Business
Inflation ticks up again as food prices remain sticky upwards
The general rate of inflation ticked up again in October, rising 30 basis points to 9.93 percent, from the 9.63 percent recorded in September. Although the rise wasn't astronomical, it showed the continued futility of the government's efforts to rein in prices, with food inflation, relating to the prices of just food items, far outpacing the general rate to hit a 10-year high of 12.56 percent in October.
The Bangladesh Bureau of Statistics (BBS) released the updated Consumer Price Index (CPI) data for October on Monday.
The food inflation rate has risen above the 12.37 percent in September. It crossed the 12 percent mark in August as well. For more than a decade, food inflation had remained in single digits. We need to look back to January 2012, for the last time food inflation was recorded at a comparable level of 12.73 percent.
The prices of daily commodities are increasing in the market. Although various initiatives have been taken to reduce inflation, it's not reflected in the market. Many common people are now under pressure to afford food. Wage earners' incomes are not increasing in line with inflation.
In October, the price of potato, fish, rice, pulses, oil, salt, fish, meat, vegetables, spices, and tobacco products increased and the rate of food inflation increased, BBS said.
According to BBS data, food inflation stood at 8.50 percent in October last year.
In the current fiscal year 2023-24, the government has set a target of keeping inflation within 6 percent. But the first four months have not seen any progress towards that. The average inflation in the first three months of the current fiscal was 9.74 percent, but instead of being clawed back in October, it actually rose again, towards the psychological double-digit barrier.,
Finally imported eggs arrive, costing just over Tk7 per piece
The first shipment of eggs from India has arrived in Bangladesh.
The price of an egg including duty is to Tk7.23. This egg imported from India entered Bangladesh through Benapole land port, Jessore in a truck on Monday (November 06, 2023).
The government issued import permits for 1.0 crore pieces. In the first shipment, one private trader imported 61,950. After being processed at the land port, the truck left the Benapole land port around 10 pm last night (Sunday).
Also read: Govt-fixed prices of onions, potatoes and eggs not executed yet
According to Benapole Land Port Authority and Clearing and Forwarding (C&F) agent sources, Dhaka's BDS Corporation imported 61950 eggs in an Indian cargo truck as its first shipment after the Ministry of Commerce gave permission to import eggs.
The import price of an egg is estimated at Tk 5.43, on which duty is charged at Tk1.8 per egg.
Also read: Imported eggs to be available in market this week: Tipu Munshi
Director (Traffic) of Benapole land port Rezaul Karim said that the first consignment of eggs arrived from India in a truck yesterday (Sunday) evening. The eggs left the port around 10 pm when they were transferred from the Indian truck to the Bangladeshi truck.
Syed Mahidul Haque, representative of C&F agent ME Enterprises of the egg importer, said transport costs will be added to this, he said.
Also read: Govt to import 5 crore more eggs
FBCCI emphasises signing FTA between Bangladesh and Saudi Arabia
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has emphasised signing a Free Trade Agreement (FTA) between Bangladesh and Saudi Arabia.
The point was raised in a meeting of the FBCCI delegation held with the Jeddah Chamber of Commerce and Industry in Saudi Arabia on Monday.
At this time, FBCCI raised the need to sign an FTA for the sake of expanding trade between the two countries.
FBCCI President Mahbubul Alam said business and trade patterns are changing all over the world. Along with that, new challenges are coming up.
Bangladeshi businesses would take advantage of South Korea's preferential trade policy, ambassador hopes
“After graduation from LDC by 2026, Bangladesh will also face several challenges. In such a situation, Bangladesh and Saudi Arabia should take the initiative to sign an FTA now to take advantage of the integrated supply chain and meet the challenges of the future,” he added.
Referring to Saudi Arabia as one of Bangladesh's labour force export destinations, the FBCCI president said Saudi Arabia has currently taken strong steps in high-tech infrastructure development and industrial diversification.
At this point, they will need a hugely skilled workforce. Meanwhile, Bangladesh is now experiencing the benefits of the "demographic dividend". That is, the country has a large number of active, experienced, and skilled young manpower in science and technology.
BGMEA President clarifies media report on ‘apparel ban’
He urged the Saudi government to expand employment opportunities for skilled young workers in Bangladesh in various sectors.
It was informed in the meeting that Saudi Arabia has investment potential in several sectors, including environment-friendly energy, infrastructure, car parts, chemicals, food processing, information and communication technology, artificial intelligence, and robotics in Bangladesh.
