Business
Govt to import 3 cargoes of LNG to raise gas supply
The government will import 3 cargoes of liquefied natural gas (LNG) as part of its move to raise the gas supply to meet the growing demand.
Cabinet Committee on Government Purchase (CCGP) in a meeting approved three separate proposals of state-owned Petrobangla.
Finance Minister Abul Hassan Mahmood Ali presided over the meeting while the Energy and Mineral Resources Division moved the proposals under the Speedy Increase of the Supply of Power and Energy Act, 2010, on behalf of its subordinate body.
As per the proposals, Switzerland-based Total Energy and Power Ltd will supply an LNG cargo at a cost of Tk 427.77 crore with each unit at $9.89 while Singapore-based Gunvor Group will supply an LNG cargo at a cost of Tk 410.65 crore with each unit at $9.65.
The remaining LNG cargo will be supplied by Vitol Asia (Pte) Ltd, Singapore at a cost of Tk 418.59 crore with each unit LNG at $9.68.
LPG price slashed by Tk 3.34 per kg
The Bangladesh Energy Regulatory Commission (BERC) on Wednesday lowered the price of liquefied petroleum gas (LPG) by Tk 3.34 per kg, setting the new rate at 120.18 per kg, down from previous Tk 123.52.
This price change will be effective from 6:00pm today, indicating a decrease in household and commercial expenses.
BERC at a press briefing said that the price for a standard 12kg LPG cylinder will now be Tk 1442, down by Tk 40 from the previous price of Tk 1,482.
This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5kg to 45kg, addressing the need for a proportional price revision across different consumer segments.
Furthermore, the price for "auto gas", the LPG variant used in motor vehicles, has also seen a lower rate at Tk 66.21 instead of the previous price of Tk 67.68 per litre.
Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company's minimal market share, which is less than five percent.
The decision to adjust LPG prices comes in the wake of declining costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East.
Export earnings exceed $5 billion for fourth straight month in March
Bangladesh exported goods worth $5.10 billion in March 2024, a growth of 9.88 percent over the same month last year, according to data of the Export Promotion Bureau (EPB) released on Tuesday.
It was the fourth straight month that Bangladesh's exports earned above $5 billion, i.e. since December.
Exports robust, August earnings rise to $4.78 billion
In the current fiscal year 2023-24, Bangladesh exported goods worth $43.55 billion in 9 months, up 4.39 percent on the same period of the last fiscal year.
According to EPB data, exports of ready-made garments, agro-processed products, and plastic products have increased so far in the current fiscal year.
Bangladesh earned $50.52 billion from exports in 11 months of FY23: EPB
On the other hand, exports of leather and leather products, jute and jute products, home textiles, and engineering products have declined.
As a result, the growth rate of overall product exports is slightly lower.
Bangladesh’s exports worth $4.60bn in Aug, up by 36.18%: EPB data
From July to March of FY 24, ready-made garments worth $37.20 billion have been exported. This export is 5.53 percent more than the same period last year. Garments remains 85% of total exports
Apart from this, leather and leather products worth $790 million have been exported. This export is 13.65 percent less than the same period of last fiscal year.
In the last fiscal year 2022-23, a total of $55.56 billion worth of products were exported. In the current financial year, the government has set a target of $60 billion for export of goods.
However, despite the growth of exports in recent months, at the end of March, the export of goods is 5.86 percent behind the target.
Bank mergers could be counterproductive without international best practices: World Bank
The World Bank said that without assessing asset quality, the forced initiative of bank mergers might be counterproductive.
The World Bank said this at a press conference in its Dhaka office at the launch of "Bangladesh Development Update" on Tuesday.
No Padma Bank employee will lose job: Exim Bank Chairman says after signing merger
“A consolidation process will require careful assessment and prudent implementation of procedures to avoid weakening good banks and acquiring bad banks; an assessment of the asset quality of weak banks will be required,” said the World Bank.
World Bank Country Director for Bangladesh and Bhutan, Abdoulaye Seck, its Chief Economist for South Asia Region, Franziska Ohnsorge, and its Senior Economists, Bernard James Haven and Rangeet Ghosh, spoke at the event.
