Business
Nagad holds 'Distributors Meet 2022'
Mobile financial services provider (MFS) Nagad recently organised "Distributors Meet 2022."
One hundred and sixty-four distributors, regional managers, and market directors of Nagad from across the country participated in the event at a Dhaka hotel.
Read Nagad holds a ‘Get-together’ with DMP's Detective Branch
At the day-long programme, distributors, regional managers, and market directors from various regions were recognised for their accomplishments based on goals or performances.
Tanvir A Mishuk, founder and managing director of Nagad, said: "Since its inception, Nagad has been the world's fastest-growing MFS, with over 6 crore valued customers and nearly Tk1,000 average daily transactions. This has only been made possible due to your collaboration and partnership."
Also read: Healthcare payments: Nagad offers discounts of up to Tk2,350
Fiscal policy support needed for economy to tackle inflation: CPD
The economy is under pressure due to challenges caused by global and domestic factors, that are apprehended to continue for some time in view of slower growth in the world economy.
This view was put forward in the Independent Review of Bangladesh’s Development (IRBD) conducted by Centre for Policy Dialogue (CPD), a private think tank, released in a media briefing in the capital on Sunday.
Dr Fahmida Khatun, executive director of CPD, briefed the reporters on the review report. Dr Mustafizur Rahman, distinguish fellow, Khondaker Golam Moazzem, research director, and Towfiqul Islam Khan, senior research fellow, among others, spoke on the review report.
CPD carries out an interim review of the national economy towards the end of every fiscal year. Accordingly, the third interim review of Bangladesh’s macroeconomic performance for FY22 has been undertaken.
Also read: CPD, ILO bring together stake holders to develop national industrial safety framework
The average cost of living on a “regular” diet for one household of 4 persons living in an apartment with one bedroom outside the city centre in Dhaka in May 2022 would be approximately BDT 42,548, the review said.
The review found that higher living costs in the capital are pushing up inflation.
The average cost of living on a “compromised” diet for one household of 4 persons living in an apartment with one bedroom outside the city centre in Dhaka in May 2022 would be approximately BDT 29,206. The difference goes to show the impact of food inflation in particular on ordinary families.
Apart from the high price of basic food items, the high prices of non-food items were putting a huge burden on households. Available data shows that maintaining even a modest standard of living was becoming prohibitively expensive for households in Dhaka.
In the absence of support from the government, out-of-pocket expenditure on health for a household of 4 persons was equivalent to Tk 2,625 per month in 2019, at purchasing power parity, said CPD.
It is apprehended that many households are at risk of falling below the poverty line due to out-of-pocket expenditure on health, CPD predicted.
“This is worrisome for the overall macroeconomic situation and it requires proactive measures by the policymakers both in the immediate and medium terms,” the CPD study recommended.
The quality, reliability and consistency of data of economic indicators will be the first step towards enacting proactive measures since the effectiveness of policy making depends on credible real time data.
Also read: High value public debt spent on nonproductive sector causes imbalance in economy: CPD
Policymakers will have to come out of growth obsession and focus on the quality of growth in terms of distribution of the benefits of growth more equally.
Since the poor and disadvantaged people are yet to overcome the impact of the pandemic and have been affected further due to high prices of essential commodities, the policy should protect the purchasing power of the poor and low-income groups, the study said.
CPD has been proposing various measures to ease the burden of rising prices and shrinking purchasing power of low- and fixed-income earning people including selectively reducing taxes at import and domestic stages and expanding social protection.
Besides, strategic sectors such as energy and agriculture will have to be supported through subsidies for economic growth and food security.
These measures should be combined with higher efforts for domestic resource mobilisation and reduced unnecessary and less important expenditures.
In the FY23 budget, fiscal measures pertaining to the external sector should focus on addressing the adverse impacts of imported inflation, CPD said.
Impact to intensify if Russia-Ukraine war continues for a longer period: ICCB
The International Chamber of Commerce, Bangladesh (ICC,B) has said Bangladesh is already feeling the heat of the Russia-Ukraine war in many ways and if the war continues for a longer period, the impact will intensify.
Three major economic challenges, all tied to one another, as observed by experts include a persistent higher rate of inflation, the upward trend of the foreign exchange rate, and a deepening liquidity crunch in the banking sector, it said.
The country is feeling the impact through reduction in exports and rise in import bills.
Being an oil-importing country, Bangladesh is already feeling the pressure through high import payments, the ICC,B report cautioned.
It endorsed the recent recommendation by the Finance Ministry to avoid hard loans and discourage the import of luxury goods.
Read: Edible oil prices likely to drop in Bangladesh in line with global market: Commerce Minister
"This may reduce pressure on our declining foreign exchange reserves," said the leading chamber body on Saturday also endorsing recent austerity and regulatory measures taken by the government and Bangladesh Bank aimed at curbing non-essential imports, suspending the implementation of projects with high import components.
ICCB President Mahbubur Rahman said they believe this will send a positive signal to the market and the economy as well as curbing inflation.
He was presenting ICCB executive board report at its 27th annual council held in the city on Saturday.
