Daily News Flash 27th August 2017

1

DSEX 2954 Gold (Ounce) $129650 Dollar 8070 (Buy) 8070 (Sell) CSCX 5077 Oil (Barrel) $4786 Euro 9527(Buy) 9531(Sell)

CATTLE INSURANCE ESSENTIAL ANALYSTS 1

FOREIGN FUNDS TREBLE IN STOCKS 4

PRANS EXPORT RECEIPTS HIT $231M 5

WB GIVES $59M HARD CREDIT FOR POWER SECTOR 5

TIGER IT DIGITISING NUMBER PLATES IN NEPAL 6

BTRC MAY ALLOW MOBILE VIRTUAL NETWORK OPERATOR 7

LOCAL CARD TRANSACTIONS MUST GO THRU NATIONAL PAYMENT SWITCH BB 8

FOREIGN FUNDS TREBLE IN STOCKS 9

20 DEFAULTERS ACCOUNT FOR STATE BANKS ONE-THIRD BAD LOANS 9

ELIAS BROTHERS SEEKS GOVTS HELP TO RESUME BUSINESS 11

RAWHIDES MAY ROT FOR RUNDOWN ROADS TANNERS 12

SAME FIVE ENTITIES APPLY FOR LICENCE 12

DEFAULTED LOANS IN 9 NEW BANKS RISE BY 161PC IN JAN-JUN 13

PIN MUST FOR ALL CARD-BASED TRANSACTIONS FROM DEC 14

BSEC REJECTS SOUTHEAST BANKrsquoS RIGHTS OFFER 15

EXPORT BANGLADESH YET TO FULLY TAP ASIAN MARKETS 15

17

18

১৩৯৮ ৮ ১ 18

19

৮৬ 20

21

21

22

22

24

২০০০ 25

26

26

৮ 27

Daily News Flash 27th August 2017

2

১০ 28

29

30

১১ 30

32

- 32

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34

২৫ 34

৪৭২ 35

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36

CATTLE INSURANCE ESSENTIAL ANALYSTS

Farmers particularly cattle rearers suffer from losses for death of animals from natural calamities like flood and cyclone in the absence of insurance coverage analysts said yesterday ldquoThe prices of animals have increased significantly Under the circumstances the death of a cow causes huge losses to farmersrdquo said Md Ainul Haque director general of the Department of Livestock Services (DLS) Haques comments came at a seminar styled cattle economy problem and prospects organised by the Bangladesh Agricultural Journalists and Activists Federation at the Press Institute of Bangladesh The comment has become all the pertinent as the ongoing flood has wiped off livestock and damaged crops The DLS estimated that flood affected 1234 farms and caused deaths of nearly 50000 livestock including poultry and cattle in 113 upazilas particularly up north Haque said the government has decided in principle to introduce an insurance scheme for livestock under a World Bank-financed project

Daily News Flash 27th August 2017

3

ldquoWe are yet to fix the modalities but we want to introduce insurance benefits from July next yearrdquo he said At the seminar analysts said the potential for dairy development remains untapped in the absence of proper policy support and a lack of initiative from the policymakers They suggested expediting the formation of a dairy development board coming up with marketing facilities for milk ensuring fair prices and extending credit and support ldquoOne of the major constraints is marketingrdquo Haque said In the absence of adequate marketing facilities farmers in rural areas do not get fair prices for the milk ldquoOut of frustration about the low prices farmers throw away milk on the streetrdquo Producers have to sell a litre of fresh milk at Tk 30 whereas the same is sold at Tk 80 in Dhaka according to Haque Discussants said dairy farming has increased in recent years leading to a spike in the production of milk and meat Yet the country has to import milk and depend on smuggled cattle to meet a part of the demand for beef Farmers representatives at the event urged the government to discourage the entry of cattle from India and the import of powdered milk with a view to promoting domestic farming ldquoThe demand for milk and meat is rising because of an increase in income and populationrdquo said Jahangir Alam an agricultural economist Subsequently he suggested low-cost credit schemes to promote cattle farming expansion of artificial insemination and higher public and private investment in the livestock sector The government should also provide reinsurance coverage to facilitate insurance in the sector said Alam also a former director general of the Bangladesh Livestock Research Institute FH Ansarey managing director and chief executive of ACI Agribusiness said the government should frame clear and consistent policies to encourage private sector investment in dairy and beef production The annual market size for beef is about Tk 15000 crore and the sector needs Tk 10000-12000 crore of investment he said Md Anwarul Haque Beg treasurer of Sher-e-Bangla Agricultural University said he heard about the formation of the dairy development board in the 1980s ldquoBut it is yet to be establishedrdquo he said adding that neighbouring India has formed such a board 40 years ago Beg also recommended bringing the 50 lakh small farmers under registration for providing extension and other support such as credit Big investors will come forward if the influx of cattle from India is stopped said Mohammad Imran Hossain president of the Bangladesh Dairy Farmers Association ldquoBeef will be produced on an industrial scale and the prices will come downrdquo He also demanded the government charge the dairy farmers the same rates as the agriculture sector for electricity At present dairy farmers have to pay commercial rate on their electricity usage although dairy and livestock farming falls under agriculture As a result the cost of production goes up

Daily News Flash 27th August 2017

4

Source httpwwwthedailystarnetbusinesscattle-insurance-essential-analysts-1454659

FOREIGN FUNDS TREBLE IN STOCKS

Net foreign investment in the capital market more than tripled to Tk 1569 crore in the first seven months of 2017 compared to the same period last year riding on the positive movement of price indices The net position of foreign portfolio stood at Tk 449 crore in the January to July period of 2016 according to Dhaka Stock Exchange (DSE) data In July this year foreign investors bought shares worth Tk 625 crore and sold shares worth Tk 424 crore It means the net investment position stood at Tk 200 crore in July up by 25 times from Tk 83 crore in July last year Foreign investors are mainly interested in buying bank shares a senior executive of a merchant bank said He said lack of investment opportunities in the global market amid economic recession prompted the foreign investors to widen their portfolio in Bangladesh The International Finance Corporation has recently invested over Tk 131 crore to buy 5 percent share of City Bank The private sector lending arm of the World Bank Group will put its director to the board of the local private bank The foreign holdings of City Bank increased to 1055 percent in July up from 610 percent in December last year The share holdings of foreign investors in other private banks are also increasing giving a boost to the prices of bank stocks The market capital of banks shares rose by 15 percent to Tk 56000 crore in June this year from Tk 48400 crore in December last year according to DSE data Foreign investors like Islami banks the most thanks to the fast-growing Islamic banking in Bangladesh said a banker The foreign holding of Islami Bank Bangladesh the largest private commercial bank in the country increased 3218 percent in July from 638 percent in December last year Among other listed Islami banks Al-Arafah Islami Bank saw a rise in foreign holding from zero in December to 296 percent in July this year The foreign holding of First Security Islami Bank rose to 495 percent in July from 277 percent last December while it rose to 143 percent from 048 percent for Social Islami Bank during the period DSE data show Among other private commercial banks Exim IFIC Mercantile One Trust Prime Southeast and Uttara also experienced a rise in foreign holdings Source httpwwwthedailystarnetbusinessforeign-funds-treble-stocks-1453678

