Tall promises by contestants with little authority to deliver

The people of Narayaganj City Corporation (NCC) will go for voting tomorrow (Sunday) to elect their mayor and councilors, amid a lot of expectations that many of their long-lingering problems will be addressed by the would-be elected authorities.

Also in areas under other city corporations throughout the country, the expectations of their dwellers from their local government bodies have, likewise, been always high, in view of their problems of wide-ranging nature having been deteriorating in most areas that concern their everyday life.

But the performance of the authorities of city corporations in all places within their jurisdiction continue to be far below what the ordinary citizens do expect, rightly or wrongly, from them, most observers of the state of urban governance system, nay that of the local government bodies said.

No matter whoever wins the Mayoral election in Narayanganj, the situation is likely to be no different from what is now being witnessed all over the country, notwithstanding some differences in leadership qualities and competence existing undeniably between and among the electoral contestant, such observers noted.

Experts in relevant fields and also the existing mayors of most city corporations said the city corporations and municipalities have very little power and also limited organisational capabilities to meet the citizens' expectations.

There has not been any real devolution of power to the city corporation bodies over the past few decades, despite tall promises by all successive governments about delegating more effective powers -- both de jure and de facto -- to such local government (LG) bodies, relevant sources noted.

All such quarters stressed the need for empowering the LG bodies and strengthening coordination among the service-providing agencies for ensuring proper civic and other amenities.

In Narayanganj, over 430,000 people are expected to cast their votes on Sunday to elect the city 'father' and ward commissioners of the country's seventh city corporation, through 163 poll centres, containing over 1,500 booths, set up by the Election Commission (EC) in the 27 NCC wards.

On their part, the electorate there in NCC demanded particularly of the mayoral contestants during the election campaigns to do the needful in the common interests of the dwellers of the city for resolving the long-persisting problems relating to provision of electricity, gas, piped water, updating the poor communication infrastructure that seriously hurt businesses and domestic works, saving the water-bodies including the rivers from pollution and encroachment and ensuring law and order.

The dwellers of Narayanganj do particularly like to see their would-be elected mayor to help construct a bridge over the Shitalakhhya river to connect Narayanganj with Bondar, after winning the electoral race.

All the three major candidates for the NCC mayoral office made 'robust' promises to work for ensuring supplies of utilities, strengthening healthcare and educational facilities, upgrading roads, improving law and order and providing better drainage facilities in the city which is also the home of thousands of small and medium industrial units.

But the critical issue is whether the elected mayor of this city, or for that, matter any other city in the country, do have the power, authority and fund to deliver what the citizens in their respective areas expect of them.

"Civic amenities can not be properly ensured under the existing power, authority and structure of the City Corporation as it does not have enough administrative and lawful power and authority and finance or both -- to do so," Mayor of Dhaka City Corporation (DCC) Sadek Hossain Khoka said.

He said the city corporation should be empowered properly to deal with the growing demands for civic facilities by the dwellers therein.

"There is no magic stick in the hands of any mayor. The mayor has to depend on other service-providing agencies that are under different ministries and authorities to improve traffic management, maintain law and order, ensure adequate supplies of water, gas and electricity," he said.

The Mayor of Chittagong City Corporation (CCC) sought for ways and means to maintain coordination with the other service providers. But he did not succeed much "without a fruitful coordination, most of the civic amenities will remain unmet," said a CCC source

The urban planner Professor Jamilur Reza Chowdhury said the city corporation should be given enough power for all relevant matters that concern the people in their localities. "The government should give its full concentration on efforts to ensure good governance at all levels," he said.

He, however, note the city corporation authorities are also often found to misuse funds given by the government or other development partners. "The existing funds should be utilised properly. Otherwise, nothing can be changed," he added.

"City Corporations often find themselves in a difficult situation to strike a balance between their limited resources and people's expectations," another urban planner said, adding that city corporation authorities will have to maximize the use of their resources.

Former advisor of the caretaker government Mr. Akbar Ali Khan said the country's local government institutions are very weak in Bangladesh compared to most other developed and also many developing countries. "The structure of LG bodies should be properly and effectively strengthened", he added.

Another analyst of the LG system in Bangladesh said, on condition of anonymity, that the country's existing city corporations "are mostly dependent, in areas of funding, on holding tax and a limited other sources of revenues, bodies the grants provided by the central government for carrying out their operational activities."

Such funds, even if used properly without involving irregularities and corrupt practices that are the common feature of most government activities in the country in an uninterrupted sequence since long, can not meet even a modicum of demands of the people in the respective areas under different LG bodies under the present-day conditions, he added.

While underlining the need for enforcing a system of strict monitoring of the uses of funds and for promoting transparency and accountability in an effective manner for all LG bodies including the city corporations, he suggested that avenues for floatation of bonds for raising funds for urban and other local level development activities should also be explored under a system of effective administration decentralization and development devolution.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Experts suggest use of entre-pot trade, re-export as alternative to transit

Authorities concerned can facilitate transporting goods to, and from, northeastern states of India via Bangladesh by utilising the still-operational provisions of the country's export policy, before implementation of a massive investment programme for offering full rail, road and riverline transit on a regular basis to India, traders and experts said on Friday.

If such an approach would have been taken earlier, the scope for both India and Bangladesh to go along the provisions of the export policy of the latter, as an alternative to the transit, could be better utilised, they said.

At least, the same mechanism can still be tried for the time being until India is given full-fledged land transit facility, the effective use of which, according to experts, might take, at least, a decade for construction of the required infrastructural facilities that will involve an estimated cost of more than Taka 470 billion.

Had the government implemented the provisions, the political controversy and debates in Bangladesh over the transit issue could be averted, the traders concerned said.

"The provisions incorporated in the export policy in 2003 and retained in the export policy that was recast in 2007, could not be implemented because of unexplained reasons," Syed Toufique Ali, a former vice-president of the Dhaka Chamber of Commerce and Industry (DCCI), told the FE.

But such provisions do still remain legally operative as those have not been scrapped, he added.

The provisions of entre-pot trade and re-export, incorporated in those export policies, clearly authorize intermediaries in Bangladesh to import goods from any foreign country and re-export the same to that or another country, keeping a nominal margin as handling charges.

"There is a fear that such provisions in the Bangladesh export trade policies of 2003 and 2007 about entre-pot trade and re-export will not fulfill the demand of India and as such it might not consider the same as a sustainable alternative to transit in the form that it (India) has been eying on," an economist said.

However, he said until the time the required infrastructural facilities are not ready for regular, full-fledged transit, such provisions, if are implemented, will benefit both the countries.

Under such provisions, Bangladeshi traders can import goods from any part of India or any other country through sea-ports or land-ports and re-export the same back to India or any other country.

However, those provisions have grossly been overlooked while accepting the Indian proposal for allowing movement of goods through Indian states via Bangladesh, Syed Taufique Ali observed.

Prior to giving full-fledged road transit facilities to India, some trial movement of goods has already started, despite mixed reactions among local traders, stake-holders, civil society groups, politicians and the vested interests.

A new land route - between Ashuganj transshipment point to Agartala landport under Tripura state of India - under an existing river protocol of 1980 has meanwhile been incorporated.

Heavy machineries were offloaded from some vessels at Ashuganj river terminal and were carried into India by Bangladeshi trucks and later by Indian ones over the past weeks, officials at Akhaura land-port said.

The opponents of this extension of river protocol, as a covert arrangement, to land route transit, criticized the authorities concerned for allowing movement of heavy lorries, jeopardizing the existing fragile road conditions on the Bangladesh side.

A number of local traders observed that in case of direct road transit, the Indian lorries will require to be loaded in India and unloaded again in India, after traveling across Bangladesh.

"Though Bangladesh may get some 'tips' as transit fees, which are yet to be worked out, it will have no control on the consignments, and will have no rights to know about their contents," Mr. Ali said.

As the owner of Netan, an export-import firm, Mr. Taufique Ali Khan got permission as far back as in 2007 the from Indian state authorities in Tripura and its central government in New Delhi to conduct handling of Indian goods under entre-pot trade and re-export system.

In cases of entre-pot trade or re-export, Bangladeshi handlers (importer and exporter who has to be the same individual, group or firm) will also have a control on the goods and will be responsible for the safety of the consignments.

Under this system, many Bangladeshi traders could be involved in handling the goods between entry- and exit-points on the borders or between ports in India and Bangladesh.

"Under such an arrangement, Bangladesh and India could be in a win-win situation, both sides benefiting in the field of trade and commerce," Mr. Ali said.

Under entre-pot trade arrangement, a trader who imports certain goods from any country can re-export the same to the same country or another one, by keeping a 5.0 per cent margin without opening the consignment and also without changing quality, quantity and size of it.

This entre-pot trade can be done against back-to-back letters of credit (LC) provided by the buyers through "import permit on a returnable basis", obtained from the office of the Chief Controller of Imports and Exports (CCIE) in Bangladesh.

