daily news flash, 28th december, 2017 - ebl … news flash, 28th december, 2017 4 the private sector...

Daily News Flash, 28th December, 2017

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DSEX 18.90 Gold (Ounce) $1289.30 Dollar 82.70 (Buy) 82.70 (Sell) CSCX 25.96 Oil (Barrel) $59.40 Euro 98.07 (Buy) 98.10 (Sell)

BANGLADESH ECONOMIC GROWTH MAY SLOW TO 6.9PC THIS FISCAL ........................................................... 2

WB INSISTS ON BD RECEIVING ITS AID ............................................................................................................. 3

MOST MULTINATIONALS DODGE TP LAW, DEPRIVE GOVT OF DUE TAXES ....................................................... 4

LOCAL RMG UNITS VIOLATE WORKERS RIGHTS SEVERELY .............................................................................. 7

BB ISSUES SHOW-CAUSE NOTICE AGAINST PCB ............................................................................................... 8

BD ONE OF LOWEST ASIAN AGRI PRODUCE PROCESSORS ................................................................................ 8

CITY BANK ARRANGES $15M TO SUPPORT SME, RMG PORTFOLIOS .............................................................. 10

STOCKS FINISH HIGHER AS LAFARGE KEEPS GAINING .................................................................................... 10

DHAKA TO IMPORT 1.4M TONNES OF CRUDE OIL FROM S ARABIA, ABU DHABI ............................................ 11

GOVT BEHIND SCHEDULE TO LAUNCH SOME PROJECTS ................................................................................. 12

BB URGES ALL TO ABSTAIN FROM TRANSACTIONS OF VIRTUAL COINS .......................................................... 12

NO CHEER FOR CEMENT INDUSTRY IN 2017 ................................................................................................... 13

BANGLADESH AGAIN DENIED GSP ................................................................................................................. 14

BACCHU'S COMPANY ACCOUNT UNDER ACC SCANNER ................................................................................. 15

COMPANIES GROW COLD ON IPOS ................................................................................................................ 16

BANK ASIA JOINS COCA-COLA'S WOMEN EMPOWERMENT PROJECT ............................................................ 16

SOARING PRICES SAPPED CONSUMERS ......................................................................................................... 17

DEFAULTED INDUSTRIAL LOANS RISE BY 30PC IN JUL-SEPT ............................................................................ 18

BB URGES ALL TO ABSTAIN FROM TRANSACTIONS OF VIRTUAL COINS .......................................................... 19

BTRC TO HOLD MEETING WITH STAKEHOLDERS ON VAS GUIDELINES............................................................ 20

GAIN AEO STATUS BY BEING COMPLIANT: NBR ............................................................................................. 21

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BANGLADESH ECONOMIC GROWTH MAY SLOW TO 6.9PC THIS FISCAL Bangladesh economy may grow at a slower pace of 6.9 per cent this fiscal year after a record growth of 7.28 per cent in the last fiscal, a global financial giant forecasts. The latest reckoning on the state of economy of the country came from Standard Chartered -- after prospective ratings by several foreign financiers to Bangladesh, who also a little lowered the growth below government projection. The lagged impact of floods is likely to dampen growth during the second half of FY18 and election-related uncertainty may lead to lower economic activity during the first half of FY19, it cautioned in its global economic research views revealed Wednesday. "Bangladesh is entering 2018 with strong fundamentals -- growth is at an all-time high, a balance-of-payments surplus has boosted reserves to a record high, and debt remains manageable," the banking giant noted about things of the near-past. Focusing on the flipside that may cast its shadow, it said inflation started rising in the country and banking-sector nonperforming assets (NPAs) remained elevated. "We expect growth, while robust, to moderate to 6.9% in FY18 from 7.3% in FY17," the British banking giant projected. While noting that the national elections are due in December 2018 or January 2019, it also recalled that previous election period in 2014 was marked by violence and strikes that significantly disrupted economic activity. "While we do not expect such large-scale disruptions this time, some impact on economic activity in H1-FY19 cannot be ruled out," StanChart says. The financial major, in its global economic review, also highlighted various challenges facing Bangladesh's banking arena. "The banking sector has continued to face challenges," it said, adding: "The capital adequacy ratios (CARs) of state-owned commercial and development banks were 5.9% and -33.7%, respectively, as of March 2017 - far lower than the 10% required under the Basel II framework," it noted. "Given the magnitude of these shortfalls, the government might increase budgetary provision for recapitalisation in FY19 (from a low level of Tk 20 billion in FY18)," says the review report, while noting that the gross NPA ratio in the country increased to 10.1 per cent in March 2017 from 8.8 per cent in 2015. Standard Chartered also projects the country's current-account-deficit to widen to 1.0 per cent of GDP in FY18 from 0.5 per cent in FY17. "The trade deficit is set to widen on higher infrastructure-related imports, rising commodity prices (especially crude oil), and higher food imports," it noted. The bank also expects the country's remittance growth to rebound to 5.0 per cent in FY18 following a 14.5 per cent fall in FY17 -- thanks to about a 30 percent increase in the number of outbound workers in FY17 and government efforts to increase formal remittances. "We expect a US$ 2 billion BoP surplus in FY18, supported by capital inflows. FX reserves are therefore likely to stay comfortable at 7-8 months of import cover," it said.


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Standard Chartered, in its research, also expects policy rates to remain on hold in FY18 as inflation exceeds the target. "We forecast average FY18 inflation at 5.9 per cent as against Bangladesh Bank's FY18 target of 5.5 per cent," it said. At the same time, fiscal deficit is likely to widen to 4.5 per cent of GDP in FY18 from 3.5 per cent in FY17, below the budgeted 5.0 per cent-- Standard Chartered predicts. It also noted that the FY18 budget includes an estimated BDT 200bn worth of revenue shortfall (about 8 per cent of FY18 budgeted revenue) due to the delayed implementation of the new VAT law. The global financial giant also expects Bangladesh's public expenditure to be much lower than the actual target due to the usual implementation shortfall. When it comes to FX market, Standard Chartered predicts a modest depreciation of the Bangladeshi Taka in 2018, and forecast the USD-BDT rate to be 'at 83.50 by mid-2018 and to 84.50' given a likely wider current-account deficit and higher political uncertainty. Focusing on the international front, Standard Chartered projects a solid global growth of 3.9 per cent in 2018, similar to 2017. "But the Year of the Dog is no time for complacency," the financial giant cautioned. "China's growth is likely to ease moderately as it continues to rebalance towards consumption from investment," it said, adding: "We expect growth in the US and euro area to exceed 10-year averages, although this is not a particularly high bar." However, Standard Chartered projects little chance that global growth will recover to the 4.2 per cent pre-Global Financial Crisis average. "Fiscal policy has turned mildly supportive of world growth, while monetary policy in general is likely to shift from ultra-accommodative to more neutral as inflation rises but remains well below longer-term averages," it noted. "The biggest risk to our benign view on global growth in 2018 -- which is also the broad market consensus -- is complacency," Standard Chartered concluded. Source: http://today.thefinancialexpress.com.bd/first-page/bangladesh-economic-growth-may-slow-to-69pc-this-fiscal-1514396592

WB INSISTS ON BD RECEIVING ITS AID The World Bank wants Bangladesh to receive an assistance it is offering for rehabilitation of Rohingyas, amid lukewarm response from the authorities concerned due to the mixed nature of the aid. WB President Jim Yong Kim wrote to Prime Minister Sheikh Hasina early this month, requesting her to accept the assistance in terms of both loans and grants, officials said Wednesday. He said the bank was ready to provide any types of supports for the Rohingya people, displaced from their home country Myanmar. The government agencies responsible for the Rohingya rehabilitation expressed their reservations about the proposed assistance recently when a visiting WB mission came to Bangladesh for exploring necessary assistance for the displaced Myanmar citizens. Officials said a country might get a maximum of $400 million from the bank's refugee window -- one-sixth of which as the regular soft loan allocation and the remaining portion from the refugee window. Half of the amount will be grant and the rest half as loan. They said the ministries and agencies concerned were reluctant to accept 50 per cent loan and wanted it to be grant money. Besides, the Ministry of Foreign Affairs (MoFA) has a reservation against financial support from any of the development partners as it considered the support would encourage the Rohingyas to stay in Bangladesh permanently, said the officials.

