Business
Switzerland keen to invest in Bangladesh’s disaster-prone areas
Switzerland has shown its keen interest to invest in the climate vulnerable areas of Bangladesh to reduce the risk of natural disasters.
Ambassador of Switzerland to Bangladesh Nathalie Chuard conveyed the interest during a courtesy call on Fisheries and Livestock Minister SM Rezaul Karim at Bangladesh Secretariat on Wednesday.
The Swiss envoy said her country wants to work in various sectors in Bangladesh for economic development from 2022 to 2025 marking the celebration of 50 years of cooperation between the two countries.
Read Bangladesh is a model country in disaster management: Hasina
“Switzerland wants to accelerate activities to face the challenges and impacts of climate change in the disaster-prone areas. We want to invest in the climate risk areas for adoption of the climate change and reduce the risk from it,” she said.
The envoy said Bangladesh has graduated from the least developed country status to a developing nation. Switzerland wants to contribute here. Some government and private organisations are interested to invest in the disaster-prone islands.
In response, the minister said both countries can exchange experiences in any field for mutual benefit. He suggested formation of a Joint Working Group to expand cooperation.
Read: Swiss Ambassador Chuard sees “massive potential” to boost trade, investment with Bangladesh
Minister Rezaul said, “Natural resources are very important for the economic development and growth of our GDP. Prime Minister Sheikh Hasina has adopted the Delta Plan for development for 100 years and she has already formed Delta Governance Council. We are using natural resources for the development of the country and meeting the demand for food and nutrition. Bangladesh has already made unexpected changes in agriculture, fisheries, and livestock sectors due to various initiatives taken by the government.”
Workers' well-being: BGMEA encourages dialogue
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan has highlighted the apparel industry’s committed efforts in the area of workers’ rights, well-being and freedom of association.
“We believe in dialogue and discussion, and the ILO-SDIR project has significantly contributed to creating a congenial environment for dialogues,” he said.
Director of Training, ITCILO Andreas Klemmer met Faruque Hassan at his office on Saturday and discussed the issues of mutual interest.
Read: Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
The International Training Centre of the International Labour Organization (ITCILO) is the training arm of the ILO.
The BGMEA President thanked the ITC-ILO for their continuous support to Bangladesh’s RMG industry over the last few years, which has helped the industry to develop a harmonious industrial relation.
Neeran Ramjuthan, Programme Manager, Labour Administration and Working Conditions Cluster, ILO Bangladesh, and S M Borhan Uddin, Programme Officer, Governance, Social Dialogue and Industrial Relations (SDIR) Project ILO Country Office for Bangladesh were also present on the occasion.
Read BGMEA, Deshifarmer to offer fresh food to RMG workers at fair prices
Miran Ali, Vice President of BGMEA, and ANM Saifuddin, Chair of BGMEA Standing Committee on ILO also attended the meeting.
They discussed various issues including the role of IRI (Industrial Relations Institute) as per BLA (Bangladesh Labour Law) and BLR (Bangladesh Labour Rules), in support of the capacity building of employers and workers’ representatives on issues related to industrial relations, the existing training package offered by IRI and its effectiveness, BGMEA said on Sunday.
ANM Saifuddin, Labour Affairs and ILO, briefed them about the effectiveness of the IRI and praised the initiative, also recommended making it more functional through tripartite collaboration between employers, workers, and government organizations.
Read BGMEA wants faster, smoother security clearance services for RMG
Monetary policy: BB seeks curbing money flow, inflation
Bangladesh Bank on Thursday unveiled the monetary policy for new fiscal year raising policy rate and slashing private sector credit growth to check inflation through tightening money flow in the market.
The policy rate also known as repo rate has been increased to 5.50 per cent from 5 per cent in the new monetary policy.
Private sector credit growth ceiling has been set at 14.1 per cent for the fiscal year 2022-23 down from 14.8 per cent of the outgoing fiscal year.
