Business
Sammilito Parishad accords warm reception to RMG entrepreneurs who elected MPs in 12th National elections
The Sammilito Parishad accorded a grand reception to the garment entrepreneurs who have been elected the Members of Parliament during the 12th national elections, acknowledging their significant contributions to the country’s garment sector.
The special event was hosted in the Grand Ballroom of Radisson Blu Water Garden in Dhaka on January 26.
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The Sammilito Parishad extended hearty congratulations to the elected MPs, recognizing their role in the growth and prosperity of the garment industry.
The current state of the garment industry was discussed at the reception program, said a media release.
Cooperation of the elected MPs was sought in building a sustainable garment industry in Bangladesh.
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The 18 entrepreneurs of the garment sector who have been elected Members of Parliament in the 12th National Elections of Bangladesh are -- Salman Fazlur Rahman MP, Vice Chairman, Beximco Group, Tipu Munshi MP, Managing Director of Sepal Group; A K M Salim Osman MP, Chairman, Wisdom Attires Ltd; Abdus Salam Murshedy MP, Managing Director, Envoy Group; Md Tazul Islam MP, Founder, Fabian Group; Nasrul Hamid MP, Managing Director, Hamid Group; Md. Shahriar Alam MP, Founder, Renaissance Group; Morshed Alam MP, Chairman, Bengal Group; AK Azad MP, Managing Director, Ha-Meem Group; Abdus Salam MP, Founder Chairman, Well Group; Anisul Islam Mahmud MP, Chairman, Shasha Denims; Chayan Islam MP, Chairman, Sparrow Group; Abdul Momin Mondol MP, Managing Director, Mondol Group; Fayzur Rahman (Badal) MP, Managing Director, Tusuka Group; Md. Khosru Chowdhury MP, Chairman, Nipa Group; Dewan Zahid Ahmed MP of Axis Knitwear Ltd; Md. Mojibor Rahman MP of Smart Group; and Md Abdul Wadud MP of A&A Fashion Sweaters Ltd.
Tipu Munshi MP, President of Sammilito Parishad, chaired the event which attended by Md. Atiqul Islam, General Secretary of Sammilito Parishad and Mayor of Dhaka North City Corporation (DNCC) Md. Siddiqur Rahman, former President of BGMEA and also the Chief Election Coordinator of the Sammilito Parishad for the BGMEA Election 2024-2026.
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Former Presidents of BGMEA Redwan Ahmed, Mostafa Golam Quddus, Engineer Kutubuddin Ahmed, Quazi Moniruzzaman, S.M. Fazlul Hoque, Md. Shafiul islam Mohiuddin, BGMEA President Faruque Hassan, Senior Vice President of BGEMA and Panel Leader of Sammilito Parishad S. M. Mannan (Kochi) were also present at the event.
A good number of RMG entrepreneurs also attended the event.
Be tough on dishonest traders but incentivise the honest: Finance minister asks NBR
Finance Minister Abul Hassan Mahmood Ali on Friday asked customs officials to go hard on dishonest traders and provide tax incentives to the honest to raise revenue collection.
He was speaking as the chief guest at a seminar to mark the International Customs Day-2024 at the NBR Building in Agargaon in the capital.
Calling the NBR as the main driving force of the country's economic progress, the finance minister said that the country's economic progress is recognised by the world now.
“Although Bangladesh has made progress in all economic indicators, still our tax GDP ratio is not satisfactory. I hope the National Board of Revenue (NBR) will try to increase the tax GDP ratio,” he added.
Ali said, “One of the main functions of customs is trade facilitation. Our trade volume is increasing, customs have to be truly smart, modern and go for automation to build Smart Bangladesh.”
He mentioned that preventing money laundering is one of the responsibilities of customs and said that it is very important to increase the capacity of customs.
He hoped customs officials would pay special attention to this aspect.
With NBR Chairman Abu Hena Rahmatul Muneem in the chair, Finance Secretary Md Khairuzzaman Mozumder, and Agriculture Secretary Wahida Akter were present at the event as the special guests.
NBR members Zakia Sultana, Md Masud Sadik, Hossain Ahmed, and Chairman of Incepta Pharmaceuticals Ltd Abdul Muktadir, among others, spoke at the event.
