Joel Ahmed

https://thefinancialexpress.com.bd/trade/place-import-tax-on-computer-laptop-says-ministry-1650944454 FY 2022-23 Place import tax on computer, laptop, says ministry ISMAIL HOSSAIN | Published: April 26, 2022 09:39:46 | Updated: April 28, 2022 15:43:56 The Ministry of Posts, Telecommunications and Information Technology has proposed imposing taxes on the import of computers and laptops in the fiscal year (FY) 2022-23, in order to facilitate development of local industry. The ministry has recently put forward the recommendation to the National Board of Revenue (NBR) and the Ministry of Finance to discourage imports and encourage local manufacturing and assembling of the devices. The proposal also included providing a 5.0 per cent tax incentive to the local manufacturers and zero tax on the import of basic parts. Talking to the FE about the percentage, Posts and Telecommunications Minister Mustafa Jabbar said, "Whatever the percentage, we want a 25 per cent tax gap between imported laptops-computers and locally manufactured gadgets." It is possible to manufacture computers and laptops locally if proper fiscal policy can be offered to the manufacturers, he said. A number of world reputed companies are ready to set up factories in Bangladesh if the country offers tax benefits to the local computer and laptop manufacturing companies, said the minister. Last year, the ministry proposed a 3.32 per cent import tax on laptop and computer - NBR agreed with the proposal. The issue of imposing taxes on the imported devices has been discussed in a recent meeting of Digital Bangladesh Taskforce, with Prime Minister Sheikh Hasina in the chair. In his regard, the posts and telecommunications minister, who was present in the meeting, said members of the taskforce and the prime minister herself had positively discussed the import tax. The minister expressed hope that the import tax would be imposed from the coming fiscal year. The government introduced budgetary incentives for the local manufacturing and assembling of handsets in the FY 2017-2018 and carried it forward to the FYs 2018-2019, 2019-2020 and 2020-2021. As a result, a total of 15 brands, including global smartphone vendors Samsung, Symphony, Oppo, Nokia and Realme, started production in Bangladesh. These brands produce 85 per cent of the smartphones in the local market and meet 55 per cent of the local demand for both smartphones and feature phones. According to the BTRC, some 26.1 million handsets were manufactured in Bangladesh in FY 2020-21, against 14.9 million in the previous FY 2019-20. On the other hand, some 15.2 million mobile handsets were imported in FY 2020-21 - 4.6 per cent higher than the import in FY 2019-20. Once solely import-dependent, Bangladesh is on track to becoming self-reliant in smartphone production, which already captures a major market share with local manufacturing just after four years of inception. The posts and telecommunications minister said the country now had the capacity to manufacture and assemble locally. One local company now manufactures and assembles laptops successfully, said Mr Jabbar. "So, it is possible for others too," he said, expressing the hope that the government in the upcoming budget would adopt the proposed tax structure. Walton is currently marketing 23 models of laptop, 13 models of desktop, 4 models of monitor along with various models of gaming and standard keyboard and mouse, pen drive and earphone. The prices of Walton laptops range between Tk 19,990 and Tk 79,950. Walton, after assembling at its plant, exports laptops to Nigeria, Bhutan, Nepal and some other countries. The company has an annual target of selling 100,000 units of laptops while it produces pen drives, keyboards and mouses at its plant. Currently, there is no tax on the import of computers which was introduced in 1998.

https://www.tbsnews.net/bangladesh/energy/rooftop-solar-now-popular-choice-industries-cut-power-bills-407666 Eyamin Sajid 22 April, 2022, 01:00 pm Last modified: 22 April, 2022, 02:56 pm Rooftop solar now a popular choice for industries to cut power bills Rooftop solar system offers a ray of light in achieving target despite some shortcomings Heritage Polymer and Lami Tube Ltd, a factory dealing in PVC pipes, fittings and packaging in Narayanganj's Sonargaon, had been paying a big amount of money to Narayanganj Palli Bidyut Samity-1 every month for electricity consumption until it got a solar park on its rooftop last month. The factory's electricity bill has now dropped by around 34% with the 3.161 megawatt-peak (MWp) installed capacity of solar power. In the daytime, the solar system produces electricity from sunlight and feeds the power distribution grid if generation is higher than consumption. On 1 April this year, Akij Group, one of the leading business conglomerates in the country, also set up a 470kW rooftop solar plant at Janata Jute Mills located in Faridpur's Boalmari. Rooftop solar thus comes as a popular choice for industries to minimise electricity cost. As many as 1,703 firms and factories have installed rooftop solar systems under net metering model since 2018 to minimise energy costs and reduce carbon emission. The government aspires to generate 40% of its total electricity from renewable sources by 2041 even though it now produces only 3% from renewables, such as solar, wind and hydro power. The rooftop solar system offers a ray of light in achieving the target despite some shortcomings, among which are a lack of adequate land and a low speed wind, said Mahmood Malik, immediate past first executive director and chief executive officer at Infrastructure Development Company Limited (IDCOL). The authorities are now trying to make use of the on-grid rooftop solar system to increase the contribution of renewable energy to the total energy mix. Power distribution companies are encouraging industrial consumers to set up such projects on unused rooftops. Bikash Dewan, managing director at Dhaka Power Distribution Company, said the company is implementing rooftop solar projects based on a yearly target. Besides, some local renewable energy promoting agencies, such as IDCOL, Rahimafrooz Bangladesh Ltd and Alpine Technologies, have also come forward to expedite the rooftop solar programme under a cheaper but advanced model. Alpine Technologies also provides a flat rate for a contract period of more than 20 years. Being a solar energy solution providing company, Alpine Technologies provides both technical and financial feasibility studies, power output projections, electrical designs, combinations with existing substations, control panels, material procurement, quality control, system designs and detailed analyses, and operation and maintenance. Md Tariqul Islam, CEO of Alpine Technologies, said his firm's model will reduce 30-40% of electricity bills of industrial consumers as the model uses unused or unutilised roof spaces of the industries. "This is one of the finest ideas to reduce the power load of the industry along with rolling back carbon emission and raising the green standard of the industry," he said. He also said returns from investment on installation of rooftop solar systems are very high, and it does not take more than 5 years to get a payback, said Md Tariqul Islam. How an on-grid rooftop solar system works If the rooftop owner connects the facility with the national grid through the net metering system, a billing mechanism that credits solar energy facility owners for adding electricity to the grid, the monthly electricity consumption will decrease and so will the bills. During daylight hours, electricity generated from a net-metered rooftop PV system will go to the national grid if the generation exceeds the consumer's demand. For feeding the national grid, electricity meters will run backwards to provide a credit to users and customers are only billed for their "net" energy use at the end of the month. Solution offered by Alpine Technologies To expedite rooftop solar power, Alpine Technologies offers its services in two methods – Capital Expenditure (CapEx) and Operational Expenditure (OpEx). In the CapEx model, capital investment is done by end-users. It is the most convenient and simplified model where design and implementation are done by Alpine and its international EPC partner, with the end-users bearing the expenditure of the project. On the other hand, under the OpEx model, end-users are liable to bear operational expenses only. To implement any project under this model, Alpine and its international EPC partner will design, implement and maintain the project whereas end-users will just pay a bill at a fixed rate that is lower than the Rural Electrification Board's rate. This rate will be set and will be fixed by signing a power purchase agreement between both parties for 20 years. What holds back expansion of rooftop solar power Infrastructure Development Company Limited, a government-owned non-bank financial institution specialising in financing renewables, said around 5,000 megawatts of electricity can be generated by installing solar panels on the rooftops of readymade garments, textiles and other industries in the country. However, at present, the country can generate only 77 MWp of electricity from 1,691 both on-grid and off-grid rooftops solar facilities. Talking about this limited amount of rooftop solar electricity, Md Tariqul Islam said gas fired-captive power is a major problem in the expansion of on-grid rooftop solar power in industries. Industry owners are reluctant to adopt a no-grid rooftop solar project as gas-fired captive power is the cheapest way of electricity production, he said. "If the government wants to promote renewable energy, it should discourage gas-based captive-power," he added. Apart from this, taxation and policy hindrances are significant reasons behind the slow pace in the expansion of rooftop solar.

