Monday, October 31, 2011

No army for NCC elections

Hours after troops were due to take positions, the CEC said he did not see the possibility of army deployment for NCC polls.

"Since the troops have not arrived yet, we can assume that there will be no deployment of army," CEC A T M Shamsul Huda told reporters at 6:35pm at his office, reports bdnews24.com.


The Election Commission (EC) officials earlier said that four companies of army would be deployed in Narayanganj at 8am on Friday.


Officer Biswas Lutfur Rahman was quite candid in his response on Friday evening as he said, "Army personnel will not be deployed in the polls."


Soon after the Chief Election Commissioner's announcement, supporters of BNP-backed NCC mayoral hopeful Taimur Alam Khandoker took to the streets in protest.


Taimur alleged that the army was not deployed as the EC was not independent.


Earlier in the day, Selina Hayat Ivy slammed the Commission for not deploying the army from Friday morning, as per its prior announcement.


Awami League-backed candidate Shamim Osman, however, did not say anything in support of or against the Election Commission decision.


UNB adds: BNP vice-chairman Abdullah Al Noman on Friday demanded resignation of the Chief Election Commissioner and his colleagues as they failed to deploy army for the Narayanganj City Corporation polls.


"The CEC had said they would independently execute their decisions, but they couldn't. Even they've failed to deploy army [for the NCC polls]," Abdullah Al Noman told a press briefing at the party central office in the evening.


He said the Election Commission had decided to deploy army for the NCC polls at 6am on October 28 to ensure security of the voters in the face of demand by three mayoral candidates and the people.


"The EC suddenly changed its decision after a meeting today (Friday).


They're saying that they won't deploy army in the NCC as the government didn't cooperate with them," Noman said.


He said the EC claimed that it is unconstitutional that the government did not assist them to deploy army. "If the EC thinks that government's non-cooperation is unconstitutional then it can postpone the NCC polls."


The BNP leader said no Election Commission will be able to hold fair election until this government is there in power.


He demanded the EC change its decision and deploy army in the NCC by Saturday morning.


Accusing the EC of being subservient to the government, the BNP leader said the Commission is executing government decisions on the NCC polls. "It couldn't prove its independent existence in holding any election in the past."


Source: thedailystar.net


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No regular transit thru' Ashuganj port soon

A full-fledged river transit facility through the Ashuganj port is unlikely to be given to India in the 'near future' due to the absence of necessary infrastructure, a senior government official said.


"We are not sure when the regular transit could be started. However, until the necessary infrastructure is developed, the trial run will continue to take place," the official of ministry of shipping told the FE.


The ministry last week organised an inter-ministerial meeting to get an update relating to the preparation for starting regular river transit using the Ashuganj port.


The meeting was told that various problems exist at the Ashuganj port which are barriers to starting regular transit. The problems include the lack of required infrastructure, non-finalisation of transit fee, absence of an office for customs department, no shed for transit goods and lack of necessary arrangement for their security.


Various government departments, involved in the transit activities, informed the meeting of the problems and sought remedies before taking any move to start the regular transit.


Shipping Secretary Abdul Mannan Howlader presided over the meeting which instructed the participants to inform the ministry about the problems in writing within next two weeks. After examining the submissions another inter-ministerial meeting will be convened to resolve the problems.


A core committee has recently submitted a report recommending transit fees ranging from US$ 252 to $ 54,368 for each consignment of cargo using Bangladesh road, river and train routes.


The fees will vary from 2 cents to 11 cents per tonne and per km depending on the route to be used.


Sources said a meeting at the prime minister's office (PMO) recently decided that Bangladesh will set four new conditions before starting regular transit and transshipment. To this effect step has been taken to amend the existing river protocol.


They also said while plying through Bangladeshi territory, Indian ships will be allowed to take service at Sheikhbaria, Mongla, Barisal, Chandpur, Narayanganj, Sirajganj and Chilmari points. The Indian sailors will be allowed to take necessaries like fuel oil, foods and medication from these places.


Officials said that the existing river protocol with India will be renewed next March. Before that necessary amendment may be carried out centring the transit and transshipment.


The Ashuganj port is being used as a transshipment point under the existing protocol which was signed based on the Bangladesh-India trade agreement of 1972.


In April this year India transported over dimensional consignments (ODCs) through the Ashuganj river port to establish a power plant in Tripura state. Later, several trial runs of transshipment of consignments were carried out through the river port.


Source: thedailystar.net


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Sunday, October 30, 2011

C'wealth summit starts in Perth

AppId is over the quota
AppId is over the quota
C'wealth summit starts in Perth
(From left) Prime Minister Sheikh Hasina, Queen Elizabeth II of England, and Prime Ministers of Australia, and Trinidad and Tobago pose for a photo session in Perth, Australia Friday. ? PID PERTH, Oct 28 (UNB): The Commonwealth Heads of Government Meeting (CHOGM) 2011 kicked off Friday with a call for more collaborative efforts by the world community to face the challenges of food security and climate change.

The three-day Commonwealth summit that began at Perth Cultural and Exhibition Centre (PCEC) would work on the theme of 'Building National Resilience, Building Global Resilience.'

The theme reflects the importance of addressing the pressing challenges at multiple levels: as individual states, as members of the Commonwealth, and as part of the global community.

The Head of the Commonwealth, Queen Elizabeth II, who arrived here on October 27 declared the ceremony open at 11 am (local time).

The opening ceremony began with traditional presentation of the Australian indigenous people following the arrival of the representatives of 53 member countries (Fiji's membership remain suspended) on the stage.

Prime Minister Sheikh Hasina is leading a Bangladesh delegation to the CHOGM 2011.

Meanwhile, leaders in CHOGM meet have agreed to a series of reforms to strengthen the role of CMAG in its dealings with serious or persistent violations of Commonwealth political values.

It follows two years of deliberations by Commonwealth Ministerial Action Group (CMAG), which was mandated in 2009 by Heads of Government in Trinidad and Tobago to consider ways of more effectively addressing the full range of violations.

"CMAG noted the widely shared view that it had hitherto been too reactive, and not sufficiently proactive," according to a CMAG report released in Perth, Australia Friday.


Source: thedailystar.net


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Tall promises by contestants with little authority to deliver

The people of Narayaganj City Corporation (NCC) will go for voting tomorrow (Sunday) to elect their mayor and councilors, amid a lot of expectations that many of their long-lingering problems will be addressed by the would-be elected authorities.


Also in areas under other city corporations throughout the country, the expectations of their dwellers from their local government bodies have, likewise, been always high, in view of their problems of wide-ranging nature having been deteriorating in most areas that concern their everyday life.


But the performance of the authorities of city corporations in all places within their jurisdiction continue to be far below what the ordinary citizens do expect, rightly or wrongly, from them, most observers of the state of urban governance system, nay that of the local government bodies said.


No matter whoever wins the Mayoral election in Narayanganj, the situation is likely to be no different from what is now being witnessed all over the country, notwithstanding some differences in leadership qualities and competence existing undeniably between and among the electoral contestant, such observers noted.


Experts in relevant fields and also the existing mayors of most city corporations said the city corporations and municipalities have very little power and also limited organisational capabilities to meet the citizens' expectations.


There has not been any real devolution of power to the city corporation bodies over the past few decades, despite tall promises by all successive governments about delegating more effective powers -- both de jure and de facto -- to such local government (LG) bodies, relevant sources noted.


All such quarters stressed the need for empowering the LG bodies and strengthening coordination among the service-providing agencies for ensuring proper civic and other amenities.


In Narayanganj, over 430,000 people are expected to cast their votes on Sunday to elect the city 'father' and ward commissioners of the country's seventh city corporation, through 163 poll centres, containing over 1,500 booths, set up by the Election Commission (EC) in the 27 NCC wards.


On their part, the electorate there in NCC demanded particularly of the mayoral contestants during the election campaigns to do the needful in the common interests of the dwellers of the city for resolving the long-persisting problems relating to provision of electricity, gas, piped water, updating the poor communication infrastructure that seriously hurt businesses and domestic works, saving the water-bodies including the rivers from pollution and encroachment and ensuring law and order.


The dwellers of Narayanganj do particularly like to see their would-be elected mayor to help construct a bridge over the Shitalakhhya river to connect Narayanganj with Bondar, after winning the electoral race.


All the three major candidates for the NCC mayoral office made 'robust' promises to work for ensuring supplies of utilities, strengthening healthcare and educational facilities, upgrading roads, improving law and order and providing better drainage facilities in the city which is also the home of thousands of small and medium industrial units.


But the critical issue is whether the elected mayor of this city, or for that, matter any other city in the country, do have the power, authority and fund to deliver what the citizens in their respective areas expect of them.


"Civic amenities can not be properly ensured under the existing power, authority and structure of the City Corporation as it does not have enough administrative and lawful power and authority and finance or both -- to do so," Mayor of Dhaka City Corporation (DCC) Sadek Hossain Khoka said.


He said the city corporation should be empowered properly to deal with the growing demands for civic facilities by the dwellers therein.


