News Clippings from the Week (11 October)

Dhaka Declaration commits to pursue industrial co-op among members (The Financial Express, October 11, 2012).

The third ministerial meeting of the Muslim Developing-8 (D-8) countries, including Bangladesh, Pakistan, Egypt, Iran, Indonesia, Malaysia, Nigeria, and Turkey, concluded yesterday.  The “Dhaka Declaration” outlines measures for mutual investment on industrial and technological development, technology transfers among member nations, and technical and industrial cooperation

IMF won’t loosen strings on loans (The Daily Star, October 11, 2012).

The IMF is threatening to not release the second installment of a US$987 million credit to Bangladesh worth US$141million if the parliament fails to move forward on proposed reforms to the VAT and the Banking Companies Act by November.  The IMF expressed its concerns that a proposed 15% VAT in initial draft legislation has been undermined by exemptions.  In addition, the IMF wants greater authority for banking oversight transferred from the Banking Division of the finance ministry to the more independent Bangladesh Bank. The finance ministry is also seeking an exception to allow high bank exposure limits in the stock market.    

Bangladesh: next pharma hub  (The Daily Star, October 10, 2012)

In the ministerial meeting of the Development-8 (D-8) pharmaceutical leaders of Bangladesh said that country will soon become a major global source of low-cost generic medicines and vaccines. As Bangladesh is capable of producing high-quality products with state-of-the-art manufacturing facilities and it can provide sophisticated quality control equipment and highly-skilled human resources. A number of pharmaceutical companies have obtained certifications from the UK, the European Union, Australia, the Gulf countries and other regulatory authorities.

Economists want more clout for BB to govern state banks  (The Daily Star, October 8, 2012)

The speakers on a discussion on Hall-Mark scam said that the government should give more authority to the central bank by disbanding the Bank and Financial Institutions Division of the finance ministry. In case of the state banks, the BB can only advise the government to take actions and it does not have any direct control over them.  In case of the private banks, the BB it has full regulatory control.

Speakers stressed need for easy bank loan (The Financial Express, October 7, 2012)

Association of Grassroots Women Entrepreneur, Bangladesh (AGWEB), in a conference stressed the need for easy bank loan. The speakers suggested that the government should arrange training program on entrepreneurship development and awareness, skill development, business counseling, networking support for the overall development of the grassroots women entrepreneur.

IT outsourcing earnings rise by 56% (The Independent, October 6, 2012)

BASIS said that earning from outsourcing IT jobs has increased by 56 percent in last one year. In the 2011-12 fiscal year the earning were US$70.6 million. At present there are more than 500 software companies according to BASIS.

BB opens probe as banks' dues against accepted bills soar (The Daily Star, October 5, 2012)

In response to the Hall-Mark/Sonali Bank loan scandal, "The central bank has opened an investigation into the rise in banks' dues against their accepted bills. Banks accept foreign and local bills against letters of credit. But due to complaints of false documentation and faulty accepted bills against local and foreign LCs, the banks later refuse to pay the bills. Influential businesses in collusion with some bank officials provide these false documents to banks to siphon money."

Hong Kong investors keen on investment in leather sector  (The Daily Star, October 5, 2012)

The president of Hong Kong New Territories Manufacturers Association proposed for a special industrial zone for composite leather to the government of Bangladesh. He suggested the government for issuance of bonded warehouse licence with easy terms for foreign investors, uninterrupted power supply, and registration processes for companies of foreign investors. He also urged the government to speed up the process of setting up the leather processing zone in Savar.