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Deal signed with Qatar to get additional 1.5 MTPA of LNG for next 15 years
Bangladesh has signed a new deal with Qatar to get an additional 1.5 million tons per annum (MTPA) of liquefied natural gas (LNG) for the next 15 years from 2026.
Bangladesh’s state-owned Petrobangla signed the new agreement with Qatar’s state-owned Ras Laffan Liquefied Natural Gas Company Ltd., (Qatargas) at a function at Qatari capital Doha on Thursday.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Qatar’s State Minister for Energy Saad Sherida al-Kaabi were present at the contract signing ceremony, said a press release of the Ministry of Power, Energy and Mineral Resources.
Energy secretary Dr Khairuzzaman Majumder was also present on the occasion.
Petrobangla chairman Zanendra Nath Sarker and Executive Vice President (Marketing) of Qatar Energy Trading LLC Abdulla Ahmad Ai-Hussaini signed the contract on behalf of their respective sides.
Under the new deal, Qatar will supply an additional about 1.5 MTPA of LNG per year from 2026 to 2040. Of this, Bangladesh will get 12 LNG cargoes in 2026 and 24 cargoes in 2027.
Currently, Bangladesh has been importing 1.82-2.5 million MTPA of LNG since 2018 under an existing deal signed in 2017.
Addressing the function, Nasrul Hamid thanked Qatar for agreeing to supply additional LNG to Bangladesh.
“The long-term contract of the LNG supply is a comforting achievement for Bangladesh at a moment when the entire world is facing unrest regarding the energy supply,” he said.
Nasrul said that this energy partnership between Bangladesh and Qatar has added a new dimension to the existing friendship between the two countries.
It was possible to sign this long-term LNG agreement quickly because of the diplomatic move from Prime Minister Sheikh Hasina, he added.
He said that the supply of all kinds of energies will be ensured to maintain the economic pace.
As Bangladesh is one of the fastest growing economies, the demands for power and gas have constantly been increasing in the country, he added.
Qatar’s State Minister for Energy Saad Sherida al-Kaabi said that his country is proud to be the largest LNG supplier to Bangladesh.
“Annual LNG supply of more than 3.5 million tons will contribute to the overall development of Bangladesh including its socio-economic status,”he added.
Stock market today: Asian markets mostly higher after Biden-McCarthy deal on US debt
Asian shares are mostly higher after President Joe Biden and House Speaker Kevin McCarthy reached a final agreement on a deal to raise the U.S. national debt ceiling.
Tokyo, Sydney and Shanghai advanced while Hong Kong fell. Markets in Seoul were closed for a holiday.
The agreement on the U.S. debt eased what had been a potentially huge threat to markets worldwide. Biden and McCarthy worked over the weekend to ensure enough support in Congress to pass the measure before a June 5 deadline and avert a disruptive federal default.
"Markets are so far reacting cautiously. Buoyed, but cautious," Clifford Bennett, chief economist at ACY Securities, said in a commentary.
"This agreement merely rolls the issue to potentially more politically friendly times post the Presidential election in two years. Nothing is certain in this regard, and it is possible resolution will be even more difficult then, than it has been on this occasion," Bennett said.
Tokyo's Nikkei 225 index jumped about 2% in early trading but was trading up 1.3% at 31,325. by midday. The S&P/ASX 200 in Sydney jumped 1% to 7,228.60. The Shanghai Composite index edged 0.2% higher to 3,218.26.
In Hong Kong, the Hang Seng slipped 0.3% to 18,696.34.
U.S. markets will be closed for a holiday on Monday. Investors have another busy week of U.S. economic updates ahead, including data on consumer confidence and employment.
On Friday, technology stocks powered solid gains for Wall Street after chipmaker Marvell Technology surged a record-setting 32.4% after the chipmaker said it expects AI revenue in fiscal 2024 to at least double from the prior year. That follows Thursday's report from fellow chipmaker Nvidia, which gave a big forecast for upcoming sales related to AI.
The upbeat finish to the week for major U.S. indexes comes amid lingering anxiety over persistently high inflation and broadly weak corporate earnings.
