Govts shield businesses
October 25, 2008
Governments rolled out fresh measures yesterday to shield businesses and banks from the financial maelstrom as deepening fears of a global recession ensured another battering for stock markets.
As new figures showed cross-border lending by banks had suffered its biggest decline for a decade, French President Nicolas Sarkozy announced a sovereign wealth fund to protect strategically important firms while Britain’s government leant on bank bosses to start loosening the purse strings.
The fresh falls came despite an announcement of further measures designed to restore confidence in the finance sector and among consumers.
Japan’s central bank said it had injected 600 billion yen (6.2 billion dollars) into the short-term money market while the International Monetary Fund moved to bail out Pakistan, which could need as much as 15 billion dollars to help pay mounting foreign debt.
Governments around the world have unveiled packages over the last month totalling more than three trillion dollars, including loan guarantees and cash injections, to restore confidence to the financial system and reverse a sharp slowdown in lending.
The scale of the slowdown was illustrated by figures from the Bank for International Settlements, the world’s biggest central banking body, which showed cross-border lending by banks fell 1.1 trillion dollars in the second quarter of 2008.
Banks were also hit by one trillion dollars’ worth of withdrawals, particularly by clients in the United States, Britain and Switzerland.
Sarkozy said the events of recent weeks had discredited free-market ideology and showed that economies needed strong state intervention to succeed.
“The ideology of the dictatorship of the market … is dead,” he said, in a speech in which he announced that France would set up a sovereign wealth fund to “intervene massively” in companies of national strategic importance.
In Britain, the finance minister was meeting the heads of major banks to urge them to relax their lending conditions for small firms.
Chancellor of the Exchequer Alistair Darling and Business Secretary Peter Mandelson were expected to tell bank chiefs that they had to help small firms through the looming recession.
Europe yesterday called for greater help from Asia in tackling the “unprecedented” challenges of the global economic crisis, on the eve of a summit in Beijing between leaders of the two regions.
However a diplomatic spat threatened to distract the two-day Asia Europe Meeting (ASEM), after the European Union parliament defied warnings from China and awarded its major human rights award to a prominent Chinese dissident.
With both continents struggling to cope with the worst economic meltdown since the Great Depression, the 43 nations belonging to ASEM were expected to see the two regions agree on tighter cooperation in tackling the turmoil.
“We swim together or we sink together,” European Commission President Jose Manuel Barroso said after arriving in Beijing, as he called for Asia and Europe to work together if they were to survive the crisis.
“We need Asia to be on board, and more particularly countries like China, India (and) Japan,” he told reporters, outlining the “unprecedented” challenges facing the global economy, under threat of a looming worldwide recession.
Source: The Daily Star
Gas supply gets a boost
October 11, 2008
Fifteen million cubit feet of gas is set to be added to the transmission line Friday, a senior government official said.
Jalal Ahmed, chairman of Bangladesh oil, gas and mineral corporation Petrobangla, said Thursday that the gas will be produced at Fenchuganj gas field.
In a span of one week, 45 million cubit feet gas will have been added to the national transmission line, with 30 million cubic feet already having been supplied from Bangura gas field in Comilla.
Jalal Ahmed said the rig now being used at Fenchuganj would be utilised for gas extraction from two more wells in Bakhrabad. Twenty million cubic feet gas will be extracted from the wells.
He said a new well would be dug in Titas gas field by December for another 25 million cubic feet of gas. The well at the Titas gas field was earlier capped as gas was leaking at different places.
The Petrobangla chief said over 300 million cubic feet of gas would be added to the national supply over the next three years.
The news comes at a time when the government temporarily barred new gas connections to new industrial factories in Chittagong due to a gas crisis. Jalal Ahmed said 10 million out of 30 million from Bangura was to be supplied to for Chittagong industry.
And the 15 million cubic feet from Fenchuganj will be routed to Dhaka.
According to Petrobangla, the country has reserves of 7.5 trillion cubic feet gas. Another, five trillion cubic feet is potentially available in various fields of the country. Probable unexploited gas reserves total 8 trillion cubic feet.
The country’s 79 wells in 18 gas fields can produce 1,834 million cubic feet gas a day. On Thursday, gas production stood at 1,684 million cubic feet.
