Bangladesh Bank (BB) Governor Dr. Atiur Rahman has urged Indian businesses to utilise Bangladesh’s investment scope like low cost manufacturing base to produce goods for local, Indian, and global markets, and also exploring market access for exports from the country. “India, our closest large neighbor is partnering with us in promoting trade and investment linkages, with much needed investments in railway and other communication infrastructure,” the central bank chief said while addressing a seminar as the principal discussant. The seminar titled ‘India-Bangladesh Relation: Regional Prosperity and Amity,’ was organised by the Rastrabiggan Samity on Friday, according to a BB press release. BB governor also said cooperation in this area has much further to expand and deepen, including in developing new Special Economic Zones (SEZs). “With demographic dividend of large pool of low cost labor force, Bangladesh is now a fertile base for massive volumes of new investments in the areas of manufacturing, infrastructure, education and technology,” the governor explained. He also said: “Under the dynamic leadership of Prime Minister Sheikh Hasina, Bangladesh is already a robustly growing developing economy steadily gaining in macroeconomic stability and external sector strength on transition path to a higher growth trajectory.” Held at Senate Bhaban in Dhaka University, the seminar was attended by a large audience that included academics, experts and policy makers from various government and non-governmental organizations.

Source: https://www.daily-sun.com/printversion/details/48950/Indian-businesses-urged-to-utilise-investment-scopes

Textile millers have urged the central bank for raising its Export Development Fund (EDF) loan limit and extend repayment period to help primary textile sector grow further. Bangladesh Bank should raise the EDF loan limit to $20 million from present $15 million and extend repayment period to 270 days from 180 days now, president of Bangladesh Textile Mills Association (BTMA) Tapan Chowdhury demanded Saturday. The demand came at a seminar titled: ‘Export Development Fund (EDF)- Towards the Growth of Textile Industry,’ organised by BTMA in the capital. Tapan also demanded extension of EDF facilities to weaving, dyeing and printing-finishing sub-sectors of primary textile sector (PTS) for raising the sector’s value addition and competitiveness. “Apart from uninterrupted and reliable supply of energy and power, we need more financial support in the form of credit facilities at low interest rate to import cotton, other man-made fibres, dyes and chemicals in large volume,” Tapan said, adding: “Here EDF can play a significant role.” Established in 1989, EDF is an incentive to the exporters and is intended to facilitate access to financing in foreign exchange for input procurements by manufacturer-exporters. The main objective of EDF is to promote export of non-traditional items manufactured in the country and to meet up the liquidity shortages of export oriented business for import of raw materials. The size of EDF is now $1,500 million. Authorised Dealer (AD) banks can borrow funds in US dollar from the EDF against their foreign currency loans to manufacturer-exporters for input procurements. BB charges LIBOR+1.5% interests on six-month EDF loan disbursements to ADs, while ADs charge LIBOR+2.50% interests from their clients. BTMA president said though the EDF facility is available to spinning mills but because of lack of awareness and knowledge many mills can not avail this facility. Besides, the BTMA member mills using EDF facilities find the existing limit insufficient to meet their actual needs, he added. Because of global cotton price volatility, millers sometimes find it hard to meet their fund demands with low EDF limit, which compels them to take loans from banks at very high interests, the sector leader pointed out. If the issues are addressed properly, Tapan thinks that the country’s whole apparel industry is ready to earn the targeted $50 billion from exports by 2021. At present, Bangladesh is in second position importing around 5.5 million bales of cotton in 20104 valued at $2.56 billion. The industry’s growth rate is 83 percent in a decade.

Source: https://www.daily-sun.com/printversion/details/48948/Textile-makers-seek-extension-of-EDF-loan-repayment-time

