business
Shabab Choudhury appointed BATB’s Corporate and Regulatory Affairs Head
BAT Bangladesh has appointed Shabab Ahmed Choudhury as the Head of Corporate and Regulatory Affairs, with effect from April 1, 2024.
In his 15 years at BAT Group, he has served in key positions across multiple countries, including the UK, Pakistan, Indonesia, Papua New Guinea, and Bangladesh. Most recently, he has performed the role of Head of Commercial Finance-DBS based in the UK.
Shabab joined BAT Bangladesh as a Finance Management Trainee in 2009. He obtained a Bachelor of Business Administration degree from North South University.
His inclusion to the BAT Bangladesh leadership team is expected to add value as he brings with him cross-market knowledge and commercial acumen.
"I'm honoured to rejoin BAT Bangladesh. With a 114 years’ legacy, our company has been supporting the government as a partner in the country’s development journey,” he said, reiterating the company’s commitment to working for ‘A Better Tomorrow for all’.
Aziz Khan: Lone Bangladeshi tycoon on Forbes Billionaires List 2024
Muhammed Aziz Khan, the visionary chairman of the Bangladeshi conglomerate Summit Group, has earned a spot on the prestigious Forbes World's Billionaires List for 2024.
Residing in Singapore, Khan is celebrated as the sole Bangladeshi entrepreneur to be featured on this year's list, a testament to his remarkable success and influence in the global business arena.
Khan's inclusion in the Forbes list is a recognition of his substantial contributions to Bangladesh's economy through Summit Group. The conglomerate has made significant strides in various sectors, including power generation, port management, fiber optics, and real estate, under Khan's strategic guidance, according to Forbes.
A testament to his business savvy was the lucrative sale of a 22% stake in Summit Power International to Japan's JERA for $330 million in 2019, which placed the company's valuation at an impressive $1.5 billion.
In a move that underscores the family's commitment to their business legacy, Khan's daughter, Ayesha, has taken the helm at Summit Power International, continuing the path of innovation and growth set by her father.
Globally, Khan is ranked 2545th among the world's billionaires, while in Singapore, where he has made his home, he stands as the 41st wealthiest individual, as per the 2023 Forbes list.
His journey from an ambitious student with an MBA from the University of Dhaka to a global business figure is an inspiring story of determination and skill.
At 69, Khan remains a pivotal figure in the business world, actively shaping the economic narrative in Bangladesh and beyond. His achievements not only reflect his personal success but also highlight the potential of Bangladeshi entrepreneurship on the world stage.
Bangladesh Bank auctions gold for the first time in 16 years
Bangladesh Bank (BB) for the first time in 16 years, auctioned 25 KG (kilogrammes) of gold for around Tk18 crore on Wednesday.
The central bank was keen to auction the gold in late 2022 but failed to find the expected buyers.
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"Bangladesh Bank sold 25.312 kg of gold in different qualities for Tk17.99 crore. After completing all the processes on Wednesday, these golds were handed over to the buyer company, Venus Jewellers," said Mezbaul Haque, spokesperson of the cenral bank.
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The Bangladesh Bank last sold 21.822 kg of gold through auction on July 23, 2008. Moreover, another 25, 21, and 20 kg of gold were sold in three phases earlier that year.
Bangladesh Bank closing around 200 MFS accounts a day in Hundi crackdown: Governor Abdur Rouf
IMF stresses meeting forex reserves target to get third tranche of $4.7 billion loan
The International Monetary Fund (IMF) has emphasised meeting the target of the foreign exchange reserve set for March 2024 as a condition of $4.7 billion in loan support for Bangladesh.
The global lender upheld its stand during a meeting with Bangladesh Bank officials on Wednesday. The IMF team is visiting Bangladesh to assess the financial outlook before releasing the third installment of the $4.7 billion loan.
IMF approves 600 mln USD funding to support Ghana's economic recovery
As per the conditions of the loan from the IMF, it was set as a target to hold US$19.26 billion in reserves in March 2024. But actual reserves are less than $16 billion.
“There is difficulty and uncertainty about the third installment of the IMF loan as the IMF has been somewhat strict in meeting the conditions,” said an official of the central bank.
Despite relaxed conditions, Bangladesh couldn’t meet IMF’s forex reserves target in 2023
He told UNB that the Bangladesh Bank officials have given several points for causing the reserve shortage. He hoped the IMF would finally be convinced of Bangladesh's position in this regard.
The government signed a $4.7 billion loan deal with the IMF to solve the dollar crisis. A review mission of the IMF is visiting Bangladesh before the third installment of the loan is disbursed.
After receiving 2nd tranche, Bangladesh’s reserves hike up above $20 billion as per IMF: BB
Dr Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh (PRI), told UNB that despite the IMF easing the net reserve requirements, it is difficult for Bangladesh to meet the March target.
He said the global lender may set a new standard of net reserves for Bangladesh or delay the disbursement of the third tranche of the $4.7 billion loan.
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.
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“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.
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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.
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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.