https://www.dhakatribune.com/power-energy/2022/03/31/bangladesh-to-get-its-first-wind-power-plant-in-coxs-bazar Bangladesh to get its first wind power plant in Cox’s Bazar The 60MW plant will cost Tk900 crore Abdul Aziz, Cox’s Bazar March 31, 2022 2:20 PM The country's first wind power project is being implemented in Khurushkul of Cox’s Bazar Sadar upazila. State Minister for Energy and Mineral Resources Nasrul Hamid laid the foundation stone of the project on Thursday. The wind power plant would generate 60MW of electricity upon project completion. Besides, there will be another wind park in Inani capable of generating 50MW of electricity, said State Minister Nasrul. State Minister for Energy and Mineral Resources Nasrul Hamid is seen at the inauguration ceremony of a wind park project in Cox’s Bazar on Thursday, March 31, 2022 Dhaka Tribune The director of the project in Khurushkul, Mukit Alam Khan, said the government is constructing the plant at a cost of Tk900 crore. The project will reach completion by December, he said, adding that the electricity generated by this plant will be connected to the national grid after meeting local demand. It is being implemented by US-DK Green Energy (BD) Ltd.

https://thefinancialexpress.com.bd/trade/malabar-gold-and-diamonds-announces-100m-investment-in-bangladesh-1647102321 Malabar Gold and Diamonds announces $100m investment in Bangladesh FE ONLINE DESK | Published: March 12, 2022 22:25:22 | Updated: March 14, 2022 16:58:13 Malabar Gold and Diamonds, one of the largest jewellery retailers in the world, will invest up to US$100 million in the next three to five years, a senior company official announced at the Third Bangladesh Economic Forum that concluded at the Movenpick Grand Hotel in Dubai. Another Dubai-based company, Danube Homes announced its foray into Bangladesh after signing a franchise partnership agreement with Dhaka-based Daffodil Group at the Bangladesh Economic Forum. The partnership agreement will see Danube Homes rolls out multiple stores across Bangladesh, according to a press release. More than 300 delegates comprising of business leaders from the UAE and Bangladesh were present at the Third Bangladesh Economic Forum in which Bangladesh Foreign Minister Dr AK Abdul Momen and Salman F Rahman, advisor to Bangladesh Prime Minister on Investment and Private Industries, delivered the keynote speech. Bangladesh Foreign Minister Dr AK Abdul Momen, in his keynote speech, urged the UAE investors to invest in Bangladesh. The high-profile event also saw presentations by Sirazul Islam, executive chairman of Bangladesh Investment Development Authority (BIDA), Sheikh Yousuf Haroon, executive chairman of Bangladesh Economic Zones Authority (BEZA) and Prof Shibli Rubayat Ul Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC). Salman F Rahman, urged UAE investors to visit Bangladesh and see the new Bangladesh for themselves. President of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) and senior officials of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) led a 75-member delegation to Bangladesh Economic Forum. Among the developments, Malabar Gold and Diamond is currently searching for a suitable location to set up its jewellery manufacturing unit, that to be followed by the opening of its showroom in Bangladesh. “Bangladesh is a very promising market for us. Bangladeshis represent a sizeable customer base amongst our global customer base. We see the demand for quality gold and diamond jewellery is growing rapidly in Bangladesh, which prompted us to enter the country,” Ameer CMC, Director of Finance and Administration, Malabar Gold and Diamonds, said. “We expect faster return on investment in Bangladesh due to low-cost of operation that could result in higher return and increase our global footprint. We believe it is the right time to enter the market.” Adel Sajan, managing director of Danube Group and Sabur Khan, chairman of Daffodil Group, Bangladesh signed an agreement to cement their partnership at the Bangladesh Economic Forum. Announcing their foray into Bangladesh Adel Sajan said, “Bangladesh offers a very promising future and we have decided to move into Bangladesh at the right time with the right partner. “By this summer, we are going to open our first showroom in Dhaka and I hope to open more outlets in Bangladesh as the economy is growing fast, in fact so fast that the per capita GDP jumped four times in just 10-12 years.” Both the deals were facilitated and structured by Bangladesh Economic Form and its founder Saifur Rahman, who welcomed the delegates at the Bangladesh Economic Forum.

https://thefinancialexpress.com.bd/economy/bangladesh/remittance-inflow-in-april-reaches-209b-1651765393 Remittance inflow in April reaches $2.09b Published: May 05, 2022 21:43:13 Bangladesh received $2.09 billion in remittances in April, the highest amount in a single month of the current fiscal year. Bangladesh Bank (BB) published the updated information on Thursday (May 05), reports UNB. According to the sector insiders, expatriates usually send more remittances to the country on the occasion of Eid festival. In its continuation, the flow of remittances has increased since the beginning of Ramadan. Besides, the government is now giving a 2.5 per cent incentive on remittances. According to the BB, five state-owned commercial banks received $354.89 million in April, private commercial banks received remittances of $1612.74 million, foreign banks $7.35 and two specialized banks $34.51 million. Bangladesh received $1.85 billion in remittances in March of the fiscal year 2021-22.

https://www.tbsnews.net/economy/exports-russian-zone-see-29-growth-amid-russia-ukraine-war-402986 Jasim Uddin 14 April, 2022, 12:30 pm Last modified: 14 April, 2022, 02:02 pm Exports to Russian zone see 29% growth amid Russia-Ukraine war When the war started on 24 February, it was assumed that Bangladesh's shipments of export goods would dry up Despite the ongoing Russia-Ukraine war and exclusion of some Russian banks from using the Swift global payments system, Bangladesh's merchandise shipments to the Russian zone have retained growth, thanks to the use of alternative routes and payment channels, exporters say. When the war started on 24 February, it was assumed that Bangladesh's shipments of export goods would dry up because of disruptions in supply chains and payment systems. However, data from the Export Promotion Bureau (EPB) show that the country's export earnings saw about 29% growth to 223.01 million in the markets of Russia, Ukraine, Belarus and Poland year-on-year in March of FY22. The earnings amounted to $173.12 million in the same month of the last fiscal year. Faruque Hassan, president at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, "We are all trying to maintain this market growth through the collective efforts made by stakeholders." The buyers are trying to receive goods for the Russian market through alternative destinations, and they are also using alternative payment methods, he added. Some buyers have withheld orders made for the Russian market, while some others have shifted Russian orders to other destinations. The fashion brand LPP is one such brand that has already shipped some goods to Poland instead of Russia, he added. Pradip Nath, assistant general manager (Compliance & HR) at Interstoff Apparels Ltd, an apparel exporter to the Russian market, said, "We export some products for the Russian market and our shipments are going on despite this war." The firm is conducting business through the Swedish buyer H&M. However, Team Group Managing Director Abdulla Hil Rakib said, "My Russian buyers have already cancelled $3 million worth of orders, which were supposed to be shipped in June-July this year." Besides, some $1.7 million worth of shipments have been deferred to July from April due to the vessel crisis, he also said. If the war is prolonged, it will adversely affect the European economy as it is mostly dependent on Russia, he added. Export growth in Poland is normal as it is a growing market, thanks to a number of Polish buyers, who are witnessing their gradual growth in businesses across Europe. Explaining further, he said the Polish buyer LPP is one of the growing brands. It owns six brands, such as the fashion brand Inditex. Another polish buyer, PEPCO, was established in 2004. Today the brand has over 2,200 stores across Europe, noted Abdulla Hil Rakib, who is also a director of BGMEA. TAD Group managing director Ashikur Rahman Tuhin said the impact of the war will be more visible after 3-4 months as it takes 4-5 months to complete shipments of goods under an order. Russia is the second largest market for the Spanish buyer Inditex, which has already temporarily closed its outlets. Considering the safety of its customers and employees, H&M, the Swedish fashion giant, has temporarily suspended all sales in Russia. Not only H&M and Inditex, but a number of brands temporarily closed their stores in Russia, which was reflected in the exports, said Tuhin. He also said Russian buyers are making payments through Turkey and China, while some others are making payments through Singapore, he added. According to Export Promotion Bureau (EPB) data, Bangladesh's export earnings amounted to $4.76 billion last month, exceeding the $3.54 billion target set for the month. The country's export receipts were $3.07 billion in March last year.