At this time, the Jeddah Chamber of Commerce and Industry assured Bangladesh of its cooperation in the development of port management.
Sri Lanka's central bank governor reflects on keeping economy afloat during year of turmoil
Besides, they will help in organising the Branding Bangladesh Expo to introduce Bangladeshi products in Saudi Arabia, they said.FBCCI Vice President Md Khairul Huda Chapal, Md. Rashedul Hossain Chowdhury Roni, Md. Munir Hossain, directors Habib Ullah Don, Hasina Newaz, Khandaker Ruhul Amin, Munal Mahbub, Md. Ali Hossain Shishir, Md. Enayet Ullah, BM Soheb, Sahidul Haque Molla, Fakhrus Salehin Nahian, Salma Hossain, Md. Amir Hossain Noorani, Md. Faizur Rahman Bhuiyan, and Syed Mohammad Bakhtiar, among others, were present.
Bangladeshi businesses would take advantage of South Korea's preferential trade policy, ambassador hopes
South Korean Ambassador Park Young-sik is optimistic that the Bangladeshi business sector would take advantage of Korea's preferential trade policy towards the country.
South Korea has provided duty-free and quota-free access for 95 percent of Bangladeshi products to the Korean market since 2008.
Trump's business and political ambitions poised to converge as he testifies in New York civil case
To commemorate the 50th anniversary of establishment of diplomatic relations between Bangladesh and the Republic of Korea, a high-level delegation from the Korea Importers Association (KOIMA) visited Dhaka from November 5 to 6.
During the visit, the KOIMA delegation signed a MoU with Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to expand bilateral trade between South Korea and Bangladesh while diversifying and stabilizing global supply chains and strengthening partnership.
Bilateral trade between the two countries has exceeded $3 billion for the first time.
This MoU between KOIMA and FBCCI is expected to play a significant role in enhancing the bilateral trade in the future, the Korean side said.
Commerce Secretary Tapan Kanti Ghosh joined today’s event as chief guest.
Ambassador Park Young-sik said that the year 2023, which marks the 50th anniversary of diplomatic relations between South Korea and Bangladesh, will mark a significant turning point in the bilateral trade between the two countries by overcoming the challenges of Covid-19 pandemic and global economic challenges stemming from the Russia-Ukraine war.
Business leaders concerned over political unrest as blockade costs Tk6500cr a day
South Korea and Bangladesh have strengthened cooperation in various fields such as trade, investment, development and people-to-people exchanges.
With over 52 years of experience, KOIMA is Korea's only organization dedicated exclusively to facilitating imports into the country for the development of its industry.
KOIMA's 8,500 members are specialists in their respective business fields and perform various activities that ultimately contribute to strengthening trade relations with other countries.
South Korea is currently the fifth largest contributor of foreign direct investment (FDI) to Bangladesh, with the most notable recent investment being the expansion of manufacturing industries in automobiles, mobile phones and electronics.
Companies such as Samsung Electronics and Hyundai have established strong presence in Bangladesh, creating quality employment opportunities through domestic manufacturing.
Both countries are at the cusp of a new era in relations. Discussions on the Economic Partnership Agreement (EPA) and similar agreements between South Korea and Bangladesh are underway, promising to further enhance trade and investment cooperation.
Business behind medicines is like arms trading: Planning Minister
According to the statistics of Korea International Trade Association, Bangladesh and South Korea’s bilateral trade volume in 2022 was $3.035 billion, an increase of 38.71 percent from the previous year’s $2.188 billion.
BGMEA President clarifies media report on ‘apparel ban’
Clarifying a media report, BGMEA President Faruque Hassan on Sunday (November 05, 2023) said any attempt to generalize incident on the industry and the country at large is unacceptable.
The news mentions about technical glitches such as choking and ingestion hazard found it specific product item for babies sourced and retailed by specific brand in specific country.
"As the news report mentions about 12 countries withdrawing or recalling apparel made in Bangladesh, there is no reference to such claim, and we could not trace any evidence in support of this claim," he said.
BGMEA ready to implement new pay structure govt announces by Dec: BGMEA President
"We feel the urge to share this clarification so that misrepresentation of the fact is not repeated,' said the BGMEA chief.
He also clarified the reference to OECD which was mentioned in the news report.
OECD maintains a “Global portal on product recalls” and the OECD members’ product recall notices are listed in this portal.
