[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Inflation shoots up to 9.86pc in Jan

Inflation in Bangladesh climbed 45 basis points to 9.86 percent in January, official figures showed yesterday, defying measures undertaken by the central bank recently to bring consumer prices under control.

www.thedailystar.net

Inflation shoots up to 9.86pc in Jan​

Design: Kazi Akib Bin Asad

Inflation in Bangladesh climbed 45 basis points to 9.86 percent in January, official figures showed yesterday, defying measures undertaken by the central bank recently to bring consumer prices under control.

The Consumer Price Index rose 9.41 percent in December, according to the Bangladesh Bureau of Statistics (BBS).

Non-food inflation pushed up inflation last month: it surged 90 basis points to 9.42 percent.

Food inflation fell slightly to 9.56 percent from 9.58 percent.

The higher inflation highlights the continuing cost-of-living crisis facing the poor and low-income groups.

Inflation has stayed over 9 percent since March and at an elevated level since May 2022, owing to the lingering impacts of the coronavirus pandemic and the Russia-Ukraine war.

Globally, central banks pushed their interest rates speedily and sufficiently – many to record highs -- to make loans expensive, thus bringing inflation largely under control. But the BB acted in a cautious manner and insufficiently.

The central bank visibly got down to work in June last year when it raised the policy rate to a record high, scrapped the lending rate cap of 9 percent, and put in place a new interest rate-setting mechanism.

Since inflation showed no signs of cooling, the central bank announced an array of measures in the middle of January.

The central bank raised the benchmark policy rate by 25 basis points to 8 percent to raise the cost of funds. This was the eighth straight spike since the tightening cycle began in May 2022.

It also lowered the private sector credit growth target.

All these measures are aimed at bringing down inflation to 7.5 percent by the end of the current fiscal year.

Analysts described the measures as inadequate.

Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said the supply situation has not improved and the prices of basic items have remained at an elevated level.

"The items that have been seen import duty cuts have also witnessed a spike in prices. There is supply shortage and imports are also lower."

Mansur thinks the central bank's measures are yet to have an impact. "It will take time."​

 

[Saif]

Govt to promote value-added products for post-LDC era

The government is considering further incentives while emphasising ICT and advanced technology in order to increase the production of value-added products as part of preparations for graduation from least developed country (LDC) status, Chairman of the National Board of Revenue (NBR) Abu Hena Md...

www.thedailystar.net

Govt to promote value-added products for post-LDC era​

NBR chairman says

The government suspends an assistant commissioner of taxes (ACT) for allegedly helping taxpayers evade tax through forgery. Photo: NBR website.

The government is considering further incentives while emphasising ICT and advanced technology in order to increase the production of value-added products as part of preparations for graduation from least developed country (LDC) status, Chairman of the National Board of Revenue (NBR) Abu Hena Md Rahmatul Muneem said yesterday.

"The IT sector and car manufacturing sector benefited last year and more opportunities will be given in the future. The work of the government is to create the environment, but you have to implement it," he said.​

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Muneem made the comments while addressing as chief guest a pre-budget meeting, organised by the Chittagong Chamber of Commerce and Industry (CCCI) at the Bangabandhu Conference Hall of the World Trade Centre in Chattogram's Agrabad area.

He also said that the industries of the country must become self-sufficient and proficient in order to confront the obstacles that come with transitioning from LDC status to the developing country status.

To this end, he emphasised the need for industries to become capable of not only confronting tax and VAT challenges, but also various other obstacles in order to compete in the global market.

He added that the nation would be unable to overcome these challenges if industries which require assistance through tax and value added tax (VAT) rebates were not adequately supported.

He also urged to move into more advanced sectors, saying: "Now is the time to turn our attention to the shipbuilding sector instead of the shipbreaking industry. Bangladesh cannot be the destination of foreign waste."

The CCCI earlier submitted around 12 proposals for the NBR for consideration in the next national budget.

CCCI President Omar Hazzaz, who chaired the meeting, proposed to raise the tax-free income limit for individual taxpayers from Tk 3.5 lakh to Tk 4 lakh considering the current global situation and persistent inflation.

He also proposed to reduce VAT on different goods from 15 percent to 8 percent since businesses and the general public are suffering due to the dollar crisis and inflation.

Managing Director of BSRM Group Aameir Alihussain mentioned that businesses face long delays in getting refunds after paying advance tax and VAT, underlining that businesses urgently need such refunds since they are currently facing a liquidity crisis.

In his speech, Muneem said they were working to solve these problems.

NBR member Md Masud Sadik said some traders were misusing government benefits.

"The government has given duty exemption of Tk 750 crore on various food products in the past year but the benefits have not reached the people. They (traders) have kept the price high, showing various reasons," he said.

Leaders of different business bodies, including the Bangladesh Garment Manufacturers and Exporters Association, Real Estate and Housing Association of Bangladesh, Bangladesh Frozen Food Exporters Association, Shop Owners Association, Clearing and Forwarding Agents Association, Rubber Garden Owners Association, and others also spoke.​

 

[Saif]

Walmart to source more from Bangladesh

Walmart's Executive Vice-President Andrea Albright says in meeting with Salman F Rahman

www.thedailystar.net

Walmart to source more from Bangladesh​

Walmart's Executive Vice-President Andrea Albright says in meeting with Salman F Rahman

Walmart today expressed its interest to work more closely with Bangladesh and procure more items as the US retail giant believes the country is a lucrative destination for sourcing, said Andrea Albright, executive vice-president for sourcing of the company.

