local-business
Preparing next budget a daunting task amid IMF pressure, global economic slowdown, speakers tell ERF workshop
Speakers at a budget reporting workshop on Wednesday said that preparing the national budget for FY 2023-24 will be a challenging job amid global economic downturn and the IMF’s pressure to cut subsidies.
They said the governments will try to give a popular budget in the election year, but the International Monetary Fund (IMF) wants reforms in the financial sector and reduction of subsidies by increasing the prices of electricity and fuel oil.
They said this while speaking in a workshop on budget reporting, organised jointly by Research and Policy Integration for Development (RAPID), The Asia Foundation, and Economic Reporters’ Forum (ERF).
The government has to focus on raising revenue collection by increasing the tax net and stopping tax evasion to meet the expenditures, the speakers said.
Dr Mohammad Abdur Razzaque, Chairman of RAPID, and Dr M Abu Eusuf, executive director of RAPID, gave separate presentations highlighting different sectors of the budget emphasising on the need for increasing government expenditures.
They also emphasised on the need for increasing the tax-GDP ratio through increasing the capacity of NBR and tax officials as it is related to raising the government’s ability to spend more on welfare and development sectors.
Shamsul Huq Zahid of the English Daily the Financial Express said the budget is a state document of expenditures, but the budget lost its importance while bureaucrats prepare a budget that is only read out in Parliament.
He said that people’s engagement is very important to make the budget pro-poor and need-based.
Zahid also opposed any steps for hiking or reducing prices of different products by NBR’s SROs. He said all such decisions should be determined in Parliament.
ERF president Mohammad Refayet Ullah Mirdha presided over the discussion meeting.
Sugar disappears from Dhaka stores amid high price
Loose sugar was on Wednesday selling in Dhaka markets atTk135 to Tk 140 per kg – much higher than the government-fixed price – citing short supply.
On April 8, the government set price at Tk104 per kg for loose sugar and at Tk 109 for packaged sugar. Consumers, however, complained the ceiling hardly worked.
In the retail market packaged sugar has hardly been available. And even for the loose sugar the consumers have to pay Tk135 to 140 or per kg, up from Tk120 to 125 a kg last week.
On Wednesday, during visits to different markets in the capital this correspondent saw no packaged sugar in the stores. Traders reported no supply of sugar since Eid-ul-Fitr festival late last month.
The wholesale companies have failed to deliver citing short supply.
Importers blame the short supply on the high price of sugar in international market affecting domestic supply.
They are waiting for the government to decide if they would go for import at higher prices. They too have reduced imports due to higher prices.
Read more: Sugar price reduced by Tk 3 per kg: Commerce Ministry
According to the government agency, Trading Corporation of Bangladesh (TCB), the price of sugar increased by 15 percent in a month while it increased by more than 62 percent in one year.
Salmat Sarder of Chadpur Store of Karwan Bazar told UNB that packaged sugar has not been available for a long time. Loose sugar purchased at the wholesale level is more than Tk130 per kg. Still, dealers are not giving purchase receipts.
Bangladesh aims to pursue next level of growth with high-value added apparels: BGMEA chief
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Worldex India will collaborate on strengthening connections between businessmen of Bangladesh and India to realize untapped trade potential, particularly in the textile and apparel sector.
The two organizations will work jointly to bring closer suppliers and exporters of apparel, textile, chemicals, machinery and other raw materials through trade shows.
Executive Director of Worldex Arti Bhagat called on BGMEA President Farque Hassan at BGMEA Complex in Uttara in Dhaka on May 2.
Senior Head (Operations & Marketing) of Worldex India Zahir Merchant was also present at the meeting.
In the meeting, they discussed possible collaboration between BGMEA and Worldex India in creating platforms to bring businessmen of two countries together and facilitate more business interactions.
The current business landscape has created huge opportunities for Bangladesh and India to reap mutual trade benefits by assisting each other in the textile and apparel sector.
Faruque Hassan said Bangladesh aims to pursue the next level of growth with high-value added apparels including manmade fibre-based garments, and India is a major supplier of MMF, chemicals, dyes and other raw materials.
"On the other hand India wants to boost its textile exports.”
Given the geographical proximity and the demand-supply match, the scope is enormous for both countries to complement each other, and make the most of the opportunities, he added.