"There is no magic stick in the hands of any mayor. The mayor has to depend on other service-providing agencies that are under different ministries and authorities to improve traffic management, maintain law and order, ensure adequate supplies of water, gas and electricity," he said.


The Mayor of Chittagong City Corporation (CCC) sought for ways and means to maintain coordination with the other service providers. But he did not succeed much "without a fruitful coordination, most of the civic amenities will remain unmet," said a CCC source


The urban planner Professor Jamilur Reza Chowdhury said the city corporation should be given enough power for all relevant matters that concern the people in their localities. "The government should give its full concentration on efforts to ensure good governance at all levels," he said.


He, however, note the city corporation authorities are also often found to misuse funds given by the government or other development partners. "The existing funds should be utilised properly. Otherwise, nothing can be changed," he added.


"City Corporations often find themselves in a difficult situation to strike a balance between their limited resources and people's expectations," another urban planner said, adding that city corporation authorities will have to maximize the use of their resources.


Former advisor of the caretaker government Mr. Akbar Ali Khan said the country's local government institutions are very weak in Bangladesh compared to most other developed and also many developing countries. "The structure of LG bodies should be properly and effectively strengthened", he added.


Another analyst of the LG system in Bangladesh said, on condition of anonymity, that the country's existing city corporations "are mostly dependent, in areas of funding, on holding tax and a limited other sources of revenues, bodies the grants provided by the central government for carrying out their operational activities."


Such funds, even if used properly without involving irregularities and corrupt practices that are the common feature of most government activities in the country in an uninterrupted sequence since long, can not meet even a modicum of demands of the people in the respective areas under different LG bodies under the present-day conditions, he added.


While underlining the need for enforcing a system of strict monitoring of the uses of funds and for promoting transparency and accountability in an effective manner for all LG bodies including the city corporations, he suggested that avenues for floatation of bonds for raising funds for urban and other local level development activities should also be explored under a system of effective administration decentralization and development devolution.


Source: thedailystar.net


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Saturday, October 29, 2011

Procedures for the licensing of new Banks� can be reduced

The strict rules for the granting of permits for new banks probably are tracked to Bank, as the Prime Minister Office (PMO) be mitigated the problem under 'Pressure from influential circles' ready said official sources.


Prime Minister Sheikh Hasina has sought clarification from Bangladesh Bank (BB) about the rationality of strict regulations for new banks. The Ministry of Finance (MoF) last week said the Central Bank, the Department about their response to the premier queries inform a BB official, a letter to BB.


However, the BB Governor, said changes in the approval of the Board of BB would require.


"MoF has sought with reference to the query of the Prime Minister know some questions relating to the regulations of the new banks and the impact," said Mr Atiur the FE.


"We give explanation on the rationality of the new criteria for new banks," he added.


However, he said he was not under ' print changes in regulations to bring. Changes in the regulations, said meeting of the Board of Directors of BB are approved by the Governor.


Sources at the PMO said Sheikh Hasina was expected to harassed requirements of the paid-up capital of minimum criteria, white lent money and money, which contained issues as emerging Bank also close be mitigated owner, in the regulations of the Government have to bring about change in this respect.


"At least two to three strict conditions are changed are as far as the granting of permits for new Bank is concerned," senior said bureaucrat on the PMO.


In accordance with the requirements for new banks the paid-up capital of the Bank will not be less than Taka 4.0 billion, and the amount of the proposed Bank sponsor directors must be made available. Sponsors contribution on the proposed Bank equity 10 (b) and the contribution of loans by the Bank or non-bank will be net value declared to the tax authorities in the form of IT, that the institutions is not acceptable.


The earlier regulations for the issuance of banking licenses had no strict criteria money tax return, to declare, while there was no bar in borrowing from banks or financial institutions help sponsor amount for a new Bank, said a senior official in the Ministry of finance.


The BB Governor said to PMO and MoF would contain a comparison of current and past regulations along with their clarification.


The last time Bank were new in 1999 and 2000 granted licenses. The country is currently 47 scheduled banks.


Finance Minister AMA Muhith said that the Government would issue new banking licenses on ' political considerations "the criticism was raised."


The BB officials indicated that a total six to eight licenses for new banks are likely to to be this time issued.


Source: thedailystar.net


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Dhaka, Berlin agree to bilateral trade to expand

Dhaka, Berlin agree to expand bilateral trade
An honor talk German Chancellor Angela Merkel to protect during the opening ceremony in the Federal Chancellery in Berlin Tuesday with Prime Minister Sheikh Hasina and review. ? AFP BERLIN, Oct 25 (BSS): Bangladesh Germany today, and agreed to explore further bilateral trade and cooperation in the fields of sustainable development, climate change, health and social security program.

It also agreed that two countries strengthen their present excellent bilateral relations and together various regional and international issues of common interests for mutual benefits of their people.

The agreement was in negotiations between Prime Minister Sheikh Hasina and German Chancellor Dr. Angela Merkel in the official residence of the Chancellor here.

In a joint press conference after the talks said Hasina and Markel, that she have a very open, thorough and fruitful debate on various issues of mutual interests and regional and international issues of common interest.

Markel said Germany very good relations with Bangladesh. She acknowledged the Hasina role in the development of regional cooperation and connectivity in South Asia, in particular India, Pakistan and Myanmar.

Hasina said, "I am happy return with many promises of a great leader and renewed commitment to my people support and cooperation for bilateral, regional and international cooperation."

"The visit is a milestone in our existing relationships," she observed.

As the Bangladesh Prime Minister in the Chancellor's Office arrived, Markel get it.

Hasina was a red carpet reception as an intelligent turned from contingent of the German Empire it provided an honor guard given. National anthems of both countries were to this time played.

The Prime Minister introduced their cabinet colleague Foreign Minister Dr Dipu Moni and Minister of Health Dr. AFM Ruhal Haque of the Chancellor.

Hasina, WSSD, came up with a five day official visit to Berlin on health of the opportunity, with the Chancellor, one of the largest trading partner and a major development partner of Bangladesh in order taken.

In their discussion, the State and their admiration for each other Government reciprocated and together their worry and visions of various regional and global matters, including the fight against terrorism and climate change.

Hasina calls still existing German economic cooperation with Bangladesh and improve German support in sustainable development projects.


Source: thedailystar.net


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WB says BD's growth prospects uncertain,

Bangladesh has cushion not enough fiscal space to a global slowdown and its growth forecast for the year to June 2012 is uncertain, the World Bank, said on Tuesday, reported Reuters.

Problem areas include a growing budget deficit, high and volatile inflation, exceeded the monetary goals, financial sector weaknesses and growing external imbalances, it was said.

The country's year until June 2011 growth rate of 6.7 percent, supported by strong performance in manufacturing and construction sectors and a bumper crop can only maintain according to the World Bank six-monthly economic update will continue if exports grow.

Lower international commodity prices, particularly the oil and food prices, according to the report are what Bangladesh would work for this.

Bangladesh Government is grappling with high inflation and economic growth to 7.0 percent in the year 2011-12, aims to increase exports and inflows of remittances.

Exports, especially clothing, increased by 22 percent year on year in the three months to September with the Fund of residents work abroad by 9.0 percent slower growth than in the previous year.

AFP adds: global economic uncertainty looks set to Bangladesh ambitious plans for 7.0 percent economic growth in the current financial year for the first time, the World Bank said on Tuesday.

The impoverished South Asian country had the growth target-its highest level since the mid of 1970s-in the budget in June, after it drove 6.7 percent growth in the past year presented 2010-11.

The same extension "only repeatedly" said the World Bank can be if exports continue to grow.

Export growth, which crashed to date, 30 percent in the first two months to August to meager 2.3 percent in September as clothing shipments key markets in Europe and the United States lost steam.

"Bangladesh limited travel to cushion the impact of a second global slowdown has, if it happens," said Sanjay Kathuria, the World Bank lead country Economist for Bangladesh.

"Bangladesh balance of payments may affect it by their impact on exports and transfers, pressure on the exchange rate and the increase in economic insecurity, of investment and growth, weaknesses could," the Bank said.

Foreign payments, to make the 10 percent of gross domestic product (GDP) of the country, have advised Bangladesh workers as part of the Arab spring with 40,000 according to Libya alone to a halt.

Production has hit that hard by an energy crunch, by the suspension of new natural gas connections by public monopolies.

Our staff reporter adds: the rate of investment can impact a slow pace of reforms in Bangladesh, such as inadequate energy supply and poor quality of the infrastructure. The changes in trade reforms and weakening of the financial sector may relate to also export growth and investment.

This was shown economic state of the World Bank (WB), published by the bi-annual on Tuesday.

"Improved fiscal and monetary discipline, combined deficits, with stronger efforts to energy and infrastructure vital for the growth of Bangladesh, to maintain", said Zahid Hussain, WB Chief Economist for Bangladesh.

The Washington sees based lenders however a positive inclination in the direction of the Bangladesh economy, as it can give the lower international commodity prices, particularly oil and food, a breathing space to the country of the current fiscal year.