On the growth of the country’s trade volume NBR member Sadik said that the number of bills of entry every day stood at 17000, which was around 3500 in 2010.
Serve people by keeping prices of commodities at tolerable level: Food Minister
Food Minister Sadhan Chandra Majumder on Thursday urged all to serve the people by keeping prices of commodities at a tolerable level and refraining from making more profit.
The minister made the call while addressing a civic reception accorded to him as the food minister for the second time at Naogaon town's Naogaon ground on Thursday afternoon.
Moreover, Barrister Nizam Uddin Jalil John and former secretary Sourendranath Chakraborty who were elected from Naogaon-5 and 3 constituencies in the 12th parliamentary election were also accorded the reception organised by Naogaon District Civil Society.
Sadhan said the premier in the election manifesto announced plans to keep the prices of commodities at a tolerable level.
He said attention should be paid so that the hoarders cannot hoard or any person does not trouble the people in the hope of getting more profit using a network of unscrupulous traders.
Talking about conspiracy by a vested quarter, he asked all to strengthen the hands of the premier by resisting all conspiracies and fighting against corruption to take the country forward.
Chaired by Civil Society President Dr Md Asheque Hossain, lawmakers Nizam Uddin and Sourendranath Chakraborty, among others, spoke on the occasion.
Bangladesh needs to introduce social insurance for all, not social safety net: CPD
Speakers in a dialogue of the CPD on ‘Inception of Social Insurance Forum in Bangladesh’ said that it is time to introduce social insurance instead of a social safety net programme.
The speakers said this in the dialogue organised by the research institute Centre for Policy Dialogue (CPD) and GIZ on Thursday.
Khandkar Golam Moazzem, research director of CPD, presented the keynote at the event. CPD Board of Trustee member Parveen Mahmud presided over the event.
They said that given the existing socio-economic conditions of Bangladesh, it is not allowed to remain only in the social safety net.
The speakers said now is the time to introduce social insurance. The issue should be brought up in the action plan of the government, they said.
Many countries introduced social insurance over 100 years ago while Bangladesh is far behind in this field, they said.
Those nations are now reaping the benefits of this system, and Bangladesh should learn from those countries and move forward in this regard, they said.
In the keynote presentation, Dr Moazzem underscored ‘The SIF (Social Insurance Forum) aims to bridge knowledge gaps, facilitate framework development, establish networks with stakeholders, and track progress in thematic areas.’
“The knowledge gap will be bridged by identifying and addressing gaps in understanding through the dissemination of detailed insights into policy requirements,” he said.
Clarity on organisational and operational workflows will be emphasised to enhance comprehension and implementation, he pointed out.
In the presentation, Moazzem also said that there are many loopholes in the social safety net, and those who are supposed to get social protection do not get it. Those who are not supposed to get it, get it.
In this reality, if social insurance is introduced, it will be possible to fix these loopholes, he said.
Syed Saad Hossain Gilani, chief technical consultant of ILO's Dhaka office, expressed his surprise due to the lack of social security insurance in the country.
He blamed the sluggish bureaucracy for this. The government formulated the Social Security Strategy eight years ago. But the speed of its implementation is very low., he said.
He mainly blamed the lack of knowledge and experience of the bureaucracy for this.
“Social insurance is for everyone; it is not only for the poor because each one of us can experience unemployment, sickness, and aging’, said Dr Silvia Popp, Project Manager, of the Employment Injury Protection Scheme for Workers in the Textile and Leather Industries (EIPS).
Representatives of various NGOs including the country's microcredit institutions participated in the discussion phase of the programme.
They said that a lot of work has been done on microcredit and microinsurance in the country, and many pilot projects have been launched. Insurance companies also have regular mini-insurance products.
These projects and work experience need to be shared with everyone, then the work of social insurance will speed up, said the representatives of various NGOs.
NBR working for innovative customs management: NBR Chairman
The National Board of Revenue (NBR) will observe the International Customs Day 2024 on Friday in Bangladesh and in 185 other countries across the world.
NBR Chairman Abu Hena Md Rahmatul Muneem on Thursday afternoon spoke at a ‘meet the press’ held in the NBR Building, Agargon in the capital.
Responsible business conduct for decent work is crucial for sustainable value chains in Bangladesh
He said that the customs officials in the country are working hard to serve stakeholders.