Daily News Flash 27th August 2017

2

১০ 28

29

30

১১ 30

32

- 32

33

34

২৫ 34

৪৭২ 35

১৬১ 36

36

CATTLE INSURANCE ESSENTIAL ANALYSTS

Farmers particularly cattle rearers suffer from losses for death of animals from natural calamities like flood and cyclone in the absence of insurance coverage analysts said yesterday ldquoThe prices of animals have increased significantly Under the circumstances the death of a cow causes huge losses to farmersrdquo said Md Ainul Haque director general of the Department of Livestock Services (DLS) Haques comments came at a seminar styled cattle economy problem and prospects organised by the Bangladesh Agricultural Journalists and Activists Federation at the Press Institute of Bangladesh The comment has become all the pertinent as the ongoing flood has wiped off livestock and damaged crops The DLS estimated that flood affected 1234 farms and caused deaths of nearly 50000 livestock including poultry and cattle in 113 upazilas particularly up north Haque said the government has decided in principle to introduce an insurance scheme for livestock under a World Bank-financed project

Daily News Flash 27th August 2017

3

ldquoWe are yet to fix the modalities but we want to introduce insurance benefits from July next yearrdquo he said At the seminar analysts said the potential for dairy development remains untapped in the absence of proper policy support and a lack of initiative from the policymakers They suggested expediting the formation of a dairy development board coming up with marketing facilities for milk ensuring fair prices and extending credit and support ldquoOne of the major constraints is marketingrdquo Haque said In the absence of adequate marketing facilities farmers in rural areas do not get fair prices for the milk ldquoOut of frustration about the low prices farmers throw away milk on the streetrdquo Producers have to sell a litre of fresh milk at Tk 30 whereas the same is sold at Tk 80 in Dhaka according to Haque Discussants said dairy farming has increased in recent years leading to a spike in the production of milk and meat Yet the country has to import milk and depend on smuggled cattle to meet a part of the demand for beef Farmers representatives at the event urged the government to discourage the entry of cattle from India and the import of powdered milk with a view to promoting domestic farming ldquoThe demand for milk and meat is rising because of an increase in income and populationrdquo said Jahangir Alam an agricultural economist Subsequently he suggested low-cost credit schemes to promote cattle farming expansion of artificial insemination and higher public and private investment in the livestock sector The government should also provide reinsurance coverage to facilitate insurance in the sector said Alam also a former director general of the Bangladesh Livestock Research Institute FH Ansarey managing director and chief executive of ACI Agribusiness said the government should frame clear and consistent policies to encourage private sector investment in dairy and beef production The annual market size for beef is about Tk 15000 crore and the sector needs Tk 10000-12000 crore of investment he said Md Anwarul Haque Beg treasurer of Sher-e-Bangla Agricultural University said he heard about the formation of the dairy development board in the 1980s ldquoBut it is yet to be establishedrdquo he said adding that neighbouring India has formed such a board 40 years ago Beg also recommended bringing the 50 lakh small farmers under registration for providing extension and other support such as credit Big investors will come forward if the influx of cattle from India is stopped said Mohammad Imran Hossain president of the Bangladesh Dairy Farmers Association ldquoBeef will be produced on an industrial scale and the prices will come downrdquo He also demanded the government charge the dairy farmers the same rates as the agriculture sector for electricity At present dairy farmers have to pay commercial rate on their electricity usage although dairy and livestock farming falls under agriculture As a result the cost of production goes up

Daily News Flash 27th August 2017

4

Source httpwwwthedailystarnetbusinesscattle-insurance-essential-analysts-1454659

FOREIGN FUNDS TREBLE IN STOCKS

Net foreign investment in the capital market more than tripled to Tk 1569 crore in the first seven months of 2017 compared to the same period last year riding on the positive movement of price indices The net position of foreign portfolio stood at Tk 449 crore in the January to July period of 2016 according to Dhaka Stock Exchange (DSE) data In July this year foreign investors bought shares worth Tk 625 crore and sold shares worth Tk 424 crore It means the net investment position stood at Tk 200 crore in July up by 25 times from Tk 83 crore in July last year Foreign investors are mainly interested in buying bank shares a senior executive of a merchant bank said He said lack of investment opportunities in the global market amid economic recession prompted the foreign investors to widen their portfolio in Bangladesh The International Finance Corporation has recently invested over Tk 131 crore to buy 5 percent share of City Bank The private sector lending arm of the World Bank Group will put its director to the board of the local private bank The foreign holdings of City Bank increased to 1055 percent in July up from 610 percent in December last year The share holdings of foreign investors in other private banks are also increasing giving a boost to the prices of bank stocks The market capital of banks shares rose by 15 percent to Tk 56000 crore in June this year from Tk 48400 crore in December last year according to DSE data Foreign investors like Islami banks the most thanks to the fast-growing Islamic banking in Bangladesh said a banker The foreign holding of Islami Bank Bangladesh the largest private commercial bank in the country increased 3218 percent in July from 638 percent in December last year Among other listed Islami banks Al-Arafah Islami Bank saw a rise in foreign holding from zero in December to 296 percent in July this year The foreign holding of First Security Islami Bank rose to 495 percent in July from 277 percent last December while it rose to 143 percent from 048 percent for Social Islami Bank during the period DSE data show Among other private commercial banks Exim IFIC Mercantile One Trust Prime Southeast and Uttara also experienced a rise in foreign holdings Source httpwwwthedailystarnetbusinessforeign-funds-treble-stocks-1453678

Daily News Flash 27th August 2017

3

ldquoWe are yet to fix the modalities but we want to introduce insurance benefits from July next yearrdquo he said At the seminar analysts said the potential for dairy development remains untapped in the absence of proper policy support and a lack of initiative from the policymakers They suggested expediting the formation of a dairy development board coming up with marketing facilities for milk ensuring fair prices and extending credit and support ldquoOne of the major constraints is marketingrdquo Haque said In the absence of adequate marketing facilities farmers in rural areas do not get fair prices for the milk ldquoOut of frustration about the low prices farmers throw away milk on the streetrdquo Producers have to sell a litre of fresh milk at Tk 30 whereas the same is sold at Tk 80 in Dhaka according to Haque Discussants said dairy farming has increased in recent years leading to a spike in the production of milk and meat Yet the country has to import milk and depend on smuggled cattle to meet a part of the demand for beef Farmers representatives at the event urged the government to discourage the entry of cattle from India and the import of powdered milk with a view to promoting domestic farming ldquoThe demand for milk and meat is rising because of an increase in income and populationrdquo said Jahangir Alam an agricultural economist Subsequently he suggested low-cost credit schemes to promote cattle farming expansion of artificial insemination and higher public and private investment in the livestock sector The government should also provide reinsurance coverage to facilitate insurance in the sector said Alam also a former director general of the Bangladesh Livestock Research Institute FH Ansarey managing director and chief executive of ACI Agribusiness said the government should frame clear and consistent policies to encourage private sector investment in dairy and beef production The annual market size for beef is about Tk 15000 crore and the sector needs Tk 10000-12000 crore of investment he said Md Anwarul Haque Beg treasurer of Sher-e-Bangla Agricultural University said he heard about the formation of the dairy development board in the 1980s ldquoBut it is yet to be establishedrdquo he said adding that neighbouring India has formed such a board 40 years ago Beg also recommended bringing the 50 lakh small farmers under registration for providing extension and other support such as credit Big investors will come forward if the influx of cattle from India is stopped said Mohammad Imran Hossain president of the Bangladesh Dairy Farmers Association ldquoBeef will be produced on an industrial scale and the prices will come downrdquo He also demanded the government charge the dairy farmers the same rates as the agriculture sector for electricity At present dairy farmers have to pay commercial rate on their electricity usage although dairy and livestock farming falls under agriculture As a result the cost of production goes up

