 million against around $50.23 million of the previous week, according to the market operators. Most of the banks kept their published foreign exchange rates unchanged last week. The USD/BDT selling rates for importers of major foreign and private banks was at 77.82-78.35, while USD buying rates from exporters were at 76.82-77.35.
IMF suggests Tk 5,000cr for four state banks: The International Monetary Fund has asked the government to put aside Tk 5,000 crore in the upcoming budget as capital for the four state-owned banks. Of the total amount, the IMF suggested, Tk 1,500 crore should be dispatched to the four banks by December and the rest by June 2015, a finance ministry official said, referring to the lender's fifth review of the Extended Credit Facility. The multilateral lender, however, has instructed that certain conditions be tagged with the hand-out, such that they obligate Janata, Rupali, Sonali and Agrani to improve their performance and automate their branches by 2016.
Capital shortfall of BKB, RAKUB crosses Tk 64.50 billion: Capital shortfall of two state-owned agricultural banks - BKB and RAKUB - has crossed Tk 64.50 billion, putting them into a difficult situation to comply with Basel-II requirements, officials said. Such capital shortfall of the Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB) has been attributed to operating losses due mainly to lending at 'subsidized' rate of interest. "Two banks have faced capital shortfall over the years mainly for their operating losses," a senior official of the Bangladesh Bank (BB) told the FE.
FDI flow is still lower in Bangladesh: The flow of net foreign direct investment (FDI) of Bangladesh has increased by an irregular trend over the last fifteen years. Despite the amount of FDI has increased, it is still lower compared to other Asian countries, the Unnayan Onneshan (UO) said on Saturday. In the fiscal year (FY) 2011-12, inflow of FDI increased to US$ 1194.88 million which is 53.38 percent higher than that of the previous fiscal year. During the same period, major competitive countries like India, Indonesia, Vietnam and Pakistan, however, received FDI inflow of USD 32000, USD 19000, USD 7000 and USD 1300 million respectively, according to the independent multidisciplinary think-tank.
BBN/SSR/AD-27Apr14-8:30 am (BST)