CHAMBER NEWS

9

January 201301

Bangladesh News

Metro rail gets go-aheadThe Executive Committee of National Economic Council (ECNEC) approved a project to set up the country’s fi rst metro rail system in Dhaka at a cost of Tk 219850 million. Japan will bear 76 percent (Tk 165950 million) cost of the project while the remaining 24 percent would come from government funds. Japan has already approved $133 million for the project in the current fi scal year. A 20.1 kilometre elevated railway track will be built on Uttara-Motijheel route via Pallabi and Sonargaon Hotel area under the project, which will be implemented in three phases. In the fi rst phase, 11 km of railway track will be laid from Pallabi to Sonargaon Hotel by 2019; in the second phase, 4.4 km line will be installed from Sonargaon Hotel to Bangladesh Bank at Motijheel by 2020; and in the third phase, 4.7 km track from Uttara to Pallabi will be set up by 2022. $160 million ADB loan

to build Airport-Gazipur BRT

The Asian Development Bank (ADB) confi rmed US$160 million loans for constructing Bangladesh’s fi rst Bus Rapid Transit (BRT) route from Airport to Gazipur. The ADB singed a loan agreement with the Bangladesh government to disburse the credit for building the 20-kilometre BRT line. The ADB also signed a $4.60 million worth of grant agreement with the government for technical support of the BRT project. The total cost of the project is $255 million. Agence Française de Développement (AFD) is expected to co-fi nance the project with $45 million, while the Global Environment Facility will provide $4.60 million and the Government of Bangladesh $45.40 million. Under the project, a 20-km BRT line, 31 bus stations, a BRT depot in Gazipur, 7 fl yovers and a bridge at Tongi will be constructed.

$61.35 million spot orders received at BATEXPO-2012Spot orders worth $61.35 million were received at the three-day Bangladesh Apparel and Textile Exposition (BATEXPO) 2012. A total of 159 foreign buyers and 2846 buyers’ representatives visited the country’s biggest apparel show. More than 80 participants—20 foreign and 60 local—displayed their products at a total of 138 stalls.

Tk 491.9 million Japanese aid to develop education

1 Mbps has been set as minimum broadband speed

35 get CIP status for 2012 in industry category

Japan will provide 500 million yen (around Tk 491.9 million) as grant to Bangladesh for ‘Primary Education Development Program-3 (PEDP-3), which will be implemented during the period of 2011-2016 by the Ministry of Primary and Mass Education. The main objective of this program is to improve the quality of the classroom teaching of the primary school teachers through providing modern training in science and mathematics. Besides, supporting equipment relating to science and mathematics will also be provided under this program to improve the quality of education.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has set 1 Mbps as the standard broadband internet speed, an improvement from the current 128 Kbps in the country.This means broadband providers are now obliged to provide a minimum 1 Mbps internet to customers at all times.

A total 35 businessmen were honoured as ‘commercially important persons’ (CIPs-Industrial) for the year 2012. The Industries Minister recently handed over the CIPs-Industrial 2012 Cards to the businessmen at a function in the capital in recognition of their outstanding contribution to creation of employment opportunities and economic growth in the country. The 35 CIPs have been selected in six categories -- ex-offi cio, heavy industry, medium industry, small industry, micro industry and service industry. Eight persons have been selected in the ex-offi cio category, 13 in heavy industry, six in medium industry, three in small industry, two in micro industry and three in service industry. The facilities given to the CIPs include priority in reserving seats in airlines, train, bus and other modes of transport for business-related travels, availing of the letter of introduction (LoI) from the ministry of foreign affairs (MoFA) to get visa easily in case of foreign tours and using the VIP Lounge -2 at the airports. The cardholders, their spouses and children will get priority in getting cabins in case of treatment in public hospitals. They are also free to enter the Bangladesh Secretariat for a period of one year.

CHAMBER NEWS

10

January 201301

Remittances stood at US$ 1098.25 million in November 2012

Agriculture credit disbursement rose by 4.87%

Private and government borrowing

NBR revenue collections grew by 15.06% in July-November 2012Total revenue collected by the National Board of Revenue (NBR) during July-November 2012 amounted to Tk. 363.64 billion as against Tk. 316.04 billion in July- November 2011, showing a growth of 15.06 percent or Tk. 47.60 billion. The NBR revenue collection in July-November 2012 achieved 32.39 percent of total target (Tk.1122.59 billion) for FY 2012-13. Meanwhile, revenue collections in November 2012 increased by 15.58 percent or Tk 10.40 billion to Tk. 77.14 billion from Tk. 66.74 billion in November 2011 but decreased by 0.14 percent from Tk. 77.25 billion in October 2012.

The inward remittances received from Bangladeshi nationals working abroad remained strong in July-November 2012 and continued to play an important role in strengthening the foreign exchange reserves and current account, according to Bangladesh Bank. The remittance rose by 24.17 percent to US$ 6110.48 million in July-November 2012 from US$ 4921.08 million in July- November 2011. Meanwhile, remittances increased by 20.85 percent in November 2012 to US$ 1098.25 million from US$ 908.79 million in November 2011 but decreased by 24.45 percent from US$1453.60 million in October 2012. This is the twelve consecutive months that Bangladesh received over one billion dollar in remittance.