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The private sector organisations like Transparency International Bangladesh (TIB) also expressed deep concern over the WB's loan proposal. An official at the Economic Relations Division (ERD) said that they were going slow with the assistance proposal as the implementing agencies of the relevant projects were reluctant to receive the funds. Meanwhile, Finance Minister AMA Muhith during the Annual Meeting of the International Monetary Fund-World Bank in Washington DC in October sought support from the World Bank to meet the needs of Rohingya refugees. A total of US$2.0 billion fund is allocated to the WB's 'Refugee fund'. Any country in need of the assistance could apply for a maximum of $400 million in loans over a three-year term. The WB president in his letter to the PM hailed Bangladesh's efforts on the Rohingya handling and said they were closely communicating with the United Nations and its agencies working in Bangladesh for the Rohingya people. He said the assistance would protect interests of Bangladeshis and Rohingya. It will not ensure incentives for the Rohingya to stay here permanently rather help their timely repatriation. Source: http://today.thefinancialexpress.com.bd/first-page/wb-insists-on-bd-receiving-its-aid-1514396714

MOST MULTINATIONALS DODGE TP LAW, DEPRIVE GOVT OF DUE TAXES Around 85 per cent of the foreign companies operating in Bangladesh and executing international transactions hardly share their incomes with the host nation, thus allegedly contributing vastly to capital flight. According to an investigation, most of those companies operating in their branch, liaison and representation offices in Bangladesh are not submitting statement on international transaction (SIT) as per income-tax law. Taxmen have no idea as to how much money is transferred surreptitiously from Bangladesh with a motive to evade payment of local taxes as there is no study or research in the country in this regard, officials concerned confirmed. However, a Washington-based research and advisory organisation, GFI, reported that unrecorded capital flow from Bangladesh amounted to some US$61.63 billion between 2005 and 2014, mainly through under-invoicing and over-invoicing. Of the total illicit capital outflow ($61.63 billion), a major portion amounting to $56.83 billion passed through trade mis-invoicing at different customs points, observed the report, titled 'Illicit Financial Flows (IFFs) to and from Developing Countries: 2005-2014'. The rest, $4.8 billion, could not be tracked in the balance-of-payments data, it said. A Financial Express investigation finds these companies are taking advantage of inadequate skills of taxmen and lack of access to global database. A legal framework, known as transfer pricing (TP) law that came into force three years back, is yet to yield any tangible result to check illegal cross-border transactions. Tax officials suspect some of the MNCs are using BEPS (Base Erosion and Profit Shifting) technique due to high rates of corporate tax in Bangladesh. They are allegedly showing high price on import of raw materials from their parent companies in a bid to shift profits to the countries where corporate tax rates are comparatively lower. Bangladesh's trade openness also creates scope for the MNCs to shift their profit to maximise the gains, paying lesser amount of tax, stakeholders say about the tricks of the trade. As a member of the World Trade Organisation (WTO), Bangladesh is moving towards removing barrier to facilitate trade, an approach believed to be creating such room for evading taxes or repatriating their incomes without much transparency.

http://today.thefinancialexpress.com.bd/first-page/wb-insists-on-bd-receiving-its-aid-1514396714http://today.thefinancialexpress.com.bd/first-page/wb-insists-on-bd-receiving-its-aid-1514396714


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The country's taxmen, in a survey, have found that less than 150 multinational companies submitted their statement of international transaction (SIT) although some 1,000 MNCs, including branch, liaison and representation offices, operate in Bangladesh. Tax officials said they will find out whether the companies have opened tax file as local taxpayers. Tax authorities could not start audit of tax files of the MNCs under the law for a lack of capacity of the tax department and Dhaka's "reluctance to tie up with the international networks", say experts. The Transfer Pricing (TP) Act was passed by parliament in 2012 and came into effect in 2014 to act as an effective regime in this potential financial filed. The TP law empowers the tax authority to scrutinise international financial transactions by the taxpayers and obligate them to keep record in a prescribed form to check profit shifting through transfer-mispricing mechanism. However, two initiatives to tie up with the international networks for imparting capacity- building training with the support of OECD and information sharing by joining as associates of BEPs remained stalled. Institute of Chartered Accountants of Bangladesh (ICAB) president Dewan Nurul Islam, also managing director of advisory firm Grant Thornton Consulting Bangladesh Limited, said the tax authorities need to prepare themselves in global standards for effective and hassle-free implementation of TP law. "Using discretionary power to determine arm's-length price of imported raw materials may cause unusual harassment of the MNCs," he argued. The National Board of Revenue (NBR) had earlier signed a memorandum of understanding (MoU) with the Organisation for Economic Cooperation and Development (OECD) for imparting training to the tax officials for next two-three years. Implementation of the MoU is now uncertain after the tax authorities failed to proceed as per agreements in time, the officials concerned admit. Also, a proposal of the secretary-general of the OECD to finance minister AMA Muhith for enlisting Bangladesh as a BEPS (base erosion and profit shifting) associate appears to have been shelved. Getting associated with the OECD oversight mechanism could have enabled Bangladesh by this time to effectively check the tax evasion by way of interlinking and sharing information with its 35 member-countries, the agreements suggest. BEPS refers to tax-planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low-or no-tax locations where there is little or no economic activity. In the letter, the OECD secretary-general requested the Bangladesh government to respond as to whether Bangladesh is interested to be a BEPS-project associate. When asked, officials concerned said the government did not show any interest in the offer. BEPS tactics are allegedly used by MNCs to gain competitive advantage over enterprises that operate at a domestic level. Executive director of the Center for Policy Dialogue (CPD) Mustafizur Rahman said investment in developing global networking and information sharing is necessary to curb tax evasion through cross-border transaction. "The auditing of MNCs' tax files under TP law should be evidence-based and should be harassment-free," he added. The formation of the TP cell is the tangible progress which is a first step to execution of the TP law, he added. Four major issues that need further steps include human resource development, strengthening institutional capacity, international networking and access to global database. He cited the global financial integrity (GFI) report that said a huge amount of capital flows out from the country.


