The New Nation - Internet Edition

A.T.M.Nurun Nabi

Economic development of a country largely depends, among other things, upon an advanced technology and modernized communication system. Bangladesh is no exception. It is notable that the contribution of transport and communication in GDP was 10.21 percent during the fiscal year 2006-07, but railway as sub sector contributed a little.

The country's communication system is divided into four sub-sectors, namely, railway, Roads & Highways (R & H), river route and airways. The length of Bangladesh Railway is 2854.96 kilometers, according to Bangladesh Economic Review 2007. Of it, broad gauge lines constitute 660.22 kilometers, duel gauge lines 365 km and meter gauge lines 1829.74 km. In contrast, the length of R & H is 21,571 kilometers, an increase of 4017 km from that of 1996-97. It appears from the given statistics that, even the total length of railway is much less than the increased length of R & H.

The government allocated taka 1760.91 crore to railway (development 685.55 crore, non-development 1075.36 crore) in the national budget 2007-08, a nominal increase of taka 213.52 crore over the allocation in the last budget. On the contrary, the amount of allocation to R & H in the said budget is taka 3497.41 crore, up 600.18 crore from the previous year's allocation. The difference of allocation between the two sectors simply tells the story of disparity.

According to Bangladesh Economic Review, Bangladesh Railway earned taka 330.64 crore during the fiscal 1996-97 while the revenue expenditure stood at taka 414.17 crore. After 11 years, the earnings came down to 163.86 crore but the revenue expenditure increased to taka 526.64 crore, however, down from taka 960.17 crore during the fiscal 2006-07.

As regards the plight of railway, several factors may be mentioned. These are:

1.The standard of service has deteriorated,

2.Disparity of allocation in the national budget between R & H and railway,

3. Weak administration debarring the authority from taking action against the inefficient employees and those who shirk duties,

4.Absence of strong monitoring system at the divisional offices,

5.Vulnerable condition of the track causing accidents off and on,

6. Decreasing speed of the trains,

7. Absence of timetable facilitating the passengers to know the arrival and departure time of trains they want to travel by,

8. Apathy of many station masters and other employees to respond the queries of the passengers over phone,

9. Unauthorized traveling by the ticketless passengers on different routes have compelled the genuine passengers to go by road.

Consequently, passengers who once liked the journey by trains in the past have turned their faces to buses even on those routes where the two take equal time. As for example, it takes 6.35 hours to reach Rajshahi from Dhaka by train. And the journey by buses takes almost equal time. Yet passengers prefer buses. Bangladesh railway transported six crore 36 lakh and 55 thousand passengers during 1972-73 fiscal when the country's population was 7.5 crore. Astonishingly, the number of the passengers traveling during the year 2006-07 decreased to four crore 34 lakh and three thousand although the country's population became almost double. There is no room for anybody to take it lightly. The government must take the matter seriously and adopt all possible means to improve and modernise the condition of Bangladesh Railway.

Bangladesh Railway is divided into two zones and five divisions. The zones are East and West while the divisions are Paksey, Lalmonirhat, Dhaka, Bhairob Bazar and Chittagong. Of them, Paksey has enough potentialities to become a tourist spot because of presence of Hardinge Bridge, Lalon Shah Bridge, EPZ, the dry river Padma and the pollution-free environment. Should the government be interested, the state revenue from the tourism sector may also be increased.

Shahjalal Islami Bank Limited (SJIBL) opened its 23rd Branch (Mirpur Branch) at 230 Sen Para Parbata, Mirpur-10, Dhaka on 6 November 2007. The Chairman of the Board of Directors of the bank, Alhaj Akkasuddin Mollah, formally inaugurated the Branch as chief guest.

Alhaj Akkasuddin Mollah said, Shahjalal Islami Bank gives better service to its clients with latest technology. As a result, Bank's clients and area of services are expanding day by day.

He informed that three more branches would be opened by the year 2007 in different places of the country.

Managing Director of the bank, Muhammad Ali, focused on different schemes with a view to improving the deposit base of the bank. He said that these schemes are already being very popular. The bank has already taken necessary measures for the expatriates to remit money, he added. He expressed gratitude to the clients and well- wishers for their continued support.

Among others, Vice Chairmen of the Board Mohammad Hasan and Syed Nurul Arefeen, Directors Anwer Hossain Khan, Md. Sanaullah Shahid, Sponsor Shareholders Mohammad Farruk, Abdul Halim, Khandoker Sakib Ahmed, Md Muhammad Ali, former Md of the Bank M. Kamaluddin Chowdhury, DMD Md. Jillur Rahman and Businessmen, Industrialists and distinguished personalities were present in the opening ceremony.

The opening ceremony included reciting from the Holy Quran, Milad Mahfil and Dua was held at the branch premises.

Staff Reporter

The 'SouthAsia Enterprise Development Facility of the International Finance Corporation (IFC) Advisory Services for South Asia, has introduced stakeholders to the cluster development approach at a seminar on 'Light Engineering Clusters in Bangladesh', on Thursday at a local hotel in the city.

Various local and international entrepreneurs have participated in the seminar, which focused on the use of cluster approach for economic growth and employment generation. It also highlighted best practices in other regions, which could be replicated in Bangladesh, encouraging Bangladeshi stakeholders to develop their own cluster program.

The seminar coincided with the release of a map of 'Light Engineering Clusters in Bangladesh' that highlights the extent and geographical distribution of the engineering activities in the country.

Speaking on the occasion, various participants elaborated the cluster development, which has emerged as an important factor in helping countries. According to them, this change has initiated transition from developing to developed in many countries. But as a matter of fact, a little has been done so far to pave the way for such development in Bangladesh.

"If we address our priorities in a focused manner, Bangladesh's Light Engineering cluster can be on a path to greater competitiveness," said Advisor for the Ministry of Industry, and chief guest of the occasion, Geeteara Safiya Choudhury, in her letter of address. She, however, reminded the participants that the GOB has declared the Light Engineering sector as a Priority sector in the new Industrial policy, 2005. It has given a special emphasis on policy strategies for development of SME. The government, in particular the Ministry of Industry, is an important agent in energizing the existing industrial clusters, she added.

As a Ministry, said Geeteara S Choudhury, we will contribute by considering clusters in the policy making process. "We can provide budgetary support to cluster development initiatives," she proposed.

However, our public institutions such as Bangladesh Small and Cottage Industries Corporation can be earmarked for specific cluster development roles, she ended.

Presenting the IFC SEDF report on Engineering Clusters, Mukesh Gulati of Micro and Small and Medium Enterprises Foundation (MSMEF) said, about 48 clusters had been identified across Bangladesh of which 27 are in Dhaka and its suburbs. These clusters have an annual turnover of Tk5151 crore and employing 89632 workers, he added.

"If supported suitably, these clusters possess the potential Bangladeshi industries into the ranks of advanced nation," said President IFC, SEDF in his address.

Among the participants in the seminar, Issa Mansouri, Advisor ISIPO, Government of Iran, Sanjeev Kaushal, Additional Development Commissioner, Ministry of Micro, Small and Medium Enterprises, GOI, RCM Reddy, CEO, IL&FS Cluster Development Initiative Ltd., India addressed and shared their practical experiences of implementation.

Social Investment Bank Ltd. (SIBL) has come out of problem bank list on November 05, Bangladesh Bank (BB) has informed that SIBL has earned remarkable progress in overall management and financial indexes. BB put SIBL in the problem bank list in October 2005 and asked SIBL to company with DOBBS (Directives Of Bangladesh Bank). SIBL Management with cooperation from all concerned has been successful to get desired progress in all the indexes of DOBBs.

A great change has occurred in the financial base of the bank. The capital of the bank as on September 2007 is Tk. 180.64 crore and 100% provision against debt has been preserved.

The bank has preserved provision of Tk. 40.24 crore against required 38.24 crore. Gross classified loan is 3.68 percent and net classified loan is 0.48 present. Thus the quality of assets of the bank has been improved significantly.

The adjusted capital shortfall of SIBL during its being listed as problem bank in 2005 was Tk. 64.71 crore and classified loan was 161.00 crore or 11.28 percent.

Bank's Chairman Abdul Awal Patwary has expressed hope that the management of the bank would continue their efforts to develop overall business in the days to come.

Managing Director K M Ashaduzzaman stated that because of release from problem bank list clients' confidence in the bank would increase and as such, in near future tremendous achievement would be possible in all business aspects.

AFP, Wellington

New Zealand's unemployment rate hit a record low of 3.5 percent in the September quarter, the lowest rate since the current measure was adopted in 1986, Statistics New Zealand said.

New Zealand's unemployment rate is the fifth lowest in the OECD club of developed nations, with Norway boasting the lowest rate of 2.5 percent.

The rate was down from 3.6 percent in the previous three months but the figures also showed that employment fell by 0.3 percent as fewer people sought work. During the quarter, the work force participation rate-those in work or looking for it-fell from a record 68.8 percent to 68.3 percent. The New Zealand dollar fell almost one US cent from 77.75 US cents to 76.80 after the announcement. But dealers said global market volatility was the dominant factor, rather than the softening outlook for employment.

