Current Business news from online papers of Bangladesh.

1. Presentation
on
Recent Business News
1

2. NAME: MD. MOAZZEM HOSSAIN
ID. 110106034
COURSE TITLE: ADVANCED ACCOUNTING
2
25/03/2014

3. 3
Serial
No.
Topic Slide No.
1) GDP growth to finally stand at 5.6pc: Mirza Aziz 03-07
2) DHL, One Bank sign express delivery deal 08
3) DELL to donate 1 lakh laptops 09
4) $774m IFC credit to boost private sector 10-11
5) Dhaka Chamber for raising tax ceiling 12-13
6) Dhaka Chamber for raising tax ceiling 14
Table of Contents

4. 4
The country’s GDP growth will be around 5.6 per cent in the current fiscal year, the
lowest in over a decade, says a renowned economist though Finance Minister AMA
Muhith still looks optimistic about achieving ambitious 7.2 per cent target, reports
UNB. “My observation is that the growth will definitely remain below 6 per cent.
As per my estimate, it’ll be 5.6 per cent,” former finance adviser to a caretaker
government Dr AB Mirza Azizul Islam told the new agency explaining why the
growth will be lower this time.
However, the Bangladesh Bank (BB) forecasts that the GDP (gross domestic
product) will stand at a range between 5.8 per cent and 6.1 per cent, which is also
far below the Finance Ministry’s target. “Our forecast, given in the last monetary
policy statement, still remains unchanged.
BBS (Bangla-desh Bureau of Statistics) will ultimately tell us we can only forecast.
But we think the final figure will remain within the range between 5.8 and 6.1 per
cent,” BB Chief Economist Dr Hassan Zaman told the news agency. Asked whether
they disagree with the Finance Ministry’s observation, the central bank chief
economist said it is normal to have often different forecasts in a ‘mature economy’.
“At the end of the day, the statistical agency will come up with the figure. Let’s see
what the BBS says.”
GDP growth to finally stand at 5.6pc:
Mirza Aziz

5. 5
GDP growth to finally stand at 5.6pc:
Mirza Aziz
Bangladesh

6. 6
On March 12, Finance Minister AMA Muhith said in Parliament that the government
has decided to keep the country’s GDP growth target of 7.2 per cent for the current
fiscal year unchanged. Muhith, while presenting the first quarterly report on the state
of Bangladesh economy in the House, also said it would not be tough to attain the
targeted GDP growth of 7.2 per cent if the industrial production picks up and Aman
as well as Boro harvests are satisfactory. Data show that GDP growth acceleration, so
critical to realising Bangladesh’s ambition of becoming a middle-income country and
graduating from the LDC bracket, has been lost in recent years.
Since FY 2011, the GDP growth has been on a downtrend -- 6.71 per cent in FY
2011, 6.23 per cent in FY 2012 and 6.03 per cent in FY 2013. Asked how the Finance
Minister expects higher growth, Mirza Aziz said the Finance Minister is not giving
any explanation on what basis the target will be achieved. Explaining his calculation,
the economist said the remittance growth, by the end of the current FY, will remain
negative if it is compared with the last FY’s growth while the export has started
decelerating though it performed well in the previous months.
GDP growth to finally stand at 5.6pc:
Mirza Aziz

7. 7
On the growth of domestic consumption which accounts around 75 per cent of GDP,
Mirza Aziz said the private consumption has declined for various reasons resulting in
lower earnings from the VAT (value added tax) and the consumption growth will
remain much lower than that of the previous FY. Similarly, private investment
growth will definitely remain lower than that of the previous FY, he said adding that
the government’s investment is also declining. “So, if the scenario is that how and
where the GDP growth will come from? So, over 6 per cent growth is impossible,”
said the economist reminding that the country witnessed 6.03 per cent growth in the
fiscal year 2012-2013.
BB chief economist Dr Zaman, however, said the GDP growth in the current fiscal
year could have been higher (from BB’s forecast) if the country could avert the
losses the economy suffered in the first half of the current FY due to various factors,
including the prolonged political chaos.
Asked whether they disagree with the Finance Ministry’s GDP target setting, the
central bank economist said a target can be set but the question is how much
‘realistic’ the target is. “You can easily draw a conclusion on your own if you look at
the gaps between the targets set by the Finance Ministry in last five years and the
ultimate results,” Dr Zaman said. He laid emphasis on having coordination meetings
involving the Finance Ministry, Planning Ministry, other government agencies and
private think-tanks to share forecasts and views on economic trends.
GDP growth to finally stand at 5.6pc:
Mirza Aziz

8. 8
Asked whether it would be judicious to set similar growth target for coming fiscal year when
target for the current fiscal year is likely to remain unmet, Mirza Aziz said, “We can set higher
target but the question is whether proper grounds are created for a massive jump.” Aziz also
said he does not see any sign and steps that can boost investment, consumption and remittance
inflow which are a must for a massive jump in terms of GDP growth. The economist expressed
doubt whether the prevailing political stability will sustain as situation may change after the
upazila polls being held in phases.
Entrepreneurs formulate investment plans considering investment environment in the long-
term. The investment is unlikely to get momentum in the coming months as political
uncertainly appears to return for various reasons, Mirza Aziz said. Talking to the news agency,
economist Dr Mustafa K Mujeri said it would be an impressive one if around 6 per cent GDP
growth is achieved at the end of the fiscal year. “However, it depends on how we can recoup
losses in the remaining months.” The economist, also the Director General of the Bangladesh
Institute of Development Studies (BIDS), said he does not see any significant sign or steps that
can expedite growth at this moment.
Reviewing the macroeconomic performance in the first half of fiscal 2013-14, the Centre for
Policy Dialogue (CPD), a civil society think tank, says the GDP growth might slip below 6 per
cent this fiscal year. The CPD expects the economy to grow between 5.6 per cent and 5.8 per
cent if there is no major supply disruption and political turmoil in the remaining months of the
current fiscal. All the international bodies - the World Bank (WB), International Monetary Fund
(IMF) and Asian Development Bank (ADB) -- are putting the GDP growth figure below 6 per
cent against the government target of 7.2 per cent.
GDP growth to finally stand at 5.6pc:
Mirza Aziz

