The New Nation - Internet Edition

Benazir Bhutto prays prior to the start of a press
conference at her residence in Karachi on Friday. AP
Photo

Agencies, Karachi

Former Pakistani prime minister Benazir Bhutto has called the deadly terrorist attack on her convoy "an attack on democracy" and vowed it would not deter her political campaign or her fight for human rights.

Bhutto, 54, hopes to earn a third term as prime minister in January's parliamentary elections. She returned to Pakistan on Thursday after a self-imposed, eight-year exile.

"What does the attack last night signify? The attack was more an attack on the unity and integrity of the country than on any individual or any one political party," Bhutto said at a news conference on Friday, a day after the terror attack that killed 136 people.

"It was an attack on Pakistan itself. It was an attack on their political rights, on the political process and on democracy itself. The attack last night was a message sent by the enemies of democracy to all the political parties of the country.

"It was intended to intimidate and blackmail all the political forces and elements working for democracy and human rights in the country. It was a warning not only to me and the PPP (People's Political Party) but to all political parties -- indeed, to the entire civil society."

After the blast, police retrieved the head of a possible suspect, which was being analyzed at a forensics lab.

Police said they were due to release a sketch soon and are offering about $83,000 (5 million rupees) for information leading to possible arrests.

Bhutto was traveling from the airport after returning to Pakistan when the bomber struck her convoy late Thursday. She was not hurt.

A defiant Bhutto on Friday said she did not blame the government for the attack, but complained of poor security preparations. She blamed extremists who oppose her support for Pakistan's Western allies.

No-one has claimed responsibility, and police have named no possible suspects or groups.

However, U.S. State Department officials, quoting the Pakistanis, told CNN Friday they believe there is a "strong al Qaeda connection" to the attacks. The officials said U.S. agents are helping Pakistan in the investigation.

One senior department official said the attack "bears the hallmarks" of an al Qaeda attack, and noted the group has threatened Bhutto before.

The Pakistanis have told U.S. officials that they were aware of three or four al Qaeda-related cells seeking to undertake an attack on Bhutto's return. The attack, officials said, is frightening because it shows how much freedom al Qaeda has to move around in Pakistan.

Govt version

Pakistan did everything it could to protect Benazir Bhutto on her homecoming, a top government official insisted Saturday, dismissing accusations that officials may have been complicit in the attack that she escaped but left at least 136 other people dead.

Bhutto blamed al-Qaida and Taliban militants for the assassination attempt against her, and vowed she was ready to risk her life to restore democracy to her troubled homeland.

But she also hinted Friday that government or military officials could have been involved in the attack - a charge the government rejected.

"Peoples names have been mentioned and names have been hinted at without giving any reason or without giving any proof of their involvement, and that is unfair," he said.

The list of people who could have targeted the pro-Western leader is long. Bhutto blamed remnants of the regime of former military leader Gen. Zia ul-Haq allegedly complicit in her father's execution. Islamic extremists could also be bent on stopping a female political leader from modernizing Pakistan.

Authorities say the suicide bombing bore the hallmarks of a warlord and the al-Qaida terror network - an attack that began with a man throwing a grenade into a sea of people following Bhutto's convoy, and then blowing himself up with a device packed with nuts and bolts.

"So far we cannot say it was done by al-Qaida, but the investigations are still going on," Interior Minister Aftab Khan Sherpao said Saturday.

Pakistani police released a photograph on Saturday of a suicide bomber who killed at least 139 people, as opposition leader Benazir Bhutto worked out her next step after the bloody start to her comeback campaign.

The militant threat demonstrated to such devastating effect in Karachi on Friday raised fears over the prospects for a national election due in early January that is supposed to mark a transition from military-led to civilian-led democracy.

Prime Minister Shaukat Aziz said the general election would not be affected but government officials had indicated that campaigning could be restricted because of security worries.

Newspapers carried photographs of the head of the suicide bomber propped on a white sheet. The dead eyes stared blankly out of a chubby, unshaven face.

"The age of the suspect is between 20 to 25 and he looks to be a Karachiite," said a security official, who declined to be identified.

ENA from Florida

Army Chief General Moeen U Ahmed has said the Council of Advisers of the caretaker government is usually appointed for 90 days. But since this government is to remain in power for two years, it is difficult for 11 Advisers to run the administration as each Adviser is in charge of four ministries.