Of them, 240 million cubic feet is supplied to fertiliser factories against a demand of 289 million cubic feet, and 613 to power plants against a demand of 861 million cubic feet.
Prices of vegetables, onion, pulses on rise
October 11, 2008
Staff Correspondent
Prices of the vegetables, pulses, onion, fish and eggs have gone up this week while that of different varieties of rice and other essentials remain unchanged in the city markets.
Besides, price of packed edible oil price has soared slightly while prices of all types of fish are spinning out of the reach of the city dwellers and now it is difficult for the commoners to have their meals with fish.
The price of both loose and packed edible oil which recorded a downward trend last few weeks has started soaring up suddenly despite fall in international markets. Yesterday Soya bean oil (packed) was selling at Tk 108 per liter and another variety of loose Soya bean oil was available at Tk 85 per litre.
Yesterday, Palm oil was selling between Tk 70-74 per litre. Pulse (local) was selling at Tk 110 per kg and imported pulse (Indian) was selling at Tk 88 per kg.
Suddenly prices of both local and imported onion went up by a big margin; yesterday local onion was selling at Tk 36 while the imported onion was selling at Tk 30 per kg.
Yesterday, prices of most varieties of fish have continued to record upward trend and went apparently out of the reach of the middle income groups. Winter is approaching closer, but it is yet to have any impact on the vegetables prices and the traders said there is a lack of enough supply of vegetables in the city markets, that’s why the price of most of the items are increasing day by day.
Price of green chilli has gone up by Tk 10 per kg yesterday and it was selling at Tk 60 per kg.
Yesterday, lata was selling at Tk 35 per kg, pari at 35/ 36, miniket 42/43 and najirshail at Tk 37-42 per kg. Chicken broiler was selling at Tk 125 per kg, yesterday. Local garlic was selling at Tk 40 per kg.
Yesterday Ruhi was selling at Tk 300 per kg, small-sized shrimp at Tk 500 per kg, medium-sized hilsha at Tk 350 per kg. Beef was selling at Tk 220 per kg and mutton at Tk 300 per kg. Flour was selling at Tk 36 per kg and atta at Tk 34 per kg. Gram was selling at Tk 52 per kg.
On Friday, Potato was selling at Tk 18, cucumber at Tk 60, tomato at Tk 80, Korola at Tk 36 per kg, Brinjal at Tk 60 per kg, ladies finger at Tk 28 per kg and Patal at 24 per kg.
Price of eggs also has also gone up slightly. Yesterday, per dozen egg (chicken) was being sold at Tk 80-88 while duck egg at Tk 70-74 per dozen.
Source: The Bangladesh Today
Draft ICT Roadmap draws serious criticism
September 24, 2008
The draft ‘ICT Roadmap’ has faced strong criticism soon after its launch with stakeholders alleging that it contains proposals that are contrary to national laws and administrative integrity.
The government paper carried contradictory proposals like upgrading divisions to federal states and creating imaginary post like ‘chief digital adviser’ under the chief adviser for implementing the roadmap.
Sources in the information and communication technology sector alleged that the draft prepared at a cost of about Tk 2.5 crore was untenable and inadequate, and carried statements undermining the country’s parliament.
The draft in its proposal states that ‘development of clusters of high-growth ICT companies based around hi-tech parks in each division of Bangladesh by 2013, or federal states, if they are so upgraded by that time’.
It said that the ICT Roadmap will deliver through a range of strengthened governance mechanisms including an envisaged ICT taskforce with appointment of a full-time ‘chief digital adviser’ who will report directly to the taskforce and the chief adviser.
Among many weaknesses for ICT in Bangladesh, the paper pointed out, ‘Parliament is non-functional, so weaker democratic legitimacy behind government initiatives.’
Concerned quarters have questioned the farsightedness of the consultants in seeing Bangladesh split into federal states in future, presence of chief adviser at least till 2013 and the country having a ‘non-functional parliament’ as stated in the draft.
Formulating the roadmap or action plan for the information technology sector was assigned to UK-based company, Gov3 Limited and their two local partners—Spinnovation Limited and D.Net.
