Weekly News Clippings (June 27, 2014)

Govt plans survey to stop loss of arable land (The Daily Star, June 27, 2014)
The government plans to conduct an integrated survey on the use of land to help policymakers frame strategies to curb transfer of arable land to non-farm purposes. The amount of land going out of cultivation soared to 687,000 hectares a year during 2000-2010, said a study by Soil Resource Development Institute under the agriculture ministry. According to the Secretary of Statistics and Informatics Division of the planning ministry, the country is “losing valuable cultivable land due to construction and other purposes which is why it has become important to get proper data on the land use pattern". Bangladesh lost 13,412 hectares of cropland annually during 1976-2000.

Grabbers take 2,800 acres of govt land, 43 canals in city (New Age, June 26, 2014)

Investigations by the authorities revealed that during the city survey corrupt land officials and employees had recorded 2,800 acres of government land, known as khas land, and 43 canals in the capital as private property. There are also allegations that the corrupt land officials and employees made a fortune by aiding the land grabbers. The initiative of the Department of Land Records and Surveys to recover the government land or canals and initiate action against the dishonest land officials and employees was halted by injunction from the court. 

Money flies away from Bangladesh (The Daily Star, June 25, 2014)  

Bangladesh loses millions of dollars in capital flight every year due to a leakage in the balance of payments and trade misinvoicing by businesses. Over the last four decades, the country lost $800 million a year on average in capital flight driven by balance of payment leakages, trade misinvoicing and unreported remittances, according to a United Nations study. The total capital flight from Bangladesh accounts for 30.4 percent of its GDP of over $100 billion in 2010, says the study by the United Nations Development Programme. The UNDP looked into illicit financial flows from eight low income and Least Developed Countries (LDCs): Bangladesh, Bolivia, Côte d'Ivoire, Guinea, Nepal, Sierra Leone, Tanzania and Zambia.

Stalemate Over Garment Factory Safety in Bangladesh (The New York Times, June 25, 2014)

Created a little more than a year ago to ensure worker safety in Bangladesh, the Accord has moved at a steady pace with inspections. It has hired 110 engineers and inspected 775 factories for structural soundness, unsafe electrical boxes, adequate fire exits and sprinkler systems — a new requirement for factory buildings 75 feet or taller. The series of inspections through more than 1,000 of the country’s apparel factories has been emotionally freighted from the start, with workers, manufacturers, building owners and government officials watching the process with conflicting sentiments. Of course, many Bangladeshis recognize the need for these inspections but factory closings can have immediate economic impact. 

KK Tea wins a spot in top superstores (The Daily Star, June 24, 2014)

Kazi & Kazi Tea, the country's first and only organic tea producer has pinned Bangladesh as a quality tea producer on the world map. The tea is now sold in countries like the US, UK, New Zealand and Malaysia. In the UK, Teatulia, (the name stemming from Tetulia, the northernmost district of Bangladesh where the tea is grown) its international brand name, is currently sold exclusively through Holland & Barrett, which has more than 800 stores, becoming the only Bangladeshi product to be sold upmarket. The tea is also being sold in other leading superstores in London. To remain 100 percent organic, the tea is sold in environment-friendly, biodegradable jute bags, which are also produced in its factories. It also promotes organic farming in the locality.

Bangladesh tea prices up as local demand outstrips supply (Reuters, June 24, 2014)

Tea prices in Bangladesh were higher at the weekly auction on Tuesday as larger supplies were offset by strong demand from local buyers. Bangladesh's tea production in 2013 rose 1.6 percent from a year earlier to a record 63.5 million kg due to favourable weather. That still fell short of domestic consumption of about 65 million kg. Around 1.8 million kg was offered at the sole auction centre in Chittagong, and nearly 27 percent remained unsold. Bangladeshi buyers have been importing tea in bulk from neighbouring India, contributing to a glut in the domestic market and reducing demand at auctions. 