Daily News Flash 27th August 2017

4

Source httpwwwthedailystarnetbusinesscattle-insurance-essential-analysts-1454659

FOREIGN FUNDS TREBLE IN STOCKS

Net foreign investment in the capital market more than tripled to Tk 1569 crore in the first seven months of 2017 compared to the same period last year riding on the positive movement of price indices The net position of foreign portfolio stood at Tk 449 crore in the January to July period of 2016 according to Dhaka Stock Exchange (DSE) data In July this year foreign investors bought shares worth Tk 625 crore and sold shares worth Tk 424 crore It means the net investment position stood at Tk 200 crore in July up by 25 times from Tk 83 crore in July last year Foreign investors are mainly interested in buying bank shares a senior executive of a merchant bank said He said lack of investment opportunities in the global market amid economic recession prompted the foreign investors to widen their portfolio in Bangladesh The International Finance Corporation has recently invested over Tk 131 crore to buy 5 percent share of City Bank The private sector lending arm of the World Bank Group will put its director to the board of the local private bank The foreign holdings of City Bank increased to 1055 percent in July up from 610 percent in December last year The share holdings of foreign investors in other private banks are also increasing giving a boost to the prices of bank stocks The market capital of banks shares rose by 15 percent to Tk 56000 crore in June this year from Tk 48400 crore in December last year according to DSE data Foreign investors like Islami banks the most thanks to the fast-growing Islamic banking in Bangladesh said a banker The foreign holding of Islami Bank Bangladesh the largest private commercial bank in the country increased 3218 percent in July from 638 percent in December last year Among other listed Islami banks Al-Arafah Islami Bank saw a rise in foreign holding from zero in December to 296 percent in July this year The foreign holding of First Security Islami Bank rose to 495 percent in July from 277 percent last December while it rose to 143 percent from 048 percent for Social Islami Bank during the period DSE data show Among other private commercial banks Exim IFIC Mercantile One Trust Prime Southeast and Uttara also experienced a rise in foreign holdings Source httpwwwthedailystarnetbusinessforeign-funds-treble-stocks-1453678

Daily News Flash 27th August 2017

4

Source httpwwwthedailystarnetbusinesscattle-insurance-essential-analysts-1454659

FOREIGN FUNDS TREBLE IN STOCKS

Net foreign investment in the capital market more than tripled to Tk 1569 crore in the first seven months of 2017 compared to the same period last year riding on the positive movement of price indices The net position of foreign portfolio stood at Tk 449 crore in the January to July period of 2016 according to Dhaka Stock Exchange (DSE) data In July this year foreign investors bought shares worth Tk 625 crore and sold shares worth Tk 424 crore It means the net investment position stood at Tk 200 crore in July up by 25 times from Tk 83 crore in July last year Foreign investors are mainly interested in buying bank shares a senior executive of a merchant bank said He said lack of investment opportunities in the global market amid economic recession prompted the foreign investors to widen their portfolio in Bangladesh The International Finance Corporation has recently invested over Tk 131 crore to buy 5 percent share of City Bank The private sector lending arm of the World Bank Group will put its director to the board of the local private bank The foreign holdings of City Bank increased to 1055 percent in July up from 610 percent in December last year The share holdings of foreign investors in other private banks are also increasing giving a boost to the prices of bank stocks The market capital of banks shares rose by 15 percent to Tk 56000 crore in June this year from Tk 48400 crore in December last year according to DSE data Foreign investors like Islami banks the most thanks to the fast-growing Islamic banking in Bangladesh said a banker The foreign holding of Islami Bank Bangladesh the largest private commercial bank in the country increased 3218 percent in July from 638 percent in December last year Among other listed Islami banks Al-Arafah Islami Bank saw a rise in foreign holding from zero in December to 296 percent in July this year The foreign holding of First Security Islami Bank rose to 495 percent in July from 277 percent last December while it rose to 143 percent from 048 percent for Social Islami Bank during the period DSE data show Among other private commercial banks Exim IFIC Mercantile One Trust Prime Southeast and Uttara also experienced a rise in foreign holdings Source httpwwwthedailystarnetbusinessforeign-funds-treble-stocks-1453678

Daily News Flash 27th August 2017

5

PRANS EXPORT RECEIPTS HIT $231M

Pran Bangladeshs leading processed food exporter saw its export earnings soar 2554 percent to $231 million last fiscal year on the back of a rising demand for its products in the 134 countries that it ships to Buoyed by the higher receipts the company recently launched some new products like cup noodles sweets cakes frozen mini snacks and yoghurts according to Kamruzzaman Kamal director of marketing at Pran-RFL Group At present Pran has a good market share in countries like India Nepal the United Arab Emirates Saudi Arabia Qatar Kuwait Oman and Malaysia ldquoThis is a matter of pride that Pran products have taken their place in global chain shops by competing with renowned international brandsrdquo Kamal said Pran products are available in the supermarket giants like Walmart Carrefour Poundland Mustafa Mart Reliance Fresh and so on ldquoGoing forward we are putting special emphasis on the African Gulf and Oceania countries as the potential of these vast regions is yet to be exploited fullyrdquo Until now Pran has given special priority to the northeastern states of India because of the geographical proximity and cultural similarities Some of Prans popular products in the Indian northeastern markets are fruit drinks beverages snacks biscuits ketchup noodles jelly chanachur jhal muri and candy Established in 1996 Pran-RFL currently employs 94000 people in its 51 companies ldquoWe have a plan to open more factories and bring more products in the markets in the near futurerdquo Kamal added Source httpwwwthedailystarnetbusinessprans-export-receipts-hit-231m-1453669

WB GIVES $59M HARD CREDIT FOR POWER SECTOR Bangladesh is set to take a $59 million loan for the power sector from the World Bank at non-concessional terms for the first time The rate of interest on the loan would be about 285 percent with the repayment period being 30 years including a nine-year grace period ldquoEven though it is a semi-commercial loan it is more tolerable than the international market raterdquo said a finance ministry official The decision to take the non-concessional debt from the World Bank comes as Bangladesh has a deficiency of resources in comparison to the investment need in the public and private sectors he added

Daily News Flash 27th August 2017

6

The loan will come from the Scale-up Facility (SUF) fund a scheme formed in March last year to provide additional support to the clients of the International Development Association the WB Group arm that hands out loans and grants to the worlds poorest nations until June 30 Only IDA client countries that are at low- or medium-risk of debt distress are eligible to access the SUF the credit from which is expected to finance projects with strong development impact Before this Bangladesh only got loans from the IDA which carried a 075 percent interest rate and came with a repayment period of 38 years including a six-year grace period Bangladesh borrows the second highest amount from the Asian Development Bank after the WB The ADB provides two types of loans to Bangladesh one from the Asian Development Fund that carries a 2 percent interest rate and another from the Ordinary Capital Resource whose interest rate is LIBOR-based The rate of interest on OCR loans is up to 3 percent and the highest average repayment period is 20 years Among the bilateral donors Bangladesh is set to take a big amount of loan from China in the near future The interest rate on the Chinese loan is 2 percent In addition 04 percent other charges are applicable and the repayment period is 20 years including five years grace period Taking the SUF credit would be a sound move on the part of the government considering the interest rate and the terms and condition Sadiq Ahmed vice-chairman of the Policy Research Institute earlier told The Daily Star ldquoIt would be a good opportunity for Bangladeshrdquo he added The agreement to take SUF credit was signed yesterday by Kazi Shofiqul Azam secretary of the Economic Relations Division and Qimiao Fan country director of the WB In the last five years Bangladesh has doubled its electricity generation capacity to meet the growing demand Today about 78 percent of the population have access to electricity With rapid increase in the size of the power system Bangladesh now faces challenges of ensuring quality and reliability of the electricity supply Fan said Subsequently the SUF credit will go towards improving the reliability and efficiency of the countrys power system such that low-cost power can be provided ldquoReliable and low-cost power supply will make doing business easier and benefit householdsrdquo Fan said Besides the project will benefit the government with fiscal savings as a modern power generation system will cut down fuel use It will also lower greenhouse gas emissions by reducing the use of carbon-intense fuel in electricity generation Furthermore the project will construct and rehabilitate a 40-km transmission line ldquoThe government is committed to provide electricity to allrdquo Azam said The financing will help remove bottlenecks and optimise the national power system to ensure affordable and round-the-clock electricity he added Source httpwwwthedailystarnetbusinessbankingwb-gives-59m-hard-credit-power-sector-1453666

