United News of Bangladesh

The Dhaka Stock Exchange (DSE), the country's main capital market, showed signs of recovery in early trading on Monday, following a five-day losing streak. In the first two hours of trading, share prices of 160 companies increased, while three key indices also posted gains. The DSE saw mixed movement, with 172 companies registering declines and 58 remaining unchanged. According to market sources, the DSEX, the main index of the DSE, rose by 9.79 points, reaching 5,170.52. The DSES Shariah index gained 2.42 points, moving up to 1,158. Meanwhile, the DS30, which tracks blue-chip stocks, climbed 2.48 points to 1,898.74. During this period, transactions worth approximately Tk 160.5 crore were recorded on the DSE.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator, Md. Hafizur Rahman, has called on district chambers to take proactive measures to manage commodity prices and ensure a steady supply of daily necessities. Govt to procure 55,000 MT soybean oil for OMS During an online exchange meeting with district chamber leaders on Sunday, Rahman emphasized the importance of regular market monitoring to effectively control prices. He also urged the chambers to remain vigilant in overseeing local markets.  

The government will procure 55,000 litres of soybean oil for Open Market Sale (OMS) programme. Besides, it will import 50,000 metric tonnes of fertiliser to meet the local demands. Advisers Council Committee on Government Purchase (ACCGB) in a meeting, with Finance Adviser Dr Salehuddin Ahmed in the chair, approved a number proposals from different ministries in this regard. As per a proposal, placed by the Commerce Ministry, its subordinate body the Trading Corporation of Bangladesh (TCB) will purchase the 55,000 litres of soybean oil. Govt slashes VAT on import of edible oil City Edible Oil Limited, a local company, which was selected through an open tender process, will supply the edible oil at a total cost of about Tk 86.84 crore, with each litre at Tk 157.90. Three separate proposals of the Agriculture Ministry received the nod of the Advisers Council Committee for importing a total of 120,000 MT of fertilisers. Of these, the Bangladesh Agriculture Development Corporation (BADC) will import 40,000 MT of DAP fertiliser from Banyan International Trading Limited of China under state level contract at a cost of Tk 294.36 crore, with each MT at $613.25. BADC will import 40,000 MT of DAP fertiliser from OCP of Morocco under a state level contract at a cost of Tk 287.28 crore, with each MT at $598.50. Traders propose waiving duties on soybean, palm oil imports The BADC will import another lot of 40,000 MT of DAP fertiliser from Ma’aden of Saudi Arabia under a state level contract at a cost of Tk 290.88 crore, each MT at $606. The Industries Ministry’s proposal to import 30,000 MT of bulk granular urea fertiliser received the nod of the committee. Bangladesh Chemical Industries Corporation (BCIC) will import the bulk fertiliser from SABIC Agri-nutrients Company of Saudi Arabia at a cost of Tk 129.35 crore, with each MT at $359.33.

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, says Bangladesh Bank (BB) Governor Dr Ahsan H Mansur. “The reserves, which had been depleting by USD 1.3 billion per month under the previous government, are now seeing a more positive trend,” Governor Mansur said in an interview with UNB on Sunday. “A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron,” he said. Less than a month in, new governor returns stability to forex market In the past two months alone, the central bank has successfully reduced deferred payments from USD 2.5 billion to USD 700 million by paying off USD 1.8 billion in outstanding liabilities for energy and other essential services. As of October 8, Bangladesh's foreign exchange reserves stood at USD 19.82 billion as per BPM6 calculations, while the gross reserves reached USD 24.97 billion. He said that the central bank's primary goal is to eliminate the remaining debt within the next two months, aiming for a debt-free status by November-December. “Once achieved, liquidity in the market is expected to improve.” By settling these dues, the financial pressure on the economy is anticipated to ease, allowing economic activities to accelerate. The central bank is preparing to secure an additional USD 10 billion in loans from various international institutions to bolster the economy. Bangladesh forex reserves soar to $19.53bn boosted by remittance The Governor, however, expressed concern over the country’s growing foreign debt, which has now reached USD 103 billion, with repayment pressures steadily increasing. Despite this, he urged patience, suggesting that it will take at least a year to navigate through the current debt challenges successfully.

