1 | P a g e

DSEX 5534.42 17.04 Gold (Ounce) $1269.50 Dollar 81.10 (Buy) 82.10 (Sell) REPO Rate (26/4/2017) 3.23%

CSCX 10407.11 18.32 Oil (Barrel) $49.19 Euro 87.52 (Buy) 91.77 (Sell) REPO Rate (25/4/2017) 3.16%

Source: DSE and CSE Source: yahoo finance Source: One Bank Limited Source: Bangladesh Bank (WAV)

National News ............................................................................................................................................................................ 1

DSE wants increased stake in clearing and Settlement Company .................................................................................................. 1

Take steps to flourish capital market: Experts ............................................................................................................................... 2

ADB, City Bank sign $5m loan agreement ...................................................................................................................................... 3

FBCCI to press for multiple VAT rates in jt meeting with NBR today ............................................................................................. 3

Businesses to continue fight for 7pc VAT rate: DCCI ...................................................................................................................... 5

Worrying volume of interest payment in the next fiscal ................................................................................................................ 6

Carbon tax likely in next budget ..................................................................................................................................................... 7

Offshore banking getting popular among investors ....................................................................................................................... 8

BB needs long-term policies for forex market: analysts ............................................................................................................... 10

High corporate tax hinders FDI, internal investment ................................................................................................................... 11

Telcos blame poor services on low spectrum............................................................................................................................... 13

First ever Financial Innovation Forum 2017 held on Saturday ..................................................................................................... 14

Watch out for Myanmar ............................................................................................................................................................... 15

সেলফ োফে ইন্টোরফেট সেবোর মলূয, অেত্য প্রচোরণোয় অযোমটব .................................................................................................................. 17

International News ................................................................................................................................................................... 19

US growth hits 3-year low in Trump's first quarter ...................................................................................................................... 19

British economy slows as Brexit talks, election loom ................................................................................................................... 20

Asian Development Bank is back in US dollar bond market ......................................................................................................... 22

National News

DSE wants increased stake in clearing and Settlement Company Dhaka Stock Exchange has proposed for market share-based allocation of shares of clearing and Settlement Company

between Dhaka and Chittagong stock exchanges by scrapping highest shareholding ceiling of 49 per cent for a bourse.

The bourse has already submitted the proposal on the draft Bangladesh Securities and Exchange Commission (Central

Counterpart) Rules, 2017 that was drafted by Bangladesh Securities and Exchange Commission on March 15, 2017.

Under the Central Counterparty rules, a clearing and settlement company would be formed for smooth settlement of

transactions which would take place at the bourses.

Besides, the country’s premier bourse also proposed that the commission should increase allocation of shares for the

bourse in the clearing and Settlement Company to 80 per cent from the BSEC proposed 70 per cent.

2 | P a g e

DSE in its proposal also said that bank, non-bank financial institutions and insurance companies should not be allowed

to hold shares of the company to be formed as such holding of shares by the entities would raise questions regarding

neutral functioning of the entity and create conflicts of interest as the entities used to raise funds from the capital

market.

Instead, only the stock exchanges, Central Depository Bangladesh Limited and strategic investors should only be

allowed to hold stake of the clearing and Settlement Company.

The commission in its draft rules allowed shareholding by banks, non-bank financial institutions and insurance

companies in the entity along with others.

Apart from that, reduction of strategic investors’ stake in the entity was proposed to 10 per cent from the BSEC drafted

25 per cent, while CDBL’s shareholding was proposed at 10 per cent.

On the other hand, the bourse proposed that the board size of the bourse should be limited to 10 members instead

of 11 members.

It said that of the 10 members of the bourse, four members should be independent directors instead of six members.

The clearing and Settlement Company should include two board members from DSE, one member from CSE as 90-95

per cent of total turnover at the capital market took place at DSE, it said.

The rest two posts should be fulfilled by the nominated directors from rest two shareholder category—CDBL and

strategic investors— and managing director would be director of the entity by default, the bourse proposed.

The bourse also proposed that the initial paid-up capital of the clearing company should be set at Tk 100 crore instead

of Tk 500 crore.

Source: http://www.newagebd.net/article/14523/dse-wants-increased-stake-in-clearing-and-settlement-company

Take steps to flourish capital market: Experts Only 10 per cent capital comes from the capital market while the banking sector provides 90 per cent, say economists

and stock market experts.

Observing that this is not a good sign for the country’s economy, they underscored the need for taking steps to flourish

the capital market with the view to changing this trend for the sake of sustainable development.

Chartered Financial Analysts (CFA) Society and Economic Reporters Forum (ERF) jointly organised the workshop held

in the city on Saturday.

CFA Society President Shahidul Islam chaired the workshop. Adviser of the former caretaker government Dr AB Mirza

Azizul Islam was present as the chief guest.

Mirza Azizul Islam said that the capital market is very small comparing to the size of the country’s economy.

But it must be flourished for the sake of the sustainable development of the country, he said, adding that if the capital

market is flourished, the lion portion of the country will come from it.

He observed that many companies in the stock markets are not performing properly. As these companies are failing

to make profits or the management and entrepreneurs of these companies are taking away money by showing them

as non-profit organisations.

http://www.newagebd.net/article/14523/dse-wants-increased-stake-in-clearing-and-settlement-company

3 | P a g e

Prof Lutfi Siddique of London School of Economics and Political Science, who was present and spoke, suggested small

investors to consider good governance, profile and boards of directors before making investment in stocks of any

company.

Arif Khan of IDLC Finance, ERF General Secretary Md Ziaur Rahman and CFA’s Bangladesh Vice-president

Moniruzzaman also attended the workshop and spoke.

Source: http://www.thefinancialexpress-bd.com/2017/04/29/68566/Take-steps-to-flourish-capital-market:-Experts

ADB, City Bank sign $5m loan agreement The Asian Development Bank (ADB) and City Bank yesterday signed a $5 million loan agreement to support import and

export financing for Bangladeshi businesses.

The Trade Finance Programme (TFP) of the ADB will provide trade loans under the deal to City Bank to on-lend to local

firms, the Manila-based lender said in a statement.

“We are pleased to be growing the partnership with City Bank and to support more trade, which is directly linked to

job creation and economic growth,” said Edward Faber, TFP relationship manager for Bangladesh.

“With ADB's backing, City Bank will be able to increase its financial support to local companies, including small and

medium businesses,” Faber said. City Bank became a partner bank in ADB's TFP in early 2016 under the TFP's guarantee

product. Since then, ADB and City Bank have worked on eight transactions together valued at $15 million.

“City Bank signed the Trade Finance Guarantee Facility agreement last year and our relationship with ADB has been

stronger since then,” said Sohail RK Hussain, managing director of City Bank.

“As City Bank's vision is to be the financial supermarket, we believe that our participation in this revolving credit

agreement will help us offer diversified and competitive trade finance products and services to our customers," he

said.

The TFP has been operating in Bangladesh since 2005 and currently works with 14 local partner banks. To date, the

programme has supported over 1,700 transactions, for almost $2.5 billion in trade in Bangladesh.

City Bank is one of the oldest private commercial banks in Bangladesh with total assets at about Tk 260 billion as of

December 2016 and an extensive network of 120 branches all over Bangladesh.

The ADB TFP, backed by ADB's AAA credit rating, provides guarantees and loans to over 200 partner banks to support

trade, enabling more companies throughout Asia to engage in import and export activities.

Source: http://www.thedailystar.net/business/adb-city-bank-sign-5m-loan-agreement-1397581

FBCCI to press for multiple VAT rates in jt meeting with NBR today The Federation of Bangladesh Chambers of Commerce and Industry at today’s joint budget consultative meeting is

going to press for its demand for multiple rates of value-added tax based on value addition in different sectors instead

of the 15 per cent set in the new VAT law for all goods and services.

The apex trade body will also demand setting VAT at 0.5 per cent for retailers and shopkeepers in the new law,

according to the FBCCI budget proposals which will be placed before the meeting where finance minister Abul Maal

Abdul Muhith will be present.

http://www.thefinancialexpress-bd.com/2017/04/29/68566/Take-steps-to-flourish-capital-market:-Expertshttp://www.thedailystar.net/business/adb-city-bank-sign-5m-loan-agreement-1397581

4 | P a g e

The National Board of Revenue and the FBCCI every year jointly arrange the meeting to discuss the demands from the

business community for the next national budget.

The FBCCI has already submitted a set of 424 proposals related to new VAT act and rules, customs duty and income

tax to the revenue board for consideration for the upcoming national budget for the fiscal year 2017-2018.

According to the proposals, the FBCCI recommended increasing the tax-free income ceiling for individual taxpayers to

Tk 3.25 lakh from the current Tk 2.5 lakh and introduction of the lowest rate of income tax at 5 per cent which is now

10 per cent.

