Inflation, macroeconomic volatility, geopolitical unrest hit business

Bangladesh and Bhutan are set to sign an agreement and a protocol to offer each other multi-modal transit facilities aimed at boosting bilateral trade.A Bangladesh delegation, led by Commerce Minister Tipu Munshi, was already on its way to Bhutan where the deals are expected to be signed likely tomorrow (Wednesday), a senior commerce ministry official said on Monday.With the signing of the agreements, Bhutan would be another neighbouring country after India that will enjoy the transit facilities at nine customs points of the land, rail, air and river routes in Bangladesh.In return, Bhutan would allow Bangladesh to use its eight transit routes for the export and import of goods.The official said the National Board of Revenue (NBR) will have to issue Statutory Regulatory Order (SRO) detailing the procedures for goods movement through using the transit routes.Initially, the transit facilities are unlikely to be a win-win situation as Bhutanese traders would reach the Indian market and onward, he said, but it would give a positive message to the international community about Bangladesh""s approach towards trade liberalisation.Earlier in October 2018, Bangladesh and India signed the ""Agreement on the use of Chattogram and Mongla seaports for movement of goods to and from India"" mainly to provide transshipment facilities to India for carrying goods to its Northeastern states using the Bangladeshi ports.Under the latest agreements with Bhutan, both the countries will have to follow the Standard Operating Procedures (SOP) to use the transit facilities. Customs would fix specific fees of documents, lock, scanner and others for using the transit.According to an existing gazette of the NBR, document processing and transit charge has been set at Tk 30 per chalan, and fees for transshipment have been fixed at Tk 20 per tonne.Charges for security have been set at Tk 100 per tonne, escort Tk 50 per tonne, and other administrative charges Tk 100 per tonne. Container scanning fee has been set at Tk 254 per container for existing Indian transit.Officials familiar with the development said the transit fees set for Indian goods in 2020 may not remain same in case of Bhutan due to its geographical location.The NBR may set the transit fees for Bhutan as per the World Trade Organisation (WTO) rules.As per draft agreements that the cabinet approved last week, Bhutan would be able to use Chilmari, Nakugaon, Noonkhawa, Haluaghat, Daikhawa, Banglabandha, Burimari, Tamabil and Narayanganj as the transit points.On Bhutanese side, Bangladesh would be allowed to use Samdrup Jongkhar, Gelephu, Phuentshogling, Samtse, Pelzomthang (Nganglam), Gomtu (Phuentshogpelri), Paro International Airport and Gelephu Airport.Road routes include Samtse/Gomtu/Phuentshogling-Burimari-Rangpur-Bogura-Hatikamrul-Dhaka-Chattogram or Chattogram-Dhaka-Hatikamrul-Bogura-Rangpur-Burimari-Samtse/Gomtu/ Phuentshogling/ Gelephu.Another designated transit road route would be Samtse/Gomtu/Phuentshogling/Gelephu-Phulbari-Banglabandha-Rangpur-Bogra-Hatikamrul-Dhaka-Chattogram.Rail routes would be Mongla-Khulna-Nawapara-Jashore-Bheramara-Ishordi-Santahar-Parbotipur-Sylhet-Chilahati-Samtse/Gomtu/ Phuentshogling/ Gelephu or Chattogram-Laksam-Cumilla-Akaura-Dhaka-Sirajgaj-Bogra-Kaunia-Lalmonirhat-Burimari-Samtse/Gomtu/ Phuentshogling/Gelephu.Another rail route is Samtse/Gomtu/ Phuentshogling/Gelephu-Chilahati-Syedpur-Parbotipur-Shantahar-Ishwardi-Bheramara-Jashore-Nawapara-Khulna-Mongla.Chattogram-Laksam-Cumilla-Akaura-Dhaka-Sirajganj-Bogura-Kaunia-Lalmonirhat-Burimari-Samtse/Gomtu/Phuentshogling/Gelephu Samtse/Gomtu/Phuentshogling/Gelephu-Burimari-Lalmonirhat-Kaunia-Bogra-Sirajganj-Dhaka-Akhaura-Cumilla-Laksam-Chattogram.The transit country reserves its rights to amend or modify the designated transit routes and types of vehicles for plying through any designated routes in consultation with the contracting party any time it deems necessary.Under the agreement, river routes would be covered by memorandum of understanding (MoU) on use of inland waterways for transportation of goods under bilateral trade and transit cargo between Bangladesh and Bhutan. Air routes would be covered by air services agreement and MoUs signed between the two countries.doulotakter11@gmail.com

