United News of Bangladesh

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has requested the government to waive demurrage charges at ports due to delayed delivery of goods over the last five days. Business leaders have also demanded that any new charges not be imposed in the next 15 days till normalcy returns to shipment and import clearance activities at the ports. FBCCI President Mahbubul Alam, in a statement on Wednesday, said that businesses could not conduct export-import activities in the last week because of an internet blackout and countrywide curfew. Businesses need government support to minimize the loss, he added. The call comes as business and economic activities resumed this morning after the government restored broadband internet services in selected areas and relaxed curfew. At present, Chattogram port, which handles almost of Bangladesh’s over USD 100 billion international trade, has been witnessing container congestion amid problems in duty assessment by customs authority, and payments of bills at banks in the absence of internet since July 18 night. SM Mannan Kochi, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) said that the garments sector of the country on average export products worth around Tk 1600 crores. Following the internet blackout and curfew, the RMG sector witnessed a loss of around Tk 8,000 crore, he added. Similarly, production in many factories has been hampered due to delayed shipment of raw materials, he said. The BGMEA president urged the government to take additional measures for quick shipment and delivery from the Chattogram port to keep production in the manufacturing sector uninterrupted.  

Bangladesh Bank will continue its tight monetary policy for the first half of FY 2024-25, keeping all policy interest rates and exchange rate rates unchanged. The new monetary policy announced on Thursday also aimes to cut down inflation by stopping money printing for government spending. The policy has also kept a target of bringing down inflation rate at around 6.5 percent within the FY2024-25. The central bank released the new monetary policy by uploading online on Thursday for the first time as the journalists have been boycotting all the programmes of the BB Governors in protest of banning journalist entry to the central bank headquarters. Usually, the monetary policy is released at a press conference in the presence of the governor, deputy governors, and chief economist of the central bank. They also join question-answer session and explain the different expectations of the monetary policy to the reporters. The interest rate for loans will not increase as the policy keeps the policy interest rate unchanged. The new monetary policy has relaxed imports to bring a pace in the economic activities, which became slow earlier due to tightened imports. In the MPS, the BB has stated that from now on, in the case of importing cars, fruits, flowers, and cosmetics, these products should be imported only by depositing cash against the letter of credit (LC). Apart from this, the issue of advance payment for import of other products will be relaxed. The new monetary policy kept private sector credit growth unchanged. Private sector credit growth has reached 9.8 percent till last June. This rate of growth of private loans has been maintained until next December. On the other hand, the growth of public sector debt stood at 12.8 percent at the end of June. In the new monetary policy, the government debt growth target has been further increased to 14.2 percent. That is, the government has been given the opportunity to take more loans from the banking sector. In addition, the central bank has announced that it will not increase the supply of currency by printing new money (reserve money). Reserve money growth was 7.9 percent in June. The target is set to reduce this growth to 2 percent in December.

Economists and business leaders are calling for a sustainable and peaceful environment in Bangladesh to help navigate the ongoing economic crisis. Experts have highlighted that the country loses nearly Tk 6,500 crore per day due to hartals and blockades. They also point to a combination of factors that have strained the economy over the past two years, including high inflation and interest rates, a shortage of US dollars, a high ratio of non-performing loans in the banking sector, and pressure from external debt repayments. Violent clashes over the quota reform protests by students have further deteriorated the law and order situation, leading to casualties and numerous injuries, they observed. In addition, a shortage of gas and electricity, as well as high taxes and VAT, have impacted both consumers and businesses. Mahbubul Alam, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), emphasized the severe economic impact of unrest. “The economy is losing Tk 6,500 crores a day because of hartals and blockades,” he told UNB. “We repeatedly urge political parties, students, and the general public to avoid activities that cause financial loss and create public suffering.” Eminent economist and distinguished fellow at the Centre for Policy Dialogue (CPD), Dr. Debapriya Bhattacharya commented on the multi-faceted crises facing Bangladesh’s economy. The student protests are fueling the economic crisis, and the country is experiencing a multi-dimensional image crisis, he said. The long-term effects of this unrest on people’s lives are significant and cannot be quantified in figures alone, he added. The economist noted that international business groups and global buyers become wary during periods of instability, often redirecting their orders and investments to more stable regions. When a major global buyer shifts orders from a country, smaller buyers tend to follow, he added. Noted economist Dr. Ahsan H. Mansur also stressed the need for a sustainable and peaceful environment to overcome the financial crisis. The right decisions from the country’s top leadership are required to resolve the unrest and restore Bangladesh’s image, he said.  

