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Economy

Puzzle of rise and fall in capital machinery imports  

Normal reasoning suggests capital machinery imports would plummet when a country is in the thick of political turmoil and shoot up when normalcy returns. That logic is found flapping when it comes to Bangladesh. In the first month of the current fiscal year, letters of credit settlement, which give an indication of the amount of imports, for capital machinery and industrial raw materials fell in comparison to a year ago. LC openings, which signify the import orders being placed, too saw a decline. puzzleIn July, LC settlement for capital machinery sli...

6.4pc GDP growth for Bangladesh: ADB projects

The Asian Development Bank (ADB) projected Thursday Bangladesh’s economic growth at 6.4 per cent in the current fiscal, backtracking from its earlier conservative estimate. Eight months ago in January last, the ADB in its Asian Development Outlook (ADO) 2014 said Bangladesh’s gross domestic product (GDP) would grow at 6.2 per cent in the current financial year (FY) 2014-15. “Exports and remittances are expected to perform better than projected earlier. Moreover, the government is seen stepping up project implementation and private investment will likely pick up on post-election political stability,” said the ADO 2014 Update, released Thursday in Dhaka.

Regulators look to factoring to bolster int’l trade

Regulators in Bangladesh are looking to incorporate factoring as a financing option to help expedite the country’s import/export activities and to provide a means for its manufacturers and exporters to avoid problems associated with deferred payments from buyers. Bangladesh BankThough factoring, instead of securing a loan, business owners sell accounts receivable (invoices) at a discount to a third-party funding source to raise capital. The source, or factor, then advances most of the invoiced amount to the company immediately an...

Tenaga Nasional shares up on Bangladesh deal

Tenaga Nasional Bhd's shares rose 2.0 sen to RM12.30 as the market reacts positively to its venture in Bangladesh. As at 11.58am, a total of 2.14 million shares were traded. tenangaTenaga Nasional has signed a memorandum of understanding with Powertek Bhd and Bangladesh Power Development Bhd to develop a 1,320-megawatt coal-fired power plant at Maheshkali, Bangladesh, on a build-own-operate basis. AmResearch said it was neutral on the venture as it is part of Tenaga Nasional's strategy of overseas expansion. "On the domestic front, we remain conv...

Call money rate surges to 8.25pc  

The inter-bank call money rate, at which banks lend and borrow between each other, rose to 8.25 percent yesterday, as some private banks rushed to borrow to meet their overnight demand. Total transactions in the market also increased in the past one week. A total of Tk 8,452 crore was transacted in the call money market yesterday, up by Tk 129 crore from the previous day, ahead of Eid-ul-Azha and Durga Puja, reports the Daily Star. “Credit offtake is gradually rising. Also, the seasonal demand for money is increasing,” said Anis A Khan, managing director of Mutual Trust Bank. State banks—Agrani, Janata, Rupali and Sonali—were the major lenders with Tk 3,924 crore in the yesterday’s call money market. Five foreign banks also lent Tk 668 crore.

Bangladesh global apparel export share to go up 1pc by 2020

Bangladesh’s share of textiles and garment exports to rise from 2.8 percent in 2010 to 3.8 percent in 2020, according to the HSBC Trade Forecast report. “The strong foothold Bangladesh has in production of apparels will further strengthen growth in total merchandise exports over the coming decade”, a new report from HSBC Bank reveals. rmgExport value of Bangladeshi ready-made garments rose by 13 percent on the year in the first five months of 2014 after growing by 11.7 percent last year, with US and the EU together importing almost two-thirds. The ...
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