Agriculture credit disbursed by banks in July-November 2012 amounted to a provisional Tk.45.62 billion as compared to Tk. 43.50 billion in July- November 2011, showing a growth of 4.87 percent. The credit disbursement in July-November 2012 achieved 32.29 percent of total target (Tk.141.30 billion) set for FY 2012-13. Agriculture credit disbursed by banks in November 2012 amounted to a provisional Tk.12.34 billion as compared to Tk. 13.40 billion in November 2011, showing a fall of 7.91 percent but a rise of 19.23 percent from Tk 10.35 billion in October 2012. Meanwhile, total recovery of agriculture loan in July-November 2012 stood at a provisional Tk 51.27 billion as compared to Tk.50.57 billion in July-November 2011, showing a rise of 1.38 percent. The recovery of agriculture loan in November 2012 stood at a provisional Tk 11.71 billion as compared to Tk.9.76 billion in November 2011, showing a growth of 19.98 percent. The agricultural loan recovery was 5.11 percent lower compared to disbursement in November 2012.

Private sector borrowing from banks amounted to Tk. 4225.38 billion in October 2012, showing a growth of 18.38 percent from Tk. 3569.20 billion in October 2011, according to Bangladesh Bank. Meanwhile, the government (net) borrowing from banking sector stood at Tk. 995.91 billion in October 2012, showing a growth of 13.42 percent from Tk. 878.04 billion in October 2011.

Source: Bangladesh Bank

Source: Bangladesh Bank

Source: Bangladesh Bank

NBR RevenueJuly- Nov.

2011July- Nov.

2012% Change

Rise(+)/Fall(-)VAT 123.68 146.65 +18.57Import Duty 50.03 53.54 +7.02Supplementary Duty 62.23 61.57 -1.06Income Tax 77.28 98.23 +27.11Others 2.82 3.65 +29.43Total NBR Revenue 316.04 363.64 +15.06

Source: NBR

Taka in Billion

CHAMBER NEWS

11

January 201301

Infl ation soars as food prices went up

Highest ADP implementation seen in July-November 2012

After lying low for 10 months, infl ation was on the rise again due to rising food prices. Further rise in food prices pushed up general infl ation in November 2012 as it recorded 7.41 percent on point-to-point basis against 7.22 percent registered in October 2012 (Base: 1995-96=100). The food infl ation in November 2012 rose up to 6.45 percent from 5.57 percent in October 2012 due to increase in prices of different food items likes fl our, pulse, fi sh, meat, milk, and other related items. On the other hand, the non-food infl ation rate decreased to 9.31 percent in November 2012 from 10.46 percent in October 2012.

Implementation of Annual Development Programme (ADP) is seen highest during the July-November 2012. All the ministries and divisions utilised Tk 133.84 billion or 24 percent of the total Tk 550 billion ADP outlays for 2012-13 fi scal year and increased by 43.70 percent against July-November 2011, data released by the Implementation Monitoring and Evaluation Division (IMED) showed. In the same period of the last fi scal( 2011-12), the government spent Tk 93.14 billion or 20 percent of the total of ADP outlay Tk 460 billion. During July-November 2010, Tk 78.52 billion or 20 percent of the total ADP outlays of Tk 385 billion for 2010-11 fi scal year was utilized.

Source: Bangladesh Bureau of Statistics

Source: Bangladesh Bank

Source: IMED

OperatorsSubscribers

in September 2012

Subscribers in October 2012

Increase(+)/decrease(-)

Grameenphone 40.954 40.244 -0.710Banglalink 26.775 26.213 -0.562Robi 20.801 21.116 +0.315Airtel 6.887 6.938 -+0.051Citycell 1.679 1.596 -0083Teletalk 1.367 1.368 -0.001Total 98.463 97.475 -0.988

Source: BTRC

(Figures in million)

97.475 million active mobile phone usersThe number of active mobile phone users in the country reached 97.475 million at the end of November 2012, as the six mobile operators lost 0.988 million subscribers during the month, according to the Bangladesh Telecommunication Regulatory Commission (BTRC).

Disbursement of industrial term loans rose in July-September 2012In the fi rst quarter (July-September) of FY 2012-13, industrial term loan disbursement by banks and NBFIs increased by Tk. 22.83 billion to Tk. 97.20 billion as compared to Tk. 74.37 billion in July-September 2011 and Tk. 74.74 billion in July-September 2010, showing a rise of 30.70 percent in July-September 2012 due to the higher loan disbursement by the banks in the small and medium enterprises sector but a fall of 0.50 percent in July-September 2011. The disbursement of industrial term loans in July-September of FY 2012-13 decreased by 4.87 percent from Tk. 102.18 billion in April-June 2012. The recovery of industrial term loans grew by Tk. 13.80 billion to Tk. 81.91 billion in July-September 2012 against Tk. 68.11 billion in July-September 2011 and Tk. 59.14 billion in July-September 2010, showing a rise of 20.26 percent in July-September 2012 and 15.17 percent in July-September 2011.