BB governor Fazle Kabir announced the policy on the last working day of his over 6-year tenure, on Thursday afternoon at Jahangir Alam Conference Hall of the central bank.
Deputy Governors, chief economist, executive directors and head of Bangladesh Financial Intelligence Unit (BFIU) and other senior officials of BB were present in the event
Kabir said that the central bank has taken a cautious policy stance with a tightening bias in the new monetary policy.
Read: BB will announce new monetary policy on June 30
It will introduce a new refinance scheme with subsidised interest rate to increase domestic production of import-substitution for saving foreign exchange reserves, he said.
“There are many products we can make in the country. The present global geopolitical issues and the Russia-Ukraine war are working as an external element for inflation and supply chain disruption. We can face the situation by enhancing domestic agro production,” Kabir said.
The LC margins for luxury goods, fruits, non-cereal foods, canned and processed foods will be increased comprehensively by 75 per cent to 100 per cent to discourage their imports.
BB will continue its support to implement the government's ongoing stimulus packages alongside BB's refinance schemes in the face of new adversities, including the Russia-Ukraine war in addition to the Covid-19 pandemic.
The refinance scheme of Tk 3000 crore for lending to the marginal and landless farmers will be implemented 100 per cent to bring them to the production line.
A review of the latest state of the global and domestic economy and the economic impact of recent floods in the northeast shows that the main challenge for the monetary policy for FY2022-23 would be to stabilize the domestic currency’s exchange rate with the US dollar, BB governor said in his speech.
"At the same time, continued support for ongoing economic recovery aimed at job creation is essential for the forthcoming monetary policy,” he said.
Finance Minister AHM Mustafa Kamal, meanwhile, set the government's GDP growth and inflation targets for FY 2022-23 at 7.5 per cent and 5.6 per cent respectively, he mentioned.
Replying to a query the governor said that though the monetary policy is for a year, it will be reviewed after the first quarter of the year to adjust with the changing situation.
Asked about his tenure he said, “I took the charge in a challenging time and the Covid-19 pandemic also made the challenges more difficult.’
Despite challenges Bangladesh’s economy remained on the right track and his priority was to keep the economy as well as money flow stable as per the situation, Kabir said.
Replying to another query regarding qualification for governor of the central bank he said, the BB has several wings to research and analyze the situations and these departments help the governor to make appropriate decisions. So it is not necessary that the governor has to be from a financial background.
India's Mukesh Ambani kickstarts dynastic succession
Billionaire Indian industrialist Mukesh Ambani kickstarted a dynastic succession on Tuesday, handing over the reins of his conglomerate Reliance Industries' telecom arm Jio to his eldest son Akash.
The 65-year-old senior Ambani stepped down as the director of Reliance Jio Infocomm and made Akash the chairman of the company's Board.
Read:Ambani pays 22K USD a month for top govt security in India
Jio Infocomm, at a meeting on June 27, "approved the appointment of Akash M Ambani, non-executive director, as the chairman of the board of directors of the company", the telecom giant intimated India's bourses.
Akash, 31, who graduated in economics from Brown University, joined Jio in 2014. He is married to Shloka Mehta in 2020 and the couple have a son, Prithvi.
Jio has attracted some 400 million subscribers to its network since its mega launch in 2016, despite being a late entrant to India's telecom sector.
By offering free voice calls and data at the world's cheapest price, it has already changed the country's digital landscape.
Read: India to export $500bn green energy by 2042, Ambani says
UNB had earlier reported about the senior Ambani's plan to split his USD 200 billion business empire among his three children -- Akash, Isha and Anant.
Over the past two years, Reliance went on an aggressive fundraising spree to make the conglomerate debt-free, a step to trim its dependence on the flagship oil sector to diversify into telecom and e-commerce.
Cellfin launches Mastercard dual currency prepaid card
Cellfin, omni-channel banking app of Islami Bank Bangladesh Limited (IBBL), has launched a Mastercard dual currency prepaid card.
The users will be able to buy from any local or foreign e-commerce sites in both foreign currency and taka.