About appointment of consultants, he said the government is examining the possibility of appointing "assistants" to the Adviser in accordance with the constitutional provision.

Earlier, General Moeen had a meeting with Congressman and co-chair of Bangladesh caucus in the US Congress Joseph Crowley.

During the meeting, Congressman Crowley congratulated General Moeen for assisting the caretaker government in carrying out the anti-corruption and anti-terrorism drives successfully.

The meeting was held at the office of the Congressman at Jackson Heights in New York City on Friday.

Crowley also told General Moeen that the United States always wanted to see a corruption-free Bangladesh and strengthening of the democratic institutions.

The US Congressman also thanked the Army Chief knowing that Bangladesh is heading towards an election according to the roadmap announced by the Election Commission.

Meanwhile, Army Chief General Moeen U Ahmed, now visiting the United States, has said he took the loan from Trust Bank in accordance with the bank rules and has been repaying it every month.

"I have taken that amount of loan as permitted under bank rules and I have been repaying it every month," he told private TV channel ATN Bangla at JFK airport in New York yesterday, rejecting the allegation of irregularities against him outright.

The Army Chief said the question of taking a loan of Tk 1 crore does not arise at all. "I have not even taken a loan of Tk 60 lakh."

Replying to another question General Moeen said he repays the bank loans from the money he gets from house rent every month. All these are documented, he added.

The Army Chief said since the prime task of the present government is to free the country from corruption, anyone from army, caretaker government and government officials should not get tangled in it. "Everyone should remain accountable."

ENA reports from New York: General Moeen U Ahmed has said that the information of taking Tk 1 crore loans from Trust Bank is "completely false and baseless, and attempt has been made to confuse the entire nation through this propaganda."

"I think it's a new system of abusing an individual," he said.

The Army Chief said Trust Bank is a commercial bank like other banks in Bangladesh and they also offer loans according to the existing rules. Trust Bank also provides house building loans.

He said the army officers get residential plots for construction of houses after being elevated to particular positions. "I have also got a plot in that way. My colleagues have built houses in their plots much earlier. But, I could not build any house for various reasons. When I was made the Army Chief I thought it would not be wise to make any further delay. I started the construction of my house as the Chief of General Staff. I do hold a detailed account of expenses for construction of the house. I have prepared the account of expenses for myself," he said.

General Moeen said he served at the UN Peacekeeping Missions about ten years ago. "I kept the amount received from there under the wage earner's scheme. I didn't spend the amount at all," he said.

"Besides, I worked at an embassy for several years. At that time I used to get allowance in foreign currency. I also saved some of the money from that allowance. I do maintain proper account of these amounts of money, because I filed taxes regularly. I had to mention about my income and expenditure in my income tax statement," he said.

The Army Chief said it was not possible for any army officer to build any house without taking loans from banks. "All of them took loans like myself. Some took loans from the House Building Finance Corporation, while some took loans from Trust Bank. Since the Trust Bank is a bank of the Army, none has to face any difficulty to obtain loan," he said.

General Moeen said he took loans whatever amount he deserved according to the rules. "I didn't take any additional amount. I took loan of Tk 35 lakh and completed the construction of my house using that loan. Later, I took decision to repay the loan as quickly as possible," he said.

The Army Chief said he received Tk 5 lakh as 'security money' and another Tk 5 lakh as 'advanced' when the house was rented. "In such a way I collected Tk 10 lakh. I have been repaying my loans according to my plan. I deposit whatever the amounts I received from the tenants against my bank loans," he said. "All these have been mentioned in my income tax statement."

General Moeen said, "I have the documents whatever I have said. Anyone can see these documents at any time. So, I took a loan of Tk 99 lakh and repaid Tk 66 lakh in the following year is absolutely a blatant lie.

"It is a propaganda against me which is being carried out intentionally. This propaganda is being carried out against me with an ulterior motive to destroy my image and undermine me before the members of the public. And, this propaganda has been carried out when I have come to the United Nations, and when the expatriates living in the United Kingdom and the United States have been extending warm welcome to me. Perhaps, someone could not tolerate this affection and love of expatriate Bangladeshis toward me and has resorted to making false, fabricated and baseless propaganda against me. But, I have nothing to say against such propaganda and spreading of lies. However, if somebody wants to know about the income and expenditure statement of mine or Trust Bank loan I will welcome him," he said.