The government took the initiative to formulate the national ICT Roadmap for Bangladesh under the Economic Management and Technical Assistance Program (EMTAP), managed by Bangladesh Computer Council with assistance from the World Bank.
Concerned sources said the draft roadmap would lead Bangladesh to ‘nowhere’ and the paper was certainly not fit for Bangladesh.
ICT sector sources said the draft was much below expected standard and the preparation process involved irrelevant people.
They alleged that the consultants had made it by ensuring foreign trips for several bureaucrats in the name of seeing development of ICT sector there.
The draft of the national ICT Roadmap was made public on Thursday at a function attended among others by agriculture adviser CS Karim, and chief adviser’s special assistant Professor M Tamim, science and ICT secretary SM Wahiduzzaman, Centre for Development Research chairman Mizanur Rahman Shelly, Bangladesh Computer Society chairman Aminul Hoque, Bangladesh Computer Samity chairman Mustafa Jabbar and Bangladesh Association of Software and Information Services (BASIS) president Habibullah N Karim.
CS Karim, discussing on the draft, said the structure of the government with a ministry and the statutory bodies under it should be sufficient for implementation of the development plans for IT sector.
The requirement of novel bodies inconsistent with the government structure was not possible, he noted.
The adviser felt that stakeholders were not appropriately sensitised to the IT Roadmap and as such it remained inadequate. He directed that all stakeholders must be within the ambit of interaction and the process had to be wholesome and comprehensive for success of any roadmap.
‘We have very little resources, we can’t waste any. We must have precise and doable targets. Don’t re-invent the wheel. Work from within the system and within the limitations of statutory requirements,’ he said.
SM Kamal, a former president of BASIS, failed to understand how this roadmap was released with the ICT policy still under review.
M Tamim, special assistant to the chief adviser, said that the roadmap lacked sufficient directions for development of skilled manpower for IT sector.
‘The roadmap said that high speed internet facilities should be provided to students for skilled development. More details should be there on skilled manpower development,’ he observed.
Tamim said that the country lacked skilled manpower because of wrong policy taken earlier. ‘The main focus of skill development was fixed earlier to cater to the IT need of USA. It would have been better if the aim was set to meet homegrown need.’
He also opposed the recommendations on privatising state-run Bangladesh Telecommunications Company Limited, which was formed recently by turning Bangladesh Telegraph and Telephone Board into a company.
‘Why should it be privatised? It is true that the government should not engage in business. That is why state-run companies are formed. State-run companies can compete with other business entities under good regulatory framework,’ he observed.
During open discussion AKM Shamsuddoha of Dohatec stated that the draft roadmap failed to take into account the strength and achievements of the IT sector. He mentioned the successful marks of IT in the country’s banking sector, the stock market, utility billing, education boards, voters’ registration and National ID Project.
The proposed roadmap failed to say how Bangladesh’s ICT sector should prepare itself to secure a rightful share in the global market.
The draft was a poor sifting through a host of recommendations made in different forums, Doha said.
Khairuzzaman of the Dhaka Stock Exchange said that the roadmap did not address key technical issues and suggested that special emphasis should be placed on security.
Source: New Age
Govt releases Tk 305cr cash subsidy for 11 sectors
September 18, 2008
The Ministry of Finance through a circular informed the Bangladesh Bank and other parties concerned about the disbursement of the Tk 304.75 crore cash incentive fund for exporters in the current fiscal year, an official of the ministry said.
As pledged, the government owes the exporters of those 11 selected sectors around Tk 300 crore in cash subsidies at various rates to be disbursed on submission of export receipts.
The fund released from the ‘export subsidies’ head of the current budget also includes the Tk 3.67 crore subsidy for tobacco export that has remained unpaid since FY2006-07, the official added.
But, as of July 7, the government owed the exporters Tk 296 crore as cash subsidies, up from Tk 233 crore at the end of FY08. The arrears were only Tk 62 crore in FY ‘07.
The government owes exporters of RMG Tk 121 crore, frozen foods Tk 62 crore, leather and leather goods Tk 32 crore, jute and jute goods Tk 60 crore, vegetables and fruits Tk 11 crore, and potato Tk 7 lakh.
