The New Nation - Internet Edition

CSE closes lower yesterday

UNB, Chittagong

Trading at Chittagong Stock Exchange (CSE) closed lower yesterday as the losers strongly dominated the gainers.

The CSE All Share Price Index (CASPI) declined by 2.29 percent to close at 9041.61 points today (Wednesday).

The CSE-30 Index also shed 1.91 percent to close at 7851.32 points.

A total of 147 issues were traded today. Of them, only 17 gained, 128 declined and two remained unchanged.

Some 5,882,991 shares and debentures worth Tk 55.90 crore changed hands yesterday.

Govt increases fertiliser prices by more than 200pc

BUSINESS REPORTER

The government has increased the selling prices of urea and Muriate of Potash (MOP) by more than 200 per cent to ease pressure on the government' s subsidy system.

The selling price of per ton of urea fertiliser has been increased to Tk 10,000 from Tk 4,800.

The new price for MOP is Tk 50,000 per ton as against the previous price of Tk 19,500 per ton.

The upward price adjustment of fertilisers came for the first time since 1996 and just a day after the announcement of national budget for the fiscal 2008-09 beginning on July 1.

An official of the Ministry of Industry said the upward price adjustment of fertilisers will lessen the pressure on the government on account of subsidy.

In the outgoing fiscal, the estimated subsidy on fertiliser will be more than Tk 40 billion from the originally projected Tk 22 billion due to the growing mismatch between selling and procurement prices.

The country's urea and MoP consumption has increased substantially since 2004 following wider cultivation of high yielding varieties and hybrid rice.

The government has planned to import around 1.1 million tons of urea to meet the projected demand of 2.85 million tons in the new fiscal.

Bata launches world famous Nike brand sport shoes in Bangladesh

BUSINESS REPORTER

Bata Bangladesh brought the world famous sports brand 'Nike' into the Bangladesh market to serious sports and lifestyle wear consumers through an agreement between Bata Shoe Company Bangladesh Limited and Nike Singapore Pte Limited where it has been appointed as the "official distributor" of genuine Nike oroducts.

Bata Shoe Company (Bangladesh) Ltd yesterday informed it officially in a press briefing.

The latest range of authentic running, soccer, tennis, basketball and sports inspired shoes of Nike which ranges between Tk. 5000 and Tk. 8500, are now available in five of its top outlets at Gulshan 1, Banani, Rapa Plaza, Bashundhara City and 218 Elephant Road in the city..

Managing Director of Bata Emerging Markets (West) Jorge Carbajal, Managing Director of Bata Shoe Company (BD) Ltd and Chief Financing Officer of Bata Ceear Pandero unveiled the latest Nike collections in front of 100 invited guests and media personnel at the press briefing at Dhaka Sheraton Hotel in the city. The launching event showcased Nike's exclusive collections and was combined with a presentation on Bata Shoe Company (Bangladesh) Ltd. and the company's plans for the brand.

Bata is a world-renowned footwear brand which was founded by Thomas Bata in 1894. The company has already brought well renowned international brands such as Hush Puppies and Scholl while at the same time upholding the image of its own specialised brands like Power, Marie Claire and Bubblegummers by introducing new ranges of modern designs and marketing them through different retail concepts.

BTRC congratulates Warid Telecom for achievements

BUSINESS REPORTER

Chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC) Major General (Retd) Manzurul Alam has congratulated Warid Telecom for acquiring three million subscribers within one year of commercial operation.

He also praised the mobile phone operator for its overall achievements and hoped it will continue the successful journey in future. He made these comments on Monday at a function of the country's fourth largest telecom operator held at hotel in the city.

Top civil and military officials, editors of national dailies, businessmen, bankers and Warid high officials attended the event, which was organised as part of Warid Telecom's celebration of first anniversary with three million customers. Noted singers Kumar Biswajit and Samina Chowdhury rendered popular songs during the function.

Highlighting the achievements of the company, Chief Executive Officer of Warid Telecom Muneer Farooqui said, "We are celebrating the first anniversary with over three million valued subscribers. We are committed to bring qualitative change in the country's telecom sector by providing better services to its customers with the best available quality network."

He also thanked the Bangladesh government, BTRC, Board of Investment (BoI), other agencies and people of the country for their generous support towards Warid.

Krishi Bank and Tea Board sign MoU

Md Mukter Hussain, Managing Director of Bangladesh Krishi Bank and Brig General Md Moshsrraf Hossain exchanging documents after signing a MoU at the bank's Head Office on Monday aiming at extending small-scale tea cultivation in the Hill Tracts region. Under the MoU, a project titled 'Small Holding Tea Cultivation in Chittagong Hill Tracts costing Tk 10.29 crores will be implemented with BKB financing. Among others, Liaquat Ali khan, GM (Operation), HM Abdul Wadud, DGM (LAD-2), Md Malek Newaz, AGM (LAD-2), Md Mizanur Rahman, Chief Public Relations Officer of Bangladesh Krishi Bank and Mohammad Abul Kashem, Member (Research and Development), Engr M Shahabuddin Mahmud, Co-ordinator of Bangladesh Tea Board were present on the occasion.

