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Private sector credit requires a rapid revival: DCCI
President of Dhaka Chamber of Commerce & Industry (DCCI) Barrister Md Sameer Sattar on Thursday said Bangladesh’s private sector credit growth is essential to make the economy vibrant and competitive.
Along with this, he requested the government to reduce the cost of business operations, get easy loans for small and medium entrepreneurs (MSMEs), expand import substitution industries, continue to achieve austerity in government expenditure, and take up priority development projects.
Sameer Sattar said DCCI believes that the private sector credit flow will increase in a short period of time with the development of a business-friendly environment in the economy.
Above all, the Dhaka Chamber emphasizes on public and private sectors working together to lead to a developed and inclusive growth-supporting economic system, taking into account the importance of the private sector as the main driving force of the economy.
Barrister Sattar said time-bound solutions are expected to change and improve the pro-business environment in the economy and cease the lowering of private sector credit flow in no time.
“Taking the importance of the private sector as the lifeline of the economy into account, we need to exert shared and strategic efforts to enhance the private sector credit flow in order to steer the economy towards a higher and inclusive growth regime as well as much-needed economic graduation in the days to come,” he added.
Over the past decade, Bangladesh has emerged as a role model for developing countries, witnessing an average of 6 percent plus GDP growth backed by consistent growth in socioeconomic fronts.
The private sector has evolved as the key driver of economic growth and employment generation in Bangladesh, contributing significantly to the economy in terms of investment, production, trade, and employment growth. Currently, the private sector contributes more than 80 percent to the GDP with a 37 percent share of Industry to GDP.
Furthermore, the private sector has contributed greatly to building a strong local industrialization base by creating SMEs and large businesses in diverse sectors that have strengthened and connected our local value chain with the global value chain system, said a statement of DCCI.
Bangladesh to benefit from new SAUDIA fleet expansion
The national flag carrier of Saudi Arabia, announced the expansion of its fleet with the addition of a new aircraft type, the Airbus A321neo, under the slogan "A new way of flying."
This feeds into SAUDIA’s expansion plans, which benefit Bangladeshi travellers, as the airline aims to add 20 more A321neo aircraft to its fleet by 2026, a press release said.
Also read: SAUDIA expands international flights incorporating Bangladeshi travelers
Bangladesh travellers will benefit from the A321neo aircraft, a narrow-body airliner part of the A320 family, the world’s most popular single-aisle aircraft family and airlines’ preferred choice around the world due to its reputation for high performance and superior comfort, said the release.
The aircraft offers new levels of performance, seating 180 to 220 passengers in a typical two-class interior layout, which will help with the surge of Bangladeshi travellers during Hajj and tourist season, it said.
The main reason behind the purchase of the aircraft is its ability to run on much less fuel. The A320 family of aircraft has saved 20 million tonnes of CO2 since the A320neo came into service globally in 2016, it also said.
Also read: 9th ATR 72–600 added to US-Bangla Airlines fleet
By incorporating Sharklets, new fuel-efficient engines, and the latest cabin innovations, the A320neo has also seen a 20 percent decrease in fuel burning and CO2 emissions, a 50 percent reduction in noise footprint, a 5 percent lower airframe maintenance costs, and 14 percent lower cash operating costs per seat versus previous generation aircraft.
Captain Ibrahim Koshy, SAUDIA CEO, said: "We are excited to expand our fleet with the new Airbus A321neo aircraft. Our priority is to offer the best guest experience possible and to bring the world to Saudi Arabia, and we will continue to purchase state-of-the-art aircraft from the world’s top manufacturers to deliver on that promise."
Also read: US-Bangla Airlines sending 11 more pilots to USA on training
Koshy added: "We commend Airbus for continuously looking to improve the performance of their aircraft, which goes in line with SAUDIA's ambition to provide the best guest experience possible while contributing to making aviation more sustainable.'"
This partnership highlights the trust and historic relationship between SAUDIA and Airbus. It also feeds into the Saudi Aviation Strategy objective, which aims to turn Saudi Arabia into a leader in the global industry, by enhancing the customer experience, improving safety, and promoting environmental sustainability.
AIBL holds business review meeting
The business review meeting with the managers of corporate branches of Al-Arafah Islami Bank Limited (AIBL) was held at the Head Office of the bank on Wednesday.
Managing Director and CEO Farman R Chowdhury presided over the meeting.
Also read: AIBL organizes business performance meeting
Among others Deputy Managing Directors Shabbir Ahmed, Md. Shafiqur Rahman, Syed Masodul Bari, Md. Mahmudur Rahman, Mohammed Nadim, Abed Ahmed Khan, Abdullah Al Mamun, Fazlur Rahman Chowdhury and senior Executives were present in the meeting.