The apex trade body also demanded reducing corporate income tax rates to 22.5 per cent for publicly listed companies

and to 30 per cent for non-publicly listed companies, which are now 25 per cent and 35 per cent respectively.

Corporate tax rate for publicly listed banks should be lowered to 37.5 per cent and for non-publicly listed banks to 40

per cent from the current 40 per cent and 42.5 per cent respectively, it said.

The new VAT and Supplementary Duty Act-2012 which is set to come into effect from July 1 is expected to dominate

the discussion at this year’s meeting as most of the trade bodies are opposing the uniform 15 per cent rate of VAT

stipulated in the law.

Under the law, 15 per cent VAT will be imposed on almost all goods and services, many of which enjoy either full VAT

exemption or reduced rates under the existing law, on the total value of taxable import and taxable supply.

The FBCCI said that the VAT system would become an excise duty if the 15 per cent VAT was imposed on total sales

price.

VAT should be only on the value-added portion of the sales value and this is the basic principal of VAT system, it said.

The federation will demand amendment to the new law to make the VAT system friendly to small and medium

enterprises and traders.

On the other hand, 15 per cent VAT is much higher for many sectors.

The FBCCI proposals also include setting the VAT rate at 1.5 per cent on sales of residential apartments calculating the

15 per cent VAT based on 10 per cent assumed value addition.

In the same manner, the VAT rate should be 0.75 per cent for iron and steel products such as rod, 1.5 per cent for

jewellery sector, brick kiln and supply of land for construction of residential apartments.

VAT rate should also be 4.5 per cent for those businesses who will not be able to enjoy input credit benefit, it said.

The FBCCI will also demand increasing the VAT-free annual turnover limit to Tk 50 lakh and the upper ceiling on annual

turnover for imposing turnover tax to Tk 5 crore from the current limit of Tk 30 lakh

and Tk 80 lakh respectively.

Generally, the rate of turnover tax will be 3 per cent with scope for adjustment with VAT paid in advance but for

traders the rate should be 2 per cent.

The apex chamber also recommended offering 10 years tax holiday facility for investors in the special economic zones.

The FBCCI also proposed the government to continue zero and 1 per cent duty on the existing products and to keep

supplementary duty on import of locally produced products to protect the local industry from uneven competition

from imported goods.

Source: http://www.newagebd.net/article/14567/fbcci-to-press-for-multiple-vat-rates-in-jt-meeting-with-nbr-today

http://www.newagebd.net/article/14567/fbcci-to-press-for-multiple-vat-rates-in-jt-meeting-with-nbr-today

5 | P a g e

Businesses to continue fight for 7pc VAT rate: DCCI The Dhaka Chamber of Commerce and Industry on Saturday reiterated its demand for a reduction in value-added tax

rate to 7 per cent from the 15 per cent set in the new VAT act which is scheduled to come into force from July 1 this

year.

‘Businesses will continue their fight for the VAT rate reduction until their demand is met,’ said DCCI president Abul

Kasem Khan at a press briefing the chamber body arranged at its office in Dhaka to place their budget proposals for

the next fiscal year.

The single VAT rate (15 per cent) will increase inflationary pressure on consumers as well as put a negative impact on

the overall economy by reducing production as demand will slow due to prices hike of many goods, Kasem said.

The NBR can boost revenue collection through expanding its VAT net instead of raising VAT rate, he said.

He also demanded an increase in the VAT-free turnover limit to Tk 50 lakh from the current Tk 30 lakh and the upper

limit on turnover to Tk 1.20 crore from the current Tk 80 lakh for imposing 3 per cent turnover tax under the new VAT

and Supplementary Duty Act-2012.

He also urged the government to conduct an impact analysis before setting up the turnover limit considering the daily

transactions by small and medium enterprises which are the dominant business units in the country’s economy.

He said that businesses were also getting afraid of possible harassment under the new VAT regime as many businesses

mainly SMEs would not be able to maintain accounts properly for VAT purpose.

The revenue board should also ensure VAT eco-system incorporating modern technologies including mobile phones

in the VAT collection process as these technologies are cheaper and user-friendly while electronic cash register

machines are costlier and require specialised knowledge to operate, he said.

At the press conference, the DCCI also placed some policy reform-related proposals including setting up a project

monitoring platform headed by the prime minister under the public-private modality in the name of National

Infrastructure Development and Monitoring Advisory Authority (NIDMAA).

The Authority will monitor the progress of implementation of high-priority infrastructure projects to ensure speedy,

timely, proper and cost-effective execution of the projects, the DCCI said.

It also said that the government should prioritise creating enabling investment climate by addressing energy and

power issues as well as infrastructure development in the next budget for the FY 2017-2018.

The Dhaka Chamber of Commerce and Industry on Saturday reiterated its demand for a reduction in value-added tax

rate to 7 per cent from the 15 per cent set in the new VAT act which is scheduled to come into force from July 1 this

year.

‘Businesses will continue their fight for the VAT rate reduction until their demand is met,’ said DCCI president Abul

Kasem Khan at a press briefing the chamber body arranged at its office in Dhaka to place their budget proposals for

the next fiscal year.

The single VAT rate (15 per cent) will increase inflationary pressure on consumers as well as put a negative impact on

the overall economy by reducing production as demand will slow due to prices hike of many goods, Kasem said.

The NBR can boost revenue collection through expanding its VAT net instead of raising VAT rate, he said.

6 | P a g e

He also demanded an increase in the VAT-free turnover limit to Tk 50 lakh from the current Tk 30 lakh and the upper

limit on turnover to Tk 1.20 crore from the current Tk 80 lakh for imposing 3 per cent turnover tax under the new VAT

and Supplementary Duty Act-2012.

He also urged the government to conduct an impact analysis before setting up the turnover limit considering the daily

transactions by small and medium enterprises which are the dominant business units in the country’s economy.

He said that businesses were also getting afraid of possible harassment under the new VAT regime as many businesses

mainly SMEs would not be able to maintain accounts properly for VAT purpose.

The revenue board should also ensure VAT eco-system incorporating modern technologies including mobile phones

in the VAT collection process as these technologies are cheaper and user-friendly while electronic cash register

machines are costlier and require specialised knowledge to operate, he said.

At the press conference, the DCCI also placed some policy reform-related proposals including setting up a project

monitoring platform headed by the prime minister under the public-private modality in the name of National

Infrastructure Development and Monitoring Advisory Authority (NIDMAA).

The Authority will monitor the progress of implementation of high-priority infrastructure projects to ensure speedy,

timely, proper and cost-effective execution of the projects, the DCCI said.

It also said that the government should prioritise creating enabling investment climate by addressing energy and

power issues as well as infrastructure development in the next budget for the FY 2017-2018.

Boosting private investment including foreign direct investment, employment generation, and broadening tax net

should also be prioritised, it said.

The chamber also demanded increasing the tax-free income limit for individual taxpayers to Tk 3.50 lakh from the

existing Tk 2.50 lakh, reducing the highest rate of income tax to 25 per cent from the current 30 per cent, lowering the

corporate income tax rate for non-publicly traded companies to 30 per cent and for merchant banks to 35 per cent

from the existing 35 per cent and 37.5 per cent respectively.

The trade body also sought tax incentive for reinvestment of corporate profits.

Other proposals of the chamber include raising the number of income taxpayers to 50 lakh by 2019, issuing tax cards

for all income taxpayers and VAT smart cards for VAT collecting businesses.

The chamber also demanded that the government raise allocation to the annual development programme reducing

allocation to non-development sectors, double allocation for infrastructure and raise fund from the capital market to

implement infrastructure projects.

It also suggested that the government should impose congestion tax on vehicles and adopt car pulling and holiday and

working day car driving concept to reduce severe traffic jam in Dhaka.

DCCI senior vice-president Kamrul Islam and directors were also present at the briefing.

Source: http://www.newagebd.net/article/14565/businesses-to-continue-fight-for-7pc-vat-rate-dcci

Worrying volume of interest payment in the next fiscal Allocation for interest payment in the government budget is expected to cross Tk40,000 cr in the next fiscal, mostly

due to an estimated payment of interests on savings instruments.

http://www.newagebd.net/article/14565/businesses-to-continue-fight-for-7pc-vat-rate-dcci

7 | P a g e

The total interest payment expenditure is likely to rise by 29.82% compared to the revised budget, officials of the

Finance Division familiar with the process told the Dhaka Tribune on Saturday.

The ceiling of payment of interest expenditure will be increased by Tk9,801 cr over the revised budget for 2017-18

fiscal year, to an amount of Tk42,664 cr.

Interest payment in the revised budget outlay for 2016-17 fiscal year stands at Tk32,863 cr while the allocation was

Tk39,951cr. Finance Division officials said the next budget paints a troubling picture as the payment of interest

expenditure is 30.95% of the budget deficit.