Albright made the comment at a meeting with Salman F Rahman, the prime minister's adviser on private industries and investment, at the latter's office in Dhaka.​

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The executive vice-president added that Walmart has been sourcing garment items from Bangladesh for many years although the volume reduced a bit during the Covid-19 pandemic.

However, the quantity of garment items sourced from Bangladesh will increase soon, she said, hoping that some other products would be added to the existing basket of goods.

Paul Dyck, vice-president of Walmart on global government affairs and business diplomacy, and other senior officials of the company were also present at the meeting, according to a statement from the adviser's office.

During the meeting, Rahman urged Walmart's top officials to source more from Bangladesh and include electronic products, agri products, packaged spices, jute goods, and also garment items made from man-made fibre.

Currently, Walmart is Bangladesh's second-largest international garment buyer after Swedish retail giant H&M. Walmart sources nearly $4 billion worth of garment items from Bangladesh annually while H&M sources more than $4 billion annually.

Rahman also said garment factories in the nation have been maintaining global standards of compliance and that workplace safety has been strengthened.

"Many of Bangladesh's garment factories have passed the world's highest standards of testing," he said.

The adviser briefed them as Bangladesh's economy has been rebounding from the severe fallouts of the Covid-19 pandemic and the Russia-Ukraine war.​

 

[Saif]

Turkish beverage giant Coca-Cola Icecek acquires Coca-Cola Bangladesh for $130m

In a strategic move to strengthen its presence in the South Asian market, Coca-Cola İçecek, the Turkish beverage giant...

www.newagebd.net

Turkish beverage giant Coca-Cola Icecek acquires Coca-Cola Bangladesh for $130m​

United News of Bangladesh . Dhaka | Published: 13:00, Feb 16,2024 | Updated: 22:05, Feb 16,2024

In a strategic move to strengthen its presence in the South Asian market, Coca-Cola İçecek, the Turkish beverage giant, has inked a deal to acquire Coca-Cola Bangladesh Beverages Limited for a whopping $130 million.

The share purchase agreement was signed between CCI, its wholly-owned subsidiary CCI International Holland BV and a subsidiary of The Coca-Cola Company.

The agreement outlines the acquisition of the entire 100 per cent shares in CCBB, with CCIHBV emerging as the primary direct shareholder.

CCBB holds a pivotal role in Bangladesh as one of the key players in the production, sale and distribution of both sparkling and still brands under The Coca-Cola Company umbrella.

As per the terms of the agreement, CCI is set to acquire the complete shareholding of CCBB at an equity value determined by subtracting CCBB’s estimated net financial debt as of the closing date from an enterprise value of $130 million. A post-closing price adjustment mechanism will come into play after a comprehensive closing audit to ascertain the precise net financial debt amount of CCBB as of the closing date.

The acquisition is anticipated to be funded through CCIHBV’s existing cash resources, and it is expected to have a modest impact on CCI’s net leverage. This strategic move not only expands CCI’s global footprint but also underscores its commitment to capitalising on growth opportunities in emerging markets. The acquisition is subject to regulatory approvals and customary closing conditions and is expected to further solidify CCI’s position as a major player in the beverage industry on the Indian subcontinent.
— UNB​

 

[Saif]

Bangladesh seeks DFQF in Swiss market until 2029

Foreign Minister Dr Hasan Mahmud has urged Switzerland to follow suit of the European Union (EU) in extending duty-free and Duty-Free Quota-Free (DFQF) trade preferences until 2029. The minister also invited Swiss investment in IT and agro-processing sectors in Bangladesh, reports UNB. He stresse

thefinancialexpress.com.bd

Bangladesh seeks DFQF in Swiss market until 2029​

FM also seeks Swiss investment in IT, agro-processing sectors​

FE ONLINE DESK
Published :
Feb 13, 2024 13:06
Updated :
Feb 13, 2024 13:06

Foreign Minister Dr Hasan Mahmud has urged Switzerland to follow suit of the European Union (EU) in extending duty-free and Duty-Free Quota-Free (DFQF) trade preferences until 2029.

The minister also invited Swiss investment in IT and agro-processing sectors in Bangladesh, reports UNB.
He stressed on the protracted Rohingya crisis and sought Swiss assistance and support in expediting the Rohingyas’ safe, dignified, and swift repatriation to Myanmar.

Ambassador of Switzerland to Bangladesh Reto Renggli met the Foreign Minister at his office on Monday and praised Bangladesh’s impressive value chain development journey from the 70’s to this day and flagged the scope of supply chain development where the Swiss side could chip in through their food processing machinery industry.

The ambassador reassured continued Swiss humanitarian support to the Rohingyas, recognising the recent border security issues as well.

The foreign minister and the Swiss ambassador shared their views on wars and conflicts in different parts of the world, including in Ukraine, Gaza and the Red Sea and their resultant negative impacts on the economies of the two countries.

Mr. Renggli congratulated Foreign Minister Dr Hasan on his appointment as the foreign minister.

The foreign minister termed the relations between the two nations as historic and strong.

The Swiss ambassador lauded the spectacular socio-economic development of Bangladesh over the last decade.
Mentioning Swiss President’s visit to Bangladesh in 2018 and Prime Minister’s visit to Switzerland in 2023, the envoy termed Bangladesh-Switzerland ties as ‘solid’.

He expressed hope for signing bilateral Air Services Agreement in March and holding the next Foreign Office Consultations in April to advance bilateral relations further.

Switzerland is a steady partner of Bangladesh in promoting key values - good business practices, multilateral cooperation and a vibrant civil society.​