Senior Economist for Bangladesh in Washington WB Central Lalita Moorty said: "it is for Bangladesh on sound macro-economic management to ensure as expansive economic policy could increase risks on the current account and inflation management make more difficult."

In its economic update, the WB said high and volatile inflation, slowdown of remittances in the last financial year, exceeding the monetary targets, financial sector weaknesses, growing external imbalances and increase budget deficit as well as the composition of the financing of the deficit remain areas for the economy of Bangladesh.

Leading economist of WB Dhaka office Sanjay Kathuria said that Bangladesh has limited room for maneuver to a second global slowdown cushion when it happens.

"Rapid increase in subsidies, continued strong growth of credit to the private sector and Monetary financing of budget deficits led to the decline in maneuverability," he added.

Note, that 2010-11 continue its recent uptrend in growth, the WB said the Bangladesh economy to 6.7 percent in the fiscal year (FY) grew that the growth rate last year good performance in the areas of manufacturing and construction, two consecutive years of bumper crop harvest and high post on the services sector, it added.

But can the country's strong performance in FY11 repeatedly, if exports continue to grow, the recent agreement India and Bangladesh exports benefit clothing, and transfers continue to recover, and the investment is reinforced by improved infrastructure services, makes special.

Found the economic update, a protracted global slowdown Bangladesh could affect across multiple channels.

Meanwhile, other multilateral capital said donor-the Asian Development Bank (ADB)-in its latest development prospects that Bangladesh of economy is expected to 7.0 percent in the current financial year due to the continued export growth and expansive domestic demand for increasing funding and income flows grow.


Source: thedailystar.net


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Friday, October 28, 2011

Govt snake JT venture investment optimistic

The Government expects funds for the project due to graft allegations, said officials on Tuesday after the World Bank funds from alternative sources for the proposed multi-purpose Padma bridge project.


A series of international joint venture groups expressed their willingness to invest in the mega project to build own, operate and transfer (BOOT) basis, the officials added.


In General, are offered BOOT offers for 15 to 25 years by investors, the investment with profits again.


"A number of world-famous infrastructure generators are in the formation of joint venture groups to vie for a deal to build the proposed multipurpose bridge over the River Padma", said a senior official of the Ministry of communication does not demand be named.


He said most of the companies in talks for joint venture for the project could be Indian and Japanese Chinese, Malaysian, South Korea, without further details.


The joint venture groups prefer BOOT-offers for a longer period to ensure return on their investment in the project through collection of tolls.


An official who Bangladesh Bridge Authority said it was no problem when came joint venture for investment plan and approved the Government.


Be contacted if senior officials of the Finance Ministry said one he does not speak, press "very sensitive." to the question, such as the mater


"We expect at least three potentially joint venture groups to vie for the offer for the 6.15 km long mega bridge", Ministry officials said the communication.


A Malaysian company has used that cause that talks on a joint venture with another foreign company (from Bangladesh) committed to launch the mega project, the official said.


Malaysia's Special Envoy Datuk Seri Samy Vellu told reporters in Kuala Lumpur on Tuesday after returning from a trip to Bangladesh, that he talks with the company based in Kuala Lumpur.


Mr Samy Vellu, a former works Minister January, appointed a special representative for South Asian Nations, said Mueller joined the issue with the Malaysian company to Bangladesh Prime Minister Sheikh Hasina Malaysia to fund the bridge required. However he does not call the company.


"We are currently studying the feasibility of the project prepared by consultants, the Government in Bangladesh, of the" Malaysian official Bernama News Agency, Datuk Samy Vellu, cited.


He said he had notified Bangladesh Prime Minister, that Malaysian experts would study the design and would finance the bridge.


The WB temporarily suspended at the 10, for alleged corruption at the IAEE of the contractor for the construction of the 2.9 billion-dollar multi-purpose mega bridge a promised loan of $1.2 billion.


Then have the Asian Development Bank and Japan also keep provided the funds for the Padma bridge project the release of their contribution. However, the Islamic Development Bank (IDB) is to announce its decision on version of his committed funds for the project.


Finance Minister Abul Maal Abdul Muhith said on Sunday that the Government alternative arrangements for the implementation of the Padma multipurpose bridge project.


Source: thedailystar.net


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Manipulators again in search?

The transition from the Bangladesh's Association Bank (BAB) to revitalize of the marking Exchange apparently by fallen.


Just a day after the formal announcement of the introduction of market stabilization fund of the BAB, the benchmark index of the Dhaka stock exchange (DSE), the DGEN, lost almost 181 points or 3.19 percent on Monday. Search riding on the speculations of the banks on the DSE on the two previous sessions won with low sales re-entry into the market with significant liquidity.


But the market reacted negatively to the BAB announcement of a Fund, not with investor expectations, and was in line with. Is also there reasons, skeptical about the success of the moves STA - if one, sponsored by the Government Investment Corporation of Bangladesh (ICB)-previously some actors rather instituted a tainted public image.


ICB, has understandably, under the guidance of the Government, that December came under withering criticism from all after the collapse of the market in the past, TK 50 billion Bangladesh Fund (LF) to help stabilize the market. But until now only TK have mobilized 15 billion BF not yet been able to create positive impact on the market.


At least a few of the stabilization of market initiatives followed the introduction of the BF, many suspect, have led Committee fingers shown masterminded tend to with a few individuals, at whom the probe Ibrahim Khaled.


Many have questions were indifferent about the Government on the need for appropriate measures against the people of guilt, which led the abnormal growth of the market and the subsequent crash, according to the law of nature. This indifference, it is assumed that has encouraged 'Manipulators' still a game with the market and their unfinished mission.


Interest, according to reports, is the alleged manipulators on the market can support as an unnatural event are displayed. In fact, it was of course for such people, to hide that from public view, at least for some time. But it must something very much behind their hectic efforts to buoy the market, at least for a reasonable period.


It could be that they want the market to reach to a certain height where they relieve their holdings, formerly from the secondary market bought and also run the schema for the work placement of shares, premiums. You are looking for by also ways to fill their still-unfinished agenda far fear misuse of the Bookbuilding method and list.


Despite support from those, the most important in the capital market, successfully suspected manipulators so far not in their task, the market for a sustainable rally for a reasonable time period due to the investors, who are desperate to exit from the market.


In addition, the market needs the considerable amount of liquidity in the fast pace injection. But that's unlikely even with the launch of some market stabilization fund. These resources and their availability in day-to-day transactions involve significant time and regulatory process the bourses. There should be no reason to believe that the initiators of the so-called stabilisation fund do not know these requirements. Still they try, apparently, to increase a false hope to the investors of a market turnaround.


What is most intriguing the inclusion of the BAB in the activities is market shoring. The lukewarm response from most of its members to the most recent efforts to start a stabilization fund stock exchange indicates that most of the banks not such a movement are interested or not, in reality, able to investor confidence eroded largely by some sinister developments on the market extra money for investment in the country problems wrecked exchanges accept. There is a strong sense of the banking group, the BAB, late, which go beyond a trend, the dotted lines and play, to the melodies of outsiders has developed.


It is undeniable that banks had acquired substantial profit from their investment in equity markets. But a whole bunch of them are already in difficulties as a result of the collapse of market. Given the circumstances, the banks must not enough good reasons, additional enthusiasm, to demonstrate new investments in the stock market. And the Central Bank would any kind of adventurism on their part.


While the wrong signals from the stock exchange galore, the Government seems to be no idea on how it can handle the situation. Rather some of the actions and statements appear confusing and amusing from the Finance Ministry of honchos, sometimes. The consequence of the stock market crash has led to many distortions in the economy and society. The situation requires that well thought-out measures, which would help to stabilise the market by the normal process. The Government would make a mistake, if they support, open or concealed, or any attempt to market artificial buoy. It would cause more harm than good, to the market in the long run.


zahidmar10@gmail.com


Source: thedailystar.net


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Thursday, October 27, 2011

Teesta deal to be signed on agreed formula: Rizvi

The much-talked-about Teesta water-sharing agreement will be signed with India in line with a formula agreed earlier, said Dr Gawhar Rizvi, International Affairs Adviser to Prime Minister Sheikh Hasina, on Monday.


"We still hold on to this stance and no other formula will be accepted," he said while addressing a luncheon meeting organised by France-Bangladesh Chamber of Commerce and Industry (CCIFB) held at Ruposhi Bangla Hotel in the city.


The topic of discussion in the meeting was impact of Indian Prime Minister Dr Manmohan Singh's visit to Bangladesh on bilateral development of trade, commerce and industry.


Addressing as the chief guest, the adviser said the Teesta agreement was not signed due to some internal problems of India. "The problem is between Delhi and Kolkata. Dhaka has nothing to do with this." He said Indo-Bangla relationship has been caught up in our domestic politics for long. There is a perception which politicians injected to the people that 'You should not trust India as India does not trust us'.


The adviser said India and Bangladesh share 2,400 miles of border that is world's largest. Bangladesh-India relationship is the most important for this region.


He said the relation between India Bangladesh has got a new shape and a new trust has been created after this (AL-led alliance) government came to power, specially after Hasina's visit to Delhi in January 2010. The two Premiers agreed on some common issues for the betterment of the peoples of two countries.