https://www.tbsnews.net/bangladesh/how-frequent-revisions-push-project-costs-benefits-back-seat-406138#.Yl7pQfLyExg.facebook Saifuddin Saif 19 April, 2022, 10:45 pm Last modified: 21 April, 2022, 09:01 am How frequent revisions push project costs up, benefits to back seat Some 35% of the ongoing projects – 640 out of 1,819 – have gone through revisions one or more times over the last decade, ultimately making development work costly Bangladesh is losing out on economic benefits from its development projects due to repeated revisions mainly because of a lack of efficiency of government agencies, poor planning and faulty implementation. https://www.youtube.com/watch?v=F3rp_ixocqw Some 35% of the ongoing projects – 640 out of 1,819 – have gone through revisions one or more times over the last decade, ultimately making development work costly. As an example of how development projects are getting costlier day by day for repeated revisions, this fiscal year's revised projects under Annual Development Programme (ADP) escalated costs to Tk18,53,779 crore – equivalent to thrice the annual budget outlay, according to the Planning Commission. Failed deadlines cause costs to rise Project costs would have been much lower had these projects been implemented within their deadlines, say the people concerned. Some 11 projects under the railways ministry were revised and their costs rose to around Tk66,460 crore from the original Tk43,919 crore, according to knowledgeable sources. There are 58 revised projects of the Road Transport and Highways Division, which saw their costs rise by Tk24,544 crore. Besides, costs of 20 projects of the Directorate General of Health Services increased by Tk13,081 crore. Many other projects under different ministries and divisions also experienced time extension and cost hikes. Inefficiency is a reason Experts link delay in project implementation and cost escalation to a lack of capacity on the part of government agencies. Dr Ahsan H Mansur, executive director at Policy Research Institute, told The Business Standard, "The government agencies have not been efficient in implementing projects even after 50 years of independence. Besides, projects are being taken up without any proper survey, which leads to the multiple revisions." Sometimes, contractors and consulting firms deliberately implement projects slowly. They do so when prices of construction materials, such as rod and cement, go up. But in many cases, project managers and stakeholders prolong project completion in the hope of personal gains, he added. Economist and Researcher Zayed Bakht said, "If a project is not finished on time, it costs more money that could have been used for other development activities. It also puts pressure on the economy." In many cases, it takes a long time to appoint a project director. Similarly, delay in hiring consultants for projects funded by foreign loans hampers project implementation as well, he noted. Land acquisition also causes delay. Besides, designs of many projects need to be changed due to a lack of proper survey, he added. The construction of the rail line from Dohazari in Chattogram to Cox's Bazar and Gundum via Ramu started in July 2010. The project, which was supposed to be completed in three years, was delayed due to complications regarding land acquisition and financing. As a result, project duration was extended for three more years and its costs went up too. Besides, additional land acquisition for the construction of a broad-gauge railway line was also included in the project, which caused the project cost to rise by 874%. For this, the revised project was re-approved in April 2016. The project time was also extended for five years till June 2022. So far, 68% of the project has been completed and an initiative has been taken to extend its time again. Currently, 39 railway projects are under implementation, involving about Tk1,47,000 crore. Among them, 11 projects saw their tenures doubled and Tk22,450 crore more was allocated for them. The Road Transport and Highways Division is currently implementing 198 projects involving around Tk2,85,879 crore. Some 69 projects have been revised at different times and costs of 58 revised projects increased by Tk24,544 crore, while expenditure of 11 projects were reduced by Tk291 crore after revision. Experts say no major road project of the government has ever been completed in one term owing to a lack of proper design and planning. "Projects need revision for updates" State Minister of Planning Shamsul Alam said, "Many projects are revised to meet issues during the implementation period. But the Planning Commission discourages a project revision midway." Sometimes, many five-year projects are revised to make them updated. The government also revises and updates its one-year budget. It is not essentially a bad practice, he added. The state minister further said one of the major problems is land acquisition that takes time. Land cannot be acquired before the original project is approved. "In some cases, we undertake separate land acquisition projects. But it is not possible all the time because if the original project is not approved after the land acquisition, it will be a waste of money," he pointed out. "Delays are deliberate" Communication expert and professor at the Bangladesh University of Engineering and Technology Shamsul Hoque, said, "Consultants and contractors deliberately delayed project implementation in order to increase costs. They capitalise on the lack of capacity of project managers. There is a lack of skilled manpower in all the government agencies as well." He mentioned frequent transfer of project directors, a lack of proper survey, and unplanned project approval by the Ecnec as the main reasons behind the tendency of unnecessary project revisions in the country. "The development that the country has gone through in the last 10 years needs to be evaluated. We must identify the weaknesses and failures; otherwise the financial loss due to project revisions will double in the next decade," said Shamsul Hoque. Litany of delayed project As an example of a slow-moving health project, Kushtia Medical College Hospital Project of the Directorate General of Health Services has been running for more than a decade. The project cost has increased by 40%. Similarly, the project of setting up the third branch factory of Essential Drugs Company, a state-owned pharmaceutical company, in Gopalganj has been running for more than a decade. Initially, the project cost was Tk31 crore, but it has now increased to Tk800 crore. Around 66% of the projects of the health directorate have been revised for different reasons. Out of 31 revised projects of this department, costs of 20 projects have increased by Tk13,081 crore. On the other hand, costs of eight projects were reduced by Tk2,433 crore. The information on three other revised projects could not be obtained. Currently, the directorate general of health services is implementing 47 projects with a cost of Tk63,924 crore. Meanwhile, the Local Government Division has the highest number of 244 projects in the revised ADP among the major ministries and divisions. The current implementation cost of these projects is Tk2,58,000 crore, and its 81 projects were revised one or more times. Besides, 33 out of 80 projects of the Power Division, 20 out of 46 projects of the shipping ministry, 38 out of 114 projects of the water resources ministry, 33 out of 96 projects of the agriculture ministry, and 37 out of 78 projects of the directorate of secondary and higher education were revised.

https://www.tbsnews.net/economy/bangladesh-signs-200m-loan-agreement-aiib-412490 TBS Report 01 May, 2022, 10:50 am Last modified: 01 May, 2022, 10:57 am Bangladesh signs $200m loan agreement with AIIB The Government of Bangladesh signed a loan agreement of $200 million with the Asian Infrastructure Investment Bank (AIIB) on 26 April 2022 to implement the "IDCOL Multi-Sector On-Lending Facility Project". Economic Relations Division Additional Secretary Md Shahriar Kader Siddiky and AIIB Investment Operations Director General Dong Ik lee signed the loan agreement on behalf of Bangladesh and AIIB respectively, said a press release. The objective of the project is to promote infrastructure investment by providing long-term financing to the private sector in Bangladesh. It is aligned with Bangladesh's goal to bridge its infrastructure deficit and achieve sustainable growth, as highlighted in Bangladesh's Perspective Plan 2021-2041. The project will be financed by a loan to Bangladesh, which will be on-lent to Infrastructure Development Co. Ltd (IDCOL). IDCOL will further on-lend the amount to private-owned companies (sub borrowers) in Bangladesh to support eligible infrastructure projects, the press release added. The project will provide IDCOL with additional resources for long-term financing, given the huge market requirement and the need to scale up the availability of long-term financing for infrastructure projects in Bangladesh. The loan will be received in standard terms and conditions of AIIB. The repayment period of the loan is 18 years including 5 years grace period. Payable front end is fee is 0.25% and commitment fee is 0.25% per annum for unwithdrawn amount. Rate of interest of the loan will be 0.60% + the borrowing cost margin (variable) of AIIB.

https://thefinancialexpress.com.bd/economy/bangladesh/bangladesh-bags-highest-679-billion-foreign-aid-in-nine-months-1650765728 Bangladesh bags highest $6.79 billion foreign aid in nine months Jul-Mar debt servicing also swelled to $1.59b FHM HUMAYAN KABIR | Published: April 24, 2022 08:02:08 | Updated: April 27, 2022 09:04:13 Bangladesh received a record $6.79 billion in foreign aid in the first three quarters of the current financial year, up 55 per cent from last fiscal's, officials say. In the past fiscal year (FY) 2020-21, external development partners released $4.38 billion worth of assistance during the July-March period. The increased concessional-aid inflow comprised the record- highest fund disbursement by the Asian Development Bank and the Japan government, Economic Relations Division (ERD) officials said Saturday. Out of the total amount of $6.79 billion, according to ERD data, the ADB alone supplied $1.91 billion and Japan $1.57 billion. Besides, the largest multilateral development partner-the World Bank-also disbursed $834.55 million while Russia $971 million during the period under consideration. The partners also confirmed a significant amount of medium- to long-term loans and grants by signing deals worth $5.43 billion. A senior ERD official said aid supply swelled for impressive funds from the second-largest multilateral partner, ADB, the largest bilateral donor, Japan, and some other donors in the first quarter. "We are expecting more than $9.0 billion of total foreign assistance at the end of FY 2021-22," he added. Out of the aid disbursed so far in the current fiscal, Dhaka received $6.61 billion in loans and $180.81 million in grants. The external development financiers made a commitment for $5.43 billion in the first nine months of FY22, up $1.42 billion from the same period in FY21. Of the commitment, they confirmed $5.26 billion in loans and $166.37 million in grants. Bangladesh's debt servicing swelled during the July-March period as the country paid $1.59 billion. Out of the repayment sum, $1.18 billion has been paid as principal amount and $411.65 million as interest for the outstanding loans.

