United News of Bangladesh

Bangladesh Bank has formulated a new "Exit Policy" aimed at expediting the recovery of defaulted loans. This policy allows both defaulters and non-defaulting business customers to settle their industrial loans by paying off the balance, with specific conditions attached. According to the central bank's new notification, applicants must deposit at least 10 percent of the loan amount upfront to qualify for this facility. Banks have been instructed to develop their own policies in line with the central bank's guidelines, incorporating similar conditions. Under the policy, there will be no change in the quality of the loan until it is fully repaid, and customers utilizing the exit facility will not be eligible for new loans during this period.  Read more: 'Publish list of loan defaulters in parliament': AK Azad "If a businessperson takes this facility, they must repay the entire loan within a maximum of three years. These customers will not be identified as willful defaulters," the notification stated. The central bank noted that borrowers' businesses or projects might incur losses due to uncontrollable factors, leading to hindered debt collection activities and insufficient cash flow for loan repayment. Consequently, such loans are classified as defaults but not as willful defaults. The notification also emphasized that genuine adverse financial conditions can reduce the chances of debt recovery. Therefore, there is a need for a uniform policy to facilitate debt recovery or adjustment through the exit mechanism, as banks have been following varied procedures. In this context, the new policy aims to maintain liquidity flow and reduce defaulted loans in the banking sector. Regular loan exit facilities may be granted for recovering adversely classified loans with poor recovery prospects or in cases where projects or businesses have closed due to uncontrollable reasons. Read more: Process on to prepare list of loan defaulters, finance minister tells Parliament To apply for the facility, borrowers must pay a minimum of 10 percent of the existing loan balance in one-time cash. Banks are required to settle these applications within 60 working days of receipt.

International Chamber of Commerce Bangladesh (ICCB) has hosted a workshop on digitalising international trade, aiming to streamline trade processes through digital transformation. The event, held at a city hotel, saw nearly 200 participants from banks and various organisations on Monday. State Minister for Finance Waseqa Ayesha Khan attended the workshop as chief guest. She highlighted the benefits of digital trade, stating, “Digital records would be instantly and seamlessly transmitted, verified, accessed, and stored, leading to faster and more secure transactions. This would reduce the administrative burden and eliminate errors caused by manual data entry.” The workshop, jointly organised by ICC Bangladesh and the ICC Digital Standards Initiative (DSI), was sponsored by the ADB Trade and Supply Chain Finance Program (TSCFP), the US Department of State, and the International Islamic Trade Finance Corporation (ITFC). Standard Chartered Bank served as the knowledge partner. The state minister emphasised the need for enhanced digital infrastructure to support efficient paperless trade. She assured that the government would draft and approve necessary legislation in consultation with relevant stakeholders. ICC Bangladesh President Mahbubur Rahman underscored the importance of adopting globally recognised digital standards promoted by the ICC DSI. He stated, “By streamlining trade processes and reducing paperwork, we can achieve faster processing times, lower costs, and fewer errors. Embracing technologies such as blockchain and artificial intelligence will keep Bangladesh at the forefront of trade advancements.” The ICC Bangladesh president added that aligning with global standards would ensure Bangladesh’s trade regulations are compatible with international best practices, facilitating easier cross-border operations for businesses. ICC Bangladesh Banking Commission Chairman Muhammad A (Rumee) Ali highlighted the potential of trade digitalization to reduce data mismatches and stressed the importance of cyber security and data protection. The workshop’s opening session was moderated by ICCB Secretary General Ataur Rahman. Key speakers included Pamela Mar of the ICC DSI, Iftekhar Alam of ITFC, Dr. Rupa Chanda of UNESCAP, Edimon Ginting of ADB, and Naser Ezaz Bijoy, vice president, ICC Bangladesh and CEO of Standard Chartered Bank.    