Taxpayers would be paying more in interest than they would be for education or defense, an official said.

A document obtained from the recent budget management committee meeting reveals that the government has

planned to increase the payment of interest by Tk9,801cr or 29.82% over the revised budget outlay.

The government is likely to reduce the interest rate on savings instruments and predicts that owing to that move,

there may be a surge in encashing of those instruments.

Most savings instruments have a rate of 11-13% and are open tab, meaning there is no limit to how much will be sold

to the public. This has resulted in massive debt. In the last nine months, the government has sold Tk33,000 cr worth

of savings instruments against a target of Tk19,610cr.

Finance Minister AMA Muhith has said that the government plans to take more loans from the banking system for

cheap funds to meet the next fiscal deficit.

According to the next fiscal year’s budget estimation, the deficit will be Tk129,020 cr.

Economist AB Mirza Azizul Islam told the Dhaka Tribune this was a major fiscal management failure of the government.

“Government loan from saving instruments is definitely out of control. State agencies need to fix the amount of loans

from national saving instruments,” he said.

Source: http://www.dhakatribune.com/business/economy/2017/04/29/volume-interest-payment-fiscal/

Carbon tax likely in next budget The government has planned to impose 'carbon tax' from the next fiscal year on the sectors that are polluting the

environment, reports UNB.

According to sources at the Ministry of Finance and National Board of Revenue (NBR), Finance Minister AMA Muhith

might announce the carbon tax imposition in the next fiscal (2017-18) budget to be placed in Parliament in June next.

"This new type of tax will be the part of the government's initiative to create a new pocket for revenue collection," a

senior NBR official told the news agency.

Apart from imposing tax on the sectors that are harming the environment, the government might go for imposing tax

on the 'junk food' which is very much bad for human health, he said, "But, we're giving a special attention this time to

carbon tax as this will play a vital role in protecting the environment," he said.

A carbon tax is a tax levied on the carbon content of fuels.

It is a form of carbon pricing. Carbon is present in every hydrocarbon fuel (coal, petroleum, and natural gas) and

converted to carbon dioxide (CO2) and other products when combusted. In many countries carbon tax is imposed on

vehicles based on the use of their fuel efficiency.

http://www.dhakatribune.com/business/economy/2017/04/29/volume-interest-payment-fiscal/

8 | P a g e

Earlier, the sources said, the Finance Minister sought opinion from the World Bank about the imposition of carbon tax,

and it has already given its affirmative response to it.

On March 17, WB country director Qimiao Fan had written a letter to Finance Minister AMA Muhith suggesting the

government to impose carbon tax, saying it will be a 'fiscally prudent measure'.

According to the World Bank, a carbon tax directly sets a price on carbon by defining a tax rate on greenhouse gas

emissions or - more commonly - on the carbon content of fossil fuels.

The sources said carbon tax might be realised through value added tax (VAT).

The World Bank says that Bangladesh can impose the carbon tax as the fuel oil is at the lower level in the international

market.

Since green house gas (GHG) emissions caused by the combustion of fossil fuels are closely related to the carbon

content of the respective fuels, a tax on these emissions can be levied by taxing the carbon content of fossil fuels at

any point in the product cycle of the fuel.

NBR officials said carbon tax offers social and economic benefits. It is a tax that increases revenue without significantly

altering the economy while simultaneously promoting objectives of climate change policy.

"The objective of a carbon tax is to reduce the harmful and unfavourable levels of carbon dioxide emissions, thereby

decelerating climate change and its negative effects on the environment and human health," said one official.

Carbon taxes offer a potentially cost-effective means of reducing greenhouse gas emissions.

A number of countries have implemented carbon taxes or energy taxes that are related to carbon content. Most

environmentally related taxes with implications for greenhouse gas emissions in OECD countries are levied on energy

products and motor vehicles, rather than on Co2 emissions directly.

More importantly, they said, the government wants to give a big boost to its revenue collection and it looks for newer

avenues to do so as the national budget size is getting bigger every year.

The Finance Minister has already hinted that the size of the next budget will be around Tk 420,000 crore.

Source: http://www.thefinancialexpress-bd.com/2017/04/29/68483/Carbon-tax-likely-in-next-budget

Offshore banking getting popular among investors Offshore banking, the unit of commercial banks that gives out foreign currency loans, is increasingly getting popular

among both overseas and local investors because of the low cost of funds.

For instance, in 2016, loans under offshore banking grew 20.41 percent year-on-year to Tk 39,329 crore, according to

data from the Bangladesh Bank. In 2014, the amount was Tk 26,174 crore.

The low cost of the fund is driving the growth of offshore banking.

A loan through the offshore banking unit costs 4-6 percent in contrast to about 10 percent locally.

“Offshore banking is getting popular with clients because of the low interest rate,” said Ahmed Kamal Chowdhury,

managing director of Prime Bank.

Foreign currency loans are helping local producers, mostly garment manufacturers, to keep their product prices low.

“The availability of foreign currency loan has, in fact, helped bring down the overall interest rate in the banking sector,”

he said.

http://www.thefinancialexpress-bd.com/2017/04/29/68483/Carbon-tax-likely-in-next-budget

9 | P a g e

Islami Bank leads the charge in offshore banking: as of last year it gave out Tk 3,103 crore.

Eastern Bank comes in second spot with about Tk 2,256 crore loans, followed by Brac at Tk 2,163 crore, Prime Tk 1,786

crore, City Tk 1,478 crore, UCB Tk 1,176 crore and AB Tk 1,136 crore, according to central bank data.

Among the state-owned banks, only Agrani has offshore banking: its portfolio, as of 2016, stood at Tk 109 crore.

Private banks' offshore lending last year totalled Tk 22,735 crore, while the nine foreign banks lent Tk 16,484 crore.

The initiation of offshore banking in Bangladesh dates back to 1985, when a guideline was issued to bring in foreign

investment. But the offshore banking units' activities were limited earlier as foreign currency was not available. They

picked up steam in the last several years because of the mounting reserves, and faster growth of remittance and

exports.

Through the offshore units, local banks borrow foreign currencies from abroad or local authorised dealer banks and

lend to both foreign and local firms at LIBOR (London Interbank Offered Rate) plus rate.

The BB has been also liberal in allowing banks to provide foreign currency loans to local businesses.

An economist of the central bank said low-cost borrowing was giving foreign producers an edge over local producers,

who had to pay higher interest for their local currency loans.

This prompted the central bank to open up -- a move that has helped in bringing down the overall lending rate, he

said.

The economist said excess liquidity in the market is also pushing the interest rate down as most foreign currency loans

are used for imports.

Imports, in terms of letter of credit settlement, surged 10.15 percent year-on-year in the first eight months of the fiscal

year.

On the other hand, exports grew only 3.31 percent during the period, according to data from the BB.

The fast expansion of foreign currency loans has prompted the central bank to take an initiative to amend the guideline

on offshore banking to beef up monitoring, said a senior BB official.

At present, regular banking norms do not apply to offshore banking. The amended guideline will introduce

conventional banking norms such as similar capital requirement, provisioning, classification, credit rating, single

borrower limit for offshore banking too. Offshore banking needs to be organised in a better way to mitigate any future

risk from exchange rate fluctuation, the central bank economist said.

Chowdhury of Prime Bank said the main objective of offshore banking was to bring in foreign deposits but the banks

could not do it. Now, offshore banking units mainly lend to local companies. Default rate in case of offshore banking

came down to 0.26 percent last year from 0.29 percent in 2015, according to data from the.

But a top executive of a private bank said the risk of offshore banking lies in the recovery process, which is lengthy.

“If a client defaults, then it is very difficult to recover the loans. Banks can't recoup the loan directly from the client as

custom clearance is also related to it,” he added.

Source: http://www.thedailystar.net/business/offshore-banking-getting-popular-among-investors-1397578

http://www.thedailystar.net/business/offshore-banking-getting-popular-among-investors-1397578

10 | P a g e

BB needs long-term policies for forex market: analysts Bangladesh Bank needs to devise long-term policies for the foreign exchange market to rein in exchange rate volatility,

analysts said yesterday.

They said different types of banks quote different prices for the dollar, which is one of the reasons behind the unusual

fluctuation in the exchange rate in Bangladesh.

The other factors include gap in inflow and outflow of the dollar, inefficiency in foreign exchange management and

falling inflow of remittance.

The analysts spoke at a roundtable on “Bangladesh's Foreign Exchange Market: Present and Future” organised by

Bangla daily the Prothom Alo at its office in Dhaka.

Salehuddin Ahmed, a former governor of the BB, criticised the central bank for its move to cap the exchange rate last

week.

