Business
Runner Automobiles wins ‘Bangabandhu Sheikh Mujib Award for Industries 2022’
Runner Automobiles has received the "Bangabandhu Sheikh Mujib Industry Award 2022" in recognition of its outstanding contribution to the national economy as well as the industrial sector.
Chairman of Runner Automobiles PLC Hafizur Rahman Khan received the award from President Mohammed Shahabuddin on Tuesday at the Osmani Auditorium, according to a press release.
Read: Runner Automobiles approves 10% cash dividend
After receiving the award, the chairman of Runner Group said, "This award from the president is our motivation. I dedicate this award to all my employees who have worked tirelessly to bring this award to Runner Automobile Plc."
Runner Group is a leading business organisation in Bangladesh that has been continuously contributing to the country's economy since 2000 by doing business with reputation and integrity, said the release.
Read: ABM Group's Ataul Karim wins Bangabandhu Sheikh Mujib Industrial Award 2022
A total of 12 industrial units, including Walton, in six categories received the award.
Read more: Walton gets ‘Bangabandhu SheikhMujib Industrial Award-2022’
Rabbithole's World Cup package just Tk60 for Nagad customers
Nagad customers can now savour the excitement of live Cricket World Cup matches on Rabbithole, a renowned video streaming platform, by subscribing to an exclusive pack for just BDT 60 using the MFS payment gateway.
Cricket lovers will be able to watch all world cup matches of their favourite teams under this pack, which will expire on 20 November this year, at a very minimal cost. Usually, Rabbithole’s monthly pack costs BDT 99. If it is taken into calculation, a subscriber will have to spend BDT 198 if he or she wants to watch all matches on the video streaming platform. But exclusively for Nagad customers, the cost is only BDT 60, says a press release on Tuesday afternoon.
To avail of the exciting subscription package, a customer needs to visit Rabbithole website ( https://www.rabbitholebd.com/ ) or App, choose “Nagad World Cup pack” and make the payment through Nagad gateway.
Read: Nagad offers World Cup tickets on Mastercard add-money, bill pay
To this end, Nagad and Rabbithole have entered a partnership. Maruful Islam Jhalak, executive director of Nagad Ltd., and A.S.M. Rafiq Ullah, chief executive officer of Content Matters, a mother company of Rabbithole, signed the agreement on behalf of their respective sides at Nagad’s head office on Monday.
Sadat Adnan Ahmad, chief marketing officer of Nagad, and Mohammad Mahbub Sobhan, head of Business Sales of Nagad also attended the event.
Commencing on 3 October 2023, the special campaign will remain valid till 19 October, meaning that Nagad users will not be eligible to purchase the special pack once this tenure ends.
Besides, a customer will be allowed to enjoy this package once during the whole campaign period, subject to fulfilling all relevant terms and conditions.
Talking about this campaign, Sadat Adnan Ahmad, chief marketing officer of Nagad Ltd., “Nagad has made this partnership with Rabbithole to allow its cricket-loving customers to enjoy live world cup matches on this popular video streaming site at a minimal cost.”
Read: Nagad wins Visa Excellence award-2023
“This is also part of our ongoing initiatives taken to bring comfort to people’s daily lifestyles,” he added.
Mentionable, Nagad’s another exciting offer is going on, marking the upcoming ICC Men’s Cricket World Cup 2023. Under the campaign that will continue till 16 October 2023, customers have an opportunity to win World Cup match tickets by making an add-money of BDT 3,450 to their Nagad wallets from Mastercard or by settling their credit card bill of the same amount using this MFS platform.
Read more: Nagad offers ‘Jawan’ movie tickets on ‘Add-Money’ transactions
Walton gets ‘Bangabandhu SheikhMujib Industrial Award-2022’
Country’s global electronics giant Walton has received the first prize of “Bangabandhu Sheikh Mujib Industrial Award-2022” in recognition of its outstanding contribution in the national economy as well as the industrial sector.
In the hi-tech industries category of the award, Walton gained the first place in terms of its annual turnover, manufacturing import substitute products, usage of locally made raw materials, employment creation, CSR activities, proper usage of lands, environment protection, according to a press release.
Also read: Walton Plaza inaugurated in two new districts
A total of 12 industrial units, including Walton, in six categories received the award at a programme held at the Osmani Memorial Auditorium in the capital on Tuesday.
President Mohammed Shahabuddin handed over a golden crest and certificate to Walton Hi-Tech Industries PLC's Vice-Chairman SM Shamsul Alam at the ceremony.
Also read: Walton's business thrives in Q3 of FY 22-23
Agriculture Minister Muhammad Abdur Razzaque, State Minister for Industries Kamal Ahmed Majumder and President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam were present as special guests.