The S&P 500 rose 1.3% to close at 4,205.45. The Dow Jones Industrial Average gained 1% to 33,093.34. The tech-heavy Nasdaq notched the biggest gains, surging 2.2% to 12,975.69. The index rose 2.5% for the week as artificial intelligence became a big focus for investors.
The revolutionary AI field has become a hot issue. Critics warn that it is a potential bubble, but supporters supporters say it could be the latest revolution to reshape the global economy. The nation's financial watchdog, the Consumer Finance Protection Bureau, said it's working to ensure that companies follow the law when they're using AI.
Wall Street and the broader economy already had a full roster of concerns before the threat of the U.S. defaulting on its debt became sharply highlighted on the list.
A key measure of inflation that is closely watched by the Federal Reserve ticked higher than economists expected in April.
The persistent pressure from inflation complicates the Fed's fight against high prices. The central bank has been aggressively raising interest rates since 2022, but recently signaled it will likely forgo a rate hike when it meets in mid-June. The latest government report on inflation is raising concerns about the Fed's next move.
The latest inflation data also highlighted the continued resilience of consumer spending, which has been a key bulwark, along with the strong jobs market, against a recession. The economy grew at a sluggish 1.3% annual rate from January through March and it is projected to accelerate to a 2% pace in the current April-June quarter.
The impact from inflation and worries about a recession on the horizon have been hitting corporate profits and forecasts. The latest round of company earnings is nearing a close with the profits for companies in the S&P 500 contracting about 2%.
Beauty products company Ulta Beauty fell 13.4% after trimming its forecast for profit margins. Discount retailer Big Lots fell 13.3% after reporting a much bigger loss last quarter than analysts expected.
Investors rewarded several companies that reported strong financial results. Gap rose 12.4% after reporting a strong first-quarter profit.
In other trading Monday, U.S. benchmark crude oil added 81 cents to $73.48 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 84 cents to $72.67 per barrel on Friday.
The dollar slipped to 140.44 Japanese yen from 140.59 yen. The euro rose to $1.0734 from $1.0724.
FBCCI's Jashim Uddin takes over as President of SAARC Chamber
President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Md. Jashim Uddin took charge as the president of the SAARC Chamber of Commerce and Industry (SCCI), the apex trade body of the South Asian region, at the Hotel Intercontinental in Dhaka on Thursday.
He will be serving as the SAARC Chamber president in 2023–24.
The new president said that South Asia with its diversified resources and skilled workforce has tremendous potential to be the fastest-growing exporting region to the world.
“As we begin this new tenure, our region is experiencing rapid economic growth, but we must also confront a range of complex issues and barriers to trade that limits cross-border regional trade,” he said.
The Intra-trade among SAARC countries continues to be low ranging between 5-7% of total trade. In addition, this is declining every year, he said.
“On the other hand, we are seeing increased integration in other regional blocks. Intra-regional trade is over 40% in NAFTA, 68% in EU, 27% in ASEAN. Their economic integration is directly tied to their GDP per capita, higher productivity and, lower poverty and unemployment,” he added.
“It is imperative for us to draw lessons from the successes achieved by other regional agreements, and channel their experiences of regional identity and solidarity into our efforts to propel SAARC towards new heights,” he said.
It is the responsibility of the SAARC leaders to find innovative and sustainable solutions to these challenges, and to work together to create a brighter future for the people of the region, he opined.
The priority will be given to enhance collaboration on sectors with high growth potential such as information technology, manufacturing, energy, tourism, and agribusiness that derive tangible results, he added.
Jashim Uddin joined the Board of Bengal Group of Industries as director in 1983 while studying commerce at the Dhaka University.
He is the chairman of Bengal Commercial Bank Limited, vice-chairman of the Bengal Group of Industries and Bengal Media Corporation.
He is also the president of the Bangladesh Plastic Goods Manufacturers and Exporters Association.
OPPO launches ‘Inspiration Challenge 2023’
OPPO Research Institute has announced the launch of “2023 OPPO Inspiration Challenge” on World Smile Day.
Based on the brand proposition of "Inspiration Ahead", OPPO and its global technology ecosystem partners aim to bring new and innovative solutions to life by providing funding, support, and partnership opportunities worth $4,40,000 in total, said a press release.
The institute has partnered with Qualcomm Technologies, GSMA 5G IN, Amazon Web Services and LinkedIn in launching the initiative.