TIGER IT DIGITISING NUMBER PLATES IN NEPAL Bangladesh-based firm Tiger IT has recently opened a factory in Kathmandu as part of a $437 million project the biggest IT related one in Nepal to provide digital registration plates which would ensure security in vehicle management In the next five years 25 lakh registration plates will be produced under the project of the countrys Department of Transport Management said Tiger IT Assistant General Manager Rajib Choudhury

Daily News Flash 27th August 2017

7

ldquoThis is a milestone project for us which will help us move forward at a faster pacerdquo he said on returning to Dhaka yesterday It will increase security in Nepals transport system he added Physical Infrastructure and Transport Minister Bir Bahadur Balayar inaugurated the factory on Monday producing a plate himself Senior government officials and Tiger IT Chief Operating Officer Gautam Bhattacharya were present at the ceremony Tiger IT got the same project in Bangladesh under a joint venture with Bangladesh Machine Tools Factory They started operations in 2012 with a target of manufacturing 31 lakh registration plates In Nepal they joined US-based Decatur Consortium to win the contract beating some joint ventures from developed countries through a competitive and open international bidding The consortium signed a contract with the ministry on May 30 2016 to provide materials hardware software and relevant services for owner enrolment and production of high security embossed vehicle registration plates Established in 2000 Tiger IT is leading the way in Southeast Asia in identification related software and undertaking national identification and immigration related projects They earlier provided machine readable passports in Nepal and national identity cards and biometric ID services for immigration and border control of Bhutan In 2008 they developed software solutions for national identity cards and voter registration in Bangladesh a project that involved around 10 crore people It earlier ran international projects in the USA Canada UK Moldova Tajikistan Kenya India Nepal Bhutan and Cambodia among others It has offices in the USA UK and Poland apart from Dhaka Under the Nepal project each vehicle owners will get two embossed aluminum plates containing an RFID sticker said Choudhury This plate will limit crimes making use of vehicles by preventing counterfeiting and manual replacement of number plates Biometric enrolment will prevent impostors from registering vehicles in their name whilst the ability to quickly check the vehicle data against the RFID stickers will allow law enforcement to track down stolen vehicles more effectively The RFID stickers will also help the government expand tax and toll collections as they facilitate automated monitoring of vehicles on the road Incorporation of the vehicle owners data with that of the registration plates will take place in a high security facility New enrolment stations will be installed in transport management offices throughout the country which will communicate online with the centralised Kathmandu-based central system At the core of the system is a central database of vehicles and their owners This database may also be made available to law enforcement agencies if required Overall this system will boosts transparency and accountability of the transport management department Citizens will have easier access to related services and the government will benefit with increased revenue in taxes and tolls Source httpwwwthedailystarnetbusinesstiger-it-digitising-number-plates-nepal-1453660

BTRC MAY ALLOW MOBILE VIRTUAL NETWORK OPERATOR The telecom regulator considers allowing mobile virtual network operators (MVNO) with a view to injecting more competition into the cellular communication market An MVNO is a wireless communications services provider that does not own the wireless network infrastructure over which it provides services to its customers It enters into a business agreement with a mobile operator to obtain bulk access to network services at wholesale rates and then sets its own retail prices independently

Daily News Flash 27th August 2017

8

The MVNO may use its own customer service billing support systems marketing and sales personnel The Bangladesh Telecommunication Regulatory Commission is now conducting a feasibility study on MNVOs in the country said its Chairman Shahjahan Mahmood The move comes after the Prime Ministers ICT Affairs Adviser Sajeeb Wazed Joy directed the telecom regulator to take preparations for the introduction of MVNOs in Bangladesh Subsequently the telecom regulator formed a committee to draft a guideline on it said a senior BTRC official ldquoAfter the study if we find that the MVNO would bring benefits to people we must go for itrdquo Mahmood said adding that such players are in operation across the globe MVNO agreements with network operators date back to the 1990s when the European telecom market saw market liberalisation new regulatory frameworks better 2G network technology and a subsequent jump in wireless subscriber numbers The global MVNO market is expected to reach a valuation of $752 billion by 2023 according to a market study Source httpwwwthedailystarnetbusinesstelecombtrc-may-allow-mobile-virtual-network-operator-1453651

LOCAL CARD TRANSACTIONS MUST GO THRU NATIONAL PAYMENT SWITCH BB The central bank yesterday issued a notice that mandated domestic card transactions with its national payment switch which is yet to be EMV-compliant and remains vulnerable to fraud EMV which stands for Europay MasterCard and Visa is a global standard for cards that uses computer chips to authenticate and secure chip-card transactions The notice said all point-of-sales (POS) terminals have to be connected with the NPS and transactions must go through it The Bangladesh Bank has also issued a number of regulations including making all card-based transactions PIN-based by this year All banks have to be certified by the Payment Card Industry-Data Security Standard (PCI-DSS) a global standard by next year and all cards have to be chip and PIN-based by June next year according to the notice The move aims to crack down on rising card fraud and discourage cash transactions in the country Bankers welcomed the decision but they said making the NPS EMV-compliant is very urgent to avoid fraud ldquoThere will be risks unless the NPS becomes EMV-compliantrdquo said Abul Kashem Md Shirin managing director of Dutch-Bangla Bank which runs around 3000 automated teller machines and over 8000 POS terminals across the country Shirin also said there should be a contingency plan so that if anything serious happens with the NPS card transactions remain active Some other bankers said security continues to be an issue as the NPS can only process data from the magnetic stripe and not from secure chips As a result the acquirer bank is always exposed to loss and fraud and if there are frauds they are not going to be compensated In February last year when fraudulent cash transactions were detected at several ATM booths some banks switched off the NPS line as they thought the fraudsters exploited the weakness of the NPS Another group of bankers however said there is nothing wrong with the central banks NPS platform rather the banks should take measures to protect their customers PINs Of the 57 banks operating in the country 52 are connected with the NPS according to the BB Only a few banks have made their cards chip-based with the majority still running with magnetic stripped-cards which are highly vulnerable to fraud

Daily News Flash 27th August 2017

9

Of all the banks only two are PCI-DSS certified and four are awaiting the certification which is a proprietary information security standard for organisations that handle branded cards from major card schemes like Visa MasterCard American Express Discover and JCB The BB has also asked all banks to make their ATMs EMV-equipped and install anti-skimming devices by the end of the year Source httpwwwthedailystarnetbusinessbankinglocal-card-transactions-must-go-thru-national-payment-switch-bb-1453681