Industries Minister Nurul Majid Mahmud Humayun presided over the event while Senior Secretary of the Industries Ministry Zakia Sultana delivered the welcome speech.
In memory of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, industries ministry arranged the Bangabandhu Industrial Award for the second time aimed to recognise the contributions of institutions in industrial sector, create incentives and encourage creativity.
Also read: Walton brings new models of single door all-rounder fridge
“We could not be industrialists if Bangabandhu was not born here. Introducing this award was a great work in a bid to encourage the creativities in the industrial sector and it should be continued so that the entrepreneurs could be encouraged,” said Walton Hi-Tech Industries' Director SM Mahbubul Alam.
“Walton family is feeling proud to receive this prestigious award. Walton from its very beginning is trying to make the country self-sufficient economically. Now, Walton is exporting 'Made in Bangladesh' labeled products to more than 40 countries, including Europe and America. We are earning foreign currencies by exporting products those were imported once. This remarkable achievement has been made possible by the help of government’s industry-friendly policy. We hope that the government's industrial policy supports would be continued,” he added.
End/UNB/M/MB
BGMEA calls for government policy support to weather challenges of RMG sector
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called for government policy support to weather challenges of RMG sector.
A delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by President Faruque Hassan, held a meeting with Dr. Md. Khairuzzaman Mozumder, Secretary of the Finance Division at the Ministry of Finance, on October 3 at the secretariat.
The delegation was comprised of BGMEA Senior Vice President SM Mannan (Kochi) and Vice President Rakibul Alam Chowdhury.
Read: 8th edition of BGMEA Cup 2023 to kick off on November 9
The meeting revolved around pressing issues concerning the country's readymade garment industry, its potential, and the vision to sustain growth and development.
During the meeting, President Faruque Hassan pointed to the profound impact of the Russia-Ukraine conflict on the global economy, which has presented a significant challenge for the readymade garment industry of Bangladesh.
The repercussions of the Russia-Ukraine war have led to severe inflation in the USA and EU countries and demand for apparel in key export markets like Europe and America has declined as consumers prioritize essential items such as food and fuel over clothing.
This has resulted in decline in garment exports to the Europe and the USA.
Read: BGMEA president tells Canadian official reforms in Bangladesh’s garment industry are huge
This decrease in garment exports, which constitutes over 84 percent of Bangladesh's total export earnings, has impacted the country's foreign reserves.
Recognizing the magnitude of these challenges, President Faruque Hassan emphasized the necessity for government policy support to navigate these troubled times and maintain competitiveness in the global market.
He underscored the industry's increasing focus on diversifying into non-cotton products including man-made fiber (MMF) based garments, given their high demand globally, and urged the government to encourage and facilitate this shift through policy support.
Faruque Hassan highlighted the industry's commitment to environmental sustainability, including efforts in developing the capacity of recycling and promoting a circular economy.
Read more: BGMEA installs CBC machine at its Chattogram Hospital for dengue patients
He stressed the need for government support to advance recycling and circularity within the Bangladesh’s garment industry.
In addition to these concerns, the delegation called for easier and faster services from the banking sector for the RMG industry.
Inflation, economic uncertainty: World Bank lowers Bangladesh’s growth projection for FY24
The World Bank in its latest update has projected Bangladesh’s economic growth to be 5.6 percent in the 2023-24 fiscal year ending next June.
The global lender in its previous projection in April, forecasted a 6.2 percent GDP growth for the current fiscal year.
The report’s companion piece, the latest “South Asia Development Update — Toward Faster, Cleaner Growth,” also released today, says South Asia is expected to grow by 5.8 percent this year, higher than any other emerging and developing region in the world, but slower than its pre-pandemic pace and not fast enough to meet its development goals.
The World Bank in its update stated that Bangladesh made a strong recovery from the COVID-19 pandemic, but the post-pandemic recovery was disrupted in FY23 with rising inflation, vulnerabilities in the financial sector, external pressure, and global economic uncertainty.
“New Frontiers in Poverty Reduction says that reforms to address inflation, through monetary and fiscal policies, as well as financial sector vulnerabilities will be critical for the country to sustain growth and poverty reduction,” the report said.
Read: Finance minister assures parliament of steps to control inflation
A single market-based exchange rate would help attract foreign currency inflows through formal channels and support the balance of payment and reserve accumulation, it added.
Supported by economic growth, Bangladesh improved living conditions and reduced extreme poverty to 5 percent in 2022 from 9 percent in 2016, which is comparable to Latin America and the Caribbean countries and fares better than the South Asian average.
