Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Fresh orders for apparel plunge 45pc
The inflow of new work orders to Bangladesh’s garment sector from international retailers and brands for June is 45 per cent lower than that a year ago as demand is yet to pick up in the western markets because of the coronavirus pandemic. “New orders are being issued but they are at least 40 per cent to 45 per cent lower compared to last year’s,” said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). So far, after intense negotiation with the buyers, a portion of the $3.15 billion worth work orders that were cancelled due to the Covid-19 pandemic have been reinstated.
Banks, NBFIs to pay 2% fee for SME loan guarantee
The central bank has proposed a 2 percent fee to provide credit guarantee for small and medium enterprises (SME) loans, as the risk associated with this type of financing is comparatively higher. This was revealed in the draft manual of the Credit Guarantee Scheme (CGS). The Bangladesh Bank is collecting opinion on the draft CGS manual from stakeholders to finalise it.
BTRC to impose three SMP conditions on Grameenphone
The Bangladesh Telecommunication Regulatory Commission has decided to impose three conditions on Grameenphone under its latest initiative for enforcing the Significant Market Power Regulations-2018. The BTRC would issue an order in this regard to the country’s leading mobile operator in the next few days based on a decision it made in a recent commission meeting, BTRC vice-chairman Subrata Roy Maitra told New Age.
Budget for FY21: TIB against provision to whiten black money
Transparency International Bangladesh (TIB) on Tuesday urged the government not to keep any provision of whitening of black money in the forthcoming national budget in the name of creating employment by attracting investment and boosting revenue generation. The Bangladesh chapter of the Berlin-based organization termed such scope in the budget “discriminatory and unconstitutional” and graft-supportive one.
Stocks stay flat amid thin participation
Stocks stayed flat on Tuesday while turnover dipped below Tk 1.0 billion-mark once again as investors were reluctant to make fresh investment amid ongoing Covid-19 pandemic. DSEX, the key index of the Dhaka Stock Exchange, went up by 6.26 points or 0.15 per cent to close at 3,962. Investors are also cautiously monitoring and waiting for the upcoming budget announcements before making any further investment decisions, said a stockbroker.
Stimulus not so stimulating: CPD
The financial stimulus packages failed to revitalise domestic economic activities and ensure employment for workers because banks were unwilling to disburse loans to small businesses because of inadequate funds and the need to follow various conditions. The Centre for Policy Dialogue (CPD) presented this assessment at a virtual dialogue titled “Responding to Covid-19: A Rapid Assessment of Stimulus Packages and Relief Measures,” held on Tuesday.
Shrimp industry seeks special financial aid
The country’s shrimp industry leaders have demanded a special financial package and duty exemption on imported aqua inputs to salvage the industry from the crisis they said the sector was sliding into due to the impacts of the coronavirus pandemic and the recent cyclone Amphan. Three organisations representing the shrimp industry — the Bangladesh Shrimp and Fish Foundation, the Bangladesh Aqua Products Companies Association and the Shrimp Hatchery Association of Bangladesh — on Tuesday sent a letter to the Prime Minister’s Office seeking financial assistance and duty exemption on imported aqua and farm inputs in the upcoming budget.
Seven new sectors may get tax holiday
The government may extend tax holiday benefit to seven new sectors from the next fiscal year to encourage expansion of manufacturing activities, said an official of the finance ministry. Transformers and nanotechnology-based manufacturing are likely to be two of the new sectors. “The tax benefit may be given for a period of 10 years and the rate of tax to be reduced gradually to be fully phased out on the 11th year,” said the official on condition of anonymity. Currently, the government offers tax exemptions for periods of five to 10 years, depending on the location of the factories to be set up by entrepreneurs.