Bangladesh may face risks of middle-income trap and jobless growth (Dhaka Tribune, June 24, 2014)

Bangladesh may face the risks of middle-income trap and jobless growth unless the present pattern of growth is not reversed, economists fear. Renowned economists at a recent conference said that traditional problems like energy and land crisis should be removed while eliminating corruption and establishing rule of law are among the immediate challenges for accelerated and sustainable growth. They also found two immediate challenges to overcome – the middle-income trap and jobless growth. 

BB to investigate fictitious Swiss accounts (Dhaka Tribune, June 24, 2014)

The central bank of Bangladesh has decided to investigate the fictitious accounts held by Bangladeshi nationals in different Swiss banks. According to the report, Bangladesh Bank will investigate alleged money laundering by some Bangladeshis who supposedly deposited a huge amount of money in different banks in Switzerland. A recent report of the Swiss National Bank (SNB) showed 62% increase within one year in the volume of money deposited by Bangladeshis in different banks in Switzerland.

Bangladesh ‘Likes’ Harvard (The Harvard Crimson, June 23, 2014)

According to a recent report on university Facebook pages, Harvard and other universities like Yale and Oxford, may have had their number of Facebook likes artificially inflated. According to the report, most of Harvard’s 3.3 million likes come from Bangladesh’s capital city of Dhaka. The person who made the allegations, Lenny Teytelman, said that he suspects Facebook is at fault for artificially increasing likes to justify institutions paying to promote their online pages. Facebook has denied the allegations. In a statement Harvard also said that the university did not pay for any of the 3.3 million likes on its official Facebook page.

Economic progress lauded (The Daily Star, June 22, 2014)

Local and foreign economists praised the country's progress on the development and economic fronts and also reminded the country of the serious challenges it faces to sustain the advancement and make further leaps, at the inaugural ceremony of Bangladesh Economists Forum's first conference in Dhaka. They said that the country also needs to clearly capture the demographic dividend before ageing burden hits the country in 2040. Further pro-poor structural transformation is also needed in the agriculture, nutrition and fertility areas, they said.

Children in Bangladesh teaching mothers how to read (World Bulletin, June 21, 2014)

A Bangladeshi non-governmental organization has launched a campaign to encourage students to educate millions of illiterate mothers in the country. Around 100,000 illiterate or semi-illiterate mothers from 46 districts will be brought under the campaign and around 20,000 copies of books have already been distributed in ten districts. According to the latest survey of Bureau of Non-formal Education, about 37 million people are illiterate in Bangladesh, around one in five people.

Weekly News Clippings (June 21, 2014)

62pc rise in Swiss bank deposits (The Daily Star, June 21, 2014)
Deposits by Bangladeshi citizens at various Swiss banks rose by 62 percent year-on-year in 2013, mainly due to political unrest and lack of safety throughout the year when many predicted a government changeover. The deposits that stood at Tk 3,236 crore (372 million Swiss franc) at the year end were Tk 1,991 crore in 2012, according to the latest data of Swiss National Bank (SNB), the country's central bank. In contrast, the money held in Swiss banks by foreign clients from across the world continued to decline and stood at a record low of 1.32 trillion Swiss francs (about $1.56 trillion) at the end of 2013.

WB's $600m loan for rural power supply (The Daily Star, June 20, 2014)
The World Bank has lent Bangladesh $600 million to help the country construct new power lines and substations, and upgrade existing lines, in an effort to ensure reliable power for 25 million rural consumers. The 40-year credit facility will come at an interest rate of 0.75 percent with a 10-year grace period. The project will aim to reduce system losses and enhance the capacity of the rural electricity network in the Dhaka, Chittagong and Sylhet divisions.

Stop anti-formalin drive (The Daily Star, June 20, 2014)
Mango traders and growers of Chapainawabganj, Rajshahi have extended their support to retail fruit traders of the capital protesting the ongoing drive against adulterated fruit, launched on June 11 which has stirred a controversy surrounding the device being used to detect adulteration. Mango growers threatened to enforce a hartal in Chapainawabganj district on Sunday if law enforcers do not stop the drive. As many as 100 trucks of mangoes valued at Tk 30 crore have so far been destroyed across the country and a number of mango traders have been fined and jailed, fruit vendors said. The protesters also accused the police of taking bribes.

