Wednesday, April 24, 2013

Weekly News Clippings 25 April 2013



RMG sector faces severe blow in int’l market for Savar tragedy (New Age, April 25, 2013)

The Savar tragedy is yet another blow for the country’s readymade garment (RMG) industry which is still recovering from the aftermath of the Tazreen disaster, said economists and garment exporters. With the numbers expected to rise, over 100 people, most of them garment workers, were killed and 500 were injured when a nine-storied building housing five garment factories and other shops collapsed on April 24. Locals alleged that the owner did not cordon off the building even after engineers had ordered the building to be evacuated on Tuesday after cracks developed in the building earlier that day. The apparel factory owners also ignored the advice and kept their units running. Apparel workers alleged that the structure of the building was so frail that it used to shake even when a generator ran. The RMG sector, which has been under severe criticism and scrutiny from international community and buyers for the last few years for lacking workplace safety, came under more pressure after 112 workers were killed in a devastating fire at Tazreen factory in November, 2012.

 

(This is an evolving story and updates are available through any of the major news outlets.)  

 

Dhaka replies to USTR with promise of tight factory monitoring (New Age, April 25, 2013)

The government has assured the United States Trade Representative (USTR) of strengthening its monitoring of working conditions in factories. With a promise to comply with labour rights and safety at factories, the government also said that it would increase the number of factory inspector post to 848 from the existing 183 and improve vigilance against rights violations at factories, especially in the garment sector. At present, the Department of Inspection for Factories and Establishments has only 90 factory inspectors despite 183 approved posts to monitor the working conditions. To retain the Generalized System of Preferences in the US market the government assured that the draft of Occupational Health and Safety Policy, which was scheduled to be placed before the cabinet by June 30 this year for approval, is in its final stage.

 

Govt revenue target for FY’14 unrealistic: NBR (New Age, April 25, 2013)

The National Board of Revenue has termed the government’s revenue collection target for the upcoming 2013-2014 financial year unrealistic and unachievable and recommended to bring it down. According to the NBR chairman, it will be impossible for the revenue board to achieve the target set by the government in the current political unrest and downtrend in macroeconomic situation.  At the Sixth Five-Year Plan, the government had set a revenue target for the NBR at Tk 1,36,000 crore with 21 per cent growth over the previous year but the NBR said they could hardly achieve a target of Tk 1,25,000 crore, or 13 per cent growth.

 

Ensuring compliant industries can boost export: seminar (New Age, April 23, 2013)

Producing quality goods and complying with the laws can strengthen the export prospects for Bangladesh industries in the international markets, according to speakers at a seminar on “Promotion and strengthening of export prospects for Bangladesh-made products in the US and EU markets”. Sourcing at MAGIC organised the seminar.

 

Bangladesh retains 7th position (New Age, April 22, 2013)

Bangladesh retains its position as the seventh most remittance-earning country in 2012. According to a World Bank’s Migration and Development Brief 2013 released on Friday, the total inward migrant remittance to the country was Tk 1,12,000 crore (i.e. $14 billion) last year. In 2011, the amount was Tk 96,000 crore (i.e. $12 billion). India remains the largest recipient of migrant remittances with $69 billion closely followed by China.

 

N-plant the need, but safety first (The Daily Star, April 21, 2013)

Energy experts at a roundtable on “Nuclear power in Bangladesh: prospects and concerns” have endorsed the government plan for nuclear power plants to meet the growing energy demand but warned of the safety issues, as well. They emphasized the importance of trained and competent technical manpower to operate nuclear reactors and ensure their safety.
The government has recently signed an agreement with Russia to build a 2,000-MW nuclear power plant. Bangladesh plans to produce 2,000 megawatt of electricity using nuclear energy by 2023 to meet the demand for 21,993MW and another 4,000MW by 2030 to meet the demand for 33,708MW.

 

Bridge with own fund to create resource constraints: CPD (The Financial Express, April 21, 2013)

The government’s move to construct the Padma Bridge with its own fund may eat up a giant share of the next budget creating resource constraints for many important projects in the health, education sector and social security sectors. The local think tank, Centre for Policy Dialogue (CPD) said that the government “should be aware of its ambitious targets and should present an austere, conservative, compromising and careful budget for the next fiscal year."  The government plans to allocate Tk 68.52 billion in the next fiscal year's annual development programme (ADP) for the Padma Bridge project.

 

WB bans Lavalin for 10 years (The Daily Star, April 19, 2013)

The World Bank has banned the Canadian engineering firm SNC-Lavalin Inc from taking part in any of its projects for the next 10 years. According to a statement by The World Bank (WB), the firm has been linked to corruption in a number of WB-funded projects including the Padma bridge construction and a rural electrification project in Cambodia.

 

BD economy to grow by 6.0pc: ESCAP (Dhaka Tribune, April 18, 2013)

Bangladesh economy would grow by 6.0 percent in the outgoing fiscal year, ending in June, which is lower than the government's target of 7.2 percent. According to the latest report of the Economic and Social Commission for Asia and the Pacific (ESCAP), political instability hampered production and transportation and eventually ate up economic prospects. The ESCAP in its report commented that although the growth would be lower than the initial target, it would be in line with the growth performance in the recent years. Bangladesh obtained 6.3 per cent growth in last fiscal year and 6.7 per cent in 2010-11.

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