“The sudden hike in dollar price was controlled artificially by putting a cap on the exchange rate. This short time

decision will hurt the market in the long term,” said Ahmed.

Market should determine the exchange rate, which he said should not be controlled artificially.

Referring to the last two weeks' unusual hike in dollar price, Ahmed said it did not happen only for the market demand

and there may be some other reasons. Moreover, slower growth in remittance and export also created the context of

the price spike of the greenback, he said. Only ad-hoc measures cannot resolve the exchange rate unrest.

The BB will have to take steps to diversify export and balance the exchange rate for both exporters and importers to

control the price fluctuation, he said. The issue of exchange rate came to the fore last week in the wake of continued

devaluation of the taka against the dollar.

Data shows, the taka went down 3.49 percent to Tk 83.66 a dollar in just two weeks since April 11.

As a result, a strong dollar has threatened to push up the price of essential commodities ahead of Ramadan. Finally,

the BB put a cap on the price of US dollar -- inter-bank exchange rate plus Tk 2 on Wednesday -- to control the market.

On the following day, exchange rate came down to Tk 82 a dollar from Tk 84 a day ago.

Ahmed Jamal, executive director of BB, said the central bank is working to find a way to detect the early signs of dollar

price mismatch.

“The recent overnight increase in exchange rate was unusual and there might be other reasons than the demand and

supply situation in the market,” he said. “But we don't have so many instruments to control the price fluctuation,”

Jamal added.

He asked the commercial banks to give loans in foreign currency based on their own inflow-outflow position.

He said the local investors who were allowed to invest abroad have failed to bring return to the country. Now the

central bank is rigid about allowing more investments aboard. He also said there are many such applications pending

with the BB.

On the capital account convertibility, Jamal said the issue has to be decided by the government in consultation with

the BB.

Mohammed Nurul Amin, chairman of Bangladesh Foreign Exchange and Dealers' Association, said the recent spike of

exchange rate was a reflection of a distorted market.

11 | P a g e

He said the price shooting up by Tk 3 to Tk 4 in a few days was unusual, but the decline in the rate by Tk 2 in a single

day was more unusual that has affected some banks and businesses as well.

Alamgir Morshed, managing director and head of financial market of Standard Chartered Bangladesh, said foreign

exchange market has liquidity crisis at the moment.

Moreover, there is no uniform exchange rate among the banks, he said, adding that different banks -- private, foreign

and state-owned -- have different buying and selling rates.

He said brokerage houses can play a good role in an emerging market, but in Bangladesh there is no broker to balance

the demand and supply.

State banks fix the exchange rate, mainly by giving priority to the importers, as a higher dollar price will affect import-

dependent commodity market badly, said Abdus Salam, managing director of Janata Bank.

“But remitters will be discouraged to send money home due to lower exchange rate,” he said.

The central bank is still very much conservative in foreign currency payments, said Sadiq Ahmed, vice chairman of

Policy Research Institute.

Allowing capital account convertibility may need more time but the central bank needs to be flexible about foreign

currency regulation, he said.

Towfiq Ahmed Choudhury, director general of Bangladesh Institute of Bank Management, also spoke.

Source: http://www.thedailystar.net/business/bb-needs-long-term-policies-forex-market-analysts-1398610

High corporate tax hinders FDI, internal investment High corporate tax in Bangladesh, compared to that of other countries,

discourages both foreign and domestic investors from investing and expanding

their existing units here.

Experts and industry-insiders hold this view, underpinned by comparative

analyses of the taxation especially in neighbouring countries who net higher

sums of investment capital on the float.

Corporate income tax in Bangladesh ranges from 25 to 45 per cent depending

on nature and categories of companies.

Publicly traded companies generally are taxed at a rate of 25%. Banks, insurance

companies and financial institutions are taxed at a 42.5% rate, with a lower rate

of 40% available if the company is publicly traded. Mobile phone operator

companies and cigarette manufacturing companies are taxed at a 45% rate. All

other companies are subject to a 35% rate. Experts suggested long-term tax

planning for facilitating investors, bridging the gap between individual and

corporate tax rates for encouraging company formation in the country.

They preferred a competitive rate of corporate tax rate in Bangladesh compared to its neighbouring countries to

attract investors-at this point of time when business-tax walls are being lowered elsewhere, including the latest deep

cuts in the United States.

A significant amount of capital flows to other countries every year due to lucrative investment opportunities there

compared to Bangladesh's, they pointed out.

http://www.thedailystar.net/business/bb-needs-long-term-policies-forex-market-analysts-1398610

12 | P a g e

Neighbouring India's government in its last year's budget decided to bring down the corporate tax rate to 25 per cent.

In its current year's budget, India cut the rate of corporate tax to 25 per cent from 30 per cent for micro-, small,-and

medium enterprises having annual business turnover of up to Rs 500 million.

Rupali Chowdhury, president of Foreign Investors Chamber of Commerce and Industry (FICCI) in Bangladesh, said in

the context of competitive economy, the corporate tax rate in Bangladesh is too high.

"It is discouraging for both local and foreign investors to invest in Bangladesh. The government should bring down the

rate of corporate tax to 30 per cent for non-listed companies and 20 per cent for listed companies," she said.

Difference between listed and non-listed companies' corporate tax rates should be maintained at the present level

until the country's capital market grows to a moderate level, she added.

Institute of Chartered Accountants of Bangladesh (ICAB) president Adeeb H Khan, also taxation subcommittee member

of the Metropolitan Chamber of Commerce and Industry (MCCI), said cost of doing business in Bangladesh is already

somewhat high because of infrastructural inefficiencies.

"In addition, if businesses have to pay one-third of their profits as corporate tax, it can be discouraging for them."

Also, investors have to pay 20 per cent tax on their dividend that they take as profit from the business, he added.

"Potentially, investor is thus paying around half of their profits in taxes," said the head of the ICAB.

Aminur Rahman, former income-tax policy member of the National Board of Revenue (NBR), said Bangladesh could

consider providing a tax rebate to the company on employment generation as Pakistan recently incorporated the

incentive into its tax measure.

Pakistan offers 2.0 per cent tax rebate for a company if it generates employment for 50 people.

"Addressing the country's unemployment situation and easing high rate of corporate tax, the tax measure can be

considered in the budget," he added.

On India's recent budgetary measure setting a tax rate for a company having certain amount of annual turnover, he

said such measure is not helpful rather taxing on the basis of nature of businesses of companies is important.

Humayun Kabir FCA, Taxation Subcommittee convener of the Federation of Bangladesh Chambers of Commerce and

Industry (FBCCI) and facilitator of Alternative Dispute Resolution (ADR), mentioned that the apex chamber has

proposed that the government cut corporate-tax rate by 2.5 per cent for all types of companies in the upcoming budget

for fiscal year 2017-18.

Higher disallowance for gross profit estimation by the taxmen also escalates the actual tax incidence on taxpayers, he

observed.

Corporate taxpayers pay Advance Income Tax (AIT) at a rate of 5.0 per cent at import stage which is refundable after

assessment in case of excess payments, but refund system hardly works here, he added.

Income tax should be imposed on the basis of income, not in advance, he argued.

One expert held the view that the tax men are found not that much interested in tax payments by thousands of private

business firms that have taken registration from the Registrar of Joint Stock Companies and Firms (RJSC&F). A large

number of these business units even do not bother to submit their annual tax returns. Had the national board of

revenue been serious about collecting tax from these firms, it could have mobilised a substantial amount of revenue

every year. Thus, this would have created scope to lower the overall corporate tax rate, he observed.

13 | P a g e

The expert raised another issue that, according to him, is rather unfair on the part of the NBR. He said the NBR, in

many cases, is found unwilling to accept decline in profit or loss by a company under adverse circumstances.

Talking to the FE, tax officials, however, declined to admit high taxation as impediment to investment as there are a

number of tax incentives offered for investment promotion.

They said investors in economic zones under Bangladesh Economic Zones Authority (BEZA) and Hi-tech Park Authority

can enjoy a graduated rate of tax holiday on their investment.

Corporate tax contributes 80 per cent to the income-tax collection by the Large Taxpayers Unit (LTU) under the income

tax wing of the NBR.

Country's commercial banks, non-baking financial institutions, mobile-phone companies, cigarette companies, and gas

and energy sectors are the major source of corporate-tax receipts for the government.

Source: http://www.thefinancialexpress-bd.com/2017/04/29/68568/High-corporate-tax-hinders-FDI,-internal-

investment

Telcos blame poor services on low spectrum Inadequate access to spectrum has become a barrier to improving

quality and expanding services across the country by the operators.

The deteriorating service quality has forced many mobile phone users

to lodge complaints for call drops, poor network coverage and

unsuccessful calls in different parts of the country.

Consumers are also suffering for the poor quality of data services,

despite being under a 3G network.

