Thursday’s morning business round up of Bangladesh

Last updated: March 19, 2015

Dhaka, Bangladesh (BBN) - The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

Financials of most cos audited by fake firms

Around 70 per cent of companies allegedly cook their books to evade payment of right amount of taxes to the government. Besides causing loss of revenue to the government, analysts say, such unscrupulous practice corrupts corporate governance and culture.  Officials and experts say such manipulation is done for lax scrutiny and poor oversight function on the part of taxmen-be it wilful or for lack capacity.

Govt bends to IMF pressure on new VAT law implementation

The government has finally agreed to a proposal of the International Monetary Fund on implementing the new value added tax, much to the worry for both consumers and small and medium businesses. Economists criticising the move to accept the controversial IMF prescription on VAT said the expansion of VAT or indirect tax will weigh on common people heavily. They urged the government to streamline direct tax system so that evaders and black money holders are forced to pay more tax.

The rise of mobile banking
Thanks to the ease and affordability of mobile banking, more and more unbanked people, especially in rural areas, are now partaking in formal banking activities. Cash transactions via mobile banking rose 3.71 percent in February from the previous month, a clear sign of the service's rising popularity.

Turnover in call money market falls, US$/BDT remains stable
The overall transaction in inter-bank call money market fell drastically on Wednesday while the exchange rate of local currency against the US dollar remained stable, market operators said. The call rate ranged between 7.0 per cent and 8.0 per cent on the day unchanged from the previous level. But most of the deals were made at rates between 7.25 per cent and 7.50 per cent on the day, market operators said. The overall turnover in the call money market came down to BDT 38.90 billion on Wednesday from BDT 53.29 billion of the previous working day, according to the central bank statistics.

BB mulls introduction of e-taka to cut paper notes
Bangladesh Bank is planning to introduce e-taka by reducing the paper currency in the market in a bid to make the country’s payment system more vibrant, said officials of the central bank. If introduced, the e-currency will play all types of role like the taka but it will have no physical existence. The central bank will preserve the serial number and other characteristics of the circulated e-taka in the market in its server, said the officials.

Bankers’ Meeting postponed
The Bangladesh Bank has postponed the Bankers’ Meeting which was scheduled to be held on Thursday due to unavoidable circumstances. Deputy Governor of the Bangladesh Bank, SK Sur Chowdhury, confirmed this to the BBN Wednesday afternoon.  Sources said that the Bangladesh Bank took the initiatives to entertain the request of some chief executive officials (CEO) and managing directors (MD) of commercial banks. The CEOs and MDs of commercial banks urged the central bank to postpone the scheduled meeting considering the Bangladesh vs India match, sources added.

Surge in textile IPOs in capital mkt in 3 yrs

Sixteen textile companies raised more than Tk 12.15 billion from the capital market in three years, ending in February, 2015. The listed textile companies are likely to be the majority, in terms of their number, in the capital market soon if the companies awaiting the regulatory approval are listed. They also hailed the textile companies' move to raise funds from the capital market as they need it to make their business alive in the long run.   

First-ever global cotton summit in Dhaka

A two-day international cotton summit will begin tomorrow at Radisson Hotel in Dhaka in a bid to improve relations between buyers and suppliers of the product. Styled as “Global Cotton Summit Bangladesh  -2015,” the event is first of its kind in the country, being organised jointly by Bangladesh Cotton Association (BCA) and Bangladesh Textile Mills Association (BTMA).Textiles and Jute Minister Mohammad Imaj Uddin Pramanik is expected to inaugurate the summit, said the organisers at a press conference yesterday. The organisers said the cotton suppliers and buyers had been engaged in disputes because of problems related to weight, quality and LC opening.

BBN/SSR/AD-19Mar15-8:40 am (BST)

 

 

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