Six financially weak banks, grappling with liquidity crises, have reportedly received a total of Tk 1,640 crore in loans by three stronger banks. Sources at the Bangladesh Bank said that this step is aimed at alleviating the liquidity constraints faced by the country’s weaker banks and restoring some stability to their operations. According to the sources, the support came from Sonali Bank PLC, Mutual Trust Bank PLC, and Dutch-Bangla Bank PLC. The break-up of the amount they received: First Security Islami Bank Tk 375 crore, Social Islami Bank Tk 300 crore, Union Bank Tk 150 crore, Global Islami Bank Tk 95 crore, National Bank PLC Tk 320 crore and Exim Bank PLC Tk 400 crore. On September 25, Bangladesh Bank’s Governor Dr Ahsan H Mansur held a meeting with the Managing Directors and representatives of 10 strong banks to discuss the provision of loans against the central bank’s guarantee to aid the weaker banks. Read: ACC sues ex-chairman of Samabay Bank Mohiuddin Ahmed, wife These banks are Sonali Bank, BRAC Bank, Eastern Bank, City Bank, Shahjalal Islami Bank, Mutual Trust Bank, Pubali Bank, Dhaka Bank, Dutch-Bangla Bank and Bank Asia. The meeting decided that the stronger banks would be able to claim the loan amounts back from Bangladesh Bank within three days, if requested. The interest rates for these loans will be determined based on the prevailing market rates. Bangladesh Bank is hopeful that these measures will help restore confidence and ensure the stability of the banking sector.

The Association of Travel Agents of Bangladesh (Atab) has put forward a series of proposals aimed at combating corruption in the travel sector and ensuring the effective implementation of policies, guidelines, and laws to prevent money laundering within the industry. At  media briefing titled "Travel Agency Business and Current Scenario" on Saturday at a hotel in the capital Atab President Abdus Salam Aref highlighted  key concerns and urged  the the government to take the necessary measures. Coordination among agencies, structural reforms crucial for SME development: Speakers It proposed formulation of appropriate policies for conduct of Online Travel Agency (OTA) business, providing policies/instructions for group ticketing by stopping air ticket hoarding and syndicates, mandatory mentioning of agency name, contact phone number, ticket price on the ticket, blocking foreign websites/APIs so that they cannot run business illegally from Bangladesh and urgently stop money laundering. Besides, passengers of tickets sold from third countries (other than the country of departure and destination ie. India, Dubai, Singapore) need to be on-boarded at the Bangladesh airport that may prevent ticket sales and money laundering from third countries, it sad. They proposed quick action to stop giving incentives against collecting hundreds of crores of advance money in the name of selling air tickets. In order to prevent possible anarchy and loss of public interest in this regard and to prevent discrimination in trade, travel agencies cannot display, advertise, sell and market tickets at a price lower than the price of airlines, it said. Atab recommended action to stop unregistered fake agencies illegally conducting business, selling air tickets and travel related services. Capital market should be key source of long-term investment: BSEC Chairman It suggested monitoring so that online travel agencies (OTAs) do not issue login IDs to any unlicensed travel agent, tour operator or organization for doing business. Among others, Atab Secretary General Afsia Jannat Saleh, Vice President Mustafizur Rahman Hero, Joint Secretary General Atiqur Rahman, Deputy Secretary General Toaha Chowdhury, Finance Secretary Md. Safiq Uliah Nantu, were also present.    

The National Board of Revenue (NBR) on Thursday issued a gazette notification exempting import duty on sugar and eggs, and import and local VAT on edible oil to increase supply and rein in the prices of these essential commodities. According to an NBR press release, the existing import duty on eggs has been reduced from 25 percent to 5 (five) percent – which will reduce the price of eggs by Tk 13.80 per dozen at the import stage. Govt slashes VAT on import of edible oil Due to the reduction of import duty, the supply of eggs in the market will increase and the price of eggs will be reduced at the consumer level, so it will be more affordable to general consumers, the NBR hopes. It also said that the costs of egg-using industries such as confectionery, bakery, egg-based food producing industry will be cut, returning “relief and balance” to the market. This facility will remain in force till December 15, 2024. In the case of supply of refined soyabean oil and refined palm oil, the NBR press release said that 15 (fifteen) percent VAT imposed at the local production level and 5 (five) percent at the local business level has been exempted and the import level VAT has been fixed at 10 (ten) percent instead of 15 (fifteen) percent for the import of crude soybean oil, crude palm oil, other including refined palm oil and refined soybean oil. Due to the reduction and withdrawal of value added tax at the import stage and at the local level, it will be possible to keep the price of this essential commodity at a tolerable level in the market despite the increase in the price of edible oil in the international market, the NBR said. This facility of edible oil will remain in force till December 15, 2024. On October 8, the existing regulatory duty on refined and unrefined sugar was reduced from 30 percent to 15 (fifteen) percent. The National Board of Revenue (NBR) has reduced the import duty on refined sugar from Tk 6,000 to Tk 4,500 per metric ton within a week to increase the supply of refined sugar in the market. Due to the significant reduction of import duty and regulatory duty on refined sugar, the supply of refined sugar will increase in the market by increasing the import of refined sugar and it will be possible to keep the price of sugar at a tolerable level, the NBR said.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood emphasized on Wednesday that the country’s capital market should be the primary source of long-term financing for investment in Bangladesh's economic future. He stressed the need for collaboration and transparency between the regulatory body and the Dhaka Stock Exchange (DSE), signaling a shift towards a more participatory approach. Chinese firm to invest $5.85 million in Adamjee EPZ “Everyone has a significant role to play in achieving this goal,” Maqsood said during a discussion with the DSE's board of directors. “The BSEC will only intervene in policy matters, ensuring that the relationship between BSEC and DSE remains participatory, transparent, and fair.” The meeting took place at the DSE boardroom, where Maqsood outlined that the BSEC aims to foster a fair and structured approach in its dealings with the stock exchange, rather than imposing unilateral decisions or acting outside the legal framework. All RMG factories except 3 open in Savar, Ashulia, Gazipur The discussion was attended by several high-ranking officials, including BSEC Commissioners Mohsin Chowdhury, Ali Akbar, and Farzana Lalarukh. Leading the DSE delegation was Chairman Mominul Islam, accompanied by members of the DSE Board of Directors.