ICC,B also supports the demand of the businesses not to increase the power and gas rates, fuels prices as well reduce the corporate rate taxes during the upcoming budget as these will be helpful in containing the inflation, said its President.
The report mentioned that over the last two years, the pandemic has played a major role in shaping the global economy.
Many sectors have found themselves in difficulty and are still struggling and the countries dependent on those sectors are now quietly trying to get back up again.
Despite the strong economic recovery in 2021, the financial difficulties are not over and may still cause economic slowdown.
In addition, many countries are faced with an increasing debt burden, high inflation and burning issues at the moment, geopolitical tensions, which all play a major role.
The global economy is poised to be sent on yet another unpredictable course by Russia-Ukraine war, said the ICC,B.
This war is a major humanitarian crisis affecting millions of people and a severe economic shock of uncertain duration and magnitude, it said.
The magnitude of the economic impact of the war is highly uncertain, and will depend in part on the duration of the war and the policy responses, but it is clear that the war will result in a substantial near-term drag on global growth and significantly stronger inflationary pressures, the report added.
Read: Dealers, retailers betrayed me on edible oil price: Commerce Minister
The report observed that the "Russian invasion" of Ukraine poses the most severe risk to developing Asia’s economic outlook.
The war is already affecting economies in the region through sharp increases in prices for commodities such as oil and has heightened instability in global financial markets.
COVID-19 continues to impact many parts of developing Asia, with some economies experiencing new surges in cases.
Bangladesh’s journey of 50 years since its independence in 1971 has been tremendous and to many it is a ‘land of impossible attainment’.
The dominant narrative of Bangladesh has been of an economic miracle, said ICC,B.
The country's impressive scorecard is built on her success in terms of attaining a consistently high pace of economic growth and an impressive performance with regard to various development indicators, including those relating to the Millennium Development Goals (MDGs), ICCB President said.
The success in economic growth has led to Bangladesh’s dual graduation-graduation from a Low-Income Country (LIC) to a Lower Middle-Income Country (LMIC) in 2015, according to the World Bank criterion and eligibility for graduation from the group of Least Developed Country (LDC) to Developing Country (DC) status in 2018, according to United Nations criteria, the report added.
Mahbubur Rahman said according to the World Economic Forum, since its founding in 1971, Bangladesh has emerged from overwhelming poverty to be proclaimed by The World Bank in 2020 as 'a model for poverty reduction'.
It achieved the highest cumulative GDP growth globally from 2010 to 2020 and is now on course to become a developed country by 2041.
Bangladesh, like other countries, faces the daunting challenge of fully recovering from the COVID-19 pandemic which has constrained economic activities and reversed some of the gains achieved in the last decade, according to ICC,B.
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Unilever Bangladesh launches Sustainability Report 2021
Unilever Bangladesh has unveiled its Sustainability Report 2021, "Partnering Bangladesh."
The report, recently launched at an event in the capital, shows the company's work and impact on the health, environment and society.
In 2021, Unilever Bangladesh invested over Tk430 million covering 10 different SDG agendas. It collaborated with the largest municipal-backed plastic waste collection project in Bangladesh and supported communities fighting Covid-19.
Read: Confidence Infrastructure inaugurates geotextiles plant
Zaved Akhtar, CEO and managing director of Unilever Bangladesh, said: "In Bangladesh, we have used our brands to improve the lives of people. We have many success stories like improving the oral hygiene of the children of the country and teaching over 10 million school children proper hand washing since the 1990s."
"We are now focusing on replicating these experiences for toilet hygiene, the habit of safe water consumption and mental wellbeing, as we identified these to be the areas where there are barriers or taboos."
"But it is clear we need to do much more – within our business, and by using our size, scale and partnerships in our value chain and beyond," Zaved said.
Read Unilever rebranding 'Fair and Lovely'
Industries Minister Nurul Majid Mahmud Humayun said: "Unilever has not only been conducting business in Bangladesh for more than five decades but also working with its partners for the social and environmental progress of Bangladesh as an ethical and responsible organisation.
"The company is working with about 1 million entrepreneurs across the country. As a result, Unilever Bangladesh is making a huge contribution in creating employment."
British High Commissioner to Bangladesh Robert Chatterton Dickson said: "Despite the challenges and vulnerability of Bangladesh on climate, I feel the partnership between the government, Unilever, as a catalyst and a private sector donator of capability and purpose and finance, and the capability of the third sector, corporate civil society organisations to reach out into the society, is very strong."
Read Unilever hands over cheques for Tk 71.84 million to Labour Welfare Foundation
Confidence Infrastructure inaugurates geotextiles plant
Confidence Infrastructure, a sister concern of Confidence Group, has inaugurated a geotextiles plant in its factory in Narayanganj.
Geotextiles manufactured in this plant will be marketed as "GEOCIL."
The monthly production capacity of the newly established plant will be around 1,150,000 bags.
Read: BGMEA hopes for continued support of German govt to RMG industry
Geotextiles are polymer fabrics used for many civil engineering purposes, including the construction of roads, drains, harbour works, breakwaters, and land reclamation.