The Ministry of Finance on Tuesday issued an explanatory note saying that the recent revision of export data would leave no impact on GDP data or disbursed incentives on export. The Finance Ministry said that the Bangladesh Bureau of Statistics (BBS) calculates GDP growth based on Bangladesh Bank data and similarly the export incentive disbursed by the central bank against repatriation of export proceeds. Before the disbursement of incentive, the central bank audits export information by a third-party audit farm. In both cases, the central bank data that has been used is authentic. As a result, the recent fears of a fall in the report published in newspapers and consequent decline in GDP and per capita income are not correct, said the Ministry of Finance. The Ministry also said that steps have been taken to coordinate the export data of the National Board of Revenue (NBR) and Bangladesh Bank, streamlining the method used in data collection by all the concerned agencies. As a result, it is expected that there will be no significant difference in the export data published by Bangladesh Bank, National Board of Revenue, and Export Development Bureau from now on.

Mahbubul Alam, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), has emphatically called for the swift implementation of the Bangladesh Single Window (BSW) project to streamline trade processes in the country. FBCCI seeks stronger trade and economic ties with China during meeting in Beijing He made the demand while speaking as the chief guest at a workshop titled "Bangladesh Single Window - Journey towards Seamless Trade," held at the FBCCI office in Motijheel on Monday. "As the volume of the country’s economy grows, implementing the BSW is crucial for trade expansion,” the FBCCI president said. "This system will increase revenue and reduce the difficulties faced by businesses." Young entrepreneurs call for streamlined licensing and govt support at FBCCI meeting He highlighted that the BSW would lower the cost of doing business and enhance the investment-friendly environment. "Through this system, traders will access all trade-related information from a single platform, and all necessary licenses can be obtained from one place," he explained. During the workshop, organizers noted that the trade portal and trade registration module of the BSW have already been completed. The registration process for C&F (Clearing and Forwarding) agents will become effective in the next two weeks. Additionally, the Directorate of Drug Administration, Directorate of Environment, and CLP (Customs, Licensing, and Permits) processing have commenced. The registration process for other organizations and CLP activities will start soon. FBCCI seeks enough air cargo to increase exports of fruits, vegetables BSW Project Director ABM Shafiqur Rahman announced that 19 agencies providing various licensing services will be integrated into the BSW system initially. The work on creating the BSW portal has been completed, and it is planned to be operational by December, Rahman said.

Bangladesh's multinational electronics company 'Walton Hi-Tech Industries PLC.' has received ‘National Export Trophy's gold crest in recognition of its outstanding contribution to the exports of electrical and electronics products during the financial year 2021-2022. A total of 77 companies in 32 product categories were awarded gold, silver and bronze crest of 'National Export Trophy' at a programme held at the Osmani Memorial Auditorium in the capital on Sunday, said a media statement. Among them, Walton was awarded the gold crest in the electric and electronics product export category. PRAN-RFL bags seven national export trophies Attending as the chief guest, Prime Minister Sheikh Hasina handed over the gold crest of Bangabandhu Sheikh Mujib Export Trophy' to Walton Hi-Tech Industries PLC's Former Chairman and Incumbent Director S M Nurul Alam Rezvi. Tipu Munshi, president of the parliamentary standing committee on commerce ministry, also attended the function as special guest while State Minister for Commerce Ahasanul Islam Titu was in the chair. Among others, Export Promotion Bureau (EPB) Vice-Chairman Md. Anwar Hossain, Commerce Secretary Md. Selim Uddin and FBCCI President Mahbubul Alam were also present. Expressing his reaction, Walton’s Former Chairman and Incumbent Director S M Nurul Alam Rezvi said, “Once the domestic electrical and electronics market was fully import-oriented. But now, 'Made in Bangladesh' labelled electrical and electronics products are being exported to more than 40 countries around the world. Undoubtedly, it's a great pride for us. As a recognition of this achievement, Walton was awarded National Export Trophy. We thank the authorities concerned for giving us this award.” Walton pays Tk 3.93 crore to govt workers welfare fund He also said that Walton made a bright future of Bangladesh in manufacturing hi-tech products. Walton is exporting ‘Made in Bangladesh’ labelled electronics and electrical products to over 40 countries, including countries in Asia, Middle East, Africa, Europe and America, brightening Bangladesh’ image to the global arena.

