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
Interested only in state resources: Mainstream political parties, especially the Awami League and BNP, are in a race to "grab state resources", resulting in criminalisation of politics, increased influence of black money and emergence of "godfathers", says a study of the Centre for Policy Dialogue. The parties have also become less interested in ideological or policy debate, finds the study titled “Political parties and democracy in Bangladesh.” The study was unveiled at a programme at the capital's Brac Centre Inn yesterday. The findings were acknowledged by top leaders of the AL, BNP and Jatiya Party, who were present at the programme, moderated by Prof Rehman Sobhan, chairman of the CPD.
3 gas cos unwilling to offload shares: Three public sector gas companies have declined to offload their shares in the capital market, in defiance of a directive of the highest authority of the government, finance ministry officials said. The state-owned companies — Bangladesh Gas Fields Company Ltd, Gas Transmission Company Ltd and Sylhet Gas Fields Ltd — operating as subsidiaries of Petrobangla, last week informed the finance ministry about their inabilities which irked finance officials. The officials proposed that finance minister AMA Muhith should order stern actions against top officials of the state firms for their alleged disobedience, sources said.
Govt to take $1.47b loans for 3 projects: The government plans to take $1.47 billion hard-term loans for three projects, including the regional submarine telecommunications project. The finance ministry will place proposals today at a meeting to be chaired by Finance Minister AMA Muhith. The government will take $44 million from Islamic Development Bank to implement the submarine cable project, while Submarine Cable Company will spend around $70 million to acquire the 1,400 Gbps capacity. The rate of interest on the loan will be Libor+1.35 percent—to be repayable in 13 years, including a grace period of three years. In March, Bangladesh signed a contract with a consortium to install a second submarine cable that will increase the country's internet bandwidth sevenfold.
BB requests NBR not to deduct 10pc tax at source: Bangladesh Bank has requested the National Board of Revenue for not deducting tax at source at the rate of 10 per cent on commission commercial banks receive on sales of prize bonds and national savings certificates, BB officials said. They said that deduction of tax at source would cause double taxation on same income of the banks. In a letter to the revenue board, the debt management department of the central bank on May 6 requested the NBR to inform its decision on the issue as soon as possible. The revenue board in March directed the central bank to deduct 10 per cent income tax at source on commission payable to commercial banks on sales of prize bonds and savings certificates.
Govt moves to identify non-RMG units, create sector-wise database: The government has initiated a move to identify non-RMG factories and other establishments and create sector-wise database of those units, sources said. The database would have sector-wise factories information, names and addresses of such units, number of workers and other related matters, they said adding so far the government has established a database only for the garment sector. There are more than 45 formal industrial sectors including the readymade garment in the country but there is no specific database or information how many factories are running across the country with people employed there and their compliance status, they added.
Budget to outline plans for next five years: Finance Minister AMA Muhith said the upcoming budget will outline programmes for the next five years, which will boost confidence of businesses and give a 'signal' that political stability will prevail. "I am sure that these plans will be implemented. This is supposed to be a sort of signal that still there is stability," he said at a pre-budget discussion at the office of Metropolitan Chamber of Commerce and Industry on Friday evening.
The MCCI and Maasranga TV co-organised the discussion, around three weeks ahead of the announcement of the budget for fiscal 2014-15. The finance minister's remarks came after a number of businessmen said many shy away from making investment due to weak governance and the fear of political instability.
Investment continues to remain sluggish because of a lack of confidence, they said.
BBN/SSR/AD-18May14-11:17 am (BST)