FOREIGN FUNDS TREBLE IN STOCKS Net foreign investment in the capital market more than tripled to Tk 1569 crore in the first seven months of 2017 compared to the same period last year riding on the positive movement of price indices The net position of foreign portfolio stood at Tk 449 crore in the January to July period of 2016 according to Dhaka Stock Exchange (DSE) data In July this year foreign investors bought shares worth Tk 625 crore and sold shares worth Tk 424 crore It means the net investment position stood at Tk 200 crore in July up by 25 times from Tk 83 crore in July last year Foreign investors are mainly interested in buying bank shares a senior executive of a merchant bank said He said lack of investment opportunities in the global market amid economic recession prompted the foreign investors to widen their portfolio in Bangladesh The International Finance Corporation has recently invested over Tk 131 crore to buy 5 percent share of City Bank The private sector lending arm of the World Bank Group will put its director to the board of the local private bank The foreign holdings of City Bank increased to 1055 percent in July up from 610 percent in December last year The share holdings of foreign investors in other private banks are also increasing giving a boost to the prices of bank stocks The market capital of banks shares rose by 15 percent to Tk 56000 crore in June this year from Tk 48400 crore in December last year according to DSE data Foreign investors like Islami banks the most thanks to the fast-growing Islamic banking in Bangladesh said a banker The foreign holding of Islami Bank Bangladesh the largest private commercial bank in the country increased 3218 percent in July from 638 percent in December last year Among other listed Islami banks Al-Arafah Islami Bank saw a rise in foreign holding from zero in December to 296 percent in July this year The foreign holding of First Security Islami Bank rose to 495 percent in July from 277 percent last December while it rose to 143 percent from 048 percent for Social Islami Bank during the period DSE data show Among other private commercial banks Exim IFIC Mercantile One Trust Prime Southeast and Uttara also experienced a rise in foreign holdings Source httpwwwthedailystarnetbusinessforeign-funds-treble-stocks-1453678

20 DEFAULTERS ACCOUNT FOR STATE BANKS ONE-THIRD BAD LOANS The top 20 defaulters accounted for one-third of the state banks total default loans in the first half of 2017 according to the finance ministry

Daily News Flash 27th August 2017

10

As of June the defaulters owed Tk 11579 crore to Sonali Janata Agrani Rupali BASIC and Bangladesh Development Bank (BDBL) with the amount being 3348 percent of the lenders total default loans according to a paper prepared by the finance ministry The paper was presented at a workshop styled ldquoReview of the Health of State Banks Way Forward to Face Challengesrdquo organised yesterday by the finance division at the Cirdap auditorium in Dhaka BDBLs 525 percent default loans were held by the top 20 defaulters followed by 513 percent for Rupali and 49 percent for Janata the paper shows The rising default loans put pressure on the state banks capital compelling the government to inject funds into them for their survival said Md Eunusur Rahman senior secretary of the bank and financial institution division who presented the paper Over the last four years the government injected Tk 9639 crore into the state banks This fiscal year Tk 2000 crore has been set aside for the purpose The capital adequacy ratio of the state-run commercial banks was 699 percent which is far below the regulatory requirement of 10 percent Finance Minister AMA Muhith blamed the bankers for the increasing default loans they do not release funds to clients as per schedule which in turn leads to the projects failure ldquoBankers do it consciously so that clients default on their loans and come under their controlrdquo the minister added SK Sur Chowdhury a deputy governor of the Bangladesh Bank acknowledged that there is a problem in loan disbursement which is why new loans are defaulting ldquoBut the performance of the state banks is not as bad as commonly perceived The banks are making profit but the higher provisioning requirement against their bad loans sets them backrdquo Chowdhury said banks should follow the report from the BBs Credit Information Bureau before lending to clients to prevent a loan from defaulting The default loans of the six state banks stood at Tk 34581 crore which was 27 percent of their loans In June the average default rate in the banking sector was 1013 percent Banks should follow ethical lending practice to bring down the default loan ratio said Fazle Kabir governor of the BB He also called upon the banks to put in more effort to recover write-off loans The requirement for collateral is a major constraint for the success of a business project said Md Ataur Rahman Prodhan managing director of Rupali Bank He said if clients want to borrow Tk 100 crore for a project they need to provide security worth Tk 150 crore ldquoThe project starts to fail from this pointrdquo he added Zaid Bakht chairman of Agrani Bank said the financial performance of state banks becomes poorer as they participate in the development activities of the government Under the social safety net programme of the government the banks channel money across the country without any service charge which costs them Tk 100 crore he said The board members of state banks do not have shares in the lenders so they do not feel any ownership said Hedayetullah Al Mamoon senior secretary of the finance division Subsequently banks should float shares in the stockmarket to bring shareholders to the board he added MA Mannan state minister for finance asked banks to cut costs to make profit ldquoBanks should be allowed to make the call on whether they will open or close a branchrdquo Commercial banks both private and public have 9720 branches across the country 53 percent of which are owned by state banks according to the finance division paper The number of accountholders stood at 814 crore as of December 2016 54 percent of which are with eight state banks

Daily News Flash 27th August 2017

11

The eight banks also account for 31 percent of the total deposits of Tk 952000 crore in the banking sector as of June Source httpwwwthedailystarnetbusiness20-defaulters-account-state-banks-one-third-bad-loans-1454662

ELIAS BROTHERS SEEKS GOVTS HELP TO RESUME BUSINESS Debt-ridden Chittagong-based Mohammad Elias Brothers Limited has now sought the governments help to revive the operations of its edible oil unit which has been shut since 2011 On August 10 Shamsul Alam managing director of MEB sent a letter in this regard to the secretary of the finance ministrys bank and financial institutions division Once a highly sought-after client for the banking industry MEB has recently grabbed headlines by coming first on the list of top 100 loan defaulters in Bangladesh Though Finance Minister AMA Muhith did not disclose MEBs default amount The Daily Star has found that the company has defaulted on its loans with 18 financial institutions the total of which comes to about Tk 870 crore ldquoIf we get the chance to reschedule our loans we are confident that we will be able to repay the loans in 10 to 15 years timerdquo Mohammad Shouib Riad managing director of MEB Industrial Complex told The Daily Star Riad who is Alams son said there are instances of the government assisting debt-ridden companies in the past While there are instances of the state coming to the rescue of financially embattled large firms it is not the finance ministry that makes the call It is the central bank that takes the decision to reschedule loans of troubled companies or extend fresh loans to them For instance in 2015 under a large loan restructuring policy the Bangladesh Bank allowed 11 business groups to reschedule their loans worth Tk 500 crore or more Some Tk 14400 crore worth of loans were restructured under the policy The bank and financial institutions division was surprised to receive such a letter from a business group It has nevertheless asked the BB to fill it in on MEBs loan situation Founded in 1954 as a commodity trader MEB later spread its wings to textiles glass plastics paper mills auto bricks edible oil and beverages It went on to set up one and a half dozens of companies of which only six are now in operations The rest were either shuttered or non-operative because of financial constraints The edible oil unit has suffered the biggest loss and pushed the MEBs bank loans up The letter blamed its fall on the intense competition among several dozen commodity traders that compelled them to sell goods at prices lower than the import costs between 2001 and 2010 MEB was forced to do the same and it accumulated losses and bank loans Secondly MEBs edible oil company had incurred huge losses during the last caretaker government regime in 2007-08 which pressurised the commodity trader to import huge quantities of edible oil at a much higher price Later the group had to sell the commodity for almost half of the cost which yielded losses of about Tk 265 crore ldquoThis loss broke our companys backbone We could not stand up after thisrdquo Alam said in the letter ldquoWe had to buy crude oil at $1300 a tonne and sell those at only $700rdquo said Riad who joined the family business in 2005 Now the group has retreated from commodity trading its core business until 2009-10 altogether ldquoWe had taken the right decision by closing our edible oil refinery in 2011 Otherwise the amount of loans would have been much morerdquo the letter said

Daily News Flash 27th August 2017

11

The eight banks also account for 31 percent of the total deposits of Tk 952000 crore in the banking sector as of June Source httpwwwthedailystarnetbusiness20-defaulters-account-state-banks-one-third-bad-loans-1454662