Read Mastercard, Brac unveil Mastercard Millennial Titanium Credit Card
Mohammed Monirul Moula, managing director and chief executive officer of IBBL, inaugurated the card service on June 22 at a Dhaka hotel.
The card enables fund transfer to Mastercard cards or accounts of any bank connected to the NPSB/BEFTN/RTGS network.
Read bKash customers can now add money from 29 banks, Visa, Mastercard
Having an IBBL account is not necessary for this card. One may avail of the card by registering with Cellfin, said a media statement Saturday.
Inflation sparks global wave of protests for higher pay, aid
Rising food costs. Soaring fuel bills. Wages that are not keeping pace. Inflation is plundering people’s wallets, sparking a wave of protests and workers’ strikes around the world.
This week alone saw protests by the political opposition in Pakistan, nurses in Zimbabwe, unionized workers in Belgium, railway workers in Britain, Indigenous people in Ecuador, hundreds of U.S. pilots and some European airline workers. Sri Lanka’s prime minister declared an economic collapse Wednesday after weeks of political turmoil.
Economists say Russia’s war in Ukraine amplified inflation by further pushing up the cost of energy and prices of fertilizer, grains and cooking oils as farmers struggle to grow and export crops in one of the world’s key agricultural regions.
As prices rise, inflation threatens to exacerbate inequalities and widen the gap between billions of people struggling to cover their costs and those who are able to keep spending.
“We are not all in this together,” said Matt Grainger, head of inequality policy at antipoverty organization Oxfam. “How many of the richest even know what a loaf of bread costs? They don’t really, they just absorb the prices.”
Oxfam is calling on the Group of 7 leading industrialized nations, which are holding their annual summit this weekend in Germany, to provide debt relief to developing economies and to tax corporations on excess profits.
“This isn’t just a standalone crisis. It’s coming off the back of an appalling pandemic that fueled increased inequality worldwide,” Grainger said. “I think we will see more and more protests.”
The demonstrations have caught the attention of governments, which have responded to soaring consumer prices with support measures like expanded subsidies for utility bills and cuts to fuel taxes. Often, that offers little relief because energy markets are volatile. Central banks are trying to ease inflation by raising interest rates.
Read: Tackling inflation to protect people’s purchasing power key challenge: DCCI
Meanwhile, striking workers have pressured employers to engage in talks on raising wages to keep up with rising prices.
Eddie Dempsey, a senior official with Britain’s Rail, Maritime and Transport Union, which brought U.K. train services to a near standstill with strikes this week, said there are going to be more demands for pay increases across other sectors.
“It’s about time Britain had a pay rise. Wages have been falling for 30 years and corporate profits have been going through the roof,” Dempsey said.
Last week, thousands of truckers in South Korea ended an eight-day strike that caused shipment delays as they called for minimum wage guarantees amid soaring fuel prices. Months earlier, some 10,000 kilometers (6,200 miles) away, truckers in Spain went on strike to protest fuel prices.
Peru’s government imposed a brief curfew after protests against fuel and food prices turned violent in April. Truckers and other transport workers also had gone on strike and blocked key highways.
Protests over the cost of living ousted Sri Lanka’s prime minister last month. Middle-class families say they’re forced to skip meals because of the island nation’s economic crisis, prompting them to contemplate leaving the country altogether.
The situation is particularly dire for refugees and the poor in conflict areas such as Afghanistan, Yemen, Myanmar and Haiti, where fighting has forced people to flee their homes and rely on aid organizations, themselves struggling to raise money.
“How much for my kidney?” is the question most asked of one of Kenya’s largest hospitals. Kenyatta National Hospital reminded people on Facebook this week that selling human organs is illegal.
For the middle class in Europe, it’s become more expensive to commute to work and put food on the table.
“Increase our salaries. Now!” chanted thousands of unionized workers in Brussels this week.
“I came here to defend the purchasing power of citizens because demonstrating is the only way to make change,” protester Genevieve Cordier said. “We cannot cope anymore. Even with two salaries ... both of us are working, and we cannot get our head above water.”