IMF delegation meets BGMEA President to discuss challenges and prospects of RMG sector
Product recall for any valid reason is a standard practice and there are hundreds of such recalls listed in the OECD website as of today, said the BGMEA President.
Furthermore, the OECD website mentions “Health Canada recalled more than 200,000 George Brand Sleepers on Wednesday for posing a risk of choking and ingestion.
The recall of the product, sold at Wal-Mart, is for sizes 0-5T and affects two styles for boys and two for girls.
Zipper pulls and foot grips of the sleepers may eventually separate after frequent washing, leading to choking and ingestion hazards, the agency said, adding it has not received any reports of injury in Canada.”
"Therefore, the products were recalled due to certain risk of hazard, which is not the mistake of Bangladeshi manufacturer. Every product made in Bangladesh must pass through a stringent quality control process and laboratory tests including those of consumer health and safety," he said.
All exportable products must meet the standards of the buyers and relevant legal requirement of the export markets.
BGMEA seeks NBR support to sustain RMG industry's global competitiveness amidst ongoing challenges
Any product failing to comply these health and safety requirement are usually rejected by buyers or denied entrance at the destination port.
"So any misinterpretation like ‘apparel made in Bangladesh is banned in the mentioned countries’ is false," Hassan said.
The alleged products were shipped from Bangladesh in early 2022 and were retailed in Canada from November 2022 to June 2023.
Brunei High Commissioner meets BGMEA President to discuss trade-investment potential
The product recall notice of Health Canada also mentions that “As of September 21, 2023, the company has not received any reports of incidents or injuries in Canada”.
"I hope this statement of clarification will help all to clear any confusion on this matter and not to be misguided," said the BGMEA Chief.
Sri Lanka's central bank governor reflects on keeping economy afloat during year of turmoil
The governor of the Central Bank of Sri Lanka, Dr P Nadalal Weerasinghe on Saturday shared his experience of managing economic policy to restore a degree of respectability to the country's economy at a time when it was down in the doldrums.
Dr Weerasinghe participated in a panel discussion at the 14th South Asian Economic Summit (SAES).
The SAES began in Dhaka on Saturday with the participation of economists, researchers, policymakers, and current and former governors of the central banks of some South Asian countries.
Weerasinghe spoke in the discussion session titled ‘Identifying New Opportunities and New Modalities for Fostering Regional Cooperation in South Asia’ chaired by Dr Debapriya Bhattacharya, distinguished fellow of CPD.
In May 2022, Sri Lanka's foreign exchange reserves were a mere USD 50 million, not enough to cover even one month's imports. However, by June this year, the country's forex reserves surged to an impressive $3.5 billion, he said.
The national inflation was 67.4 percent in September 2022, which has come down below 1 percent, to 0.8 percent in September 2023, Dr Weerasinghe said.
The exchange rate of a dollar against the Sri Lankan Rupee was 369.0309 LKR in September 2022, which decreased to 320 LKR in September 2023, appreciating over 12 percent, he said.
Dr Weerasinghe said that Sri Lanka has made its economy stable by using the central bank’s policy tools like tightening monitoring policy and encouraging remittances in the legal channel.
The economic tools worked properly in Sri Lanka as the central bank enjoyed the freedom to make time-befitting policies, without much political intervention.
Speakers at 14th SAES session mull ways to augment regional cooperation, reduce trade barriers
Speakers at a panel discussion at the 14th South Asia Economic Summit, or SAES, on Saturday said connectivity between the central banks of the countries in South Asia is essential before introducing the concept of common currency.
The discussion titled 'Macroeconomic cooperation and possibility of a Common Currency' was chaired by Professor Sachin Chaturvedi, Director General, Research and Information System (RSI), India.
Dr Zahid Hussain, former lead economist, The World Bank, Bangladesh, Dr Posh Raj Pandey, Senior Economic Adviser, ministry of finance, Nepal, Dr Md Habibur Rahman, Chief Economist, Bangladesh Bank, Dr Priyadarshi Dash, RIS, India, Dr Abid Qaiyum Suleri, Executive Director, Sustainable Development policy Institute (SDPI), Pakistan and Dr Ahsan H Mansur, Executive Director, Policy Research Institue (PRI), Bangladesh, among others, spoke in the session.
The speakers talked on de-dollarisation and regional trade using common currency.
They also found some difficult points including non-trade barriers, cultural barriers, bureaucratic mindset, different information and different currency exchange rates.