Laying the emphasis on increasing more direct business interactions between Bangladeshi RMG exporters and Indian textile products suppliers, Faruque Hassan said it would help to derive reciprocal trade benefits.
He expressed hope that the Bangladesh and India trade relationship would be strengthened more in the coming years through meaningful cooperation.
US Bangla offers special Bangkok package
Private carrier US-Bangla Airlines has announced a special package for Bangkok with free accommodation.
The special package starting from TK 40,590 includes Dhaka-Bangkok-Dhaka return ticket on the route, a free stay at popular hotels such as Ambassador Square Wing (Main Wing)-11 and Sky Wing (Tower Wing)-11 and Hotel Grand President-11 for two nights and daily buffet breakfast.
Apart from twin sharing, there are various packages for children. There is a facility to take any package to Bangkok on six months EMI facility at no extra cost.
If any tourist wants to stay extra nights outside the package, s/he has to pay extra money. The package is not changeable in any way after finalisation.
The package can be purchased from any sales office of the carrier fulfilling the conditions.
NRBC Bank recommends a 12 percent dividend for shareholders
The Board of Directors of NRBC Bank Limited has recommended a 12 percent dividend comprising 7.50 percent cash and 4.5 percent stock dividend for the shareholders for 2022.
The issue will be placed to the approval of the 10th Annual General Meeting of the Bank.
The decision was adopted in the 162nd meeting of the Board of Directors, held on Sunday.
The meeting was held in hybrid mode (online and offline) and was presided by its Chairman SM Parvez Tamal.
The Board also decided to hold the 10th Annual General Meeting of the Bank on Digital platform on 19 June 2023, Monday. The Record date for dividend entitlement has been fixed on 25 May 2023, Thursday. The meeting approved audited financial statements for the end on 31 December 2022.
According to the balance sheet, the consolidated Earnings per Share (EPS) of 2022 stands at Tk 2.44, and solo EPS at Tk 2.19.
On the other hand, the consolidated Net Asset value (NAV) per share on 31st December 2022 stands at Tk 16.73 whereas it was Tk. 15.12 in December last year. The solo NAV per share is Tk. 16.31 which was Tk. 14.89 in last December.
CPD survey reveals Tk 1500cr social safety funds spent on ineligible beneficiaries
The Centre for Policy Dialogue (CPD) in a survey report said about one-third or Tk 1500 crore of social safety net allocation goes to ineligible beneficiaries due to wrong selection.
The report stated about 30 percent of social safety net recipients are elderly and 33 percent are widowed ineligible beneficiaries. Through which about Tk 1500 crore was spent on ineligible beneficiaries.
CPD calls for effective household surveys to prevent this and selecting people to be beneficiaries based on nepotism and political consideration.
CPD believes that if this wastage can be prevented, it is possible to bring 45 percent of the genuinely eligible people under the allowance. At the same time CPD also suggested increasing the allocation to bring eligible non-beneficiaries under the allowance.
Dr Khondaker Golam Moazzem, research director of CPD revealed the primary survey data on Sunday at a discussion on ‘How to Improve Coverage and Effectiveness of the Social Safety Net Program’, held at BRAC Centre in the capital on Sunday.
The survey highlighted that beneficiaries from different areas of Bangladesh believed they were receiving the benefit due to nepotism or a faulty selection process.
Even beneficiaries of other social security programmes like pension and vulnerable group development are getting old age and widow allowances, the report said.
On the issue of nutrition, the survey found that pulses and vegetables were the main sources of nutrition for allowance recipients.
The CPD suggested that to achieve the SDG goals, all eligible individuals in the country should be brought under a social safety net programme.
It required an additional allocation of Tk90,000 crore in the budget, which can be possible to earn by stopping tax evasion, the think tank’s observation said.
Chief guest of the programme Rashed Khan Menon, MP also chairman parliamentary standing committee on Ministry of Social Welfare said the state was politically and economically trapped by a small group of rich people, and while poverty was decreasing, inequality was increasing.
“Social security programmes should be increased to reduce inequality. However, the social security sector does not have the resources to increase allocations, and this can only be done if tax evasion is stopped,” he added.
Aroma Dutta MP, Dr Md Abdul Aziz MP, Rasheda K Chowdhury, former adviser to the caretaker government were present in the function as the special guests.