In the case of re-export, the ports of import and export are different and consignments can be transported to the port of export against a 100 per cent bank guarantee equivalent to the amount of duties and taxes that would be returnable on execution of the export order.

Consignments under entre-pot trade are not allowed to be taken out of port boundary, without special authorization.

Under re-export, importers are allowed to change quality and size of consignments in re-processing and re-packing for, at least, 10 per cent value addition, before re-exporting.

This can be done after payment of admissible duty and taxes under 100 per cent duty drawback arrangement, bank guarantee and under the bonded warehouse system against the export LCs, provided by buyers through "import permit on returnable basis" from the office of the CCIE in Bangladesh.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

No regular transit thru' Ashuganj port soon

A full-fledged river transit facility through the Ashuganj port is unlikely to be given to India in the 'near future' due to the absence of necessary infrastructure, a senior government official said.

"We are not sure when the regular transit could be started. However, until the necessary infrastructure is developed, the trial run will continue to take place," the official of ministry of shipping told the FE.

The ministry last week organised an inter-ministerial meeting to get an update relating to the preparation for starting regular river transit using the Ashuganj port.

The meeting was told that various problems exist at the Ashuganj port which are barriers to starting regular transit. The problems include the lack of required infrastructure, non-finalisation of transit fee, absence of an office for customs department, no shed for transit goods and lack of necessary arrangement for their security.

Various government departments, involved in the transit activities, informed the meeting of the problems and sought remedies before taking any move to start the regular transit.

Shipping Secretary Abdul Mannan Howlader presided over the meeting which instructed the participants to inform the ministry about the problems in writing within next two weeks. After examining the submissions another inter-ministerial meeting will be convened to resolve the problems.

A core committee has recently submitted a report recommending transit fees ranging from US$ 252 to $ 54,368 for each consignment of cargo using Bangladesh road, river and train routes.

The fees will vary from 2 cents to 11 cents per tonne and per km depending on the route to be used.

Sources said a meeting at the prime minister's office (PMO) recently decided that Bangladesh will set four new conditions before starting regular transit and transshipment. To this effect step has been taken to amend the existing river protocol.

They also said while plying through Bangladeshi territory, Indian ships will be allowed to take service at Sheikhbaria, Mongla, Barisal, Chandpur, Narayanganj, Sirajganj and Chilmari points. The Indian sailors will be allowed to take necessaries like fuel oil, foods and medication from these places.

Officials said that the existing river protocol with India will be renewed next March. Before that necessary amendment may be carried out centring the transit and transshipment.

The Ashuganj port is being used as a transshipment point under the existing protocol which was signed based on the Bangladesh-India trade agreement of 1972.

In April this year India transported over dimensional consignments (ODCs) through the Ashuganj river port to establish a power plant in Tripura state. Later, several trial runs of transshipment of consignments were carried out through the river port.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

HC asks police not arrest tuku

Staff correspondent

The High Court on Wednesday against prison door without the correct way through the police not arrest Jatiyatabadi Chhatra Dal President Sultan Salahuddin tuku and two other leaders.

A HC bench of Justice Farid Ahmed and Sheikh Hassan Arif Justice passed the order after hearing a writ petition in this respect filed by tuku and two others - Obaidul Haque Nasir and Rafiqul Alam Maznu.

The Council the petitioners, Supreme Court Bar Association President Khandker Mahbub Hossain, told the Court that the three JCD deposit earlier issued Guide in all cases, in which she was involved after their arrest.

But police again she soon after her release at the prison gate and you arrested several pending cases, which illegally argues Mahbub.

The detective branch of police arrested tuku at Gulshan House of a relative in the town to 03: 00 on July 5 day before general strike 48 hours of the Bangladesh nationalist party and its allies called. The police took later Obaidul and Rafiqul.

More on Bangladeshi News
| Source: newagebd.com

C'wealth summit starts in Perth

 The Commonwealth Heads of Government Meeting (CHOGM) 2011 kicked off Friday with a call for more collaborative efforts by the world community to face the challenges of food security and climate change.

The three-day Commonwealth summit that began at Perth Cultural and Exhibition Centre (PCEC) would work on the theme of 'Building National Resilience, Building Global Resilience.'

The theme reflects the importance of addressing the pressing challenges at multiple levels: as individual states, as members of the Commonwealth, and as part of the global community.

The Head of the Commonwealth, Queen Elizabeth II, who arrived here on October 27 declared the ceremony open at 11 am (local time).

The opening ceremony began with traditional presentation of the Australian indigenous people following the arrival of the representatives of 53 member countries (Fiji's membership remain suspended) on the stage.

Prime Minister Sheikh Hasina is leading a Bangladesh delegation to the CHOGM 2011.

Meanwhile, leaders in CHOGM meet have agreed to a series of reforms to strengthen the role of CMAG in its dealings with serious or persistent violations of Commonwealth political values.

It follows two years of deliberations by Commonwealth Ministerial Action Group (CMAG), which was mandated in 2009 by Heads of Government in Trinidad and Tobago to consider ways of more effectively addressing the full range of violations.

"CMAG noted the widely shared view that it had hitherto been too reactive, and not sufficiently proactive," according to a CMAG report released in Perth, Australia Friday.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

No army for NCC elections

Hours after troops were due to take positions, the CEC said he did not see the possibility of army deployment for NCC polls.

"Since the troops have not arrived yet, we can assume that there will be no deployment of army," CEC A T M Shamsul Huda told reporters at 6:35pm at his office, reports bdnews24.com.

The Election Commission (EC) officials earlier said that four companies of army would be deployed in Narayanganj at 8am on Friday.

Officer Biswas Lutfur Rahman was quite candid in his response on Friday evening as he said, "Army personnel will not be deployed in the polls."

Soon after the Chief Election Commissioner's announcement, supporters of BNP-backed NCC mayoral hopeful Taimur Alam Khandoker took to the streets in protest.

Taimur alleged that the army was not deployed as the EC was not independent.

Earlier in the day, Selina Hayat Ivy slammed the Commission for not deploying the army from Friday morning, as per its prior announcement.

Awami League-backed candidate Shamim Osman, however, did not say anything in support of or against the Election Commission decision.

UNB adds: BNP vice-chairman Abdullah Al Noman on Friday demanded resignation of the Chief Election Commissioner and his colleagues as they failed to deploy army for the Narayanganj City Corporation polls.

"The CEC had said they would independently execute their decisions, but they couldn't. Even they've failed to deploy army [for the NCC polls]," Abdullah Al Noman told a press briefing at the party central office in the evening.

He said the Election Commission had decided to deploy army for the NCC polls at 6am on October 28 to ensure security of the voters in the face of demand by three mayoral candidates and the people.

"The EC suddenly changed its decision after a meeting today (Friday).

They're saying that they won't deploy army in the NCC as the government didn't cooperate with them," Noman said.

He said the EC claimed that it is unconstitutional that the government did not assist them to deploy army. "If the EC thinks that government's non-cooperation is unconstitutional then it can postpone the NCC polls."

The BNP leader said no Election Commission will be able to hold fair election until this government is there in power.

He demanded the EC change its decision and deploy army in the NCC by Saturday morning.

Accusing the EC of being subservient to the government, the BNP leader said the Commission is executing government decisions on the NCC polls. "It couldn't prove its independent existence in holding any election in the past."

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Govt optimistic about lining up jt venture investments

The government expects to line up funds from alternative sources for the proposed multipurpose Padma Bridge project after the World Bank suspended funding for the project due to graft allegations, officials said on Tuesday.

A number of international joint venture groups have expressed their willingness to invest in the mega project on build own operate and transfer (BOOT) basis, the officials added.

Generally BOOT deals are offered for 15 to 25 years by the investors who get back the investment with profits.

"A number of world famous infrastructure builders are in the process of forming joint venture groups to vie for a deal to build the proposed multipurpose bridge over the river Padma," a senior official of the communications ministry said requesting not to be named.

Most of the firms in talks for joint ventures for the project could be Chinese, Malaysian, South Korean, Indian and Japanese, he said without giving further details.

The joint venture groups would prefer BOOT deals for a longer period to ensure returns from their investment in the project through collection of tolls.

An official of the Bangladesh Bridge Authority said there was no problem if joint-venture firms came up for investment plan and the government approved it.

When contacted a senior official of the finance ministry said he won't talk to press on the issue as the mater is "very sensitive."

"We can expect at least three potential joint venture groups to vie for the deal for building the 6.15-km-long mega bridge," the communications ministry official said.

A Malaysian company has taken the lead to start talks for a joint venture with another foreign firm (not Bangladeshi) to undertake the mega project, the official said.

Malaysia's special envoy Datuk Seri Samy Vellu told reporters in Kuala Lumpur on Tuesday on return from a trip to Bangladesh that he had talks with the company based in Kuala Lumpur.

Mr. Samy Vellu, a former works minister who was appointed a special envoy to South Asian nations in January, said he took up the issue with the Malaysian company after Bangladesh Prime Minister Sheikh Hasina requested Malaysia to provide fund for the bridge. However he did not name the company.

"We are at present studying the feasibility report of the project prepared by consultants appointed by Bangladesh government," Malaysian official Bernama news agency, quoted Datuk Samy Vellu, as saying.

He said he had apprised Bangladesh prime minister that Malaysian experts would study the design and would come up for funding the bridge.

The WB temporarily suspended a promised loan of $1.2 billion on October 10, on grounds of alleged corruption in the process of short-listing the contractors for construction of the $2.9 billion multipurpose mega bridge.

Subsequently, the Asian Development Bank and Japan have also put on hold the release of their respective portion of funds committed for the Padma Bridge project. However the Islamic Development Bank (IDB) is yet to announce its decision about release of its committed fund for the project.

Finance Minister Abul Maal Abdul Muhith said on Sunday that the government had alternative arrangements to implement the Padma Multi-purpose Bridge project.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

BD's growth outlook uncertain, says WB

AppId is over the quota
AppId is over the quota
Bangladesh has insufficient fiscal leeway to cushion the impact of a global slowdown and its growth outlook for the year to June 2012 is uncertain, the World Bank said on Tuesday, reports Reuters.

Areas of concern include an increasing fiscal deficit, high and volatile inflation, overshooting of monetary targets, financial sector weaknesses and growing external imbalances, it said.

The country's year to June 2011 growth rate of 6.7 per cent, helped by strong performance in the manufacturing and construction sector and a bumper harvest, can only be sustained if exports continue to grow, according to the World Bank's bi-annual economic update.

What would work in Bangladesh's favour are lower international commodity prices, particularly oil and food, the report said.

Bangladesh's government is grappling with high inflation and aims to bolster economic growth to 7.0 per cent in the 2011-12 fiscal year, driven by exports and inflows of remittances.

Exports, largely garments, rose 22 per cent year on year in the three months to September while funds from Bangladeshis working abroad rose 9.0 per cent, a slower pace of growth than the previous year.

AFP adds: Global economic uncertainty looks set to scupper Bangladesh's ambitious plans for 7.0 per cent economic growth in the current fiscal year, the World Bank said Tuesday.

The impoverished South Asian country had unveiled the growth target -- the highest since the mid-1970s -- in the budget in June, after it clocked 6.7 per cent growth in the previous 2010-11 fiscal year.

The World Bank said the same level of expansion "can only be repeated" if exports continue to grow.

Export growth, which stood at 30 per cent in the first two months to August, plunged to a meagre 2.3 per cent in September as apparel shipments to key markets in Europe and the United States lost steam.

"Bangladesh has limited room for manoeuvre to cushion the impact of a second global slowdown if it happens," said Sanjay Kathuria, the World Bank's lead country economist for Bangladesh.

"It can affect Bangladesh's balance of payments through its impact on exports and remittances, put pressure on the exchange rate and increase economic uncertainty which might weaken investment and growth," the bank said.

Foreign remittances, which make up 10 per cent of the country's gross domestic product (GDP), have faltered in the wake of the Arab Spring, with 40,000 Bangladeshi workers returning from Libya alone.

Manufacturing has also been hit hard by an energy crunch caused by the suspension of new natural gas connections by state-owned monopolies.

Our Staff Reporter adds: A slow pace of reforms in Bangladesh can affect its rate of investment, as can inadequate energy supply and poor quality of its infrastructure. The changes in trade reforms and weakening of the financial sector can also affect export growth and investment.

This was indicated by the latest bi-annual economic update of the World Bank (WB), released on Tuesday.

"Improved fiscal and monetary discipline, combined with stronger efforts to address energy and infrastructure deficits, will be critical to sustain the growth performance of Bangladesh," said Zahid Hussain, WB senior economist for Bangladesh.

The Washington-based lender, however, foresees a favourable tilt towards the Bangladesh's economy as it said the lower international commodity prices, particularly oil and food, can give a breathing space to the country in the current fiscal.

Senior economist for Bangladesh at Washington WB headquarters Lalita Moorty said: "It will be vital for Bangladesh to ensure sound macroeconomic management, since expansionary macroeconomic policies could increase risks on the current account and make inflation management more difficult."

In its economic update, the WB said slowdown of remittances in the last fiscal, high and volatile inflation, overshooting of monetary targets, financial sector weaknesses, growing external imbalances and increasing fiscal deficit as well as composition of deficit financing remain areas of concern for the Bangladesh economy.

Lead economist of WB Dhaka office Sanjay Kathuria said Bangladesh has limited room for manoeuvring to cushion the impact of a second global slowdown if it happens.

"Rapid growth in subsidies, sustained high rate of growth of credit to the private sector and monetary financing of the fiscal deficit have led to the decline in maneuverability," he added.

Noting that the Bangladesh economy grew at 6.7 per cent in fiscal year (FY) 2010-11 continuing its recent upward trend in growth, the WB stated that the growth rate last fiscal reflected good performance in the manufacturing and construction sectors, two successive years of bumper crop harvest and sustained high contribution from the services sector, it added.

The report, however, noted the country's strong performance in FY11 can only be repeated if exports continue to grow, apparel exports gain from the recent India-Bangladesh agreement, and remittances continue to recover and the investment is boosted by improved infrastructure services, particularly power.

The economic update noted a protracted global economic slowdown could affect Bangladesh through several channels.

Meanwhile, another multilateral capital donor -- the Asian Development Bank (ADB) -- in its latest development outlook said Bangladesh's economy is expected to grow at 7.0 per cent rate in the current fiscal due to continuous export growth and expansionary domestic demand for rising remittance and income flows.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Infrastructure dev needed for transit trade: Muhith

United States news of Bangladesh. Dhaka

The Finance Minister, AMA Muhith, said on Wednesday that infrastructure in the transport sector must be developed before the start of cross-border business and trade in the region.

' We have serious problems in our waterways, roads and railways. We should according to India, go Nepal and Bhutan, but it seems not possible now because of a lack of facilities in infrastructure. These need to be developed, "he said."

The Finance Minister said at the opening session of "public private dialogue for the improvement of trade facilitation in South Asia" held in a local hotel.

The Federation of Bangladesh Chambers of Commerce and industry in cooperation with the International Finance Corporation and UKaid organized a full-day dialogue.

FBCCI President AK Azad the welcome delivered during Anil Sharma, head of the IFC advisory services in South Asia, an overview of the objectives which were public private dialogue.

As chief guest said, Muhith, that infrastructures developed prior to the start transit economy and trade, and until should be fixed.

He said that many works to be done to enhance trade in the region, and it must also a move to Myanmar, China and Thailand.

The Finance Minister said that unless investment and trade go together, there will be no development.

It is worth mentioning that growth and trade developed relationship of these South Asian countries, he said that growth should be facilitated by investment and trade.

Muhith said, that in the region, good alignment in standardised rules of origin, customs standard and handling and Office discipline. "Otherwise, will trade is frustrated."

He informed that the work in progress are to improve the quality control of the Bangladesh standards and testing institutions to better access to the neighbouring countries.

In his welcome speech, President FBCCI AK Azad, said that despite the geographical proximity of intraregional trade of the country's only about 5% it is although much opportunity available.

"More regional connectivity by road, air and waterways, enables industrial economies to take advantage of."

He said that it captured while markets for Bangladesh in northeastern of India, it still is untapped. If trade and boost up, it opens a larger market.

Azad calls the SAARC Governments committed to company liberal facilitation services, investment, energy cooperation and connection, were friendly trade policy with a focus on integration with regional trade, to speed up infrastructure for regional connections and promote socio-economic uplift of the South Asian countries.

FBCCI Director MA Momen said more effectively Bangladesh and improved facilitating trading system for the effective integration of South Asian countries must play a central role.

It is important to note that in the last 20 years from the South Asian countries, we doubled the $100 billion, while exports of East Asia rose 10 times in the same period, he said.

The workshop is part of a series of IFC-led initiatives in South Asia on effective trade partnerships between public and private stakeholders in Eastern and northeastern India, Nepal and Bangladesh help to identify areas where reform efforts have maximum effect on cross-border projects in the private sector.

More on Bangladeshi News
| Source: newagebd.com

Dhaka, Berlin agree to expand bilateral trade

 
German Chancellor Angela Merkel speaking with Prime Minister Sheikh Hasina while reviewing an honour guard during a welcoming ceremony at the chancellery in Berlin Tuesday. ? AFP BERLIN, Oct 25 (BSS): Bangladesh and Germany today agreed to further explore bilateral trade and cooperation in the areas of sustainable development, climate change, health and social safety programme.

The two countries also agreed to strengthen their present excellent bilateral relations and work together on various regional and international issues of common interests for mutual benefits of their people.

The agreement was reached at talks between Prime Minister Sheikh Hasina and German Chancellor Dr Angela Markel at the official residence of the Chancellor here.

In a joint press briefing after the talks, Hasina and Markel said they held a very frank, in-depth and fruitful discussion on various issues relating to mutual interests and regional and international issues of common concern.

Markel said Germany has very good relations with Bangladesh. She appreciated Hasina's role in building regional cooperation and connectivity in South Asia, particularly among India, Pakistan, and Myanmar.

Hasina said, "I'm returning home happily with many promises from a great leader and renewed commitment for supporting my people and working together for bilateral, regional and international cooperation."

"The visit is a milestone in our existing relations," she observed.

As the Bangladesh Prime Minister arrived at the Chancellery, Markel received her.

Hasina was accorded a red carpet reception as a smartly turned out contingent of German Army given her a guard of honour. National anthems of both the countries were played at that time.

The Prime Minister introduced her cabinet colleagues Foreign Minister Dr Dipu Moni and Health Minister Dr AFM Ruhal Haque to the German Chancellor.

Hasina, who arrived on a five-day official visit to Berlin to attend World Health Summit, availed of the opportunity to meet with the Chancellor of Germany, one of the largest trading partners and an important development partner of Bangladesh.

In their discussion, the leaders reciprocated their admirations for each other and shared their concerns and visions over various regional and global affairs including fighting terrorism and climate change.

Hasina called for continuing the existing German economic cooperation with Bangladesh and enhancing German support in sustainable development projects.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Rules for issuing new banks� licences may be softened

The stringent regulations set for issuing new banks' licences are likely to be softened as the Prime Minister's Office (PMO) is pursuing the issue amid 'pressure from influential quarters' willing to become bank owners, official sources have said.

Prime Minister Sheikh Hasina has sought clarification from Bangladesh Bank (BB) about the rationality of stringent regulations for new banks. The Ministry of Finance (MoF) in a letter issued last week to BB asked the central bank to let the ministry inform about its reply to the premier's queries, a BB official said.

However, the BB Governor said any change in the regulations would require approval from the Board of Directors of BB.

"The MoF referring to the query of the Prime Minister has sought to know about some issues relating to the regulations on new banks and the implications," Mr Atiur told the FE.

"We will give explanation on the rationality of the new criteria for new banks," he added.

He, however, said he was not under 'any pressure' to bring any changes to the regulations. Any change in the regulations has to be approved by the meeting of the board of directors of BB, the Governor said.

Sources at the PMO said, requirements of minimum paid-up capital criteria, white money and borrowed money issues included in the regulations are expected to be softened as the aspiring bank owners, also close to the incumbent government, have been pestering Sheikh Hasina for bringing about changes in this connection.

"At least two to three stringent conditions are set to be changed as far as issuing new bank licences is concerned," a senior bureaucrat at the PMO said.

According to the regulations for new banks, the paid-up capital of the bank shall not be less than Taka 4.0 billion, and the amount has to be provided by sponsor-directors of the proposed bank. Sponsors' contribution to the equity capital of the proposed bank will be required to be out of the net worth declared to the tax authorities in form IT 10B and the contribution out of borrowings from bank or non-bank financial institutions shall not be acceptable.

The previous regulations for issuing bank licences had no stringent criteria of declaring money in tax return, while no bar was there in borrowing money from banks or financial institutions to contribute sponsor-amount for a new bank, a senior official at the finance ministry said.

The BB Governor said they would include a comparison of the current and previous regulations along with their clarification to PMO and MoF.

The last time new bank licences issued were in 1999 and 2000 . Currently, the country has 47 scheduled banks.

Finance Minister AMA Muhith earlier said the government would issue new bank licences on 'political considerations' which had sparked criticism.

The BB officials hinted that a total of six to eight licences for new banks are likely to be issued this time.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Oil nears $110 to Libya crisis

text is null
Parameter name: text

More on Bangladeshi News
| Source: newagebd.com

Manipulators again on the prowl?

The move of the Bangladesh Association of Bank (BAB) to revitalise the flagging stock market, apparently, has fallen through.

Only a day after the formal announcement about the launching of the market stabilization fund by the BAB, the benchmark index of the Dhaka Stock Exchange (DSE), the DGEN, lost nearly 181 points or 3.19 per cent on Monday. Stocks at the DSE on the two previous sessions gained with low turnover riding on the speculations about the banks' re-entry into the market with substantial liquidity.

But the market reacted negatively to the BAB announcement about a fund that did not match up with the investors' expectations. Besides, there are reasons to be sceptical about the success of the moves -- barring the one sponsored by the state-run Investment Corporation of Bangladesh (ICB) -- initiated so far by some stakeholders who rather have a tainted public image.

The ICB, understandably, under instruction from the government that came under scathing criticism from all around after the collapse of the market in December last, launched the Tk 50 billion Bangladesh Fund (BF) to help stabilise the market. But until now the BF having mobilized only Tk. 15 billion has not yet succeeded in creating any favourable impact on the market.

The launching of the BF followed at least a couple of market stabilisation initiatives that, many tend to suspect, have been masterminded by a few individuals at whom the Ibrahim Khaled-led probe committee pointed fingers.

Questions have been raised galore about the government remaining indifferent to the need for taking appropriate actions against the people accused of wrongdoing that had led to the abnormal rise of the market and subsequent crash, as per law of the Nature. This indifference, it is widely believed, has emboldened the 'manipulators' to play yet another game with the market and complete their unfinished mission.

The interest, reportedly being shown by the alleged manipulators to shore up the market, might appear as an unnatural event. It was, in fact, natural for such persons to hide themselves from public gaze, at least, for a certain period of time. But there must be something very urgent behind their frantic efforts to buoy up the market, at least, for a reasonable period.

It could be that they want the market to reach to a certain height where they can offload their stocks bought earlier from the secondary market and also execute the scheme for the pre-placement of shares carrying premiums. They are also looking for avenues to complete their yet unfinished agenda through widely-feared abuses of book-building method and direct listing.

Despite having support from those who matter most in the capital market, the suspected manipulators until now have not been successful in their new mission to take the market to a sustained rally for a reasonable period of time because of the investors who are desperate to make an exit from the market.

Moreover, the market needs injection of substantial volume of liquidity in quick pace. But that is unlikely to happen even with the launching of a few market stabilization funds. The approval of such funds and their availability in day-to-day transactions in the bourses involve substantial time and regulatory process. There should be no reason to believe that the initiators of so-called stabilization funds are not aware of those requirements. Yet they, seemingly, are trying to raise a false hope among the investors about a market turnaround.

What is most intriguing is the involvement of the BAB in the market shoring up activities. The lukewarm response from most of its members to the latest efforts for launching a stock market stabilisation fund does indicate that most banks are not interested in such a move or are not, in reality, in a position to put extra money for investment in the country's trouble-torn stock exchanges with investors' confidence being largely eroded by some uncanny developments in the market. There is a strong feeling among the banking circle that the BAB, of late, has developed a tendency to go beyond the dotted lines and play to the tunes of outsiders.

There is no denying that banks had earned hefty profits from their investment in stock markets. But a good number of them are already in trouble because of the market collapse. Under the prevailing circumstances, the banks do not have enough good reasons to demonstrate any extra enthusiasm about making fresh investment in stock market. Nor the central bank would approve of any kind of adventurism on their part.

While wrong signals coming galore from the stock market, the government appears to be clueless about how best it can handle the situation. Rather, some of the actions and statements coming from the finance ministry honchos appear both confusing and amusing, at times. The after-effect of the stock market crash has given rise to lots of distortions in the economy and society. The situation demands well-thought-out actions that would help stabilise the market through normal process. The government would commit a mistake if it extends support, overtly or covertly, to any attempt to buoy up the market artificially. It would cause more harm than good to the market in the long run.

zahidmar10@gmail.com

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Teesta deal to be signed on agreed formula: Rizvi

The much-talked-about Teesta water-sharing agreement will be signed with India in line with a formula agreed earlier, said Dr Gawhar Rizvi, International Affairs Adviser to Prime Minister Sheikh Hasina, on Monday.

"We still hold on to this stance and no other formula will be accepted," he said while addressing a luncheon meeting organised by France-Bangladesh Chamber of Commerce and Industry (CCIFB) held at Ruposhi Bangla Hotel in the city.

The topic of discussion in the meeting was impact of Indian Prime Minister Dr Manmohan Singh's visit to Bangladesh on bilateral development of trade, commerce and industry.

Addressing as the chief guest, the adviser said the Teesta agreement was not signed due to some internal problems of India. "The problem is between Delhi and Kolkata. Dhaka has nothing to do with this." He said Indo-Bangla relationship has been caught up in our domestic politics for long. There is a perception which politicians injected to the people that 'You should not trust India as India does not trust us'.

The adviser said India and Bangladesh share 2,400 miles of border that is world's largest. Bangladesh-India relationship is the most important for this region.