Bangladesh""s trade leaders demanded "logical duty-tax protection" for local industry and investment as the finance minister consulted them Monday on fiscal measures in making the coming budget amid persisting odds.At a virtually held pre-budget meeting with Finance Minister AHM Mustafa Kamal, they also sought tax waiver or bond facility to support domestic production and export diversification.The country""s apex trade body -- the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) -- placed the pleas in a package of suggestions which include keeping supply and price of essential commodities stable, expansion of tax net by modernising tax policy, and lowering economic inequality by enhancing income and employment generation."Though the national economy now stands on a strong base, the business-friendly environment of the country needs to be made further stronger to successfully face the challenges arising in post-pandemic era and from the ongoing Russia-Ukraine war," FBCCI president Jashim Uddin said at the event.He also said to enhance competitiveness of Bangladeshi business the cost of doing business has to be lessened. Infrastructure development, investment protection, raising port""s capacity, investment-friendly money and duty management, lowering transportation costs, and energy and power sector also need to be given special priority.President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan, at the meet, talked about circular economy, and reducing source tax as cost of doing business increased due to raising gas and electricity prices, among other issues.President of Dhaka Chamber of Commerce and Industry (DCCI) Md. Sameer Sattar said the main challenge for next budget would be raising the tax-to-GDP (gross domestic products) ratio."And to this end, the budget for fiscal year 2023-24 has to take measures to mobilise more resources," he said.Mr Sattar made a point that some 48 per cent of economic activities of the country are taking place in Dhaka and Chittagong while a total of 90-percent tax is collected from these business heartlands.He suggests that the government should increase resources and hire smart officers and keep their works under strict monitoring to enhance revenue collection.The revenue-enhancing suggestion relates to the government move to frame an incrementally bigger budget, in an approximate size of over Tk 7.0 trillion.The DCCI president also drew attention of the central bank governor, who was present at the meeting, to supervise the scheduled banks so that cottage, micro, small and medium enterprises (CMSMEs) get funds from the government re-finance scheme to remain afloat.Heads of a number of chambers and associations also spoke at the event.According to some meeting participants, the minister did not make any comment on the demands raised by the business-community leaders. However, he said the demands "will be taken into consideration with due importance".syful-islam@outlook.com

Chairman of the Financial Reporting Council (FRC) Professor Hamid Ullah Bhuiyan has said no bank in the country follows International Accounting Standards or International Financial Reporting Standards (IFRS) in preparing financial statements.Due to this, the actual picture of the financial health of the banks does not come out in the financial reports. If IFRS is followed, it will reduce banks"" assets by 40 percent, he said.Prof Hamid said this while speaking as chief guest at a ‘Meet the Press’ organised by Capital Market Journalists Forum (CMJF), an organisation of stock market reporters, held in the capital on Monday, reports UNB.He said, "We want IFRS to be implemented, then the real financial information of the bank will appear in the financial statements."The FRC chairman said the outstanding debt is being dragged on for years. It is being rescheduled paying 2.0 per cent only. But with this 2.0 per cent interest income or principal does not return to the bank.But regularly these types of loans are rescheduled. This is being done so that defaulters can take loans from other banks, he pointed out.He emphasised coming out from this culture for the sake of the country’s financial sector.Prof Hamid said many manipulations are done in the capital market using financial statements.“Many weak companies go through initial public offerings or IPOs. Most of the time, there are three consecutive years of increasing profits prior to the IPO. But after the IPO, profits fell consistently,” he pointed out.The FRC chairman said the initiative to register auditors had been taken to ensure transparency in the audit of financial statements of listed companies. It will be completed in a few months. Henceforth no auditor not registered with the FRC can audit a company listed on the capital market.He also said that if a company has a revenue of Tk 500 million or more, that company will be considered a public interest company. There are about 3,400 such companies in the country. Apart from this, there are 2500 micro-credit institutions. These will also come under FRC.CMJF president Ziaur Rahman presided over while Secretary Abu Ali moderated the function.