The Army Chief said he had always been trying to remain transparent to his conscience. "So, I don't want to make any comment on such propaganda through Internet. There is no problem if anyone wants to know about my account officially or privately," he said.

When asked whether he believed that the relatives of any big fishes who have been sent to jails during the current anti-corruption drives was indulged in tarnishing his image socially, nationally or internationally, General Moeen said, "Perhaps, it might be. Obviously, it has been done being instigated by someone. Perhaps, they are trying to attract me to themselves. Those who were involved in corruption may think that they would be able to get rid of trouble if they could attract me to themselves."

The Army Chief also said there is no scope to play 'hide and seek.' "I have my tax return where all the information is clearly mentioned," he said.

Replying to a question, he said, "I got information 10/12 days before my arrival at the United States that a group was working with Trust Bank and there might be an attempt to spread confusing information involving me. I was also told which group was doing this. I rather thought that since the Trust Bank managing director is my elder brother there might be an attempt to do something involving him. In this regard, I want to make it clear that my elder brother was appointed the managing director of Trust Bank before I was made the Army Chief. It is known to all that my elder brother is one of the best bankers in Bangladesh."

General Moeen also said Trust Bank was on the verge of bankruptcy due to various wrongdoings of the previous managing director. "Trust Bank has succeeded to overcome a major difficulty after the appointment of my brother. Not only that, whatever the losses Trust Bank had incurred have successfully been recouped. This bank is also now doing well in the share market," he said.

Army Chief General Moeen U Ahmed arrived in the United States at the invitation of John F Kennedy School of Governance of Harvard University on October 17 last. He will address there on Bangladesh situation. During the three days of his visit to the US, he stayed in New York. The expatriate Bangladeshis accorded a warm reception to him when he arrived at West Palm Beach Airport in Florida on October 19. Ignoring the inclement weather, the expatriate Bangladeshis assembled at the airport and expressed their gratitude to him for carrying out anti-corruption drive to free Bangladesh from corruption. They also lauded the role of the army for assisting the caretaker government to contain terrorism, hooliganism and extortion in Bangladesh.

It may be mentioned that the only son of the Army Chief is studying in Florida. One of his brothers is also living in Florida with family. The expatriate Bangladeshis in Florida will accord a reception to the Army Chief on Sunday morning.

US Charge d'Affaires Geeta Pasi visiting the Puja
mandap at Dhakeswari Temple in the city on Saturday on the
occasion of Durga Puja. Banglar Chokh

Staff Reporter

Today is the Bijoya Dashami of Durga Puja, the largest religious festival of the Hindu community. The Durga Puja will end today with the immersion of images of Devi Durga following the final rituals.

The devotees will celebrate the Bijoya Dashami in the morning according to the lunar calendar before taking out Bijoya processions carrying the idols.

Bijoya Dashami is the special ceremony to reiterate peace and good relations among people.

The Hindus believe that Dashami is the day when goddess Durga accompanied by her children Laxmi, Saraswati, Kartik and Ganesh started for Kailash, her husband Shiva's residence.

Devi Durga is the greatest goddess in the Hindu faith and is worshipped in various forms corresponding to her two characteristics - kindness to the good and brutality to the evil.

Thousands of Hindu devotees observed Mahanabami yesterday with great festivity at the puja mandaps across the country.

President Prof Dr Iajuddin Ahmed and Chief Adviser Dr Fakhruddin Ahmed have greeted the Hindu community on the occasion of their greatest religious grand gala.

The five-day celebration of biggest Hindu religious festival was started in a festive mood on the evening of October 17 across the country with Sasthi rituals.

Staff Reporter

Awami League will formally propose a dialogue with the Caretaker Government to resolve political issues which party Acting General Secretary Syed Ashraful Islam said cannot be discussed at the talks with the Election Commission.

"Political issues cannot be discussed with the Election Commission nor could these be resolved in courts anywhere in the world," he told journalists yesterday, a day after receiving invitation from the EC for the talks on electoral reforms.

He did not disclose as to when his party would make the proposal for the dialogue with the Caretaker Government.

A party insider said the release of imprisoned Awami League (AL) President Sheikh Hasina would figure prominently in its proposed dialogue with the Government.

Syed Ashraful Islam said he received the Election Commission's (ECs) letter on Friday for the dialogue. According to the letter, 10 leaders of the AL could take part in the discussion scheduled for November 4.