BGMEA president S. M. Mannan (Kochi) has said with strategic location, political stability, growing infrastructure and logistics, Bangladesh is a promising destination for business and investment. He provided an insightful overview of Bangladesh’s vibrant apparel industry, highlighting its strategic shift towards manufacturing high-value woven and man-made fiber (MMF)-based garments. BGMEA, Chinese business delegation explore collaboration opportunities A delegation representing leading Chinese textile and apparel enterprises visited the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sundat to explore collaboration opportunities in the textile and apparel sector. Led by Huang Liansheng, Managing Director of the China Textile Industrial Corporation for Foreign Economic and Technical Cooperation (CTEXIC), the 15-member delegation engaged in fruitful discussions with the leaders of BGMEA including President S. M. Mannan (Kochi), Senior Vice President Khandoker Rafiqul Islam, Vice President Abdullah Hil Rakib and Vice President Rakibul Alam Chowdhury. The meeting focused on exploring investment opportunities, and expanding business horizons between Bangladesh and China in the textile and apparel industry. Mannan (Kochi) highlighted the increasing investment by Bangladeshi manufacturers in technology upgradation to enhance production capabilities and efficiency in manufacturing high-end complex garment items. BGMEA claims all wages and festival bonuses paid to workers  The BGMEA leaders underscored the potential for Chinese investment in high-end textiles and backward linkage industries in Bangladesh, which promise mutual benefits for both nations. They also emphasized China’s support in enhancing capabilities through the exchange of knowledge and technical expertise. Huang Liansheng, Managing Director of CTEXIC, expressed the delegation's purpose during their visit to Bangladesh, emphasizing their interest in assessing the business and investment environment and policies of the country. "During our visit to various factories, we are pleased to witness significant improvements in the working environment in Bangladesh. The workers here exhibit a positive and energetic attitude," he remarked. "Many Chinese companies are eager to explore business and investment opportunities in Bangladesh." Huang Liansheng further said, "We intend to share our positive experiences with other Chinese companies that have not yet ventured into Bangladesh, encouraging them to explore the business potential this country offers." Main proposals of garment sector not reflected in the proposed budget: BGMEA BGMEA Directors Md. Ashikur Rahman (Tuhin), Shams Mahmud, Rajiv Chowdhury, Abrar Hossain Sayem, Md. Jakir Hossain, Md. Nurul Islam, Md. Rezaul Alam (Miru), M. Ahsanul Hoq, Mohammed Rakib AL Naser, and Md. Absar Hossain were present at the meeting.