CPD Executive Director Fahmida Khatun chaired the event and opined in her speech that nepotism and political considerations were present in the selection of beneficiaries of social security programmes.
The bigger problem was that those affected were not receiving the security benefits and those receiving it were getting less than what they should, she said.
Nagad to disburse allowances from PM’s fund to Gopalganj’s fire affected traders
The state-owned Mobile Financial Service (MFS) provider Nagad has been entrusted with the job to disburse financial assistance among fire affected traders in Gopalganj’s Kotalipara.
The financial assistance from the Prime Minister’s Relief and Welfare Fund will be given to the affected people through the MFS, according to a Nagad media release.
On April 23, a fire originating from a short circuit gutted several shops in Ghaghor Bazar in Kotalipara.
Later, Premier Sheikh Hasina decided to give a hand to the affected businessmen from her own relief and welfare fund. Each business will get a financial grant of Tk 25,000 from the fund.
Muhammad Zahidul Islam, head of Public Communications, Nagad, said, “Whenever we get any responsibility from the government, we carry out that flawlessly. We think that we are making great strides in establishing a cashless society in Bangladesh through digital disbursements of allowances and stipends.”
During the Covid-19 pandemic, the disbursements of the prime minister’s Eid gifts among poor families started using Nagad. In its continuation, the state-owned MFS later successfully distributed primary stipends and social safety allowances among real beneficiaries.
Nagad has already become a role model in disbursing government allowances and other financial assistance. Its successful journey of reaching cash aid out to poor and helpless people began with the disbursement of PM’s pandemic-time Eid gifts.
After that, the MFS carrier has continued to disburse stipends among 1.5 crore primary school students and social safety allowances, such as old-age allowance, widow allowance, allowance for the underprivileged with special needs and students with special needs among 50 lakh beneficiaries.
Meanwhile, Nagad has also successfully distributed grants to poor women marking the birth anniversary of Bangmata Begum Fazilatunnesa Mujib. It has also disbursed financial assistance provided by the Ministry of Fisheries and Livestock.
CAB places 13-point proposals to ensure 'energy justice'
The Consumers Association of Bangladesh (CAB) has placed a 13-point proposal to ensure "energy justice" in the country.
CAB Vice president Prof M Shamsul Alam placed the proposals at a citizen meeting titled: "Energy Crisis and Development of Renewable Energy" at the Cirdap Auditorium in the city on Saturday as part of its reform campaign to bring transparency, fairness and combating corruption in the sector.
The proposals include enactment of law prohibiting all kinds of unsolicited and uncompetitive investment in the energy sector, no mixing of private and public investment in the energy sector, directors appointed in companies in public sector from the bureaucrats, state-owned companies and organizations must be run by own technical manpower, cancelling the recent amendments to the Bangladesh Energy Regulatory Commission (BERC) Act that curtail its authority, cancelling the Speedy Enhancement of Power and Energy Supply (Special) Act 2010 and allowing the energy regulatory body to act independently.
Ensuring production of more than 50 percent of gas and electricity from public sector on cost-basis, treating use of funds from the Gas Development Fund, Power Development Fund, and Energy Security Fund as consumers' equity investment, gradually reducing the share of coal and petroleum fuels in primary fuel mix under the short and medium term plans, increasing gas exploration by own initiative and raising the use of renewable electricity to reduce import of coal and gas, and evolving policies and strategies in energy sector in compliance with the Paris Agreement to combat climate change are also among the 13-point proposal.
With CAB chairman Ghulam Rahman in the chair, the seminar was addressed, among others, by Workers' Party president Rashed Khan Menon, Samyabadi Dal president Dilip Barua, Communist Party of Bangladesh (CPB) general secretary Ruhin Hossain Prince, Jatiya Party presidium member Barrister Shamim Haider Patwari, Bangladesh Samajtantrik Dal assistant secretary Rajequzzaman Ratan, eminent energy expert Prof Badrul Imam, economist MM Akash, architect Iqbal Habib and lawyer barrister Jyotirmoy Barua addressed the function.
Criticising the Speedy Enhancement of Power and Energy Supply (Special) Act at the seminar, Rashed Khan Menon said an indemnity has been given through this law so that no public servant could be tried for corruption.
"Indemnity is a very disgusting word in our politics which cannot be acceptable in any civil society," he said.
He said now electricity is being generated for which there is no use. But the consumers have to pay the price as capacity charge.