The revenue collection by the National Board of Revenue (NBR) during the July-February period of the current fiscal year (FY23) witnessed an 8.92 per cent growth from income tax, VAT and customs with a collection of Tk 1.96 trillion.The revenue collection by the NBR during the same period of the last fiscal year (FY22) was Tk 1.79 trillion, reports BSS.Revenue board officials said out of the overall revenue collection of Tk 1.96 trillion during this eight-month period, Tk 591.98 billion will come from customs, Tk 764.01 billion from VAT and Tk 604.37 billion from income tax and travel tax.This overall revenue collection is, however, lower than the revenue collection target of Tk 2.19 trillion during this eight-month period.The NBR officials said that the revenue collection during the July-February period of the last fiscal year (FY22) from customs or import and export duty was Tk 567.26 billion which increased to Tk 591.98 billion during this period having a growth of 4.36 per cent.On the other hand, the revenue collection from income tax and travel tax during this eight month period witnessed a growth of 6.29 per cent while the revenue collection from VAT during this July-February period experienced a healthy growth of 15.07 per cent.The revenue collection from income tax and travel tax during July-February period of last fiscal year (FY22) was Tk 568.61 billion while the revenue collection from VAT during the same period of the last fiscal year was Tk 663.96 billion.The NBR has a target of collecting Tk 3.7 trillion in the current fiscal year.

Collection of value-added tax (VAT) registered a hefty growth of about 15 per cent in the first eight months to February of the current fiscal year (FY) over the same period of last FY, largely contributed by domestic consumption of goods.The VAT wing of the National Board of Revenue (NBR) mobilised Tk 2.37 billion less from import sources during the July-February period of FY 2022-23 than that of the same period previous FY.However, its performance was impressive as compared to the other two wings of the NBR, officials said.The income tax and travel tax collection grew by 6.29 per cent during the period under review while customs revenue rose 4.36 per cent, according to provisional data of the NBR.The aggregate tax revenue grew by nearly 9.0 per cent in the July-February period over the corresponding period of last FY. In February last, it grew by only 1.71 per cent.However, the collection fell Tk 229.78 billion short of target which is equivalent to one month""s direct tax collection.The NBR collected Tk 1.96 trillion in taxes in the July-February period against its target of Tk 2.19 trillion.Last year, the NBR collected tax revenue worth Tk 1.79 trillion in the same period.In February, the NBR collected Tk 237.27 billion tax revenue against its target of Tk 294.40 billion for the month.The VAT wing collected Tk 764.01 billion, followed by income tax Tk 604.37 billion and customs wing Tk 591.98 billion.A senior official at the NBR said that enforcement of the VAT measures geared up in recent time to check evasion and realise due revenue from the businesses."The VAT collection witnessed growth mainly due to efforts made by the VAT officials and the revenue generated from the domestic sources," he said.The revenue collection scenario was different in the same period of last FY, with 17.50 per cent growth achieved by income tax wing, 22.68 per cent by customs wing and 10.69 per cent by VAT wing.In the current FY, VAT collection surpassed the growth of the two other wings, said the official.The average tax revenue collection growth was 12.12 per cent in the last five FYs.However, the three wings of the NBR lagged behind their respective targets in the July-February period of the current FY.The VAT collection fell short of target by Tk 57.38 billion while income tax by Tk 34.25 billion and customs by Tk 138.14 billion.The government has set Tk 3.70 trillion tax revenue target for FY 2022-23. The NBR will have to collect around Tk 1.73 trillion in tax revenue during the remaining March-June period to achieve the target.NBR officials said that achieving the annual target would be a huge challenge due to the decline in imports and the government""s austerity measures on different development projects.A senior VAT official said the large taxpayers"" unit has so far kept the revenue collection growth in a positive trajectory. VAT collection from beverages grew by 15 per cent, mobile phone users by 18 per cent and gas consumers by 20 per cent during this period."The NBR is trying to realise huge arrears lying with the state-owned Petrobangla," the official said.On poor growth of direct taxes, Dhaka University Economics Professor Dr M Abu Eusuf, who is also Executive Director of the Research and Policy Integration for Development (RAPID), said there is no visible step by the government to widen the direct tax net to increase the number of taxpayers and boost revenue collection.The tax offices should be set up in the upazila level to tap the potential taxpayers in the growth centres, he said, adding that the number of taxpayers is still low compared to that of the size of the population in the country.The NBR collects 60-70 per cent of the direct taxes from import sources as the Advance Income Tax (AIT).Dr Syed Aminul Karim, former income tax member of NBR, said the recent higher collection from VAT would be reflected by higher collections of income tax in the following year and later years as it is an outcome of higher production or sales of the industries."Income tax payments have been affected by the current liquidity crisis while the VAT collection may have witnessed positive outcomes from the recently introduced online collection system," he said.He also pointed out manpower shortage in the remote growth centres and absence of proper efforts by field-level tax offices as the weaknesses of the revenue collection system.doulotakter11@gmail.com