Discussants at a roundtable today said digitalizing international shipping documents could generate an annual growth of $30-40 billion in global trade. The discussion held at a Dhaka hotel underscored the transformative potential of paperless trade for economies worldwide. Inflation is expected to ease from July: Salman F Rahman International Chamber of Commerce Bangladesh (ICCB) President Mahbubur Rahman, while chairing the discussion, said that digitalization enhances efficiency, reduces costs, and broadens market access. He introduced the Digital Standards Initiative (DSI), a global effort based in Singapore supported by entities such as the Asian Development Bank and the World Trade Organization. “By adopting digital trade solutions, businesses can manage the challenges of international markets more effectively and sustainably. The Digital Standards Initiative (DSI) is a global initiative based in Singapore, backed by an International Governing Board comprising leaders from the International Chamber of Commerce (ICC), Enterprise Singapore, the Asian Development Bank, the World Trade Organisation and the World Customs Organisation,” Rahman said. He said every year, ocean carriers issue about 45 million worth of bills of lading, a crucial shipping document. Many international shipping documents are still not standardized and mostly paper-based, needing physical exchanges. Using electronic bills of lading (eBLs) will speed up transactions, save costs (like reducing administrative expenses for cargo handling and document processing), and reduce fraud risks with digital authentication. ICCB jointly with ICC DSI hosted the discussion with the support from ADB TSCFP along with US Department of State and ITFC of Islamic Development Bank while Standard Chartered Bank was the knowledge partner. Citing a McKinsey study at the event, Rahman said that 100 percent adoption of electronic bills of lading (eBL) could unlock $30-40 billion in global trade growth by reducing trade friction. This shift could also save 28,000 trees annually and significantly cut carbon emissions. He said Bangladesh ratified the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in 2020. He said ICC Bangladesh, in collaboration with ADB and ITFC, is spearheading the DSI initiative in the country. Everyone with a TIN certificate should be under tax net: Salman F Rahman This roundtable marks the first step in introducing DSI, with plans to draft rules and regulations aligned with global digitalization trends by 2027. Lawmaker Salman Fazlur Rahman, Adviser to the Prime Minister for Private Industry and Investment, highlighted Bangladesh's progress in digitalization under the leadership of Prime Minister Sheikh Hasina. He noted the substantial GDP growth and the development of robust digital infrastructure, including optic fiber networks and submarine cables. Salman said one of the most important components of digitalization is interoperability. Highlighting Bangladesh’s success in creating an enabling atmosphere for digitalisation, PM's adviser said Bangladesh is making rapid progress in establishing a digital and cashless society. However successful international digital trade depends on other countries too, he said. “International trade is not only dependent on Bangladesh, but also dependent on the counterparts who also have to make various reforms,” Salman said, adding that there are also some challenges rising from developed countries. “Now we are seeing more and more protectionism, especially from the United States. We are seeing that in Europe too,” he said. Salman added that with the rise of technologies there are growing concerns with cyber defence. He said artificial intelligence is now evolving faster with exponential growth. Regarding the export data mismatch among National Board of Revenue (NBR), Bangladesh Bank (BB) and Export Promotion Bureau (EPB), he said the EPB has double-counted the value of merchandise sent abroad from the export processing zones (EPZs). Edimon Ginting, Country Director, Bangladesh Resident Mission, Asian Development Bank said effective digitalization of trade will increase growth and create jobs by expanding access to global trade networks for developing economies. There are two key impediments that we need to jointly work on and address that include a need for common standards and protocols that will enable effective interoperability among the players in supply chains, from exporters to logistics, customs, warehousing/logistics, finance, etc. and the need to enhance legislation supporting the use and enforceability of key documents in trade. To tackle these two important challenges, ADB, the Government of Singapore, and the International Chamber of Commerce founded the Digital Standards Initiative, or DSI, he said. Rupa Chanda, Director of Trade, Investment, and Innovation Division at UNESCAP, highlighted that digital trade is crucial not only for Bangladesh but also for global trade efficiency and sustainability. She said Bangladesh, in particular, stands to benefit significantly from these advancements. The country could reduce trade costs by 11-12% and gain an additional $0.6 billion in exports by embracing digital trade processes. Iftekhar Alam, Regional Head for South & South East Asia at the International Islamic Trade Finance Corporation (ITFC), spoke about the ongoing efforts to streamline trade, particularly for major cotton-importing countries like Bangladesh. Muhammad A (Rumee) Ali, Chairman of ICC Bangladesh Banking Commission, delivered the welcome address, emphasising the critical role of digitalization in modernizing trade infrastructure. Lawmaker AK Azad, also Vice President of ICC Bangladesh, concluded the event by emphasising the importance of digitalization for reducing operational costs and enhancing trade efficiency as Bangladesh aims to become a middle-income country by 2026. This roundtable showcased a collective commitment to leveraging digitalisation for sustainable economic growth and a more efficient global trade system. Apparel industry pivotal in economic growth but sustainability and ethical practices must be prioritised: Salman F Rahman Pamela Mar, Managing Director, Digital Standard Initiative (DSI), International Chamber of Commerce (ICC) presented the keynote while Mohammad Navid Safiullah, Additional Secretary of Ministry of Commerce, Mursheda Zaman, Joint Secretary, Ministry of Commerce, Md Sarwar Hossain, Director (Foreign Exchange Policy Department) of Bangladesh Bank, Raich Uddin Khan, First Secretary (Customs Automation) National Board of Revenue,  Kutubuddin Ahmed, Member, ICC Bangladesh Executive Board, Naser Ezaz Bijoy, Vice President, ICC Bangladesh and & Chief Executive Officer, Standard Chartered Bank, Md. Saiful Islam, Former President, MCCI, Muhammad Zahangir Alam, CFO, Square Pharmaceuticals Limited also spoke, among others. The roundtable proposed forming a National Committee to collaborate with ICC DSI and create suitable rules for digitising international trade in Bangladesh. The initiative aims to enhance efficiency, transparency, and market access, solidifying Bangladesh's position in the global trade landscape.

