Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
No surprises in upcoming budget
The upcoming national budget is unlikely to spring any surprises, finance ministry officials said. Rather, it will be more of the same, but some small schemes will be incorporated to boost prospective sectors and the neglected sections of the society, they added. Finance Minister AMA Muhith has already conveyed the ideas to the finance division, which is now busy setting up the programmes. For instance, Bangladesh Bank has prepared a Tk 200 crore refinance scheme for livestock. The interest rate for the loans will be 10 percent — banks will take 5 percent interest from clients and the rest 5 percent from the government as subsidy.
GDP growth target to come down in upcoming budget
The government plans to propose a budget outlay of around Tk 2, 95,000 crore for the upcoming fiscal year. GDP growth target has also been set at less than the current year’s original target, with policymakers wary of lukewarm business environment. Economic expansion has been estimated at seven per cent for the next 2015-2016 financial year, confirmed a reliable source at the finance ministry on Tuesday. The original gross domestic product targeted for the current fiscal year was 7.3 per cent, which was early this month heavily revised down to 6.51 per cent.
Senior finance officials attributed a struggling economy and lack of investment for setting a lower target. They further said even the revised 6.51 per cent growth is a far cry.
India closes in on two BD SEZs
The government is likely to award two special economic zones (SEZ) to Indian investors-one at Mongla in Bagerhat and the other at Bheramara in Kushtia. The Mongla SEZ would be set up on about 205 acres of land and the other in Kushtia on 477.16 acres. A Memorandum of Understanding (MoU) is likely to be signed between the governments of Bangladesh and India during the upcoming visit of Indian premier Narendra Modi who arrives here on June 6 next on a two-day visit.
India woos Bangladesh as China cuts cotton imports
Bangladesh may emerge as an unlikely saviour for the Indian cotton sector that has been left reeling in the face of low Chinese imports. Indian cotton export is expected to fall to a six-year low as China continues to cut imports. According to government estimates, lesser cotton imports by China may lead to as high as 41 per cent drop in shipments from India this year, reports Fiber2fashion. China had been the largest importer of Indian cotton in the last three years.
BSEC to raise banks’ capital market exposure issue
The Bangladesh Securities and Exchange Commission is expected to raise banks’ and non-bank financial institutions’ capital market exposure-related issues at a financial market regulators’ coordination meeting to be held today, BSEC officials told New Age on Monday. The commission following requests from different capital market intermediaries including Dhaka Stock Exchange has decided to raise the issue at the coordination meeting, they said.
Banks’ capital market exposure-related issues include exclusion of banks long-term equity investment in non-listed companies from the entities’ exposure to the capital market, extending the deadline of bringing down banks and NBFIs capital market exposure.
NBFIs to give CTR to BB from June
Like the commercial banks the non-banking financial institutions (NBFIs) will have to submit their cash transaction report (CTR) to the Bangladesh Bank (BB) from June 01, officials said. Under the new provision, the NBFIs have to report all single transactions worth Tk 1.0 million and above in form of withdrawal or deposit through the commercial banks. Day-to-day transactions are not allowed for the NBFIs. They only collect term deposits from the clients.
DSE runs without chief tech officer
The information and communication technology department of Dhaka Stock Exchange has been running without a chief technology officer for more than a year. The premier bourse felt the need of a CTO when a technical breakdown in its main engine halted stock trading for hours on Sunday and Monday. As its IT officials are yet to detect the reasons behind the malfunction, the DSE has called in professionals from the software vendor’s office abroad.
Ecnec approves revised Khulna-Mongla rail track project
Ecnec yesterday approved a revised project of Tk3,801.61 crore for laying new railway tracks from Khulna to Mongla Port after a feasibility study. The project will be partly financed out of the Indian line of credit – the $1bn low-interest loan offered by the last Indian government to implement infrastructure projects that would ultimately aid connectivity between the two nations. The cost of the revised project is twice the original. Ecnec chair and Prime Minister Sheikh Hasina approved the projects at the 29th meeting of the Executive Committee of the National Economic Council in Dhaka yesterday.