ELIAS BROTHERS SEEKS GOVTS HELP TO RESUME BUSINESS Debt-ridden Chittagong-based Mohammad Elias Brothers Limited has now sought the governments help to revive the operations of its edible oil unit which has been shut since 2011 On August 10 Shamsul Alam managing director of MEB sent a letter in this regard to the secretary of the finance ministrys bank and financial institutions division Once a highly sought-after client for the banking industry MEB has recently grabbed headlines by coming first on the list of top 100 loan defaulters in Bangladesh Though Finance Minister AMA Muhith did not disclose MEBs default amount The Daily Star has found that the company has defaulted on its loans with 18 financial institutions the total of which comes to about Tk 870 crore ldquoIf we get the chance to reschedule our loans we are confident that we will be able to repay the loans in 10 to 15 years timerdquo Mohammad Shouib Riad managing director of MEB Industrial Complex told The Daily Star Riad who is Alams son said there are instances of the government assisting debt-ridden companies in the past While there are instances of the state coming to the rescue of financially embattled large firms it is not the finance ministry that makes the call It is the central bank that takes the decision to reschedule loans of troubled companies or extend fresh loans to them For instance in 2015 under a large loan restructuring policy the Bangladesh Bank allowed 11 business groups to reschedule their loans worth Tk 500 crore or more Some Tk 14400 crore worth of loans were restructured under the policy The bank and financial institutions division was surprised to receive such a letter from a business group It has nevertheless asked the BB to fill it in on MEBs loan situation Founded in 1954 as a commodity trader MEB later spread its wings to textiles glass plastics paper mills auto bricks edible oil and beverages It went on to set up one and a half dozens of companies of which only six are now in operations The rest were either shuttered or non-operative because of financial constraints The edible oil unit has suffered the biggest loss and pushed the MEBs bank loans up The letter blamed its fall on the intense competition among several dozen commodity traders that compelled them to sell goods at prices lower than the import costs between 2001 and 2010 MEB was forced to do the same and it accumulated losses and bank loans Secondly MEBs edible oil company had incurred huge losses during the last caretaker government regime in 2007-08 which pressurised the commodity trader to import huge quantities of edible oil at a much higher price Later the group had to sell the commodity for almost half of the cost which yielded losses of about Tk 265 crore ldquoThis loss broke our companys backbone We could not stand up after thisrdquo Alam said in the letter ldquoWe had to buy crude oil at $1300 a tonne and sell those at only $700rdquo said Riad who joined the family business in 2005 Now the group has retreated from commodity trading its core business until 2009-10 altogether ldquoWe had taken the right decision by closing our edible oil refinery in 2011 Otherwise the amount of loans would have been much morerdquo the letter said

Daily News Flash 27th August 2017

12

MEB Oil Refinery Plant has the required infrastructure including terminal and tank to resume its operations according to Riad At the end of June the total nonperforming loans of the banking industry stood at over Tk 74000 crore which is 1013 percent of outstanding loans in the economy State-run lenders are the biggest victims over one-fourth of its total loans have gone bad Source httpwwwthedailystarnetbusinesselias-brothers-seeks-govts-help-resume-business-1454647

RAWHIDES MAY ROT FOR RUNDOWN ROADS TANNERS Tanners fear a lot of rawhides may get rotten before reaching the Savar leather estate this year because of the poor condition of the roads and highways Rawhide-laden trucks will have to wait for hours on the roads to enter the estate after crossing tailbacks at Hemayetpur in Savar said Mohiuddin Ahmed Mahin president of Bangladesh Finished Leather Leathergoods and Footwear Exporters Association The trucks may also tilt aside on the way from Hemayetpur to the estate as the condition of the connecting roads has become very poor and risky already he said The hot and humid weather will also play a role for the rawhides to get rotten before reaching their destination he said at a press briefing in Dhaka yesterday The association urged the government to take immediate measures to improve the condition of the roads and highways for the sake of the sector They also demanded the salt prices to be lowered and an uninterrupted supply of gas power and water for their businesses In the previous years the rawhides used to enter the Hazaribagh tannery estate through different points but this year the situation is different Mahin said To tackle the situation the tanners have specially advised the local traders to be cautious for transportation and preservation of the rawhides this year he said Any damaged hides may also create public sufferings in Savar areas he said adding that rawhides need to be treated with adequate amount of salt within six hours of the skinning of cattle Last year around 30 percent rawhides were damaged as salt was not applied on them in time according to Mahin ldquoThe tanners will try to preserve the quality of the rawhides but it would be difficult if the government does not move soon for quick transportation of the skinsrdquo Usually a bag containing 75kg of salt costs Tk 400-500 but the price increases before Eid-ul-Azha when 50 percent of the countrys annual requirement of rawhide is collected Now such a bag of salt is sold at Tk 1200 Mahin said Six to eight kilograms of salt are required for a medium-sized rawhide while a large-sized rawhide may consume 10 to 12 kgs Mahin suggested the government ensure timely import of five lakh tonnes of salt to meet demand Source httpwwwthedailystarnetbusinessrawhides-may-rot-rundown-roads-tanners-1454638

SAME FIVE ENTITIES APPLY FOR LICENCE Bangladesh Telecommunication Regulatory Commission has received proposals from the same entities under the amended mobile number portability guidelines to award a licence to provide MNP services The telecom regulator received five proposals following its invitation on July 27 seeking applications within August 23 this year The five firms are REVE Number Ltd Greentech International Ltd Infozillion BD Telelech Consortium Ltd Brazil-Bangladesh Consortium Ltd and Roots Infotech Ltd a BTRC official told New Age on Thursday

Daily News Flash 27th August 2017

13

Under the lsquoRegulatory and Licensing Guidelines for Mobile Number Portability Services in Bangladeshrsquo all the applicants will have to go through security clearance from the competent authorities Now the proposals for the MNP licence will be evaluated under the beauty contest process within 100 marks the guideline said A BTRC-formed evaluation committee will be responsible to find out eligible applicants based on the criterion set in the guidelines The basis of the marking among others will include participantrsquos experience financial capability and foreign affiliation Afterwards the telecommunication regulator based on governmentrsquos recommendation will award licence to a particular entity to operate the service MNP service licence acquisition fee has been set at Tk 10 crore as the licence would be awarded through a beauty contest process instead of auction The winning company will have to share 15 per cent of its revenues with the government from the second year onwards The operator must provide the service within 180 days of getting the licence or face penalty according to the guidelines MNP service would allow mobile phone users to change mobile phone operator without changing an existing number by paying Tk 30 as charge for the service The BTRC was scheduled to hold the MNP service auction by September last year but postponed it amid security concerns as all the selected firms had foreign partners In June 2013 the telecom regulator asked the mobile phone operators to introduce the MNP service by January 2014 but the operators failed to do so Later the BTRC decided to appoint a third-party company to implement the service Currently some 72 countries including neighbouring India and Pakistan already adopted the popular system for their customers with Singapore being the pioneer in this field Source httpwwwnewagebdnetarticle22762same-five-entities-apply-for-licence

DEFAULTED LOANS IN 9 NEW BANKS RISE BY 161PC IN JAN-JUN The amount of defaulted loans in nine new banks which are enjoying political backings increased by 16103 per cent to Tk 71325 crore in the first six months (January-June) of this year Bangladesh Bank officials said In the nine banks the amount of defaulted loans was Tk 27324 crore as of December 31 2016 BB officials said the surge in the non-performing loans in the banks was the fallout of a number of loan-related scams and corruptions in some of the banks The nine new banks are Meghna Bank Midland Bank Modhumoti Bank NRB Bank NRB Commercial Bank NRB Global Bank South Bangla Agriculture and Commerce Bank The Farmers Bank and Union Bank The BB provided licences to the nine banks in 2012 considering the political background of the owners of the banks despite severe criticisms from different corners an official of the central bank told New Age on Thursday Most of the directors and chairmen of the nine new banks are directly involved with either the politics of the ruling Awami League or those of its allies The BB inspection teams have already unearthed various types of corruptions in disbursing loans in some of the new banks The BB data showed as of June 30 2017 the amount of classified loans in Meghna Bank increased to Tk 5538 crore from Tk 2077 crore as of December 31 2016 that in Midland Bank to Tk 3254 crore from Tk 1435 crore and that in Modhumoti Bank to Tk 545 crore from Tk 451 crore The amount of non-performing loans in NRB Bank rose to Tk 3106 crore as of June 30 2017 from