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"The government can get manifold returns on its investment on the TP issues," he said, adding that it would be financially viable investment as the significant amount of tax evasion could be unearthed. Bangladesh is considered a vulnerable state to capital flight due to high rates of corporate tax. Profit shifting to the low-tax regime is a global concern that prompted the government to frame the TP law. The National Board of Revenue (NBR) had planned to start audit of the MNCs' tax files under the TP law from the beginning of the 2017 calendar year. But, sources in the NBR said, the government high-ups are still confused over execution of the law in fear of negative impact on the minds of foreign investors. Taxation subcommittee convener of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Humayun Kabir said the scrutiny of the MNCs' international transactions should be target-oriented and based on facts and evidences. "Any of the scattered or desperate moves may give negative signal to the foreign investors," he added. The root cause of profit shifting should be indentified to make Bangladesh more favourable for foreign investment, he suggested. According to official documents relating to trade, major trade partners of Bangladesh, including the European Union (EU), China, the United States, India, Singapore, Japan, Malaysia, Canada, Hong Kong, South Korea, Australia and Thailand, have adopted transfer-pricing regime and are conducting auditing to check capital flight. Tax avoidance is often said to be high in Bangladesh that reflects the poor tax-GDP ratio below 10 per cent while South Asian countries have on average 12 per cent. The revenue board has in the past three years taken a few steps in its bid to implement TP law. The steps are the formation of TP cell and a team of experts as TP officer (TPO) and employing of resource pool comprising field-level tax officials who have expertise in international taxation. The board has also imparted some short training to the TPOs to work on detection of cross-border financial transactions, BEPS by the MNCs in their respective tax zones. A research paper of CPD, a leading private think-tank, termed transfer-pricing audit 'complex task'. It has insisted that it is through audit that the instances of transfer mispricing are unearthed and the amount of tax evasion determined. "Transfer-pricing audit is a complex task involving multidimensional skills in the area of investigation and analyses. Auditors must have sound knowledge of economics, business, finance, banking, accounting and taxation. Audits should be thoroughly professional, and should conform to international standards," the paper notes. According to the TP law, MNCs' international transactions will be monitored and assessed carefully by an expert group of taxmen. Their accounts and records will be maintained separately as per the prescribed forms of taxmen. "For every person who has entered into international transaction or transactions, if the aggregate of value, which as recorded in the books of accounts, exceeds Taka 30 million during an income year, shall furnish, on or before the specified date in the form and manner as may be prescribed, a report from a chartered accountant," reads the transfer-pricing law. The law leaves the scope for the deputy commissioner of taxes (DCT) to impose the penalty of maximum 1.0 per cent of the value of each international transaction in case of failure to keep, maintain or furnish information, documents or records to him or failure in complying with the notice. The DCT can impose a penalty up to Tk 0.3 million for failure in furnishing report by chartered accountants (CA), says the TP law.


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Source: http://today.thefinancialexpress.com.bd/first-page/most-multinationals-dodge-tp-law-deprive-govt-of-due-taxes-1514396654

LOCAL RMG UNITS VIOLATE WORKERS RIGHTS SEVERELY The country's local garment factories those meet mainly domestic demand are running without rules and regulations, often violating workers' rights severely, according to a new study. More than half of the workers employed in those facilities are below 18 years, it says, while majority of the total employees are deprived of benefits like formal agreement, standard working hours and structured wage rate. The findings of a baseline study titled 'Countrywide Downstream Garment Industry in Bangladesh' were revealed at a roundtable discussion at the National Press Club, organised by Bangladesh Labour Welfare Foundation (BLF) Wednesday. Inspector General (IG) of the Department of Inspection for Factories and Establishment (DIFE) Md. Shamsuzzaman Bhuiyan attended the meeting as the chief guest while president of Bangladesh Jatiya Sramik League Sukur Mahmud attended as the special guest. BLF Chairman Abdus Salam Khan presided over the discussion, moderated by its secretary general Z M Kamrul Anam. Researcher A M Rasheduzzaman Khan presented the study findings. The study was conducted in four regions -- Keraniganj (Dhaka), Narayanganj, Saidpur (Nilphamari) and Chittagong. There are 8,500 local apparel manufacturing facilities in Keraniganj, 1,081 in Narayanganj, 592 in Chittagong and 954 in Saidpur. It said a total of 64,897 establishments were operating in the country. The downstream readymade garments (RMG) factories use various inputs including from local sources and, leftover fabrics and accessories of the export-oriented RMG factories. Usually run by 5-50 workers, these factories manufacture wide range of products to cater to the demand in price-sensitive market segments. Usually the overall atmosphere, security, safety and sanitation issues are overlooked by the factory owners, according to it. The study also found that 52 per cent of the workers in those factories are child labourers while 33.6 per cent male aged between 15 and 17 years. Boys aged below 14 years comprise 7.3 per cent of total employment. Girls aged between 15 and 17 years comprise 10 per cent of the total workers. No worker at the local garment factories enjoys the institutional practice like contract agreement, standard wage rate, regular working hours, identity card and casual leave. Only 1.0 per cent of the workers enjoy annual leave while 24 per cent enjoy weekly rest.Around 97 per cent of the female workers enjoy maternity leave. Even, 99 per cent of the workers do not have annual leave and 80 per cent do not have festival leaves. More than half (57.80 per cent) of the workers get their wages based on piece rate. The study said there was no trade union in the surveyed apparel hubs, except Keraniganj, though a union is a vital platform for safeguarding the workers' interests. The study recommended the government to recognise the local garments factories as an industry for ensuring the workers' rights and workplace safety. Speaking on the occasion, Shamsuzzaman Bhuiyan said that these factories were operating under no formal rules and regulations. "We shall have to shut each of the factories, if we apply the existing labour law," he said. Children below 14 years are in no way allowed to work in a factory, said Mr Zaman, adding that a huge number of young people were working at those facilities. Source: http://today.thefinancialexpress.com.bd/last-page/local-rmg-units-violate-workers-rights-severely-1514397187

http://today.thefinancialexpress.com.bd/first-page/most-multinationals-dodge-tp-law-deprive-govt-of-due-taxes-1514396654http://today.thefinancialexpress.com.bd/first-page/most-multinationals-dodge-tp-law-deprive-govt-of-due-taxes-1514396654http://today.thefinancialexpress.com.bd/last-page/local-rmg-units-violate-workers-rights-severely-1514397187http://today.thefinancialexpress.com.bd/last-page/local-rmg-units-violate-workers-rights-severely-1514397187


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BB ISSUES SHOW-CAUSE NOTICE AGAINST PCB The central bank issued a show-cause notice against a leading private commercial bank (PCB) on Wednesday for allegedly providing misleading information on foreign exchange rate, particularly for exporters. The PCB, headquartered at Tejgaon Industrial Area in Dhaka, was also asked to explain their position on differentiate reporting of foreign exchange rate - particularly TT (Telegraphic Transfer) clean to the Bangladesh Bank (BB) by December 31. In the notice, the central bank asked the Managing Director (MD) and Chief Executive Officer (CEO) of the third-generation bank as to why the BB should not take actions against the bank in line with the existing Banking Companies Act. Earlier on Tuesday, the bank reported on their BC (Bill for Collection) selling rate Tk 83.20 while TT clan was Tk 82.20 to the central bank, using 'web-link' by 11 am on the day. The bank, however, purchased the US dollar at Tk 83.35 in the name of 'corporate purchase' from exporters of other two PCBs, according to the market insiders. The rate was not reported to the central bank, they added. "We've issued the show-cause notice to the bank on the basis of allegations, submitted by the two PCBs to the central bank," a BB senior official told the FE. He also said the central bank will take the next course of action after receiving clarification from the bank. "The bank has breached its previous commitment through providing misleading information on foreign exchange rate, particularly for TT clean to the central bank," the central banker explained. Earlier on November 30, the PCB gave formal commitment to stay alert in this regard in future. The central bank earlier served show-cause notices to 26 banks including the PCB in three phases, asking them to explain their positions on differentiate reporting of foreign exchange rates -particularly BC (Bills for Collection) selling to the BB within two working days. The demand for the US dollar is gradually increasing, mainly due to higher import payments pressure -particularly of capital machinery, petroleum products and consumer items, including food grains, according to the market operators. The central bank has provided its foreign exchange support continuously through selling the US dollar to the banks for settlement of the import bills. As part of the move, the central bank directly sold US$ 45 million at market rate to three commercial banks on Wednesday to meet the growing demand for the greenback. The US dollar was quoted at Tk 82.70 in the inter-bank forex market on the day unchanged from the previous level. "Such liquidity support may continue in line with the market requirement," another BB official hinted. The BB has resumed providing the foreign exchange support in the recent months through selling of the US currency to the banks directly to keep the market stable. A total of $1.02 billion was sold since July 01 of this fiscal year, 2017-18, to the commercial banks as part of its ongoing support, according to BB's latest data. Source: http://today.thefinancialexpress.com.bd/last-page/bb-issues-show-cause-notice-against-pcb-1514397250

BD ONE OF LOWEST ASIAN AGRI PRODUCE PROCESSORS Bangladesh is one of the bottom-ranked countries in Asia in terms of processing agricultural produces that makes a strong bite on the country's export earnings from farm sector, according to a latest study.