Padma, Exim Bank to sign MoU for merger Monday
The observation comes weeks after Shariah-based Exim Bank agreed to take over the stressed Padma Bank as part of the Bangladesh Bank's plan to rein in the runaway defaulted loans to a reasonable level and bring good governance to the banking sector.
The WB said before initiating any merger processes, detailed guidelines on mergers and acquisitions need to be issued, giving banks a clear idea of the process involved.
Weak banks could merge with good ones by Dec, or central bank to decide their fate
Such guidelines can be based on international best practices and provide alternative merger mechanisms for banks to choose from depending on the status of the banks or non-bank financial institutions deciding to merge.
Bank mergers will also require an evaluation of internal systems, branch networks, staffing levels, the adequacy of management arrangements, impacts on banks' cross-border business, and international risk ratings, a World Bank observation said.
BGMEA launches ‘Khalilur Rahman Knowledge Center’
In an effort to boost the competitiveness of Bangladesh’s garment industry, BGMEA on Tuesday launched the ‘Khalilur Rahman Knowledge Center’ at its headquarters in Dhaka on Tuesday.
BGMEA President Faruque Hassan inaugurated ‘Khalilur Rahman Knowledge Center’ in presence of Khalilur Rahman’s daughter Nasreen Subhan, son architect Nahas Ahmed Khalil and daughter-in-law Rupa Sayef.The BGMEA has recognized the importance of continuous learning and innovation in navigating the evolving landscape of global market trends, said a press release.
BGMEA president seeks embassy’s support in attracting Italy’s investment
As the apex trade body representing the RMG sector in Bangladesh, BGMEA endeavors to equip industry stakeholders with the requisite knowledge, skills, and technical know-how to tackle future challenges effectively.
Named in honor of the late Major General Khalilur Rahman (Retd), former president of BGMEA, the knowledge center stands as a tribute to his significant contributions that have been instrumental in the development of Bangladesh’s apparel sector.
BGMEA president visits Adamjee EPZ; seeks comprehensive support for factories
At the inauguration ceremony, BGMEA President emphasized the imperative of continuous knowledge enhancement for fostering competitiveness and sustainable growth within the RMG industry.
He underscored the pivotal role that the knowledge center will play in disseminating industry-relevant knowledge and enhancing its overall competitiveness.
Equipped with state-of-the-art digital devices, the Khalilur Rahman Knowledge Center will serve as a hub for learning and collaboration, facilitating training sessions, seminars, and workshops.
Through its digitally-enabled platform, industry experts, academia, and professionals from across the globe will have the opportunity to engage virtually, exchanging insights and expertise on current and emerging business issues, as well as advancements in industry-related technologies.
March sees 7.77% decline in remittance, despite pre-Eid expectations
Bangladesh witnessed a notable decrease in inward remittances by 7.77% to US$1.99 billion in March, deviating from the expected increase ahead of Eid, according to the latest data released by Bangladesh Bank on Monday.
This decline comes as a surprise, especially since February recorded a high of $2.16 billion in remittances from Bangladeshis living abroad, marking an eight-month peak.
Bangladesh received $1.93 billion of remittance in November: BB
The usual trend sees a spike in remittances as expatriates send more money home to support their families during Eid. However, this period has shown an unexpected downturn.
Industry insiders attribute the fall to an increase in remittances sent through unofficial channels, or Hundi, prompted by more favorable exchange rates for the US dollar outside the formal banking system.
Bangladesh received $2.16 billion remittances in February, highest in fiscal
Economist Dr. Ahsan H. Mansur highlighted that remitters are opting for Hundi, where the exchange rate is Tk 5 to 7 higher per US dollar, over official channels. This shift has sparked concerns about the impact on the country's foreign exchange reserves.
Bangladesh Bank's executive director and spokesperson, Md Mezbaul Haque, remarked that despite the dip in March, the flow of inward remittances has risen through legal channels due to governmental and banking incentives.
Inward remittances rose just under 3% from previous year in 2023
Haque remains optimistic that remittance figures will rebound in April, citing measures taken by the central bank to encourage remittances through formal avenues. These include directives for banks to offer additional incentives from their resources, complementing the government's existing 2.5% incentive on expatriates' incomes.