He said that automation work has progressed to serve the customer without any interruption.
He said that the NBR enhanced trade facilitation including National Single Window (NSW), Authorised Economic Operator (AEO), National Enquiry Point (NEP), Pre-Arrival Processing (PAP), Advance Ruling, Time Release Study, E-Auction, Non-Intrusive Inspection (NII) and Advanced Passenger Information (API).
The customs department is working on the issues of terror finance, money laundering, and environment conservation by preventing the import of products harmful to human and animal health, he said.
The NBR Chairman said, “In the first half of the current fiscal year 2023-24, the NBR has collected revenue of Tk 1.66 lakh crore— Tk49068 crore came from the customs. I saw a growth of 9.16 percent compared to the previous fiscal year.”
In the fiscal year 2022-23, the NBR collected revenue of Tk3.31 lakh crore, of which Tk92,732.35 crore has come from the customs sector.
Bangladesh's imports drop over 18% in first half of FY2023-24
He said despite higher revenue collection in the first half of the current fiscal year there is revenue shortfall of Tk23,000 crore.
Muneem said that the activities of ‘ASYCUDA World’ have been extended to facilitate the customs duty and shipment of goods.
The NBR also took specific plans to implement an E-payment system for a sustainable delivery system of customs goods, he said.
Marking the day, the NBR will organise a seminar at 10:0 am on Friday at the Multipurpose Hall of the NBR Building in the capital's Agargaon.
The theme of the day is "Customs Engaging Traditional and New Partners with Purpose".
Finance Minister Abul Hassan Mahmood Ali will attend the seminar as the chief guest with Senior Secretary of the Internal Resources Division (IRD) and NBR Chairman Abu Hena Md Rahmatul Muneem in the chair.
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Finance Division Secretary Dr Md Khairuzzaman Mozumder and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubul Alam will be present there as the special guests.
Responsible business conduct for decent work is crucial for sustainable value chains in Bangladesh
The International Labor Organization (ILO) Better Work Bangladesh (BWB) organized a two-day consultation event, "Responsible Business Conduct (RBC) along Value Chain and Purchasing Practices” to step towards advancing the landscape of business and labor practices in Bangladesh.
With the financial support of the Government of Japan, the event was held on January 24 and 25, 2024, and attracted over 100 participants from various sectors, including government, trade unions, employers' organizations, enterprises, development partners, and civil society organizations.
BCC fines Diamond Egg, CP for raising egg prices in collusion
The insightful discussions on RBC during the event emphasized the commitment to fostering decent work practices beyond the Readymade Garment (RMG) sector, including Plastic, Tea, Agriculture, FMCG, Leather & Footwear, said a press release.
The consultation aimed to facilitate dialogue among ministries and governmental agencies, social partners and enterprises for assessing what is needed to put the right ecosystem in place to promote responsible business conduct for the realization of decent work in and beyond the apparel sector in Bangladesh.
As the world increasingly acknowledges the importance of responsible business practices and human rights due diligence in supply chains, the event provided further orientation to participants on business practices that translate decent work into action and addressed the roles and responsibilities of the different actors.
Tuomo Poutiainen, ILO Country Director for Bangladesh, said, "Responsible business conduct is key to sustainable and inclusive growth. This event is crucial to promoting responsible business conduct in business operations in Bangladesh, within and beyond the apparel sector, aligning with international instruments, such as the ILO MNE Declaration and United Nations Guiding Principles on Business and Human Rights, as well as global best practices.”
“There is a need for a collective commitment from various stakeholders to facilitate a dialogue, fostering a general understanding of and promoting responsible business conduct across industries and supply chains. The other sectors can also learn from the Better Work Bangladesh experiences in RMG in the last 10 years,” he added.
Avijit Chowdhury, additional secretary to the Government of Bangladesh and executive member of the Bangladesh Investment Development Authority (BIDA), said, "We need to focus on economic diplomacy that highlights enhancing working conditions and elevating work standards. Adopting a holistic approach with a positive mindset to Responsible Business Conduct (RBC) is key. Bangladesh is reviewing its investment policy to integrate decent work issues and promote sustainable investments through addressing technology use, skill development and ensuring compliance."