https://www.tbsnews.net/bangladesh/energy/bapex-finds-new-gas-reserves-sylhet-410154 TBS Report 27 April, 2022, 09:25 am Last modified: 27 April, 2022, 02:48 pm Bapex finds new gas reserves in Sylhet A new gas reserve has been found in an abandoned well at the Kailash Tila Gas Field in Sylhet. The state-run energy exploration company, Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), made the discovery in Well No 7 recently. Bapex is expecting to yield some 15 million cubic feet of gas every day from the new layer. Gas is being extracted from the well for the last two days on an experimental basis at a pressure of 2,700PSI, a Bapex official, seeking anonymity, confirmed to The Business Standard. He said that Bapex is hopeful to start commercial production from the well very soon as it still has all the infrastructure from the previous expedition. It has been learned that Well No 7 of the Kailash Tila Gas Field was declared abandoned in 2017. There are total seven wells in the gas field in Sylhet. Around 29 million cubic feet of gas is being produced from the currently operational (two) wells. Gas was found in the Kailash Tila Gas Field in 1962. However, production started in 1983.

https://www.tbsnews.net/bangladesh/pm-speedy-enation-law-introduce-universal-pension-scheme-372247 Abul Kashem 17 February, 2022, 06:45 pm Last modified: 20 February, 2022, 11:14 am Universal pension finally takes shape The scheme with as low as Tk100 monthly deposit will be available from FY23 The government is finally going to introduce the much-anticipated pension scheme in the private sector from the fiscal 2022-23 after eight years since the welfare initiative came into discussion to ensure financial security for all classes of senior citizens. Citizens aged between 18 and 60 will be able to enrol in the scheme and pay a fixed monthly fee, as low as Tk100, to the pension fund. The fee can be paid through all online methods, such as mobile financial services and agent banking. An aspirant pensioner will have to continue regular payments to the fund for at least 10 years after signing up. However, the enrolment in the private sector pension will not be made mandatory, according to a strategy paper on the formulation of a universal pension scheme presented to Prime Minister Sheikh Hasina on Thursday. Alongside a one-time payment, a senior citizen, after his retirement at 60, will get a pension per month as per his contribution to the fund in their entire lifespan. If an enrolled pensioner dies, their family members will get pension benefits. The government will invest the money deposited to the pension fund in treasury bills, bonds and profit-making infrastructure development projects, which will reduce dependence on bank borrowing. The returns from such investments will be added to the fund. Besides, the government will also contribute to private sector pensions though the percentage has not been determined yet. Once the pension scheme comes into effect, the government will cut down on its allocation on several social safety programmes, such as old-age allowance, and transfer the amount slashed to the pension fund. After the universal pension system is in full swing, it will also be extended to those employed in government services. The finance ministry hopes that the pension programme will be fully implemented by 2025. Those who are currently in government services and those who will join the services before the introduction of the universal pension, will get pensions from the government as before. The government will decide a timeline from which year the scheme will be effective for those entering government services. For government employees, the maximum monthly gross pension has more than doubled over the past one decade. On top of this, a 5% increment is being added every year. Following the death of pensioners and family pensioners, their minor children, unmarried daughters and children with disabilities are getting lifelong pension benefits. But there are no institutional financial benefits for private sector employees and for their children after their retirement from jobs. According to the latest Labour Force Survey, the number of employees in the private sector currently stands at 5.85 crore, while the number is 22.89 lakh in the public sector. Even though a few of those who do formal jobs in the private sector get contributory provident fund and gratuity benefits, those working in the informal sector do not get any retirement benefits. After 2040, when the current demographic dividend will be over, the number of such elderly people will increase several times. Bangladesh is still a young country according to the age structure, but it is ageing fast and poised to enter the official stage of an ageing nation by 2030. According to the eighth Five Year Plan, the number of people aged 60 and above may reach over 40 million in 2050 from only 10 million in 2020. Thus, each of the next three decades may be associated with 10 million additional elderly citizens. Senior Finance Secretary Abdur Rauf Talukder placed the strategy paper before the prime minister on Thursday. Finance Minister AHM Mustafa Kamal, Planning Minister MA Mannan, PM's Principal Secretary Ahmad Kaikaus and other high officials were also present on the occasion. In the strategy paper, the Finance Division has highlighted the introduction of the universal pension scheme with three main goals. They are ensuring the financial security of the working population in old age and thereby keeping their standard of living above the poverty line; increasing the low-income population's savings tendency and ensuring their welfare by bringing them under a sustainable and well-organised social protection zone; and encouraging capital accumulation by consolidating small savings and contributing to the country's economic development by converting it into investment. According to a press release issued by the finance ministry, the strategy paper has been formulated in the light of the PM's promise to the citizens of the country in her government's election manifesto of introducing a universal pension system. The prime minister already directed the Finance Division to take initiative for enactment of a law on an emergency basis to form a universal pension authority, which will work on introducing formal pension benefits for everyone. According to officials at the Finance Division, as per the strategy paper, the universal pension scheme was supposed to be introduced from FY24, but the Prime Minister's Office directed making it effective from the next fiscal year. For this, the finance ministry will complete all work on enacting a law and related regulations within the current fiscal year, they noted. The pension authority will be a completely IT-based institution and will manage the scheme. The PMO will officially announce the pension scheme once the strategy paper is finalised as per the prime minister's instructions. Seeking anonymity, a Finance Division official told The Business Standard that everyone must use a national identity card to be included in the universal pension programme. How universal pension scheme made the rounds In April 2014, the then finance minister Abul Maal Abdul Muhith spoke of introducing a pension system in the private sector for the first time during a pre-budget meeting with representatives of non-government organisations. In his budget speech in June that year, he made an announcement in this regard and asked the Financial Institutions Division to finalise the pension scheme. He reaffirmed his commitment in the following years and announced the launch of a pilot project to introduce a pension scheme for the employees of private banks and corporate organisations in 2018. He also announced introducing a universal pension system from 2021. But after the first announcement, two years passed because of a dispute over which department of the finance ministry would run the pension programme. Over the next two years, a team led by an additional secretary of the Finance Division toured various provinces of India and gave a presentation in 2016 on how to launch the programme. The initiative came to a halt when the head of the team, former additional secretary ARM Nazmus Sakib, was transferred to the Office of the Chief Controller of Imports and Exports in 2017. He went on pre retirement leave (PRL) in 2019. In 2020, an initiative was taken to prepare the concept paper by employing Nazmus Sakib on an outsourcing arrangement, but that did not happen due to the outbreak of the novel coronavirus. Pointing out that introducing a pension system for the massive workforce of around six crore is a daunting task, the officials at that time said a lot of preparation, including building institutional and technical infrastructure, hiring foreign consultants, had to be done to start work on it.

https://www.tbsnews.net/economy/foreign-investors-turn-away-due-comparatively-high-tax-bangladesh-bida-369046 TBS Report 10 February, 2022, 06:20 pm Last modified: 10 February, 2022, 08:06 pm Foreign investors turn away due to comparatively high tax in Bangladesh: BIDA Bangladesh Investment Development Authority has proposed to reduce the corporate tax rate for non-listed companies from 30% to 28% Foreign investors balk at the idea of investing in Bangladesh due to the higher tax rates here compared to the competing countries, said the Bangladesh Investment Development Authority (BIDA). To attract foreign direct investments (FDI), BIDA has proposed to lower the tax rate in Bangladesh as compared to the competing countries. "Corporate tax rate is an important issue in new investment proposals. Before investing in Bangladesh, foreign investors consider the tax rates of neighbouring competing countries. Interested investors refrain from investing in Bangladesh considering the high tax rates here," said Shah Mohammad Mahboob, director general of BIDA, in a pre-budget discussion on Thursday. "The overall burden of corporate tax rate in the country stands at 40-45% due to other taxes including advance income tax and source tax, while the average global corporate tax rate is 21-24%. It is 20% in Vietnam, 25% in Indonesia and 24% in Malaysia," said the BIDA director general at the meeting held at Revenue Building at Segunbagicha in the capital. He proposed to reduce the corporate tax rate for non-listed companies from 30% to 28% in the next budget. BIDA has also called for bringing tech giants, such as Facebook, Google or Amazon, under corporate tax. At present these companies are only paying VAT. Apart from BIDA, Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), and Business Initiative Leading Development (BUILD) made various proposals at the meeting. Contradicting the business associations, National Board of Revenue Chairman Abu Hena Md Rahmatul Muneem, who chaired the discussion, said corporate tax is relaxed to a great extent in the country. Addressing BIDA, BEZA, and BEPZA, he said, "You are all proposing to reduce corporate taxes. I did not expect this from you." "Sometimes, tax exemptions are given for such a long time that investors' activities often end within that period," he added. Senior NBR officials were also present in the discussion.