DCCI President Ashraf Ahmed urged the government to streamline tax mechanism which will promote better understanding, easier compliance and reduce time, visit and cost.  Tax calculation for the corporates should be in line with the accounting standards and to encourage, compliant businesses can be rewarded in some cases, he said.  He said these at a workshop on Customs, VAT and Income Tax Management at DCCI on Saturday to inform various changes in the relevant acts came in the latest budget 2024-25 to the professionals of member organizations of DCCI.  Dhaka Chamber of Commerce & Industry (DCCI)  arranged a he event. Commissioner (Customs, excise and VAT Commissionerate, Dhaka East), NBR Md. Zakir Hossain, Adviser to the DCCI standing committee on Customs, VAT and NBR related issues Snehasish Barua, FCA, and Vice President of ICAB MBM Lutful Hadi, FCA presented the papers.   A transparent and accountable revenue system will expedite tax net as well as reduce hassle, Ashraf Ahmed said. He also said that there are a good number of positive things in the VAT act, Income tax act and customs act, he therefore suggested to practice those in practical.   Commissioner (Customs, excise and VAT Commissionerate, Dhaka East), NBR Md. Zakir Hossain said that no fundamental changes have been made in the new VAT act, but two changes have been made in regard to the working procedure of NBR.  He said that with a view to increasing the revenue collection target, the pressure on all categories of tax payers including VAT paying companies will slightly increase to some extent, but to avail various rebate facilities in the existing VAT act, he requested businesses to have better understanding of the VAT act. Adviser to the DCCI standing committee on Customs, VAT and NBR related issues and Partner, Snehasish Mahmud & Co. Snehasish Barua, FCA said that the NBR's revenue collection target for the current fiscal year is Tk 4 lakh 80 thousand crore, which is about 17 percent more than the previous fiscal year.  He said, in order to expedite industrialization across the country, the import duty should be reduced to boost the economy.  He emphasized on ensuring a sustainable revenue system considering the overall condition of the country's economy. Vice President of ICAB MBM Lutful Hadi, FCA said the new customs act is introduced to reduce the cost of doing business and urged the government to implement the act properly. About 90 representatives of DCCI’s member organizations participated in the workshop and they have got a clear understanding regarding new changes of rules and procedures that would help their respective organizations to calculate according to the law. DCCI Vice President Md. Junaed Ibna Ali, Directors Kamrul Hasan Tuhin and M. Mosharraf Hossain were also present.

For the first time, Bangladesh are participating in the Malaysia International Machinery Fair. The 35th edition of the fair is being held at Malaysia International Trade and Exhibition Centre in Kuala Lumpur, the Malaysian capital from July 11-13. Bangladesh is participating in the 35th Malaysia International Machinery Fair under the initiative of Bangladesh High Commission in Kuala Lumpur, said a press release on Friday. Some 780 companies and firms from 10 countries including Bangladesh are participating in the three-day fair. Other participating countries are China, Germany, South Korea, Indonesia, Taiwan, Iran, Japan, India, Hong Kong and Singapore. Bangladesh high commissioner to Malaysia Shameem Ahsan on Friday visited the Bangladeshi stalls in the fair and exchanged views with the businessmen and visitors of the stalls. Talking to Bangladeshi expatriate journalists in the fair, the high commissioner expressed he is optimism that the first time participation of Bangladesh in this important fair amid the growing demand of Bangladeshi products would open the door of opportunity for the creation of a market for Bangladeshi new products in Malaysia. The Bangladesh High Commission in Kuala Lumpur regularly participates in various important international trade fairs following the 'economic diplomacy' of Prime Minister Sheikh Hasina as part of the country’s export diversification.