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It also said post-harvest loss here is 43 per cent, which is also the highest among the competitive countries. It is raising production cost of the farmers as well as cost of processed foods, and making an adverse impact on the country's agri-economy. Department of Food Technology and Rural Industries under Bangladesh Agricultural University (BAU) conducted the study titled "Efficient and nutrition sensitive post-harvest transformation and value addition to agro processed products in Bangladesh". It revealed that the highest 1.0 per cent fruits and vegetables are processed into various products by more than 800 processors in Bangladesh. In the competitor countries like Vietnam it is about 5.0 per cent, India 2.0 per cent, Sri Lanka 4.5 per cent, and in the Philippines 31 per cent. Malaysia is the top ranked country with 83 per cent, while Thailand processes 73 per cent of its agro produces, and China 38 per cent, said the research findings. The findings of the study were disclosed at a press conference, organised recently by Bangladesh Agro Processors' Association, on nutrition responsive post-harvest technology and value addition in agro produces. Prof Dr M Burhan Uddin of BAU, who conducted the study, told the FE that the contribution of processed products to the country's Gross Domestic Product (GDP) is 2.0 per cent, where in Thailand it is about 7.4 per cent, in the Philippines 10.4 per cent, and in Sri Lanka 7.4 per cent. Only 20-25 processing industries export some of their processed products, which include pickles, jam, jellies, chutneys, sauces, juices, puffed rice, and drinks etc worth US $220-250 million annually. He further said Vietnam exports processed agro products worth $2.0 billion, while Thailand exports more than $5.0 billion. "Our exports are not increasing compared to the competitors, as we could not raise the volume of processed products and their diversities." He said if the country can process at least 5.0 per cent of the farm produces, its export can rise to more than $2.0 billion. Dr Md Azhar Ali, Additional Director of Plant & Quarantine Wing under Department of Agriculture Extension (DAE), told the FE that export of raw agro produces has gradually becoming critical amid imposition of various quarantine rules and regulations by different nations. He said the country should maximise its volume of processed food items to avoid such problems. Md Masudur Rahman, General Secretary of BAPA, told the FE that the country's 500 processors now export items to 66 different countries in the world. He also said the government's more support is needed to increase the number of agro processing units. Despite being agro-based industries, the processors are yet to get loan at single digit interest rate. The government should provide suitable lands to the processors for boosting their production. Besides, a central libratory is needed, which can be set up through Public Private Partnership (PPP) initiative, to minimise harassment and raise exports, he added. Md Sharifur Rahman, proprietor of M/S Shohan Enterprise, told the FE that air cargo facilities should be increased manifold. He said Bangladeshi exporters count Tk 190-213 to ship per kg products, whereas it is only Tk 40-50 for the exporters of Thailand and Vietnam. Bangladesh exports agro produces worth $600 million annually, of which the processed products contribute $220-250 million. The major destinations for Bangladeshi products are the UK, Saudi Arabia, and other Middle East countries, Thailand, India, Oman, Korea, Bahrain, Japan, South Africa and the US. Source: http://today.thefinancialexpress.com.bd/last-page/bd-one-of-lowest-asian-agri-produce-processors-1514397375

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CITY BANK ARRANGES $15M TO SUPPORT SME, RMG PORTFOLIOS City Bank has recently arranged USD 15 million funds from Oesterreichische Entwicklungs bank AG (OeEB), the Austrian Development Bank to support the growing need of the Bank's SME, RMG and Offshore Banking portfolios. A Financial Closure Ceremony was organised in Vienna, Austria where City Bank Managing Director & CEO Sohail R. K. Hussain, OeEB Executive Director Andrea Hagmann and Managing Director, Investment Finance Division Sabine Gaber signed a financing agreement on behalf of their respective organisations, said a statement. Source: http://today.thefinancialexpress.com.bd/stock-corporate/city-bank-arranges-15m-to-support-sme-rmg-portfolios-1514390306

STOCKS FINISH HIGHER AS LAFARGE KEEPS GAINING Stocks extended the winning streak for the two consecutive sessions Wednesday as investors continued their buying appetite on selective large-cap stocks, especially Lafarge Surma Cement. Lafarge, the multinational cement maker, dominated the day's turnover chart with 16.02 million shares worth Tk 1.13 billion changing hands. It also topped the day's gainer chart, soaring 7.16 per cent to close at Tk 70.30. Share prices of Lafarge soared 36.77 per cent or Tk 18.90 each in the past four consecutive sessions after the acquisition news of Holcim Bangladesh. Riding on Lafarge, the total turnover on the premier bourse rose to Tk 5.52 billion, which was nearly 49 per cent higher from the previous day's Tk 3.71 billion. Market insiders said as Lafarge is the seventh largest market-cap listed company in Bangladesh, its price movement affected the overall market. The market started the day on positive movement and at the middle of the session, it saw sale pressure. However, the market observed heavy buy pressure, especially, Lafarge and Olympic Industries and subsequently recovered the incurred loss and ended in the green zone. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 6,186, gaining 18.89 points or 0.31 per cent over the previous day. "The capital market observed a winning session amid optimism. The core index remained upward throughout the session with some correction in the middle," commented EBL Securities, a stockbroker, in its regular market analysis. The stockbroker noted that investors buying pressure continued on sector-specific stocks from cement, food & allied and banking sector. The two other indices also closed higher. The DS30 index, comprising blue chips rose 16.46 points or 0.73 per cent to close at 2,261. The DSE Shariah Index (DSES) advanced 7.58 points or 0.55 per cent to finish at 1,379. According to LankaBangla Securities, index started the day with positive movement, but fell down after an hour of trading. However, during the final 30 minutes, the index moved up again and closed in green." The stockbroker noted that the movement in index has largely been contributed by the market-cap movement of Lafarge. A total of 20.52 per cent of the day's market turnover was generated by Lafarge. The market turnover got some boost after experiencing drought in the last few sessions and reached Tk 5.52 billion, led by Lafarge. However, the losers took a strong lead over the gainers as out of 335 issues traded, 191 closed lower, 91 closed higher and 53 remained unchanged on the DSE trading floor.

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The large-cap sectors showed mixed performance. Food & allied sector witnessed the highest gain of 1.94 per cent, followed by banking sector with 0.85 per cent, telecommunication 0.26 per cent and power 0.01 per cent. Lafarge topped the day's turnover chart with 16.02 million shares of Tk 1.13 billion changing hands, followed by Olympic Industries, Islami Bank, City Bank, Paramount textile and Nahee Aluminium. Lafarge was the day's best performer for the second day in a row, posting a gain of 7.16 per cent while Progressive Life Insurance was the day's worst loser, shedding 7.60 per cent. Chittagong Stock Exchange (CSE) also edged higher with CSE All Shares Price Index of advancing 39 points to finish at 19,123. The Selective Categories Index of the port city bourse -- CSCX -- also gained 26 points to settle at 11,562. Losers beat gainers as 133 issues closed lower, 70 closed higher and 37 remained unchanged on the CSE. The port city bourse traded 18.14 million shares and mutual fund units worth Tk 671 million. Source: http://today.thefinancialexpress.com.bd/stock-corporate/stocks-finish-higher-as-lafarge-keeps-gaining-1514390392