Bangladesh is updating the consumer inflation index with lot many goods and services in count, with 2021-22 as new base year, as price rises have upset indices locally and globally.Officials say the updated gauge to measure inflation is likely to be launched next fiscal year, beginning in July, as the existing one uses 2006 fiscal as base year and fails to portray real picture of inflation.The updating with the additional items in basket will result in new weightings for the components of its Consumer Price Index (CPI) basket, people at the national statistics office told the FE Sunday."There have been huge changes in the consumption habits over the years, so we need the latest commodity basket to reflect the real picture of the price changes," said a senior official working at the national accounting wing of Bangladesh Bureau of Statistics (BBS)."The existing basket will be updated and most of the weightings will be also changed because the present structure of people""s habits has changed remarkably," he added.But the official wouldn""t say what the impact of the re-basing would be on the headline inflation, which, measured by the BBS, has surpassed government-set target --7.5 per cent (revised for FY 2023) --- for seven straight months to stand at 8.78 per cent in February.However, the BBS statistician said there would be around 700 commodities in the new basket, up by 66 per cent from the existing 422 commodities.People in the agency, meantime, said they had already finalised lists of the goods and services, both for urban and rural areas.They will also organise a technical session for the BBS people today (Monday) at its headquarters in Dhaka.Many items, including MFS or mobile-phone financial services, were not covered in the 2006 index. "Many more people spend a lot more on mobile telecommunications these days and this will significantly increase the weight of communications in the consumer basket," the statistician noted. Usually, each decade needs to be rebased for the basket for changes in eating habits.The BBS first rebased the CPI in 1973-74, and it continued until FY 1987. Later it introduced 1985-86 as the base year with new weights, and in 1995-96, the BBS also updated. And the existing yardstick is based on 2005-06.Currently, the BBS collects price data from 140 (64 from urban, 64 from rural, and 12 from Dhaka City Corporation) main markets across the country to calculate the price indices.Three price quotes per item are collected from each of the markets. Prices of 151 food items as well as 271 non-food items in urban areas, 133 food items as well as 185 non-food items in rural areas (2005-06) are collected.In collecting prices, four schedules (Darchak) are used (i) monthly rural retail (ii) monthly urban retail (iii) monthly urban wholesale and (iv) quarterly house rent.Data are usually collected from select shops in each market or selected units or service providers in case of services.In constructing price indices, the average price for each item is considered.jasimharoon@yahoo.com

Foreign Minister Dr AK Abdul Momen, on Sunday, called upon the international community to continue providing trade facilities to the countries who have graduated from the LDC status.Addressing the 25th founding anniversary celebration programme of the Diplomatic Correspondents’ Association of Bangladesh (DCAB) in the city, the minister said that the continuation of trade facilities is essential for the successful transition of the graduated countries.The minister attended the event through a virtual platform.Quoting the UN secretary-general, the minister said the graduated countries must not be punished.He said that the global financial regime or the international financial institutions need to understand that those who are graduating need a smooth transition.The foreign minister also mentioned that though that developed countries pledged to contribute to climate funding to help vulnerable countries mitigate the loss, no money has been provided yet.The foreign minister proposed that the developed countries which are polluting the climate should contribute 10 per cent of the defence budget to the climate fund.Nearly US$ 2.30 trillion is being spent by these countries, he said adding that by providing 10 per cent of this budget the negative impact of climate change on the vulnerable countries can be mitigated.He said his ministry stressed gearing up elementary economic diplomacy to help increase inward foreign direct investment so that the country can create more jobs for people and also increase trade.State Minister for foreign affairs, M Shahriar, Alam, was the chief guest in the programme, and foreign secretary Masud Bin Momen was the special guest.Ambassador Humayun Kabir, Chairman of the International