Applications for the “2023 OPPO Inspiration Challenge” will start from May 8 to June 30, with three regional demo events set to take place in Bangkok, Boston and Shenzhen in early August, said the release.
Finalists from each regional demo event will be invited to join the Inspiration Challenge Acceleration Camp and meet with OPPO executives and technical experts to revise their proposals before the global final demo event at the end of August.
All the proposals for “OPPO Inspiration Challenge” this year will be evaluated based on the four criteria of Feasibility, Technological Innovation, Long-term Potential, and Social Values.
A total of 15 qualified proposals from regional demo events will be selected as global finalists and top five winning proposals will be selected in the global final demo event, each being awarded a grant of USD $50,000, added the release.
Meanwhile, Oppo Research Institute will provide further partnership opportunities to the top 45 proposals worldwide – made up of the top 15 proposals in each regional challenge – including, productization and commercialization opportunities.
An incubation fund totaling US$190,000 will be set up to co-develop solutions for implementation, strategic partnership and investment opportunities, opportunities to showcase at global technology events, opportunity to receive cloud resources and technical support from Amazon Web Services, according to the press release.
"OPPO believes deeply in the idea of ‘Virtuous innovation.' As we continue to explore new technology, we remain dedicated to doing so in a way that puts people first," said Levin Liu, head of the OPPO Research Institute.
"With global issues like public health, accessible technology and environmental protection being the key concerns, we could not rely on our own efforts to provide solutions, he said. “We have therefore initiated the Inspiration Challenge to empower like-minded innovators to tackle these big issues together with us using the power of technology and create a better world for all."
G-7 talks focus on ways to fortify banks, supply chains as China accuses group of hypocrisy
Bank runs, cyber security and building more reliable supply chains to ensure economic security were among items on the agenda of closed-door financial talks Friday in Japan by the Group of Seven advanced economies.
Tensions with China, and with Russia over its war on Ukraine, loomed large on the wide horizon of issues the G-7 is tackling this year in Japan, its only Asian member.
But while G-7 finance ministers and central bank chiefs discussed ways to protect the international rules-based order and prevent what they are calling “economic coercion” by China, Beijing lashed back, accusing the club of wealthy nations of hypocrisy.
Chinese Foreign Ministry spokesperson Wang Wenbin said Thursday that, “to put it bluntly, the international rules that G-7 talks about are the Western rules of ideology and values and the rule of small clique that puts the U.S. first, that is dominated by G-7.”
“The G-7 demands that China abide by international rules, but it is a representative of those who violate and break international rules,” Wang said in a routine news briefing.
China accuses Washington of hindering its rise as an increasingly affluent, modern nation through trade and investment restrictions that the United States says are needed to protect American economic security.
Speaking before the talks began, U.S. Treasury Secretary Janet Yellen said such measures are “narrowly targeted” and focused on national security.
"It's not focused on undermining China's economic competitiveness or preventing them to advance economically," Yellen said.
Asked what G-7 countries mean by trying to prevent “economic coercion," namely by China, Yellen cited trade actions by Beijing against Australia as one example.
"There have been examples of China using economic coercion on countries that take actions that China's not happy with from the geopolitical perspective," she said. “We in the G-7 share a common concern with this kind of activity and are looking to see what we can try to do to try to counter this kind of behavior.”
China's relations with the 27-nation European Union, which is also a member of the G-7, have also been frayed by friction over trade and over its tacit support for Russia.
Leaders attending the talks in Niigata said they would be considering ways to prevent countries from skirting sanctions against Moscow meant to hinder its ability to continue the war.
Both the U.S. and European Union maintain they are not advocating "decoupling," or dismantling extensive economic ties with China, but support “de-risking” relations to avoid becoming too dependent on China.
For its G-7 presidency, Japan has prioritized launching a partnership with low- and middle-income countries to build “robust supply chains” to help cut carbon emissions. One key area of concern for all G-7 countries is the heavy concentration in China of suppliers of rare earths materials needed in many high-tech products.
Meanwhile, recent failures of banks in the U.S. and Europe have added to the complexity of steering the world economy toward a sustained recovery from the pandemic while cooling inflation that surged to multi-decade highs in the past year.