Nepal to give duty-free access for 74 Bangladeshi items (New Age, June 19, 2014)

Nepal would be giving duty- free access to 74 Bangladeshi products to reciprocate to Bangladesh’s agreement to grant zero-tariff entry to 108 Nepali items. Bangladesh had also proposed that Nepal should allow market access of its pharmaceuticals, garments, agro-processed food items, refrigerators and other electronics home appliances. The 108 Nepali goods short listed by Bangladesh for preferential treatment include lentil, vegetables, cereal, wheat flour, fruit, juice, dairy and handmade paper. 

Legal flaw fails to stop formalin use in food (New Age, June 19, 2014)

The safe food law names formaldehyde as only formalin without mentioning its generic and commercial tags, creating problems in checking its use in food items such as fruit, vegetables, fish and milk which can be toxic in high amounts. The chemical, commercially known as formalin and formol, which is often used to preserve fruit, vegetables, fish and milk, is imported into Bangladesh in many other names such as methanal, methyl aldehyde, paraformaldehyde, polyoxymethylene, paraform, formagene and morbicid acid. Experts said that as the Safe Food Act 2013 does not name the variants, it becomes tough for authorities to check against formalin use in food. 

Bangladesh, Chinese company sign US$1.6bn bridge deal (Turkish Press, June 18, 2014)

Bangladesh has finally sealed a construction deal for its long-running Padma bridge project, after signing a deal with a Chinese state-owned firm on Tuesday. The 6 km long bridge is set to cost Tk. 121.32 billion (US$1.56 billion), which is Tk. 30 billion more than costs projected in 2011. The Chinese firm, China Major Bridge Engineering Company Limited, will be responsible for building the main infrastructure for the bridge and have it ready to open by 2018. 

Bird flu 'danger zones' mapped (BBC, June 17, 2014)

A study, published in Nature Communications, showed parts of Bangladesh, India and Vietnam could easily sustain the deadly bird flu virus. Scientists have mapped the “danger zones” in Asia which are vulnerable to the virus, called H7N9, has infected 433 people mostly in China and has killed 62. The research group said those areas should monitor poultry to ensure any threat is detected. Bangladesh, northern India, the Mekong and Red River deltas in Vietnam and isolated parts of Indonesia and Philippines were identified as at-risk areas.

High tax looms over luxury cars (The Daily Star, June 17, 2014)

The revenue authority is set to slap higher advance tax for owners of luxury cars in the upcoming fiscal year in an attempt to meet the steep revenue target. A new tax slab will be introduced for vehicles above 3,500CC, which are typically luxury cars or sports utility vehicles, said a senior official of the National Board of Revenue. A tax of Tk 1.25 lakh will be imposed during registration or fitness renewals at the Bangladesh Road Transport Authority (BRTA), which would be adjustable with total income tax. At present, owners of vehicles above 2,800CC are subjected to a Tk 1 lakh advance tax. The move comes at a time when the sightings of high-end vehicles are on the rise. 

Forex reserve crosses $21bn mark (Dhaka Tribune, June 17, 2014)

The country’s foreign exchange reserve has crossed $21bn yesterday thanks to increased inflow of foreign funds mainly due to the local currency’s becoming stronger against dollar. It would be enough to meet as many as seven months of import payments as it reached the new high in only two months from $20bn-mark as of April 10. The reserve was $18bn in December last year. Despite slow growth in foreign remittance and imports accelerating lately ahead of Ramadan, the forex reserve reached the new high due to allowing short-term foreign financing in the private sector, said a senior executive of Bangladesh Bank. 