Relations Department of the Dhaka University Lailufer Yasmin, and Secretary of the Press Club Shyamol Dutta were panel speakers at the discussion.Shahriar Jaman of the Bangla Tribune and Mir Mostafizur Rahman of the Financial Express presented the keynote paper, titled “Role of media in pursuing foreign policy”, at the seminar, organised to mark the silver jubilee anniversary of the DCAB.DCAB President Rezaul Karim gave the welcome speech and Secretary Imrul Kaes gave the vote of thanks at the programme moderated by Raheed Ezaz and Pantho Rahman.In his speech, the state minister said that the diplomatic correspondents played a very responsible role during Bangladesh legal battle to establish its rights in the maritime boundary.Lauding the role of media in realising the country’s development drive he said the foreign ministry always gives due importance to the media.Mr Alam reminded that Bangabandhu Sheikh Mujibur Rahman also once chose to be a journalist.Mr Masud said, “there are many issues that are contemporary and we are dealing with them and not all of them are meant for public consumption.”“Some of it is in the formative stage, some in the internal discussion stage, some are ready for discussion with the stakeholders, and then the final output is ready,” he added.“In foreign policy, there are some sensitive components.”“And therefore, we do hope that your understanding and support because many of these issues have a lot of implications on our national life or daily life,” he added.Ambassador Humayun Kabir said that in the age of social media, credibility becomes a key issue as a lot of things are being discussed on social media, some of which are not true.He pointed out that journalists can play a crucial role in identifying which of those are true and which are wrong, and that is why journalists are greatly respected in society.Ms Lailufer said the role of social media has been also very divisive in the wake of social media.In our society and in the world, the rise of populism affected the process of the media’s role in informing people.“For example, in the case of Brexit, the politicians accepted that they actually provided wrong information to the people on the basis of which they may take it such a big position for which the UK now has to deal with a very different way.”“So we can see that how knowledge is power, knowledge can be divisive and knowledge can be exploited by a handful of people” she added.In his keynote paper, Mir Mostafizur Rahaman said, in critical foreign policy issues like Bangladesh’s bilateral ties with its neighbours and important countries, local media played the role of both the information provider and opinion builder.Media in both India and Bangladesh have been vocal in ensuring closer ties between the two countries against the backdrop of anti-Indian sentiment among a section in Bangladesh.“In India, a lot of journalists have been proactive in suggesting to the ruling class that India should take steps to resolve disputed issues like water sharing and land border issues.”“The Ganges water sharing treaty and land boundary agreement appeared to be the outcome of this pressure,” he mentioned.“Similarly we have seen huge write ups in Bangladeshi media in favour of providing transit to India which was once an almost blasphemous issue in the post-75 regimes” he added.mirmostafiz@yahoo.com

The average daily transaction of mobile financial service (MFS) has crossed Tk32 billion and its volume shows a growing trend, said the latest report of Bangladesh Bank (BB).Analysing the data of 13 MFS in the country the BB report said that MFS gets popular in Bangladesh due to convenient transaction opportunities and payment facilities.The BB has released the updated statistics of MFS with information on 13 service providers. It has been seen that in the first month of this year January, customers transacted Tk1.05 trillion. This figure is the second-highest recorded transaction on mobile so far."There is no fee to open an account. Money can be sent everywhere instantly. At the same time, many new services have been added including payment of shopping bills, and loan facilities. These are contributing to an increase in the number of users," said Dr Salehuddin Ahmed, former governor of the BB.The central bank officials say inward remittances are also coming through MFS. As a result, people""s interest and dependence on MFS are increasing. The volume of transactions with customers is also increasing because of multifold uses of this service.According to the BB, in January on average daily transactions through MFS was Tk32.45 billion, excluding Nagad mobile finance operator as this MFS provider is not included under the BB financial report.If the Nagad transaction is added, then the MFS"" daily transaction volume would cross Tk42 billion.The BB report revealed that 60 per cent of the transaction was money deposit and windrowing while 40 per cent was digital payment in January 2023.The number of customers is increasing day by day with transactions in mobile banking.Currently, 13 banks are providing mobile banking services under different names including Bkash, Rocket, U Cash, My Cash, and Sure Cash.At the end of January 2023, the number of customers registered in mobile banking stood at 194.1 million. And the number of mobile banking agents has reached 1.57 million till January.