ADB to finance technical skills training for jobless Bangladeshis

Economic REPORTER

The Asian Development Bank (ADB) will help thousands of unemployed and underemployed Bangladesh adults to improve their technical skills by a training system in an attempt to attain better wage and employment prospects.

ADB has approved a 50 million US dollars loan for the Ministry of Education to make its technical and vocational education and training (TVET) programs market-oriented, short-term and relevant, said a ADB press release.

It said that the project plans to train about 68,200 people over the five years of implementation, especially for the poor who were not able to finish the eighth grade.

Under the project, leaders of the ready-made garments and textiles, light engineering, and construction industries--the three main employers in the country -- will help create skills training programs relevant to their industries.

Currently, the TVET system and the needs of the employment sectors are mismatched.

And the current formal system excludes people who have not completed the eighth grade.

"The project supports the government's plan to reduce poverty and promote economic growth by providing market-relevant skills training to more Bangladeshis, including the poor and the disadvantaged," says Project Leader Leah Gutierrez.

Mutual Trust Bank approves 5:1 right, 25pc bonus shares

BUSINESS REPORTER

Mutual Trust Bank Limited (MTBL) has approved 5:1 right shares (one right share against five existing shares) and 25 per cent stock dividend for its shareholders for the year 2007.

The approval of rights share was given in the 10th extra-ordinary general meeting (EGM) while the stock dividend approval was given at the ninth annual general meeting (AGM) of the bank held at Bangladesh-China Friendship Conference Centre in the city recently.

Chairman of the board of directors of the bank Samson H Chowdhury presided over the meetings.

MTBL Founding Chairman Syed Manzur Elahi, Vice Chairman Arif Dowla, Managing Director Kazi Md Shafiqur Rahman and other directors of the bank were present on the occasion.

A large number of shareholders of the bank attended the meetings.

DCCI reaction on proposed national budget of 2008-09

DCCI Board of Directors in an instant meeting just after the announcement of the national budget 2008-09 has prepared an initial comment which are mostly focused on the SME development. DCCI past presidents and directors were present while Hossain Khaled, DCCI president chaired the meeting.

Proposals

In the Finance Act Bill of 2008-09 at its page 15, under section 82 under treading Assessment on Correct Return, it is mentioned at para © that such return does not show any loss or lesser income than the last assessed income, or assessment on the basils of such return does not result in refund, this will discourage submission of correct return This provision at para C should be withdrawn.

2 Income tax exemption limit and slabs has been kept as per the limit of the last year while female tax payers and senior tax payers of ages exceeding seventy, the exempted limit has been increased. We propose for increasing the tax exemption limit to two lakh fifty thousand for individual tax payee.

3 In the proposed budget in declaring untaxed income, penalty at the rate of 7 per cent on top of the tax payable has been fixed. We propose that if the investment is in manufacturing sector. The penalty should be waived.

4. Corporate rate of taxes for public trading companies has been reduced from 30 per cent to 27.5 per cent for companies not listed for public trading to 37.5 per cent from 40 per cent. The rate is 45 per cent for banks insurance, financial institutions and mobile phone operators. Banks, insurance leasing and mobile companies should not be treated differently, rather it should be at par with publicly traded company and non-publicly traded company as the case may be.

5. Income tax on profit of public limited companies has been taxed at 27.5% on condition that the company must declare at least 10% dividend and must pay the dividend with in the time frame declared by the SEC. While we welcome the decision of 10% rebate in case of at least 20% dividend and the payment of dividend within the time as per SEC, we propose withdrawal of minimum 10% dividend clause.

6. The provision for15% tax on dividend and the tax rate matters should be dealt with as per other provisions of the act. Because the decision will create adverse effect on capital market and will discourage investment.

7. Budget endorsed that there is a wide-spread allegation of various malpractices of the PSI companies but because of the inadequacy of both in terms of infrastructural and human resources PSI system has been continued. DCCI feels that the monopolistic benefits of PSI companies should be curtailed by allowing existing companies to operate in all regions so that a competitive environment is created.

8. In order boost domestic production and encourage SMEs we propose LC value upto 20.000 should be kept outside the purview of PSI. In addition, a cut off date should be declared for discontinuation of PSI system

9. In order to encourage local automobile assembling industries, the differential tariff of CKD and CBU vehicles should be maintained. The budget failed to give any directives in that respect. We urge upon to get directives in this regard. In addition, vehicles imported/equipped with dedicated CNG engine should receive preferential duty benefits.

10 The budget fails to reflect any significant steps to address the escalation of price hikes. We believe that, in order to tackle food security and energy issues government will take necessary steps to boost domestic production and distribution with low cost financing.

11. Zero-tariff for all the raw materials which is not produced in the country along with removal of all non-tariff barriers should be ensured.

12 At this stage of our development, we need more money for developmental activities. The government must be careful to save money through judicious use of government funds and avoiding government borrowing.

Aristopharma gives reception to new BCPS fellows

This year 88 doctors have achieved fellowship (FCPS) in different disciplines from Bangladesh College of Physicians and Surgeons. To make this achievement memorable, