US rejects request for RMG quota increase

March 31, 2000

The US government has rejected Bangladesh's request for a 30 percent increase in the quota for garments export to US market, source concerned said.

It is not possible because if export quota for Bangladesh is increased, the quota for other countries have to be adjusted, the source quoted the US side as saying.

The US position was confirmed  by Ambassador John C Holzman during a discussion with leaders of Bangladesh Garments Manufactures and Exporters Association (BGMEA).

When contacted, Minister for Commerce Abdul Jalil, however, denied rejection of Bangladesh's request. "The US side assured us that they would consider it with sympathy." he told this correspondent.

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Local sugar turns bitter

March 31, 2000

A large quantity of sugar will have to be imported this year as the country's sugar mills have failed to achieve the target of production due to short supply of sugarcane.

All 15 sugar mills have already stopped this year's production target in the current season (October 1999 - April 2000) for the state-owned sugar mills was fixed at 173,800 tones. But only 123,000 tones were produced.

The country's annual requirement of sugar is estimated at about 400,000 tones. The government has decided to import sugar to meet the deficit of 277,000 tones.

The Bangladesh Sugar and Food Industries Corporation (BSFIC), which runs the sugar mills, has been asked to import 75,000 tones of sugar while the Trading Corporation of Bangladesh (TCB) will import 100,000 tones.

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Bangladesh needs hard decision on software

March 31, 2000

Inordinate delay in the enactment of and intellectual property rights (IPR) law in the removal of the other infrastructure obstacles is hindering the export of computer software from Bangladesh, informed source say. 

The promising computer software and data processing industry might suffer a serious setback as result, and the nation might fall further behind others in the race to benefit from the sector that has great potentials, experts say.

India fetched five billion US dollars from the export  software in last one year ending in April. Bangladesh also has the potentials to hit the billion figure in the near future from software export if the industry is properly nursed, industry sources said. At present export earning from the sector n negligible.

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Export diversification efforts requite policy-supports, not mere directives

March 30, 2000  

The government is now showing showing concern about the country's failure to achieve faster export growth during the current fiscal and Prime Minister Sheikh Hasina has directed the concerned authorities to diversify the export basket.

During most part of 1990s, on an average Bangladesh enjoyed a double-digit export growth. The growth, however, was contributed by the country's burgeoning ready-made garment (RMG) industry that enjoyed special 'quota' facilities meant for the least developed countries (LDCs) in the developed world.

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Bangladesh Bank empowered to formulate policy independently

March 29, 2000

Bankers in general have welcome the government decision to amend the Banking Company Act, 1991, to streamline the country's ailing banking sector.

The cabinet in its regular meeting held Monday approved the amendment to the Banking Company Act aiming to ensure the independent supervising authority of Bangladesh Bank to run the country's banking sector.

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BAPEX under pressure

March 28, 2000

The Energy Ministry is pushing the Bangladesh oil and gas exploration company BAPEX to sign a production sharing contract (PSC) with a Canadian company that seeks unusually high profit and other options inconsistent with the Model PSC.

The Canadian company, Nico Resources, which was disqualified in the Second Round Block Bidding in 1997, has proposed to jointly develop and produce gas from three already discovered gas fields at Feni, Kamta and Chhatak, owned by BAPEX and Petrobangla. Niko is seeking 90 percent share. Niko is seeking 90 percent share, offering only 10 percent to BAPEX.

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Set up separate export fed, Sinha urges government

March 22, 2000

BGMEA President Anisur Rahman Sinha has demanded that the government set up a separate authority to face the post-MFA regime and form and apex body of the export organizations to look after the interest of the exports.

Sinha said maintaining competitive edge against neighboring courtiers would be very difficult once the quota facilities are withdrawn in 2005.

Due to some advantages like availability of raw materials, quick delivery of goods and cheaper prices, the buyers would be more interested in buying goods from those countries under a quota-free market. 

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Two agreements in telecom sector signed

March 21, 2000

Two agreements involving US$ 450 million were signed here yesterday in the telecommunication sector in presence of US Commerce Secretary William M Daley.

Under one agreement, Worldtel will implement a project to install 300,000 telephone lines on build operate and own (BOO) basis in the first phase at a cost of US$ 300 million.

Under the other agreement, Tyco Submarine Systems Ltd (TSSL) will install an undersea fiber optic cable system that will give Bangladesh worldwide connectivity at the cost of US$ 150 million.

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BTMA demands rationalization of duty on yarn, machinery

March 14, 2000  

The Bangladesh Textile Mills Association (BTMA) has proposed rationalization of the duty structures on capital machinery and yarn.

BTMA, the apex body of the country's private sector textile mills, made the suggestions in its budget proposal for FY2001, which it sent to the National Board of Revenue (NBR).

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Fuel, fertilizer prices may go up

March 14, 2000

Finance Minister Shah AMS Kibria has said the government is seriously thinking of increasing prices of oil and fertilizer in the greater interest of the economy.

The economy as a whole is recovering well from the recession caused by the devastating flood of 1998. Agriculture and industries sectors are performing satisfactorily with a positive impact on export, he said.

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Tk 10.36b remitted by NRBs thru’ Sonali Exchange

March 13, 2000  

Sonali Bank has decided to open another branch of Sonali Exchange Company (SEC), a subsidiary organization of the bank, in Atlanta after the successful operation of its braches in New York and Los Angeles.  

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Cabinet to approve 3 PSCs tomorrow

March 13, 2000  

The Cabinet at a meeting tomorrow will clear three Production Sharing Contracts (PSCs) for oil and gas exploration in the country under the Second Round Block Bidding, source said.  

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Avoid suppliers credit

March 12, 2000  

As foreign grants and donations have become dearer, different ministries of the government are looking for   suppliers credit for suppliers credit for implementing development projects, sources said.  

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Banks will have to bear responsibility for default loans, says Kibria
March 11, 2000

Finance minister SAMS Kibria Friday hinted that the managements of banks would come under strict discipline and has to bear a lion’s share of responsibilities in case of default loans.

“About 40 percent of bad loans are related to commercial lending and many of these happened in connivance with bank officials,” said the finance minister while speaking at a roundtable conference Friday on Discipline in Banking Sector.  

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US FDI in Bangladesh may hit $ 2.3b in 2-3 yrs
March 11, 2000

Foreign Direct Investment (FDI) from the United States to Bangladesh rose to 700 million US dollars in three years from a paltry sum of $25 million following opening up of gas and oil sectors to the foreign companies for exploration and production, reports BBS.

The US Embassy in Dhaka estimates that American investment I Bangladesh would go up to 2.3 billion US dollars within two to four years if the projects in the pipeline and those under proposal were completed.

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Tax on listed cos too high, says DSE

March 7, 2000

Terming the present tax rate ‘too high’ for the listed companies, the Dhaka Stock Exchange (DSE) has suggested that it be reduced to 30 percent from the existing 35 per cent in the upcoming 2000-2001 budgets.

Currently the listed companies pay 35 per cent tax to the government while the non-listed companies are subjected and non-listed companies.  

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Deposit of Southeast Bank stands at Tk 6.65b in ‘99  

March 6, 2000.

Southeast Bank Limited (SBL) posted a satisfactory deposit growth in the year 1999 which stood at Tk 6.6 billion.

This was disclosed at the fourth branch managers’ conference of SBL held Friday at a city hotel. All the executives at head office and branch managers were present at the conference, according to a press release issued by the bank Sunday.  

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ReadyCash Card utility service launched
March 3, 2000.

ln an attempt to eliminate the hassles of paying utility bills In the bank Read Cash Card one stop utility service has started functioning in the city, says a press release.

As the inauguration of the process, a ReadyCash Card holder paid his gas bill through ReadyCash Card at a shop in the city. 

Initially, the residents of Dhanmondi, Banani, Gulshan and Baridhara will be able to pay their gas bills through ReadyCash Card.

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Opening of Midas Financing Ltd tomorrow
March 3, 2000.

A non-bank financial institution named ‘Midas Financing Limited’ will be inaugurated at Midas premised at House-5. Road 16 (old 27), Dhanmondi, in the city on Saturday.

S A M S Kibria, Finance Minister will be the chief guest where Professor Abu Sayeed, State Minister for Information will be the special guest on the occasion, says a press release.

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