He said during the discussion between two countries two main things were high on the agenda - the first one was connectivity and the second water and power issue.


Dr Rizvi said 80 per cent of the Teesta River is in India and 20 per cent in Bangladesh. But Bangladesh wants fifty-fifty share of water.


Source: thedailystar.net


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Austerity, further hike in fuel, power prices likely

The government may go for a drastic cut in its spending and hike in fuel price and power tariff in a bid to maintaining the country's macro-economic stability that, of late, has come under threat due to soaring subsidy costs.


The meeting of Council for the Co-ordination of Fiscal, Monetary and Exchange Rate Policies held Monday at the Ministry of Finance (MoF) with Finance Minister AMA Muhith in the chair reviewed the overall macro-economic situation and discussed possible ways of meeting the challenges.


The meeting decided to identify areas where spending could be reduced to help lessen the pressure on the budgetary resources, a secretary who attended the meeting, said.


The process of locating possible candidates for spending cut will be completed by the end of next month. The Coordination Council will meet again to decide finally on readjustment of government spending, he added.


"The government's fiscal management faces problems due to high spending on subsidies. Since it is difficult to cut subsidy costs, the government is left with no options other than trimming its revenue expenditures or increasing fuel price and power tariff," the senior government official told the FE on Monday.


Bangladesh Bank (BB) Governor, Chairman of National Board of Revenue (NBR), secretaries of finance division, banking and financial institutions division, economic relations division (ERD) under the MoF, and secretaries of commerce and planning ministries also attended the meeting.


The meeting analysed all major economic indicators of the current fiscal year. According to the latest data, placed in the meeting, the bank borrowing of the government as of October 19 was Tk 95.75 billion. Of the total amount, Tk 60.75 billion was borrowed from BB, while the rest from the scheduled banks. The bank borrowing target set in the national budget for the current (2011-2012) fiscal was Tk 189.57 billion.


"The situation with the government's bank borrowing during the first 109 days of the current fiscal year is really serious one. If the trend continues, the total bank borrowing might be more than twice the target set for the current fiscal," a BB high official told the FE.


The meeting was told that the amount of subsidy for the current fiscal, originally estimated at Tk 224.70 billion, could rise up to Tk 410 billion if price adjustments are not made soon. In the last fiscal, subsidy was originally estimated at Tk 142.63 billion. But it went up to Tk 193.99 billion in the revised budget, according to the finance ministry's budget documents.


The meeting noted with concern that foreign aid disbursement recorded a decline in the first quarter of the current fiscal as the country received funds worth US$ 246 million, $70 million less than the same period of last fiscal.


However, export and revenue earnings marked 22 per cent and 15 per cent increase respectively during the first quarter of the current fiscal year.


"We had 15 per cent revenue earning growth during July-September period compared to that of the corresponding period of the previous fiscal," Nasir Uddin, Chairman, NBR, who attended the meeting, told the FE.


He said he was hopeful of achieving revenue target set for the current fiscal year.


The meeting was unanimous on the issue of reducing the bank borrowing by the government with a view to reining in the inflationary pressure on the economy. Inflation soared to 11.97 per cent in last September which was the highest in the last decade.


Another high official felt that the government would face difficulties to cut both revenue spending and subsidies.


Measures such as cutting the number of foreign trips by government officials and suspending purchase of new vehicles for government officials and for project offices would make little difference.


He, however, said the government has no option other than increasing the prices of fuel and power tariff to tackle the situation.


Source: thedailystar.net


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ADP implementation in Q1 gives disconcerting picture

AppId is over the quota
AppId is over the quota
FHM Humayan Kabir

The government could implement only eleven per cent of annual development programme (ADP), in terms of its financial outlay, in the first quarter (Q1) of this fiscal, reflecting a disconcerting picture about the utilisation of the allocated funds, mostly in the form of foreign aid.

Planning ministry officials said a total of 54 government ministries and divisions spent Tk 48.35 billion -- 11 per cent of Tk 460 billion outlay of the ADP for the whole fiscal year (FY) 2011-12 -- during the July-September period.

The government in July-September period this fiscal received only US$246 million in foreign aid, $70 million less than that of the same period last fiscal (2010-11), finance ministry data showed.

According to Implementation Monitoring and Evaluation Division (IMED), the government agencies spent only four per cent of their allocated Tk 186.85 billion project aid (foreign aid) while 15 per cent were spent out of Tk 273.15 billion from domestic resources in the first quarter of the current fiscal.

A senior IMED official said the project implementation rate increased by two percentage points to 11 per cent in the first quarter (Q1) of 2011-12 fiscal compared to the situation during the same period last fiscal. The project aid utilisation, however, dropped during the period under report.

The ministries and agencies performed relatively better in utilising funds from the government's internal resources as they could spend Tk 40.11 billion, out of Tk 273.15 billion outlay in the ADP.

Though several policy measures were taken to help accelerate the pace of ADP implementation and raise the capacity of the agencies concerned, most large spending ministries, out of a total of 10, continued to show a poor level of execution in the Q1 of the current fiscal.

Only the local government and power division could implement 20 and 16 per cent respectively of their development budget, but eight other ministries and divisions with larger allocations spent their funds within a range between 2.0 and 5.0 per cent, he said.

The government has framed a Tk 460 billion ADP for the current FY2012 to execute 1039 projects in order to expand country's poor infrastructure, improve the situation in social sector and alleviate poverty.

The IMED data showed that energy and mineral resources division and the health and family welfare ministry performed the worst among the 10 large development budget spenders. Only 2.0 per cent of their allocated funds could be utilised in the Q1 of FY2012.

The water resources ministry, 8th largest development budget spender, could utilise only 3.0 per cent of their ADP allocations in July-September period.

Besides, the primary and mass education ministry, railway, road and bridge divisions and the education ministry spent in Q1 only 5.0 per cent each of their total budget outlay of this fiscal, the IMED data showed.

The government took some strict measures in July, the very first month of the FY, to help strengthen the capacity of the implementation agencies because most of them used to fail in making timely procurement, a major area of concern for quickening the pace of ADP implementation.

The planning ministry has already issued some guidelines to the development budget spenders, taking their monthly action and procurement plans into consideration, in order to streamline the implementation of their development projects.

"The major spenders failed to utilise the maximum amount of the allocated fund, adversely impacting the overall implementation scenario in the Q1 this fiscal, though they received about 80 per cent of the total Tk 460 billion development budget outlay," a senior IMED official told the FE.


Source: thedailystar.net


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Wednesday, October 26, 2011

Govt to sign coalmine contract with China consortium again

The government has decided to award the existing contractor -- China National Import and Export Corporation (CMC) led consortium with XMC - the job of coal extraction and management of the country's lone operational coalmine at Barapukuria for the next six years, an official has said.


A formal contract will be signed again with the consortium comprising CMC and Xuzhou Coal Mining Group Company Limited (XMC) shortly, said the official at the energy ministry.


The Chinese CMC-XMC consortium came out successful in getting the work as it was the lone bidder for future coal extraction and management of Barapukuria coalmine in the northern district of Dinajpur in the country, he said.


The consortium is now continuing operation at Barapukuria coalmine following a 'green signal' from the energy ministry.


The previous contract with the Chinese CMC-XMC consortium expired in August 2011.


Under the new contract, the Chinese consortium will require continuing operation on the fully mechanised long-wall retreat pillarless system of mining, using multi-slicing extraction techniques with the minimum production capacity of 1.0 million tonne of coal per year.


Currently, annual production from Barapukuria coalmine is around 800,000 tonnes per year.


But production will double to 1.6 million tonnes by next year, Managing Director of Barapukuria Coal Mining Company Limited (BCMCL) Md Quamruzzaman said.


BCMCL is the first fully mechanised underground coalmine in the country where coal is being mined from a single layer having approximately 36 to 40 metre thickness.


Total coal reserve in Barapukuria is estimated at 390 million tonnes, of which only 64 million tonnes are recoverable. Some 1.13 million tonnes of coal have so far been extracted.


Bangladesh's lone 250-megawatt (mw) capacity coal-fired power plant near the Barapukuria coalmine is a large consumer of Barapukuria coal.


"The power plant consumes around 70 per cent of the total coal production, if it remains operational," said the BCMCL top executive.


Construction of Barapukuria coalmine was completed by the CMC-led Chinese consortium under supplier's credit on 31st may 2005.


On completion of construction, a production, management and maintenance contract was signed with the CMC-led consortium along with XMC on 4th June, 2005 for a period of 71 months to produce 4.75 million tonnes of coal from the 1st slice of underground mine at a total cost of US$ 82.30 million.


Officials said BCMCL had floated international bid in December, 2010 aiming to get a fresh contractor for coal extraction from Barapukuria.


But the Chinese CMC consortium emerged as the lone bidder for management, production and maintenance services of the Barapukuria coalmine much to the discomfort of the BCMCL.


The Chinese consortium earlier had sought extension of their contract, but BCMCL was not interested to extend it and floated the tender seeking a new contractor.


