Business
RMG exports reached $ 38.57bn during July-April of FY 2022-23
RMG exports reached $38.57 billion during the July-April of 2022-23 fiscal year, reflecting a 9.09% increase compared to the same period in the previous fiscal year, according to the Export Promotion Bureau (EPB).
A detailed breakdown of the various categories indicated that knitwear exports reached $20.96 billion, while woven garment exports became $17.60 billion with 8.97% and 9.24% year-over-year growth respectively. Overall, it’s a sign of a steady growth in Bangladesh's overall RMG export earnings.
Regardless of the overall positive trend, a more detailed inspection of single month statistics reveals a recent decline in apparel export growth.
In April, the country's RMG exports observed a significant decline of 15.48%, amounting to $3.32 billion compared to April 2022.
The amalgamation of these declines contributed to the overall descending trend in recent months, which stands in contrast to the otherwise positive trajectory for the mentioned period in 2022-23 fiscal year, said Mohiuddin Rubel, director of BGMEA and additional managing director of Denim Expert Limited.
“Our target was $46.80 billion, and we had to ensure a 9.83% growth. There are two months left in this financial year, so in these two months, we have to meet the target of about $8 billion,” he said.
“In April, our export target was $4.07 billion against $3.32 billion target. We exported 18.40% less than our target this month. And compared to this month last year, our exports decreased by 15.48%. This is the lowest single month export this year.”
"The reason for this is that we had fewer working days due to Eid. Exports are less in that month due to the general Eid holidays. Another trend that has been going on is our exports were down last month compared to other months,” said Rubel.
“We realised that our capacity was dwindling. In continuation of that trend, exports have declined this month as well. We have seen negative trends in the Eid holidays,” he added.
“However, it will be clear in the coming month whether this negative trend is due to the impact of the Eid holidays or because of the negative trend that we have been seeing,” Rubel said.
“Hopefully, we will be able to meet the remaining targets in the coming months,” he added.
Military delegation visits Walton Headquarters
A military delegation led by Air Vice Marshal Muhammad Kamrul Islam visited Walton Hi-Tech Industries PLC.’s Headquarters at Chandra in Gazipur on Wednesday.
The delegation also included Bangladesh Civil Service, National Defense College staff and course members as well as foreign military staff from Egypt, India, Indonesia, Kenya, Kingdom of Saudi Arabia, Oman, Malaysia, Mali, Nepal, Niger, Nigeria, Jordan, Sri Lanka, South Sudan and Sudan.
SM Shamsul Alam, vice-chairman of Hi-Tech Industries PLC, welcomed the delgation at its headquarters and later thanked them for visiting it, according to a Walton media release.
The delegation watched Walton’s corporate video documentary and visited the product display center with the display of refrigerator, television, air conditioner, molds, compressor, elevator and laptop-computer.
Following the visit, Kamrul Islam said, ‘‘if we don’t visit Walton today we would not know that such a state-of-the-art hi-tech factory has been set up in Bangladesh. In the manufacturing area, international standard refrigerators, AC, TV, compressor, washing machine and other electronics, electrical, home and household appliances are manufactured here.”
He said the Walton is also manufacturing most of the essential parts of their finished products. It created a huge employment and by producing import substitute products foreign currencies can be saved.
Along with meeting the local demand, they are also exporting products, he said, adding that the organisation has been playing an important role in the country’s economic development.
The military officer said that that, “Walton Headquarter is a green factory which is different from other factories. Visiting it we including the foreign course members have gathered huge knowledge and experience. Really we are overwhelmed and very proud of Bangladesh and Walton.”
Major General Syed Tareq Hussain, Walton Hi-Tech Industries Adviser Major General (Retd.) Ibne Fazal Shayekhuzzaman, Walton Digi-Tech Industries Limited’s Additional Managing Director Md. Liakat Ali, Walton Hi-Tech Industries PLC.’s Senior Executive Directors Colonel (Retd.) SM Shahadat Alam, SM Zahid Hasan, Yousuf Ali and Easir Al-Imran, Executive Director Mohashin Ali Molla and Walton International Business’ In-charge Abdur Rouf, among others, were present.