DHAKA TO IMPORT 1.4M TONNES OF CRUDE OIL FROM S ARABIA, ABU DHABI Bangladesh will import 1.4 million tonnes of crude oil from Saudi Arabia and Abu Dhabi for the current fiscal year 2017-18 to meet the domestic requirement, reports UNB. Cabinet Committee on Public Purchase on Wednesday approved two separate proposals placed by the Energy and Mineral Resources Division in this regard. Cabinet Division additional secretary Mustafizur Rahman said that the bulk petroleum will be imported under the government-to-government contracts and about Tk 49.01 billion would be spent for the imports. The committee, with Finance Minister AMA Muhith in the chair, also approved a number of procurement proposals placed by different ministries. A proposal of the Home Ministry to purchase two tag boats for the Coast Guard received the nod of the committee. Bangladesh Navy-operated Khulna Shipyard will build and supply the two tag boats at a cost of Tk 51.41 billion. The committee gave nod to a proposal of Bangladesh Chemical Industries Corporation (BCIC) to import 100,000 metric tonnes of granular bagged urea fertiliser on an emergency basis. Of these, South Korean Posco Daewoo will supply 25,000 tonnes through Chittagong port and 25,000 tonnes through Mongla port while Potton Traders of Dhaka will supply the remaining 50,000 tonnes through Chittagong port. Import of each metric ton of fertiliser through Chittagong port will cost $310 while the import of each metric ton of fertiliser through Mongla port will cost $319.50. The total import of 100,000 tonnes of fertiliser will cost Tk 2.59 billion (259.13 crore). The committee approved two proposals of Energy and Mineral Resources Division to procure some equipment and drilling works for Kashba-1 and Begumganj-3 gas wells under the Speedy Enhancement of Power and Energy Supply (Special) Act. The committee also approved a cost extension proposal for rehabilitation work of Kalukhali-Vatiapara section of rail lines and new construction work of Kashiani-Gopalganj-Tungipara rail tracks. Source: http://today.thefinancialexpress.com.bd/trade-market/dhaka-to-import-14m-tonnes-of-crude-oil-from-s-arabia-abu-dhabi-1514392710

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GOVT BEHIND SCHEDULE TO LAUNCH SOME PROJECTS Although the government was determined to inaugurate some special telecommunication services, including the launch of the country's first satellite Bangabandhu-1, introducing 4G internet service and Mobile Network Portability System by the end of 2017, the big projects failed to take off for some unavoidable complexities, reports UNB. The launch of the country's much-hyped satellite, scheduled to be launched from Cape Carnival Launch Pad in Florida, USA on the Victory Day, was postponed as the Hurricane Irma caused havoc in Florida in early September. Now, the satellite, having a capacity of 1,600 megahertz and 40 transponders, will be launched in March, 2018, said State Minister for Posts and Telecommunications Tarana Halim. Talking to the news agency, Tarana said, "We'll start celebrating on March 1 throughout the country marking the launch of the first-ever Bangladeshi satellite. Thousands of billboards will be set up as part of the campaign to inform the country's people of the benefits of the satellite." Prime Minister Sheikh Hasina will launch the satellite through a videoconference from Bangabandhu International Convention Centre here, she added. At the beginning of 2017, the State Minister said the 4G internet service will be introduced in the country by the end of the year. However, the ministry could not maintain the deadline despite having approval from the Prime Minister as the mobile phone operators set some 23 conditions over the guideline made for introducing the high-speed internet service. "Most of the conditions, excluding one or two, have already been disposed of in consultation with the mobile phone operators. Some major changes have been brought in the guideline taking approval from the PM," said Tarana. The service will finally be introduced in February, 2018. Bangladesh Telecommunication Regulatory Commission (BTRC) fixed January 14 as the last date for submitting the application to get licence for providing 4G service, said BTRC Chairman Dr Shahjahan Mahmood. The auction for selling the spectrum of the 4G service will be held on February 14, Mahmood added. Two overseas companies have expressed interest to take part in the auction and submit application to get licence, said the BTRC boss. However, he did not disclose the names of the two foreign companies. Posts and Telecommunications Ministry had also set a target to install Mobile Network Portability System by the end of 2017. However, the service will now be inaugurated in April, 2018. On November 30, the BTRC handed over the licence to Infozillion BD Teletech Consortium Ltd, a joint venture of Bangladesh and Slovenia, for implementing the much-awaited MNP service. Once installed, the quality of the mobile network service will increase, Tarana expressed hope. The MNP service that enables the mobile telecom customers to change operators without changing the numbers has already been introduced in 72 counties, including India and Pakistan. On the other hand, the government successfully completed SIM card registration process through Biometric system within this year aiming to reduce terrorist activities through mobile phone. Source: http://today.thefinancialexpress.com.bd/trade-market/govt-behind-schedule-to-launch-some-projects-1514392734

BB URGES ALL TO ABSTAIN FROM TRANSACTIONS OF VIRTUAL COINS Bangladesh Bank (BB) has requested all to abstain from online-based virtual currency or crypto currency, like bitcoin, ethereum, ripple and litecoin as there is no legal framework of the currencies in any country across the world, reports BSS. "Virtual currency is not legal in any country. So no one can have financial claim to any authority against the transactions through the currency," said a BB's recent notice.

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Virtual currency is not recognised by the central bank or any other agencies of the Bangladesh Government, said the BB notice. The notice said virtual currency transactions take place through online-based networks, which is not approved by any central authority or by the payment system that controls authority. Therefore, the clients may be affected, it added. Source:http://www.theindependentbd.com/post/130102

NO CHEER FOR CEMENT INDUSTRY IN 2017 The price hike of raw materials, the depreciation of local currency and intense competition among too many makers have hit the cement industry hard in the outgoing year, market players said. Even the ongoing mega infrastructure projects are failing to bring the cement manufacturers much cheer these days. In 2017, the average price of cement went down by Tk 15 a bag to Tk 385 despite a significant increase in production costs, according to industry insiders. The industry's sorry state of mind is also reflected in the stock market. Seven cement companies are listed on the Dhaka Stock Exchange and their prices were on a decline -- though most shares and the overall index grew more than 20 percent in value in the outgoing year. Bangladesh is too dependent on imported raw materials, and the price hike of these items along with the adverse exchange rate has affected the cement sector in 2017, said PN Iyer, managing director of Siam City Cement (Bangladesh) that manufactures the Insee brand of cement. The Bangkok-based cement manufacturer started operations in Bangladesh last year by acquiring Cemex. The import prices of clinker and other raw materials have gone up due to the surge in global fuel price, according to Iyer, also the chief executive officer of Siam City Cement (Bangladesh). For example, the price of clinker rose to $43.2 a tonne in October from $40.2 in January. Similarly, during the period, the prices of gypsum shot up to $26.4 from $20.4 and slag to $25.9 from $22.6. In addition, the depreciating local currency against the US dollar has been eroding our competitiveness further, Iyer added. A US dollar is now being sold at more than Tk 83. A year ago, it was less than Tk 80. The inception of cement industry in Bangladesh dates back to the 1950s but its growth in the real sense took off only about a decade ago. Until 1990, about 95 percent of the country's demand for cement was met through imports. Now, Bangladesh exports cement, albeit on a limited scale. Since 1994, more than 120 companies were registered with the Board of Investment as cement manufacturers, but eventually about 75 went into production. Later, many of them, especially the small ones located in Mongla, Khulna, Jessore and the North Bengal areas, shuttered for their lack of financial muscle to compete with the big players, rising production costs, disadvantageous location and shortage of utility supply. Now, the market is dominated by global giants like Holcim, Lafarge, Insee and Heidelberg and sure-footed local players. Bangladesh's annual demand for cement is estimated to be about 25 million tonnes, according to industry insiders.