Dropping a broad hint that the AL would participate in the EC's talks, he said the AL delegation would press for the implementation of the 14-party alliance's 31-point proposal for the electoral reforms during the dialogue with the EC.

"Besides, we will also demand that the Election Commission should refrain from registering religious based political parties, including those identified as war criminals," he said.

He, however, said the Awami League Central Working Committee would take the decision whether or not to join the dialogue with EC at a meeting on October 22.

Staff Reporter

French energy giant Total SA will begin exploring for hydrocarbons in the Bay of Bengal from next month, official sources said this yesterday.

"The firm (Total SA) has submitted their work plans for seismic surveys in two offshore blocks in the Bay of Bengal, with a total surface of about 14,000 square kilometres (5,400 sq miles)" Energy and Mineral Resources Division Secretary A M M Nasir Uddin said.

In March this year, Total acquired the major stakes of UK-based Tullow Oil PLC in offshore blocks 17 and 18 and received approval of Energy Ministry to extend the exploration period stated in the production-sharing contract by three years until May 5, 2009.

The acquisition has left Tullow with a 32 per cent stake, US-based Okland Oil Co with 8.0 per cent, while Total holds the remaining 60 per cent in the offshore blocks.

Total SA will also drill one exploratory well to a depth of at least 3,000 metres (9,840 ft) in the Bay of Bengal to find new gas reserves in the structure.

There is a prospect of several trillion cubic feet of gas reserves in blocks 17 and 18, as neighbouring Myanmar's gas blocks are located alongside these two offshore blocks, the officials said.

Total SA also has a 31 per cent stake in Myanmar's Yadana natural gas project in the Andaman Sea from which the French firm-the world's fourth-largest Western oil group-has generated US$499 million in taxes for that country.

Tullow has so far drilled only one exploration well in a block and invested US $7.0 million, officials said.

The government divided the exploration sites into 23 blocks, including seven offshore, in 1993.

The country has 13.54 trillion cubic feet of proven and recoverable gas reserves but likely to face a gas shortage by 2011, when current reserves will be exhausted, they officials added.

Staff Reporter

Both groups of the BNP are awaiting an invitation letter from the Election Commission to join the ongoing dialogue on electoral reforms, party sources said yesterday.

Leaders of both the factions are claiming their respective group as the 'genuine BNP' to justify the legitimacy of their demand for a letter from the Election Commission (EC).

BNP Secretary General Khandaker Delwar Hossain said they should be given the letter since they are 'main stream' of the BNP as party Chairperson Begum Khaleda Zia, who is now in prison, with them while the reformist group led by Abdul Mannan Bhuiyan said they should be treated as the 'main stream' since most of the leaders and former MP's are with them.

Chief Election Commissioner Dr ATM Shamsul Huda said the Commission has not yet decide as to which group of BNP it would invite.

Justifying his claim, BNP Secretary General Khandaker Delwar Hossain yesterday said they should receive the EC letter for dialogue on the electoral reforms, as they are the legitimate BNP according to the party constitution.

Referring to conflicting reports in newspapers in last two days over the EC's

invitation to BNP, he said some newspapers quoting CEC Dr Shamsul Huda reported on Friday that the EC would send them the invitation letter as the legitimate BNP but some newspapers yesterday said the Commission has not yet taken any decision in this regard.

"We do not understand it. The CEC and newspapers know better. But what we know is that we are the legitimate BNP," he said.

He reiterated his claim that BNP to be one and united and there was no groupings in the party. "If there is anything that might be at individual levels," he added.

Reformist BNP leader Ashraf Hossain said the EC should invite them as they are the 'mainstream' of the party since most of the BNP leaders and MPs are with them.

"Besides, the Election Commission, while taking a decision, should consider that we have given a complete proposal for the electoral, political and administrative reforms in the country," he said.

When asked about Khandaker Delwar's claim, Ashraf Hossain said, "They do not believe in the democratic electoral and political reforms."

Syful Islam

Scores of foreign nationals are working in Bangladesh without having valid work permit, violating the visa rules of 2006, which created grave concern to the government.

To stop employing the foreign nationals who do not have valid work permit, the government recently sought cooperation from all concerned, sources said.

"Employing foreign nationals narrows the scope for Bangladeshi citizens to get jobs. It is also in violation of visa policy 2006,' said an official of the Ministry of Home Affairs.