Invest more in infrastructures (Dhaka Tribune, June 16, 2014)

Asian Development Bank President Takehiko Nakao has urged Bangladesh to invest more in infrastructure development to become a middle income country. It spends only 3% of GDP on infrastructure, he said at a press conference at ADB’s Bangladesh Resident Mission in Dhaka. He discussed with government officials about reform in value added tax and stronger enforcement administration of tax collection. He also emphasized on the need for skills development and business climate improvement as the country targets middle-income status.

Condition imposed on formalin import (Dhaka Tribune, June 16, 2014)

The Ministry of Commerce yesterday imposed tougher conditions on the import and use of formalin. Now, the importers must apply with recommendations from respective ministries and the retailers must keep registered records of the formalin buyers. The conditions have been imposed through a gazette notification issued on 14 March last year.

Wealth tax: need of the hour (The Daily Star, June 15, 2014)

A top government functionary yesterday called for imposition of wealth tax to discourage accumulation of unproductive assets. Planning Minister AHM Mustafa Kamal at a dialogue on an analysis of the proposed budget, organised by the Centre for Policy Dialogue,  also mentioned the issue of black money, saying it is generated through concealment of the real transaction value of land. Kamal cited the high land-value in Gulshan and Banani areas as a case in point. In practice, the real transaction value of land in those areas is not disclosed in the registration papers; a much lower figure is quoted to avoid tax. Discussants at the programme said the economy is unlikely to get a momentum without any improvement in the political atmosphere, governance and infrastructure.

Weekly News Clippings (June 13, 2014)

Foreigners come under NBR's greater scrutiny (The Daily Star, June 13, 2014)
The National Board of Revenue has asked its field offices to increase vigilance to ensure tax collection from foreigners working in Bangladesh. It also requested the other government agencies to ask the foreigners to get income tax clearance or exemption certificates from the tax offices and submit the documents when they leave the country. The NBR also instructed the employers to inform their foreign employees about their obligation to pay tax on their earnings. Foreign nationals are subjected to 25 percent tax on their incomes, with the rate set to go up to 30 percent in the next fiscal year after the passage of Finance Bill 2014 in parliament.

TABLE-Bangladesh's April money supply up 15 pct yr/yr (Reuters, June 13, 2014)
Bangladesh's broad money supply in April rose 15.12 percent to 6,735.72 billion taka ($86.77 billion) from a year earlier, up from 6,677.09 billion taka from a month ago, the central bank said on Thursday. Below is table of broad money supply.
     
 Period                 April 2014   March 2014   April 2013
                                                                       
 Broad money supply    6,735.72     6,677.09     5,851.17
                                                 
($1 = 77.63 taka)

 

ACC to sue 17 for Rana Plaza collapse (The Daily Star, June 12, 2014)

The Anti-Corruption Commission will file a case against Savar Municipal Mayor Md Refatullah and 16 others for allowing construction of Rana Plaza building violating the national building code. ACC Director Wing Commander Tahidul Islam said the building authorities initially availed approval for a six-storey building but later they erected up to the ninth-storey. On top of that, the building authorities used substandard construction materials.  The ACC approved the filing of the case more than a year after the collapse of the building that killed at least 1,135 people, mostly readymade garment workers, at Savar on the outskirts of the capital.  However, the prime accused of the country’s worst industrial disaster and owner of the building Sohel Rana will not be accused in the case. 

BWCCI unveils plan to promote women entrepreneurs (The Daily Star, June 12, 2014)

The Bangladesh Women Chamber of Commerce and Industry has launched a plan to create 5,000 women entrepreneurs by 2020 from the micro- and small- and medium-enterprise levels. “These 5000 women entrepreneurs will grow their businesses and will be part of the mainstream private sector,” said Selima Ahmed, president of BWCCI.  The areas are: capacity development, product development, marketing, research and development, leadership development, export market promotion, facilitating access to finance, advocacy, ICT, e-commerce and digitalisation, environmental conservation, reduce gender disparities, sexual and reproductive health rights.

WB's growth forecast falls below govt target (The Daily Star, June 12, 2014)

The World Bank has projected 5.9 percent growth for the country in fiscal 2014-15, far below the government's target of 7.3 percent. The forecast is in line with potential growth, the multilateral lender said in the Global Economic Prospects report released on June 11. The figure is higher than that forecast for its South Asian neighbours save for India, which is expected to grow at 6.3 percent. The projection for South Asia, excluding India, is 5.1 percent and for developing countries 4.8 percent. China is expected to grow by 7.6 percent this year, but this will depend on the success of rebalancing efforts. 

Global wealth grows to $152tr (The Daily Star, June 11, 2014)

There are millions more millionaires in the world, thanks to a huge surge in private wealth around the world. More than 16 million households passed the mark in US dollars in 2013, up from 13.7 million in 2012, according to a report by the Boston Consulting Group (BCG). Most of them are to be found in the US, which also has the highest number of new millionaires, and wealth is growing fast in China.  There are 2.4 million households there with more than $1 million – 900,000 more than the year before, the report found. 

GIZ, Huntsman to help manage chemicals in garment factories (The Daily Star, June 11, 2014)

German international cooperation agency GIZ has signed a deal with global industrial chemical manufacturer Huntsman to help Bangladesh's textile factories eliminate the use of hazardous substances from their production process. GIZ has been conducting training in Bangladesh in chemical management, which includes handling and storage of chemicals, improving workplace safety, achieving cost savings and complying with environmental laws. Huntsman and GIZ will cooperate to improve the management of chemicals in 10 textile mills in Bangladesh under the deal. 

Bangladesh sounds alert over fruits laced with formalin (Gulf Times, June 10, 2014)

Bangladeshi police are to set up check posts at the main entry points to the capital Dhaka to prevent the import of fruits which have been sprayed with alarming levels of a deadly chemical to extend their shelf life. The Dhaka Metropolitan Police (DMP) has taken this initiative after it found high levels of formalin, an illegal chemical which is sometimes used as a preservative and disinfectant, in almost every fruit in Dhaka. The check posts will be set up from June 11 at eight entry points of the city. Armed with formalin detection kits, our officers and magistrates will check every lorry carrying fruit to the capital. Anyone found to have carried formalin-laced fruits could be jailed for up to two years or fined up to 200,000 taka ($2,531).

Tk 200 cr for climate change (Dhaka Tribune, June 10, 2014)

Bangladesh Climate Change Trust Fund (BCCTF) has been allocated Tk2 billion in the budget proposed for fiscal year 2014-15 to reduce the climate change adversities in the country. As of the current fiscal year, the climate trust fund, formed by the government’s own resources in 2009, has received Tk 25 billion in the last five fiscal years. Bangladesh is one of the most vulnerable countries exposed to global climate change though it insignificantly contributes to the adversity, caused by the climate change. Apart from the BCTF, there is another fund named Bangladesh Climate Change Resilience Fund, which was formed by the government established with the assistance of development partners in 2011. The fund has so far received $186.9 million from the development partners.

WB to give $140m loan for fighting natural disasters (Dhaka Tribune, June 10, 2014)

Bangladesh will get a loan worth $140m from the World Bank to improve and strengthen critical disaster prevention infrastructure in the coastal areas of the country. The loan for the second additional financing of the Emergency 2007 Cyclone Recovery and Restoration Project (ECRRP) is from the International Development Association (IDA), the World Bank’s grant and low-interest arm.

 

Facebook commerce ‘gaining popularity’ (Dhaka Tribune, June 9, 2014)

The government should formulate a guideline for Facebook commerce as it is getting popular everyday speakers at a seminar urged. They said the business is growing faster and even gradually overtaking the e-commerce or online business in Bangladesh, they said at a seminar titled “Social Media: A Tool for Change” on Saturday. Market analysts and leading IT entrepreneurs spoke on the occasion. F-commerce is a new business platform in the country which is somewhat different from e-commerce and mainly operates through social networking site Facebook.

China to boost bank lending power (Dhaka Tribune, June 8, 2014)

China aims to cut the proportion of cash that commercial banks must keep with the People's Bank of China, the banking regulator said on Friday, although the IMF and World Bank say the economy is doing fine. Both the IMF and World Bank gave China a thumbs-up in separate reports this week that said the world's second-biggest economy should hit the government's target of around 7.5% growth this year, and encouraged the more urgent pursuit of reforms. 

1,700 Factories Now Covered by Bangladesh Accord (OH&S, June 7, 2014)

Around 176 global brands and retailers have signed the legally binding accord, which now covers 1,700 factories and 2 million workers, according to Scott Nova, executive director of Worker Rights Consortium. The RMG industry is an important part of Bangladesh's economy, employing 3.5 million workers in approximately 3,500 factories. The Rana Plaza collapse in April 2013, killing 1,137 workers, prompted international unions and Bangladeshi trade unions to develop the accord along with international brands and retailers.

New DAP to be completed by FY2014-15’ (Dhaka Tribune, June 6, 2014)

The government aims to complete the new Detailed Area Plan (DAP) of Dhaka by fiscal 2014-15. Besides, it has allocated Tk2059.46 crore for the Ministry of Housing and Public Works in the proposed 2014-15 budget. Realising the importance of planned urbanization, the government formulated DAP for Dhaka, Khulna and Chittagong Metropolises, and Divisional Area Structural Plan for Sylhet, Chittagong and Barisal in its previous term,” the minister said while presenting the budget in the parliament.

Weekly News Clippings (June 5, 2014)

Goodbye to city's flood flow zones (The Daily Star, June 5, 2014)
A cabinet committee has approved alterations to Detailed Area Plan (DAP) to allow some private housing schemes on conservable flood flow zones of the capital much to the dismay of environmentalists. This move would legalise Jolshiri Abashan housing scheme of the Army in Rupganj, Protyasha of retired government officials (admin) on the Turag in Tongi, and portions of Bashundhara housing project in Baridhara. The Protyasha project and the portion of Bashundhara project had been declared illegal by the High Court in June 2011 along with 75 other real-estate projects and the government was asked to scrap the projects and remove all illegal developments done there. These would be built in DAP earmarked residential areas which have been altered to include institutions. The cabinet committees move is being seen as a win for influential real-estate companies and a loss for conservationists, environmentalists and town planners.


Dhaka to seek $4b Chinese loan (bdnews24.com, June 5, 2014)
Dhaka will ask China for loans and aid worth around $4 billion for six major infrastructure and energy projects during the prime minister's visit to China beginning tomorrow. The projects are: a 1,320-megawatt coal-fired power plant in Patuakhali, Rajshahi Wasa water treatment plant project, multilane tunnels beneath the Karnaphuli river, second Railway Bridge in Kalurghat of Chittagong, a rail-network through Chittagong and Info-government project. According to the sources at the Prime Minister's Office (PMO), Bangladesh would also seek China's assistance, along with other countries, in building the $14 billion Sonadia deep-sea port.


Pran, again! (The Daily Star, June 5, 2014)
The European Union has detained an export shipment of local food processor Pran after rat excrement was found in the consignment. The border control of Italy on May 21 refused entry to the shipment containing Pran food items such as noodles, pickles, mango chutney, puffed rice etc, and sent out a warning via the Rapid Alert System for Food and Feed, a notification system operated by the European Commission to exchange information on identified hazards in food items between the member states. The incident comes just seven months after the US Food and Drug Administration detected high levels of lead in Pran's packaged turmeric and asked stores to recall the product.


WTO DG: Try best for duty-free market access (Dhaka Tribune, June 4, 2014)
World Trade Organisation Director General Roberto Azevedo has urged the government to engage with all stakeholders to get duty-free and quota-free market access in the developed and developing world. In the WTO Bali Ministerial last year, it was agreed by everybody that developed and developing world would open up their market for LDCs without any duty before the next ministerial.  Many developed countries including members of European Union, Australia and Canada offered duty-free market access for Bangladesh but the biggest economy and the single biggest export destination of Bangladeshi products, the USA, is yet to provide duty-free access.