In some countries, a combination of government corruption and mismanagement underpin the economic turmoil, particularly in politically gridlocked countries like Lebanon and Iraq.
Read: Bangladesh hits eight-year high inflation at 7.42pc: BBS
The protests reflect a sense of growing financial insecurity. Here’s how that has played out in Africa:
— Health care professionals in Zimbabwe went on strike this week after rejecting the government’s offer of a 100% pay rise. The nurses say the offer does not come close to skyrocketing inflation of 130%.
— Kenyans have protested in the streets and online as the price of food jumped by 12% in the past year.
— One of Tunisia’s most powerful labor unions staged a nationwide public sector strike last week. The North African country faces a deteriorating economic crisis.
— Hundreds of activists this month protested the rising cost of living in Burkina Faso. The U.N. World Food Program says the price of corn and millet has shot up more than 60% since last year, reaching as high as 122% in some provinces.
“As far as this cost of living that keeps increasing is concerned, we realized that the authorities have betrayed the people,” said Issaka Porgo, president of the civil society coalition behind the protest in the west African country.
Protesters condemn the military junta, which ousted the democratically elected president in January, for giving themselves a pay raise while the population faces rising prices.
The International Monetary Fund says inflation will average about 6% in advanced economies and nearly 9% in emerging and developing economies this year. Global economic growth is projected to slow by 40%, to 3.6%, this year and next. The IMF is calling on governments to focus support packages to those most in need to avoid triggering a recession.
The slowdown comes as the COVID-19 pandemic is still gripping industries worldwide, from manufacturing to tourism. Climate change and drought are hitting agricultural production in some countries, prompting export bans that push up food prices even further.
Rising food prices are particularly painful in low-income countries, where 42% of household incomes are spent on food, said Peter Ceretti, an analyst tracking food security at risk advisory firm Eurasia Group.
“We will see more protests, probably broader and angrier, but I do not expect destabilizing or regime-changing protests,” he said, as producers adjust and governments approve subsidies.
Bangladesh urges Japanese businessmen to invest more in various sectors
Bangladesh Ambassador to Japan Shahabuddin Ahmed has urged the Japanese businessmen and investors to invest in various sectors in Bangladesh including information technology, garment industry, and leather.
He also highlighted Japan's involvement in various mega projects in Bangladesh and thanked the Japanese government for their continuous support.
In the context of the decreasing population in Japan, the Ambassador urged Japan's manpower recruiting agencies to recruit skilled workers from Bangladesh.
Read Japan honours businessman Matiur Rahman with Order of the Rising Sun award
He was addressing a seminar on ‘Trade, Investment and Skilled Human Resources’ held in Saitama, Japan on Wednesday.
Nearly 200 participants from Japanese companies and manpower recruiting organisations were present at the event, said the Bangladesh Embassy in Tokyo.
The seminar was organised as part of celebrating 50 years of Bangladesh-Japan diplomatic relations supported by the City of Saitama, Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), Saitama, UNIDO-ITPO Tokyo, and JITCO.
Read: Japan to provide US$ 5 million to promote Bangladesh primary education
From the city of Saitama, Hitoshi Shibuya, director, Department of Commerce, Industry, and Tourism, Bureau of Economic Affairs spoke.
Dr Ariful Haque, Minister (Commerce) of the Embassy delivered a presentation on trade and investment opportunities in Bangladesh, and Md Zoynal Abedin, first secretary (Labour), of the Embassy, presented on the ‘Prospects and Potentials of Skilled Human Resources in Bangladesh: Collaboration with Japan for Greater Mutual Benefit.’
Noriyoshi Fukuoka, director (South Asia), Trade Policy Bureau, Ministry of Economy, Trade, and Industry (METI) praised Bangladesh’s economic progress and prospects.
Read Japan: Lasting Rohingya solutions to help a free Indo-Pacific
Yuji Ando, country representative, JETRO Bangladesh discussed the business environment in Bangladesh through a video message.