The World Bank said, the new poverty numbers are based on the international poverty line of $2.15 a day (using 2017 Purchasing Power Parity) and the Bangladesh Bureau of Statistics’ (BBS) Household Income Expenditure Survey 2022 and re-estimation for 2016.
“Bangladesh’s progress in reducing poverty is multidimensional — it has improved poor people’s wellbeing, including in reduced infant mortality and stunting, and improved access to electricity, sanitary toilets, and education. The rural areas witnessed faster poverty reduction than the cities and towns,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan.
“Despite these gains, inequality has slightly narrowed in rural areas and widened in urban areas. The World Bank stands ready to support Bangladesh to take on urgent reforms to accelerate inclusive economic growth,” he said.
Read: Planning Minister compares controlling inflation to playing snakes and ladders
The regional report forecasts growth to slow to 5.6 percent in 2024 and 2025 in South Asia, as post-pandemic rebounds fade and a combination of monetary tightening, fiscal consolidation, and reduced global demand weigh on economic activity.
Growth prospects are subject to downside risks, including due to fragile fiscal positions. Government debt in South Asian countries averaged 86 percent of GDP in 2022, increasing the risks of defaults, raising borrowing costs, and diverting credit away from the private sector. The region could also be affected by a further slowdown in China’s economic growth and natural disasters made more frequent and intense by climate change.
“While South Asia is making steady progress, most countries in the region are not growing fast enough to reach high-income thresholds within a generation,” said Martin Raiser, World Bank Vice President for South Asia.
Read more: Despite move to rein in price hike, food inflation rose to 12.54 percent in August: BBS
“Countries need to urgently manage fiscal risks and focus on measures to accelerate growth, including by boosting private sector investment and seizing opportunities created by the global energy transition,” the World Bank Vice President for South Asia pointed out.
Salman F Rahman inaugurates FBCCI Innovation and Research Center
The FBCCI Innovation and Research Center officially started its journey on Sunday in Dhaka.
Prime Minister's Private Industry and Investment Adviser Salman F Rahman inaugurated the FBCCI Innovation and Research Center as the chief guest. This Initiative of FBCCI, the Apex trade body of the country, is aimed at addressing the challenges of the fourth industrial revolution and fostering growth in the private sector through research and policy support.
FBCCI president Mahbubul Alam, former president Md. Jashim Uddin, former senior vice-president Mostofa Azad Chowdhury Babu, and members of the Governing Body of FBCCI Innovation and Research Center were present at the inaugural program.
After the inauguration, the second meeting of the Governing Body of FBCCI Innovation and Research Center was held. Chairman of this center and former president of FBCCI Md. Jashim Uddin presided over the meeting.3
Md. Jashim Uddin said that the FBCCI Innovation and Research Center will accelerate the ongoing progress of the country. He highlighted its mission to nurture skilled manpower and entrepreneurs across various sectors, including Agri-Business, Light Engineering, and Circular Economy.
Salman F Rahman emphasized using this center as a training institute and advised bringing top trainers from other countries such as India, Malaysia, Thailand, USA, etc. He also talked about “ToT” and shared his valuable ideas on building innovation, research, and training floors.
Among Others, FBCCI Vice President and Member of the Governing body of the FBCCI Innovation and Research Center Shomi Kaiser, Abul Kashem Khan, Mohammad Ali Khokon, Shamim Ahmed, Nadia Binte Amin, and CEO of the center Bikarno Kumar Ghosh were present at the Meeting.
LPG price hiked yet again
Price of Liquefied Petroleum Gas (LPG) has increased further to Tk 113.61 per kg for the month of October from Tk 107.01 in September.
Now the retail customers will have to pay an additional Tk 6.6 for per kg LPG.
The new prices will be effective from 6pm on Monday.
Bangladesh Energy Regulatory Commission (BERC) announced the new price, saying that the retail consumers will now get a 12kg LPG cylinder at Tk 1363 including VAT instead of the previous price of Tk Tk1,284.
It means that the customers of 12kg LPG will have to spend additional Tk 79 for cooking purposes.
Read: 12 kg LPG price goes up by Tk 144 in September
Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go up rationally, Md Nurul Amin, the chairman of BERC, said at a press briefing on Monday at the BERC office in Dhaka.
As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also increased to Tk 62.54 per litre (including VAT) from Tk 58.87 per litre. The increase is Tk 3.67 per litre.
The price of LPG, marketed by state-owned LP Gas Company, will remain the same as it is locally produced with a market share of less than 5%.
Read: 12 kg LPG price goes up by Tk 141 in August
BERC officials said the LPG price will witness an increase in the local market due to the increase in the prices of Saudi CP (contract price).
Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi CP.
LPG witnessed the highest price at Tk1,498 (per 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year.
Read more: LPG price slashed again, 12kg cylinder to cost Tk 999
Export-import through Benapole land port suspended
Trade between Bangladesh and India through Benapole-Petrapole land port remained suspended since Monday morning due to celebration of the birth anniversary of Indian Father of the Nation Mahatma Gandhi.
As a result, thousands of goods-laden trucks remained stranded on both sides of the port. Most of the vehicles were carrying the raw materials of Bangladesh's garment industry.
Karthik Chandra Chakraborty, general secretary of Indian Petrapole C&F Agent Staff Welfare Association, said that due to the public holiday on the occasion of the 154th birth anniversary of Mahatma Gandhi, the promoter of India's non-violent movement and pacifist leader, the import-export trade between Bangladesh and India remained shut today.
But the movement of passengers between the two countries and other activities of the port remained uninterrupted, he added.
The export-import activities will resume on Tuesday morning, he said.
Bangladesh Bank sets max interest rate of 10.20% on industrial loans for 6 months
The interest rate on loans from banks in October has been set at 10.20 percent as per Bangladesh Bank’s formula.
The method, based on which the interest rate is now being determined, is known as “SMART” or “Six Months Moving Average Rate of Treasury Bills.” Bangladesh Bank informs of this rate at the beginning of every month.
The new interest rate determining method was introduced on July 1, 2023. Earlier, from April 2020, the maximum interest rate on bank loans was 9 percent.
With D grade Bangladesh Bank governor fares poorly in global ranking
Accordingly, in the current month of October, banks can take a maximum of 10.20 percent interest on large-scale industrial loans.
On the other hand, non-banking financial institutions (NBFIs) can charge interest against loans by adding a margin at a maximum rate of 5 percent. Their maximum interest rate will be 12.20 percent and 9.20 percent on deposits. However, the loan interest rate set in October cannot be changed within the next six months.
This will make the highest interest rate on agricultural loans in September 9.14 percent. An additional 1 percent supervision charge can be levied on CMSME, personal, and car purchase loans.
Bangladesh Bank introduces dollar booking policy for max 1 year
Bangladesh Bank publishes the 6-month average interest rate of 182-day treasury bills from January this year. Last January, the smart rate was 6.96 percent. After that, it gradually increased every month and reached 7.13 percent last May. But in June and July, it decreased slightly to 7.10 percent.
However, it increased to 7.14 percent in August and reached 7.20 percent in September.
On the advice of the International Monetary Fund (IMF), Bangladesh Bank introduced a market-based interest rate system.
Despite Bangladesh Bank Governor’s decision to not raise exchange rate before election, dollar rate hiked again
The interest rate cap of 9 percent was imposed from April 2020 to facilitate traders.
A research report by the central bank also recommends withdrawing or increasing the interest rate limit. But Bangladesh Bank was silent as the government did not give positive consent. One of the conditions of IMF’s USD $4.7 billion loan is to make the interest rate market-based. In light of that condition, the new interest rate system was introduced.
Gold price decreased by Tk1750 to Tk98,211 per bhori from Sunday
Bangladesh Jewelers Association (BAJUS) on Saturday (September 30, 2023) announced it was reducing the price of gold again after an interval of just two days from the last price change.
Earlier, Bajus had last set gold prices on September 27, which was effective from last Thursday.
The new rate will be effective from tomorrow (Sunday, October 1). The price of good quality 22-carat gold has been reduced by Tk 1,750 to Tk98,211 per bhori (11.664 grams). Until Saturday 22 carat gold was Tk99960 per bhori.
Read more: Gold price marks an all-time high to Tk 1,01,244 per bhori
MA Hannan Azad, chairman of the Bajus Price Determination and Price Monitoring Standing Committee said this by a notification on Saturday (September 30).
According to the notification, the price of acidic gold has decreased in the local market. Considering the overall situation, Bajus has fixed the new price of gold.
The price of 21-carat solid gold is Tk93779 per bhori, 18-carat is Tk80365 per bhori and traditional gold price is Tk 66951.
Read more: Gold Buyer's Guide: Know the types, colors, karats of the precious metal
As of today, the price of 21-carat solid gold is Tk95412 per bhori, 18-carat gold is Tk81765 and traditional gold is sold at Tk68118.
The price of gold has increased but the price of silver has been kept unchanged. According to the category, currently, a bhori of 22-carat silver price is Tk1715, 21-carat price is Tk1633, 18-carat price is Tk1400, and traditional method silver price is Tk1050.
Read more: Gold vs Diamond: Which Should You Choose for Investment?