Rawhide traders and tannery owners on Sunday sought storage facilities in the regional level including in Natore, Chattagrom, and Dhaka to properly store and  maintain the quality of sacrificial animals’ skin. The demand came from the standing committee meeting of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) at its Motijheel office. The traders said it is possible to eliminate the leather storage crisis quickly by modernizing unused storages in different areas. Young entrepreneurs call for streamlined licensing and govt support at FBCCI meeting Thus a large quantity of sacrificial animal hides will be protected from spoilage, they said. The Standing Committee on Hide and Skin, Leather, Leather Goods, and Artificial Leather organized the meeting. Chairman of the committee and former director of FBCCI Shaheen Ahmed presided over the meeting. Md Saiful Islam, director of FBCCI and former president of the Metropolitan Chamber of Commerce and Industry and the  director-in-charge of the committee, was present. FBCCI seeks enough air cargo to increase exports of fruits, vegetables Senior vice president of FBCCI Md. Amin Helaly was present in the meeting as the chief guest. FBCCI’s directors and leather sector traders  also attended the event.

Bangladesh’s point-to-point food inflation slightly declined to 10.42 percent in June 2024, down from 10.76 percent in May 2024, according to data from the Bangladesh Bureau of Statistics (BBS). The BBS report also indicated a marginal decrease in non-food inflation, which fell to 9.15 percent in June from 9.19 percent in May. Overall, the country’s inflation rate dipped to 9.72 percent in June from 9.89 percent in May. The updated inflation data was released by BBS today. Finance Minister signals dissatisfaction with contractionary policies to curtail inflation An inflation rate of 9.72 percent means consumers now spend Tk 109.72 on goods and services that cost Tk 100 in June of the previous year, reflecting an increased cost of living. This rise disproportionately impacts low and fixed-income individuals, who struggle the most to manage their household expenses amid rising prices. Bangladesh has faced persistent high inflation for the past two years, consistently hovering above 9 percent. Despite various government measures aimed at curbing inflation, these efforts have yet to yield significant results. Bangladesh's economy trapped in “vicious circle,” inflation unlikely to ease soon: Dr. Kholiquzzaman Economists highlight that high inflation remains one of the most pressing challenges for the country’s economy. Dr. Ahsan H. Mansur, Economist and Executive Director of the Policy Research Institute (PRI), commented on the situation, saying, “Inflation acts like a tax, affecting everyone, rich and poor alike. Higher inflation means that poor and middle-class families struggle to increase their incomes sufficiently to support their households. Over the past two years of high inflation, people’s purchasing power has significantly decreased, affecting all aspects of their lives.”

Bangladesh Bank (BB) in an explanation of its actions erasing billions of dollars from the country's export earnings account has said the National Board of Revenue (NBR) and the Export Development Bureau (EPB) are responsible for duplication in export data. As a result, the verification system of the central bank has found duplicate data totaling an estimated $23 billion over 20 months spanning the last two financial years. The BB has given this explanation in an official letter to the government. The letter stated that with this large deficit, various financial statistics of the country have been turned upside down. The current account has gone from surplus to deficit due to a decline in exports. And as the target of repatriated remittances against exports fell, the fiscal account turned from deficit to surplus. In that letter, the central bank said that in a meeting, the representative of NBR had already observed that there are multiple export accounts for exporting the same goods which were imputed as new in the server. Bangladesh Bank collects export earnings data from branches of scheduled banks. As a result, there is not much difference between the data and the actual export. Identifying the reasons for the discrepancy between the export data collected by the BB and published by EPB, the regulator said the same export data and HS code of the product were inputted multiple times. In terms of cutting, making, and trimming of the product, only manufacturing charges are to be paid, but EPB has accounted for all parts including fabric. EPB has sometimes also input the price of the sample product, which is not supposed to come as a price of the sample product, said BB in the letter.    