“It’s become clear that financial worries can spread in an instant via social networking sites, and online banking, allowing money withdrawals outside business hours, can cause bank runs,” Japanese Finance Minister Shunichi Suzuki said Thursday.
The collapses of Silicon Valley Bank and other lenders stemmed largely from the pressure of interest rate hikes that, by making borrowing more expensive, are designed to slow business activity and cool inflation.
The meetings in Niigata are a good chance to “compare notes and to see how we can make the world a little bit more stable and reach the price stability that we very much want to arrive at in short order,” Christine Lagarde, head of the European Central Bank, said in videotaped comments posted online.
Overhanging the financial experts' talks is the question of whether President Joe Biden and Congress will come to an agreement on raising the ceiling on the national debt before the U.S. government runs out of money to pay its bills. Yellen said a default on the national debt would be catastrophic and was “unthinkable.”
A meeting between Biden and lawmakers on the issue was pushed back to May 18 to allow staff talks to continue over the weekend. Administration officials portrayed it as a positive step and it did not appear to indicate a breakdown in talks.
The three days of talks in this port city on the Sea of Japan are the last in a series of ministerial meetings to prepare for a summit of G-7 leaders next week in Hiroshima.
Unilever partners with Orange Corners Bangladesh
To support young entrepreneurs in Bangladesh, Unilever Bangladesh Ltd. (UBL) has signed an agreement with Orange Corners, an initiative of the Ministry of Foreign Affairs of the Netherlands.
Implemented by YY Ventures, BYLC Ventures, and SAJIDA Foundation, and supported by the DBL Group and Unilever, the Orange Corners programme in Bangladesh aims to create opportunities for the next generation of Bangladeshi business leaders by providing them with the necessary tools and resources to succeed, said a press release on Thursday.
With a presence in 17 Hubs across Africa and the Middle East, Orange Corners launched its 18th Hub in Bangladesh - its first Asian nation, in early February 2023. The Orange Corners programme in Bangladesh will equip youth, aged between 18 and 35 years, with skills, funding, and resources to build sustainable businesses, particularly those that address the UN's Sustainable Development Goals; all while the program partners combine their strengths to create an inclusive and equitable entrepreneurship ecosystem in Bangladesh.
The programme has a strong focus on inspiring Bangladeshi youth to participate in solving local challenges, and ensuring gender equity across all phases of the programme.
Unilever has a long-standing commitment to supporting sustainable and inclusive growth. This partnership with Orange Corners Bangladesh aligns with Unilever's global mission to help create a more equitable and sustainable future. By supporting young entrepreneurs in Bangladesh, Unilever hopes to drive economic growth and create a positive impact in the community, reads the release.
Zaved Akhtar, CEO and Managing Director of Unilever Bangladesh said, "Bangladesh's journey over the last few decades has been nothing but short of a miracle, and the economy has immense potential with an enormous pool of young talent. If all young people get the opportunity to acquire the right skills and their personal development, our progress should be unlimited. From raising productivity and reducing inequality to creating businesses and improving communities, there is no end to the benefits their talents and ideas could bring. However, young people today face extraordinary economic, social and cultural challenges and need a wide variety of skills to thrive in work and life. As part of Unilever's Compass priorities and commitment to youth skills development, we have committed to helping 10 million young people aged between 15 and 24 years to gain employment skills that will help them find meaningful work opportunities and prepare for the future of work. Since 2020 Unilever has been working with social enterprises in Bangladesh and helping innovative social businesses to solve market-based solutions which can play vital roles in poverty reduction, economic development and pollution reduction. Our collaboration with Orange Corner will allow us to reach a larger group of youth. I believe our combined strengths will create an inclusive and equitable entrepreneurship ecosystem in Bangladesh."
Orange Corners Bangladesh is gearing up for its first hackathon to be held in May 2023. For additional information on the Orange Corners program in Bangladesh, please contact the team through [email protected].
1,265 vehicles imported from Japan and Singapore arrive at Ctg port
A ship carrying record numbers of reconditioned vehicles imported from Japan and Singapore has arrived at Chittagong port recently.
The Malaysian flag carrier 'MV Malaysia Star' carrying 1265 reconditioned vehicles berthed at the port's Jetty No. 7 and 8, said Barrister Badruzzaman Munshi, deputy commissioner of Chittagong Customs House.
