Business
March sees 7.77% decline in remittance, despite pre-Eid expectations
Bangladesh witnessed a notable decrease in inward remittances by 7.77% to US$1.99 billion in March, deviating from the expected increase ahead of Eid, according to the latest data released by Bangladesh Bank on Monday.
This decline comes as a surprise, especially since February recorded a high of $2.16 billion in remittances from Bangladeshis living abroad, marking an eight-month peak.
Bangladesh received $1.93 billion of remittance in November: BB
The usual trend sees a spike in remittances as expatriates send more money home to support their families during Eid. However, this period has shown an unexpected downturn.
Industry insiders attribute the fall to an increase in remittances sent through unofficial channels, or Hundi, prompted by more favorable exchange rates for the US dollar outside the formal banking system.
Bangladesh received $2.16 billion remittances in February, highest in fiscal
Economist Dr. Ahsan H. Mansur highlighted that remitters are opting for Hundi, where the exchange rate is Tk 5 to 7 higher per US dollar, over official channels. This shift has sparked concerns about the impact on the country's foreign exchange reserves.
Bangladesh Bank's executive director and spokesperson, Md Mezbaul Haque, remarked that despite the dip in March, the flow of inward remittances has risen through legal channels due to governmental and banking incentives.
Inward remittances rose just under 3% from previous year in 2023
Haque remains optimistic that remittance figures will rebound in April, citing measures taken by the central bank to encourage remittances through formal avenues. These include directives for banks to offer additional incentives from their resources, complementing the government's existing 2.5% incentive on expatriates' incomes.
"By allowing banks to purchase dollars at an additional 2.5% higher rate, we aim to make the legal channels more attractive for sending remittances," stated Mezbaul, underscoring efforts to counter the reliance on informal remittance routes and stabilize the remittance inflow.
Grameenphone introduces Eid offers to propel Smartphone adoption for all
Grameenphone, the connectivity partner to Smart Bangladesh, is amplifying the joy of Eid for its customers by introducing exclusive internet bundle offers alongside the purchase of authorized new 4G & 5G smartphones, enriching customers’ digital lifestyles.
To accelerate connectivity access, digital inclusion and the journey towards a ‘Smart Bangladesh’, Grameenphone collaborated with the top 10 smartphone partners to empower and build a nation of smart citizens. With this latest offer, Grameenphone users will enjoy a 6-month free internet package, and a 1-month subscription to premium OTT platforms with the purchase of a new smartphone.
As a key enabler of Smart Bangladesh, Grameenphone recognizes the pivotal role smartphones play in shaping a digital way of life to empower smart citizens.
The company believes in the transformative power of the internet, whether it’s for everyday necessities, education or healthcare to improve their lives.
Biman holds 'Meet the Press' in Italy’s Naples to promote its Rome-Dhaka flight
To accelerate smartphone adoption across the nation and realize the vision of Smart Bangladesh by 2041, Grameenphone has unveiled these exciting offers.
Customers can avail of this 6-month free internet bonanza by purchasing smartphones from any outlets of the leading brands such as Samsung, Xiaomi, VIVO, OPPO, Realme, Nokia, Tecno, Itel, Infinix, Symphony, as well as GP branded modems and routers.
Additionally, subscribers will enjoy 30-day complimentary subscriptions to leading streaming platforms such as Hoichoi, Chorki, and SonyLiv.
This comprehensive offer provides customers with both connectivity and entertainment options. Mohammad Sajjad Hasib, Chief Marketing Officer, Grameenphone, said, “Connectivity plays a crucial role in driving economic transformation. The four pillars of the Smart Bangladesh vision- smart citizen, smart economy, smart government, and smart society - all rely on digital connectivity. At Grameenphone, we recognize the essential role of smartphone penetration in achieving digital transformation. Our purpose is to connect people to what matters most to them, and we believe our collaboration with leading smartphone brands will ensure inclusivity in the journey towards a digitally connected society. Grameenphone is dedicated to empowering individuals with the power of connectivity, and this Eid, we wish to share joy and happiness with our customers with delightful offers in collaboration with our partners. Together, we aim to make the celebration even more vibrant and memorable for our valued customers.”
