News Clippings from the Week (October 18)

Furniture exports rise 27% (The Daily Star, October 18) 

The 11th National Furniture Fair going on now has brought attention to the growth of the furniture sector.  According to data from the Export Promotion Bureau, furniture exports grew by 26% between fiscal year 2011-2012 and the previous fiscal year to Tk 220 crore.  The local furniture market is estimated at Tk 11,000 crore.  In total the industry is believed to employ 30 lakh people.  

Solve infrastructure and power shortage to create jobs: MCCI Seminar (New Age, October 17)

In a seminar organized by the Metropolitan Chamber of Commerce & Industry, speakers pointed to several barriers to business development, including inadequate infrastructure, shortage of power, lack of skilled workforce, and unavailability of soft loan. They also emphasized the need to develop more skilled manpower. The seminar was entitled "Job creation in Bangladesh- an effective means to poverty reduction."

Apparel sector faces stagnation for bank's reluctance  (New Age, October 16)

Four apparel sector trade bodies reported  stagnating financial flows in the wake of the Sonali Bank – Hall Mark loans scandal that is hurting business.  Commercial banks are reportedly hesitant to accept Bills of Acceptance after Sonali Bank’s failure to ensure the quality of the Letters of Credit (on which Bills of Acceptance are based) that it issued to Hall Mark.   The speakers said that this situation can be eased if Sonali Bank pays against the bills of acceptance of Hall Mark group.

Bangladesh gets 3G, finally (Bdnews24.com, Oct. 14)

Bangladesh has finally launched third generation mobile communications technology (known as 3G), which offers faster data connectivity.  Currently the service is limited to customers of the state run TeleTalk, which controls only 1.5% of market share.

Chittagong port haven for dishonest importers (The Independent, October 14)

The importers of Chittagong port regularly submit incorrect and illegal customs declaration when importing of goods. The customs department has evidence of some 3,200 wrong declarations, which has resulted in hundreds of crores of taka tax evasion.

Corruption main hurdle to get MCC fund (The Independent, October 12, 2012)

Representatives from the Millennium Challenge Corporation (MCC), an independent United States foreign aid donor, said that Bangladesh should reduce corruption to obtain access to MCC funds. At a press conference organized by the US Embassy it was noted that corruption is also associated with other problems undermining the rule of law, port capacity, rail, road, power, energy and credit facilities.