News and development of economy of Bangladesh
The Daily Star, 14 August 2012
A fresh date for holding the biennial election to the Federation of Bangladesh Chambers of Commerce and Industry will be announced after the Eid-ul-Fitr, the apex trade body said in a statement yesterday.
According to the earlier decision, the FBCCI election had been set for October 21.
But later the commerce ministry gave a directive that the polls should be held within 30 days after November 1.
The financial Express, 12 August 2012
The Chittagong Chamber of Commerce and Industry (CCCI) urged Prime Minister Sheikh Hasina to hold a national dialogue with trade bodies to amend sections in Finance Act-2012, which are adverse to trade and business, according to an statement.
In a letter to the Prime Minister, the CCCI President Murshed Murad Ibrahim has sought amendment to a central bank circular.
The letter was sent with the follow-up decisions of a round table discussion organised by CCCI at its auditorium recently where trade body leaders, economists, professionals and CCCI directors attended it.
Mr Ibrahim said that though sub-section-1, section-52 of Income Tax Ordinance 1984 to deduct tax at source against local L/C, turnover tax under section-16CCC and ultimate tax liabilities under section-82C imposed as a technique to enhance revenue collection it has given birth to depression and dissatisfaction among the industrialists, manufacturers, importers and businesses.
He doubted that it could create vast chaos as most of the raw materials and essential commodities like rice, lentil, and wheat are supplied to different parts of the country through local L/C.
Bangladesh Bank published BRPB Circular # 7 & 8 on June 14, 2012 to commercial banks directing on loan classification and provisioning and loan rescheduling. According to these circulars no loan could be rescheduled after it is done for third time and the loan would be classified as well as subject for legal suite.
The chamber president opined that these hard and first rules could reduce from 30 per cent to 40 per cent credit fund and thus impediment the loan flow which can make the economy stagnant.
The business leader urged the Prime Minister to make them business and revenue friendly at the same time after due analysis, the statement added.
Daily Sun, 12 August 2012
CHITTAGONG: Chitta-gong Chamber of Commerce and Industry (CCCI) President Murshed Murad Ibrahim underscored the need for a national dialogue to amend sections in the Finance Act 2012 and recent Bangladesh Bank (BB) circulars.
The CCCI president made the call at an urgent letter to the Prime Minister (PM) Saturday.
In the letter, he requested the PM to bring about business and revenue-friendly amendment to some sections of the Finance Act and BB circulars under her leadership.
The findings of a roundtable discussion, proposed by trade body leaders, economists and professionals, organised by the CCCI recently were included in the letter.
Though, the sub-section-1 under section-52 of Income Tax Ordinance 1984 says about deducting 5 percent source tax against local LCs, turnover tax is imposed under section-16 and ultimate tax liabilities under section-82C is a technique to enhance revenue collection, the CCCI president mentioned in the letter.
This is creating disappointment and dissatisfaction among the industrialists, manu-facturers, importers and businesses, the letter added.
The Independent, 10 August 2012
RAJSHAHI, AUG 9: A group of businessmen and traders of Rajshahi demanded fresh election of Rajshahi Chamber of Commerce and Industry (RCCI) and save this prestigious organisation from ruination. They, at a joint press conference held at a community centre in Rajshahi also demanded handing over power to the newly elected board of directors immediate after election.
Former President of RCCI Abu Bakker Ali said there was no elected body of RCCI for last three and a half years. Yet, recently measures were taken to hold elections of RCCI and the date of holding elections was fixed on July-1, but due to a show cause notice served from the High Court the elections of RCCI for electing directors for 2012-13 and 2013-14 fiscal years was postponed on June-28.
The businessmen and traders also appealed to the secretary of the Ministry of Commerce to take measure to hold the elections of RCCI as soon as possible.
They mentioned that the vested quarters were deferring the elections of RCCI through conspiracy and were leading the chamber on the verge of collapse.
They said, the government had at first appointed a non-elected person as the administrator of RCCI. Later on a government official was appointed to the same post. In absence of any elected board of directors, the activities of RCCI became stalled, they claimed.
Abu Bakker Ali further mentioned that since the High Court has not directed to stop the elections, the businessmen have appealed to the Secretary of the Ministry of Commerce to hold the elections of RCCI as early as possible.
Earlier, the government had appointed Ziaul Haque Tuku, a former director of RCCI as the administrator. But the businessmen of Rajshahi did not accept him as administrator and filed complaints with the authorities demanding his removal for his alleged irregularities and corruption.
Terming the appointment of the RCCI administrator Ziaul Haque Tuku as ‘immoral’, Abu Bakker Ali had threatened not to accept any elections under Ziaul Haque Tuku. However, the Ministry of Commerce and Industry in an order later appointed additional deputy magistrate of Rajshahi as the administrator of RCCI.
Among others, the press conference was attended by businessmen Hasen Ali, Shahab Uddin, Kabirur Rahman Khan and Faisal Kabir Chowdhury.
Daily Sun, 3 August 2012
The biennial election of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will be held on October 21, 2012.
The election schedule was announced at a meeting today with the election board Chairman Professor M Ali Ashraf, MP, presiding, said an FBCCI release here.
The election board members—Shahedul Islam Helal and Abu Bakar Siddique Dilip—were present.
Last date to pay fees for the election is August 23, last date to submit nomination papers for general members is August 25, publication of primary voters’ list is August 30 and final publication of voters’ list is September 10.
Last date to submit nomination papers for the posts of directors is September 15.