An international exhibition of jewellery machinery started in Dhaka on Thursday to promote technology integration in traditional jewellery industry to make the country's gold industry an export-oriented one. Bangladesh Jewellers’ Association (BAJUS) in association with Indian partner KNC Services is organising the three-day International Jewellery Machinery Expo, the first of its kind in the country. President of the Federation Bangladesh Chamber of Commerce Industry (FBCCI) Mahbubul Alam on inaugurated the expo as the chief guest. The expo will be open for all from 11 am to 7 pm every day at International Convention City Bashundhara (ICCB) with the theme 'Technology for excellence in jewellery'. Thirty companies from 10 countries, including India, Italy, Turkiye, the United Arab Emirates, Germany, China, and Thailand, are participating in the expo. FBCCI senior vice president Md. Amin Helaly and Chairman of Bashundhara Group Ahmed Akbar Sobhan attended the event as special guests. Indian KNC Services founder and chief executive officer Kranti Nagvekar said her company supported Bangladesh in hosting an international expo after Saudi Arabia, the UAE, and India. "When we roam around the world, we hear compliments about ornaments made by Bangladeshi goldsmiths. When machines add value to the works of goldsmiths, Bangladesh will excel in global gold markets in style," she said. Tishya CNC Engineering Works, Neo Instruments, Solanki Mechanic Works, Ira Corporation, Quantum Equipment, ACZET Solutions, and Pacio Traders from India were the participating companies. Five companies from Bangladesh -- Dreamz Instrument Technology, RAJAISWARI, Expert Instrument Technology, Trust Instrument Bangladesh and RAT's BD -- are participating in the expo.     

Chinese company Unicorn Handbag Limited will invest US $21.85 million to set up a Carry Bag and Luggage manufacturing industry in the BEPZA Economic Zone (EZ). Bangladesh Export Processing Zones Authority (BEPZA) signed a deal with the company to this effect at BEPZA Complex, Dhaka on Wednesday. First-ever Academy for Women Entrepreneurs alumni fair begins in Dhaka In presence of BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, Member (Investment Promotion) of BEPZA Md. Ashraful Kabir and Managing Director of Unicorn Handbag Limited Zheng Shuyong signed the agreement on behalf of their respective sides. This Chinese company will produce annually 1.7 million pcs of backpacks & handbags, wallets, bags, caps, belts, and luggage where 2000 Bangladeshi nationals will get employment opportunities. BGMEA, Chinese business delegation explore collaboration opportunities Welcoming Unicorn Handbag Limited, the BEPZA Executive Chairman hoped that their investment would have a significant impact on Bangladesh's Foreign Direct Investment (FDI) landscape.

The first-ever fair exclusively for Academy for Women Entrepreneurs (AWE) alumni in Bangladesh began on the BRAC University campus on Wednesday. Bren Flanigan, acting Counselor for Public Affairs of the U.S. Embassy, inaugurated the two-day fair. AWE, a global initiative led by the U.S. Department of State, equips aspiring women entrepreneurs with essential knowledge, professional networks, and foundational materials crucial for launching and scaling up successful businesses. U.S. Embassy Dhaka is deeply committed to supporting young aspiring women entrepreneurs, promoting small and medium enterprises (SMEs), and nurturing local women business leaders, especially those from historically underrepresented communities, said a press release.  Thirty-five women entrepreneurs from across Bangladesh, including Sylhet, Khagrachhari, Gaibandha, Chattogram, and Dhaka, are showcasing their innovative products and services at the fair.