Inflation decreased slightly to 9.24 percent in April: BBS
The inflation decreased slightly by 0.9 percent to 9.24 percent in April compared with March data.
The Bangladesh Bureau of Statistics (BBS) revealed the data on Wednesday.
According to the BBS report, the inflation in the country increased in February after five consecutive months of decline. The inflation rose to 8.78 percent in February and again to 9.33 percent in March. In April, the general inflation rate decreased slightly to 9.24 percent.
The BBS said in its statistics that food inflation has decreased due to reduced prices of fish, meat, vegetables, spices, and tobacco products.
Besides, the prices of furniture, household goods, medical care, transportation, and educational materials remain unchanged. Inflation in the non-food sector was 9.72 percent in April, compared to 9.72 percent in the previous month (March).
But this time, the inflation rate has increased in cities compared with villages The rural general inflation rate was 8.92 percent in April, while the urban inflation rate was 9.68 percent during the same period.
On the one hand, inflation has decreased slightly, as the wage rates have increased slightly. The wage index was 7.23 percent in April. In March it was 7.18 percent.
BBS claims that consumers get relief in April due to a slight increase in the wage index and a decrease in inflation.
Grameenphone approves 220% cash dividend at its 26th AGM
The 26th Annual General Meeting (AGM) of Grameenphone which was held virtually, concluded today.
During the AGM, Grameenphone Board approved a final dividend in cash at the rate of 95% of the paid-up capital, or Tk 9.5 per share of Tk 10 each. With this cash dividend pay-out, the total cash dividend stands at 220% of the paid-up capital, including the previous 125% interim cash dividend pay-out, amounting to 98.72% of Profit after tax for the year 2022, according to a press release.
Grameenphone chair Jorgen C Arentz Rostrup; CEO Yasir Azman attended the AGM, among others, while Company Secretary S M Imdadul Haque conducted it.
“2022 was a milestone year for Grameenphone, as we marked 25 years of providing mobile connectivity for millions of people and businesses across Bangladesh," said Rostrup.
"Despite adverse regulatory and macroeconomic challenges, the Board of Directors is pleased to report that the Company delivered on top-line growth, enabled by network investments, strength in market execution, and greater efficiency from digital transformation and modernisation efforts across the organization,” he said.
“In 2022, as always, our customers continued to be our biggest priority, and we strived to serve their growing needs and deliver better experiences with modernizing efforts and continuous investment. We acquired the maximum allowable 60 MHz spectrum in the auction for the 2600 MHz band and also focused on expanding the network. Despite various challenges, we successfully maintained our network strength and drove constant innovation- introducing e-SIM for the first time in Bangladesh while also further developing our customized product portfolio,” said Yasir.
“Overall, in 2022, we delivered strong financial results and have taken some definitive steps to improve customer experience. We remain committed to creating value in the lives of our customers, stakeholders, and shareholders and hold our place as the preferred digital connectivity partner in Bangladesh,” he added.
Air Astra offers 10% discount on tickets purchased using Nagad
Private airliner Air Astra is offering a 10% discount on base fares for tickets on payment using Nagad, a mobile finance service of the Bangladesh Postal Department.An agreement was recently signed made between Nagad and Air Astra in this regard at the former’s head office in the capital’s Banani area, said a press release today.Maruful Islam Jhalak, executive director of Nagad, and Mohammad Mozammel Haque Bhuiya, head of Sales and Marketing of Air Astra, signed the agreement on behalf of their organisation.Mohammad Mahbub Sobhan, head of Business Sales, Nagad and AFM Rubayat-Ul-Jannat, assistant general manager (Brand Marketing), Air Astra, were present at the time, among others.The offer is valid till July 5 of this year. There will be some changes in the terms and conditions of this offer during the time of Eid-ul-Adha, said the release.“We are taking up different initiatives to ease people’s lives. The 10 percent discount on airfares will bring some comfort to travel lovers," said Maruful Islam Jhalak, executive Director of Nagad. Nagad’s mega campaign is also going on for customers across the country on payments of goods and services purchased from 6,000 outlets of more than 300 brands, added the release.