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Haruta Hiroki, first secretary, and head of economic department, Embassy of Japan in Bangladesh, said, "We place significant importance on business and human rights, upholding a commitment to responsible business conduct. Our focus on ethical and socially responsible business practices remained unwavering. We genuinely care about human rights issues, and our journey reflects a sincere commitment to fostering positive impact."
In the two-day discussions, participants explored how the ILO MNE Declaration could be useful for Bangladesh to stimulate the contribution of enterprises (national and multinational) to development and inclusive growth. They also reflected on potential entry points for promoting responsible business conduct for the realization of decent work in a coordinated and coherent manner across governmental actions, highlighting the role of employers’ and workers’ organizations as well as enterprises.
Wasim Zachariah, chairman of the Standing Committee on SDG Affairs, BGMEA, reflected, "In a global landscape shaped by geopolitical challenges and economic shifts, the importance of RBC becomes even more evident. The ongoing conflicts, such as the one between Ukraine and Russia, coupled with the energy crisis and economic downturn in Europe, highlight the interconnectedness of markets. As we navigate these complexities, it's crucial for businesses to integrate RBC into their supply chains.”
Babul Akhtar, Senior Vice President, IndustriALL Bangladesh Council (IBC), said, "We must prioritize creating safe working environments in collaboration with workers to align with international standards and RBC. It requires action and genuine commitment that ensures that workers are not only part of the dialogue but are integral to impactful decisions within the RBC approach.”
The consultation resulted in shaping a possible roadmap for the promotion of responsible business conduct for decent work in Bangladesh.
Plastic goods industry's international product fair in Dhaka from Wed
This roadmap outlines priority actions for promoting sustainable, responsible, and inclusive business practices across different economic sectors and recommends the creation of a national working group on RBC for the realization of decent work to provide overarching guidance in this area.
The event highlighted the critical importance of coordination and coherence among the different actors to foster collaborative efforts to contribute to sustainable and inclusive growth, reads the release.
Special bonds issued to pvt banks to clear liabilities with power plants
In a significant move to stabilize its power sector, the Bangladesh government has secured Tk 2,062 crore through the issuance of special bonds. This initiative, aimed at clearing outstanding liabilities to private power plants, involves a collaboration with two prominent private banks: City Bank and Pubali Bank.
A comprehensive agreement was inked on Wednesday at the Secretariat, marking a critical step in addressing the financial challenges faced by the power sector. As per this agreement, the government will issue bonds worth Tk 1,985 crore to City Bank and Tk 77.50 crore to Pubali Bank, as confirmed by the Ministry of Finance.
Sources reveal that the government’s inability to disburse subsidy funds had left private power plants struggling to meet their financial obligations, leading some to the brink of insolvency.
Read: Bangladesh's imports drop over 18% in first half of FY2023-24
To counter this crisis, the government’s issuance of special bonds comes with an 8 percent coupon rate, mirroring the repo rate set by Bangladesh Bank. Notably, any future fluctuations in the repo rate will correspondingly adjust the bond interest rate.
At the term’s end, the government will settle the bank dues along with interest, subsequently reclaiming these bonds. Unlike typical 15–20 year bonds, these special bonds have a maximum tenure of 10 years, a move tailored to the urgent needs of the power sector.
Key players in the power sector, including Summit Power, United Power, Confidence Power, Baraka, Kushiara, Doreen, and Akron Power, are among the beneficiaries of this initiative. The Finance Division also disclosed plans for phased agreements with other banks, including BRAC Bank and Bank Asia, to further address the sector’s liabilities.
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Reflecting on the agreement’s significance, managing directors of several banks expressed optimism. While banks can leverage these bonds with Bangladesh Bank, it provides the government with crucial financial breathing space.
This strategic financial maneuver stands as a testament to the government’s commitment to ensuring the stability and sustainability of Bangladesh’s power sector.
Bangladesh's imports drop over 18% in first half of FY2023-24
Amid multi-faceted economic challenges, Bangladesh's imports dropped 18.19 percent year on year to 33.68 billion U.S. dollars in the first half of the 2023-24 fiscal year from July 2023 to June 2024.According to latest statistics of the Bangladesh Bank (BB), the settlement of letters of credit (LCs), generally known as actual imports, stood at 33,683.51 million dollars in July-December compared to 41,175.28 million dollars in the same period a year earlier.
In the July-December period, the BB data showed, Bangladesh's overall import orders also declined by 5.33 percent year-on-year.