Managers of Corporate Branches of the Bank participated in the meeting, a press release said.
Also read: AIBL holds business performance meeting
Women investors are shying away from country’s capital market: Official source
Up to 27,000 women closed their Beneficiary Owner (BO) accounts in the capital market last year despite different initiatives taken to bring in more female investors, an official source said Tuesday.
The figure was available from Central Depository Bangladesh Limited (CDBL), a share custodian of the stock market in the country.
According to CDBL data, on August 8, 2022, the number of BO accounts of investors in the capital market was 18 lakh 20 thousand and 157. Among them, the BO accounts of male investors were 13 lakh 70 thousand and 649. And the BO accounts of women investors were 4 lakh 49 thousand and 508.
On August 7 this year, the BO of women investors decreased although there was no significant change in the overall BO of investors in the capital market, according to the data.
While the BO accounts of women investors decreased by about 27000 to stand at four lakh 22 thousand and 516, the number of male investors went up during this period.
Explaining the phenomenon the Chief Executive Officer (CEO) of Modern Securities Limited, Khugesta Nur E Naharin, told UNB that most of the BO accounts in the capital market are managed by men.
A male investor is managing the BO accounts of his wife, mother, and sister. It may be seen that the person's wife, mother, and sister also do not know about these accounts, she said.
As a result, the information contained in the BO account figure is not the true picture of women investors. The actual figure is even lower, she said.
Chairman of Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul-Islam told UNB that female members have been placed on the boards of Dhaka Stock Exchange and Chittagong Stock Exchange to encourage women investors’ participation.
Among the four members of the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulatory body, there is one woman, he said.
There are currently 360 officers and employees in Dhaka Stock Exchange, 10 percent of them are women. Work environment and safety have been ensured to increase the number of women officers in DSE.
Besides, several seminars have been organised to increase women entrepreneurs in the capital market. Awareness programmes have also been conducted to increase women's participation.
40th AGM of BGMEA held
The 40th annual general meeting (AGM) of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was held at BGMEA Complex on Tuesday.
BGMEA Senior Vice President S. M. Mannan (Kochi) chaired the meeting.
The accounts of BGMEA for the year 2021-2022 were adopted and the budget for the year 2022-2023 was approved in the annual general meeting.
BGMEA Vice President Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Vice President Rakibul Alam Chowdhury, BGMEA Directors and general members of the association also attended the AGM.
Sale of unpackaged soybean oil to be allowed for 6 more months
As traders are not fully prepared yet to market 100 percent of packaged soybean oil, the government will allow sale of loose soybean oil for six more months.
However, the sale of loose soybean oil in the market will be completely prohibited after the next six months, said Director General of the National Consumer Rights Protection Directorate (NCRPD) AHM Shafiquzzaman.
Read: Bangladesh exports 2,700 tons of mangoes to 34 countries in current season
The NCRPD organized an awareness meeting on prohibiting the marketing of loose soybean oil. The meeting was held at the head office of the directorate in the capital on Monday.
The businessmen said in the meeting that they agreed on banning the marketing of loose soybean oil but traders are not ready to market 100 percent packaged soybean now with the capacity they have. That is why they want more time to implement this initiative of the government.
Director General of NCRPD Shafiquzzaman said, “We want to stop the sale of loose soybean oil in the market by creating awareness in coordination with the stakeholders.”
Read: Bajus fixes gold price to over Tk 1 lakh per bhori
He asked businesses to give a work plan of the companies within 7 days along with a detailed plan of achieving the capacity to marketing 100 percent packaged soybean oil.
Made in Bangladesh’ brand getting more popular among brands: BGMEA President
World-class safety standards alongside major strides in responsible and sustainable business practices and enhanced capabilities for meeting the demand for diversified products have amplified the preference of international buyers for garments made in Bangladesh, said Faruque Hassan, BGMEA President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He said Bangladeshi garment factories have been making considerable efforts and investment in maintaining workplace safety, upgrading their production capabilities, especially for manufacturing more complex and high-value items, and improving in the area of environmental sustainability.
“The industry’s efforts are paying off as the ‘Made in Bangladesh’ brand is getting more popular among the brands and retailers. It is evident in the recently published report where US fashion companies rated Bangladesh highly as the topmost competitive country in terms of product prices among the world's apparel-manufacturing countries,” he remarked.
Also read: BGMEA President for nurturing young and innovative people to achieve industry’s vision
Faruque Hassan came up with observations while addressing the opening ceremony of liaison office of Sports Group Denmark in Dhaka on August 7.
Bjarne Jeppesen, CEO; Heidi Langergaard Kroer, Supply Chain Manager; and Jan Rossel, Sourcing and Country Manger, Sports Group Denmark were present at the opening ceremony.