Daily News Flash 27th August 2017

14

Tk 2411 crore as of December 31 2016 that in NRB Commercial Bank to Tk 19169 crore from Tk 1930 crore that in NRB Global Bank to Tk 6358 crore from Tk 1463 crore and that in South Bangla Agriculture and Commerce Bank to Tk 1094 crore from zero NPL the data showed The data showed the amount of classified loans in The Farmers Bank increased to Tk 30621 crore as of June 30 2017 from Tk 171 crore as of December 31 2016 and that in Union Bank to Tk 1637 crore from Tk 477 crore The BB has recently detected huge anomalies in loan disbursement by The Farmers Bank and NRB Commercial Bank The central bank appointed observers to the banks to check any further corruption in the banks the BB official said The BB official feared that the defaulted loans in the nine new banks might increase further in the coming days if the banks did not comply with the central bankrsquos rules while disbursing loans He said the central bank should give more attention to the new banks to compel them follow the rules and regulations According to the BB data the amount of defaulted loans in the banking sector increased by Tk 1197622 crore to Tk 7414854 crore as of June 30 2017 from Tk 6217232 crore as of December 31 2016 Source httpwwwnewagebdnetarticle22764defaulted-loans-in-9-new-banks-rise-by-161pc-in-jan-jun

PIN MUST FOR ALL CARD-BASED TRANSACTIONS FROM DEC Bangladesh Bank on Thursday issued an integrated order on ICT security for banks and non-bank financial institutions for ensuring security and minimising risks in card-based transactions The central bank issued the guidelines accumulating all other previous guidelines and circulars in this connection According to the guidelines banks and NBFIs must have to use the National Payment Switch Bangladesh for conducting all card-based domestic inter-banks transactions Banks and NBFIs must have to introduce personal identification number-based transactions through cards within December 2017 Clients will have to be informed about the transactions instantly through SMS alert service Card-based transactions of the banks must be certified by the Payment Card Industry-Data Security Standard (PCI-DSS) by December 2018 the guidelines said All automated teller machines of banks having membership of NPSB must be connected with the NPSB network and every ATM-based transaction should be completed using the network Newly established ATMs must have the technology related to EMVCo Complaint or chip card operation anti-skimming PIN guard and encrypted PIN pad Banks will also have to include the new technology in the existing ATMs by December 2017 Banks will have to preserve the video footage of transactions at ATM booths for at least one year mdash three months on online and the remaining months in archived form They will also monitor the footage properly and take steps if anything found doubtful Banks and NBFIs will connect their POS machines with the NPSB before December 2017 and conduct transactions through the network All transactions through the POS should be PIN-based and cardholders will provide the PIN which will be completed through online PIN authorisation process The central bank also made the manual key entry during pre-authorisation of POS for all transactions except online hotel booking and purchase of domestic air ticket Banks will also have to introduce one-time passwordtwo factor authenticationadditional factor authentication system within December 2017 for account or card-based transactions in onlineinternet or e-payment gateway the guidelines said

Daily News Flash 27th August 2017

15

All such transactions must be settled in domestic currency All banks and NBFIs will have to prepare policy related to cyber security governance and plan to fight cyber threats after analysing cyber risks the guidelines said Source httpwwwnewagebdnetarticle22694pin-must-for-all-card-based-transactions-from-dec

BSEC REJECTS SOUTHEAST BANKrsquoS RIGHTS OFFER The Bangladesh Securities and Exchange Commission on Thursday rejected the rights share offer of Southeast Bank The capital market regulator issued a letter in this regard to Southeast Bank a BSEC official said He said that the commission found that the auditor firm signed the audit report for the rights offer before its appointment for the job making the audit report illegal In April this year the board of directors of Southeast Bank had decided to issue one rights share for two existing shares of the bank at an issue price of Tk 1250 a share including premium of Tk 250 Source httpwwwnewagebdnetarticle22695bsec-rejects-southeast-banks-rights-offer

EXPORT BANGLADESH YET TO FULLY TAP ASIAN MARKETS Bangladeshi exports to Asian countries are still low due to absence of proper preferential trade agreements and quality products even though there are huge trade opportunities in the region Exporters and trade analysts say that removing non-tariff barriers signing trade-friendly bilateral agreements and proper usage of preferential trade deals can boost Bangladeshrsquos exports to the region They also said that high dependency on developed countries in North America and Europe could risk export earnings According to Export Promotion Bureau data Bangladeshrsquos exports to Asian countries were worth $416bn in FY2016-17 which is 12 of total exports At the same time European Union (EU) imported 5583 ($1935bn) of Bangladeshrsquos total exports and the United States 2119 ($734bn) For a developing country Bangladesh has made remarkable progress as an exporter of manufactured goods especially readymade garments but itrsquos highly reliant on the markets of developed countries The export basket is dominated by the readymade garment (RMG) sector which accounts for over 80 of total exports followed by several other products including agricultural products frozen food jute and jute goods and leather In the last fiscal year against a target of $37 billion Bangladeshrsquos overall export earnings stood at $3483bn which is 168 higher than the previous yearrsquos $3425bn Of the amount the RMG sector alone earned $2815bn Bangladesh has set an export target of $375bn for the current FY2017-18 which is a 135 rise from last year

Daily News Flash 27th August 2017

16

ldquoSince there is an economic meltdown in traditional export destinations like Europe and the US Bangladesh will have to find new markets Grabbing more Asian markets can help reduce dependency on the developed countries or a certain regionrdquo AB Mirza Azizul Islam former finance adviser to a caretaker government told the Dhaka Tribune ldquoWith the similarities in culture and taste the markets of some of the Asian nations can help Bangladesh boost its export sectorrdquo he added Asiarsquos population is 447 billion which is 596 of the global total China is the most populous nation in Asia with about 138 billion followed by India with 132 billion ldquoBangladeshi apparel products are sold in China Japan Indonesia and some other countries but not all of that is exported directly International buyers buy and import from us and then sell the products in these countries with their brandrdquo Exporters Association of Bangladesh President Abdus Salam Murshedy told the Dhaka Tribune Since there are non-tariff barriers in the way of exporting to these countries the government should take initiatives to sign deals to remove them said Salam also managing director of Envoy Group Even though over $1bn worth of products were exported to Japan in the last FY the market there is yet to be tapped fully as the island nation is a market for high-end products a level Bangladesh has not reached yet he said But Salam added the exporters would enter the high-end markets soon and Bangladeshi exports in the Japanese and other South Asian markets will increase in near future Moreover non-tariff barriers location issues countervailing duty and anti-dumping duty on jute and jute goods by Indian government are also major obstacles for Bangladeshi exporters

ldquoBangladeshrsquos geographical location is not favourable for tapping the emerging Asian marketsrsquo potentiality as it has to use a third country to ship productsrdquo Centre for Policy Dialoguersquos (CPD) Research Director Khondaker Golam Moazzem told the Dhaka Tribune Bangladesh exports products to many Asian countries but it is not as well connected with all the nations of the region as it should be and trade cost is higher because of that said Moazzem