The overall import orders, officially known as the fresh opening of import letters of credit, decreased to 32,929.31 in July-December against 34,784.72 million dollars in the same period of the last fiscal year, it showed.
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Bangladesh's trade deficit in the last 2022-23 fiscal year dipped by 48.41 percent year-on-year to 17.16 billion dollars amid shrinking forex reserves-depressed imports.
In its bid to boost Bangladesh's shrinking forex reserves, which now stand at around 20 billion dollars, the bank has taken various measures to discourage imports.
The central bank has recently set policies aimed at tackling challenges affecting the economy. The BB said that the main objective of its strategic directives in the half-yearly monetary policy, spanning from January to June 2024, is centered on upholding a vigilant, hawkish approach to monetary policy until inflation rates are effectively reined into a desired level.
The BB said it finds itself at a critical juncture as the economy navigates through the latter half of the fiscal year, facing a multifaceted economic landscape.
The bank said it has decided to increase its policy rate by 25 basis points to 8 percent from 7.75 percent to deal with the demand-side pressures while ensuring the required flow of funds to the priority and production sectors to promote supply-side activities.
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This was the ninth straight rate hike in the past 20 months as consumer prices have remained at an elevated level.
Bangladesh's inflation was at 9.93 percent last October, above the central bank's then-target of 6 percent for the current fiscal year from July 2023 to June 2024.
BCC fines Diamond Egg, CP for raising egg prices in collusion
The Bangladesh Competition Commission (BCC) has fined Tk 3.5 crore against two egg supply companies after probing price hiked abnormally.
The commission fined Diamond Egg Limited Tk2.5 crore and CP Bangladesh Company Limited Tk1.0 crore as the allegations of abnormally increasing the price of eggs in collusion with different companies have been proven.
The BCC filed a case against the two companies. After the hearing of the case, the commission ordered this penalty on January 22.
Within 30 days of the announcement of the verdict, the amount of the penalty should be deposited in the concerned department of the BCC. If not, a fine of Tk1.0 lakh per day will be added in light of the Competition Act.
In the ninth meeting of the BCC, based on the report of the National Directorate of Consumer Rights Protection and the report published in an online media headlined 'Tk518 crore loot from the egg and chicken market in 15 days' and the news published in various newspapers and print media, the decision was taken to investigate this matter.
According to the brief description of the complaint, the investigation report initially shows the crime of violation of the competition law by setting the sale price of eggs in the market abnormally and limiting or controlling the supply of eggs in the market against CP Bangladesh Company Limited, Diamond Egg Limited, and several other organisations.
The summary of the verdict said that the BCC ordered the penalty on both companies based on the investigation report and the written and oral arguments of the lawyers.
To ensure good governance in banks, chairman should be from independent directors: Dr Atiur
Bangladesh Bank's former governor Dr Atiur Rahman has suggested appointing a chairman from the independent directors of the board of directors of banks to ensure good governance in private banks.
He said this at a lunch meeting organised by the Foreign Investors Chamber of Commerce and Industry (FICCI) at a hotel in Gulshan in the capital on Wednesday.
Under the chairmanship of FICCI President and Managing Director of Unilever Bangladesh, Javed Akhtar, businessmen from various sectors, and representatives of development partner countries joined the event.
Dr Atiur said that ensuring good governance in the financial sector is one of the challenges now. For that reason, professional people should be brought in as independent directors.
Besides, he said that implementation of the new Bank Company Act and the merger of weak banks should be encouraged to ensure that people do not become defaulters voluntarily, he said.
Atiur presented an article titled 'Bangladesh on the path to the trillion-dollar economy: possibilities and challenges'.
“Those who claimed as the main owners of private banks are not the main owners; Rather, bank depositors are the principal owners.”
So, if the independent directors become the chairman, they will be the representatives of the real owners of the banks, he said.
Atiur said that Bangladesh has developed amazingly over the last 50 years, and if the growth rate remains 5 percent, Bangladesh will be a trillion-dollar economy by 2040.
He pointed out that there are several challenges in achieving that goal, such as inflation, deficit in financial accounts and reduced investment.
Several steps need to be taken to solve these problems including stabilising the foreign exchange rate. This will reduce inflation as well as increase foreign investment, he said.