Economists said, however, the decline in employment was seen as reducing inflationary pressures, making another interest rate rise less likely.

"The labour market is a key area of concern for the (central) bank, and it's still tight but progress is being made," said UBS economist Robin Clements.

Dutch-Bangla Bank Limited sailed its 43rd branch at Kadamtoli (Rahat Centre, 295, D.T. Road), Chittagong on November 5, 2007 with Truly On-line Banking facilities from the very opening day of the branch. The Branch was inaugurated by Md. Yeasin Ali, Managing Director along with AHM Nazmul Quadir, Additional Managing Director of the bank. Yeasin Ali also opened an ATM Booth at the branch premises to facilitate round-the-clock banking services to the customers like cash withdrawal, balance enquiry, mini-statement, payments of utility bills etc.

The opening ceremony started with doa mahfil seeking blessings of the Almighty Allah for successful operation of the branch, prosperity of the business community. The distinguished guests who attended the inaugural ceremony opined that, Dutch-Bangla Bank is not only rendering present-day customer needs banking services but also the bank spends a significant portion of its profit to discharge corporate social responsibility.

Md. Yeasin Ali, Managing Director of the bank in his address to the distinguished guests said that DBBL is the first and only bank in Bangladesh which invested Tk. 100.00 crore (Taka one hundred crore) in banking automation services. He called upon the local people and business community to avail the opportunities of this big investment by maintaining a bank account with DBBL.

Business personalities, industrialists, journalists and valued guests were present at the inaugural ceremony. The respected guests, residents of the locality and owners of business houses/shops showed their spontaneous enthusiasm by opening accounts with the bank.

AFP, Seoul

Asian economies have weathered the US subprime mortgage crisis well and will experience only a mild slowdown next year, a senior International Monetary Fund official said on Thursday.

But any sharp US slowdown would have a significant effect on the region, especially if other industrial countries followed suit, said Jerald Schiff, the IMF's assistant director for the Asia-Pacific. "Like the region as a whole, Korea weathered very well the crisis in the summer," Schiff said in a speech on the economic outlook for South Korea and the region.

Schiff said the outlook for Asia remains positive next year, "although global developments have increased significantly the downside risks." He said the IMF projects a mild slowdown in Asia in 2008 and a moderate slowdown globally but "there is a sizeable risk of a US recession and a sharper global slowdown."

This would most likely be triggered by extended weakness in the US housing market, spreading to lower consumption and investment and higher unemployment.

The US housing market showed few signs so far of recovery.

Schiff noted that Asia remains quite dependent on trade with the US and the European Union. But many regional countries including Korea had scope to loosen monetary policy, although further oil price rises would complicate policy.

The IMF executive said Korea's outlook largely mirrors that of the region. "US domestic demand growth and Korean export growth is very strongly correlated."

A one percentage point fall in the US growth rate could lead to a decline in Korea of a quarter to half a percent, he said, predicting Korean growth of 4.6 percent in 2008 compared to about 4.8 percent tipped for this year.

"In addition, while Korea escaped largely unscathed from the summer turmoil, further global financial volatility could have a longer-lasting impact, e.g. via business and consumer confidence," he noted.

South Korea also faces several country-specific risks, Schiff said, citing the rapidly ageing population and high household debt.

Next year, and especially in 2009, many mortgage payments would rise sharply with the lapsing of grace periods. "This could impact (on) consumption and economic growth for the next several years."

GSP Finance Company (Bangladesh) Limited signed a participation agreement with the Bangladesh Bank (BB) to extend home loan facility to lower and middle-income groups of borrowers in the city recently.

The scheme under the style of "Bangladesh Bank Refinance Scheme for Housing Sector" has been introduced by Bangladesh Bank through ACSPD (Agricultural Credit and Special Programmes Department of Bangladesh Bank) for providing loans to lower and middle income groups of people of 6 (six) Divisional cities including 4 (four) municipal towns-Tongi, Gazipur, Savar and Narayanganj of the country to purchase house or apartments with unit size of 1250 sft. or less. The loan bears interest @ 10% per cent annum and it is repayable within a tensure of 20 years with one year's grace period.

A person who does own a house/apartment in his name or spouse or children in the mentioned areas and whose regular gross monthly income does not exceed Tk. 30,000.00, may receive a maximum amount of Tk. 15.00 lakh as home loan facility.