business
Urban areas hit harder as Bangladesh's inflation reaches 9.81% in March
The Bangladesh Bureau of Statistics (BBS) reported on Tuesday that the nation's inflation rate reached 9.81% in March, up from 9.67% in February.
The latest BBS figures reveal increases in both food and non-food inflation for the month. Food inflation escalated to 9.87%, while non-food inflation increased to 9.64%. In comparison, February's figures were 9.44% for food and 9.33% for non-food inflation, respectively.
MoU signed between BTRC and BIGF
Urban areas experienced a higher inflationary impact than rural regions, with urban inflation hitting 9.94% compared to 9.68% in rural areas. Urban food inflation reached 9.98%, and non-food inflation was 9.71%, whereas rural figures stood at 9.86% for food and 9.41% for non-food inflation in March.
Dr. Ahsan H. Mansur, a former senior economist at the IMF, highlighted that the country has been grappling with high inflation for over 18 months, heavily impacting those with limited incomes.
In response, the Bangladesh Bank has implemented several strategies, including an increase in the policy interest rate. Consequently, the bank loan interest rate has soared to over 13.55%. However, Dr. Mansur noted that these measures have yet to show significant economic impact due to delays and bureaucratic hurdles.
Petrobangla now plans to invite int’l bidding for onshore blocks for hydrocarbon exploration: Chairman
Economists point to an unregulated market system and rising product prices as the primary culprits behind the persistent high inflation rate.
MoU signed between BTRC and BIGF
A Memorandum of Understanding (MoU) has been signed between the Bangladesh Telecommunication Regulatory Commission (BTRC) and the Bangladesh Internet Governance Forum (BIGF).
On Tuesday morning, director of the Systems and Services Division of the Commission, Lt. Colonel SM Rezaur Rahman, and the Secretary General of BIGF, Mohammad Abdul Haq, signed the agreement on behalf of their respective organisations at the BTRC office at Agargaon, Dhaka, according to a press release.
According to the MoU, the organisations will collaborate on activities related to raising public awareness about internet governance, exchanging views with stakeholders, and Bangladesh's position on the "Summit for the Future" and the "Global Digital Compact" conferences.
BTRC Chairman Engineer Md Moinuddin Ahmed said at the event that BTRC has been assisting BIGF in various activities related to internet policy governance in recent years and that the signing of this MoU will further accelerate and make these activities more meaningful.
BIGF Chairperson Hasanul Haq Inu said that the signing of the MoU has created further opportunities to work with BTRC on the implementation of the "Summit for the Future" and the Digital Compact and on internet policy issues.
The event was moderated by the Director General of the Systems and Services Division of BTRC, Brig Gen Mohammad Khalil-ur-Rahman, and was attended by the Vice-Chairman of the Commission, Mr. Aminul Haq, Commissioner of the Spectrum Division, Engineer Sheikh Riaz Ahmed, Commissioner of Finance, Accounts and Revenue Division, Dr. Mushfiq Mannan Chowdhury, Commissioner Mr. Md. Delwar Hossain, all Directors General of the Commission, and senior officials of BTRC and BIGF.
Banglalink launches campaign to boost 4G, 5G smartphone adoption
Telecom operator Banglalink has launched a campaign to boost 4G and 5G smartphone adoption, enabling a comprehensive digital lifestyle experience for all.
Under this campaign, tailored to suit every budget and preference, Banglalink has a range of smartphone offers, according to a press release.
The campaigns include six months of free internet, 50 percent bonus internet on data packs above Tk 100, Toffee subscription, and trial access to several innovative digital and Value-Added Services including Islamic Service, Banglaflix and Caffe Adda with complimentary trials. By dialing *121*701# customers will enjoy this free offer.
Additionally, customers can now enjoy the nation's Ookla®️ certified fastest 4G network, along with six months of free 9GB internet.This includes 4GB free in the first month and 5GB per month for the subsequent five months, each valid for 7 days.This attractive bundle offer is available on 4G & 5G smartphones from major brands like Samsung, Vivo, Xiaomi, itel, Tecno, Infinix, Oppo and can be availed from brand outlets and Banglalink Customer Care Centers.