Daily News Flash 27th August 2017

17

Regional connectivity will have to be enhanced for better export opportunities he added The emerging economies of Asia could become a great opportunity for Bangladesh as these economies are witnessing higher growth based on manufacturing Moazzem said ldquoBut to increase export rate to these countries manufacturers will have to improve product qualityrdquo Many Asian countries have their own strong manufacturing base for most of the Bangladeshi products they import and their domestic manufacturers sell similar products in local markets said Moazzem ldquoSo quality products and improvement in comparative advantages are must to penetrate these marketsrdquo he said stressing products diversification Bangladesh government should take steps to make the sub-regional and regional trade and connectivity initiatives such as BBIN BCIM Safta Bimstec and Saarc Motor Vehicles Agreement (Saarc MVA) effective and functional he added Policy Research Institute Executive Director Ahsan H Mansur told the Dhaka Tribune ldquoBangladesh will have to attract more investment from Asian countries especially from Japan and China to increase export in the region and sign more preferential trade agreementsrdquo Investment from these countries will help to improve the quality of products through knowledge sharing said Ahsan Commerce Minister Tofail Ahmed said ldquoBangladeshrsquos export earnings especially from apparel products have witnessed a sluggish growth recently due to price fall and devaluation of euro and pound sterlingrdquo ldquoTo maintain export growth we have decided to focus on the Asian markets As part of market diversification the government will cooperate fully to expand the market in the regionrdquo he told the Dhaka Tribune On the other hand product development will be prioritised to increase earnings from high-end buyers the minister added Experts said that Bangladesh will have to improve product standards and institutional capacity at domestic level first particularly through strengthening the Bangladesh Standards and Testing Institution operation in order to overcome the export barriers Since the preferential market access to a number of Asian countries is not being utilised fully yet the government and export-oriented businesses need to concentrate more on using preferential trade opportunities they said Source httpwwwdhakatribunecombusiness20170824export-bangladesh-yet-fully-tap-asian-markets

rsquo

Daily News Flash 27th August 2017

17

Regional connectivity will have to be enhanced for better export opportunities he added The emerging economies of Asia could become a great opportunity for Bangladesh as these economies are witnessing higher growth based on manufacturing Moazzem said ldquoBut to increase export rate to these countries manufacturers will have to improve product qualityrdquo Many Asian countries have their own strong manufacturing base for most of the Bangladeshi products they import and their domestic manufacturers sell similar products in local markets said Moazzem ldquoSo quality products and improvement in comparative advantages are must to penetrate these marketsrdquo he said stressing products diversification Bangladesh government should take steps to make the sub-regional and regional trade and connectivity initiatives such as BBIN BCIM Safta Bimstec and Saarc Motor Vehicles Agreement (Saarc MVA) effective and functional he added Policy Research Institute Executive Director Ahsan H Mansur told the Dhaka Tribune ldquoBangladesh will have to attract more investment from Asian countries especially from Japan and China to increase export in the region and sign more preferential trade agreementsrdquo Investment from these countries will help to improve the quality of products through knowledge sharing said Ahsan Commerce Minister Tofail Ahmed said ldquoBangladeshrsquos export earnings especially from apparel products have witnessed a sluggish growth recently due to price fall and devaluation of euro and pound sterlingrdquo ldquoTo maintain export growth we have decided to focus on the Asian markets As part of market diversification the government will cooperate fully to expand the market in the regionrdquo he told the Dhaka Tribune On the other hand product development will be prioritised to increase earnings from high-end buyers the minister added Experts said that Bangladesh will have to improve product standards and institutional capacity at domestic level first particularly through strengthening the Bangladesh Standards and Testing Institution operation in order to overcome the export barriers Since the preferential market access to a number of Asian countries is not being utilised fully yet the government and export-oriented businesses need to concentrate more on using preferential trade opportunities they said Source httpwwwdhakatribunecombusiness20170824export-bangladesh-yet-fully-tap-asian-markets

rsquo

Daily News Flash 27th August 2017

18

Source httpwwwkalerkanthocomprint-editionindustry-business20170827536561

Source httpwwwkalerkanthocomprint-editionindustry-business20170827536559

১৩৯৮ ৮ ১

-

mdash

Daily News Flash 27th August 2017

19

-

-

- -

rsquo

rsquo

rsquo

-

-

-

Source httpwwwkalerkanthocomprint-editionindustry-business20170827536557

Daily News Flash 27th August 2017

20

Source httpwwwarthosuchakcomarchives366971

৮৬

-

Source httpwwwarthosuchakcomarchives366867

Daily News Flash 27th August 2017

21

-

-

- -

-

Source httpwwwarthosuchakcomarchives366829

Daily News Flash 27th August 2017

22

Source httpwwwarthosuchakcomarchives366745

-

-

- -

Source httpwwwarthosuchakcomarchives366717

Daily News Flash 27th August 2017

23

-

-

-

-

rsquo

rsquo

rsquo

-

-

Daily News Flash 27th August 2017

24

Source httpwwwprothom-alocomeconomyarticle1303811

-

-

Source httpwwwprothom-alocomeconomyarticle1303756

Daily News Flash 27th August 2017

24

Source httpwwwprothom-alocomeconomyarticle1303811

-

-

Source httpwwwprothom-alocomeconomyarticle1303756

Daily News Flash 27th August 2017

25

২০০০

-

-

- -

-

-

Source httpbanglasamakalnet20170827320417

Daily News Flash 27th August 2017

26

( )

( )

Source httpbanglasamakalnet20170827320415

-

-

( )

-

Daily News Flash 27th August 2017

27

( ) -

-

-

-

-

-

Source httpbanglasamakalnet20170827320568

৮

Daily News Flash 27th August 2017

28

Source httpbanglasamakalnet20170821318746

১০ ( )

-

Daily News Flash 27th August 2017

29

( )

mdash

-

( ) -

Source httpbonikbartanetbanglanews2017-08-27129307 - - - - - - -

rsquo

( )

rsquo

rsquo

rsquo

rsquo

Daily News Flash 27th August 2017

30

Source httpbonikbartanetbanglanews2017-08-27129305 - - - -

( )

-

rsquo

rsquo

( )

( )

-

-

Source httpbonikbartanetbanglanews2017-08-27129276 - - - - -

১১ - ( )

- -

-

Daily News Flash 27th August 2017

31

-

-

mdash

( )

( )

Source httpbonikbartanetbanglanews2017-08-27129278 - - - -

Daily News Flash 27th August 2017

32

( )

( )

( )

( )

rsquo - rsquo

Source httpbonikbartanetbanglanews2017-08-25129003 - - - - - -

-

-

( )

( )

rsquo

Daily News Flash 27th August 2017

33

( )

Source httpbonikbartanetbanglanews2017-08-25129004 - - - - - - --- -

( )

( )

rsquo rsquo

Source httpwwwsharebazarnewscomarchives85546

Daily News Flash 27th August 2017

34

( ) ( -

) ( )

ldquo

rdquo

rsquo

(Negative Equity) -

( )

( )

ঐ

-

rsquo

rsquo rsquo rsquo

( )

Source httpwwwsharebazarnewscomarchives85522

২৫

( )

Daily News Flash 27th August 2017

35

- - ( )

-

-

-

( )

( )

( )

Source httpwwwsharebazarnewscomarchives85520

৪৭২

( )

_

( )

( )

rsquo

rsquo

Daily News Flash 27th August 2017

36

Source httpwwwsharebazarnewscomarchives85518

১৬১

( ) ( )

( )

rsquo

-

-

Source httpwwwsharebazarnewscomarchives85505

( )

R

( )

( )

Source httpwwwsharebazarnewscomarchives85481

Daily News Flash 27th August 2017

37

-

MaschinenfabrikHerkules GmbH amp Co ldquo rdquo

rsquo

ldquo

rdquo

ldquo

rdquo

rsquo

( ) ( ) (

) ( )

( ) rsquo

Source httpwwwsharenews24comindexphppage=detailsampnc=1ampnews_id=5343