Prime Minister Sheikh Hasina on Saturday said a greater connectivity is very vital for the development of the two countries and the region saying that the signing of a slew of deals on that front are examples of two countries commitment to seamless connectivity, reports UNB. “We understand each other’s concerns and priorities. Prime Minister Modi (Narendra Modi) and I agree that a greater connectivity is vital for the development of the two countries and for the region,” said Prime Minister Sheikh Hasina mentioning that connectivity across the region will reduce inequalities maximising welfare gains. She made the remark in her statement at a joint press statement issued on Saturday mentioning that the new trade facilitation measures incorporated in signed agreements would create new opportunities for more trade, investment and business. “We’ve very good cooperation in power and energy sectors.” The Prime Minister mentioned the signing of the Coastal Shipping Agreement, the renewal of the Trade Agreement and the Protocol on Inland Water Transit and Trade, as well as the flagging off new bus services are examples of their commitment to seamless connectivity across the region. Describing the moment as truly a historic moment, Hasina said, “We’re transforming our relationship to a greater” On LBA issue, Hasina said with the exchange of the letters of ratification of the 1974 Land Boundary Agreement, a 68-year-old humanitarian issue comes to a peaceful end. “We’re extremely happy that the land boundary issue has finally been resolved. I appreciate Prime Minister Modi’s leadership in achieving it. It has been possible for his bold leadership” Hasina thanked the people of India and all the political parties in India for their unequivocal support to the agreement. “In this context, I recall with gratitude the historic role of our Father of the Nation Bangabandhu Sheikh Mujibur Rahman and then Indian Prime Minister Srimati Indira Gandhi.” The Prime Minister recognised the contribution of Indian President of India Pranab Mukherjee. “We recall with deep gratitude the enormous contribution of India in our glorious War of Liberation.” She said Bangabandhu Sheikh Mujibur Rahman, in a speech delivered in Kolkata on 06 February 1972 had said, “As for us, we’ll be wanting to cooperate with all concerned for creating an area of peace in South Asia, where we could live side by side as good neighbors and pursue constructive policies for the benefit of our people….” “This visionary statement encapsulates how we look at South Asia. I believe we could collectively achieve greater peace, stability, progress and prosperity for the people in the region which was the dream of our Father of the Nation,” she added. The Prime Minister mentioned that India is certainly Bangladesh’s most important neighbour and one of key development partners. “India made invaluable contribution during our War of Liberation for which we are deeply grateful.” To bring balance in trade between the two countries she said both countries agreed to establish Special Economic Zones in Mongla and Bheramara for India. “We hope this would increase Indian investment in Bangladesh substantially. Today, we have signed a number of bilateral documents, covering diverse areas of cooperation,” she said. These include economic cooperation, trade and investment, security, infrastructure development, education, science and technology, IT and culture. The Bangladesh Prime Minister said cooperation in such a vast area shows the depth, breadth and maturity of partnership for development. “We also discussed the issues of sharing of water of 54 common rivers. We both reiterated our strong commitment to make our borders peaceful and prosperous. We also pledged ‘zero tolerance’ against terrorism and extremism,” she added. The PM said people-to-people contact is the strongest of links. “Together, we decided to open Bangladesh Mission in Guwahati, Indian Missions in Khulna and Sylhet. This again reflects our growing mutual confidence and shared commitment to expand our relationship. We have to translate the Declaration into concrete deliverables. I assure you, Prime Minister, that we are committed to extend full support and cooperation in this journey,” Hasina said adding that her Indian counterpart’s visit has infused a new dynamism and confidence in relationship between the two countries.

Source: https://www.newstoday.com.bd/index.php?option=details&news_id=2413254&date=2015-06-07

Chittagong Metropolitan Chamber of Commerce and Industry in its budget reaction said 1 per cent tax at source proposed in the budget for FY 2015-16 would have a negative impact on exports. Vice-president of the CMCCI AM Mahbub Chowdhury made the comment on the budget proposals. He said the lion’s share of the export earnings comes from the RMG (ready-made garment) sector. So, imposition of source tax on RMG is illogical, he added. RMG owners have shouldered wage enhancement of the workers while garment owners are facing problems adjusting with compliances enforced by foreign buyers, Mr Mahbub said. Huge interest incurred on bank loan, factories run on diesel-run generators due to lack of adequate electricity and political instability have pushed the industry people at their back because foreign buyers offer orders at reduced prices. On the other hand, the ports have enhanced charges threefold, he added. Many factories will face closure if the existing source tax is further increased, he said, adding that this would force many garment manufacturers to cut their workforce. The CMCCI vice-president, however, thanked the government for placing a robust budget with the target of ADP (annual development programme) at Tk 970.00 billion and GDP (gross domestic product) at 7.1 per cent. Former CCCI president Farid Ahmed said this budget is not appropriate for changing lot of 160 million people of the country.  “It is the budget that would make the rich people richer and the poor people poorer. It is the budget from which looters of the society would gain most,” he said in an instant reaction. There is no step in the budget to encourage the rural economy and generate employment for millions of people in rural areas.  “I cannot understand the justification of such a huge budget with a deficit of Tk 890 billion,” he said.