He said the relation between India Bangladesh has got a new shape and a new trust has been created after this (AL-led alliance) government came to power, specially after Hasina's visit to Delhi in January 2010. The two Premiers agreed on some common issues for the betterment of the peoples of two countries.

He said during the discussion between two countries two main things were high on the agenda - the first one was connectivity and the second water and power issue.

Dr Rizvi said 80 per cent of the Teesta River is in India and 20 per cent in Bangladesh. But Bangladesh wants fifty-fifty share of water.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Austerity, further hike in fuel, power prices likely

The government may go for a drastic cut in its spending and hike in fuel price and power tariff in a bid to maintaining the country's macro-economic stability that, of late, has come under threat due to soaring subsidy costs.

The meeting of Council for the Co-ordination of Fiscal, Monetary and Exchange Rate Policies held Monday at the Ministry of Finance (MoF) with Finance Minister AMA Muhith in the chair reviewed the overall macro-economic situation and discussed possible ways of meeting the challenges.

The meeting decided to identify areas where spending could be reduced to help lessen the pressure on the budgetary resources, a secretary who attended the meeting, said.

The process of locating possible candidates for spending cut will be completed by the end of next month. The Coordination Council will meet again to decide finally on readjustment of government spending, he added.

"The government's fiscal management faces problems due to high spending on subsidies. Since it is difficult to cut subsidy costs, the government is left with no options other than trimming its revenue expenditures or increasing fuel price and power tariff," the senior government official told the FE on Monday.

Bangladesh Bank (BB) Governor, Chairman of National Board of Revenue (NBR), secretaries of finance division, banking and financial institutions division, economic relations division (ERD) under the MoF, and secretaries of commerce and planning ministries also attended the meeting.

The meeting analysed all major economic indicators of the current fiscal year. According to the latest data, placed in the meeting, the bank borrowing of the government as of October 19 was Tk 95.75 billion. Of the total amount, Tk 60.75 billion was borrowed from BB, while the rest from the scheduled banks. The bank borrowing target set in the national budget for the current (2011-2012) fiscal was Tk 189.57 billion.

"The situation with the government's bank borrowing during the first 109 days of the current fiscal year is really serious one. If the trend continues, the total bank borrowing might be more than twice the target set for the current fiscal," a BB high official told the FE.

The meeting was told that the amount of subsidy for the current fiscal, originally estimated at Tk 224.70 billion, could rise up to Tk 410 billion if price adjustments are not made soon. In the last fiscal, subsidy was originally estimated at Tk 142.63 billion. But it went up to Tk 193.99 billion in the revised budget, according to the finance ministry's budget documents.

The meeting noted with concern that foreign aid disbursement recorded a decline in the first quarter of the current fiscal as the country received funds worth US$ 246 million, $70 million less than the same period of last fiscal.

However, export and revenue earnings marked 22 per cent and 15 per cent increase respectively during the first quarter of the current fiscal year.

"We had 15 per cent revenue earning growth during July-September period compared to that of the corresponding period of the previous fiscal," Nasir Uddin, Chairman, NBR, who attended the meeting, told the FE.

He said he was hopeful of achieving revenue target set for the current fiscal year.

The meeting was unanimous on the issue of reducing the bank borrowing by the government with a view to reining in the inflationary pressure on the economy. Inflation soared to 11.97 per cent in last September which was the highest in the last decade.

Another high official felt that the government would face difficulties to cut both revenue spending and subsidies.

Measures such as cutting the number of foreign trips by government officials and suspending purchase of new vehicles for government officials and for project offices would make little difference.

He, however, said the government has no option other than increasing the prices of fuel and power tariff to tackle the situation.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Govt to sign coalmine contract with China consortium again

The government has decided to award the existing contractor -- China National Import and Export Corporation (CMC) led consortium with XMC - the job of coal extraction and management of the country's lone operational coalmine at Barapukuria for the next six years, an official has said.

A formal contract will be signed again with the consortium comprising CMC and Xuzhou Coal Mining Group Company Limited (XMC) shortly, said the official at the energy ministry.

The Chinese CMC-XMC consortium came out successful in getting the work as it was the lone bidder for future coal extraction and management of Barapukuria coalmine in the northern district of Dinajpur in the country, he said.

The consortium is now continuing operation at Barapukuria coalmine following a 'green signal' from the energy ministry.

The previous contract with the Chinese CMC-XMC consortium expired in August 2011.

Under the new contract, the Chinese consortium will require continuing operation on the fully mechanised long-wall retreat pillarless system of mining, using multi-slicing extraction techniques with the minimum production capacity of 1.0 million tonne of coal per year.

Currently, annual production from Barapukuria coalmine is around 800,000 tonnes per year.

But production will double to 1.6 million tonnes by next year, Managing Director of Barapukuria Coal Mining Company Limited (BCMCL) Md Quamruzzaman said.

BCMCL is the first fully mechanised underground coalmine in the country where coal is being mined from a single layer having approximately 36 to 40 metre thickness.

Total coal reserve in Barapukuria is estimated at 390 million tonnes, of which only 64 million tonnes are recoverable. Some 1.13 million tonnes of coal have so far been extracted.

Bangladesh's lone 250-megawatt (mw) capacity coal-fired power plant near the Barapukuria coalmine is a large consumer of Barapukuria coal.

"The power plant consumes around 70 per cent of the total coal production, if it remains operational," said the BCMCL top executive.

Construction of Barapukuria coalmine was completed by the CMC-led Chinese consortium under supplier's credit on 31st may 2005.

On completion of construction, a production, management and maintenance contract was signed with the CMC-led consortium along with XMC on 4th June, 2005 for a period of 71 months to produce 4.75 million tonnes of coal from the 1st slice of underground mine at a total cost of US$ 82.30 million.

Officials said BCMCL had floated international bid in December, 2010 aiming to get a fresh contractor for coal extraction from Barapukuria.

But the Chinese CMC consortium emerged as the lone bidder for management, production and maintenance services of the Barapukuria coalmine much to the discomfort of the BCMCL.

The Chinese consortium earlier had sought extension of their contract, but BCMCL was not interested to extend it and floated the tender seeking a new contractor.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

ADP implementation in Q1 gives disconcerting picture

AppId is over the quota
AppId is over the quota
FHM Humayan Kabir

The government could implement only eleven per cent of annual development programme (ADP), in terms of its financial outlay, in the first quarter (Q1) of this fiscal, reflecting a disconcerting picture about the utilisation of the allocated funds, mostly in the form of foreign aid.

Planning ministry officials said a total of 54 government ministries and divisions spent Tk 48.35 billion -- 11 per cent of Tk 460 billion outlay of the ADP for the whole fiscal year (FY) 2011-12 -- during the July-September period.

The government in July-September period this fiscal received only US$246 million in foreign aid, $70 million less than that of the same period last fiscal (2010-11), finance ministry data showed.

According to Implementation Monitoring and Evaluation Division (IMED), the government agencies spent only four per cent of their allocated Tk 186.85 billion project aid (foreign aid) while 15 per cent were spent out of Tk 273.15 billion from domestic resources in the first quarter of the current fiscal.

A senior IMED official said the project implementation rate increased by two percentage points to 11 per cent in the first quarter (Q1) of 2011-12 fiscal compared to the situation during the same period last fiscal. The project aid utilisation, however, dropped during the period under report.

The ministries and agencies performed relatively better in utilising funds from the government's internal resources as they could spend Tk 40.11 billion, out of Tk 273.15 billion outlay in the ADP.

Though several policy measures were taken to help accelerate the pace of ADP implementation and raise the capacity of the agencies concerned, most large spending ministries, out of a total of 10, continued to show a poor level of execution in the Q1 of the current fiscal.

Only the local government and power division could implement 20 and 16 per cent respectively of their development budget, but eight other ministries and divisions with larger allocations spent their funds within a range between 2.0 and 5.0 per cent, he said.

The government has framed a Tk 460 billion ADP for the current FY2012 to execute 1039 projects in order to expand country's poor infrastructure, improve the situation in social sector and alleviate poverty.

The IMED data showed that energy and mineral resources division and the health and family welfare ministry performed the worst among the 10 large development budget spenders. Only 2.0 per cent of their allocated funds could be utilised in the Q1 of FY2012.

The water resources ministry, 8th largest development budget spender, could utilise only 3.0 per cent of their ADP allocations in July-September period.

Besides, the primary and mass education ministry, railway, road and bridge divisions and the education ministry spent in Q1 only 5.0 per cent each of their total budget outlay of this fiscal, the IMED data showed.

The government took some strict measures in July, the very first month of the FY, to help strengthen the capacity of the implementation agencies because most of them used to fail in making timely procurement, a major area of concern for quickening the pace of ADP implementation.

The planning ministry has already issued some guidelines to the development budget spenders, taking their monthly action and procurement plans into consideration, in order to streamline the implementation of their development projects.