Prof Badrul Imam alleged that state-owned company Bapex's capability is not being utilised although most of the gas fields were explored by this organisation.
He said American USGS found in its survey that the country still has 32 trillion cubic feet (TCF) undiscovered gas. But the government is not interested in producing that gas, he said.
Dilip Barua said the ruling party is now working against the ideology of Bangabadhu by promoting corruption through plundering of state wealth.
Jatiya Party presidium member Barrister Shamim Haider Patwari said, "I don't understand much about energy, but there is no need to be enlightened to understand the corruption going on here. Many bureaucrats are working in the respective ministries with their relatives. It is very sad."
FBCCI, JCCI signed MoU to strengthen bilateral trade
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Japan Chamber of Commerce and Industry (JCCI) signed a Memorandum of Understanding (MoU) on Thursday at the Westin Tokyo of Japan to strengthen bilateral trade and economic relations between the two countries.FBCCI President Md. Jashim Uddin and JCCI Chairman Ken Kobayashi signed the MoU on behalf of their organisations.The MoU was signed at the inauguration of the summit on Trade & Investment Opportunities between Bangladesh and Japan held at The Westin Tokyo of Japan. Bangladesh’s Prime Minister Sheikh Hasina was present at the program as the chief guest.Under the MoU, the parties agreed to cooperate with each other to develop more productive contacts between the businesses of the two countries, exchange knowledge and information related to bilateral trade and economic development.Private industry and investment adviser to the Prime Minister Salman F Rahman, Foreign Minister Dr. A. K. Abdul Momen, State Minister of ICT Division Zunaid Ahmed Palak, FBCCI Former President Md. Shafiul Islam (Mohiuddin) MP, Vice Presidents M A Momen, Aminul Haque Shamim, Md. Amin Helaly, Salahuddin Alamgir, Md. Habib Ullah Dawn, Directors, Executive Chairman of BIDA Mr. Lokman Hossain Miah, Executive Chairman of BEZA Mr. Shaikh Yusuf Harun, Ambassadors of the two countries, high officials of the governments, business leaders were present at the summit.
Stock markets witness highest transaction Thursday in 5 and a half months
The country’s both stock markets’ trading ended with the highest transaction on Thursday.
The index points of Dhaka stock exchange rose by 7 points and Chittagong stock by 14 points—the highest in five and a half months.
As a result, the stock market index rose on the four working days after Eid. Even before Eid, the five-day index traded in an upward trend. All in all, the capital market has risen for the last nine consecutive working days.
On Thursday, shares of Rahima Food, ITC, Kohinoor Chemical, Heidelberg Cement and Bashundhara Paper Mills have played a major role in the rise, along with the food, insurance and IT sectors. These five companies contributed about 35 percent to the increase in the share index.
According to DSE data, over 15.90 crore shares and units were traded in DSE today (Thursday). Over Tk 967.69 crore has been transacted in it while Tk765.33 crore was traded on Wednesday. The transaction has increased by more than Tk 200 crore compared to the previous day.
It was the highest transaction in the last 5 and a half months. Earlier on November 9, 2022, Tk1018.85 crore was transacted in the DSE.
On this day, the main index DSE increased by 7.70 points from the previous day to 6274 points. Among the other two indexes, DSE Shariah Index rose by 3.10 points to 1,362 points. However, the DSE-30 index fell by 4.64 points to 2088 points.
A total of 351 shares and units of companies were traded on DSE. Among them, the prices of 79 companies increased, 62 companies decreased and 210 companies' share and unit prices remained unchanged.
Shares of Genex Infosys were at the top of the transaction on DSE on Thursday. After that, shares of Unique Hotel were traded the most. The share of Bangladesh Shipping Corporation was in the third place. Then in the top 10 were shares of Eastern Housing, Bashundhara Paper Mills, Olympic Industries, Gemini Sea Food, Rupali Life Insurance, Apex Footwear and IT Consultants Limited respectively.
The overall index of the other stock market CSE CASPI increased by 14.93 points to 18466 points. Shares and units of 160 companies were traded on CSE. Among them, the prices increased for 44 companies, decreased for 45 companies and remained unchanged for 68 companies.
At the end of the day, over 7.95 crore shares and units were traded in CSE. The previous day the transaction was 9.67 crore.