Source: https://www.thefinancialexpress-bd.com/2015/06/07/95602

Primary textile millers sought on Saturday facilities including raising the limit of Export Development Fund (EDF) to $25 million from $15 million and repayment period to 270 days from 180 days. They also demanded extension of the facilities to their other sub-sectors like weaving, dyeing and printing-finishing. Their demands were placed at a seminar on ‘Export Development Fund (EDF) Towards the Growth of Textile Industry’ organised by Bangladesh Textile Mills Association (BTMA) in the city. The seminar was organised to apprise the BTMA member mills of some issues and increase their awareness and knowledge about EDF through interactive discussion. Due to lack of awareness and knowledge many of the member mills cannot avail the facility while many of them find the existing limit insufficient to meet their actual need. Executive Director of Bangladesh Bank was present as the chief guest at the seminar presided over by the BTMA President Tapan Chowdhury. The BB introduced EDF to facilitate import of raw materials of the export-oriented industries at a low rate. And considering the importance of the bulk use of raw cotton by the spinning mills, the central bank has extended the limit to $15 million. Bangladesh is fully dependent on imported cotton to run its spinning mills to produce yarn and with the increasing demand for more imported cotton and cotton price being volatile, many mills find the EDF limit inadequate. Moreover, spinning mills fail to get their export proceeds from the RMG factories in due time because of their reluctance or negligence in giving timely acceptance and subsequent maturity date, causing serious dislocation in the supply value chain, they added. This ultimately affects the member mills adversely in running their production at high cost thereby eroding their competitive edge over other competing countries, they observed. Considering the difficulties faced by the millers, Managing Director of Badsha Textiles Ltd Badsha Mia requested the central bank for raising the EDF limit to $25 million and also the repayment period to 270 days. He also demanded increasing the repayment period to 180 days from existing 120 days for Export Processing Zones (EPZs). Millers also demanded inclusion of C category factories in the EPZs in the EDF as they are local ones. General Manager of the central bank Kazi Sayedur Rahman described different aspects of the fund while presenting his key-note paper. Responding to the demands of the textile millers, he suggested the businesses to apply to the department concerned of the central bank requesting extension of repayment limit. “We can’t open the 270 days repayment limit for all as it will have some adverse impact on some others,” he said adding that the central bank has already allowed such facility on case to case basis. Majority of the fund is being disbursed among the garment makers, he said while presenting his paper. Some 56 per cent of the fund is availed by BGMEA, 21 per cent by BTMA, 11 per cent by BKMEA, 7.0 per cent by accessories makers and 1.0 per cent by leather sector, he added.

Source: https://www.thefinancialexpress-bd.com/2015/06/07/95589

Bangladesh yesterday signed a deal with India to develop two economic zones to bring in more Indian investments and reduce the rising trade imbalance with the neighbour.The industrial enclaves will be set up in Mongla, the country’s second seaport, and Bheramara, Kushtia in five years, Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority, told The Daily Star by phone.He shared the development after signing an agreement with Indian Foreign Secretary Subrahmanyam Jaishankar, marking the two-day visit of Indian Prime Minister Narendra Modi in Dhaka.The Indian Economic Zone will promote Indian investments in Bangladesh, said Modi in his written speech.India becomes the third country after Japan and China to have shown interest in developing economic zones in Bangladesh. Once set up, they will create jobs and give a boost to the economy as it aims to break the 6 percent growth trap.Chowdhury said India will develop the economic zone near the government-sponsored one in Mongla, which is now under construction.India wants over 200 acres of land in Mongla and 477 acres at Bheramara to establish the zones, he added.The zones will be developed with funds obtained from the $2 billion line of credit from India, according to the BEZA executive chairman. “As there will be no uncertainty regarding funds, we expect the zones can be developed in three years.”The government will provide land to establish the zones, which can be set up by leasing it out or through equity participation, he said, adding the details will be finalised based on discussion.“I will prefer equity participation of BEZA in the management of the zones. However, I will have no objection if Indian developers want to develop the zones themselves.”Chowdhury expects the majority of investors in the two economic zones to be from India.Bilateral trade between Bangladesh and India currently stands upwards of $6 billion, with the balance heavily in favour of New Delhi.The government has so far approved 30 public and private economic zones in different parts of the country. Of them, the implementation of Sirajganj, Mongla, Mirsarai, Anwara and Srihatta economic zones is progressing well.