Higher tariffs and para-tariffs to protect the import-competing local manufacturing sector has been discouraging investment into the country""s non-RMG sector, defying export diversification efforts, according to a new research.Differential domestic and export sales standards and lack of export incentives for non-RMG sectors are also cited as major obstacles to export diversification.On the other hand, lack of information on demand, market size for specific products, potential competitors and regulatory requirements, specifically of the UK market, impedes non-RMG export expansion.The study suggests that Bangladesh remove anti-export bias and rationalise its tariffs, disseminate market-specific information, including the UK""s duty-free benefits, rules of origin provisions, required standards, integration into UK supply chains and establishing relationship with big brands.Research and Policy Integration for Development (RAPID) chairman Dr MA Razzaque shared the findings at a stakeholder consultation on ""Expanding and Diversifying Exports to UK Market"" in Dhaka on Thursday.Senior commerce secretary Tapan Kanti Ghosh was present there as the chief guest while Export Promotion Bureau vice-chairman AHM Ahsan and Bangladesh Trade and Tariff Commission chairman Md Faizul Islam, Foreign, Commonwealth and Development Office (FCDO) deputy development director Dr Duncan Overfield spoke.RAPID is undertaking a research, commissioned by the UK Secretary of State for the FCDO, and it identified four potential export sectors -- local leather and footwear, light engineering sectors, fish and shrimp and agricultural and agro processed food -- as most prominent to unleash their export potential.About tariff rationalisation, Mr Ghosh said Bangladesh relies on import tariff revenue, which is important for meeting government expenditure like education, health and social protection.Therefore, tariff rationalisation will create a challenge to ensure such spending, he added."Moreover, sometimes our entrepreneurs ask for protection from foreign products getting into the local market, which we cannot deny."After 2026, the secretary said, Bangladesh needs to lower the tariff rate, and exporters need to be mindful of growing competition and get mentally prepared about any possible reduction.He suggested measures to reduce costs from other areas and enhance production efficiency.Replying to payment challenge, Mr Ghosh said they are unaware of the open-account impact and would work with the central bank to fix the problem.Mr Overfield also stressed the need for relevant policy reforms that will best serve Bangladesh.Bangladesh must explore the necessary policy option and support to ensure the best utilisation of UK DCTS, mostly after the LDC graduation period, he stated.About country image, he said the perception of goods originating from Bangladesh will become more positive over time, much like how the perception of products from Hong Kong and China changed over the years.Presenting a keynote, Mr Razzaque said Bangladesh""s overall exports to the UK stood at $5 billion or 9.0 per cent of total exports, in last fiscal which was only $500 million in fiscal2000.Over 90 per cent of these exports comprise apparel products, reflecting Bangladesh""s heavy reliance on a single product, he said, adding that there are tremendous opportunities for expanding exports to the UK further -- not only of RMG, but also other products.RAPID projected that exports to the UK would reach more than $12 billion by 2030 -- $11 billion from RMG and $1.3 billion from non-RMG."It""s still unsettled if Bangladesh""s garment exports after LDC graduation will continue to receive duty-free market access in the European Union (EU) but, under the UK Developed Countries Trading Scheme (DCTS), Bangladesh apparel exports will continue to get duty-free access in the UK until 2029."The RAPID study identified several market-specific, political, economic and supply-side constraints and challenges from stakeholder consultations, including a lack of knowledge and information about the UK market, payment issues, insufficient export incentives, insufficient non-RMG supply capacity, scarcity of access to finance, and undersupply of skilled and specialised professionals.Under the DCTS, expansion and diversification of UK-bound exports will require multidimensional policy actions from both public and private stakeholders, it suggested.The EPB vice-chairman emphasised improvements in key areas such as maintaining SPS, ensuring proper packaging, improving the country""s perception and meeting consumer demand to tap the unutilised export potential to the UK market.Mr Islam from Tariff Commission said both public and private bodies should work together to ensure export diversification."High import