Operators raised the issue at different levels, including at recent meetings with the finance ministry, telecom division

and Bangladesh Telecommunication Regulatory Commission (BTRC).

They said they need additional spectrum to take advantage of the new possibilities of technology-driven social and

economic development. With demand for data and voice traffic expected to rise rapidly in future, operators said it is

essential that the government deploy sufficient spectrum for them.

“We can't deliver quality services due to a lack of spectrum,” said TIM Nurul Kabir, secretary general of Association of

Mobile Telecom Operators of Bangladesh (AMTOB).

Operators have taken all possible measures to improve their service quality, but it did not bring improvements at the

expected level because of insufficient spectrum, said Kabir.

Spectrum relates to the radio frequencies allocated to the telecom industry for their services over the airwaves, which

also have different bands.

According to a document presented by Md Nasim Parvez, director general of BTRC's spectrum division, at a summit

on South Asian Telecommunication Regulators' Council in Dhaka last October, each operator in Bangladesh uses 28.4

Megahertz of spectrum on average. It is 70 to 110 MHz for each operator in a developed country.

In Malaysia, operators are using 56 MHz, while it is 41 MHz in Vietnam.

Meanwhile, operators in Bangladesh are serving more customers than the operators in developed countries, added

the document.

http://www.thefinancialexpress-bd.com/2017/04/29/68568/High-corporate-tax-hinders-FDI,-internal-investmenthttp://www.thefinancialexpress-bd.com/2017/04/29/68568/High-corporate-tax-hinders-FDI,-internal-investment

14 | P a g e

The country has a total of 330 MHz of spectrum in six different bands, but the regulator has allocated only 182 MHz.

Of the amount, the operators received only 117 MHz.

“Unused spectrum does not bring revenue for the government. Rather, if this spectrum is allocated or sold to the

operators at a lower price, it will help improve service quality,” said Shahed Alam, executive vice president of Robi, at

a pre-budget meeting with National Board of Revenue.

BTRC has even allocated some spectrum to non-mobile phone operators who are not using it, according to BTRC

officials.

The government has also allocated a hefty amount of valuable spectrum to some government agencies, but those

remain unused for years now.

BTRC Chairman Shahjahan Mahmood has acknowledged the problem and said they are taking measures to allocate

more spectrums to the mobile operators.

“We have decided to allocate more spectrums with neutrality services,” said Mahmood.

Market leader Grameenphone is using 14.6 MHz of spectrum in the 1,800 band and 7.4 MHz in the 900 band. In 2013,

they bought another 10 MHz in the 2,100 band for 3G services. The operator generates 22.25 crore calls a day for its

six crore active customers.

Robi had 19.8 MHz in three bands; it got 16.6 MHz of Airtel's spectrum after the merger.

Banglalink has 20 MHz of spectrum in three different bands, while state owned Teletalk has 25.2 MHz. Citycell has 6.5

MHz of spectrum but it is currently out of service.

Operators also discussed high spectrum prices and technological neutrality, which affect service quality.

“Bangladesh may be the only country in the region operating telecom services without technological neutrality,” said

Kabir of AMTOB.

Technology neutrality means the operators would have the choice to use their spectrum as they see fit. Neighbouring

countries like India, Pakistan and Sri Lanka have already introduced it a couple of years ago, which improved service

quality in those countries.

In 2013, the regulator assigned per MHz of spectrum in the 2100 band at a charge of $21 million. It is now

recommending the floor price of spectrum at $25 million in the upcoming auction.

In addition, operators will have to pay a few million extra per MHz for technological neutrality.

As of February, there are around 13.97 crore active SIMs in Bangladesh, with 6.31 crore connected to the internet.

Around 3 crore SIMs use 3G services.

Source: http://www.thedailystar.net/business/telcos-blame-poor-services-low-spectrum-1398619

First ever Financial Innovation Forum 2017 held on Saturday The first ever Financial Innovation Forum (FIF) 2017 was held on Saturday at the Grand Ballroom of hotel Le Méridien

Dhaka.

The forum was sponsored by Standard Chartered Bank, in association with The City Bank Ltd and was initiated by

Financial Forum Bangladesh (FFB), says a press release.

The forum was titled, “Shaping the New Paradigm for Growth in Bangladesh.”

http://www.thedailystar.net/business/telcos-blame-poor-services-low-spectrum-1398619

15 | P a g e

Muhammad A. (Rumee) Ali, Editor-in-Chief, Financial Forum Bangladesh delivered the opening speech at the forum.

In his speech he emphasised on the importance of skill and entrepreneurship development in FinTech to achieve

sustainable inclusive growth of the economy.

FFB was also officially launched in the forum, added the release.

Firoz Ahmed Khan, Co-Founder & CEO of FFB in his speech explained how the FFB will help the professionals of the

financial sector.

“FFB is designed to inspire the professionals and leaders of the financial sector with new thoughts, ideas, innovation

and knowledge”.

Her Excellency Sadsel Bleken, Ambassador to Bangladesh, Royal Norwegian Embassy graced the platform and said FIF

is an important initiative in the financial sector of Bangladesh.

“This will help to increase the economic growth of Bangladesh in future. I wish all the best of Financial Innovation

Forum”, she added.

Tom Cummings, Founder of Leading Ventures, and Senior Advisor to the Global Alliance for Banking on Values

moderated the programme.

Shariful Islam, Co-Founder of FFB; Lutfey Siddiqi, Governor and Visiting Professor, London School of Economics and

Political Science; Sajid Rahman, CEO at Telenor Health, Bangladesh; Sonia Bashir Kabir, Managing Director at Microsoft

Bangladesh; Tarique Amin Bhuiyan, Founder, Chairman & CTO at Hashkloud Pty Ltd., Australia; and Iftakharul (Ifty)

Islam, Group Chairman at Asian Tiger Capital Partners, among others participated at the programme.

Abrar A Anwar, Chief Executive Officer, Standard Chartered Bank; Dr. Faisal Ahmed, Chief Economist, Bangladesh Bank;

Md. Arfan Ali, President & Managing Director, Bank Asia Limited; Mijanur Rahman Joddar, ED, Bangladesh Bank; Syed

Mahbubur Rahman, Managing Director, Dhaka Bank Limited; and Syed Mohammad Kamal, Country Manager,

MasterCard, Bangladesh, also spoke at the forum.

The forum was supported Dhaka Bank Limited & Green Delta Insurance.

MasterCard Bangladesh was Payment Partner, Terracotta Red was Branding Partner, and Masthead PR was PR Partner

of the FIF.

Source: http://www.thefinancialexpress-bd.com/2017/04/29/68529/First-ever-Financial-Innovation-Forum-2017-

held-on-Saturday

Watch out for Myanmar Recovering from embargo, Myanmar has begun its comeback to the textile and apparel business as the country with

the most potential to emerge as a formidable player among the garment producing nations, according to a study.

Myanmar has deep experience in the textile industry, but it does not cover all parts of the value chain.

However, foreign direct investment tripled within the last two years emphasising the high potential, according to the

Kurt Salmon Global Sourcing Reference 2005-2015.

Kurt Salmon, a leading global strategy consulting firm focused on the retail industry, conducted the survey on the basis

of Production Cost Indices (PCI) among six garment producing nations: Bangladesh, China, India, Morocco, Myanmar

and Turkey.

http://www.thefinancialexpress-bd.com/2017/04/29/68529/First-ever-Financial-Innovation-Forum-2017-held-on-Saturdayhttp://www.thefinancialexpress-bd.com/2017/04/29/68529/First-ever-Financial-Innovation-Forum-2017-held-on-Saturday

16 | P a g e

Bangladesh is the most attractive

destination to European retailers

among the six nations due to its

competence in the supply of quality

products at competitive prices,

according to the study.

The firm analysed the import data of

apparel items from the six countries

between 2005 and 2015. Among the six

nations, China is in the second position

because of higher costs of production

and dearth of skilled workers.

India is the third most attractive

destination, Morocco fourth, Myanmar

fifth and Turkey sixth.

There is no back-up nation to Bangladesh for the global garment business at this moment, said Dhyana van der Pols,

a sourcing consultant for a group of European garment buyers. “So, business will continue to grow in Bangladesh.”

However, Bangladesh needs to shift production to value-added items from basic garment goods, she said.

“Although we are passing a dull season now, the future outlook is very positive,” said Siddiqur Rahman, president of

the Bangladesh Garment Manufacturers and Exporters Association.

However, in global comparison of Kurt Salmon, Bangladesh is the second most attractive destination after Cambodia.

Globally, Cambodia is ahead of Bangladesh only because it uses more technology in production, the study said.

Production costs in China are almost reaching the level of Eastern Europe and Turkey and are even exceeding costs in

Southern European rim locations such as Morocco. As China no longer has transportation lead times, and as a

consequence, considerable less sourcing flexibility, its competitive strength is eroding rapidly, it said. “China is no

longer a low-cost production country.”