"To protect human lives, economic infrastructures, and maintain environmental stability, we are manufacturing geotextiles locally by setting up this plant with sophisticated technology," said Rezaul Karim, chairman of Confidence Group, at the inauguration ceremony Saturday.
Salman Karim, managing director of Confidence Infrastructure, said: "Our newly established plant will help the communities across the country by mitigating the risks of natural disasters. It will also contribute to national economic growth as we are looking forward to creating more employment opportunities, improving people's living standards, and exporting our products."
Read: Non-brand bakery products prices soar by 20 percent: BBBCMA
The plant has already started producing GEOCIL bags and Geo Mats.
GEOCIL is being produced in compliance with the specifications set by the Bangladesh Water Development Board, following all the national and international standards.
Banglalink to observe 'Ethics and Compliance Week 2022'
Telecom operator Banglalink will observe Ethics and Compliance Week 2022 starting Sunday to ensure a transparent atmosphere where everyone feels encouraged to grow while remaining ethical and compliant.
With the slogan "Ethics and Compliance Starts with Me," a series of educational and awareness-raising activities will be carried out for Banglalink employees, partners, and stakeholders as part of the five-day programme.
Also Read: James, Miles withdraw cases against Banglalink
During the week, Banglalink employees will attend workshops on ethics and compliance conducted by the organisation's senior leaders. There will be sessions to exchange views and renew commitments for ethical conduct.
Muniruzzaman Sheikh, chief ethics and compliance officer at Banglalink, said: "We have established our brand identity as a leading compliant and ethical organisation."
Read Banglalink's digital services marketplace AppLink launched
"We want to keep raising our standards, which is not possible without the active participation of our employees and stakeholders."
Walton sets up research centre in South Korea
Walton has set up a research and innovation centre in South Korea's Seoul.
The company Thursday signed an agreement with a reputed Korean design house to work on bringing "radical changes" in the quality and design of electronics and technology products.
Read: Walton brings Arc CPU liquid coolers
Although the initiative will raise Walton's cost of production, Bangladeshi buyers will get world-class products with innovative designs, Walton Managing Director and CEO Golam Murshed said.
"South Korea is undoubtedly a leading global hub for electronics and technology products. Setting up a research centre in the country and working with a reputed South Korean design house is a giant step for the electronics sector of Bangladesh," he added.
Read EPB assures Walton of support to boost electronics, electrical products exports
IBBL opens hajj booth at Ashkona
Islami Bank Bangladesh Limited (IBBL) has opened a hajj booth at Ashkona Hajj Camp in the capital.
Mohammed Monirul Moula, managing director and chief executive officer of the bank, inaugurated the booth Friday.
Read: Hajj cost goes up by Tk 59,000
The services that the booth is providing to the hajj pilgrims include the dollar and Saudi riyal endorsement, ATM, and information.
Md Omar Faruk Khan, additional managing director, Md Maksudur Rahman, senior executive vice-president, Md Mizanur Rahman Bhuiyan, executive vice-president, and Nazrul Islam, vice-president, of IBBL were present at the inauguration of the booth.
Read Bank officials can travel abroad for Hajj, treatment, foreign-funded workshop: BB
BB devalued taka against USD again by Tk0.90
Bangladesh Bank (BB) has depreciated the local currency again by Tk0.90 to re-set the exchange rate at Tk 89.90 per US dollar.
Thursday’s devaluation of taka – the eighth this year - sought to discourage unnecessary imports amid global price hike of commodities.
Md Serajul Islam, executive director and spokesperson of BB told UNB that though the new exchange rate was not formally conveyed to banks, the BB sold $135 million to banks at the rate of Tk89.90.
READ: Taka weakens further as BB sets new single exchange rate of USD at Tk89
The BB has resorted to frequent depreciation of Bangladesh currency to stabilize the restive foreign exchange trade.
Earlier the BB depreciated local currency by Tk0.25 to Tk0.40. But the central bank has recently increased the percentage of the devaluation.
Bangladesh’s trade deficit widens to over $27bn in 10 months
Bangladesh’s trade deficit has widened to USD $ 27.56 billion in 10 months of the current fiscal year due to hefty rise in import demand following easing of Covid-19 pandemic.
Bangladesh Bank on Thursday released the ‘the current account balance’ after clearing foreign transactions. In the last FY 21, the trade deficit was $2.28 billion.
The BB data shows that during July -April of the current financial year, the exports increased by 34.56 per cent. On the other hand, imports grew by 41.42 per cent during the same period.
READ: Various nations expressing interest about Bangladesh’s trade, economy: Tipu Munshi
In these 10 months, the country has earned $41.10 billion from exports while it spent $ 68.67 billion on imports.
Dr Salehuddin Ahmed, former governor of BB told UNB that the gap has widened as imports are increasing while exports and remittances are decreasing.
“If we want to reduce the deficit, we have to increase exports and remittances. Besides, luxury and unnecessary imports have to be reduced,” he added.
He also urged increased vigilance on imported goods and containers to ensure that the goods against import LCs are really entering in the country.