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But, the combined effective production capacity of the active cement manufacturers is more than 43 million tonnes and the installed capacity is nearly 50 million tonnes. Yet, some makers continue to expand their capacity in anticipation of spiralling demand in future. For instance, this year, manufacturers such as Aman and Crown have increased their capacity by 3.2 million tonnes and 1.1 million tonnes respectively. And some other makers -- Shah Cement, Shun Shing Group and Premier -- are working to enhance their capacity in the incoming year. The market is oversaturated and yet the big players are on an expansion spree, said Shankar Roy, adviser of Crown Cement and a former general manager of Holcim Bangladesh. We are in a dilemma as we cannot pass on the increased production costs to customers due to huge competition, he added. Additionally, Mostafa Kamal, chairman of Meghna Group of Industries that owns Fresh Cement, pointed out the government move to limit the weight on the roads and highways as another blow for the cement manufacturers. We used to carry 400 bags of cement in a truck. Now, we cannot take more than 200 bags. Source: http://www.thedailystar.net/business/no-cheer-cement-industry-2017-1511329

BANGLADESH AGAIN DENIED GSP Bangladesh's trade privilege in US markets has been again denied as President Donald Trump's administration goes on to enforce the trade preference programme's eligibility this week. The Generalised System of Preferences (GSP) facility for Bangladesh was suspended in June 2013 after the Rana Plaza building collapse in April, the reasons cited being poor labour rights and unsafe working conditions in factories. The then Obama administration also gave 16 conditions to be fulfilled for regaining the trade privilege. Bangladesh fulfilled the conditions and twice submitted reports to United States Trade Representative (USTR). But the US has not been reinstating the trade privilege, now citing poor labour rights. Moreover, in this year's review, Bangladesh could not come out from the list of countries suspended from GSP benefits although some active decisions were taken in the trade preference enforcement programme in 2017. For example, Argentina was being reinstated to the GSP programme, effective from January 1, 2018, following resolution of certain arbitral disputes with US companies. The US also restored the trade benefits to The Gambia and Swaziland under the African Growth and Opportunity Act. President Trump has sent a clear message that the United States will vigorously enforce eligibility criteria for preferential access to the US market, said Ambassador Robert E Lighthizer, the USTR and chief trade negotiator for the Trump administration, in a statement on December 22. Beneficiary countries choose to either work with USTR to meet trade preference eligibility criteria or face enforcement actions. The administration is committed to ensuring that other countries keep their end of the bargain in our trade relationships, according to the statement. We do not expect reinstatement of GSP to the US market anymore as the American government has been giving newer conditions to be fulfilled by Bangladesh, said a senior official of the commerce ministry asking not to be named. Even though the 16 conditions had been fulfilled, the US is now demanding changing the labour law for the factories, housed in the export processing zones (EPZ), which is contradictory to the main guidelines of the EPZ law, the official said. Moreover, Bangladesh has already submitted the draft copy of the proposed amendment of the labour law to International Labour Organization for its expert committee's opinion.

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Workplace safety in Bangladesh has already been applauded all over the world after the inspection and remediation of the garment factories by the Accord and Alliance through fixing the loopholes in structural, fire and electrical aspects, the official said. The US is the single largest export destination for Bangladesh. As a least developed country, 97 percent of goods originating from Bangladesh enjoy duty-free benefits on export to US markets as per the decision of the Hong Kong Ministerial Meeting of World Trade Organization in 2005. However, the country's main export item, garments, has not been included in this 97 percent package although garment items comprise 95 percent of Bangladeshi exports to the US in a year. As a result, Bangladeshi exporters face 15.62 percent duty on export of apparel items to the US markets although some competing countries like China, Vietnam, Pakistan and India face much less. The US government does not allow GSP on apparel items from any country and the duty differs from one country to anohter. In 2012, the total value of imports from Bangladesh to US under GSP was $34.7 million. The top imports under GSP from Bangladesh included tobacco, sports equipment, porcelain china and plastic products. The GSP programme saved American companies nearly $730 million in import duties in 2016 and is on track to save even more in 2017, according to American Apparel Footwear Association (AAFA). When GSP expired from August 2013 to July 2015, US companies paid $1.3 billion extra in taxes while awaiting congressional reauthorisation, AAFA said. Source: http://www.thedailystar.net/business/bangladesh-again-denied-gsp-1511323

BACCHU'S COMPANY ACCOUNT UNDER ACC SCANNER The Anti-Corruption Commission has started investigations into the financial transaction of an account named Eden Fisharies that is owned by the disgraced former BASIC Bank Chairman Sheikh Abdul Hye Bacchu. Bacchu, who joined BASIC in September 2009, registered Eden Fisharies with the Registrar of Joint Stock Companies and Firms as a business entity in December 2010. Despite no business activity, the company account saw a total of Tk 13 crore deposited in it between 2012 and 2013, according to a bank statement. The Daily Star has obtained a copy of the statement. ACC will investigate the source of money that went into the account, said Pranab Kumar Bhattacharjee, deputy director of ACC. Bacchu opened the company listing his family members -- wife Shiekh Shirin Akhter, daughter Sheikh Rafa Hye and son Sheikh Abdul Hye Anik -- as directors, according to the RJSC. The office address provided to the RJSC was: 42/1-Ka, Jahan Plaza, 3rd floor, Shegunbagicha, Dhaka. But, no office was found at the address. Then another address was used to open the bank account with the Motijheel branch of a foreign bank: House-2/2A, Road-4, Flat-2-5A, DOHS (OLD), Banani, Dhaka. It turned out to be the residential address of Bacchu, who was forced to step down from his role at BASIC in July 2014. The account is now under the scanner of the ACC. The bank statement shows a large number of transactions in the account between September 2012 and August 2013. In February 2013, more than Tk 3 crore entered the account by way of cheques and cash deposits. On May 16, 2013, a total Tk 5 crore was deposited through two cheques. Two days later, Tk 1 crore was withdrawn. An inspection conducted by the Bangladesh Bank in 2013 found irregularities in approving loans amounting to Tk 4,500 crore in four branches of BASIC Bank between December 2009 and November 2012. A part of the sum ended up in two bank accounts of two firms owned by Bacchu's younger brother Sheikh Shahriar Panna.

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This came to light through the findings of an investigation conducted by the Bangladesh Financial Intelligence Unit, the anti-money laundering unit of the central bank, in 2014. Source: http://www.thedailystar.net/business/bacchus-company-account-under-acc-scanner-1511320

COMPANIES GROW COLD ON IPOS Fund raising by way of initial public offering plummeted this year as low interest rates made borrowing from banks a more attractive alternative. A total of seven companies raised Tk 219 crore through IPO this year, in contrast to Tk 849 crore by 11 companies last year, according to data from the Dhaka Stock Exchange. As of October, the average lending rate stood at 9.39, down from 10.03 percent a year earlier, according to data from the Bangladesh Bank. The seven companies that raised capital in 2017 are: Shepherd Industries, Nurani Dyeing and Sweater, BBS Cables, Aamra Networks, Oimex Electrode, Nahee Aluminium Composit Panel and ICB AMCL First Agrani Bank Mutual Fund. Of the companies, only Aamra Networks raised funds through the book-building method, while the rest opted for the fixed price method. Under the fixed price, the company going public determines a fixed price at which its shares are offered to investors. In contrast, under the book-building method, the company going public offers a certain price band on shares to investors, who then bid on the shares. The final price is settled once the bidding has closed. The overhaul of the book-building methodology slowed down the IPO process in 2017, said M Khairul Hossain, chairman of the Bangladesh Securities and Exchange Commission. Many did not agree with the price bidding process under the new methodology, he added. IPOs became scarce in 2017 due to the drawn-out book-building method, said Mohammad Saleh Ahmed, chief executive officer of IIDFC Capital. Most of the companies are interested in coming to the market through the book-building method as the process allows companies to take premium. For instance, Aamra Networks took a premium of Tk 25 from the general public for each share of Tk 10. But the BSEC is not giving approval due to disputes in the price bidding process. About 30 companies are waiting for a year now to get the BSEC's approval, he said. Though the main objective of raising fund through the IPO is to expand business activities, six of the companies -- save for ICB AMCL First Agrani Bank Mutual Fund -- raised funds to clear bank loans. About 33 percent of the IPO proceeds of Aamra Networks' Tk 56.25 crore were used for loan repayment. Nahee Aluminium used 26.67 percent of its total IPO proceed for loan repayment, Oimex 33.33 percent, BBS cables 20 percent, Nurani Dyeing 27.44 percent and Shepherd 22.23 percent, according to DSE. Source: http://www.thedailystar.net/business/companies-grow-cold-ipos-1511305