Air Astra – the newest airline in Bangladesh, launched its frequent flyer program, ORBIT, on Thursday. The event was inaugurated by Rubaba Dowla – prominent corporate personality and country managing director of Oracle Bangladesh held in Dhaka, according to a media release. Imran Asif, CEO and Sohail Majid, CCO of the airline were also present among others at this milestone event of the airline. ORBIT has been uniquely designed to cater to its loyal customers through a tiered membership structure – Eco, Evo, and Pro. Passengers travelling frequently with Air Astra will accumulate mileage and redeem them for a range of rewards both from the airline’s privileged services (free flights, priority check-in, additional free baggage allowance, etc.) as well as on the airline’s partners’ services including hotels, fashion & lifestyle brands, restaurants & cafés, etc. for exclusive perks and benefits. Air Astra offers 10% discount on tickets purchased using Nagad To celebrate the launch and to welcome new members, Air Astra is offering a welcome kit which includes discount & benefit vouchers from 10 leading brands across a diverse portfolio of industries – Sharetrip, GoZayaan, Shahrukh Amin, Twelve Clothing, Apex Footwear, Mana Bay Water Park, Sea Pearl Water Park, Secret Recipe, Red by Afroza Parveen, and Foy’s Lake Resort – offering ORBIT members savings on travel, shopping, dining and entertainment. Joining ORBIT is simple convenient – passengers can register through the website or mobile app of Air Astra, or through filling up forms at airport check-in counters or onboard the flights during their journeys. Air Astra currently operates 14 daily flights from its base in Dhaka to Cox’s Bazar, Chattogram, Saidpur and Sylhet.  Air Astra expands route network to Sylhet The airline’s current fleet comprises of 4x modern, French-built ATR72-600 aircraft.  International flights to new destinations shall be launched soon with an expanded fleet of new aircraft offering world-class convenience and comfort, read the release.

The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) seeks stronger trade and economic ties with China during a meeting with Chinese business leaders in Beijing. The FBCCI seeks more enhanced collaboration during meetings with its Chinese counterpart, the China Council for the Promotion of International Trade (CCPIT), and the China Chamber of International Commerce (CCOIC). FBCCI President Mahbubul Alam made this call in a meeting with the leaders of CCPIT and CCOIC held on Tuesday (July 9) in the China World Summit Wing, Shangri-La Circle, in Beijing. During the meeting, FBCCI President Mahbubul extended an invitation to Chinese businessmen to invest in Bangladesh, emphasizing the array of facilities and incentives available for the foreign investors. Highlighting Bangladesh's robust infrastructural development, strategic location, and favorable business policies, the FBCCI President assured the Chinese Business Leaders that Bangladesh offers a conducive environment for investment and FBCCI will provide all kinds of support to the Chinese investors to facilitate their business in Bangladesh. The Special economic zones, tax exemptions, and skilled workforce are the key advantages that make Bangladesh a lucrative destination for Chinese ventures, he added. The FBCCI President stressed the potential for future collaborations with the CCPIT and CCOIC in several sectors, including Information Technology, Garments, Textiles, Light Engineering, and joint research initiatives to explore market opportunities. FBCCI President also sought support from Chinese businesses for technology transfer. The FBCCI President also invited Chinese Investors to visit Bangladesh in the near future. During his speech, the Secretary General of CCPIT Sun Xiao appreciated the recent infrastructural development of Bangladesh. He highlighted CCPIT's work on building a global corridor to facilitate seamless trade and investment flows, reinforcing the mutual benefits of a strengthened economic partnership between China and Bangladesh. Business Leaders of FBCCI, CCPIT and CCOIC reaffirmed their commitment for deeper economic collaboration, promising growth and prosperity for both Bangladesh and China. Among others, FBCCI Vice President Khairul Huda Chopol, Shomi Kaiser, Rashadul Hossain Chowdhury (Ronni), Joshoda Jibon Deb Nath, DCCI President Ashraf Ahmed, MCCI President Kamran T. Ahmad, Former Vice President Md. Habib Ullah Dawn, FBCCI Director Mohammad Ali Khokon, Dilip Kumar Agarwala, Former FBCCI Director Ghulam Mohammed Alomgir, Director General of CCOIC Xu Jinli Director of CCPIT Zhu Yingmin, CCPIT Zhao Xin, and others were present at the meeting.