Sources said the government noticed that Bangladeshi missions abroad are less conscious about their responsibilities. Most of the missions abroad do not put the seal "employment in Bangladesh paid or unpaid prohibited" during granting visa.

According to the visa policy 2006, putting the seal of "employment in Bangladesh paid or unpaid prohibited" in the passports of foreign national is compulsory during granting the visa. But the missions abroad hardly carry it out.

A committee headed by executive chairman of the Board of Investment is there to monitor the employment of foreign nationals who do not have valid work permit. But the committee is very much inactive and meets very rarely.

Sources said a large number of foreign nationals are working in Bangladesh after coming here on a business or tourist visa. Most of them are working in the Export Processing Zones (EPZs), buying houses, garment factories, IT industries while some of them are working in the rest houses and residential hotels of the city's posh areas.

Police sources said some of the female immigrants who came here on tourist visa engaged themselves in sex trade and they are running a good number of guesthouses in the city's Gulshan, Banani, Baridhara and Dhanmondi area.

Law enforcing agencies do not arrest them rather help them to continue their business safely.

Sources said a large number of foreign workers come from across the border and mainly work in factories locating adjacent to the border.

AFP, New York

Visiting Bangladesh Chief of Army Staff General Moeen U Ahmed made a courtesy call on Co-chairman of Bangladesh Caucus of the US Congress Congressman Joseph Crowley here on Friday.

During the meeting, Crowley expressed his satisfaction over various measures taken by the country's present caretaker government to hold a free and fair election and check corruption.

He also praised different initiatives of the government, including establishment of an independent election commission, anti- corruption commission and making flawless voter list to hold a free and neutral election through implementing the election roadmap.

The army chief thanked Crowley for his continuous support to Bangladesh.

Besides, General Moeen visited the Jackson Heights in Queens, a commercial hub dominated by the expatriate Bangladeshis.

He exchanged greetings with the expatriate Bangladeshis and was happy to see the expansion of their business in the area.

BSS, Gazipur

Chief Election Commissioner (CEC) Dr ATM Shamsul Huda yesterday said an accurate voter list is a precondition for a free and fair election.

"We do not want to hold the election in a halfhearted manner that is why the Election Commission (EC) is taking 18 months to prepare a flawless voter list," he said.

Dr Shamsul Huda was inaugurating the programme of voter listing with photographs and preparing national identity cards in Gazipur Pourasabha at a function on the premises of Gazipur Shaheed Smriti High School as the chief guest.

GOC of 9 Infantry Division Major General Mohammad Ashhab Uddin attended the function as the special guest while Deputy Commissioner of Gazipur Syed Mizanur Rahman presided over it.

The CEC urged everyone to be registered as voter and inspire others to become voter.

"Many countries of the world have identity cards for their citizens," he said, adding, "We do not have identity cards after 36 years of our independence."

Dr Shamsul Huda said people of Bangladesh would enjoy 22 facilities by using national identity cards. Poor people of the country face more difficulties than others for not having national identity cards, he added.

Replying to a question of journalists, he said the EC has not yet taken any decision on which faction of BNP would be invited for discussion on reforms of electoral laws. The EC will take decision in this regard at a meeting to be held in the first week of next month, he added.

Officials of local administration, district election officers, pourasabha chairman and local elite were present on the occasion.

AFP, Vancouver

Fire-fighters responding to a reported gas leak found at least six people dead, suspected murdered, Friday in a high rise apartment in this western Canadian city, police said.

"There are at least six deceased individuals, adults, inside an apartment on the 15th floor," homicide investigator Dale Carr told AFP. He said police are treating the case in the Vancouver suburb of Surrey "as a homicide scene." Coroners were still on the scene late Friday night, and Carr said the homicide squad expected to start their investigation overnight.

"We just don't know if its a murder-suicide, we don't know if its a multiple murder, we don't know any of these things at this time," Carr said.

No information was released on whether the dead people were related to each other, or about their nationality, race or sex.

"It's really too early for us to talk about how these individuals died," Carr added. He said there are hundreds of apartments in the immediate area, and police expect to interview "hundreds of people."

The false report of a gas leak in the apartment caused massive confusion Friday afternoon in the densely populated neighborhood of new apartment buildings.

For several hours, as fire-fighters prepared to enter the apartment, ambulances gathered, police cordoned off streets and the nearby King George transit station was closed.