BANK ASIA JOINS COCA-COLA'S WOMEN EMPOWERMENT PROJECT Bank Asia recently joined a Coca-Cola Bangladesh project to impart agent banking training among 25 successful women entrepreneurs of Jamalpur in the latter's Bhaluka plant in Mymensingh . The women are from a Coca-Cola project titled Women Business Centers (WBC), which aims to assist rural women into providing a variety of services supporting and developing their income generation capacities.

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Starting off in January 2015 with 10 WBC in Jamalpur, Khulna and Bagerhat districts, the project now has 40 WBC, having imparted knowledge on agricultural production, marketing, mobile balance recharge and photocopy and nutrition services to 40,000 entrepreneurs. Bank Asia from now on will support this project by training women into becoming its agents, helping communities at the farthest corners access financial and banking services. Tapas Kumar Mondal, managing director of International Beverage Private Ltd (Coca-Cola Bangladesh), thanked Bank Asia. As an agent of Bank Asia they could generate good income through their agent commissions, as the more they transact, the more financial rewards they are going to receive, said Humaira Azam, deputy managing director of Bank Asia. ...we are going to hand over their agent banking license very soon. We hope that it would be a very fruitful and mutually beneficial partnership for both of us, she added. Source: http://www.thedailystar.net/business/bank-asia-joins-coca-colas-women-empowerment-project-1511302

SOARING PRICES SAPPED CONSUMERS Abnormal price hike of daily essentials, from rice to garlic and salt to onion, remained a matter of worry for the consumers throughout the outgoing year, with traders and importers making whatever they could out of the situation amid allegations of lapses in monitoring by the government agencies concerned. Rights activists and market experts summed up 2017 as a horrible one from the point of view of consumers, especially the fixed and low income groups, because of 30 per cent hike in price of rice and over 200 per cent increase in price of onion in one year in addition to seasonal price hike of salt, spices, garlic, edible oils and government regulated gas and power prices. The upshot of price volatility in local commodities market left over 50 per cent of the countrys population living on less than $3 dollar income to struggle most part the year for buying food items that accounts 70 per cent of their daily income. At least 5.2 lakh people have fallen into poverty because of rice price hike which has also caused a rise in head count poverty rate by 0.32 percentage points in the past few months in the country, according to a study of South Asian Network on Economic Modelling released on December 23. Consumers Association of Bangladesh general secretary Humayun Kabir Bhuiyan said that the state-owned monitoring agencies could not fulfil the expectation of the consumers in checking the price hike of essentials, often caused by market manipulation by vested quarters. Consumers were simply frustrated and hapless as market did not function properly, he told New Age while making a brief assessment of the outgoing year. Volatility in price of essentials, first time since the previous food price shock during the military-backed caretaker administration in 2007-08, was created basically in absence of proper monitoring by state-owned agencies, he said. Lack of proper monitoring enabled many traders to make windfall profits during the passing year at the cost of consumers. Commerce minister Tofail Ahmed, who is facing severe criticisms following price hike of essential commodities, said on December 21 that 14 state-owned agencies were monitoring the local markets. Tightening monitoring on buying and selling price of imported products might lead to adverse situation, he claimed while talking to reporters on price hike at his secretariat office. He explained that traders associations were very powerful and might stop selling products. According to state-run Trading Cooperation of Bangladesh, onion was selling at Tk 120 a kilogram in December, marking 206.67 per cent increase from a year ago.

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The price of imported garlic recorded a 64.29 per cent rise to Tk 360 from Tk 220 during June, but more than 30 per cent rise in price of rice since August because of supply shortage amid losses of crop to prolonged floods was most tormenting for three quarters of the population. Tawfiqul Islam Khan, a researcher at Centre for Policy Dialogue, said that the low-income and fixed income groups spending bulk of their income on food items were main victims of food price shocks in the outgoing year. The groups have to compromise with expenses on medical and education to make up the higher cost of foods, he noted. He criticised as belated moves the steps of importing 15 lakh tonnes of rice by the Ministry of Food against the backdrop of falling food reserve in the public depots. Besides, reduction of import duty on rice from 28 per cent to only two per cent by the revenue board could not save the consumers from the exorbitant rice price hike that pushed up the monthly inflation in September to 6.12 per cent that according to the Bangladesh Bureau of Statistic was 23 months high, compared to 6.19 per cent in October 2015. Former executive director of Bangladesh Institute of Development Studies MK Mujeri observed that consumes suffering would continue if the state-owned monitoring agencies failed to function properly. He said the consumers did not see any activities from the Competition Commission that was established in 2016. Amid demand from many quarters the government passed a bill in parliament in 2012 and established the Competition Commission to ensure fair trade practices and check artificial price hike of commodities, a common phenomenon in a country like Bangladesh where traders and businessmen crowd the leading political parties. The presence of businessmen-turned-politicians in parliament almost doubled to 64 per cent in 2008 from 34 per cent in 1979, according to findings of Transparency International of Bangladesh in 2014. The commerce ministry officials alleged that bureaucratic exercise in providing manpower was the main obstacle for Competition Commission to start full-fledge operation. Experts are doubtful stability will come to the volatile commodities market in coming months against the backdrop of poor monitoring by the state-owned agencies. They note that keeping price of essentials at a tolerable level for majority of population will be the challenge for the government in the new-year. Source: http://www.newagebd.net/article/31304/soaring-prices-sapped-consumers

DEFAULTED INDUSTRIAL LOANS RISE BY 30PC IN JUL-SEPT The total defaulted industrial loans increased by 30 per cent to Tk 31,270 crore in the July-September period of this year from that of the same period of 2016, showed Bangladesh Bank data. Besides, total outstanding defaulted loan of bank and non-bank financial institutions increased to Tk 80,307 crore. The total defaulted loan, excluding the written-off loans, stood at Tk 74,148 crore at the end of June 30 this year. The classified loans, without write-offs, were Tk 73,409 crore as of March 31, 2017 and Tk 62,172.32 crore as of December 31, 2016. Bangladesh Bank officials said that the large amount of defaulted loans created a vulnerable situation for the countrys banking sector as the non-performing loans continued rising. The central bank must contain the rising trend in the classified loans at any cost in the greater interest of the countrys banking sector, otherwise the whole financial sector would plunge into a crisis in the months to come, they warned. Such crisis surfaced at Farmers Bank suffering from intense liquidity crisis as a significant amount of loan was defaulted, they noted.