Mehedi Al Amin, Banglalink's Marketing Operations Director, stated, “As Bangladesh's fastest 4G service provider, our aim is to provide our valued customers with seamless digital experiences. We are delighted to build strong partnership with all major smartphone brands and enable customers to get the best possible utilization from their smartphone by experiencing digital lifestyle through banglalink offering. Banglalink is continuously working to empower users embracing digital ecosystem, accelerating progress towards our goal of a Smart Bangladesh.”
Govt's silence about capital market loss suspicious: AB Party
Leaders of Amar Bangladesh Party, AB Party, on Monday criticised the silence of the government on the drastic fall in share price of a large number of companies.
They said groups of influentials have looted people's money by gambling with the share prices, and the market regulators and the government remained silent on the issue to give a safe space to smugglers.
Stock markets end on high note Sunday amid price increase
The AP said this in a briefing held at its office at Kakrail in Dhaka on Monday. AB Party leader Barrister Asaduzzaman Fuaad, and Prof. Dr. Abdul Wahab Minar, among others, spoke in the briefing.
Petrobangla now plans to invite int’l bidding for onshore blocks for hydrocarbon exploration: Chairman
After floating bids for offshore oil and gas exploration, Petrobangla now plans to invite international bidding for onshore hydrocarbon exploration.
“We’re now working on preparing the bidding documents for onshore oil and gas exploration,” said Petrobangla Chairman Zanendra Nath Sarker while speaking at a workshop of the energy reporters at Petrocentre in the city.
He noted that his organisation will appoint a foreign consultant to assist Petrobangla in attracting the international oil companies (IOCs).
Petrobangla organised the workshop for the members of the Forum for Energy Reporters Bangladesh (FERB) to inform them about the technical and financial issues of the “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”.
Gold price goes up by Tk 3,499 per bhori over just two days
Earlier, Petrobangla, the oil, gas and mineral corporation, floated the offshore bidding on March 10 this year inviting international oil and gas companies to explore in Bangladesh's maritime area in the Bay of Bengal.
The tender, named “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months time until September 9, 2024 for submission of the bids.
As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.
The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.
BASIC Bank to merge with City Bank in strategic consolidation move
The bidder, singly or in association with other companies, can bid for one or more blocks.
Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.
The country has a total of 48 gas blocks of which 26 are offshore and 22 onshore blocks.
The Petrobangla officials informed that some 11 onshore blocks will be placed for bidding as currently two international companies remained engaged in 11 onshore blocks.
Gold price goes up by Tk 3,499 per bhori over just two days
Bangladesh Jewellers Association (BAJUS) has hiked the price of gold today to a historic peak, increasing it by Tk 1,750 per bhori (11.664 grams), thereby setting the price of 22-carat gold at Tk 117,573 per bhori.
This adjustment reflects the fastest pace of growth in the global gold market and marks the highest pricing for gold in the nation's history.
Following the global trend, BAJUS announced the price increment on Monday, effective from 4 pm the same day, as detailed in a press release. This announcement came closely after a similar increase was instituted on Saturday, cumulatively elevating the gold price by Tk 3,499 per bhori over just two days.
Under the new pricing regime, gold of various purities will see revised rates: 22-carat gold is now priced at Tk 117,573 per bhori, or Tk 10,080 per gram; 21-carat at Tk 112,208; 18-carat at Tk 96,228; and traditional gold is set at Tk 80,190 per bhori.
While the cost of gold has seen significant adjustments, the price of silver remains constant, with 22-carat silver priced at Tk 2,100, 21-carat at Tk 2,006, 18-carat at Tk 1,715, and traditional silver at Tk 1,283 per category.
This upward trajectory in gold prices aligns with the global market trends, where the price per ounce (31.103 grams) has escalated to US $2,329, a stark rise from prices below $2,000 observed on February 14.
The surge in gold prices on the international stage is largely attributed to anticipations of a policy interest rate cut by the Federal Reserve of the USA, sparking a rapid increase in gold investments. This phenomenon has significantly influenced the pricing strategy of gold in Bangladesh, reflecting the interconnected nature of global financial markets and commodities.