https://www.tbsnews.net/bangladesh/bangladesh-interested-sign-fta-big-economies-south-america-369388#.YgYqH0tpHSk.facebook UNB 11 February, 2022, 03:10 pm Last modified: 11 February, 2022, 03:18 pm Bangladesh interested to sign FTA with big economies of South America Bangladesh, Brazil to strengthen bilateral economic cooperation Bangladesh has shown interest in signing a free trade agreement (FTA) with Mercosur, an economic and political bloc of the big economies of South America consisting of Argentina, Brazil, Paraguay and Uruguay. Highlighting Bangladesh's strength as the second largest RMG producer and world-class pharmaceutical manufacturer, Bangladesh Ambassador to Brazil Sadia Faizunnesa has sought Brazil President Jair Messias Bolsonaro's support to negotiate the FTA with Mercosur. The Brazilian President instructed Brazilian Foreign Minister Carlos Franca to start working towards strengthening bilateral cooperation, including trade and agriculture, according to the Bangladesh Embassy in Brazil. The Brazilian President promised his support in further enhancing the trade relationship with Bangladesh. Earlier, Bangladesh Ambassador to Brazil Sadia Faizunnesa presented her letters of credence to the President of Brazil on Thursday. Mentioning Brazil as one of the largest democracies in the world, President Bolsonaro said his government is eager to strengthen its relationship with all friendly countries, including Bangladesh. Ambassador Sadia Faizunnesa conveyed the warm greetings of the President and Prime Minister of Bangladesh to the Brazilian President. On behalf of the Prime Minister, she invited the Brazilian President for an official visit at his convenience to commemorate the Golden Jubilee of Bangladesh. The Ambassador also briefed the Brazilian President about the celebration of the birth centenary of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman. Ambassador Sadia Faizunnesa described the recent socio-economic development of Bangladesh that took place under the prudent leadership of Prime Minister Sheikh Hasina. The envoy also discussed important aspects of Bangladesh-Brazil relations with the Brazilian President and assured the Brazilian President that she will work to explore the untapped potential. She requested President Bolsonaro for his support to further expand the trade, economic and agriculture cooperation between our two countries. The Brazilian President was delighted to learn about the popularity of the Brazilian football team in Bangladesh. The Ambassador said Bangladesh looks forward to deeply engaging in a multitude of ways with Brazil and to gain a thrust momentum in the partnership there is no alternative to an exchange of VVIP visit. President Bolsonaro was enthusiastic about visiting Bangladesh, and he promised that his government would continue working with Bangladesh to further strengthen the friendly relations between the two countries. During her departure from the Planalto Palace Ambassador Sadia Faizunnesa received a guard of honour. Immediately following the ceremony, the Ambassador returned to the chancery and paid homage to Bangabandhu Sheikh Mujibur Rahman by placing a floral wreath at the portrait of the Father of the Nation.

https://www.tbsnews.net/economy/foreigners-pay-25-tax-against-outward-remittances-368713 TBS Report 09 February, 2022, 10:15 pm Last modified: 10 February, 2022, 01:13 pm Foreigners to pay 25% tax against outward remittances if the foreign businesses violate the regulation, an additional 2% simple interest charge will be applied monthly The Bangladesh Bank has asked foreign individuals and business entities who are providing services in Bangladesh to pay 25% tax against their income before repatriating it as outward remittances. The central bank's Foreign Exchange Policy Department instructed all the dealer banks through a circular issued in this regard yesterday. According to the circular, if the authority finds irregularities in repatriating income, then an additional 2% simple interest charge will be applied monthly, apart from the existing 25% tax on income. The circular enclosed a letter from the National Board of Revenue (NBR). According to the NBR letter, in case of a requirement to remit the whole of a foreigner's income, a new calculation needs to be made considering the rate of applicable tax. As per the new calculation, if a foreigner wants to repatriate Tk100 income, the authority will deduct Tk20 as tax and send Tk80 as outward remittance. But, if a foreigner wants to send the whole of Tk100 abroad, then he will have to pay Tk25 separately as tax, said the NBR.

https://www.tbsnews.net/economy/four-firms-get-nod-invest-abroad-365731 Abbas Uddin Noyon & Sakhawat Prince 02 February, 2022, 10:55 pm Last modified: 03 February, 2022, 10:46 am Four firms get nod to invest abroad The Bangladesh Bank has given permission to four private business entities to invest $10 million in foreign countries, in a major leap forward for reining in capital flight alongside easing global marketing of local products. One of the permitted companies, Square Pharmaceuticals Limited, a subsidiary of Square Group, will invest $1 million in The Philippines, opening up an opportunity for the company to gain a foothold in the import-dependent $6 billion pharmaceutical market – the third largest in the Asean region. Without getting registered with the Food and Drug Administration of the Philippines, no companies with their own brands can directly market medicines in the destination. So, Square needs to resort to a third party for that. Mohammad Habibuzzaman, company secretary at Square Group, said the investment plan in the Philippines is in its infancy. They will establish a new company under the name of Square Pharmaceuticals Limited Philippines. The whole thing is now at an early stage. Earlier, Square Pharmaceuticals Ltd, the domestic pharma giant, constructed its manufacturing plant in the Kenyan capital Nairobi at a cost of $17 million in 2017. All necessary infrastructure is also ready and the manufacturing will start soon. Square looks to get hold of the $30 million drug market in Kenya and five other East African countries – Tanzania, Rwanda, Burundi, Uganda and South Sudan – and fulfil the unmet demands of medicines in those countries. Renata Pharmaceuticals, is going to invest $2 million in Ireland as part of increasing the paid-up capital in its already established subsidiary. The approval for this equity investment will allow the drug-maker to sell its medicines directly instead of hiring a third party. Besides, Renata will also make an investment amounting to $5 million in the United Kingdom for the same target. Seeking anonymity, a company official said, "We have already set up subsidiaries in the two countries to directly sell our manufactured drugs in the markets. But not having enough equities for business expansion, we have to have our sales done by a third party by paying 10%-30% commission." Apart from the two drug makers, ACI Pharmaceuticals, with the central bank's permission on a case-to-case basis, invested $100 million in 2015 to grab a huge drug market in the United States. Earlier, in 2014, Incepta Pharmaceuticals was allowed to invest outside the country. The company was supposed to form a joint-venture company in Estonia initially. But the approval is the only thing they got out of the effort because of tough conditions imposed by the government. Another company that secured the seal of approval is Bangladesh Steel Re-Rolling Mills Ltd (BSRM) will invest $0.5 million to enhance its paid-up capital in its existing subsidiary in Hong Kong. Shekhar Ranjan Kar, chief financial officer at BSRM Group, said, "We have set up the subsidiary mainly to procure raw materials from China. But we could not do that because of low capital." The barrier has now been removed as a result of equity investment approval. There is also an opportunity to export goods to those regions through this subsidy, he added. In 2016, the Bangladesh Bank gave approval to BSRM for investing in the steel sector in Kenya. Subject to fulfilling some conditions, the company was permitted to invest $4.6 million from its balance in the export retention quota to build a factory in the country. Besides, Colombia Garments Limited, a subsidiary of M&J Group - a leading global manufacturer specialised in jeans production, was given permission to invest $1,5 million in Hong Kong for procurement and business promotion. The companies that failed to secure approval are Sonargaon Seeds Crushing Mills Ltd, a subsidiary of Meghna Group of Industries and Bangladesh Venture Capital Limited. The Sonargaon Seeds Crushing Mills wanted to invest $25,000 to set up a subsidiary in Singapore to expand its business, reduce risks in the supply chain, procure raw materials at affordable prices and deliver goods to customers at even lower prices. In its application to the central bank for investment abroad, the company said the seed crushing company does not have its own Export Retention Quota Account. So, they want to take this investment in the name of Tasnim Chemical Company belonging to the same group. The mill started commercial operation in 2020, which has only one year of export experience. On the other hand, Venture Capital Limited sought permission to invest $10,000 to acquire 0.85% stake in BrioAgro, a Spanish agro-tech based startup. On 27 January, the central bank in a gazette notification permitted Bangladeshi businesses to make overseas equity investments, subject to an adequate balance in their export retention quota (ERQ) – a portion of export earnings they have saved as foreign currency. The number of Bangladeshi companies that have investments abroad now stands at 18, with a fresh permission to a new company - Colombia Garments Limited. Performance of businesses abroad Sparrow Group, a Bangladeshi apparel exporter, invested in Jordan in 2007 by forming a joint venture company with one of the leading Indian garment manufacturers. Some 1600 Bangladeshi and 500 local people are now working in the factory with an annual turnover of $70 million. Akij Group, one of the leading private sector conglomerates in the country, took over a Malaysian company named Robin Resources for $20 million. The company fetched a good return from the investment. Sk Bashiruddin, managing director of Akij Group, said they did not face new challenges in running the business as they acquired an old company. The return on the equity investment is satisfactory. At present, more than 500 people are working in it. In a bad example, the DBL Group set up a garment factory in Ethiopia's Tigray region to cash in on the country's duty-free access to the US market, low prices of land and cheap labour in 2018. But conflict in the region in 2020 forced them to bring back its workers from Ethiopia after closing the factory. A reopening is still uncertain as the country's civil war rages on. In 2013, MJL Bangladesh Limited, as the first Bangladeshi company, formed a joint venture with a Myanmar-based petroleum company and invested $5.1 lakh in the neighbouring country. The company made good profit Initially. But a few years later, MJL started facing losses owing to the increasing political unrest in Myanmar, frequent policy changes and lack of accountability. Eventually, the company came back home by closing down its business in 2020 after suffering a massive loss.