Source: https://www.thedailystar.net/business/two-economic-zones-india-93220

Bangladesh will achieve at least $32 billion export earnings against the target of $33.2 billion fixed earlier for the outgoing fiscal year 2014-15, Commerce Minister Tofail Ahmed said on SaturdayHe said despite having so many bottlenecks in power, energy and infrastructure sectors, the country’s RMG, pharmaceuticals, ICT and automobile industries are moving aheadThe Minister came up with the observation at a breakfast meeting organised by the Dhaka Chamber of Commerce and Industry (DCCI) at a city hotel.During the meeting, the participants also discussed on the topic ‘Bangladesh 2030: Next Billion Dollar Opportunities’.President of International Chamber of Commerce, Bangladesh Mahbubur Rahman was present as guest of honour at the meeting attended by Ambassador of Korea to Bangladesh Lee Yun-Young, UK Deputy High Commissioner, High Commissioner of Pakistan Shuja Alam and Commercial Counsellor Farah Farooq, Commercial Officer of Danish Embassy Saadia Taufiq, Deputy Head of France Embassy Somen Dutta, Second Secretary of Indonesian Embassy Fitri fjandra Prijanti, First Secretary of Russian Embassy Andrei Bankaev, Commercial Counsellor of Turkish Embassy Tulay Uyanik, Consul Attaché of Libyan Embassy Adel A Musa, Director of UK Trade & Investment Ruzina Hasan and Brad, a representative from US Embassy in Dhaka, also attended the meeting.The Commerce Minister informed the meeting that the government was going to establish an industrial park for the ready-made garments (RMG) industry in Munshiganj.He said considering the shortage of land, this government has decided to establish 17 economic zones across the country.Speakers in their observation said Bangladesh is a preferred destination for investment.DCCI President Hossain Khaled in his welcome address said Bangladesh needs to accelerate its investment to GDP by at least 38 per cent from the existing 28 per cent in order to achieve the middle income country status.To set the country as the 30th largest economy in the world by the year 2030 and to achieve a double digit growth, the emerging country needs additional 14 per cent investment of GDP.He also invited foreign investors to invest in this country as we have skilled and easily-trainable workforce, access to global market, FDI-friendly economic zones and attractive incentive packages, among other things.

Source: https://www.observerbd.com/2015/05/31/91773.php

The government has selected 13 firms to conduct required detailed engineering assessment in the readymade garment factories under the ongoing joint inspection programme of the government and the International Labour Organisation. The selection came after factory owners had claimed that they failed to conduct DEA as they failed to reach appropriate firms. Government officials said that the list of the engineering firms would be published on newspapers through advertisement as well as on the web site of the Department of Inspection for Factories and Establishments. ‘Once the list is published, factory authorities will have to conduct DEA within the set timeframe, otherwise they will have to face tough action including closer of the factory,’ Syed Ahmed, inspector general of the DIFE, told New Age. At a meeting on Thursday a taskforce formed to ensure post-inspection monitoring in the RMG factories finalised the list of the firms. The taskforce includes representatives from the government, Bangladesh University of Engineering and Technology and RAJUK. On December 23 last year, the National Tripartite Committee formed two separate task forces with the aim of ensuring post-assessment monitoring of the ongoing government-ILO joint inspection programme in the RMG sector. As per the decision of the NTC, one task force will monitor the post-inspection corrective action plan regarding structural integrity and another to monitor the corrective action plan regarding fire and electrical safety. The task force set standards that a firm must have at least two structural engineers with 10-15 years of experience to be eligible to conduct DEA of the RMG factories and the firm will have experience of conducting at least two DEA in last three years. After setting the standards the task force sought applications from the interested firms. Syed said that they received applications from 22 engineering firms and selected 13 firms through proper verifications. Following the Rana Plaza building collapse on April 24, 2013 that killed more than 1,100 people, the retailers and apparel brands from the EU and North America separately formed Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Workers Safety Initiative. Both the initiatives announced inspection programmes and completed inspection in 2,200 garment factories that produce products for the EU and US buyers. At the same time, the government of Bangladesh and the ILO started a three-and-a-half-year initiative to assess 1,500 factories that have been kept outside the surveys carried out by Accord and Alliance. More than 700 factories have so far been assessed under the government-ILO programme and out of them 262 factories have been recommended to conduct DEA but most of them did not comply with the recommendation, an ILO source said. The DIFE chief said that now (after the selection of the engineering firms) it would be easier for the government to put pressure on the factory owners to conduct the DEA timely. Syed, also the chief of the taskforce, said that the DIFE started to collect information on the factories which had been recommended to conduct DEA but were yet to begin the process.

Source: https://newagebd.net/124741/govt-selects-13-firms-to-conduct-dea/#sthash.yDRxAvLb.dpuf