GP hosts Iftar event in Rangpur for GPStar customers
During the campaign, customers who purchase a smartphone will be eligible for 26GB of free internet with a 7-day validity for 6 months. Additionally, they will enjoy a 30-day free subscription to a premium OTT service for their first-time usage. Upon purchase, customers will receive an initial allocation of 4GB regular internet and 2GB streaming internet, both valid for 7 days.
They will also gain access to premium OTT services for a full month, allowing them to enjoy a wide range of exclusive content. From the second month until the sixth month, customers will continue receiving 2GB regular internet and 2GB streaming internet, both valid for 7 days.
'Pocket' wallet, BAJUS sign MoU to provide financial services
Bangladesh Jewellers' Association (BAJUS) and Payment Service Provider (PSP) Pocket of ABG Technologies Limited signed a memorandum of understanding on Monday.
Bajus General Secretary Badal Chandra Roy and ABG Technologies Limited Director Mostafa Azad Mohiuddin signed the MoU on behalf of their respective sides.
BGMEA president seeks embassy’s support in attracting Italy’s investment
The signing ceremony was held at the Bajus office in Bashundhara City Shopping Complex in the capital. Leaders and officials of both the organisatios were present.
According to pocket Authority, Pocket e-wallet has a modern and customer-friendly mobile app, through which customers can easily make sure fast payments.
Stock markets end on high note Sunday amid price increase
BGMEA president seeks embassy’s support in attracting Italy’s investment
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan paid a courtesy call on Monirul Islam, Ambassador of Bangladesh to Italy, at the embassy in Rome.
Embassy officials including Economic Counsellor Md. Al Amin and First Secretary (Labour) Ashif Anam Siddique were also present during the meeting.
The discussions centered on the significant trade and investment opportunities between Bangladesh and Italy, with a particular focus on increasing Bangladeshi garment exports to Italy, especially high-value fashion products.
President Faruque provided an overview of Bangladesh apparel industry’s current state, future potential and vision.
He highlighted the industry’s growing shift from basic to high-end products, particularly the fashion items based on man-made fibers and technical textiles.
Since the demand for high-end garments is significant in the Italian market, there is a considerable opportunity for Bangladesh to export such goods to Italy, he observed.
He emphasised the potential investment sectors for Italian investors, including non-cotton textiles, food and agro-processing, IT, light engineering, leather, and shipbuilding.
The BGMEA leader sought the support from the Embassy to promote bilateral trade and investment, especially attracting investments from Italy in the promising industrial sectors in Bangladesh.
Highlighting the direct flight between Dhaka and Rome, Faruque emphasised its significance in enhancing business communication.
He called upon the envoy to streamline consular services and simplify the visa obtaining process for businessmen, with the aim of fostering increased business interactions.
The BGMEA president called on Ambassador Monirul Islam to facilitate collaboration between BGMEA University of Fashion and Technology (BUFT) and fashion institutes in Italy to enhance the skills of BUFT students.
Amid lower govt spending relative to GDP, Bangladesh plans increased investment to stimulate pvt sector
Bangladesh's Finance Ministry is tackling what it identifies as one of its most formidable challenges: significantly amplifying public expenditure to catalyse sustained growth within the private sector.
An official document from the ministry underscores that, in comparison to other economies, Bangladesh's government spending as a percentage of GDP markedly trails, thereby emphasising the urgency to augment investment.
Data from the World Economic Forum and the IMF (as of April 2023), reveal Bangladesh's public expenditure at 13.1% of its GDP, a figure that stands in stark contrast to countries like France at 58.5%, Sweden at 46.8%, and even neighbouring India at 28.8%. This discrepancy highlights the room for growth in Bangladesh's fiscal strategy.
The government, aiming to elevate GDP growth and living standards, views the expansion of its expenditure as crucial. This ambition is supported by the progressive implementation of reforms in Public Financial Management. Historically, the government has gradually increased its spending relative to GDP, signaling a positive trajectory.
Interest rate for April set at 13.55%, for consumer loans add 1%
Outlined in the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)' from the Finance Division, the government's medium-term strategy is geared towards securing inclusive and high growth. This strategy is aligned with Bangladesh's Vision 2041, the 8th Five Year Plan, and the Sustainable Development Goals (SDGs), focusing on priority sectors including infrastructure, industrial production, food security, job creation, healthcare, and education among others.