Toshihiro Shimizu, from JICA, presented on JICA’s business supporting survey in Bangladesh and Kiminobu Hiraishi, CEO of Maruhisha Group shared business experiences of Japanese textile companies in Bangladesh.
Ambassador Shigeo Matsutomi, senior vice president, Japan International Trainee & Skilled Worker Cooperation Organisation (JITCO) discussed on sending or acceptance structure of Bangladeshi trainees & workers, and Keisuke Irako, chief director, Machida Hospital shared experiences of recruiting Bangladeshi caregivers in his hospital.
Read Japan pulls out of Matarbari-2 plant after consulting Bangladesh: Nasrul
Embassy officials, officials, and representatives from METI, JICA, JETRO, Japan Chamber, and UNIDO ITPO Tokyo, among others, attended the seminar.
Bangladesh hits eight-year high inflation at 7.42pc: BBS
Bangladesh’s overall inflation in May surged to an eight-year high at 7.42 per cent, driven mainly by soaring food prices, according to an official report.
The rate of inflation was 6.29 per cent in the previous month (April), according to latest data released by Bangladesh Bureau of Statistics (BBS) on Sunday.
It also revealed that the inflation rate has been higher in the rural areas in the country.
According to the BBS, inflation in food items rose to 8.30 per cent in May from 6.23 per cent in the previous month. However, in the same month, the rate of inflation in the non-food sector has come down to 6.08 per cent from 6.39 per cent last month.
Read: Rising inflation hurts rural people more than their urban counterparts: BBS
According to the BBS, non-food inflation rose to 6.8 per cent in May. Inflation in rural areas was higher in May than in cities like in the last few months. Inflation in rural areas was 7.94 per cent in May and in the cities it was 7.49 per cent.
According to data released by BBS, prices of most of the 47 essential commodities have gone up in one month.
In May, the price of Miniket rice rose to Tk 72.15 per kg from Tk 69.11 in April. Similarly, the price of pajam varieties of rice went up to Tk 62.72, which was Tk 58.05 in April.
Prices of boro rice, flour, mugdal, molasses, rui fish, hilsa, catfish fish, meat, eggs and milk have gone up. Soybean, dried chilli, onion, ginger, garlic, potato, green chilli, papaya, milk, cloth, melamine utensils are also expensive. Prices of cement, kerosene, coconut oil, cigarettes and white paper also went up.
Businesses reject plan to impose 8pm closing time on shops
Businessmen on Saturday urged the government to postpone the decision of the closure of shops, shopping malls, markets, and kitchen markets after 8 pm till the Eid-ul-Adha.They came up with this call at the first meeting of the FBCCI Standing Committee on Local Garments (Avhantarin Poshak) at FBCCI.They said that Businesses were deprived of the full-scale festival centric sale due to the 2-year long Covid-19 pandemic and incurred huge losses.They said businesses had managed to remain on their feet the help of timely incentive packages, and now are working relentlessly to revive the economy.They apprehended that if the sales close after 8 pm, the process of revival will stumble.Read: FBCCI preparing a master plan to face post-LDC challenges
FBCCI senior Vice-President Mostofa Azad Chowdhury Babu in response to the demands of businessmen, called for postponing the government decision till Eid-ul-Adha.“The office goers prefer to visit malls after evening; therefore, the instruction will discourage them to shop, which would put the millions of small and medium entrepreneurs into further loss,” the FBCCI Senior Vice President said.The committee members also called for initiatives to set up a garment village for the manufacturers who produce clothing for the domestic market.They said that garment manufacturers have to procure raw materials from different places and re-package and sell them in the wholesale market which accumulates a huge cost.A dedicated garment village will ease the business process and reduce the cost and also facilitate buyers to afford clothing at a cheaper price.Read: Good governance major challenge to implement budget: FBCCI
Acquiescing with the demands of the businessmen, Vice President M A Momen assured that FBCCI will take initiatives to discuss with the concerned ministry in this regard.“Businesses will face additional challenges after LDC graduation in 2026. Hence, the local sector needs to be stronger,’ he added.While chairing the meeting, Committee chairman and president of Bangladesh Avhantarin Poshak Prostutkarak Malik Samity Md. Alauddin Manik said that they meet the huge domestic demand and thus help reduce import cost. The sector would further flourish if it gets bank loans.Director-in-Charge of the Committee Abu Motaleb complains that the tax-officials harass businessmen in the name of collecting revenue. He calls for the end of the harassment.FBCCI Director Shafiqul Islam Vorosha and Hafez Harun also spoke at the meeting.Co-Chairmen Hazi M H Mostofa, Md. Abul Khayer, Md. Sarwar Uddin Khan, Hazi Md. Tipu Sultan, Md. Kefayetullah Twinkle and Junaed Ibna Ali were also present.