"By allowing banks to purchase dollars at an additional 2.5% higher rate, we aim to make the legal channels more attractive for sending remittances," stated Mezbaul, underscoring efforts to counter the reliance on informal remittance routes and stabilize the remittance inflow.
Grameenphone introduces Eid offers to propel Smartphone adoption for all
Grameenphone, the connectivity partner to Smart Bangladesh, is amplifying the joy of Eid for its customers by introducing exclusive internet bundle offers alongside the purchase of authorized new 4G & 5G smartphones, enriching customers’ digital lifestyles.
To accelerate connectivity access, digital inclusion and the journey towards a ‘Smart Bangladesh’, Grameenphone collaborated with the top 10 smartphone partners to empower and build a nation of smart citizens. With this latest offer, Grameenphone users will enjoy a 6-month free internet package, and a 1-month subscription to premium OTT platforms with the purchase of a new smartphone.
As a key enabler of Smart Bangladesh, Grameenphone recognizes the pivotal role smartphones play in shaping a digital way of life to empower smart citizens.
The company believes in the transformative power of the internet, whether it’s for everyday necessities, education or healthcare to improve their lives.
Biman holds 'Meet the Press' in Italy’s Naples to promote its Rome-Dhaka flight
To accelerate smartphone adoption across the nation and realize the vision of Smart Bangladesh by 2041, Grameenphone has unveiled these exciting offers.
Customers can avail of this 6-month free internet bonanza by purchasing smartphones from any outlets of the leading brands such as Samsung, Xiaomi, VIVO, OPPO, Realme, Nokia, Tecno, Itel, Infinix, Symphony, as well as GP branded modems and routers.
Additionally, subscribers will enjoy 30-day complimentary subscriptions to leading streaming platforms such as Hoichoi, Chorki, and SonyLiv.
This comprehensive offer provides customers with both connectivity and entertainment options. Mohammad Sajjad Hasib, Chief Marketing Officer, Grameenphone, said, “Connectivity plays a crucial role in driving economic transformation. The four pillars of the Smart Bangladesh vision- smart citizen, smart economy, smart government, and smart society - all rely on digital connectivity. At Grameenphone, we recognize the essential role of smartphone penetration in achieving digital transformation. Our purpose is to connect people to what matters most to them, and we believe our collaboration with leading smartphone brands will ensure inclusivity in the journey towards a digitally connected society. Grameenphone is dedicated to empowering individuals with the power of connectivity, and this Eid, we wish to share joy and happiness with our customers with delightful offers in collaboration with our partners. Together, we aim to make the celebration even more vibrant and memorable for our valued customers.”
GP hosts Iftar event in Rangpur for GPStar customers
During the campaign, customers who purchase a smartphone will be eligible for 26GB of free internet with a 7-day validity for 6 months. Additionally, they will enjoy a 30-day free subscription to a premium OTT service for their first-time usage. Upon purchase, customers will receive an initial allocation of 4GB regular internet and 2GB streaming internet, both valid for 7 days.
They will also gain access to premium OTT services for a full month, allowing them to enjoy a wide range of exclusive content. From the second month until the sixth month, customers will continue receiving 2GB regular internet and 2GB streaming internet, both valid for 7 days.
'Pocket' wallet, BAJUS sign MoU to provide financial services
Bangladesh Jewellers' Association (BAJUS) and Payment Service Provider (PSP) Pocket of ABG Technologies Limited signed a memorandum of understanding on Monday.
Bajus General Secretary Badal Chandra Roy and ABG Technologies Limited Director Mostafa Azad Mohiuddin signed the MoU on behalf of their respective sides.
BGMEA president seeks embassy’s support in attracting Italy’s investment
The signing ceremony was held at the Bajus office in Bashundhara City Shopping Complex in the capital. Leaders and officials of both the organisatios were present.
According to pocket Authority, Pocket e-wallet has a modern and customer-friendly mobile app, through which customers can easily make sure fast payments.
Stock markets end on high note Sunday amid price increase
BGMEA president seeks embassy’s support in attracting Italy’s investment
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan paid a courtesy call on Monirul Islam, Ambassador of Bangladesh to Italy, at the embassy in Rome.