Source: thedailystar.net


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Take advantage of our investment opportunities, PM tells Germans

BERLIN, Oct 24 (BSS): Prime Minister Sheikh Hasina today invited the German entrepreneurs to take advantage of the investment opportunities in Bangladesh, saying the country has offered most liberal foreign direct investment (FDI) regime in South Asia.

"Bangladesh allows the foreign investors for repatriation of hundred per cent of their profits and equity. . .We are eager to work in partnership with you for mutual gains and benefits as we journey to the future," she told a seminar here.


Representatives of leading German companies including Macuanji GIZ, Commerce Bank, DHL, Ministry of Economic Cooperation and Development, Solar World AG, Federal Foreign Office of Germany and local parliament members attended the seminar on "Bangladesh -- Emerging Market" organised by German-Bangladesh Chamber of Commerce at Hotel Adlon.


Hasina said, "Come to Bangladesh and help us build 'Sonar Bangla' (Golden Bangladesh), a land of prosperous and happy people."


She highlighted the business opportunities offered in Bangladesh for foreign investors and said Bangladesh has always relied on Germany as a trusted development and trading partner.


The two countries enjoy the best of relations based on shared values and convictions, she said.


German Ambassador to Bangladesh Hogler Michael gave the welcome speech while President of Bangladesh-German Chamber of Commerce and Industries (BGCCI) Saiful Islam made opening remarks.


Partner of McKinsey & Company Dr Achim Berg presented a case study report on readymade garments (RMG) industries while Chief Executive of PICARD Germany Thomas Picard spoke on leather industry investments in Bangladesh.


Deputy chief executive officer and MD of International Economic Affairs of German Chamber Federation (DIHK) Dr Volker Treiers, and president of Federation of Bangladesh Chamber of Commerce and Industry AK Azad, and Bangladesh Ambassador in Germany Mosud Mannan, spoke, among others, on the occasion.


The presentation was followed by a panel discussion in presence of Hasina and moderated by editor of the Daily Star of Bangladesh Mahfuz Anam.


Touching upon Bangladesh's economic success over the years, she said, "Despite global economic downturn, the country during the present government's tenure could maintain an average 6.0 per cent gross domestic product (GDP) growth. Last year, the GDP growth was 6.7 per cent."


Bangladesh's next Five-Year Plan (2011-2015) has been designed with the goal of achieving an average growth of around 8.0 per cent, she said.


Source: thedailystar.net


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Tuesday, October 25, 2011

Experts sceptical about prospects

The decision by private banks to create a Tk 10 billion market stabilisation fund (MSF) may not be enough to shore up the country's flagging bourses as the MSF may take months to launch, experts said Sunday.


News of the fund being launched by the banks pushed the benchmark DGEN index five per cent up in the first hour of trading, but the gains were clipped in the closing hour as euphoria gave way to concern over the size and impact of the fund.


Bangladesh Association of Banks (BAB), a platform of bank owners, announced creation of the fund at an emergency meet, but the association kept its initial size at Tk 10 billion -- a fifth of the original plan put forward by the BAB president a day before.


Experts said with the stocks facing a crisis in confidence, they were not sure how effective the fund would be in propping up the market, which has lost more than 30 per cent this year -- the worst feat since 1997 when the Dhaka Stock Exchange dived 67 per cent.


Yawar Sayeed, the managing director of AIMS of Bangladesh, said since the MSF would operate like a mutual fund, it needs to go through a long drawn-out process for launching and necessary approval from the regulator.


"I appreciate the BAB


move. It is timely. But they should know that things don't happen overnight in Bangladesh. An open ended mutual fund needs a long time for clearance," he said.


The fund manager said if the recent experience of the Tk 50 billion Bangladesh Fund was any indication, the MSF could hardly make any difference in the market.


"The Bangladesh Fund is the country's largest open-ended mutual fund. It is set up and operated by Investment Corporation of Bangladesh, which is a very capable organisation. And yet the fund had a poor debut," he said


"In my opinion the BAB move will bring no positive outcome either in the long run or for the time being," Mr Sayeed said.


Dhaka University finance professor Salahuddin Ahmed Khan echoed Sayeed, saying the MSF won't bring any "immediate benefit" to the market as its launching may need at least two-three months.


"All the market needs right now is participation of banks in day-to-day trading. Their presence can lift investors' morale. The collective move by the BAB is fine, but the banks can start trading individually," he said


DSE President Shakil Rizvi is also skeptical about the BAB move, saying similar promises by other stakeholders bore no fruits.


"Many people make announcement and unveil plans for the stock market. So, the representatives of BAB will have to prove that they mean business. BAB should also make financial commitment for the fund," he told the FE.


Former Securities and Exchange Commission (SEC) Chairman AB Mirza Azizul Islam, however, welcomed the BAB move, saying the market needs pumping of new liquidity, no matter where it comes from.


"The bourses are facing a liquidity crisis. In such a situation, the latest decision by the BAB will ease some concerns," Mr. Aziz, also a former advisor of the caretaker government, said.


He said investors' shaky confidence will get a fillip riding on the BAB's announcement of operating the MSF and the public subscription of the Bangladesh Fund as well.


Chittagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed said it's a high time for the banks to make investment in the capital market.


"The banks have realised that they should not miss the golden opportunity. Average P/E ration has come down to around 14. It is the best time to buy shares," Ahmed said.


Source: thedailystar.net


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Greater South Asian coop in trade, connectivity, energy, food stressed

With the fear of a double-dip recession casting a shadow over the global economy, South Asian nations must fend for themselves by stepping up regional efforts in trade, connectivity, energy and food security, a forum was told Sunday.


Top officials and experts at the two-day long Fourth South Asia Economic Summit (SAES IV) said the eight nations that make up the SAARC should also strike close ties with Central Asia to tap into the latter's rich energy reserve.


They also called upon the governments in the region to issue visas more liberally, as increased contact among the peoples is key to foster ties and boost trade and business between the eight nations.


Private think-tank Centre for Policy Dialogue (CPD) organised the SAES IV on 'Global Recovery, New Risks and Sustainable Growth: Repositioning South Asia' at a city hotel. Sunday was the closing day of the forum.


Member of CPD Board of Trustees and former finance minister M Syeduzzaman presided over the plenary session titled "Towards an Inclusive Growth in South Asia: Role of Regional Cooperation".


Chief guest Muhammad Faruk Khan, the Bangladeshi commerce minister, said the SA nations have failed to exploit the region's rich trade potentials owing to distrust sown by the politicians.


But in the wake of a sputtering global growth, the South Asian countries must set aside differences and bump up intra-regional economic ties to transform the region into a global growth engine.


"I believe close cooperation in economic and trade areas in SAARC (South Asian Association for Regional Cooperation) will help boost the momentum of growth that we already witnessed," the minister said.


"There are ample reasons to make us optimistic in this regard. Our region (South Asia) is bestowed with tremendous untapped potential, and together we can explore and make the best use of it for our mutual benefit," he added.


He said that South Asia lived up to its growth potential in the last decade and the "prevailing scenario suggests that the region would continue to remain so in near future".


He regretted that the politicians had used trade to settle scores between the nations.


"Over the period trade has been used as political weapon denying the benefit to our common people. We need to get out of this unhealthy practice. We should keep trade and economic cooperation above politics," the minister said.


He hoped SAES IV will provide useful inputs for development of SAARC vision in the area of trade and economic cooperation.


Senior Adviser Minister for Economic Affairs to the President of Afghanistan Dr Sham L Bathija laid emphasis on people to people contacts in South Asia, which is home to one-fourth of global human population.


The visiting minister strongly backed issuing multiple visas for businessmen to make sure the entrepreneurs can move freely exploring new avenues of growth in the region.


He said as a landlocked country -Afghanistan- could be benefited if broad-based regional connectivity in South Asia is established.


Executive Director of Institute of Policy Studies of Sri Lanka (IPS) Dr Saman Kelegama said regional cooperation is necessary to alleviate poverty and improve quality of people's lives.


Bangladesh Bank (BB) Governor Dr Atiur Rahman said warming bilateral relations between Bangladesh and India has played a crucial role in fostering recent cooperation in a raft of sectors.


"Good bilateral ties help build sound base for fruitful multilateral co-operation in the region," the governor said.


M Syeduzzaman said the governments of South Asia must take actions for reducing poverty and inclusive growth.


"Ensuring political justice, regional connectivity, cooperation on energy and power, employment generation in rural non-firm sectors are needed in South Asia," Mr. Syeduzzaman said


In addition, concerted efforts are a must for facing the fallouts of climate change in order to increase farm production for food security in South Asia, he said.


Director General (DG) of National Council for Applied Economic Research (NCAER) of India Dr Shekhar Shah, Chairman of Druk Holding and Investments and former minister for trade and industries of Bhutan Dr Lyonpo Om Pradhan and Research Fellow of Sustainable Development Policy Institute (SDPI) and former adviser to the Planning Commission of Pakistan Dr Vaqar Ahmed also spoke.