Despite barriers, the regional people want more trade connectivity as the weather, geography and culture of this region have similarity, so there is huge potential for common currency based trade. But it takes time, they said.
RMG sector must overcome multifaceted challenges to remain lucrative: Study
Readymade Garments (RMG) industry will undergo a significant transformation in its trade benefit regime by 2029 as the GSP moratorium ends, coinciding with Bangladesh’s exit from its Least Developed Country (LDC) status in 2026, said a report.
LightCastle Partners, a prominent national management consulting firm, in partnership with Policy Exchange Bangladesh, unveiled the report’s findings on Saturday.
Challenges confronting the RMG sector encompass rising labour costs, heightened competition from low-cost nations, and the imperative to improve working conditions and sustainability practices, reads the report.
To effectively align with global demand and mitigate risks, the industry must enhance operational efficiency through automation while fostering an environment that facilitates the workforce’s transition. Currently, less than 15% of its operations are mechanized, the study revealed.
LightCastle Partners in collaboration with The Policy Exchange of Bangladesh conducted an extensive research endeavor titled: "Threads of Progress: A Comprehensive Landscape Study of the Apparel Industry and the Future for Women Workers".
The research findings were published at a discussion at a hotel in the capital this (Saturday) afternoon.
Forty-two national and international industrialists, international buyers, innovators and other officials of garment industries in Dhaka, Savar, Gazipur, Chattogram including more than fifty-plus women workers were interviewed as part of the research.
The initiative—funded by the H&M Foundation with The Asia Foundation operating as the backbone organization— is a part of the two-year-long ‘Oporajita: Collective Impact on the Future of Work in Bangladesh’ initiative, with a collective goal to future-proof livelihood of women garment workers in Bangladesh, equipping them for a future where the apparel sector is defined by automation and digitalization.
The report said, about 84.5% of the country’s total export earnings comes from the RMG sector where 40 lakh workers are engaged, most of whom are women. Hence, it is imperative to increase their skill along with ensuring fair wage.
The report’s highlighted that the COVID-19 pandemic significantly impacted the industry, resulting in the cancellation of international orders and an estimated loss of USD 3.15 billion. In 2022, our efforts to bounce back from the impact of the COVID-19 pandemic were hampered by the emergence of additional challenges, including geopolitical conflicts, a weakening global economy, and concerns about another recession.
The apparel industry faced multifaceted challenges including electricity and gas shortages, coupled with exchange rate fluctuations and dollar crises, which disrupted apparel production by increasing costs for factory owners. Reduced demand from the United States and the European Union also triggered a crisis in the industry. These led to adverse effects on garment workers' physical health and reduced employment opportunities.
Furthermore, trade tensions between the United States and China present opportunities for Bangladesh to expand its market presence. Sustainable sourcing of inputs is essential to reduce supply chain emissions and compete with other countries. Trade barriers may also intensify competition from other countries, necessitating improvements in logistics for reduced shipment time and costs.
Thus, developments in feeder vessels and deep seaports offer potential cost and time savings. Moreover, as technology evolves and reduces the need for labour, Bangladesh needs to enhance its production capacity in higher value-added product categories.
Md. Abdus Samad Al Azad, joint secretary (FTA-1), Ministry of Commerce, said, “We need to take proactive steps in shaping our policies and shifting our attention from cotton-based clothing to Man-Made Fiber (MMF) materials”.
Shahidullah Azim, vice president of BGMEA, said, “At present, there are only 2-3 recycling centers for RMG waste in Bangladesh. If we export recycled yarn, it has the potential to generate revenue of 5-6 billion dollars. Moreover, we need to get ready for exporting more value-added products and encourage policy initiatives related to diversifying fibers.”
Zahedul Amin, Co-founder & Director, Finance, Strategy & Consulting Services of LightCastle Partners, Samiha Anwar, Business Consultant of LightCastle Partners, were also present.
Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, moderated the discussion, while Radi Shafiq, Portfolio Manager of LightCastle Partners; and Mrinmoy T. Sobhan, Business Consultant of LightCastle Partners, highlighted the research findings.
Huawei hosts workshop on solar power installer
Huawei South Asia recently organized a workshop for the solar power plant installers at Huawei Bangladesh Academy in Dhaka
Aimed at propelling the country's solar technology sector to new heights, the workshop hosted more than 70 engineers, solar inverter installers, and technicians, according to a press release on Saturday.