9. 9
DHL, One Bank sign express
delivery deal
DHL Express, the world's leading express company, has recently signed an
agreement with One Bank Limited, to provide international express delivery to
the bank and its customers, says a press release.
The agreement was signed by Desmond Quiah, country manager of DHL
Express Bangladesh, and M Fakhrul Alam, managing director of One Bank
Limited at the Country office of DHL Express Bangladesh recently. Under this
agreement, the One Bank Limited will use DHL Express services for time-
sensitive international documents. DHL’s service includes automated shipment
preparation, pre scheduled pick-ups, a modern shipment tracking system and
shipment processing at DHL’s state-of-the-art operational facilities in the country,
with connectivity to more than 220 countries and territories worldwide.

10. 10
DELL to donate 1 lakh laptops
US computer Company DELL will distribute one lakh free laptops among the
Bangladeshi women as part of its women empowerment programme.
Charged affaires of the US Embassy in Dhaka, Jon Danilowicz informed this to the
planning minister AMH Mustafa Kamal during a meeting at his office at Sher-e-
Banglanagar in the city yesterday. The laptops will be provided under the project
"One family one woman" under the Post, Telecom, and Information Communication
Technology ministry. DELL will also provide training to the women to build up skill
on the ICT.

11. 11
$774m IFC credit to boost private sector
The International Finance Corporation (IFC), a member of the World Bank Group,
has provided USD $774 million commercial loan for 12 projects for the development
of private sector in Bangladesh in FY 12-13, according to Economic Relations
Division (ERD) sources.
The IFC is also providing advisory support, including facilitating improvements in
doing business and promoting competitiveness of small and medium enterprises to
safeguard jobs. The ERD sources said the IFC is keen on providing huge amount of
commercial credit, particularly for the power sector. On the sidelines of a meeting
with Jin-Young-Cai, executive vice-president of the IFC, on October 10, 2010, at the
Commonwealth Finance Ministers’ meeting (CFMM) and annual meetings of the
World Bank (WB) Group and International Monetary Fund (IMF) in Washington,
finance minister AMA Muhith had pointed out that the IFC had been making major
investments in telecommunications by offering trade financing in Bangladesh.
Muhith also urged the IFC to go ahead with financing projects under the public-
private partnership.

12. 12
The IFC has a large advisory programme in Bangladesh, with supports from the UK,
the European Union, the Norwegian Agency for Development Cooperation, Dutch
and other donor financiers. It works in areas that are crucial for the country's
economy, such as agriculture, infrastructure, financial markets and energy efficiency.
The IFC supported the financial sector development in Bangladesh with USD $401
million in committed investments in FY12-13. The IFC assists the Bangladesh
government in simplifying business regulations and bringing down the cost of doing
business, by supporting the growth of the private sector.
In keeping with the government’s agenda for a “Digital Bangladesh”, the IFC
promotes efficiency and transparency in public sector agencies through e-
governance, establishment of an online tax payment portal, automation of the
registrar of joint stock companies, the sources added.
$774m IFC credit to boost private sector

13. 13
Dhaka Chamber of Commerce and Industry (DCCI) has
proposed the National Board of Revenue to increase tax free
income limit for individual tax payers to Tk 3 lakh from
the existing Tk 2 lakh 20 thousand in the forthcoming
national budget (2014-15). The chamber also recommended
raising the tax exemption limit to Tk 3.5 lakh from Tk 2.25
lakh for female and elderly citizens and also to Tk 4 lakh
from Tk 3 lakh for disabled.
It was recommended while DCCI president Mohammad
Shahjahan Khan placed a 59-point budget recommendation
to NBR chairman Md Ghulam Hussain at NBR in the
capital yesterday in considering with creating a business and
industry-friendly budget for the forthcoming fiscal.
Khan called upon the government to prepare the upcoming
budget considering the losses incurred because of the recent
political instability and violence.
Dhaka Chamber for raising tax
ceiling

14. 14
NBR chairman Md. Ghulam Hussain assured the DCCI President
of considering the placed recommendations by DCCI. The chief
tax administrator also discussed the pros and cons of the present
business environment of the country.
In the budget proposals, the Dhaka Chamber also urged the NBR
for reducing corporate tax on listed companies from the
prevailing 27.5 per cent to 20 per cent. DCCI also
recommended increasing the limit of annual turnover tax from
Tk 8 million to Tk 10 million and fix up the turn over tax rate at
2 per cent from the current 3 per cent.
Moreover, the chamber also called upon the NBR to continue
special incentives to the country’s small and medium enterprises.
DCCI also pledged to increase VAT free investment capital in
plant and machineries equipment from the existing Tk 8 million
to Tk 10 million. Demanding tax exemption on the income of
chamber or trade bodies for being non-profit organizations, the
chamber called upon the NBR to provide 15 per cent cash
incentives to the export-oriented plastic industries.
Dhaka Chamber for raising tax
ceiling

15. 15
I made this presentation with help of
internet and the official website of
“The Independent” a popular English
newspaper of Bangladesh.
. http://www.theindependentbd.com
. http://www.eindependentbd.com
Conclusion

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