TEI GET to promote renewable energy in Bangladesh
Team Europe Initiative on Green Energy Transition (TEI GET) will promote renewable energy in Bangladesh in achieving its national goal.
The TEI GET expressed such interest while a delegation of the organisation made a field visit to 3 renewable energy projects in Dhamrai area of Dhaka on Tuesday.
According to a release, representatives off Germany and the European Union, as TEI GET Co-Chairs, along with high-level representatives of Denmark, Sweden, AFD, GIZ, KFW, Switzerland were present.
Read Akij sets up rooftop solar plant with Huawei's technology
Additional Secretary of Renewable Energy, Power Division of Bangladesh Md Mostafa Kamal,, Additional Secretary and Member Admin, Sustainable and Renewable Energy Development Authority (SREDA) Md Golam Mostofa were also present.
The field visit, organized together with IDCOL, started with a guided tour of the operational rooftop solar with Net Metering system at Snowtex Outerwear Ltd. at Dhamrai, Savar, following a discussion meeting with TEI GET, IDCOL, Snowtex Management and Government counterparts.
Later, the group visited an IDCOL project, co-financed by KFW, of Solar Irrigation Pumps, and a domestic biogas plant in Dhamrai.
Read: 25% electricity from renewables by 2030: SREDA proposes, GOB disposes?
During the visit’s discussion, Johannes Schneider, Head of Development Cooperation, Germany, highlighted EU Member States’ common interest to support Bangladesh in achieving their national goals and international commitments in the field of renewable energy through the Team Europe Initiative
“This Initiative will allow us to better coordinate and consolidate our engagement in the Green Energy Sector and strengthen our relationship with the Bangladesh Government and the private sector,” he said.
Maurizio Cian, Head of Cooperation, EU Delegation, highlighted the transformational approach of Team Europe said that the Team Europe’s common values and expertise in Renewable Energy are key drivers of this initiative.
Read Bangladesh seeks IRENA’s support to explore renewable energy potential
“Team Europe provides the framework to deliver European support to the Government of Bangladesh, with the ambition of a transformational impact in accelerating a green and just energy transition,” he added.
Mostafa Kamal, Additional Secretary of Power Division, said that Bangladesh is committed to increase renewable energy contribution in the national power generation mix, to promote appropriate, efficient and environment friendly technology for the development of renewable energy.
“We are looking forward to implementing our strategies in collaboration with Team Europe,” he said.
Read: Renewable energy could be Bangladesh’s best option post Covid-19
TEI GET, launched in Dhaka in June 2021, aims at supporting Bangladesh to build a power system that leads to maximum coverage of the country`s energy demand through renewable energy while reducing GHG emissions, energy consumption and demand through energy efficiency.
TEI GET, co-chaired by Germany and the EU includes EU Member States Denmark, France, Italy, Spain, Sweden, The Netherlands, the European Investment Bank (EIB) and like-minded countries like Norway and Switzerland.
TEI GET comprises projects in the area of effective sustainable energy market, optimized grid infrastructure and renewable energy integration into the grid, it added.
Read Govt aims for 10% electricity from renewables by 2025