Preparing next budget a daunting task amid IMF pressure, global economic slowdown, speakers tell ERF workshop
Speakers at a budget reporting workshop on Wednesday said that preparing the national budget for FY 2023-24 will be a challenging job amid global economic downturn and the IMF’s pressure to cut subsidies.
They said the governments will try to give a popular budget in the election year, but the International Monetary Fund (IMF) wants reforms in the financial sector and reduction of subsidies by increasing the prices of electricity and fuel oil.
They said this while speaking in a workshop on budget reporting, organised jointly by Research and Policy Integration for Development (RAPID), The Asia Foundation, and Economic Reporters’ Forum (ERF).
The government has to focus on raising revenue collection by increasing the tax net and stopping tax evasion to meet the expenditures, the speakers said.
Dr Mohammad Abdur Razzaque, Chairman of RAPID, and Dr M Abu Eusuf, executive director of RAPID, gave separate presentations highlighting different sectors of the budget emphasising on the need for increasing government expenditures.
They also emphasised on the need for increasing the tax-GDP ratio through increasing the capacity of NBR and tax officials as it is related to raising the government’s ability to spend more on welfare and development sectors.
Shamsul Huq Zahid of the English Daily the Financial Express said the budget is a state document of expenditures, but the budget lost its importance while bureaucrats prepare a budget that is only read out in Parliament.
He said that people’s engagement is very important to make the budget pro-poor and need-based.
Zahid also opposed any steps for hiking or reducing prices of different products by NBR’s SROs. He said all such decisions should be determined in Parliament.
ERF president Mohammad Refayet Ullah Mirdha presided over the discussion meeting.
Sugar disappears from Dhaka stores amid high price
Loose sugar was on Wednesday selling in Dhaka markets atTk135 to Tk 140 per kg – much higher than the government-fixed price – citing short supply.
On April 8, the government set price at Tk104 per kg for loose sugar and at Tk 109 for packaged sugar. Consumers, however, complained the ceiling hardly worked.
In the retail market packaged sugar has hardly been available. And even for the loose sugar the consumers have to pay Tk135 to 140 or per kg, up from Tk120 to 125 a kg last week.
On Wednesday, during visits to different markets in the capital this correspondent saw no packaged sugar in the stores. Traders reported no supply of sugar since Eid-ul-Fitr festival late last month.
The wholesale companies have failed to deliver citing short supply.
Importers blame the short supply on the high price of sugar in international market affecting domestic supply.
They are waiting for the government to decide if they would go for import at higher prices. They too have reduced imports due to higher prices.
Read more: Sugar price reduced by Tk 3 per kg: Commerce Ministry
According to the government agency, Trading Corporation of Bangladesh (TCB), the price of sugar increased by 15 percent in a month while it increased by more than 62 percent in one year.
Salmat Sarder of Chadpur Store of Karwan Bazar told UNB that packaged sugar has not been available for a long time. Loose sugar purchased at the wholesale level is more than Tk130 per kg. Still, dealers are not giving purchase receipts.
Bangladesh aims to pursue next level of growth with high-value added apparels: BGMEA chief
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Worldex India will collaborate on strengthening connections between businessmen of Bangladesh and India to realize untapped trade potential, particularly in the textile and apparel sector.
The two organizations will work jointly to bring closer suppliers and exporters of apparel, textile, chemicals, machinery and other raw materials through trade shows.
Executive Director of Worldex Arti Bhagat called on BGMEA President Farque Hassan at BGMEA Complex in Uttara in Dhaka on May 2.
Senior Head (Operations & Marketing) of Worldex India Zahir Merchant was also present at the meeting.
In the meeting, they discussed possible collaboration between BGMEA and Worldex India in creating platforms to bring businessmen of two countries together and facilitate more business interactions.