Return of political crisis will stunt growth: IMF (The Daily Star, June 4, 2014)
The main risk in the near future that would lower economic growth, push inflation up and put pressure on the foreign currency reserve is a resurgence of political crisis according to a report by the International Monetary Fund. The IMF released a report on Bangladesh's macroeconomic situation after approving the installment of the extended credit facility, a financial scheme that helps countries improve their balance of payments. After prolonged political unrest, calm returned following the January 5 elections; activities and domestic demand are expected to pick up and the trend will continue into the next fiscal year, IMF said. IMF has projected that the economy will grow by 6.25 percent in the next fiscal year, while the government aims for 7.3 percent growth.


Govt halts shutdown of 'unsafe' RMG factories (The Daily Star, June 4, 2014)
The Bangladesh government is refusing to shut down garment factories declared unsafe, following a row with independent inspectors over the strength of concrete used in the buildings. Inspectors hired by Western retailers, along with Buet, have been checking the structural safety of factories in the wake of the collapse of the Rana Plaza complex last year that killed 1,138 people. But a dispute has erupted between Bangladesh's Inspector General of Factories and engineers from the group of retailers called the Accord over the concrete strength in the buildings. The inspector general, Syed Ahmed, said his office has refused since April to review or close down six factories, employing hundreds of workers, deemed unsafe after inspections. The factory shutdowns have infuriated Bangladesh's influential garment manufacturers and resulted in more than 10,000 job losses, triggering labour protests and violence.


Mobile handsets to get pricier (The Daily Star, June 4, 2014)
Mobile phone users may see a rise in the prices of new phones in the coming fiscal year as the government is likely to slap a 15 percent value-added tax at the import stage, finance ministry officials said. Currently, a 10 percent customs duty is applicable on the import of mobile phones.The move comes at a time when handset imports are rising with growing numbers of mobile subscribers. The number of mobile phone subscribers rose to 11.56 crore in April from 9.06 crore two years ago, according to data from Bangladesh Telecommunication Regulatory Commission.


Remittance continues to fall as manpower export drops (Dhaka Tribune, June 3, 2014)
Remittance inflow has continued to fall for the second consecutive month in May. According to the Bangladesh Bank data, bankers said the fall is due to decline in manpower export to Middle East – a market from which Bangladesh receives highest remittance. The country received US$1.20bn of remittance in May, marking a decline from the previous month’s $1.23bn. The remittance had dropped by 4.3% in April from $1.27bn in March. The major recruiting countries of Bangladeshi workers in the Middle East are now interested in “only skilled female workers” instead of male ones, said a senior executive of Bangladesh Manpower Export and Training (BMET).


24 RMG units lack fire safety requirements (The Financial Express, June 3, 2014)   
The fire department has asked another two dozen readymade garment (RMG) factories to comply with safety requirements or face punitive actions as part of the government's effort to ensure workplace safety, sources said. It issued notices to the factories when its inspectors found a number of loopholes on fire safety issue. Most of the factories lack standby pumps, fire-proof doors, automatic fire sprinkler system, busbar tracking system, fire hydrant system, and fire extinguishers.

$500m World Cup boost for local garment makers(The Daily Star, June 3, 2014)
Bangladesh garment manufacturers earned at least $500 million in export orders to sew World Cup jerseys for fans across the globe in a major industry boost. The acting head of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said the country's shipment of garments grew around 14 percent this year with World Cup orders playing a key role. BKMEA is a group of around 1,000 factories, which mostly make T-shirts. Bangladeshi plants supply clothing to the sportswear giants like Puma and Adidas and made jerseys for fans of almost all the World Cup's 32 teams, thanks largely to its low-cost reputation.