Source: thedailystar.net


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OMS of food grains to cover upazilas from this week

Open market sale (OMS) of food grains, mainly rice will be extended up to upazila level across the country from the current week, said a senior government food official on Sunday.


"A similar distribution process of foods at cheaper price has also been introduced in union level from last week," Ahmed Hossain Khan, director-general (DG) of food department told the FE.


Months earlier the OMS was expanded to district headquarters from the cities where the programme was last introduced in 2010 when food prices turned volatile.


The government at times conducts food distribution at subsidised prices to support the poor.


Meanwhile, officials and traders assume that the price of rice in local market are likely to stay stable, if not ease in the coming months, as the food department and private food dealers have started boosting supply.


Shortage of warehouses and an expected good harvest of upcoming Aman paddy following a recent bumper Boro crop warranted relevant dealers to ease their respective stocks, they said.


However the food DG said: "The distribution is a normal part of government programme at the onset of every financial year or as warranted on certain situation."


The department of food has an emergency stock of some 1.55 million tonnes, including 250,000 tonnes of wheat, Mr. Ahmed Hossain Khan said.


In addition to the present stock, nearly 50,000 tonnes of food grains imported by the food department were either lying at store houses in Chittagong port or in the supply pipelines, port officials and traders said.


But some officials of the food department said the stocks so far reached an optimum level of the storage capacity, leaving no space for fresh consignments.


They said Bangladesh had a plan to boost the emergency stocks to some 2.5 million tonnes, but a delay in building new warehouses, had restricted the implementation of the plan as of now.


The distribution of food through OMS and fair price shops were being conducted under a plan to distribute some 570,000 tonnes of rice and 260,000 tonnes of wheat by June 2012, another official of the food department said.


Through the OMS and fair price shops some 180,000 tonnes of rice and 30,000 tonnes of wheat will be distributed by November-end, they said.


Rice mill owners also have a large stock of rice and they were also expected to release their stocks ahead of aman paddy harvest anticipating price fall, traders said.


Now rice and wheat are sold at Tk 24 and Tk 20 per kg respectively under OMS in cities.


In addition to OMS and fair price sales, the government also distributes food free of cost among ultra poor under a vulnerable group feeding programme.


Meanwhile the food department has floated a tender recently to import 50,000 tonnes of wheat in the wake of a rising trend in local market despite a price slump in world market.


The tender was part of an ongoing initiative of the food department that has a plan to import 900,000 tonnes of wheat in the fiscal year 2012.


Prices of rice were stable while flour prices hiked in the kitchen market over last week.


Prices of loose flour (Maida) grew by Tk 7.0-8.0 per kg over the past week and was sold at up to Tk 44 per kg, while the price of packed flour rising up by Tk 8.0 per kg was sold at between Tk 46 and Tk 48 per kg in the city's kitchen markets.


Prices of flour (Atta) also increased by Tk 2 per kg. Retailers charged Tk 26-31 for a kilo of unpacked item and Tk 63-64 for a two kg packet of Atta.


Fine variety of rice was sold between Tk 42 and Tk 54 depending on quality and while coarse rice was sold between Tk 32 and Tka 40 per kg.


The food production in the last crop season reached some 35 million tonnes, including about 1.0 million tonnes of wheat, against 34 million tonnes in previous crop season, food ministry officials said.


The production is enough to feed some 160 million people of the country, where however 30 per cent of the people cannot afford to buy foods, experts say.


Source: thedailystar.net


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Monday, October 24, 2011

Govt has other ways to implement Padma Bridge project : Muhith

Finance Minister Abul Maal Abdul Muhith said on Sunday that the government had alternative arrangements to implement the Padma Multi-purpose Bridge project after the World Bank (WB) suspended its promised funds, while Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) deferred their loans' effectiveness for it.


"We have other ways," the minister told reporters after being asked whether the government had alternative sources to finance the Padma Bridge project if the pledged funds from major donors including the WB were not disbursed.


He said misunderstandings with donors were nothing new while implementing development projects, saying, "With donors, it is a regular affair."


"Financing was stopped several times during implementation of the Jamuna Bridge on the issue of compensation. But in the case of Padma Bridge, not a single allegation was raised on the compensation issue from donors," AMA Muhith told reporters after a meeting with US Charge d'Affaires in Dhaka Nicholas Dean at his Secretariat office.


He said they have written letters to WB elaborating on every aspect relating to Padma Bridge and the next course of action as far as the role of the government is concerned.


"Let us see what happens," the finance minister told reporters.


He said Dr Muhammad Yunus did not take part in any 'campaign' to prevent foreign aid from coming to Bangladesh.


"There is no negative impact on foreign aid due to Yunus," the minister said.


Responding to a question, the finance minister said they were facing problems in reconstructing 54 subsidiary companies of Grameen Bank (GB) as International Finance Corporation (IFC), a private sector investment arm of WB, has regretted to extend cooperation in the planned restructuring after it was asked by the government.


"IFC has regretted on the ground that they have also investments in the subsidiaries of GB," Muhith said.


"We will appoint a chartered accountancy (CA) firm to audit the 54 subsidiaries," He added.


He said the signing of US-Bangladesh Trade and Economic Cooperation Forum (TECF) deal is taking time due to the unresolved issue concerning labour rights.


"We will soon invite the US authorities to Dhaka for holding discussion on TECF with both the parties (Bangladesh and the US) having their own draft agreements," Mr Muhith told reporters.


"We have our clear opinions on the labour issue to be included in the TECF agreement," he added.


The United States Trade Representative (USTR) office has recently conveyed Washington's position on the labour issue to the Ministry of Foreign Affairs (MoFA), it has been learnt.


The conditions set by the USTR on the particular issue are: freedom of association of workers, effective recognition of workers' right to engage in collective bargaining, elimination of child labour and elimination of discrimination in respect of employment and occupation.


The latest stance of the US came following a proposal of Bangladesh through which the latter urged for inclusion of the words like 'to protect the fundamental labour rights' in the agreement, instead of mentioning the four specific clauses on the issue of labour rights, which the US has refused to accept, a diplomat said.


Source: thedailystar.net


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BAB announces launching of market stabilisation fund

AppId is over the quota
AppId is over the quota
FE Report

Private commercial banks (PCBs) announced Sunday the launching of a Tk 50 billion stock market stabilisation fund (SMSF) to help revamp the country's stock market.

They will initially invest Tk 10 billion in the proposed fund, the size of which will be enhanced gradually.

The announcements came after an emergency meeting of the Bangladesh Association of Banks (BAB), a platform of owners of PCBs, held at its city office on the day with its Chairman Nazrul Islam Mazumdar in the chair.

At the meeting, the BAB decided that each of its member-banks would contribute Tk 200 million to the proposed SMSF while an amount of Tk 100 million would come from non-banking financial institutions (NBFIs), insurance companies and interested publicly listed companies.

Sixteen out of 29 BAB members attended the meeting while Chairman of the Bangladesh Insurance Association Sheikh Kabir Hossain was also present as an invited guest.

"We've decided to establish the fund aiming to bring back stability in the country's stock market," the BAB chairman told reporters after the meeting, adding that the fund will go into

operation shortly after receiving its approval from the central bank and the capital market regulator.

"We think that the PCBs will not face any hurdle to invest Tk 200 million to the fund," Mr Mazumdar said while replying to a query.

Some banks have already started making fresh investment in the stock market, he said, adding that the banks may invest Tk 400 billion-Tk 450 billion in the market.

The BAB chairman also said the fund will be operated like a mutual fund and its size will cross Tk 50 billion.

"An asset management company (AMC) will operate the fund in line with the existing rules and regulations," President of the Bangladesh Association of Publicly Listed Companies (BAPLC) Salman F Rahman said, while replying to a question.

The BAB has asked its member-banks to confirm their firm commitment to making their investment in the proposed fund by October 31 this year.

Another meeting of the BAB will be held after receiving such commitments from its member-banks, a private banker close to the BAB told the FE.

The meeting discussed in details the possibilities for participation of other financial institutions, insurance companies and publicly listed companies as sponsors of SMSF, in addition to that of banks. This was indicated in a working paper on the fund that dealt with issues on which decisions were required.

After discussions, the decision was taken in favour of such participation by financial institutions other than banks.

Three-page working paper, which was placed before the BAB's meeting on Sunday, also indicated the SMSF would be managed by a new AMC whose paid up capital would be Tk 100 million to be subscribed by the sponsors of the SMSF on a pro rata basis of 1.0 per cent of the contribution to the fund.

"This amount will be in addition to the sponsors' contribution to the fund," it said, adding that the board of directors of the AMC will comprise reputed and competent persons of the society, not in any way related to the sponsors of the SMSF.

The board of directors of the AMC will appoint a professional chief executive officer (CEO) who will be responsible for the day-to-day management of the AMC, according to the paper.


Source: thedailystar.net


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Sunday, October 23, 2011

Govt plans to send workers back to Libya

The Government will take initiatives to back to send, repatriated workers for the foreign companies they were busy in Libya with the installation of the new Government in Tripoli, Leinen reports

About 36,000-40,000 forces Bangladeshi migrants, of the civil war between the Pro - and anti-Gaddafi were evacuated workers from Benghazi, Tripoli and other cities in the course in Libya.