"The major spenders failed to utilise the maximum amount of the allocated fund, adversely impacting the overall implementation scenario in the Q1 this fiscal, though they received about 80 per cent of the total Tk 460 billion development budget outlay," a senior IMED official told the FE.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Thailand raises prices despite economic tremble

Agence France-Presse. Bangkok

Thailand's Central Bank increased its key rate of interest on Wednesday for the sixth time this year say that inflation was a greater threat than the slowdown in the global economy.

The Bank of Thailand monetary policy Committee voted 5-2 to 3.50%, the highest level in about three years to increase the federal funds rate by 25 basis points.

Thailand lifted to 225 basis points since July 2010, to tame inflation, which is four percent on an annual basis about has its key interest rate.

The latest move came just a day after the Government data showed, that the economy has led to a strong slowdown of exports 0.2% in the second quarter as supply shortages by Japan's earthquake caused shrunk.

"All MPC members see greater risk for growth, but most still see that inflationary risks outweigh risks for growth," said Bank of Thailand Assistant Governor Paiboon Kittisrikangwan.

At the same time, he has planned, that the Bank could mark a break at its next session for October.

"Falling inflation, the rate will be increased,", Paiboon said.

Supavud Saicheua, Senior Economist at Phatra securities, predicted that the Central Bank to raise their prices once again and then be put on hold, would say that there are apparently not too nervous about the global economic.

"I'm more worried about economic uncertainties in Europe and the United States as the Bank of Thailand," Supavud said.

The Central Bank has previously warned that the new Government expected to populist policies, such as a higher minimum wage and increased rice prices for farmers, fuel price pressure.

More on Bangladeshi News
| Source: newagebd.com

Take advantage of our investment opportunities, PM tells Germans

 BERLIN, Oct 24 (BSS): Prime Minister Sheikh Hasina today invited the German entrepreneurs to take advantage of the investment opportunities in Bangladesh, saying the country has offered most liberal foreign direct investment (FDI) regime in South Asia.

"Bangladesh allows the foreign investors for repatriation of hundred per cent of their profits and equity. . .We are eager to work in partnership with you for mutual gains and benefits as we journey to the future," she told a seminar here.

Representatives of leading German companies including Macuanji GIZ, Commerce Bank, DHL, Ministry of Economic Cooperation and Development, Solar World AG, Federal Foreign Office of Germany and local parliament members attended the seminar on "Bangladesh -- Emerging Market" organised by German-Bangladesh Chamber of Commerce at Hotel Adlon.

Hasina said, "Come to Bangladesh and help us build 'Sonar Bangla' (Golden Bangladesh), a land of prosperous and happy people."

She highlighted the business opportunities offered in Bangladesh for foreign investors and said Bangladesh has always relied on Germany as a trusted development and trading partner.

The two countries enjoy the best of relations based on shared values and convictions, she said.

German Ambassador to Bangladesh Hogler Michael gave the welcome speech while President of Bangladesh-German Chamber of Commerce and Industries (BGCCI) Saiful Islam made opening remarks.

Partner of McKinsey & Company Dr Achim Berg presented a case study report on readymade garments (RMG) industries while Chief Executive of PICARD Germany Thomas Picard spoke on leather industry investments in Bangladesh.

Deputy chief executive officer and MD of International Economic Affairs of German Chamber Federation (DIHK) Dr Volker Treiers, and president of Federation of Bangladesh Chamber of Commerce and Industry AK Azad, and Bangladesh Ambassador in Germany Mosud Mannan, spoke, among others, on the occasion.

The presentation was followed by a panel discussion in presence of Hasina and moderated by editor of the Daily Star of Bangladesh Mahfuz Anam.

Touching upon Bangladesh's economic success over the years, she said, "Despite global economic downturn, the country during the present government's tenure could maintain an average 6.0 per cent gross domestic product (GDP) growth. Last year, the GDP growth was 6.7 per cent."

Bangladesh's next Five-Year Plan (2011-2015) has been designed with the goal of achieving an average growth of around 8.0 per cent, she said.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

OMS of food grains to cover upazilas from this week

Open market sale (OMS) of food grains, mainly rice will be extended up to upazila level across the country from the current week, said a senior government food official on Sunday.

"A similar distribution process of foods at cheaper price has also been introduced in union level from last week," Ahmed Hossain Khan, director-general (DG) of food department told the FE.

Months earlier the OMS was expanded to district headquarters from the cities where the programme was last introduced in 2010 when food prices turned volatile.

The government at times conducts food distribution at subsidised prices to support the poor.

Meanwhile, officials and traders assume that the price of rice in local market are likely to stay stable, if not ease in the coming months, as the food department and private food dealers have started boosting supply.

Shortage of warehouses and an expected good harvest of upcoming Aman paddy following a recent bumper Boro crop warranted relevant dealers to ease their respective stocks, they said.

However the food DG said: "The distribution is a normal part of government programme at the onset of every financial year or as warranted on certain situation."

The department of food has an emergency stock of some 1.55 million tonnes, including 250,000 tonnes of wheat, Mr. Ahmed Hossain Khan said.

In addition to the present stock, nearly 50,000 tonnes of food grains imported by the food department were either lying at store houses in Chittagong port or in the supply pipelines, port officials and traders said.

But some officials of the food department said the stocks so far reached an optimum level of the storage capacity, leaving no space for fresh consignments.

They said Bangladesh had a plan to boost the emergency stocks to some 2.5 million tonnes, but a delay in building new warehouses, had restricted the implementation of the plan as of now.

The distribution of food through OMS and fair price shops were being conducted under a plan to distribute some 570,000 tonnes of rice and 260,000 tonnes of wheat by June 2012, another official of the food department said.

Through the OMS and fair price shops some 180,000 tonnes of rice and 30,000 tonnes of wheat will be distributed by November-end, they said.

Rice mill owners also have a large stock of rice and they were also expected to release their stocks ahead of aman paddy harvest anticipating price fall, traders said.

Now rice and wheat are sold at Tk 24 and Tk 20 per kg respectively under OMS in cities.

In addition to OMS and fair price sales, the government also distributes food free of cost among ultra poor under a vulnerable group feeding programme.

Meanwhile the food department has floated a tender recently to import 50,000 tonnes of wheat in the wake of a rising trend in local market despite a price slump in world market.

The tender was part of an ongoing initiative of the food department that has a plan to import 900,000 tonnes of wheat in the fiscal year 2012.

Prices of rice were stable while flour prices hiked in the kitchen market over last week.

Prices of loose flour (Maida) grew by Tk 7.0-8.0 per kg over the past week and was sold at up to Tk 44 per kg, while the price of packed flour rising up by Tk 8.0 per kg was sold at between Tk 46 and Tk 48 per kg in the city's kitchen markets.

Prices of flour (Atta) also increased by Tk 2 per kg. Retailers charged Tk 26-31 for a kilo of unpacked item and Tk 63-64 for a two kg packet of Atta.

Fine variety of rice was sold between Tk 42 and Tk 54 depending on quality and while coarse rice was sold between Tk 32 and Tka 40 per kg.

The food production in the last crop season reached some 35 million tonnes, including about 1.0 million tonnes of wheat, against 34 million tonnes in previous crop season, food ministry officials said.

The production is enough to feed some 160 million people of the country, where however 30 per cent of the people cannot afford to buy foods, experts say.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Experts sceptical about prospects

The decision by private banks to create a Tk 10 billion market stabilisation fund (MSF) may not be enough to shore up the country's flagging bourses as the MSF may take months to launch, experts said Sunday.

News of the fund being launched by the banks pushed the benchmark DGEN index five per cent up in the first hour of trading, but the gains were clipped in the closing hour as euphoria gave way to concern over the size and impact of the fund.

Bangladesh Association of Banks (BAB), a platform of bank owners, announced creation of the fund at an emergency meet, but the association kept its initial size at Tk 10 billion -- a fifth of the original plan put forward by the BAB president a day before.

Experts said with the stocks facing a crisis in confidence, they were not sure how effective the fund would be in propping up the market, which has lost more than 30 per cent this year -- the worst feat since 1997 when the Dhaka Stock Exchange dived 67 per cent.

Yawar Sayeed, the managing director of AIMS of Bangladesh, said since the MSF would operate like a mutual fund, it needs to go through a long drawn-out process for launching and necessary approval from the regulator.

"I appreciate the BAB

move. It is timely. But they should know that things don't happen overnight in Bangladesh. An open ended mutual fund needs a long time for clearance," he said.

The fund manager said if the recent experience of the Tk 50 billion Bangladesh Fund was any indication, the MSF could hardly make any difference in the market.

"The Bangladesh Fund is the country's largest open-ended mutual fund. It is set up and operated by Investment Corporation of Bangladesh, which is a very capable organisation. And yet the fund had a poor debut," he said

"In my opinion the BAB move will bring no positive outcome either in the long run or for the time being," Mr Sayeed said.