He said that 569 vehicles were unloaded at Chittagong Port. The rest will be cleared at Mongla port, he added.
According to Chittagong Customs sources, because of the dollar crisis, the opening of LC for luxury goods was closed for a long time. Recently, vehicle LCs have been opened again as the economic situation has become normal.
The port authorities have expressed hope that the revenue from these cars will be over Tk 200 crore.
Habibur Rahman, the former general secretary of Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), an organisation of car dealers, said that if the economy of the country is to be kept alive, the use of cars must be continued.
Bangladesh, World Bank sign US$ 2.25 billion loan agreement comprising 5 projects
World Bank will provide USD 2.25 billion as loan to Bangladesh to develop various sectors, including regional trade and connectivity, disaster preparedness and environmental management.
A loan agreement was signed on Monday (May 01, 2023) between Bangladesh and the World Bank for implementing five projects.
Prime Minister Sheikh Hasina and World Bank President David Malpass witnessed the exchanges of the financing agreement.
Read: Stay with us in implementing future physical & social mega projects: PM Hasina to WB
This loan agreement comprises five projects:
· Accelerating transport and trade connectivity in Eastern South Asia (ACCESS) – Bangladesh Phase-1 Project worth USD 753.45 million.
· USD 500 million Resilient Infrastructure Building Project (RIVER) for resilience, adaptation and vulnerability reduction that will be the first major investment to support Bangladesh’s Delta Plan 2100. It will help improve disaster preparedness against inland flooding.
· USD 500 million First Bangladesh Green and Climate Resilient Development (GCRD) project is the first such credit that will help the country’s transition to resilient development.
· USD 250 million Sustainable Microenterprise and Resilient Transformation (SMART) project aims to help transform the microenterprise sector into a more dynamic, less polluting, resource efficient and climate resilient growth sector.
· USD 250 million Bangladesh Environmental Sustainability and Transformation (BEST) project to help strengthen environmental management and promote private sector participation in green investment.
Read More: External pressure behind World Bank's withdrawal from Padma Bridge, says PM Hasina urging it to look into future
Bangladesh may opt to align energy prices with intl market rates
Bangladesh may soon prefer to set the petroleum fuel prices in line with with the international market prices.
Such an idea was floated by the Energy and Mineral Resources Division during its meeting with the visiting team of the International Monetary Fund (IMF) on Sunday, said a source at the division.
According to sources, the IMF has been pressing the government to follow a specific formula to set its petroleum fuel prices as per the prices in the international market as part of the lending agency’s $4.7 billion loan agreement, as it does with the LPG price at present.
Currently, at the beginning of every month the government announces the LPG price as per the global market rate.
As a result, no subsidy is being given on LPG.
But the government has to provide a huge subsidy in the petroleum sector.
Officials said the IMF has been pressing the government to withdraw its subsidy by liberalising the petroleum fuel price like the LPG price.
The IMF team was led by Rahul Anand, the head of the Asia Pacific Region of the lending agency, while energy secretary Dr Khairuzzaman Majumder led the Energy and Mineral Resources Division at the meeting.
Official sources said the officials of the Energy and Mineral Resources Division briefed the IMF teams about the measures taken by the division in the energy sector following the government’s loan agreement with the lending agency.
They said that earlier the government had to raise the prices of gas, petroleum and electricity as per conditions of the IMF to receive the $4.7 billion in loan.
“But the lending agency wants Bangladesh fully pursue a policy in setting the energy prices under which it should not need to provide any subsidy,” said a senior official of the Energy and Mineral Resources Division.
However, energy secretary Dr Khairuzzaman Majumder was not available to comment on the issue.
Trade through Sonahat land port resumes after 10 days
Trade with India via Sonahat land port in Kurigram's Bhurungamari Upazila resumed on Saturday after 10 days of closure on the occasion of Eid ul-Fitr, port authorities said.
Mohammad Rahul Amin, assistant director (Traffic) of Sonahat Land Port, said trade through the land port remained suspended from April 19-28 due to Eid ul-Fitr and the weekly holiday on Friday.
“Export and import of goods via the port has restarted. Vehicles coming from India with goods have started entering the land port since morning,” said Rahul Amin.