In his address, the BGMEA President said diversifying markets and moving to more complex products and value addition is a key strategy for Bangladesh’s apparel industry to pursue sustainable growth.
Also read: BGMEA president urges Australian businesses to invest more in Bangladesh
The industry is increasingly investing in technologies and innovations in line with the changing global trends to enhance their competitiveness, he said, adding that the sector is committed to continue its effort in that direction to keep up its reputation in the global market.
He urged international buyers including Sports Group Denmark to increase sourcing garments, especially high-value ones from Bangladesh.
He also called on them to look for ways to make partnership with their suppliers stronger to reap mutual benefits.
Also read: BGMEA delegation meets Australian Chamber of Commerce to discuss means of enhancing bilateral trade
Bangladesh exports 2,700 tons of mangoes to 34 countries in current season
Bangladesh in the current season has exported 2,700 tons of mangoes to 34 countries so far this year.
According to the Ministry of Agriculture, the mango export rose by 1000 tons this year compared to the previous year. A total of 1,757 tons of mangoes were exported to 28 countries last year.
Also read: Mango to be a major source of foreign currency: Agriculture Minister
According to the ministry, although there is a huge demand for mangoes in the global market, the amount of exports is low due to non-compliance with various international standards including good agricultural practices.
To increase the export of mangoes, the Ministry of Agriculture is implementing a project to increase the production of exportable mangoes, the ministry official said.
Project Director Arifur Rahman told UNB that mangoes will be exported for another 15-20 days this year.
Also read: Langra and Ashina mangoes recognised as GI product
Among 34 countries, 1,256 tons of mango were exported to the United Kingdom, 296 tons to Italy, 260 tons to Saudi Arabia, 137 tons to the United Arab Emirates, 111 tons to Qatar, 55 tons to Singapore, 14 tons to Switzerland, 70 tons in Germany, 85 tons in France, 65 tons in Sweden, 218 tons of mangoes were exported to Kuwait and 40 tons to Canada.
About 25 lakh tons of mangoes are produced in the country annually. But the amount of export is very low compared to production. Only 232 tons in the fiscal year (FY) 2017-18, 310 tons in FY 2018-19, 283 tons in FY 2019-20, 1632 tons in FY 2020-21, and 1757 tons in FY2021-22 were exported.
Also read: Mango export begins with 10 tonnes to 4 countries
FBCCI and ICC discuss strengthening trade ties
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Indian Chamber of Commerce (ICC) held a B2B (Business to Business) meeting on Monday.
The meeting was held with a business delegation of 43 members of the ICC visiting Bangladesh at the FBCCI office in the capital.
Also read: Mahbubul Alam of Chattogram Chamber new FBCCI president
FBCCI Senior Vice President Mostafa Azad Chowdhury Babu presided over the meeting. The ICC delegation was led by its Director General Rajiv Singh. The meeting discussed the strengthening of commercial relations between the two countries, a press release said.
General inflation virtually unchanged at 9.69 percent in July
The general inflation remained virtually unchanged at 9.69 percent on a point-to-point basis for the month of July, having been 9.74 percent in June, said the Bangladesh Bureau of Statistics (BBS).
The inflation in Bangladesh saw a slow pace in decrease while the inflation of many South Asian countries is decreasing steadily. Economists said inadequate steps of the government failed to rein in inflation.
Read: Bangladesh Bank raises agro credit target to Tk 35000 cr in FY23-24; rooftop gardeners will also get farm loans
The country’s general inflation was 7.48 percent in July 2022, which jumped to 9.69 percent in July 2023. In May 2023 the inflation jumped to a decade-high 9.94 percent.
General non-food inflation dropped to 9.47 percent in July, down from 9.60 percent in June. However, food inflation experienced an increase to 9.76 percent in July, compared to 9.73 percent in June.
The general inflation in the rural areas decreased to 9.75 percent in July from 9.82 percent in June.
Read: Despite tightening imports, Bangladesh faces a deficit of $8.22 billion in foreign transaction
In urban areas, the general inflation has decreased to 9.43 percent from 9.45 percent in June.
Two independent sets of commodities (goods & services) are used to compute the Consumer Price Index for rural and urban areas. The rural and urban baskets cover 383 items with 749 varieties of goods and services. This index has been rebased with 2021-22 as the reference index.
Read: Bangladesh earned $4.59 billion from export in July
The CPI items for the national and sub-national indices are classified into 12 major categories such as food and nonalcoholic beverages, alcoholic beverages, tobacco and narcotics, clothing and footwear, housing, water, electricity, gas, and other fuels, furnishings, household equipment, and routine maintenance of the house, health, transportation, communication, recreation and culture, education, restaurants and hotels and miscellaneous goods and services.