BASIC Bank to merge with City Bank in strategic consolidation move
In a significant development within Bangladesh's banking sector, BASIC Bank is set to merge with City Bank, following a decision made during a Monday meeting between Bangladesh Bank Governor Abdur Rouf Talukder and top officials from City Bank.
The meeting saw the presence of Aziz Al Kaiser, Chairman of City Bank, and Mashrur Arefin, the bank's Managing Director and CEO, discussing the future of this strategic consolidation with the central bank's governor.
A source from the central bank revealed that the merger between BASIC Bank and City Bank will be carried out on a voluntary basis. This decision comes after City Bank's board recommended the merger on March 19, which was subsequently discussed with BASIC Bank's board and officials from both banking institutions.
Despite the merger, it has been decided that for the next three years, the two banks will continue to report their financials separately, according to sources close to the matter.
Mezbaul Haque, Executive Director and spokesperson for Bangladesh Bank, commented on the broader context of bank mergers in the country. He noted that several banks are currently engaging in discussions with the central bank on various issues, including potential mergers. Haque assured that the public would be informed once a final decision is reached on these matters.
This move comes amidst a trend of bank consolidations within Bangladesh, highlighted by the recent agreement for Padma Bank to merge with EXIM Bank in March, signaling a wave of strategic mergers aimed at strengthening the country's banking sector.
IFC invests $30 million in Pran Dairy Ltd, Habiganj Agro Ltd
To support severely impacted businesses—especially those relying on imports for raw materials—amid a shortage of US dollars in Bangladesh, IFC is investing $30 million in Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL), both part of the PRAN Group.
It aims to improve the resilience of the food processing market while creating jobs, fostering gender diversity, and strengthening the economy.
Top execs of merging bank cannot hold posts at acquiring entity: Bangladesh Bank
This is the first of IFC’s USD term loans to be used for working capital purposes in Bangladesh, which will enable PDL and HAL to sustain operations, increasing exports and preserving over 30,000 jobs, said a media release on Sunday.
The IFC will further support PRAN Group to improve participation of women as well as inclusion in their workplace through relevant policies and practices.
The F&B accounts for approximately 13 percent of the manufacturing production value and employs 19 percent of the industrial manufacturing workforce with a projected compound annual growth rate of 12 percent.
However, the current paucity of foreign exchange, higher energy prices, and power shortages in the country has disrupted the import of raw materials while constraining local commercial banks’ lending ability. Against this backdrop, IFC’s longer-term US dollar financing will help improve access to foreign exchange, supporting Bangladeshi companies to navigate the crisis, it reads.
Uzma Chowdhury, Director (Finance) of PRAN-RFL Group said, “As a net importer, regular access to US dollars is critical. But given the prevailing shortage, it has been difficult for us to access USD funds for working capital in a timely manner. By providing scarcely available US dollar working capital, IFC will help ensure the long-term stability of the company’s operations and allow us to contribute to the country’s economic stability.”
Bangladesh's example of how fast a good economy becomes weak to be taught in textbooks: Prof Mustafiz
Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan and Nepal said, “Reiterating our commitment to supporting clients during a crisis, IFC’s financing aims to ease the current lack of access to foreign exchange while enabling private sector growth in Bangladesh. We are optimistic it will help improve food security while prioritizing support for strategically important industries through innovative solutions. By backing PRAN Group, IFC will also contribute to diversifying Bangladesh's export base, key to creating jobs, expanding market opportunities, and enhancing economic resilience.”
Since 2010, the IFC has invested over $3.8 billion to help the private sector grow in Bangladesh.
Bangladesh's example of how fast a good economy becomes weak to be taught in textbooks: Prof Mustafiz
Distinguished fellow of Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman said Bangladesh’s example of how fast a strong economy can become a weak one will be placed in the textbooks.
He said Bangladesh’s economy was in a good position even 18 months ago, but now the situation is very uncertain.