The Bangladesh Financial Intelligence Unit (BFIU) ordered banks and financial institutions freeze bank accounts of Mojammel Haque Babu, former chief editor of Ekattor Television and president of the Editors Guild, his wife Aparajita Haque, a former lawmaker and their child Sababa Ishayat Haque. The intelligence agency of the central bank issued the directive on Monday. According to a letter from the Bangladesh Bank, all transactions related to the seized accounts will be halted. No transactions will be permitted in these accounts for the next 30 days. The letter also reads that suspension of transactions is in accordance with relevant provisions of anti-money laundering regulations. Read: Mozammel Babu, Shahriar Kabir placed on 7-day remand It includes details such as the names, addresses, and national identification numbers of Babu and his wife, as well as a request for comprehensive information regarding their bank accounts and those of their owned businesses. Mojammel Haque Babu was arrested on September 16 while attempting to cross into India via the Dhobaura border in Mymensingh. Since then, he has been in jail. Read more: Journalists Mozammel Babu, Shyamal Dutta held in Mymensingh while trying to cross the border into India

The Dhaka Chamber of Commerce and Industry (DCCI) believes that the private sector is facing various challenges including devaluation of taka, high inflation, lack of enough foreign exchange, growing lending rate and obstacles in opening LC (Letter of Credit). Ashraf Ahmed, president of DCCI, said this at the discussion titled "Easing the Business System: An International Trade Perspective”, organised by the trade body at its Auditorium on Tuesday. The DCCI president said that the contribution of international trade to GDP is about 25 percent. Restoring confidence in industrial sector crucial for macroeconomic stability, say speakers at DCCI Seminar However, in order to increase this rate further, it is necessary to increase the automation of port and customs operations, increase logistics facilities, reduce the incoordination of related government agencies, improve the balance of payment conditions, increase foreign reserves, and reduce the interest rate of bank loans logically, said Ashraf. Apart from this, Ashraf Ahmed pointed out that business costs are constantly increasing due to the imposition of various types of fines and procedural complications in the importation of the port. He opined that the government is setting an export target of US $57.5 billion for the fiscal year 2024-25, to achieve this target and increase overall exports, automation and facilitation of operations at all ports, ensuring modern facilities, skills training of C&F agents, port and customs house personnel is required. Businesses agree with central bank's steps against bank robbers: DCCI Emphasis should be placed on growth, improvement of land, rail, and water connectivity with ports, and increase in foreign exchange reserves to facilitate international transaction process, he pointed out. Member (Finance) of Civil Aviation Authority of Bangladesh S M Lablur Rahman, Member (Harbor & Marine) of Chittagong Port Authority Commodore M Fazlur Rahman, BSP, psc, BN, Deputy Secretary (Director, Traffic) of Mongla Port Authority Md. Kamal Hossain, Joint Secretary (WTO Wing), Ministry of Commerce Dr. Farhana Iris and Superintendent Engineer of Bangladesh Land Port Authority, Md. Hasan Ali joined the event as a designated discussant. DCCI urges immediate restoration of rule of law, revival of economic activities