Election for the post of directors would be held on October 21 and October 23 for president, first vice-president and vice- president.
Election results would be announced on October 25. —BSS
The Daily Star, 2 august 2012
Business groups and financial analysts welcomed India’s new Finance Minister P. Chidambaram on Wednesday, saying the pro-market and reformist politician was a good candidate to help jumpstart the economy.
Chidambaram, now in his third stint as finance minister, has robustly defended the Congress-led government’s commitment to implement reforms and its ability to revive the once-booming economy.
“He has a lot of experience of the finance ministry,” said Rajiv Kumar, secretary general of the Federation of Indian Chambers of Commerce and Industry.
Daily Sun, 2 august 2012
The government has increased the number of directors from chamber and association groups in the apex trade body FBCCI to 48 from the existing 44.
An amendment was made by bringing changes with the existing Trade Organisation Regulations (TOR) aiming to ensure more participation of businessmen in the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Commerce Ministry Wednesday issued a gazette notification in this regard.
One member of Rangpur chamber of commerce and industries will be included in the chamber group and one member of Bangladesh association of Inter-national Recruiting Agencies will also included in the association group, as per the gazette notification.
Daily Sun, 2 august 2012
Industries Minister Dilip Barua Wednesday urged the trade body leaders to utilise the upcoming ministerial-level convention of D-8 member nations in branding industrial sector’s image of the country.
He said the convention will create an opportunity for Bangladesh expanding market for its products in D-8 countries through utilising its diversified industrial sector potentials.
Dilip Barua was addressing a meeting with the leaders of business and trade bodies and prominent businessmen, as part of preparation of D-8 ministerial convention, held at the conference room of the Industries Ministry.
Additional secretaries of Industries Ministry ABM Khorshed Alam and Khondoker Raquibur Rahman, FBCCI President AK Azad, DCCI President Asif Ibrahim, BWCCI Vice President Hasina Newaz, MCCI representative Faruk Ahmed, BCCI Director Preete Chakravarty, ICIB representative Ajay Bihary Shaha, secretary general of BGMEA Ehsan-Ul-Fattah were present in the meeting.
The meeting discussed ensuring participation of Bangladeshi entrepreneurs in the upcoming ministerial level convention of D-8 counties in Bangladesh.
The meeting informed that participating entrepreneurs from the D-8 member countries will identify avenues of bi-lateral and multi-lateral cooperation in eleven industrial sectors.
The sectors include automotive and cement, steel, ICT, petrochemical, energy and environmental conservation, food industries, textile and garments, standardisation and conformity assessment, accreditation and metrology and SMEs.
The meeting decided to organise exhibition of Bangladesh’s industrial products side-by-side the convention, which the private entrepreneurs will organise in cooperation with the government agencies.
Through the exhibition, the businessmen will utilise the opportunity of country branding of Bangladesh, the meeting was told.
Sector-wise seminar will be held during the convention with participation of prominent entrepreneurs in the relevant sector through FBCCI’s cooperation.
The financial Express, 1 August 2012
Textile millers have urged the central bank not to implement new loan classification, provisioning and rescheduling rules, fearing it would increase the number of loan defaulters.
The central bank in a circular on July 14, 2012 has tightened its loan classification, provisioning and rescheduling policies aiming to ensure efficient and effective credit management in the banking sector.
The industry leaders in a recent letter to the Bangladesh Bank (BB) governor wrote: “The number of loan defaulters will increase after implementation of the circular as after the sudden ups and down of cotton price in the international market in 2010, most of the millers failed to repay bank’s installments but are trying to refund through different types of adjustments.”
In the letter they also expressed their fear that after implementation of the new rules, many mills would become bankrupt and face closure.
Under the new provisions, an outstanding loan will be classified for non-repayment within three months instead of six months fixed earlier.
The base for provisioning has been fixed at minimum 20 per cent of the outstanding balance of the loan while rescheduling will be limited to three times.
Under the new provisions, any outstanding loan will be classified as ‘Substandard’ if it is past due/overdue for three months or beyond but less than six months.
BB circular also said loan will become classified in six months’ non-repayment of installments in lieu of existing nine months.
Besides, banks will be allowed to reschedule their loans maximum three times on payment of the required amount which had no specific limit earlier, the circular said.
“A large part of capacity of mills remained unutilised for long mainly due to lack of power, gas and sluggish demand in the apparel sector despite the fact that production cost is on the rise,” Jahangir Alamin, president of Bangladesh Textile Mills Association (BTMA) told the FE.
The BTMA president also said that liquidity crisis of mills is on the rise following partial capacity utilization of plants and increase in production cost.
“Country’s capital-intensive spinning, weaving, dying and finishing mills will face a major risk after implementation of the circular. Number of loan defaulters will increase after implementation of the circular.”
General Manager of Maxons Spinning Mills Ltd, Aslam Parvez said that the new rules of classification, provisioning and rescheduling will be risky for the survival of the local spinning and textile mills.
“After the major set back in 2010, we have been running our mills through maintaining a close relation with banks and refunding our liabilities by different adjustments but the new rules would shrink all the scopes of our survival,” Parvez added.
However, a deputy governor of BB said that the measure has been taken to ensure stability in the banking sector. He also said that the bank is in talks with the textile millers on the issue which they applied for.
Meanwhile, bankers sought some time for implementation of the BB’s new measures relating to loan classification, provisioning and rescheduling, saying that it would hit profitability of the commercial banks by the end of this year.
Bangladesh Economy 