Wages have tripled in China over the last decade and productivity gains were unable to level out this effect on overall

production costs.

On the other end of the cost continuum, Myanmar and Bangladesh are showing the lowest PCI value.

Ongoing efforts to improve social and infrastructural conditions, such as the established minimum wages in

Bangladesh and Myanmar, indicate further increases in sourcing costs for the future -- but still on a very competitive

PCI level.

Bangladesh is gaining market share in sourcing for Europe and North America, the report said.

But the country is still mainly focused on less complex products. Bangladesh has the potential to further strengthen

its relative position if production capabilities can evolve and quality can be improved while ensuring social and

environmental compliance standards, according to the report.

The study said denim apparel shows a clear move away from China, which lost 7 percent in 2014, while most other

markets have been able to strengthen their position.

Looking at the example of denim, Turkey, Tunisia and Poland have been able to expand their position, although cost

structures are significantly higher than in the traditional low-cost Asian countries.

17 | P a g e

These countries offer better prices but come with limitations such as slow lead time, lower capability levels and

concerns over corporate social responsibility.

China is wedged in the middle between both ends of the continuum, neither being fast nor cheap.

Nevertheless, the high level of capability and integration of production in China will no doubt continue to play a major

role in the coming years, Kurt Salmon said.

“These developments are further supported by the survey of global leaders in sourcing. Highest future growth

potential is observed in Vietnam, Bangladesh, Turkey, and Myanmar in contrast to expected ongoing losses in China.”

Garment exports accounted for nearly 85 percent of Bangladesh's total products sold overseas in 2016. The country's

share in the global apparel market is about 6 percent.

Source: http://www.thedailystar.net/business/watch-out-myanmar-1397599

সেলফ োফে ইন্টোরফেট সেবোর মলূয, অেত্য প্রচোরণোয় অযোমটব গণমোধ্যফম ববজ্ঞবি বিফয় ইন্টোরফেট সেবোর িোম বেধ্ধোরফণর প্রবত্বট স্তর েম্পফকধ গ্রোহকফির জোেোফত্ ২৬ এবপ্রল সেলফ োে অপোফরটরফির বেফিধশ সিয় ডোক ও সটবলফ োগোফ োগ মন্ত্রণোলয়। এর পবরফপ্রবিফত্ গত্ শুক্রবোর সিফশর সবশ কফয়কবট পবিকোয় ত্ো প্রচোর কফর সিয় সেলফ োে অপোফরটরগুফলোর েংগঠে অযোফেোবেফয়শে অব সমোবোইল সটবলকম অপোফরটরে অব বোংলোফিশ (অযোমটব)। ত্ফব ববজ্ঞবিফত্ বেফিধশেো অনুেরণ েো কফর উফটো সবশবকছু ববষফয় অেত্য ত্থ্য বিফয়ফছ েংগঠেবট।

১ এবপ্রল ববণক বোত্ধোয় সেলফ োে অপোফরটরফির বযোন্ডউইডথ্ ক্রয় ও ববক্রয় মলূয বেফয় একবট প্রবত্ফবিে প্রকোফশর পবরফপ্রবিফত্ গত্ বধু্বোর েংবিষ্টফির বেফয় ববঠক কফর মন্ত্রণোলয়। অপোফরটরফির সমোট বযয় গ্রোহক প ধোফয় িোফমর ওপর কী ধ্রফের প্রভোব স ফল, ত্ো উফেখ কফরই মলূত্ গণমোধ্যফম ববজ্ঞবি প্রকোফশর ওই বেফিধশ সিে ডোক ও সটবলফ োগোফ োগ প্রবত্মন্ত্রী।

বেফিধশেোর পবরফপ্রবিফত্ সিয়ো ববজ্ঞবিফত্ অযোমটব িোবব কফরফছ, সটবলকম অপোফরটররো শুধ্ ুবযোন্ডউইডথ্ই েরবরোহ কফর েো, েম্পণূধ সটবলকম সেবো সপ ৌঁফছ সিয় প্রত্যন্ত অঞ্চফল। অপোফরটররো আইআইবজফির কোছ সথ্ফক গবত্র পবরমোফপ বযোন্ডউইডথ্ বকফে থ্োফক। গবত্র েফে ডোটোর ভবলউফমর েম্পকধ অবোন্তর।

ববফশষজ্ঞরো বলফছে, বযোন্ডউইডথ্ মলূত্ ডোটো েরবরোফহর গবত্। ফল বযোন্ডউইডথ্ফক ডোটোয় রূপোন্তর েম্ভব েয়, এমে ত্থ্য ভুল। অযোমটফবর মফত্ো প্র বুিবেভধর েংগঠফের কোছ সথ্ফক এ ধ্রফের বযোখযো অপ্রত্যোবশত্। আর স বট রূপোন্তর করো েম্ভব েয়, ত্ো অপোফরটররো গ্রোহকফির কোফছ বববক্র করফছ কীভোফব, এমে প্রশ্নও তু্লফছে ত্োরো।

বোংলোফিশ অযোফেোবেফয়শে অব ে টওয়যোর অযোন্ড ইে রফমশে েোবভধফেফের (সববেে) েভোপবত্ সমোস্তো ো জব্বোর বফলে, সেলফ োে অপোফরটররো বযোন্ডউইডথ্ বকেফছ। ত্োরো গ্রোহকফকও প্রকৃত্পফি বযোন্ডউইডথ্ই েরবরোহ করফছ। শুধ্ ুপযোফকফজর আড়োফল একটো েীমো বেধ্ধোরণ কফর সিয়ো হফে। লোখ লোখ গ্রোহফকর কোফছ ডোটো েোফম ত্ো বববক্র করফছ অপোফরটররো। এবট গ্রোহফকর েফে প্রত্োরণো।

বযোন্ডউইডফথ্র গবত্ বিফয় ডোটোর পবরমোণ বহেোব করো েম্ভব বফল জোেোে বোংলোফিশ সেটওয়োকধ অপোফরটরে গ্রুফপর (বববডেগ) সবোডধ অব ট্রোবিফজর সচয়োরমযোে সুমে আহফমি েোববর। বত্বে বফলে, বযোন্ডউইডথ্ ও ডোটো— একবটর েফে অন্যবট েম্পবকধত্। এ দুবটর মফধ্য েম্পকধ সেই বলোটো হোেযকর।

ববজ্ঞবিফত্ অযোমটব আফরো িোবব কফরফছ, বোংলোফিফশ সমোবোইল ইন্টোরফেফটর মলূয ববফের বিত্ীয় েবধবেম্ন। গ্রোহকপ্রবত্ রোজফের সিফি বোংলোফিশ েবধবেম্ন অবস্থোফে রফয়ফছ। সমোবোইল ইন্টোরফেফটর মলূয বেধ্ধোরফণ বযোন্ডউইডফথ্র খরফচর ভূবমকো েোমোন্য। সেটওয়োকধ লোইফেন্স অবধ্গ্রহফণর ব , ত্রে চোজধ, সেটওয়োকধ স্থোপে বযয়, সেটওয়োকধ বযবস্থোপেো বযয় (জ্বোলোবে, রিণোফবিণ ইত্যোবি), অপবটকযোল োইবোর সেটওয়োকধ স্থোপে ও রিণোফবিণ বযয়, চযোফেল কবমশে ও প্রফণোিেো বযয় ইত্যোবি এর েফে েংবিষ্ট।

জোেফত্ চোইফল ডোক ও সটবলফ োগোফ োগ প্রবত্মন্ত্রী ত্োরোেো হোবলম বফলে, অপোফরটররো ইন্টোরফেফটর িোম বেধ্ধোরফণর সিফি স েব কোরণ আমোফক বফলফছ, ত্ো ববস্তোবরত্ভোফব মোনুষফক জোেোফেোর বেফিধশেো সিয়ো হফয়বছল। পবিকোয় স বহেোব সিয়ো হফয়ফছ, ত্োফত্ বকছু গরবমল বো বহেোফবর ববভ্রোবন্ত বছল। ওইেব ববষফয়র প্রবত্বট আলোিোভোফব গণমোধ্যফম ববজ্ঞবি আকোফর বিফত্ বফলবছ, োফত্ মোনুষ জোেফত্ পোফর।

http://www.thedailystar.net/business/watch-out-myanmar-1397599

18 | P a g e

অযোমটব বলফছ, প্রবত্ফবিফে েমফয়র েফে েফে ইন্টোরফেফটর মলূয কমোফেো হয়বে, এমে অবভফ োগ বভবিহীে। বিবজ চোলরু আফগ ১ এমবববপএে গবত্র ১ বগগোবোইট (বজবব) ডোটোর িোম বছল প্রোয় ১ হোজোর টোকো। বত্ধমোফে এবট ২০০ টোকোয় সেফম এফেফছ। এছোড়ো গ্রোহকফির জন্য রফয়ফছ অফেক ববেোমফূলযর অ োর। ২০০৯ েোফল প্রবত্ সমগোবোইট ইন্টোরফেফটর গড় মলূয ৩ টোকো ৮৯ পয়েো বছল, ো এখে মোি ২৮ পয়েো।