In anticipation of the demands of the Fourth Industrial Revolution (4IR), significant allocations have been dedicated to human resource development, particularly in education and skills training. The fiscal projections set public expenditure targets at 15.2% for the 2023-24 fiscal year, 15.4% for 2024-25, and 16.2% for 2025-26.
The document further highlights Bangladesh's progression to a lower-middle-income country, with aspirations to attain upper-middle-income status by 2031. This ambition aligns with the developmental targets set within the 8th Five Year Plan and reflects the government's commitment to resuming the rapid economic growth witnessed pre-COVID-19 and pre-Russia-Ukraine war.
Banks to remain open on April 5, 6, and 7 for payment of garment workers’ salary, bonus
In response to the COVID-19 pandemic, the government prioritised life and livelihood protection, adopting an expansionary fiscal policy and channeling additional funds into critical sectors.
Despite the global political and economic instability, these measures have begun to show promise, with expectations of returning to pre-pandemic growth levels and policies aimed at promoting pro-poor and inclusive growth.
As Bangladesh looks forward, the Finance Ministry is set on formulating strategies to enhance pro-poor growth, stimulate both domestic and international private investment, bolster public investment, curb inflation, generate employment, and alleviate the balance of payment pressures. These objectives underscore a holistic approach to not only recovering from recent global challenges but also setting a solid foundation for long-term, sustainable development.
Interest rate for April set at 13.55%, for consumer loans add 1%
The interest rate on bank loans for April based on the ‘Six-Months Moving Average Rate of Treasury Bills’, SMART system has been announced by Bangladesh Bank.
The Banking Regulation and Policy Department of Bangladesh Bank (BB) issued a circular in this regard on Sunday.
The SMART increased by almost 1 percent to 10.55 percent in March, from 9.61 percent in February and 8.68 percent in January.
Stock markets end on high note Sunday amid price increase
Banks will be allowed to add a maximum 3.0 percent to the SMART number when signing loan agreements in April, down from 3.5 percent in March.
As a result, the interest rate on bank loans will be charged a maximum of 13.55 percent in April, while the interest rate on consumer loans will be a maximum of 14.55 percent as a bank can charge a 1.0 percent supervision fee for consumer loans.
The interest rate on bank loans in March was 13.11 percent, while it was 14.11 percent on consumer loans. Before that in February, it was 12.43 percent and 13.43 percent. In January this interest rate was 11.89 percent and 12.89 percent.
As the SMART rate increased more than expected in March, the BB reduced the 'SMART' margin rate that banks are allowed to add by 0.50 percent in the interest of consistency with the monetary policy. The BB cut the margin by 0.25 percent in February.
Govt has no complete list of public services against which it levies fees or charges: Finance Ministry document
As per the new guidelines, the margin added for pre-shipment export loans and agricultural and rural loans will be a maximum of 2.0 percent in April, which was 2.50 percent in March.
Generally, the loans taken from banks for purchasing personal and consumer goods such as car loans, housing loans, and education loans, including refrigerators, TVs, computers, etc., are consumer loans.
Talking to UNB, executive director of the Policy Research Institute Dr Ahsan H. Mansur said that the central bank has no choice other than increasing interest rates to control inflation.
"The interest rate hikes would continue till the inflation rate comes down to 5-6 percent, only then will the interest rate stabilise," he explained.
During this period, industries and personal borrowers will suffer, but they must face the reality. Through this hardship, the economy will gain strength and stability.
Stock markets end on high note Sunday amid price increase
The prices of stocks of almost all companies listed at the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) showed an upward trend on Sunday.
The stock showed this upward trend on the first working day of the current while the prices of stocks and the index of both the markets fell last week, according to market data.
Last week, out of the four trading days, the prices of stocks fell in the first three working days. However, the price increases slightly on the last working day of the week. As a result, the stock market was bullish for two consecutive working days.
No reason for deteriorating stock market situation, said Brokers’ Association
Since trading started in the stock market on Sunday, the share and unit prices of most of the companies increased. The share prices of most companies continue to rise throughout the trading period. As a result, the day's trading ended with a big rise in the index.
The end of the day's trading shows that the prices of 273 companies have increased on the DSE. On the contrary, the price of 74 companies has decreased. The price of 49 companies remains unchanged. In this, the main price index of DSE DSEX increased by 51 points to 5829 points.
The DSE-30 index, which consists of 30 companies, has increased by 10 points compared to the previous day and stands at 2021 points. And the DSE Shariah index rose by 11 points to 1,266 points compared to the previous day.