The Government of Bangladesh, with the help of the IOM evacuated migrant workers mainly from the Egyptian and Tunisian border.

Company, including those of China and South Korea foreign employed many of these workers.

"Our first task will be to send back you (repatriated employees), through our mission in Tripoli to the companies in which they were previously employed." "You had returned beggars home without their salaries"

Employment and Social Affairs Minister Engr Khan Dacian Mosharraf Hossain said the news agency Friday.

He said the workers their outstanding wages and other charges with their employer company.

The Minister said that some 80-90 Bangladeshi doctors and engineers, who were employed in Libya their jobs in Libya soon will join.

He said, however, that it takes a little time for the Libyans, to install a full-fledged Government in Tripoli. "But we are ready to send the workers."

In the changed political situation, Engr Mosharraf which is new Libyan Government said expected to be a broad-based development plan to formulate and Bangladesh are intense in a democratic participation.


Source: thedailystar.net


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ADB names challenges for the BD economic growth this fiscal year

FE report

The Asian Development Bank (ADB) rising inflation, said inadequate electricity generation, lower than expected domestic revenues and foreign aid, global economic slowdown and political instability important challenges are Bangladesh economic growth this fiscal year.

"Continuation of the high oil and energy subsidies means even lower allocations for priority social and physical infrastructure, the long-term growth prospects of the country," said the latest quarterly economic update (QEU) of the ADB Friday.

The Manila-based multilateral capital lender said at price in power and hampering the development of the sector and exerts pressure on the State budget through greater subsidies.

The ADB report also said that the estimated budget deficit at five percent of gross domestic product (GDP) could cross this fiscal year due to higher grant allocations.

He said: "More reminiscent of the banking system could stoke inflation, displace to undermine private investment and tax matters of discipline in the current year."

"On the other hand acts meet the deficit target of trimming annual programme (ADP) construction of essential infrastructure development."

The ADB map shows that Bangladesh supply energy scarcity say growing power supply and energy deficiency the binding to achieve the reduction targets growth, work and poverty in the sixth five year plan (FYP) limited.

The Government is to 2,157-megawatt (MW) power generating by 2012, but when gas does not improve availability, higher production, may be difficult to meet the targets, it added.

Increased attention is required for the production of investment in renewable and clean energy, completing the coal policy, import of makes and LPG, attract private investment and improvement of the capacity and governance in the sectors of energy and energy recommended.

The Manila-based lender praised the initiatives of the Government on major infrastructure such as Padma bridge and Dhaka elevated expressway.

Is it claimed however, that in road and significant increases, but efficiently use funding such assignments as well as monitoring of the costs and the quality of work, are essential.

The economic update said growth in agriculture probably slow to 4.6 percent in the fiscal year 2011-12 of 5.0 per cent in cost-cutting program, due to the high base in two consecutive years.

ADB proposes for continuous support from the Government irrigation systems for new areas under cultivation, bring cropping intensity through the dissemination of hybrid crop cultivation and create an incentive system to improve the profitability of agriculture in maintaining high agriculture to expand growth.

He said Bangladesh challenges for macroeconomic stability in program were rapidly rising inflation and the growing imbalance in external trade.

The Government has an expansive approach for the FY2012 budget to help to achieve a growth rate of 7.0 percent, while with the aim of containing inflation in 7.5%.

A higher economic growth with macroeconomic stability, lead, close coordination will contain the money and financial credit growth, inflation and balance of payments pressures to ease, while you a steady flow of credit to the private sector must be guaranteed, he said.

The economic update said: "Budget finance on the banking system should be closely monitored." "To achieve employment and poverty reduction, under the sixth FYP goals for growth, large investments in energy, transport, human capital and technological improvements are required."

Political and institutional reforms must be accelerated and capacity constraints need to on line agencies quickly addressed, to create conditions to support the better results in growth, notes.

ADB said that the industry growth is expected to 8.8 percent in edge

FY2012, with exports, maintaining the good trend, axial sectors respond incentives in fiscal year (FY) positively to the Government 2012 household, small and medium-sized enterprises (SMEs) and agro industry developed better due to the lively domestic demand and easier access to credit and growth in the housing and construction.

In order to ensure that the strong sector should be provided power, gas and electricity, reduced port services, improved, and the cost of doing business, the Bank suggested.

ADB' economic update said every six months (July to December 2011) monetary policy objectives continue to the Central Bank more stringent monetary policy stance on purely in credit expansion to control to preserve balance inflation and foreign trade.

The hope about the possibility of controlling monetary policy credit flows added on wasteful, fixed unproductive and with high risk, and at the same time appropriate credit from the productive sectors in industry, agriculture, trade and other services it.

ADB said: "Widening access to credit for the underserved productive sectors will be one of the main priorities under the current monetary policy statement."

"Regulating credit to unproductive sectors flows, and redirect them to the a great challenge, the close monitoring by the Central Bank be productive commercial banks credit."

The Asia Pacific regional lender said that behavior after remained a sharp decrease in prices the big stock market indicators in early December 2010. "Dhaka stock exchange (DSE) general index fell by 26.2 per cent from the level by the end of June 2011 the end of December 2010."

"The Government announced ad-hoc measures to stabilise the market, and improve the confidence of investors, including advice from commercial and merchant banks their profits, commercial banks, which forces the practice clients, the shares to sell, and remove to stop index breakers rely to reinvest." "Bangladesh Fund to stabilize the stock market, the Government has set up", added the economic update.


Source: thedailystar.net


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Govt to go ahead with the Padma bridge without World Bank aid

Authorities for the construction of the proposed Padma bridge also without help from the World Bank (WB), precede the financing of the proposed part of one alleged graft trial exposed has, officials said on Friday.


The WB temporarily suspended a promised loan of $1.2 billion on 10, alleged on the basis of corruption in the IAEE of the contractor for the construction of the 2.9 billion-dollar multi-purpose mega bridge.


Later, the Asian Development Bank have and Japan also keep provided the release of their respective part of the budget commitments for the Padma bridge project. The case with the release of the committed is not clear, however funds through the Islamic Development Bank (IDB) for the project so far.


The Government has taken the suspension of financing by WB, before what 'substantiating the claim' as illogical called it, and decided, with the works of the project to continue, even if not the problem, leaders of the ruling Awami League and officials paid the lead lender said.


Go ahead with the challenge of building the 6.15-km bridge, an election pledge by Prime Minister Sheikh Hasina, was decided by the Government, after a meeting of the ruling party on Thursday, said the party leadership.


"The Government needs the bridge to fulfil its obligation of linking the southwestern region of the country with the capital," said Abdus Sahid, a senior leader and the chief whip of the Parliament the vu.


The Government hopes that all quarters including the opposition party would like to see the bridge as a reality and therefore cooperation of the Government would extend the exercise of the national dream, he said.


"If the initial state, World Bank no matter, we have other options for the financing of the project is of several other potential," Mr Abdus Sahid quoted the Prime Minister, as telling the meeting.


"The Government has nothing against the WB to say." If it (WB) thinks that it is not possible it can lend us the money. "But we need it (bridge) anyway," he added.


The Prime Minister has their comment hours after a Malaysian Special Envoy allegedly told her that Kuala Lumpur would be willing to consider soft loans for the bridge project.


In the meantime the WB, which have to clarify charges and the kind of corruption, last week the Government and the anti-corruption Commission officials said separately.


The Government, which already has passed term half of today's elections now complete much seriousness at least to start and a part of the bridge before the end of their term of Office up to the early 2014, said party officials.


Prime Minister Sheikh Hasina is censured the WB for the delay of the process for short list of companies to increase some unfounded suspicion in 2010.


Could be ordered to investigate other options for the financing of the project, the Government has already with discussions some other friendly countries with his strong convictions started, which required funds see offers from State to State with nominal interest and fees, sources within the ruling party, said.


Source: thedailystar.net


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Saturday, October 22, 2011

Price control authority on the cards

The Government a step in a control authority Prize launched in a bid to enforce the measures so far holding to rising commodity prices in check, officials said.


Department of Commerce (MoC), which effectively control Government commodity prices can to with been commissioned the work, they added.


"We are working on a body which will enforce the relevant laws and regulations relating to the control of commodity prices," said a senior official of the MoC the vu.


Trade Minister Faruk Khan last week asked the MoC officials to start the one the ruling election promises of the Awami League, the work.


Recently, the Prime Minister Office (PMO) has asked to take MoC, the present Government said election promises to meet related sources to the Ministry.


To keep the commodity prices within reach of the common people, also another choice was promise of the ruling party.


Sources said, there was a similar kind of body in Bangladesh in the past, about which the Government had control commodity prices. Importers, had informed the authority detailed information about the status of the import, warehouse, status and prices were their.


"The body in the 1990s, the weakening of Government control over the market has been abolished." Now unscrupulous traders consumers at their free will, ", said an other officials prefer anonymity."