Of the newly-disbursed Tk 304.75 crore, the ministry released Tk 163.77 crore against exporters of readymade garments, Tk 79.28 crore against frozen food, Tk 34.38 crore against leather and leather goods, Tk 11.32 crore against raw and Tk 10.30 crore against processed agricultural products, Tk 0.96 crore against handicrafts, 0.43 crore against crushed bones, Tk 0.30 crore against potato, Tk 0.29 crore against Halal meat, and Tk 0.01 crore against poultry products.
The apparel exporters get cash subsidy at the rate of 5.0 per cent of their exports, frozen foods 10 per cent, leather 15 per cent, agriculture 20 per cent, meat 20 per cent, and poultry 15 per cent.
Meanwhile, the government has decided to phase out the cash subsidy for exports amid allegations that some exporters had been misusing the incentive.
Earlier, the government took an initiative to clear the cash subsidy arrears of the country’s export sectors within 30 days of application.
Japan-BD firm to invest in Karnaphuli EPZ
September 15, 2008
M/s. Daiei International Limited a Bangladesh-Japan company will set up a Eco Parking Machine Manufacturing Industry in the CSD area of Karnaphuli Export Processing Zone, says a press release.
This Jointly owned company will invest about Taka 25 crore in setting up their plant and will produce to export annually 1300 pcs of Eco Parking Machine. The company will also create employment opportunity for 341 Bangladeshi including 10 foreign nationals.
An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s. Daiei International Limited in BEPZA Complex, Dhaka recently. Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Vivekaanda Sikder, Managing Director of M/s. Daiei International Limited executed the agreement on behalf of their respective organization. Officials of BEPZA and the company were present on the occasion.
Source: bdnews24
Handloom sector leads distress women towards self-reliance
September 13, 2008
A boom in the handloom industry has been contributing to the rural economy, helping hundreds of distressed women and unemployed girls to achieve economic self- reliance in recent years.
The hapless women are successfully changing their fortunes by sewing garments and other income generating activities, ushering in a new era in rural economy and women empowerment in the north, dubbed as poorest part of the country.
Many of them have already achieved their economic self- reliance by their own initiatives and external assistance from different organizations, which are providing training, inputs and creating marketing facilities for their products to sell.
Over 50,000 distressed women, mostly divorced and unemployed young girls of rural and urban areas, have become partially self- reliant, while many others are following the same suit, making financial contributions to their families.
Nearly a dozen of government departments, as much as local NGOs and leading NGOs like Grameen Bank, RDRS, ASA, BRAC are playing vital role to encourage women through training, credits and supply of inputs including sewing machines.
Production of readymade garments made by handloom fabrics has been growing fast as more women, widows, divorcees and teenaged girls are becoming interested in engaging sewing as a profession.
Hundreds of the distressed and unemployed young girls of greater Rangpur have been showing more interests in getting training on preparing readymade garment products in the army- assisted training centres at village Pairaband in Rangpur, Kurigram, Gaibandha and other areas. They are getting jobs at renowned garments factories and abroad after completion of their training courses at these centres being run under the assistance of BKMEA and BGMEA, officials said. Concerned NGO experts and officials told BSS that the distressed women and girls are showing more interests in sewing profession. They also expressed the hope that the profession would help women empowerment at the grassroots level.
The female sewers in both rural and urban areas are producing mainly garments like blouse, petticoat, shemiz, kamiz, salwar, scurf, maxi, baby wears, shirts, pants, fotua, caps and other readymade wears.
Talking to BSS Mamtaz Begum, 28, and Ful Banu, 30, of village Boalmari under Roumari upazila in Kurigram said they sew baby clothes, while their husbands sell those in local markets and earn about Taka 18,000 per month.
Our sons and daughters are going to schools and we are now living very well, though the days in past were very bad, they said.
School-going students Mahfuza, 15, Parveen, 16, and Hanifa, 14 of Boraikandi village in the same upazila said they sew clothes, earn money and studying at Boraikandi Alia Madrasha.
Women who have marked success said that they are now using sanitary latrines, their children are going to schools, taking care of their health, got access to safe water, preventing child marriage and dowry and feel empowered in family decision making.