https://www.tbsnews.net/nbr/business-recovery-drives-vat-collection-large-taxpayers-365281#.Yfls_h5tYXE.facebook Reyad Hossain 01 February, 2022, 11:20 pm Last modified: 02 February, 2022, 09:11 am Business recovery drives up VAT collection from large taxpayers https://youtu.be/9vi2mA56LQA Seven out of top 10 sectors under the large taxpayers unit (LTU) posted a 20% growth in VAT payments in the first six months of the current fiscal year, thanks to a strong rebound of businesses from pandemic-induced losses. The sectors are cigarettes, banking, pharmaceuticals, gas, electricity, beverage and water supply. Collection from three other top VAT-paying sectors – telecom operators, soap and cement – witnessed a negative growth. When it comes to company-wise contribution, the overall VAT mobilisation from 110 large companies grew by 15% to around Tk25,000 crore in July-December, although 42 of them fell short of what they paid during the same period a year ago, according to the LTU-VAT of the National Board of Revenue (NBR). But VAT generation from LTU-listed companies, which account for 50% of the total collection, failed to meet the target by around Tk1,400. The NBR set a target to collect 1,29,000 crore in the form of VAT, while its revenue mobilisation goal was set at Tk3,30,000 crore for the current fiscal year The gas sector topped the list of VAT payment with a whopping 168% growth, followed by the banking sector 25%, cigarettes 16%, pharmaceuticals 11%, electricity distributors 10%, water supply 3% and beverage 2%. https://publisher.tbsnews.net/sites/default/files/styles/infograph/public/images/2022/02/01/vat-info.png?itok=pKjnM_rE&timestamp=1643736015 On other hand, VAT collection from mobile operators amounted to Tk4,216 crore, down by 4% year-on-year, while the collection from Unilever's soap and nine cement companies fell by 13% and 10% respectively. Wahida Rahman Chowdhury, commissioner at the LTU-VAT, told The Business Standard, "We are now trying to know the reasons why VAT collection in the telecom and cement sectors fell, and we will further enhance audits in these companies." According to LTU-VAT sources, more than half of the VAT collected comes from the cigarette sector, followed by mobile phone operators, banks, medicine, gas and other sectors. Grameenphone pays the highest amount of VAT among telecom operators. According to the NBR, Grameenphone's VAT payment dropped by 4% and Robi's by 3% in July-December of FY22, while collection from Banglalink rose by 4%. An analysis of GP's financial statements shows that in the first half of the current fiscal year, the mobile operator's revenue increased, but profits decreased. Contacted, Md Hasan, head of External Communications at Grameenphone Ltd told TBS, "As part of our continuous efforts to resolve pending disputes with the National Board of Revenue, GP had some one-off payments for the final settlement of some issues during the first half of the fiscal 2020-21, which resulted in higher payments than in the same period of fiscal 2021-22." Shahed Alam, chief of Corporate and Regulatory Affairs at Robi Axiata Limited, said when the supplementary duty on mobile phones increased in the budget for FY20, a huge number of Robi SIMs were already in the market, resulting in an increase in VAT collection from Robi at that time. On the other hand, this year VAT payment fell on account of low SIM sales, triggered by some restrictions imposed by the NBR, and because of some adjustments of customs duties and other taxes levied at the import stage. He, however, said despite a fall in VAT collection from Robi, the overall collection of income tax and duties increased in the first six months of FY22. Talking about a fall in VAT collection from Unilever, NBR sources said the company saw their sales drop in the first half of the current fiscal year. Besides, the adjustment of tax rebate is another reason for a decrease in the company's VAT payment. However, Zahidul Islam Malita, finance director at Unilever Bangladesh Limited, told TBS, "The revenue, including VAT and supplementary duty, collected from our company has marginally increased in the first six months of the current fiscal." Mohammed Amirul Haque, managing director of Premier Cement, told TBS that in the second half of FY21 (July-December), the cement sector's overall sales sector did not go well. That is why the VAT collection from it decreased.

https://www.thedailystar.net/business/economy/news/mcdonald-steel-first-begin-production-2951746 BANGABANDHU SHILPA NAGAR McDonald Steel first to begin production Jagaran Chakma Tue Feb 1, 2022 12:00 AM Last update on: Tue Feb 1, 2022 02:07 AM The office of Bangladesh Economic Zones Authority in Bangabandhu Sheikh Mujib Shilpa Nagar in Mirsarai, Chattogram, where the first factory’s operations started on January 25. The photo was taken on Saturday. Photo: Rajib Raihan Bangladesh's largest industrial enclave, Bangabandhu Sheikh Mujib Shilpa Nagar, in Mirsarai, Chattogram, finally witnessed the start of operations of its maiden factory last week. McDonald Steel Building Products started the trial operation of its manufacturing plant at the shilpa nagar on January 25. Another seven industrial units including that of Asian Paints Bangladesh and Nippon & McDonald Steel lndustries will start running one after another by December this year, Abdullah Al Mahmud Faruk, the shilpa nagar's project director, told The Daily Star. But that hinges on the pandemic situation getting better, he said. Nippon & McDonald Steel lndustries, a joint venture of Japan's Nippon Steel Corporation and Bangladesh's McDonald Steel Building Products, have engaged Japanese expert to start testing out their machinery. Initially, the two companies have agreed to invest $59.19 million, or nearly Tk 500 crore, in phases to establish the plant. The two factories of McDonald will collectively create employment for about 2,500 people. In case of Asian Paints Bangladesh, it is their second manufacturing unit which is expected to go into operation within one or two months, according to sources at Bangladesh Economic Zones Authority (Beza). The official inauguration will be held as soon as possible once incorporated into Prime Minister Sheikh Hasina's schedule, they said. Besides, eight industrial units are under construction, including that of Berger Paints Bangladesh, Bangladesh Auto Industries and Healthcare Pharmaceuticals, which are likely to start running operations by June next year. According to Beza, the shilpa nagar has drawn investment proposals amounting to $20.13 billion till date -- $19.85 billion from locals and $1.28 billion from abroad. However, the McDonald's new manufacturing unit will take up to one month to begin commercial production of galvanised and prefabricated steel sheets, said Sarwar Kamal, the company's managing director. The machinery was brought from Japan and China. "Nippon-McDonald already invested over Tk 100 crore in their joint venture factory to grab a bigger share of the growing market of steel plates along with economic growth and industrialisation in the country," he said. Kamal went on to say that trial operations of the new unit began through the manufacturing of steel pipes. "Nippon Steel Corporation is a highly compliant and well-renowned company around the world and it sees a good future for the steel sector in Bangladesh," he said. Kamal believes they will be able to cater to the country's demand for prefabricated steel through the new unit, which will benefit the overall industry by substituting imports. The company will import raw materials from China, Japan and European countries while finished products will be mainly used by the local industries. Kamal expects to make annual sales of $20 million in the local market and also plans to export to South Asian countries once the unit becomes fully operational. He said they have a good scope to export steel products to the northeastern states of India as well. Industry insiders said the present annual demand for steel at home was around seven lakh tonnes, with an growth rate of around 12 per cent to 15 per cent.