Huawei announces business results for the first three Quarters of 2023
The participants of Huawei Bangladesh Installer Workshop 2023 got an opportunity to delve into the latest advancements in on-grid and off-grid solar systems. They also received expert guidance on the best installation practices to ensure optimal performance and reliability, it said.
"Solar energy is of paramount importance in Bangladesh, heralding a new era of energy accessibility, sustainability, and economic growth. Solar power is reducing the nation's dependence on fossil fuels, mitigating environmental degradation, and contributing to global efforts to combat climate change. This kind of workshop helps us to achieve new milestones in solar technology," said Liangweixing Jack, managing director of Huawei South Asia Digital Power Business Department.
Huawei, ASEAN Foundation, and SEAMEO host 'Seeds for the Future Summit 2023'"Huawei Bangladesh Installer Workshop 2023 is an exemplary initiative. The agenda of this workshop is very comprehensive with expert sessions, hands-on training, and invaluable networking opportunities. This workshop not only benefits the individuals who participate but also contributes to the growth and development of Bangladesh's solar energy sector,” said Muhammad Najebul Ahmed, technical Solution manager from Solar EPC Development Ltd.
In continuation of its efforts to help Bangladesh move towards digital power, Huawei South Asia has been organising different events and joining hands with other stakeholders to expedite this transformation, the release also said.
Huawei announces 6 'Seeds for the Future' winners from Bangladesh
Connectivity, trade cooperation needed for sustainable economic growth in South Asia: Speakers at 14th SAES say
Speakers in 14th South Asian Economic Summit (SAES) have said regional connectivity, trade cooperation and liberal customs policy are needed alongside political stability for sustainable economic growth in this region.
They said that cooperation amongst the countries is more important for expanding trade and better regional economy than competition.
They made the observations at the inaugural session of 14th SAES, held in a Dhaka hotel, today with the theme ‘Reframing South Asian regional cooperation in the new context of national and global dimension.’
‘About 2.8 mln U.S. middle, high schoolers use tobacco products in 2023’, reports says
Speaker Dr Shirin Sharmin Chaudhary MP was present at the opening session, while Planning Minister MA Mannan was the special guest.
Professor Rehman Sobhan, presided over the program.
Among others, Dr P Nandalal Weerasinghe, governor, central bank of Sri Lanka; Dr Ishrat Husain, former governor, state Bank of Pakistan; Ambassador Durga Bhattarai, former foreign secretary, Nepal; Professor Sachin Chaturvedi, director general, Research and Information System for Developing Countries (RIS), India; Dr Abid Qaiyum Suleri, executive director, Sustainable Development Policy Institute (SDPI), Pakistan; Dr, Paras Kharel, executive director, South Asian Watch on Trade, Economics and Environment (SAWTEE), Nepal; Dr Dushni Weerakoon, executive director, Institute of Policy Studies of Sir Lanka (IPS); and Dr Fahmida Khatun, executive director, CPD, spoke at the function.
FBCCI urges Saudi’s entrepreneurs to increase investment in Bangladesh
CPD is organizing the 14th South Asian Economic Summit, where researchers from South Asian countries and the World Bank joined. The summit will end on Sunday.
The papers presented at the summit stated that South Asia accounts for only 4 percent of the world's surface area, yet the region is home to nearly 1.9 billion people, about one-fourth of the global population (World Bank, 2023).
South Asia also has the highest population density in the world.
The majority of its population still resides in rural areas. With only 36 percent of inhabitants living in urban areas, South Asia is one of the least urbanised regions in the world (World Bank, 2023). However, over the next decades, the region is expected to have a faster urban growth and may outpace the rest of the world.
Nagad distributors fly for Umrah
South Asia has been growing at a remarkable rate and has played an integral part in reducing the number of people in the world living under USD 1.9 per day. Yet, this persistent growth has slowed down within the region with the advent of the COVID-19 pandemic as countries have experienced sluggish growth and a decline in per capita income.
For instance, about 42 percent of the population in South Asia live under USD 3.65 per day as of 2021 (World Bank, 2022). Furthermore, most people classified as extremely poor are from South Asia and Sub-Saharan Africa (Islam, Newhouse, & Yanez-Pagans, 2021).
Besides, according to the 2123 Global Hunger Index (GHI), all the countries in the South Asian region, including Bangladesh, have GHI scores which are labelled as “serious” (data unavailable for Bhutan and Maldives).
On the positive side, there is evidence of a declining trend compared to earlier decades.