With their efforts in the handloom sector, most of the successful women have been cultivating vegetables and fruits at their homesteads.
Source: The Bangladesh Today
Ban on trade union activities relaxed
September 8, 2008
The government has relaxed a ban on trade union activities, on nine conditions, allowing the workers’ organisations to hold indoor programmes, the government announced Sunday.
The home ministry notice said: “The government, in line with the Bangladesh Labour Act 2006, has relaxed the ban on activities of trade unions in industries, commercial institutions, ports and factories on nine conditions”
The trade unions will now be able to hold polls, taking permission from the concerned metropolitan police commissioner or district magistrate, it added.
The nine conditions include informing the police and the administration 48 hours before holding any meeting.
No more than 100 people will be allowed to attend any such meeting.
The unions must apply for special permission for any rally of more than 100. But the number of attendants will not exceed 500 by any means.
Any such rally must be held indoors.
There will be no politics allowed at any meetings or rallies. No gathering will be broadcast live, the conditions include.
The government imposed the ban on trade union activities alongside the ban on political activities on Jan 11 last year when a state of emergency was imposed.
The trade unions have since been demanding withdrawal of ban on their activities.
Source: biz.bdnews24.com
Bangladesh to call industrialised nations to cut emissions
September 7, 2008
Bangladesh is all set to call upon the industrialised developed countries for cutting deeply their greenhouse gases since the present adaptation is required in the least developed countries due to the historical emission of the rich nations.
” Future adaptation needs depend on historical and current emissions which are too high,” the Bangladesh will argue at the upcoming Bangladesh-UK Climate Conference scheduled to be held on September 10 in London, said a source close to the official delegation here today.
” Unless this happens, deeper ranging adaptation needs in future; some human-physical systems may break down; may completely thwart all development prospects and put economy and society in total disarray - international peace may be the casualty,” the Bangladesh delegation would point out.
Finance Adviser Dr AB Mirza Azizul Islam will lead a 39-member delegation to the conference. Special Assistant to the Chief Adviser in charge of Ministry of Environment and Forest Barrister Raja Devasish Roy, a number of secretaries, civil society leaders and experts will join the delegation. Bangladesh has done fairly well in several development areas
despite such huge odds and expects to be a middle income country in a decade and half - 4 out of last 5 years posted 6% or higher growth. Poverty has fallen, though still very daunting numbers of poor. Child mortality fallen and gender parity in primary education achieved. But, all these gains and Bangladesh’s future well-being under
grave threat due to climate change, said Dr M Asaduzzaman, Research Director of BIDS and a member of the Bangladesh delegation. Dr Asad pointed out that Bangladesh had already prepared a national climate change strategy and action plan with six pillars including food security, poverty and health, comprehensive disaster management, infrastructure, research and knowledge management, mitigation and low carbon development, and capacity building.
Raja Devasish called the strategy and action plan as “a living document” and said it would be reviewed and amended based on country development priorities , status of international negotiations, science and technology of climate change and its management.
He said that interventions under the action plan will be sectoral responsibility and ministry of environment and forest will play the coordination and facilitation role.
All adaptation to be financed on grant basis, he told an inter-ministerial preparatory meeting last week and pointed out that government of Bangladesh had already allocated US$ 45 million as a starter from its own resources under the current year’s national budget for funding adaptation programmes.
Raja Devasish also underscored the need for exploring other possibilities including multi partner trust fund (MPTF), bilateral funds, existing and proposed funds under UNFCCC. MPTF, if any, he made it very clear that would be joint responsibility of government of Bangladesh any trustee(s) or similar body so appointed.
All financing to follow programmes and projects based on Bangladesh CCSAP.
Leader of the Bangladesh delegation Dr Mirza Aziz, who is now in Accra, will go to London, UK to attend the conference.
Source: The Bangladesh Today
Low-lying areas in city’s eastern part flooded
September 6, 2008
 |
|
The Padma flows over a road near Balasur intersection at Srinagar in Munshiganj yesterday as the river water crossed the danger level there. Photo: Anisur Rahman
|
“Low-lying Areas in Dohar and Nawabganj are already under water. More areas are likely to be inundated if the Balu, the Shitalakhya, the Turag, the Dhaleswari and the Tongi canal keep swelling,” said Flood Forecasting and Warning Centre (FFWC) Assistant Engineer Arifuzzaman last evening.