Revenue collection set to miss target (New Age, June 2, 2014)
The National Board of Revenue is set to miss its revenue target in the 2013–2014 financial year for the second consecutive time, affecting the implementation of development work for fund constraints. The revenue board, which had a big cut in the target for the year, could miss the target because of the sluggish economy, dismal investment situation and poor international trade, analyst and economists said. The government has already scaled down the revenue board collection target to Tk 1,25,000 crore from the original Tk 1,36,090 crore for the financial year. The board will now need to collect Tk 34,296.82 crore in the last two months of the fiscal year to achieve the revised full-year target of Tk 1,25,000 crore.


Restoring confidence, poor infrastructure major challenges: CPD(New Age, June 1, 2014)
The Centre for Policy Dialogue has called for an action plan to boost the declining investment and economic growth. The plan should look to restore investor confidence, undertake and enforce regulatory reforms, enhance service delivery capacity of institutions, take advantage of global market integration and address the ever-increasing infrastructure demands and political uncertainties. The observations were disclosed on May 31 at a press briefing on the think-tank's analytical review of Bangladesh's macroeconomic performance for the outgoing fiscal year. The analysis focused on five broad issues: overall macroeconomic scenario, public expenditure and its financing issues, power sector development and exports.


Europe should stick to reform path to secure growth (The Financial Express, June 1, 2014)
European policymakers should keep up their efforts in making their economies more efficient despite a strong protest vote in European Parliament elections, the ECB's Yves Mersch said on Saturday. With far-right, anti-EU parties sweeping to unprecedented victories in France, Britain and Denmark and populists gaining ground elsewhere, political leaders face tough questions about the future direction of European integration. Mersch, a member of the European Central Bank's Executive Board, said it was essential to move ahead with structural reforms now, to finish what was started in 1999 and make the euro zone work.


Bangladesh to be ‘$100bn trade economy soon’(Dhaka Tribune, June 1, 2014)
Bangladesh is going to be a $100bn trade economy in near future as it is growing up despite the unstable situation in 2013. The International Chamber of Commerce Bangladesh (ICCB) President Mahbubur Rahman also appreciated Bangladesh Bank for making a foreign exchange reserve of over $20bn and stressed the need for creating congenial environment to attract both domestic and foreign direct investment for setting up basic industries, without which Bangladesh cannot sustain its growth momentum and achieve our aim of becoming middle country within next few years.


Steps taken to explore regional export mkts (The Financial Express, June 1, 2014)
The government has taken measures to make a breakthrough in regional export markets to reduce the country's reliance on some selected markets and utilising the optimum potentials of local industries. According to some officials at the Export Promotion Bureau (EPB), the initiative would also help reduce trade deficit of the country with major countries of the region including Pakistan, India, China, Japan and South Korea. The Ministry of Commerce has already taken a set of initiatives regarding the matter. According to the ministry, the initiative would also reduce the country's dependence on some selected markets like the USA, the EU and Canada.


Bangladesh considers export of arms, ammunition (Khabar South Asia, May 31, 2014)
Though "everything but arms" has defined Bangladesh's core export policy for the past 30 years, the Bangladesh Ordnance Factories (BOF) now hopes to change that. The state-owned weapons manufacturer, part of the Ministry of Defence, seeks governmental clearance to sell its line of munitions abroad. If granted, Bangladesh would become the third South Asian Association for Regional Co-operation (SAARC) member (after India and Pakistan) to export arms. For this to happen, the government must amend the country's Export Policy, which currently prohibits exports of munitions. Executive Director of anti-corruption watchdog Transparency International-Bangladesh Iftekharuzzaman, however, feels that Bangladesh should concentrate on poverty alleviation, food security, human resource development and political stability, instead.


India, Bangladesh work together towards boosting border trade (Business Standard, May 30, 2014)
In an effort to uplift the socio-economic conditions of people living on both sides of the border, both countries have been working constantly to develop 'border haats' or markets. Recently, members of Indo-Bangladesh Border Haat Management Committee laid the foundation stone for proposed border haats at Kasba in Tripura. Each border haat will have 25 vendors from each side, and will sell local commodities once or twice a week. The commodities sold in the border haats are exempted from custom duties. India's North East region shares 1,880-km-long border with Bangladesh, and has potential for developing cross-border trade.