Dhaka University finance professor Salahuddin Ahmed Khan echoed Sayeed, saying the MSF won't bring any "immediate benefit" to the market as its launching may need at least two-three months.

"All the market needs right now is participation of banks in day-to-day trading. Their presence can lift investors' morale. The collective move by the BAB is fine, but the banks can start trading individually," he said

DSE President Shakil Rizvi is also skeptical about the BAB move, saying similar promises by other stakeholders bore no fruits.

"Many people make announcement and unveil plans for the stock market. So, the representatives of BAB will have to prove that they mean business. BAB should also make financial commitment for the fund," he told the FE.

Former Securities and Exchange Commission (SEC) Chairman AB Mirza Azizul Islam, however, welcomed the BAB move, saying the market needs pumping of new liquidity, no matter where it comes from.

"The bourses are facing a liquidity crisis. In such a situation, the latest decision by the BAB will ease some concerns," Mr. Aziz, also a former advisor of the caretaker government, said.

He said investors' shaky confidence will get a fillip riding on the BAB's announcement of operating the MSF and the public subscription of the Bangladesh Fund as well.

Chittagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed said it's a high time for the banks to make investment in the capital market.

"The banks have realised that they should not miss the golden opportunity. Average P/E ration has come down to around 14. It is the best time to buy shares," Ahmed said.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Greater South Asian coop in trade, connectivity, energy, food stressed

With the fear of a double-dip recession casting a shadow over the global economy, South Asian nations must fend for themselves by stepping up regional efforts in trade, connectivity, energy and food security, a forum was told Sunday.

Top officials and experts at the two-day long Fourth South Asia Economic Summit (SAES IV) said the eight nations that make up the SAARC should also strike close ties with Central Asia to tap into the latter's rich energy reserve.

They also called upon the governments in the region to issue visas more liberally, as increased contact among the peoples is key to foster ties and boost trade and business between the eight nations.

Private think-tank Centre for Policy Dialogue (CPD) organised the SAES IV on 'Global Recovery, New Risks and Sustainable Growth: Repositioning South Asia' at a city hotel. Sunday was the closing day of the forum.

Member of CPD Board of Trustees and former finance minister M Syeduzzaman presided over the plenary session titled "Towards an Inclusive Growth in South Asia: Role of Regional Cooperation".

Chief guest Muhammad Faruk Khan, the Bangladeshi commerce minister, said the SA nations have failed to exploit the region's rich trade potentials owing to distrust sown by the politicians.

But in the wake of a sputtering global growth, the South Asian countries must set aside differences and bump up intra-regional economic ties to transform the region into a global growth engine.

"I believe close cooperation in economic and trade areas in SAARC (South Asian Association for Regional Cooperation) will help boost the momentum of growth that we already witnessed," the minister said.

"There are ample reasons to make us optimistic in this regard. Our region (South Asia) is bestowed with tremendous untapped potential, and together we can explore and make the best use of it for our mutual benefit," he added.

He said that South Asia lived up to its growth potential in the last decade and the "prevailing scenario suggests that the region would continue to remain so in near future".

He regretted that the politicians had used trade to settle scores between the nations.

"Over the period trade has been used as political weapon denying the benefit to our common people. We need to get out of this unhealthy practice. We should keep trade and economic cooperation above politics," the minister said.

He hoped SAES IV will provide useful inputs for development of SAARC vision in the area of trade and economic cooperation.

Senior Adviser Minister for Economic Affairs to the President of Afghanistan Dr Sham L Bathija laid emphasis on people to people contacts in South Asia, which is home to one-fourth of global human population.

The visiting minister strongly backed issuing multiple visas for businessmen to make sure the entrepreneurs can move freely exploring new avenues of growth in the region.

He said as a landlocked country -Afghanistan- could be benefited if broad-based regional connectivity in South Asia is established.

Executive Director of Institute of Policy Studies of Sri Lanka (IPS) Dr Saman Kelegama said regional cooperation is necessary to alleviate poverty and improve quality of people's lives.

Bangladesh Bank (BB) Governor Dr Atiur Rahman said warming bilateral relations between Bangladesh and India has played a crucial role in fostering recent cooperation in a raft of sectors.

"Good bilateral ties help build sound base for fruitful multilateral co-operation in the region," the governor said.

M Syeduzzaman said the governments of South Asia must take actions for reducing poverty and inclusive growth.

"Ensuring political justice, regional connectivity, cooperation on energy and power, employment generation in rural non-firm sectors are needed in South Asia," Mr. Syeduzzaman said

In addition, concerted efforts are a must for facing the fallouts of climate change in order to increase farm production for food security in South Asia, he said.

Director General (DG) of National Council for Applied Economic Research (NCAER) of India Dr Shekhar Shah, Chairman of Druk Holding and Investments and former minister for trade and industries of Bhutan Dr Lyonpo Om Pradhan and Research Fellow of Sustainable Development Policy Institute (SDPI) and former adviser to the Planning Commission of Pakistan Dr Vaqar Ahmed also spoke.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Gaddafi has lost; but who won?

Burning debris are seen after rebels based in the capital Tripoli, following heavy fighting on 23 August attached overrun, Libyan leader Muammar al-Gaddafi Bab al-Azizya. : AFP photo

In Afghanistan and the Iraq the external forces to military success responds by exaggerating their hands. It deals with their opponents
vindictively and adopted, they would have to never beaten. You convinced themselves, who were their local allies
Representative and more effective, when they were really. It is that the ingredients are created in the heady moment of victory,
Patrick Cockburn writes the future disasters, produce

THE civil war in Libya went on longer than expected, but the fall of Tripoli came faster than. As in Kabul in 2001 and Baghdad in 2003 were there no last stand of the defeated regime, whose Anhänger appear away have melted, when they saw that defeat is inevitable.

It is indeed clear that Colonel Muammar Gaddafi has lost power, it is not sure, he has won. The anti-militias, that now in the capital streaming were by a common enemy United, but not much else. The Transitional National Council in Benghazi, as the legitimate Government of Libya, of so many foreign States recognized is already of dubious legitimacy and authority.

There is another problem in the war ended. It has never been a just trial of strength between two groups of Libyans due to the crucial role of the NATO air strikes. The rebels themselves admit that their name without with 7.459 air raids on targets Pro-Gaddafi - they would be led in the air war - dead or in flight. The question therefore remains as the rebels peacefully supports can convert their foreign victory on the battlefield to a stable peace for all parties in Libya.

Precedents in Afghanistan and Iraq are not encouraging, and serve as a warning. The anti-Taliban troops in Afghanistan won military success thanks foreign air support as in Libya. You used then this temporary dominance arrogant and catastrophically establish a regime weighted, against the Pashtun community.

In the Iraq, the Americans - over confident after the easy defeat of Saddam Hussein - the Iraqi army disbanded and former members of the Baath Party excluded from jobs and makes you little choice, but to fight. Most Iraqis were glad the end of Saddam Hussein, but the battle to replace him, almost destroyed the country.

Does the same thing in Libya? In Tripoli, as in most oil States, the Government provides the most jobs and many Libyans have also under the old regime. How will they pay now for it on the losing side? The air was thick yesterday to avoid acts of vengeance with calls to premiere for its fighters. But it was only last month that the TNC Commander-in-Chief in some obscure and unexplained Act of revenge had been murdered. The rebel Cabinet was dissolved, and again not been produced, which his turns out to investigate the killing. The TNC produced guidelines for ruling country post-Gaddafi, which aims to ensure that law and order be maintained, people fed and continued public service.

It is much too early to know whether a piece of foreign-inspired wishful thinking or some beneficial effect on the development of this. The Libyan Government was a dilapidated organization in the best of times, so get everyone in the ground to a halt in its effectiveness not too flashy at first. But many of those celebrating in the streets of Tripoli and cheering on the advancing rebel columns will expect that their lives better and will be disappointed if this does not happen.

Foreign powers will likely press for steps to form a constituent Assembly of a kind to give the new Government legitimacy. It must be to create institutions, largely abolished the Colonel Gaddafi and supposedly democratic committees that monitored its quirky a-man rule in fact. This will not just be done. Long-term opponents of the regime it is difficult to loot the victory with the parts, the are their coats at the last minute.

Some groups have together was authorized by the war itself, as long at urged the edge Berber from the mountains southwest of Tripoli, the most effective fighting militia. You want to be recognized its contribution in a redistribution which makes.

Libya has several advantages over Afghanistan and Iraq. It is not a country with a great and desperate segment of the population of destitute and life on the edge of malnutrition. It must be not the same blood-soaked recent history as Afghanistan and Iraq. Never include his a-man rule in close by Saddam Hussein for savagery came for all the demonization of Colonel Gaddafi in the last six months.

In Afghanistan and the Iraq the external forces to military success responds by exaggerating their hands. She treated their opponents vindictively and it assumed that she never to been beaten. They convinced themselves that their local allies were representative and more effective, when they were really. In the heady moment of victory, it is that which produce future disasters the ingredients are created.