ময়মনসিংহ ইঞ্জিনিয়ারিং কলেজের শিক্ষার্থী নাহিয়ান আল রহমান এবং তার টিমের তৈরী রকেট উৎক্ষেপনের অপেক্ষায়। বাংলাদেশ সরকারের অনুমতি পেলেই পরীক্ষামূলক উৎক্ষেপণ করা হবে তাদের তৈরী করা রকেটটি।

https://www.tbsnews.net/economy/foreign-aid-release-commitment-surge-h1-fy22-362809 Saifuddin Saif 26 January, 2022, 10:25 pm Last modified: 27 January, 2022, 11:36 am Foreign aid release, commitment surge in H1 of FY22 ERD officials have attributed the increased foreign aid receipts and aid commitments to post-Covid changes in aid priorities Bangladesh witnessed marked jumps in both foreign aid disbursal and commitments for new loans and grants in the first six months of the current 2021-22 fiscal year, mainly riding on Covid-related budget assistance and loans for purchasing vaccines. The country received 83% higher aid commitments year-on-year in the July-December period of FY22, while the amount of assistance released by the development partners in the period was $1.2 billion higher compared to the same period a year ago, according to the Economic Relations Division's latest data. The ERD data show the development partners pledged $4.4 billion in grants and loans in the July-December period of the current fiscal year, which was $2.4 billion in the same period last fiscal year. During this period, they released $4.2 billion worth of assistance. ERD officials have attributed the increased foreign aid receipts and aid commitments to post-Covid changes in aid priorities. Loans given for development projects are released on the basis of project implementation – if the implementation rate is fast, money is also released fast, they said, adding loans for buying vaccines and Covid-related budget assistance, however, are released within a few days after an agreement is signed or commitment is given. The development partners have released more than $1.5 billion in Covid budget support and loans for buying vaccines in the first half of this fiscal year, they added. Ahsan H Mansur, executive director of the Policy Research Institute (PRI), said the government now needs money as revenue collection is slow because of the pandemic. This is why the government is taking more and more budget assistance, and the development partners do not take much time to release budget support, he maintained. He also pointed out that receipts of project assistance are not growing that much. ERD officials said various ministries and divisions have thus far spent only 37% of the foreign aid allocation on various development projects in the Annual Development Programme (ADP) for the current financial year. The amount of foreign aid allocation in this year's ADP is Tk88,024 crore. Because the pace of implementation is slow, the ministries and divisions have proposed to reduce the allocation of foreign aid by Tk17,774 crore in the revised ADP, the officials added. In the first six months of the financial year, the ADB released the highest amount of aid for Bangladesh. The Manila-based development partner freed more than $1.5 billion during the period. Japan disbursed the second highest amount of foreign aid – $817 million – during the period, followed by the World Bank, and China. On the other hand, the highest aid commitments were received from China. After a long wait, the government has signed a loan agreement with the country for the Dhaka-Ashulia Expressway project. China has pledged $1.1 billion in aid for this project. The second highest aid commitments, to the tune of $819 million, were received from the Asian Development Bank, followed by the Asian Infrastructure Investment Bank (AIIB) with $515 million and the World Bank with $500 million. Meanwhile, the rate of loan repayment by the government also saw an increase during the first six months of the current financial year. During the period, the government paid the development partners $1 billion in principle and interest on loans. The volume of repayment was 900 million in July-December last year.

https://thefinancialexpress.com.bd/trade/metro-rails-last-girder-to-be-placed-today-1643253834 Metro Rail's last girder to be placed today FE REPORT | Published: January 27, 2022 09:23:54 https://thefinancialexpress.com.bd/uploads/1643253834.jpg The entire Dhaka Metro Rail elevated structure is set to be viewed from Uttara to Motijheel as the last girder of the Mass Rapid Transit Line 6 (MRT 6) will be placed on Thursday. Sources said the last girder will be placed near the point of the Jatiya Press Club at around 11am making the whole 20.1 kilometres long metro rail structure visible. They also said though the placement of the last girder is a milestone development of the Tk 219. 85 billion project, another shift of the MRT 6 is expected in next April by completing rail track placement work. Officials said civil work of the project has been progressing on schedule with the target to launch the first half of the metro rail from Uttara to Agargaon by December this year. According to progress report till December last year, 74 per cent overall progress was recorded by completing 90 per cent work from Uttara to Agargaon and 73 per cent from Agargaon to Motijheel. Work on electric and mechanical system, depot equipment purchase and rolling stock was also completed by 71 per cent. Except Uttara station, concourse roof, platform roof and steel roof structure of eight other stations of the first half km metro rail have been completed. Officials said 98 span were installed from Uttara to Agargaon while 151 from Agargaon to Motijheel to develop the elevated structure. [email protected]

https://thefinancialexpress.com.bd/economy/bangladesh/16km-road-building-at-safari-park-sees-300pc-cost-overrun-1643164682 16km road building at Safari Park sees 300pc cost overrun FHM HUMAYAN KABIR | Published: January 26, 2022 08:38:02 https://thefinancialexpress.com.bd/uploads/1643164682.jpg Four years have elapsed, but forest department has failed to build a 16-kilometre road at Bangabandhu Safari Park in Gazipur, resulting in a 301-per cent cost overrun. Yet, the Executive Committee of the National Economic Council (ECNEC), chaired by the prime minister, revised the project for third time on Tuesday escalating the cost fourfold, officials said. After the meeting, planning minister MA Mannan told the media that they approved 10 projects, including the third revision of the Bangabandhu Safari Park project. Although forest department has reduced the scope to construct the road in its proposal, insiders say, cost has been boosted to Tk 2.82 billion from the original estimation of Tk 703.2 million. The execution deadline has been extended for one more year up to December 2022. The project, undertaken in January 2017, was programmed for completion by December 2019. However, the department has failed to complete road construction and development of the project in time and the government escalated the cost to Tk 1.61 billion for the first time. The implementer failed again and the government uplifted the cost to Tk 2.39 billion and extended the deadline for another year up to December 2021. Yet, it failed signally. Mr Mannan said the PM exhorted local entrepreneurs outside Bangladesh to invest in fertiliser output with intent to reduce pressure on resources like gas. The ECNEC revised five projects and approved five others fresh at a total cost of Tk 46.21 billion. The ECNEC meeting revised Netrakona-Bishiura-Ishwarganj Road (Z-3710) development (first revision) project at Tk 4.81 billion, construction of Bangladesh Telecommunication Regulatory Commission building (first revision) at Tk 2.62 billion, construction of 16 regional passport offices (construction of revised 17 regional passport offices and vertical expansion of 4 passport offices) (first revision) at Tk 1.28 billion, establishment of Sheikh Hasina Cantonment Barisal (first revision) at Tk 20.30 billion and Bangabandhu Safari Park approach road-widening and other necessary infrastructure development (third revision) at Tk 2.42 billion. The approved fresh projects are flood and riverbank erosion risk management in Padma and Jamuna rivers at Tk 18.03 billion, establishment of six Bangladesh Industrial Technical Assistance Centre in Gopalganj, Sunamganj, Barishal, Rangpur, Jamalpur and Jashore districts project at Tk 11.33 billion, establishment of urea formaldehyde-85 (UF-85) plant at Tk 7.24 billion, agricultural development of Sylhet region through modern technology project at Tk 2.00 billion and climate-smart agriculture and water management (DAE part) project at Tk 1.06 billion. [email protected]