২০১৩ েোফলর ৮ সেফেম্বর অনুবিত্ বেলোফমর মোধ্যফম বিবজর ত্রে বরোদ্দ পোয় গ্রোমীণফ োে, বোংলোবলংক, রবব ও এয়োরফটল। পরবত্ধীফত্ একই বছফরর ৭ অফটোবর গ্রোমীণফ োে, ২১ অফটোবর বোংলোবলংক, ৩০ অফটোবর রবব ও ৭ েফভম্বর এয়োরফটল বোবণবজযকভোফব এ সেবো চোল ুকফর। আর রোষ্ট্রোয়ি সেলফ োে অপোফরটর সটবলটক পরীিোমলূকভোফব বিবজ সেবোিোে শুরু কফর আফরো এক বছর আফগ। ২০১২ েোফলর ১৪ অফটোবর সেবোবট চোল ুকফর সটবলটক।

সখোৌঁজ বেফয় জোেো সগফছ, ২০১০ েোফলও গ্রোমীণফ োফের ১ বজবব ডোটো পযোফকফজর মলূয বছল ভযোট ছোড়ো ৩০০ টোকো। ইন্টোরফেট সেবোয় সবেরকোবর সকোফেো সেলফ োে অপোফরটরই বত্ধমোফে গবত্র ববষয়বট উফেখ করফছ েো।

এছোড়ো বেফজফির বযফয়র ববষফয় বযোখযো েো বিফয় বরং পফরোিভোফব েরকোফরর ওপরই িোয় চোবপফয়ফছ অযোমটব। ববজ্ঞবিফত্ েংগঠেবট উফেখ কফরফছ, প্রবত্ ১০০ টোকো ইন্টোরফেট বযবহোফর ২১ টোকো ৭৫ পয়েো চফল োয় মলূয েংফ োজে কর, েম্পরূক শুল্ক ও েোরচোফজধ। এর মফধ্য মলূয েংফ োজে কর ১৫ শত্োংশ, েম্পরূক শুল্ক ৫ ও েোরচোজধ ১ শত্োংশ।

ববষয়বট বেফয় সকোফেো মন্তবয করফত্ অেীকৃবত্ জোেোে অযোমটব মহোেবচব বটআইএম নুরুল কবীর। বত্বে বফলে, এ-েম্পবকধত্ বযোখযো পবিকোয় ববজ্ঞোপে বিফয় জোেোফেো হফয়ফছ।

এবিফক ৬ এবপ্রল ববণক বোত্ধোয় পোঠোফেো একই ধ্রফের বযোখযোয় অযোমটব গ্রোহকফির জন্য ববেোমফূলযর অফেক অ োফরর কথ্ো উফেখ কফর। ত্ফব সেেব অ োফরর েংখযো, অ োফরর আওত্োয় থ্োকো গ্রোহক েংখযো বকংবো অ োফরর জন্য অপোফরটরফির বযফয়র ববষয়বট উফেখ কফরবে। অপোফরটরফির এেব অ োর মলূত্ ত্োফির প্রচোরণোরই অংশ। আর এ বোবি ত্োফির বযয়ও িু হফে েোধ্োরণ পযোফকফজর মফূলযর েফে।

প্রবত্ফবিফের ত্থ্য ভুল বফল িোবব করো হফলও প্রবত্ এমবববপএে বযোন্ডউইডথ্ বকেফত্ অপোফরটরফির বযয় উফেখ কফরবে অযোমটব। প্রবত্ফবিফে সবশ কফয়কবট ইন্টোরন্যোশেোল ইন্টোরফেট সগটওফয় (আইআইবজ) ও সেলফ োে অপোফরটফরর কোছ সথ্ফক বযোন্ডউইডফথ্র ক্রয়মলূয উফেখ করো হফয়ফছ। সিফশ রোষ্ট্রোয়ি প্রবত্িোে বোংলোফিশ সটবলকবমউবেফকশন্স সকোম্পোবে বলবমফটডেহ (বববটবেএল) আইআইবজ রফয়ফছ ৩৭বট। ত্ীব্র প্রবত্ফ োবগত্োর কোরফণ অফেক প্রবত্িোেই প্রবত্ফবিফে উফেবখত্ মফূলযর সচফয়ও কম মফূলয বযোন্ডউইডথ্ েরবরোহ করফছ।

উচ্চ করহোর ও ত্রে ব , মধ্যেত্বফভোগীর কোরফণ ইন্টোরফেট সেবোর মলূয ববৃি সপফয়ফছ বফল জোবেফয়ফছ অযোমটব। বিও সিফশ এখফেো সেলফ োে অপোফরটরফির মলূ আফয়র উত্ে ভফয়েবভবিক সেবো। একই অবকোঠোফমো ও জেবল বিফয়ই ভফয়ফের পোশোপোবশ ডোটোবভবিক সেবো বিফে সেলফ োে অপোফরটররো। ফল ত্োফির বববেফয়োগ ও পবরচোলে বযফয়র উফেখফ োগয অংশ ভফয়ফের জন্যও বযবহোর হয়।

সিফশ ইন্টোরফেট সেবোর েম্প্রেোরফণ গত্ কফয়ক বছফর ধ্োরোবোবহকভোফব বযোন্ডউইডফথ্র মলূয কবমফয় এফেফছ েরকোর। পোশোপোবশ ওয়োইমযোক্স ও বিবজর মফত্ো ত্োরববহীে ইন্টোরফেট সেবো চোল ুকরো হফয়ফছ। ফল সেবোবটর গ্রোহকও সবফড়ফছ। আর ইন্টোরফেট গ্রোহফকর বেংহভোগই সেলফ োে অপোফরটরফির ইন্টোরফেট সেবো বযবহোর করফছ। বিবজ প্র বুি চোলরু পর অপোফরটরফির ডোটোবভবিক সেবো আফরো েম্প্রেোরফণর সুফ োগ বত্বর হয়।

বোংলোফিশ সটবলফ োগোফ োগ বেয়ন্ত্রণ কবমশে (বববটআরবে) প্রকোবশত্ েবধফশষ ত্থ্যোনু োয়ী, স ব্রুয়োবর সশফষ সিফশ ইন্টোরফেট গ্রোহক েংখযো ৬ সকোবট ৭২ লোখ ছোবড়ফয়ফছ। এর মফধ্য শুধ্ ুসেলফ োে অপোফরটরফির টুবজ ও বিবজ প্র বুির ইন্টোরফেট সেবোর আওত্োয় গ্রোহক রফয়ফছ ৬ সকোবট ৩১ লোফখর সববশ। এছোড়ো ইন্টোরফেট েোবভধে সপ্রোভোইডোর (আইএেবপ) ও পোববলক সুইচড সটবলফ োে সেটওয়োকধ (বপএেবটএে) অপোফরটরফির সেবোগ্রহণকোরী ৪০ লোখ ৩৬ হোজোর। আর ওয়োইমযোক্স প্র বুির ব্রডবযোন্ড ইন্টোরফেট সেবোিোেকোরী প্রবত্িোেগুফলোর গ্রোহক রফয়ফছ ৮৯ হোজোর।

বত্ধমোফে সিফশ বযোন্ডউইডফথ্র চোবহিো প্রোয় ৪০০ বজবববপএে। েোবফমবরে সকবল ও ইন্টোরন্যোশেোল সটফরবিয়োল সকবল (আইবটবে) েংফ োফগর মোধ্যফম এ বযোন্ডউইডথ্ েরবরোহ করো হফে।

Source: http://bonikbarta.net/bangla/news/2017-04-30/115615/

http://bonikbarta.net/bangla/news/2017-04-30/115615/

19 | P a g e

International News

US growth hits 3-year low in Trump's first quarter US growth slid to its lowest level in three years in the first quarter, a

disappointing start to Donald Trump's presidency as it reaches the 100 day

mark.

GDP increased 0.7 percent in the first three months of the year as consumer

spending and government expenditures tumbled to their lowest levels in years,

the Commerce Department reported Friday, presenting preliminary data.

Though only slightly below the 0.8 percent increase in the same quarter of last

year, the result was down sharply from the 2.1 percent expansion seen in the

fourth quarter of 2016.

It was well below analysts' expectations of 1.1 percent GDP growth. The last

time first quarter expansion was more disappointing was a 1.2 percent drop in

2014.