The current business landscape has created huge opportunities for Bangladesh and India to reap mutual trade benefits by assisting each other in the textile and apparel sector.
Faruque Hassan said Bangladesh aims to pursue the next level of growth with high-value added apparels including manmade fibre-based garments, and India is a major supplier of MMF, chemicals, dyes and other raw materials.
"On the other hand India wants to boost its textile exports.”
Given the geographical proximity and the demand-supply match, the scope is enormous for both countries to complement each other, and make the most of the opportunities, he added.
Laying the emphasis on increasing more direct business interactions between Bangladeshi RMG exporters and Indian textile products suppliers, Faruque Hassan said it would help to derive reciprocal trade benefits.
He expressed hope that the Bangladesh and India trade relationship would be strengthened more in the coming years through meaningful cooperation.
Bangladesh, World Bank sign US$ 2.25 billion loan agreement comprising 5 projects
World Bank will provide USD 2.25 billion as loan to Bangladesh to develop various sectors, including regional trade and connectivity, disaster preparedness and environmental management.
A loan agreement was signed on Monday (May 01, 2023) between Bangladesh and the World Bank for implementing five projects.
Prime Minister Sheikh Hasina and World Bank President David Malpass witnessed the exchanges of the financing agreement.
Read: Stay with us in implementing future physical & social mega projects: PM Hasina to WB
This loan agreement comprises five projects:
· Accelerating transport and trade connectivity in Eastern South Asia (ACCESS) – Bangladesh Phase-1 Project worth USD 753.45 million.
· USD 500 million Resilient Infrastructure Building Project (RIVER) for resilience, adaptation and vulnerability reduction that will be the first major investment to support Bangladesh’s Delta Plan 2100. It will help improve disaster preparedness against inland flooding.
· USD 500 million First Bangladesh Green and Climate Resilient Development (GCRD) project is the first such credit that will help the country’s transition to resilient development.
· USD 250 million Sustainable Microenterprise and Resilient Transformation (SMART) project aims to help transform the microenterprise sector into a more dynamic, less polluting, resource efficient and climate resilient growth sector.
· USD 250 million Bangladesh Environmental Sustainability and Transformation (BEST) project to help strengthen environmental management and promote private sector participation in green investment.
Read More: External pressure behind World Bank's withdrawal from Padma Bridge, says PM Hasina urging it to look into future
Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
Starting a business is exciting, but it requires capital to get off the ground. While there are various ways to finance a business, two common options are having a silent partner or seeking an investor. Both options can bring in the necessary funds but have different implications for the business' ownership and management. This article will explore the key differences between a silent partner and an investor, including their roles, responsibilities, and expectations. By understanding these differences, a business owner can decide which funding option is the right fit for his or her business and associated goals.
Who is a Silent Partner or Sleeping Partner in a Business?
A silent partner, also known as a sleeping partner, is an individual or entity that invests money in a business without actively participating in its management or operations. In other words, a silent partner provides capital and shares in the profits or losses of the business but does not take an active role in decision-making or day-to-day operations.
Silent partners are typically passive investors who are looking for a return on their investment, and they may not have any expertise or experience in the industry or market of the business they are investing in. While they do not participate in the management of the business, silent partners may still have some rights and responsibilities, depending on the terms of the partnership agreement.
Read More: What to Consider Before Investing in a Startup or Company?
Differences Between a Silent Partner and an Investor
Although a silent partner and an investor both provide capital to a business, there are key differences between the two.
Role and Involvement
A silent partner provides capital without actively participating in the management or operations of the business. On the other hand, an investor may take on an active role in the business and offer strategic guidance and expertise.
Risk and Liability
Silent partners generally have limited liability and are only liable for their investment amount. In contrast, investors may have unlimited liability and potentially lose more than their initial investment.
Read More: What to Consider Before Buying Land: A Step-by-Step Guide
Return on Investment
Silent partners typically receive a share of the profits based on their ownership stake, while investors may receive a return on investment in the form of equity, interest payments, or a combination of both.