https://www.tbsnews.net/dropped/trade/business-leaders-want-nbr-steps-towards-ease-doing-business-362755 TBS Report 26 January, 2022, 08:35 pm Last modified: 26 January, 2022, 08:40 pm Business leaders want NBR steps towards ease of doing business International Customs Day observed yesterday, 20 entities honoured Business leaders from different sectors have urged the National Board of Revenue (NBR) to take bold steps, including those related to speeding up goods release at seaports, to facilitate doing business with ease in the country. To this end, they have also underscored the need for NBR automation, its collaboration with private sectors, and impediment-free tax-related services. "Tax-GDP ratio should be increased. Simultaneously, keeping businesses and trade operational is also important," said Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). To improve the business environment in the country, the revenue agency must be digitalised first, he told a seminar at a city hotel. The seminar was organised on Wednesday to mark International Customs Day. The FBCCI chief added that the customs authorities under the board should take steps to ensure a quick release of goods at different seaports. The apex trade body leader emphasised more collaboration between the NBR and stakeholders especially in formulating laws and rules for ensuring fairness and their smooth implementation. Agreeing with him, Russell T. Ahmed, President of the Bangladesh Association of Software and Information Services, said the NBR believed businesspeople want to evade tax all the time. "But this is not true." The NBR should cordially deal with private sectors and enhance relations with businesspeople in order to earn their cooperation. Shehzad Munim, managing director of British American Tobacco Bangladesh, agreed and suggested that the NBR widen hassle-free trade facilities for more authorised economic operators. This year's Customs Day has been observed in 183 countries across the globe on the theme, "Scaling up customs digital transformation by embracing a data culture and building a data ecosystem". At the Dhaka event, the Revenue Board, in collaboration with the World Customs Organisation, recognised 20 entities with certificates of merit for their unwavering support in trade facilitation. Of the entities, three are organisations – Benapole's Customs House, Bangladesh Petroleum Corporation and Economic Reporters Forum­ – and the rest 17 are NBR officials. Agriculture Minister Mohammad Abdur Razzaque and State Minister for Shipping Khalid Mahmud Chowdhury also spoke at the event. Razzaque asked the NBR to increase its efforts to prevent money laundering in the name of over-invoicing and under-invoicing. He also urged the NBR officials to emerge free of the issues which have regularly been coming under criticism. "Otherwise, we (people) will continue with the criticism." Speakers on the occasion also discussed different challenges to and potentials of the country in the next couple of years. "Bangladesh is going to face some challenges after graduating from least developed country status. On the other hand, we have huge opportunities for drawing more foreign direct investment," FBCCI President Jashim Uddin said. The government should now emphasise wide-scale industrialisation and employment generation. "Besides, it needs diversification of industries for achieving the annual export target of $300 billion. Only the apparel industry is not enough to meet the vision." NBR Chairman Abu Hena Md Rahmatul Muneem, at the event, vowed to continue his effort for ensuring good governance in the revenue agency. Trade facilitation and digitisation would be his priority, he added. The NBR chief said the tax- GDP ratio of the country was hovering near 9%. "We studied the situation last year and found the ratio could be 16% if the government did not provide tax exemption facilities to different sectors." The exemption declaration from high-ups created pressure on the NBR, Muneem noted. Meanwhile, the customs authorities held another seminar in the port city of Chattogram to mark the day. Md Mahabubuzzaman, director-general of the Customs, Excise and VAT Training Academy, presided over the event at Customs House, with several senior NBR officials present.

https://www.dhakatribune.com/business/2022/01/25/bangladeshi-startups-finally-getting-the-investment-they-deserve Bangladeshi startups finally getting the investment they deserve ShopUp scored investments from Peter Thiel’s Valar Ventures and Prosus Ventures, while bKash scored investments from Japanese multinational conglomerate SoftBank Group Corporation through the purchase of 20% of its shares Zisan Bin Liaquat January 25, 2022 7:46 PM Bangladeshi startups alone bagged $150 million to $200 million investments in 2021, landing almost half of the amount it had received from either venture capital firms or individuals over the past decade, according to industry insiders. Of those, around 75% were scored mostly by three tech firms — ShopUp, bKash and Pathao — with the country seeing its first-ever unicorn being born through the mobile financial service provider (MFS), while the mobile-based retail service provider ShopUp raised $75 million alone. ShopUp scored investments from Peter Thiel’s Valar Ventures and Prosus Ventures, while bKash scored investments from Japanese multinational conglomerate SoftBank Group Corporation through the purchase of 20% of its shares. Pathao, through its ride-sharing, food delivery, and e-commerce logistics, also raised around $35 million venture capital till 2021 while investments raised by Paperfly, Praava, Chaldal and Shohoz were $11.8 million, $10 million, $10 million and $25 million respectively. In between 2016-2021, startup firms raised a total of around $400 million and starting the very first month of the current year, it has also seen funding flow in from both international and local sources. Two local startups, 10 Minute School and Shajgoj have been selected for Sequoia Capital's prestigious accelerator program, from a total of 20 startups from South-East Asia, for this year's Surge Accelerator cohort. Upon completion, the startups will be receiving $1-2 million of seed funding as well several company-building workshops, global immersion trips and support from a network of successful investors and co-founders. The startups will also get company-building workshops, global immersion trips and support from a network of successful investors and co-founders The 20 selected startups will receive a total of $60 million in funding. The founders of these companies will also participate in a 16-week virtual program hosted by Surge, beginning from January 27. With this sixth cycle of Surge, the program has now featured 112 startups with 246 founders and has evaluated over 10,000 companies in the US, Australia, India, Malaysia, Thailand, Taiwan, Bangladesh and other countries. In addition to the seed funding from Sequoia Capital India, the beauty e-commerce platform Shajgoj will also receive funds from the SBK Tech Venture, one of the pioneer tech-focused VC based in Bangladesh. Meanwhile, Green Grocery, a startup that has been catering to the need for safe-organic food through its website and Facebook page, has also recently received investment. Talukder Mohammad Sabbir, founder and managing director of Green Grocery, confirmed the matter to Dhaka Tribune. However, the funding amount was not revealed as of yet. He also informed that a group of young investors, led by M Asif Rahman, founder of ARCom & WPDeveloper, a software services company, have recently invested in Green Grocery. CEO of Bangladesh Angel Network (BAN) Nirjhor Rahman says it is a very interesting time to get involved with and invest in startups in Bangladesh. “Startups are generating and growing revenues, creating strong partnerships with each other and the corporate sector, and garnering pre-seed angel-stage investments much faster and easier than before,” he added. However, according to Rahman, some of the lingering challenges include a lack of liquidity, including follow-on funds, a growing need for more product development and management expertise, as well as creating a compelling story and proposition for big-ticket investors, including foreign angels and venture capitalists, “who can literally invest their capital anywhere”. Speaking about neighbouring markets such as India and Pakistan, he said that there is a flourishing industry of domestic venture capital, particularly in the early stages within the fundraising value chain, often affiliated with local corporates and family offices. “Although more and more Bangladeshi corporations and financial institutions are looking at startups for potential investment, they are still cutting relatively small — $250,000-$500,000 — cheques, or just monitoring the companies,” he explained. “If we can create more domestic liquidity, and through access to that liquidity more and more startups in Bangladesh can start scaling and get to Series A, B, and C, more foreign investors will start looking at Bangladeshi startups, because their minimum cheques are much larger and range in the millions of dollars,” Rahman further said.

Bangladeshi beauty and personal care e-commerce platform Shajgoj has recently secured BDT 21 crore in seed funding from Sequoia Capital India. The money will be used to acquire more customers, open more outlets and offer more international brands on the platform.

https://www.dhakatribune.com/business/2022/01/26/walton-launches-new-model-of-dual-band-wi-fi-router Walton launches new model of dual band Wi-Fi router In the 2.4GHz band, the router can cover 1400-1600 square feet area while in the 5GHz band, the coverage will be 700-800 square feet https://new-media.dhakatribune.com/en/uploads/2022/01/26/walton-router-wr15-1.jpeg Tribune Desk January 26, 2022 4:52 PM Bangladeshi technology products manufacturer Walton Digi-Tech Industries Limited has launched a new model of dual-band Wi-Fi router in the market. The 1200 Mbps router, modelled as 'WR15' comes under the packaging of 'Torongo' brand name, according to a press release. The high-efficient router features four high performance five dBi antennas along with wide area coverage and the router can provide up to 300 Mbps speed at the 2.4GHz band and up to 867 Mbps at the 5GHz band. Engineer Liakat Ali, deputy managing director of Walton Digi-Tech Industries Limited, said that the price of the dual-band router is only Tk2,750. Customers can buy it from all Walton Plaza and dealer points across the country along with e-commerce platform e-plaza and Walcart and they will get a one-year after-sales service on the device. It has multi-user, multi-input and multi-output (MU-MIMO) technology which enables the router to connect more devices at the same time. The Gigabit Ethernet Ports will let users enjoy maximum speed in wired connections. Its advanced Beamforming technology improves wireless reception and reduces interference for stronger, faster and more reliable wireless connections. The device features three LAN and one WAN Gigabit ports which will let users enjoy maximum speed in wired connections. The router has a MAC address filter and black-list facilities for which users can control the access of the internet to selected devices and block unwanted devices. 64/128-bit encrypted protection and the built-in firewall will protect the network from security threats and its Omni-Directional Technology ensures coverage in each corner of the house or office. In the 2.4GHz band, the router can cover 1400-1600 square feet area while in the 5GHz band, the coverage will be 700-800 square feet.