_________________________

CounterPunch.org, August 23. Patrick Cockburn is the author of Muqtada.

More on Bangladeshi News
| Source: newagebd.com

Govt has other ways to implement Padma Bridge project : Muhith

Finance Minister Abul Maal Abdul Muhith said on Sunday that the government had alternative arrangements to implement the Padma Multi-purpose Bridge project after the World Bank (WB) suspended its promised funds, while Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) deferred their loans' effectiveness for it.

"We have other ways," the minister told reporters after being asked whether the government had alternative sources to finance the Padma Bridge project if the pledged funds from major donors including the WB were not disbursed.

He said misunderstandings with donors were nothing new while implementing development projects, saying, "With donors, it is a regular affair."

"Financing was stopped several times during implementation of the Jamuna Bridge on the issue of compensation. But in the case of Padma Bridge, not a single allegation was raised on the compensation issue from donors," AMA Muhith told reporters after a meeting with US Charge d'Affaires in Dhaka Nicholas Dean at his Secretariat office.

He said they have written letters to WB elaborating on every aspect relating to Padma Bridge and the next course of action as far as the role of the government is concerned.

"Let us see what happens," the finance minister told reporters.

He said Dr Muhammad Yunus did not take part in any 'campaign' to prevent foreign aid from coming to Bangladesh.

"There is no negative impact on foreign aid due to Yunus," the minister said.

Responding to a question, the finance minister said they were facing problems in reconstructing 54 subsidiary companies of Grameen Bank (GB) as International Finance Corporation (IFC), a private sector investment arm of WB, has regretted to extend cooperation in the planned restructuring after it was asked by the government.

"IFC has regretted on the ground that they have also investments in the subsidiaries of GB," Muhith said.

"We will appoint a chartered accountancy (CA) firm to audit the 54 subsidiaries," He added.

He said the signing of US-Bangladesh Trade and Economic Cooperation Forum (TECF) deal is taking time due to the unresolved issue concerning labour rights.

"We will soon invite the US authorities to Dhaka for holding discussion on TECF with both the parties (Bangladesh and the US) having their own draft agreements," Mr Muhith told reporters.

"We have our clear opinions on the labour issue to be included in the TECF agreement," he added.

The United States Trade Representative (USTR) office has recently conveyed Washington's position on the labour issue to the Ministry of Foreign Affairs (MoFA), it has been learnt.

The conditions set by the USTR on the particular issue are: freedom of association of workers, effective recognition of workers' right to engage in collective bargaining, elimination of child labour and elimination of discrimination in respect of employment and occupation.

The latest stance of the US came following a proposal of Bangladesh through which the latter urged for inclusion of the words like 'to protect the fundamental labour rights' in the agreement, instead of mentioning the four specific clauses on the issue of labour rights, which the US has refused to accept, a diplomat said.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

BAB announces launching of market stabilisation fund

AppId is over the quota
AppId is over the quota
FE Report

Private commercial banks (PCBs) announced Sunday the launching of a Tk 50 billion stock market stabilisation fund (SMSF) to help revamp the country's stock market.

They will initially invest Tk 10 billion in the proposed fund, the size of which will be enhanced gradually.

The announcements came after an emergency meeting of the Bangladesh Association of Banks (BAB), a platform of owners of PCBs, held at its city office on the day with its Chairman Nazrul Islam Mazumdar in the chair.

At the meeting, the BAB decided that each of its member-banks would contribute Tk 200 million to the proposed SMSF while an amount of Tk 100 million would come from non-banking financial institutions (NBFIs), insurance companies and interested publicly listed companies.

Sixteen out of 29 BAB members attended the meeting while Chairman of the Bangladesh Insurance Association Sheikh Kabir Hossain was also present as an invited guest.

"We've decided to establish the fund aiming to bring back stability in the country's stock market," the BAB chairman told reporters after the meeting, adding that the fund will go into

operation shortly after receiving its approval from the central bank and the capital market regulator.

"We think that the PCBs will not face any hurdle to invest Tk 200 million to the fund," Mr Mazumdar said while replying to a query.

Some banks have already started making fresh investment in the stock market, he said, adding that the banks may invest Tk 400 billion-Tk 450 billion in the market.

The BAB chairman also said the fund will be operated like a mutual fund and its size will cross Tk 50 billion.

"An asset management company (AMC) will operate the fund in line with the existing rules and regulations," President of the Bangladesh Association of Publicly Listed Companies (BAPLC) Salman F Rahman said, while replying to a question.

The BAB has asked its member-banks to confirm their firm commitment to making their investment in the proposed fund by October 31 this year.

Another meeting of the BAB will be held after receiving such commitments from its member-banks, a private banker close to the BAB told the FE.

The meeting discussed in details the possibilities for participation of other financial institutions, insurance companies and publicly listed companies as sponsors of SMSF, in addition to that of banks. This was indicated in a working paper on the fund that dealt with issues on which decisions were required.

After discussions, the decision was taken in favour of such participation by financial institutions other than banks.

Three-page working paper, which was placed before the BAB's meeting on Sunday, also indicated the SMSF would be managed by a new AMC whose paid up capital would be Tk 100 million to be subscribed by the sponsors of the SMSF on a pro rata basis of 1.0 per cent of the contribution to the fund.

"This amount will be in addition to the sponsors' contribution to the fund," it said, adding that the board of directors of the AMC will comprise reputed and competent persons of the society, not in any way related to the sponsors of the SMSF.

The board of directors of the AMC will appoint a professional chief executive officer (CEO) who will be responsible for the day-to-day management of the AMC, according to the paper.

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Price control authority on the cards

The government has initiated a move to establish a price control authority in a bid to enforce the steps so far taken to rein in soaring commodity prices, officials said.

The Ministry of Commerce (MoC) has been tasked with the job so that the government can control commodity prices efficiently, they added.

"We are working on establishing a body that will enforce relevant acts and regulations relating to the control of commodity prices," a senior MoC official told the FE.

Commerce Minister Faruk Khan last week asked the MoC officials to start the work which is also one of the ruling Awami League's election pledges.

Recently the Prime Minister's Office (PMO) has asked the MoC to take steps to fulfil the present government's election pledges that are related to the ministry, sources said.

Keeping the commodity prices within the reach of common people was also another election pledge of the ruling party.

Sources said there was a similar type of body in Bangladesh in the past through which the government had been controlling the commodity prices. Importers had to inform the authority of the detailed information about the import status, stock, supply status and prices of commodities.

"The body had been abolished in the 90s weakening the government's control over the market. Now unscrupulous traders charge the consumers at their will," another official said, preferring anonymity.

The government is also working on the establishment of a market intelligence unit (MIU) to monitor unusual price hike of essential commodities by unscrupulous traders.

From the MIU plain-clothes intelligence people will be engaged in getting information about the ups and downs of the commodity prices, import and their supply chain status.

Talking to the FE Friday, Consumers Association of Bangladesh (CAB) President Quazi Faruque said enacting a law or establishing a body would not bring any benefit for people unless it is effectively enforced or it works.

"The government needs to enact necessary laws and ensure their enforcement to control the unscrupulous businessmen who have nowadays been disobeying government order."

He said: "Businessmen promise the government one thing in a formal meeting but practically do the other. They don't keep their commitment."

Source: thefinancialexpress-bd.com

Read More on Bangladeshi News

Offshore gas BAPEX gains expertise to explore: JS Panel

Staff correspondent

Parliamentary Standing Committee on energy, energy and mineral resources Ministry on Wednesday exploration of inland waterway transport stressed mineral resources of the State Bangladesh petroleum exploration and production company Ltd.

It approves the plan for a new round of bids for the operation of oil and gas exploration in land and shallow sea, it is strongly recommended that the international energy companies should explore mineral deposits in the sea and other places to keep sufficient skills and expertise to the BAPEX for the exercise of the functions.

"We proposed that the Ministry inland waterways carry out exploration of the BAPEX and highly recommended, so that international companies of energy to explore natural resources, the BAPEX expertise for the work of examination at sea and in the country, and the ability to reach", Subid Ali Bhuiyan Jatiyo Sangsad said after the meeting of the body.

29Th session of the range JS congratulated the BAPEX for the exploration of gas at Sundalpur also asked to continue these efforts.

The Committee calls for the Ministry of the establishment of a new Fund for the development of gas policy based on the guidelines, framed by the energy and mineral resources to speed up Division and the energy regulatory Commi P'ssion.

He also has the gas transmission company limited their ongoing projects to set up transmission lines, maintaining transparency and adherence to implement.

The meeting has the status of implementation of its recent decisions.

Secretary of State for energy, Mohammad Enamul Huq, members of the Committee Abdush Shahid, M Abdul Kader Khan and Abdullah al Islam Jacob took part in the meeting.

The makes Department Secretary and the Secretary of energy and mineral resources Division were also present.

More on Bangladeshi News
| Source: newagebd.com