Prof Mustafiz said this while spraking as the key speaker in a seminar titled ‘Macro Economy Stability and Next Budget’ organised by Economic Reporters’ Forum (ERF) in its auditorium on Sunday.
34% of Bangladesh's revenue spent on debt repayment: CPD
Waseqa Ayesha Khan MP, State Minister for Finance was present in the seminar as the chief guest. ERF President Mohammad Refayet Ullah Mirdha in the chair, Former BGMEA President Anwar-Ul-Alam Chowdhury (Parvez), business leader Shams Mahmud also spoke in the event.
The State Minister Waseqa Ayesh said that initiatives have been taken to reduce tax deductions in the next budget.
“The National Board of Revenue (NBR) is scrutinizing sectors in this issue. Now there is no need for tax breaks in so many sectors. Priority projects will be given importance in the next budget as well,” she said.
Apart from this, discussions are going on to increase private sector investment, said Waseqa.
She further said that universal pension system will be taken to all people in the next budget.
CPD’s Fellow Mustafiz also said, “If there is a problem in the economy, it will be the first to suffer. Then it’s bleeding. Later gangrene occurs. In the end, surgery is required. So it is better to solve the problem of the economy in the beginning.”
CPD wants adjustment in capacity charges instead of raising power tariff to reduce subsidy
He said, “A businessman travels abroad in business class 10 times a year. Drives a Mercedes Benz all year round. But looking at the income on his tax records, it looks like he needs a charity. Sometimes he is a bank loan defaulter.”
The challenges of the 21st century cannot be met with 20th century institutions. So the institutions and regulators should be reformed and allowed to work independently, said prof Mustafiz.
Broiler chicken price up by Tk100 per kg in Chattogram
People are suffering because of the sudden increase of chicken prices just before Eid in the port city.
The chicken that was sold at the price of Tk 170 per kg during the month of Ramadan is now being sold at Tk 270 per kg.
Prices of meat, chicken and egg rise on Friday
Abdul Jabbar, a buyer of the Chawkbazar area of Chittagong city, said that the price of broiler chicken was high throughout the year. “Now it’s gone out of reach ahead of Eid,” he added.
“Sellers remained silent regarding the sudden price hike. Some, however, claimed that the farmers have raised the price of chicken due to the increase in demand compared to the supply in the market.”
Alamgir, a chicken trader in the city's Riazuddin Bazar, said, "Due to the increased demand, the suppliers are charging higher prices. If the demand increases, the suppliers increase the price. So, we also increase it.”
Another trader wishing to remain anonymous said, "There is no control in the baby chicken market. The price of chicken feed and medicine is high. All the impact of production costs has fallen on the market. That’s why buyers are suffering."
Broiler and Sonali chicken prices increase by Tk 10-30 per kg in a week
It was seen from the market that broiler chicken weighing more than 2 kg is being sold at Tk 270 per kg which was sold last week for Tk 205-210. Layer and golden breed chickens are being sold at 310 to 330 per kg, and domestic chickens are being sold at Tk 500 to 550 per kg.
Mohammad Sattar, a chicken seller at Kazi Deuri market, said that the price of chicken may increase further ahead of Eid. The demand for chicken will increase around Eid. Even the suppliers will not be able to meet the demand.
The chicken market was crowded on Saturday. The buyers are buying 5 to 10 kg of chicken before Eid due to the fear of price increases.
Haji Abdul Hamid, a buyer of Riazuddin Bazaar, said, "Every year when Shabbat Qadr comes, the sellers increase the price of meat. The price of chicken has not come under Tk 200 for the last month. So I'm buying a little earlier before Eid."
The poor and middle-class people mostly consume chicken during Ramadan. However, due to the increase of chicken prices in the weeks around Sob-E-Qadr and Eid, it is now out of reach for many families.
Prospects of Safe Broiler Chicken Farming
SM Najer Hossain, Vice President of Consumers Association of Bangladesh (CAB), said that baby chicken prices or feed prices have not increased. So, there is no reason for the abnormal increase in chicken prices. “Due to the lack of proper monitoring by the administration, the buyers are suffering and the syndicate traders are cutting the pockets of the people,” he added.