The Government is also working on establishing a market intelligence (MIU) monitor unusual rise in prices of essential commodities by unscrupulous traders.


Of the MIU civilian intelligence people are set, get information about the ups and downs of commodity prices, import and their supply-chain status.


Conversation with the VU Friday, consumers Association of Bangladesh (CAB) said President Quazi Faruque, adoption of a law or the establishment of a body no benefit for the people would bring, unless it is actually followed or it works.


"The Government needs to enact laws and to control the unscrupulous businessmen whose enforcement that today the Government order was disobedience have."


He said: "Businessmen promise the Government practically to do one thing in a formal meeting of the other." "Do not keep commitment."


Source: thedailystar.net


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Libya delayed burial plans for Gaddafi in the midst of uncertainty

Libya delays burial plans for Gaddafi amid uncertainty
Libyan NTC fighters in Sirte after their last victory against the forces, which loyal to Muammar al-Gaddafi to celebrate Thursday. ? Internet Tripoli, Oct 21 (agencies): Libyan Government Muammar al-Gaddafi delayed burial under uncertainty about his final resting place and the circumstances of his killing.

Oil Minister Ali Tarhouni, said that the body of the ex-leader can be kept "for a few days". In Islamic tradition, funeral take place as soon as possible.

It is unclear whether this will be, in his hometown in the Gulf of Sirte, 13, where the body was taken, or in the desert.

Sources said his body in a refrigerated room somewhere outside Misratah was held, and that the authorities wanted you DNA tests before the funeral.

The UN is looking for an investigation of Gaddafi death.

Libyan authorities plan a secret funeral for Gaddafi, the BBC understands.

The BBC's Caroline Hawley in Tripoli says are carrying out a secret burial authorities and there is some speculation that they could try again, bury him on the beach, such as al-Qaeda leader Osama bin Laden to everyone to a shrine, tomb was buried, it adds.

In the meantime, NATO should end to declare the Libya campaign in the next few hours.

Libyan leader faced pressure Friday to announce the country's liberation and move towards democracy in the middle of the euphoria about the killing of despot Gaddafi may still murky.

As news of the death of Gaddafi, his son Mutassim, and other top regime in his home town of Sirte, autumn broke the NTC way on a promised Declaration, that the country is finally freed was held.

NTC guide had said that once in the hands of Sirte which was its fighters, the formation of an interim Government would announce them, to monitor drafting a new Constitution and free elections after four decades of dictatorship.

But with a different Gaddafi son many years heritage Seif al-Islam nor for NTC waited guide untreated despite jubilation in cities across the country to the message that once all powerful tyrant was dead.

Provisional Premier Mahmoud Jibril said Seif al-Islam believed, in a village near the city of Sirte to be pinned down.

Gaddafi body was in a private residence in the third-largest city Misratah Libya overnight, put his troops devastated in a long siege, which proved correspondent one of the turning points of the eight months rebellion, an AFP reported.

Meanwhile, questions regarding the exact course in Gaddafi multiply the last moments after his capture.

Officials have denied that he was executed.

-In-Office Prime Minister Mahmoud Jibril said, that was shot after his capture in his hometown in the Gulf of Sirte Gaddafi in the head in a fire between Gaddafi loyalists and NTC fighter

Video suggests that he was dragged through the streets.

A NTC fighter told the BBC, found, the former Libyan leader, hidden in a drainage pipe, and he had asked not to shoot him.

The fighters reporter showed a golden gun, which, he said that he by Col Gaddafi.


Source: thedailystar.net


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Thursday, October 20, 2011

Khaleda warns of road marches to Dhaka to topple govt

BNP chief Khaleda Zia has warned of road marches towards Dhaka to topple the government.

She urged her audience at a rally at Bogra's Altafunnesa playground that they should prepare for such programmes in future.


The former prime minister said: "The government has failed in every sector. Neither the people nor their sovereignty is secure in their hands anymore."


She said that was why the people had risen. She said, "The people will have to march towards Dhaka in future to unseat the government and see them off."


Leader of the main opposition, Khaleda led a road march towards the north-western district of Chapainawabganj from Dhaka. On its way, the road march has halted in Bogra for the night. Khaleda will stay the night at the town's circuit house.


The two-day march will conclude Wednesday with Khaleda addressing another rally at the Chapainawabganj Government High School grounds. Before that Khaleda is expected to address a rally at Naogaon before reaching the destination.


Khaleda also warned that the big fishes involved in the share market scam would be caught if her party returns to power.


She criticised the government for letting lose the police on small investors who were on a hunger strike in the capital in protest against continued fall in share prices.


Addressing a wayside rally near Bhuapur railway station in Tangail in the afternoon, Khaleda said although the inquiry committee submitted its report on the share market scandal, the Finance Minister did not dare to disclose the names of the big fishes involved in it.


The opposition leader who was leading an anti-government road march towards Chapainawabganj said those who looted money from the share market and siphoned off it abroad must be held and brought to justice.


She deplored that the small investors have turned pauper losing their money due to the swindling in the stock market but the government did not even console them and failed to take any action against the cheats.


In her harsh words, Khaleda said although the protesting investors were driven away by the police, the flame of public anger cannot be put out. "This flame will spread out and burn down the government."


Allegation of corruption in Padma bridge project will lead other donors to stop funding the project like the World Bank did, the BNP chairperson said.


Source: thedailystar.net


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Rental power plants -- more than a zero-sum game

In Bangla, there is a saying 'garaj baro balai' (necessity knows no law). The ongoing power crisis of unmanageable proportion has again proved it to be right, at least, in the case of the government's hasty actions concerning the liquid fuel-guzzling rental power plants.


The move to facilitate early commissioning of a good number of rental and 'quick' rental power plants in the private sector with the objective of meeting a large power deficit has given rise to lots of troubles, financial and otherwise, that the government, possibly, failed to foresee in their true perspective.


The power shortage has been taking a heavy toll on the economy. And the short-term and handy means chosen to offset, at least, partially that loss, in turn, are making budgetary management on the part of the government rather difficult.


The rental power plants together have already emerged as a serious pain in the government's neck. For running those plants, it is left with no option other than spending a substantial amount from its reserve, which has again come under strain of late because of less-than- expected inflow of foreign assistance and remittance income, on the import of additional quantity of diesel and furnace oil.


The foreign exchange expenditure apart, what should worry the government more is the subsidy that it would have to provide on account of the supply of fuel to the rental power plants and the gross mismatch between power procurement and selling tariffs.


There are confusions about the subsidy estimates since varying disclosures are made from to time by men in-charge of the ministry and agencies concerned. However, according to the latest estimates, if selling tariffs remains unchanged both in the case of petroleum products and power, the government would have to provide subsidies worth Tk. 230 billion -- Tk. 140 billion on oil marketing by the Bangladesh Petroleum Corporation (BPC) and Tk. 90 billion on power purchase, mainly from rental power plants, by the Power Development Board (PDB) in the current fiscal.


If the 'subsidy' estimates are right, the government will be in a real soup in meeting those, particularly when the allocation against all types of subsidies in the national budget for this fiscal is little over Tk. 90 billion. In such a situation, the government will take recourse to what most governments do; it would borrow from banks in excess of the amount projected in the budget, thus, adding more fuel to an already high inflationary pressure (point-to-point inflation, according to the Bangladesh Bureau of Statistics, was 12 per cent in last September).


There are also other concerns. A good number of rental power plants, according to a recent report in a Bengali daily, are unlikely to be commissioned on schedule because of the fuel supply-related problems. The failure on the part of the Bangladesh Railway and the Bangladesh Inland Water Transport Authority to develop necessary infrastructures to carry fuel to at least seven rental and quick rental power plants has made the commissioning of these power plants, having 450 megawatt (MW) generation capacity, uncertain. Poor navigability, low clearance of bridges over some rivers and insufficient rail track and tank wagons are responsible for the delay in fuel supply.


But the government may have to count a cost if these power plants fail to start producing power according to their pre-set schedules. And the conditions set in power purchase agreements that the PDB signed with rental power plants would come into play. Since the government wanted expeditious execution of rental power plants, it included a provision of imposing fines for delayed implementation of rental power plants. The provision is applicable to both the power plants and the government, depending on the nature of the causes.


The pertinent question that one may like to ask: Instead of going for rental power plant what else the government could do to narrow the power deficit within the shortest possible time?


There is no denying that rental plants are quick-fixes yet expensive solutions to power problem. But what is the use of opting for a solution that cannot deliver results in time for problems that the decision-makers fail to see beforehand? It is expected that the authorities concerned while allowing installation of a power plant at any specific site would take all relevant issues, including the facility available for transportation of fuel to it, into cognizance.


More importantly, no matter what the government is claiming about generation of additional power during its nearly three-year rule, the fact remains that people are still troubled by frequent load-shedding. The government may have added 1000-1200 MW or more to the national grid since its coming to power but, in the real sense, it has been more of a zero-sum game since the total generation by public sector power plants, in the meanwhile, has declined due to gas supply shortage or technical glitches.


zahidmar10@gmail.com


Source: thedailystar.net


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