Fed with water from upstream, water levels of all major rivers–the Padma, the Brahmaputra-Jamuna and the Meghna–started to inflate yesterday inundating fresh areas mainly in the northern and central part of the country. This marooned thousands and affected Aman crops.
Rivers will continue to swell for the next two-three days and more areas in Bogra, Jamalpur, Sirajganj, Tangail, Munshiganj, Manikganj, Rajbari, Faridpur, Madaripur, Shariatpur, Chandpur and Dohar and Nawabganj of Dhaka, Shibganj and Sadar upazilas of Chapainawabganj are likely to be inundated by the next 48 hours, FFWC report said.
“The water level will eventually come down and the flooding will not last long,” Arifuzzaman said.
Meanwhile, two children–Seraj, 9, and Mehedi, 7–drowned in floodwater at Chalanbeel under Tarash upazila in Sirajganj yesterday.
Many flood-affected people took shelters on embankments and are suffering due to scarcity of food and drinking water, our correspondents reported.
Fresh areas in Gaibandha town went under floodwater as gushing water breached a flood-protection embankment at Kuthipara.
A large crack has developed on the Brahmaputra flood-control embankment at Kathalmari, reports our correspondent in Gaibandha. Water Development Board (WDB) is trying to stop the seepage by dumping sandbags.
At least 10,000 dwellings went under knee- and waist-deep water. The marooned people took shelter on flood-control embankments at Syedpur and Balashi in Fulchari upazila.
Our correspondent in Sirajganj reports: The Jamuna was flowing 54cm above the danger mark yes terday and about 20,000 people in the district are marooned. The district administration opened up 14 flood shelters in Sirajganj Sadar.
Even though district relief officer Abul Khayer said they released 83 tonnes of rice as relief, visiting different areas the correspondent found out that most of the affected people did not cget any relief materials.
Due to strong currents in the Jamuna, many flood-protection embankments and eight levees have become vulnerable to erosion. These may collapse any time, authorities concerned said.
Around 15 metres of a flood-protection embankment on the Jamuna at Talukdarpara of Sariakandi washed away yesterday morning, reports our staff correspondent in Bogra.
About 150 metres of the same embankment gave in to the surging water Wednesday marooning over 3,000 families.
WDB Bogra Circle Superintendent Engineer Sheikh Abdul Momin said they have repaired the 15-metre section and will start repairing the 150-metre section soon.
The homeless took shelter in schools, public institutes and houses of relatives. Army personnel distributed rice and other relief materials to around 300 affected families.
Quoting Department of Agriculture Extension sources, a correspondent in Lalmonirhat reports: Flooding affected about 20,000 farmers and damaged crops on around 1,300 hectares of land. Crops on 720 hectares of land were destroyed.
The damage to crops is estimated around Tk 7 crore.
Our staff correspondent in Rajshahi reports: The Padma has left only 25 yards of land between Bangladesh and India at Char Khanpur of Paba. There will be no land there between the two countries if the Padma devours this piece of land.
Members of Bangladesh Rifles (BDR) at Char Khidirpur border outpost say that the outpost is also likely to be eroded by the Padma.
“The major problem is that the border pillar-164 is at stake as the river is now flowing very close to the border pillar,” said a BDR official.
Acting Commanding Officer of BDR Battalion 37 Maj Yasin said there will be no land at this border point if the river erodes the 25 yards of land.
Around 2,000 people of Bagha upazila are homeless for over two weeks while hundred others in the char areas are facing food shortages. So far, 12 people died of snakebites. Two others died in boat capsize in Rajshahi.
Our correspondent in Satkhira reports: The overall flood situation was improving in nine villages under Gabura union in Shyamnagar upazila as locals were able to reconstruct a collapsed embankment at Khalshibunia on the Kabodak. The embankment collapsed Thursday.
The flooding destroyed 4,495 houses and affected 15,000 people in the area.