Along with the increase in all indexes, the volume of transactions on DSE also increased. Tk467 crore was traded in DSE, while Tk411.08 crores were traded on the previous working day. Accordingly, the transaction has increased by Tk55.92 crore.
Shares of Central Pharmaceuticals contributed the most to this transaction. The shares of the company were traded worth Tk 24.73 crore. Shares of Shahinpukur Ceramics in the second place were traded worth Tk 23.43 crore. Asiatic Laboratories is in third place with a share transaction of Tk 20.55 crore.
Rally in banking stocks drives DSE index to 16-month high
The country’s other stock market Chittagong Stock Exchange (CSE) overall price index CASPI increased by 75 points. The prices of 123 companies out of 211 have increased. In contrast, the prices of 66 decreased and 22 remained unchanged. At the end of the day, the volume of transactions at the CSE stood at Tk11.92 Crore.
Banks to remain open on April 5, 6, and 7 for payment of garment workers’ salary, bonus
Bangladesh Bank has asked the scheduled banks to keep branches open on April 5, 6, and 7 under special arrangement for payment of garment workers' salaries, Eid bonuses, allowances, and export bills.
The Department of Off-site Supervision of the central bank on Sunday issued a circular in this regard and sent it to the top executives of the banks for necessary actions.
Envoy Textiles’ 28th AGM held, Shehrin Salam dismissed from board, Tanvir re-elect MD
As per the central bank’s instruction, the banks will remain open for transactions from 9:30 am to 12:30 pm on a limited scale.
It instructed banks to keep open the branches in Dhaka metropolitan area, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and the industry-related branches of banks located in Narayanganj and Chittagong ensuring adequate security.
Sonali Life Insurance's CEO removed
Mir Rashed Bin Anam has been suspended and removed from the post of chief executive officer (CEO) from Sonali Life Insurance Company Ltd, known as Sonali Life.
According to official sources, the Insurance Development and Regulatory Authority (IDRA) in a letter in this regard on March 28 approved a decision of the board of directors of the Sonali Life Insurance, which was taken on March 14 this year.
Earlier, the Rashed was appointed as CEO of the Sinali Life on April 24 in 2022. But a move was initiated by the Sonali Life authority to remove him from the CEO post after his “Master of Business” degree certificate was proven to be fake.
Rashed could not be contacted as he has been in jail since March 14 in a money embezzlement case.
Sources said a three-member investigation committee, formed by the Sonali Life authority, found the Master of Business certificate, received from University of Technology Sydney, fake.
In addition, a huge misappropriation of funds by the CEO was also found by the investigation committee, said a source at the Sonali Life Insurance Company.
Envoy Textiles’ 28th AGM held, Shehrin Salam dismissed from board, Tanvir re-elect MD
Envoy Textiles Limited has conducted its 28th Annual General Meeting (AGM) amid critical outcomes for its leadership and board structure.
Tanvir Ahmed was emphatically re-elected as Managing Director (MD) for another term of five years, receiving a unanimous vote of confidence from the shareholders. He got a total of 10 crore 63 lakh 83 thousand 178 votes in his favour.
Summit Group’s 3 power plants receive nod for further 5 years extension
The AGM, held in a hybrid format at Gulshan Shooting Club, Dhaka, on Thursday, was chaired by Kutubuddin Ahmed, the founder and chairman of Envoy Textiles Limited.
A major reshuffling of the board occurred during the meeting. An overwhelming 99.97 percent of shareholders opposed the re-election of Shehrin Salam Oishee as a director, leading to her removal from the board.
Sunil Daulatram Daryanani, nominated by Epic Garments, was elected as a new director. Furthermore, the AGM reinforced the company’s strategic direction by unanimously re-electing Kutubuddin Ahmed and Sumayyah Ahmed as directors, ensuring a continuity of strong leadership.
Chinese company Song Shin Leather to invest US$ 6 million in Cumilla EPZ
Adding to the backdrop of these decisions, in a previous Extra-ordinary General Meeting (EGM) held on March 2, 2024, Shehrin Salam Oishee was also not elected as Deputy Managing Director (DMD), indicating a significant shift in the company's executive leadership dynamics. These developments underscore a period of transition and strategic realignment for Envoy Textiles Limited.