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In July-September this year, banks and non-bank financial institutions disbursed Tk 81,344 crore. While the total outstanding industrial loan disbursement rose by 13.71 per cent to Tk 3,51,898 crore at the end of September this year against Tk 3,09,459 crore at the end of September, 2016. In July-September this year, defaulted loan in the large industrial sector increased by 41 per cent, medium industrial sector by 13 per cent and small industrial sector by 30 per cent. Defaulted loan of the private commercial bank increased the most as their total outstanding defaulted loan stood at Tk 14,161 crore as of September this year Tk 9,830 crore at the end of September, 2016. Besides, the defaulted loans in the state-run commercial banks increased by 23 per cent to Tk 13,064 crore at the end of September, 2017, while the figure was Tk 10,579 crore in September last year. Source: http://www.newagebd.net/article/31290/defaulted-industrial-loans-rise-by-30pc-in-jul-sept

BB URGES ALL TO ABSTAIN FROM TRANSACTIONS OF VIRTUAL COINS Bangladesh Bank has issued a cautionary notice asking all to refrain from transacting online-based unauthorised and illegal virtual or crypto currencies including Bitcoin. Transaction of Bitcoin, Ethereum, Ripple, Litecoin and similar types of virtual and crypto currencies are not approved by the central bank or any other regulatory bodies in the country, central bank said in the notice issued on Sunday and posted on its web site. The central bank said that it was informed that online-based virtual or crypto currency such as Bitcoin was being traded on different exchange platforms. These are also not legal currencies as these are not issued by any authorised authorities of any country in the world, the notice said. So, any financial claim against these currencies doesnt have any recognition, the notice read. Transactions online with pseudo partners through the currencies may cause an unintended violation of the existing money laundering and terrorist financing laws as it is not supported by any local law and regulation like Foreign Exchange Regulations Act-1947, Anti-Terrorism Act-2009, and Money Laundering Prevention Act-2012, according to the notice. Clients of these currencies may face different types of risks including financial and legal as all the activities including payment and settlement of transactions are completed through online networks with no recognition of any central authority or regulatory authority of payment system, the central bank said. In these contexts, Bangladesh Bank requested people to refrain from making transactions, helping others in transactions and publicising the issue to avoid possible financial and legal risks, according to the notice. Bitcoin, the world biggest digital currency, rose 15 per cent on Tuesday, recouping about half of the losses it sustained last week, after experiencing enormous volatility in prices over last few days. Global central banks and market regulators have been issuing repeated warnings over investment on the currency. Bitcoin fell nearly 30 per cent at one stage on Friday to $11,159.93. On Tuesday, bitcoin was up 15 per cent at $16,030 in light trading on the Luxembourg-based Bitstamp exchange. The digital currency had risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on December 17 on Bitstamp and to over $20,000 on other exchanges. Singapores central bank last week issued a warning against investment in cryptocurrencies, saying it considers the recent surge in prices to be driven by speculation and that the risk of a sharp fall in prices is high. Source: http://www.newagebd.net/article/31291/bb-urges-all-to-abstain-from-transactions-of-virtual-coins

http://www.newagebd.net/article/31290/defaulted-industrial-loans-rise-by-30pc-in-jul-septhttp://www.newagebd.net/article/31291/bb-urges-all-to-abstain-from-transactions-of-virtual-coinshttp://www.newagebd.net/article/31291/bb-urges-all-to-abstain-from-transactions-of-virtual-coins


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BTRC TO HOLD MEETING WITH STAKEHOLDERS ON VAS GUIDELINES The posts and telecommunications ministry has sent back the draft telecommunication value-added service guidelines prepared by the Bangladesh Telecommunication Regulatory Commission for revision. In August this year, the telecom regulator drafted the guidelines titled Regulatory Guidelines for Issuance of Registration Certificate for Providing Telecommunication Value Added Services in Bangladesh and published the guidelines on its web site seeking public opinion. At the same time, the BTRC forwarded the guidelines to the posts and telecommunications ministry for getting approval. The ministry, however, returned the draft guidelines asking the telecom regulator to take opinion from the stakeholders. Of the stakeholders, singers have been demanding that the BTRC should acknowledge their concern as the VAS providers do not give them any royalty for the use of songs rendered by them for different value-added services. Asked, BTRC chairman Shahjahan Mahmood told New Age that the ministry had returned the draft VAS guidelines to the BTRC. Now, the commission will hold meetings with the stakeholders including singers, so that the guidelines would become acceptable to all of them, he said. The commission will send a proposal in this regard to the posts and telecommunications ministry again after taking opinion from the stakeholders, Shahjahan said. Another BTRC official said that the dispute over the revenue sharing between the mobile phone operators and VAS providers were among other reasons for the ministrys opinion to hold consultation meeting with the stakeholders. Earlier, the BTRC had taken a couple of initiatives to formulate guidelines over the issue with the first initiative in 2012 and the second one in 2016. None of the initiatives of the regulator became successful amid strong oppositions from the mobile phone companies. The mobile phone operators and the VAS operators have been at loggerheads over setting revenue sharing between them amid initiative from the operators to lower VAS providers revenue from gross revenue. Against the backdrop of mobile phone operators initiative to reduce VAS providers revenue drastically, the government asked the operators to maintain status quo on VAS revenue sharing. As per the BTRCs latest draft guidelines, VAS providers will have to get registration certificate from the BTRC, while the application fee for registration and registration fee for a period of five years will be Tk 5,000 and Tk 50,000 respectively. Besides, VAS providers will have to share 5.5 per cent of their gross revenue with the government and have to deposit 1 per cent of their gross revenue to the governments social obligation fund. The regulator in the draft guidelines also said that no foreign or non-resident Bangladeshi investors would be allowed to hold the entire stake of a VAS providing entity. Value-added services are provided by a third-party company through the mobile phone networks. The mobile phone companies offer the basic telecom services like voice and data plans, but the other services like missed call alert, welcome tune, and various application-based services are provided by VAS providers. Source: http://www.newagebd.net/article/31293/btrc-to-hold-meeting-with-stakeholders-on-vas-guidelines

http://www.newagebd.net/article/31293/btrc-to-hold-meeting-with-stakeholders-on-vas-guidelineshttp://www.newagebd.net/article/31293/btrc-to-hold-meeting-with-stakeholders-on-vas-guidelines


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GAIN AEO STATUS BY BEING COMPLIANT: NBR The National Board of Revenue on Wednesday called upon businesses to prepare for gaining authorised economic operators or trusted traders status by being compliant with customs rules and regulations. At the opening session of an awareness workshop for the private sector, the tax authority said AEOs would get a set of benefits including the fastest delivery of goods with minimum or no scrutiny in ports. The revenue board arranged the workshop, to spread awareness and motivate private sector about the new trade facilitation scheme, at a city hotel. NBR chairman Md Nojibur Rahman said that businesses responsibility would be the most important and they would have to conduct fair trade for getting the status. Selection of AEOs would be an important task and customs would have to be cautious about selection of trusted traders for the journey, he said. He said that they had initially selected two compliant pharmaceuticals company for the pilot programme. Khairuzzaman Mazumder, chief of party of Bangladesh Trade Facilitation Agreement Project of the USAID, said AEOs would enjoy speedy release of goods from ports in both home and abroad. He added that demand for the AEO status was high in the neighbouring India. Dhaka Customs House commissioner, also head of NBRs AEO committee, Prakash Dewan said that they have already prepared a road map for ensuring proper implementation of the AEO programme. He said that the two pharmaceuticals companies was selected for the pilot programme after thorough scrutinisation of their export, compliance, management and accounting system, transportation of goods and other issues. Metropolitan Chamber of Commerce and Industry vice-president Golam Mainuddin said the AEO scheme would bring immense benefit for the business community. NBR member (customs mordanisation and international affairs) Kahondaker Aminur Rahman said AEO was a voluntary programme that businesses could avail for their own benefit. USAID and Asian Development Bank provide support to the NBR for implementation of the AEO programme. Source: http://www.newagebd.net/article/31292/gain-aeo-status-by-being-compliant-nbr

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daily news flash, 28th december, 2017 - ebl … news flash, 28th december, 2017 4 the private sector...

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