Multiple murders are extremely rare in Canada. The Surrey bodies were found just days after Statistics Canada reported a 10 per cent drop in the country's homicide rate, to 1.85 per 100,000 population. There were 605 murders last year, 58 fewer than in 2005.

BSS, Dhaka

A meeting of the council of advisers was briefed on Saturday on the latest position of separation of the judiciary from the executive which will come into force from November 1 next.

Chief Adviser Dr. Fakhruddin Ahmed chaired the meeting held at his office here. Members of the council of advisers attended it.

The meeting was informed about the background of separation of the judiciary.

The meeting directed all concerned to take steps for a smooth implementation of this historic decision of the present government through proper personnel management and optimum use of the logistics for benefit of the people.

It also expressed satisfaction over the peaceful celebrations of Durga Puja of the Hindu community across the country.

Cabinet Secretary Ali Imam Majumdar, Press Secretary Syed Fahim Munaim and the secretaries concerned were present.

Staff Reporter

Commerce Secretaries of SAARC countries will meet in December this year and discuss the recommendations made by business leaders of the region to boost trade and bolster economic growth.

The business delegations from the SAARC countries, which met under the aegis of the SAARC Chamber of Commerce in New Delhi last week, submitted their recommendations for consideration of the Commerce Secretaries.

The Commerce Secretary level meeting will focus on removing trade barriers, including non-tariff barriers that are proving as a hurdle for promotion of trade under the South Asia Free Trade Area (SAFTA) Agreement. The restrictions on movement of goods by roads will also come up in the discussion, commerce Ministry sources said.

The issues relating to immigration and visa restrictions will come up at the meeting of SAARC Home Ministers in the next few weeks while Finance Ministers of the region held deliberations on the SAARC Development Fund in September, a senior official of the Ministry of External Affairs said.

Regional trade is largely dominated by Indian exports to SAARC member states. India's share of trade in SAARC amounts to almost 80 percent of all trade.

Intra-regional trade forms a paltry 5 per cent of the total trade by SAARC nations. By contrast, European Union (EU) members do 60 per cent of their trade with each other.

SAARC'S bigger players look to the United States - which takes nearly a quarter of all exports from India, Bangladesh and Sri Lanka - and EU.

Staff Reporter

The country's growth rate will continue to maintain the same pace at 6.5 per cent for two fiscal years in a row like that of the 2006-07 year despite repeated floods this year, according to a recent projection by the London-based Economist Intelligence Unit (EIU).

The floods, however, will have an adverse impact on agricultural production, loss of which will be supplemented by the record inflow of remittances sent by Bangladeshis working abroad, the EIU added.

"The composition of growth in 2007/08 and 2008/09 will be similar to that in 2006/07, as record inflows of workers' remittances underpin activity in the services sector and the manufacturing industry continues to make a positive contribution," EIU said in an outlook released recently.

It said rates of growth in the agricultural sector, however, would continue to lag behind those in manufacturing and services in 2007/08, as the sector strives to overcome the devastation caused by the floods this year, which destroyed crops in more than one-half of Bangladesh's 64 districts. "Assuming normal monsoon rains in 2008, the agricultural sector is expected to make a strong recovery during 2008/09."

The economic growth is set to slow slightly from 6.5% in 2006/07 to 6.2% in 2007/08 as the agricultural sector tries to overcome the devastating effects of the recent floods.

The country report titled 'Bangladesh at a glance: 2008-09' said the main near-term risk to economic growth is inflation, which stood at a 10-year high in September.

"The fear is that high inflation could entrench itself, particularly since the central bank (unlike its counterparts in the region) has not tightened monetary policy and is unlikely to do in the near future," it said.

It said there are also signs that domestic and foreign investments have weakened over recent months. Domestic investors have been reluctant to expand capacity, with many wary of attracting the attentions of the Anti-Corruption Commission (ACC), which appears determined to investigate all cases of unexplained wealth. "This means that, unlike in the past, investments are being scrutinised by the ACC."

The report said that Bangladesh's external environment is likely to become slightly less favourable in 2008 as economic growth in the US and euro area-Bangladesh's largest export markets-remains sluggish.

The real GDP growth in the US, which absorbs around 24 percent of Bangladeshi exports, is forecast to increase slightly, to 2.1 percent, from an estimated 1.9 percent in 2007.

By contrast, economic growth in the euro area (the destination of more than 30 percent of Bangladeshi exports) is forecast to lose momentum, slowing from an estimated 2.5 per cent in 2007 to 2.2 per cent in 2008.