tariffs work as disincentives for consumers as well as producers. The government is working on tariff rationalisation and a national tariff policy is in the final stages and would get the cabinet nod shortly."Speaking there, Masrullah, head of international business at Apex Footwear Limited, suggested matchmaking with UK buyers through top government level, dissemination of information, meeting testing and compliance requirements to stay in business.Although the company is trying to get engaged with a big UK footwear buyer for several months, he said, progress remains halted due to payment system as the buyer has asked for open account instead of LC system.Mohammad Mushtaque Ahmed Tanvir, president of Bangladesh Bicycle and Parts Manufacturers and Exporters Association, said the market trend for bike is now changing towards electric ones.Terming motors and battery major components, he said if Bangladesh could produce one of the two items, export would increase manifold.Mr Tanvir also identified testing facility and payment systems still challenging.Humayun Kabir from Bangladesh Frozen Foods Exporters Association called for allowing commercial cultivation of vannamei species of shrimp, among others.RAPID executive director Dr M Abu Eusuf moderated the event.munni_fe@yahoo.com

The government gets tightfisted in framing the annual development programme (ADP) for the next fiscal as a prolonged global economic crisis gives it limited choice in spending, officials said.In an order the Planning Commission (PC) has asked all ministries to avoid taking fresh projects and keeping the ongoing projects on their list in the ADP for the fiscal year 2023-24, they said, evidently as the government had to trim the current recipe for fund constraints."The global economic crisis could not end soon. So, we will take cautious approach in framing the development budget for the upcoming fiscal," State Minister for Planning Prof Dr Shamsul Alam told the FE."We have to pass through a ""tightrope"" in the next fiscal, too," the minister said.Meanwhile, the PC in an order for all the ministries has urged them to be cautious in taking development projects and prioritise food security and agricultural production-related schemes.Besides, the commission has also advised them to undertake projects related to agriculture industry, power and human-resource development, and tackling natural calamities."Not only the ADP, the entire budget for the next fiscal will be framed based on the cautious approach so that inflation and less-important expenditures can be checked. Simultaneously, we will also try to keep higher GDP-growth momentum," Prof Alam says about the next budget outlook and priorities.He rules out complacency with their better economic condition, as he reminds of financial pains worldwide. "Two US banks suddenly collapsed last week. It means the global economic turmoil will not be over too soon," he cites for reality checks.A senior Ministry of Finance (MoF) official said the size of the ADP for the FY2023-24 would not be increased much compared to the current one as the government has taken a cautious approach to spending in view of the global scenarios.In the current FY, the government framed a Tk 2.46-trillion ADP. And early this month the government downsized the development programme to Tk 2.27 trillion amid the national and international realities.A senior PC official says: "We have asked ministries not to take fresh projects rather to give more stress on completing the ongoing projects in the development budget. We will not entertain fresh projects in the upcoming ADP except for some highly-priority ones.""We have also warned the ministries that the PC would not carry over those projects in the upcoming ADP which are kept for completion in the current Revised ADP."Also, the slow-moving projects will not get priority in fund allocation. "Rather we will recommend the ministries to scrap those. We will divert the funds from the slow-moving ones to the priority projects."The planning commission will also give highest priority to the foreign aid-supported projects in the next ADP as Bangladesh needs more external funds to cushion the economy, the official adds.Ministries also have been asked not to give any fresh project list for inclusion in the upcoming ADP for projects whose DPPs have yet to be formulated.Only lists of those projects will be incorporated into the upcoming ADP the DPPs of which have already been formulated by the ministries or are under process in the PC for approval.Meanwhile, the global economic crisis has hit hard Bangladesh""s economy as its economic growth rate could fall even below 6.0-percent mark from an impressive over 7.0-percent trajectory maintained over the last few years.kabirhumayan10@gmail.comandrezamumu@gmail.com