Trump, who marks 100 days in office Saturday, rose to power on a message of

nationalist economic revival. He has also taken credit for increased consumer

and business confidence, growing employment and record gains for stocks in

recent months.

But "just because people feel happy doesn't mean they will act on those feelings, and they clearly didn't during the

first quarter," economist Joel Naroff said in a commentary on the report.

The White House has been promising a return to three percent economic growth, which it says will generate the

revenue needed to pay for multi-trillion-dollar tax cuts unveiled this week.

But economists question the likelihood that the economy can -- or should -- grow that fast, especially without fueling

high inflation.

But the GDP report was replete with record lows.

Consumer spending fell to its lowest level in nearly eight years, adding only 0.3 percent, with spending on services at

their lowest in four years, and durable goods orders their lowest since 2011, as auto sales fell 0.45 percent.

Defense spending contracted by four percent, its lowest pace in nearly three years, helping drive down overall

government expenditures by 1.7 percent, the lowest quarterly result in almost four years.

Spending on non-durable goods also contracted 2.5 percent, the lowest reading since 2011.

Commerce Secretary Wilbur Ross said the low growth meant the United States should adopt the Trump

administration's proposals to slash taxes and regulation.

"We need the president's tax plan, regulatory relief, trade renegotiations and the unleashing of American energy

sector to overcome the dismal economy inherited by the Trump administration," Ross said in a statement.

But it remained unclear how many recent economic events could be credited to -- or blamed on -- the president.

Economists note that first quarters in recent years have trended below average.

20 | P a g e

Growth has averaged one percent in first quarters over the last seven years, well below average growth in other

quarters, according to Jim O'Sullivan of High Frequency Economics.

In addition, preliminary estimates of GDP are subject to revisions of an average of 0.6 percentage points.

Analysts also cautioned that the most recent numbers may have suffered some distortion, with a rebound likely in the

next quarter.

Unseasonably warm weather in the first two months of the year drove down spending on utilities, and delayed tax

refunds also put less cash in consumers' pockets, all of which weighed on consumption.

Ian Shepherdson of Pantheon Macroeconomics said if these distortions were excluded, growth would probably have

been closer to two percent. He said he expects three percent growth in the second quarter "as the statistical and

weather issues unwind."

Business investments were a bright spot, increasing 4.3 percent for the quarter. But that was a significant slowdown

from the brisk 9.4 percent in the prior quarter.

A recovery in oil prices helped sustain growth in this category, with mining, exploration, shafts and wells skyrocketing

by 449 percent, an all-time record, up from 23.7 percent in the prior quarter.

"The health of business investment bolsters our confidence that the first quarter is a temporary slowing," Barclays

economists said in a research note.

"The rise in equipment investment indicates that firms are expanding capacity in anticipation of rising demand."

With the Federal Reserve holding a two-day monetary policy meeting next week, the weak growth figures were sure

to figure into expectations for the pace of interest rate moves this year.

But a Labor Department report also released Friday pointed in a different direction from GDP.

The employment cost index rose 0.8 percent for the quarter -- which Shepherdson noted was the biggest gain in nearly

a decade -- two-tenths above an analyst consensus forecast.

"Fed hawks will seize on this report," Shepherdson said. "All the action in the headline ECI is due to a 0.9 percent jump

in wages and salaries in the private sector."

This confirms anecdotal reports in the Fed's economic survey from companies that have been obliged to raise wages

and benefits in an effort to attract qualified candidates to job openings.

Source: http://www.thedailystar.net/business/us-growth-hits-3-year-low-trumps-first-quarter-1398460

British economy slows as Brexit talks, election loom Britain's economic growth slowed in the first quarter to the weakest pace in a year, official data showed Friday -- a

blow for a nation facing heightened tensions over Brexit ahead of June's general election.

Gross domestic product expanded by 0.3 percent in the three months to the end of March, compared with 0.7 percent

in the final quarter of 2016, the Office for National Statistics said in a statement.

Analysts' consensus forecast had been for first-quarter growth of 0.4 percent, with the worse-than-expected result

mainly attributable to a slowdown in services sector output, the ONS said.

"This weakness is likely to be blamed on Brexit," said Alan Clarke, fixed income strategist at Scotiabank.

http://www.thedailystar.net/business/us-growth-hits-3-year-low-trumps-first-quarter-1398460

21 | P a g e

"That is probably fair, albeit in an indirect sense. The fears leading up to Brexit were that growth would stall due to a

dive in confidence, hiring and investment," he said.

"That hasn't happened. What did happen is the pound dived, pushing inflation sharply higher and that is causing

consumer spending and hence overall growth to slow," Clarke added in a note to clients.

The update comes as Britain awaits a general election on June 8 after Prime Minister Theresa May last week called for

a snap vote.

The British leader is hoping to shore up her mandate for Brexit in the ballot ahead of two years of gruelling

negotiations.

Tensions rose Thursday when May accused the other 27 EU countries of lining up to oppose Britain after Germany's

Angela Merkel said the UK should have no "illusions" over the exit process.

EU nation leaders have stressed a united stance as they plan to meet Saturday to set down the bloc's "red lines" --

although the talks will not begin until after the British election.

May started the process of leaving the EU last month, while opinion polls suggest her Conservatives will return to

power in June with an increased majority.

EU President Donald Tusk has said Britain must first settle the key divorce issues of "people, money and Ireland" before

any talks on a post-Brexit trade deal.

In a letter to leaders of the remaining 27 European Union countries ahead of the summit on Saturday, Tusk said that

"before discussing our future, we must first sort out our past."

The EU says the key issues are the fate of three million EU citizens living in Britain and one million Britons resident in

the EU, Britain's exit bill estimated at around 60 billion euros ($66 billion), and the fate of the border between Ireland

and the British province of Northern Ireland.

The huge forecasted exit bill comes as sharp falls for the pound since last June have pushed up import costs, resulting

in higher UK inflation.

"2017 looks set to be a year of slower growth, as higher inflation puts the squeeze on consumers' real incomes ahead

of June's general election and the start of Brexit negotiations," said Ben Brettell, economist at stockbroker Hargreaves

Lansdown.

"The economy has surprised on the upside since last summer's referendum, powered by a resilient consumer, but it

looks like households are now starting to feel the pinch from the current bout of inflation."

Despite higher costs for consumers, analysts expect the Bank of England to keep its main interest rate at a record low

0.25 percent in the face of weaker overall economic growth and uncertainty surrounding the Brexit negotiations.

The pound was up against the dollar after Friday's data, which weighed on London's benchmark FTSE 100 index,

featuring a number of companies earning in the US currency.

David Cheetham, analyst at XTB trading group, said the GDP data "still represents a fair pace of expansion", helping

the pound add to recent "election-inspired gains".

Source: http://www.thedailystar.net/business/british-economy-slows-brexit-talks-election-loom-1398457

http://www.thedailystar.net/business/british-economy-slows-brexit-talks-election-loom-1398457

22 | P a g e

Asian Development Bank is back in US dollar bond market The Asian Development Bank (ADB) has returned to the US dollar bond market with a 3-year global bond of $4 billion

after a short break.

Sale proceeds of the bond will be a part of ADB’s ordinary capital resources, according to a press statement of the

Manila-based development bank.

Earlier in February this year, ADB issued a 5-year global bond worth $3.75 billion. But the latest issuance of the bond

is ‘the largest-ever US Dollar global benchmark’ bond from ADB

ADB Treasurer Pierre Van Peteghem said: “The bond issue sends a very strong message to our stakeholders ahead of

ADB’s 50th Annual Meeting in Yokohama next week.”

The 3-year bond, with a coupon rate of 1.625 per cent per annum payable semi-annually and a maturity date of 5 May

2020, was priced at 99.776 per cent to yield 23.2 basis points over the 1.5 per cent US Treasury notes due in April

2020.

The transaction was lead-managed by BMO Capital Markets, Citi, Deutsche Bank, and RBC Capital Markets.

A syndicate group was also formed with BNP Paribas, CACIB, Daiwa Securities, HSBC, ING, J.P. Morgan, Mizuho

International, Nomura, TD Securities, and Wells Fargo.

The bond issue achieved wide primary market distribution with 34 per cent placed in Asia, 32 per cent in Europe,

Middle East, and Africa, and 34 per cent in the Americas.

By investor type, 59 per cent of the bonds went to central banks and official institutions, 16 per cent to banks, and 25

percent to fund managers and other investors.

ADB plans to raise around $25-30 billion from the capital markets in 2017.

Source: http://www.thefinancialexpress-bd.com/2017/04/29/68506/ADB-back-in-US-dollar-bond-market

http://www.thefinancialexpress-bd.com/2017/04/29/68506/ADB-back-in-US-dollar-bond-market