The external environment is expected to improve slightly in 2009 as economic growth in the US picks up to 2.8 per cent, but growth in the euro zone is forecast to remain sluggish.

"Despite a small increase in global crude oil production capacity, we doubt that OPEC will release enough oil on to the market to reduce the current imbalance between demand and supply. We expect oil prices (dated Brent Blend) to remain high in 2008, averaging US$69/barrel, before falling to US$63.3/b in 2009."

Owing to the fact that Bangladesh imports nearly all of the crude petroleum that it needs, high international oil prices will have a detrimental effect on Bangladesh's balance of trade, and are expected to contribute to record trade deficits in 2008 and 2009.

About inflation outlook for the period, EIU said price pressures are expected to persist throughout the forecast period, as the authorities attempt to reduce gradually the subsidy on domestic fuel prices against a backdrop of persistently high global oil prices.

It said, "We expect consumer price inflation to average 7.7% in 2008 before moderating slightly, to 6.5%, in 2009."

Food prices would continue to be inflated due to the hoarding of goods by local food merchants, and the rising cost of imports from India, which is a major supplier of food to Bangladesh via both formal and informal routes.

Assuming normal harvests for both India and Bangladesh, food price inflation should ease in 2009.

On exchange rate, it projected that following a modest depreciation of 1.4% against the US dollar in 2007, the Taka is forecast to fall by 3.7% against the US dollar in 2008 and 3% in 2009.

"We expect the exchange rate to average Tk72.5:US$1 in 2008 and Tk74.8:US$1 in 2009," EIU said.

Staff Reporter

Former BNP lawmaker and close aide to the BNP chairperson Mosaddak Ali Falu is going to lose his chairmanship of the International Finance Investment and Commerce (IFIC) Bank Ltd and will also be dropped from the board of directors of the bank.

A number of directors, who were close associates of Falu, are also to be expelled from the board, who purchased shares of IFIC bank through forgery, which was revealed by Bangladesh Bank.

The IFIC Bank will hold a four-day Extra Ordinary General Meeting from October 27 preceded by its Annual General Meeting on October 25, where the actions are to be formalised, sources in the bank said yesterday.

A central bank investigation report earlier revealed that Falu and his associates illegally purchased the shares in the name of a Malaysia based company violating both the Foreign Exchange Regulation Act and the Money Laundering Prevention Act.

Sources in the central bank said they are considering forfeiture of the shares illegally purchased by Falu and others.

According to the Bank Company Act, any individual, company or members of a family cannot hold over 10 per cent shares of a company. But Falu and his associates, AB Bank and AB Bank Foundation, and Beximco Group still hold more than 10 per cent shares of IFIC bank each, the investigation report said.

The government owns 34.54 per cent shares of IFIC bank, while Falu and his associates own 13.71 per cent, Beximco group owns 12.74 per cent, AB bank owns 18.31per cent and family members of Aga Yusuf and the directors of Islam Group own 3.56 and 2.21 per cent respectively of the remaining 65.46 per cent shares.

Dhaka Shanghai Ceramics Ltd, Build Trade Engineering Ltd, Diaper Ltd, and Bel Construction SDN BHD own 4.98 per cent of the shares owned by Falu and his associates, while the rest are owned by the directors of these companies and their family members.

Falu, Arafat Rahman Koko, son of former prime minister Khaleda Zia, Enayetur Rahman, and Lutfar Rahman are the owners of these four companies.

Besides, the investigation found that Falu and his associates purchased 1.22 per cent shares of the bank in the name of Bel Construction SDN BHD, a Malaysia based company. Falu, who became the chairman of the bank after striking a deal in October 2006, holds only 0.62 per cent shares in his own name.

When Bel Construction SDN BHD was listed in Malaysia, two Bangladeshi citizens -- Osman Kaiser Chowdhury, and engineer Ashraful Alam -- were the owners of the company. But when this company purchased shares of IFIC bank in October 2006, Mosaddak Ali Falu, Enayetur Rahman, and Ekramul Haque were the signatories on behalf of Bel Construction.

The central bank's investigation team, however, did not find any document proving Falu's ownership of the company.

The report raised the question, how Mosaddak Ali Falu and Enayetur Rahman became directors of Bel Construction while they were active directors of IFIC bank too. The investigation team however did not find any provision in the bank's documents against holding such dual positions.