Embassy officials including Economic Counsellor Md. Al Amin and First Secretary (Labour) Ashif Anam Siddique were also present during the meeting.
The discussions centered on the significant trade and investment opportunities between Bangladesh and Italy, with a particular focus on increasing Bangladeshi garment exports to Italy, especially high-value fashion products.
President Faruque provided an overview of Bangladesh apparel industry’s current state, future potential and vision.
He highlighted the industry’s growing shift from basic to high-end products, particularly the fashion items based on man-made fibers and technical textiles.
Since the demand for high-end garments is significant in the Italian market, there is a considerable opportunity for Bangladesh to export such goods to Italy, he observed.
He emphasised the potential investment sectors for Italian investors, including non-cotton textiles, food and agro-processing, IT, light engineering, leather, and shipbuilding.
The BGMEA leader sought the support from the Embassy to promote bilateral trade and investment, especially attracting investments from Italy in the promising industrial sectors in Bangladesh.
Highlighting the direct flight between Dhaka and Rome, Faruque emphasised its significance in enhancing business communication.
He called upon the envoy to streamline consular services and simplify the visa obtaining process for businessmen, with the aim of fostering increased business interactions.
The BGMEA president called on Ambassador Monirul Islam to facilitate collaboration between BGMEA University of Fashion and Technology (BUFT) and fashion institutes in Italy to enhance the skills of BUFT students.
Amid lower govt spending relative to GDP, Bangladesh plans increased investment to stimulate pvt sector
Bangladesh's Finance Ministry is tackling what it identifies as one of its most formidable challenges: significantly amplifying public expenditure to catalyse sustained growth within the private sector.
An official document from the ministry underscores that, in comparison to other economies, Bangladesh's government spending as a percentage of GDP markedly trails, thereby emphasising the urgency to augment investment.
Data from the World Economic Forum and the IMF (as of April 2023), reveal Bangladesh's public expenditure at 13.1% of its GDP, a figure that stands in stark contrast to countries like France at 58.5%, Sweden at 46.8%, and even neighbouring India at 28.8%. This discrepancy highlights the room for growth in Bangladesh's fiscal strategy.
The government, aiming to elevate GDP growth and living standards, views the expansion of its expenditure as crucial. This ambition is supported by the progressive implementation of reforms in Public Financial Management. Historically, the government has gradually increased its spending relative to GDP, signaling a positive trajectory.
Interest rate for April set at 13.55%, for consumer loans add 1%
Outlined in the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)' from the Finance Division, the government's medium-term strategy is geared towards securing inclusive and high growth. This strategy is aligned with Bangladesh's Vision 2041, the 8th Five Year Plan, and the Sustainable Development Goals (SDGs), focusing on priority sectors including infrastructure, industrial production, food security, job creation, healthcare, and education among others.
In anticipation of the demands of the Fourth Industrial Revolution (4IR), significant allocations have been dedicated to human resource development, particularly in education and skills training. The fiscal projections set public expenditure targets at 15.2% for the 2023-24 fiscal year, 15.4% for 2024-25, and 16.2% for 2025-26.
The document further highlights Bangladesh's progression to a lower-middle-income country, with aspirations to attain upper-middle-income status by 2031. This ambition aligns with the developmental targets set within the 8th Five Year Plan and reflects the government's commitment to resuming the rapid economic growth witnessed pre-COVID-19 and pre-Russia-Ukraine war.
Banks to remain open on April 5, 6, and 7 for payment of garment workers’ salary, bonus
In response to the COVID-19 pandemic, the government prioritised life and livelihood protection, adopting an expansionary fiscal policy and channeling additional funds into critical sectors.
Despite the global political and economic instability, these measures have begun to show promise, with expectations of returning to pre-pandemic growth levels and policies aimed at promoting pro-poor and inclusive growth.
As Bangladesh looks forward, the Finance Ministry is set on formulating strategies to enhance pro-poor growth, stimulate both domestic and international private investment, bolster public investment, curb inflation, generate employment, and alleviate the balance of payment pressures. These objectives underscore a holistic approach to not only recovering from recent global challenges but also setting a solid foundation for long-term, sustainable development.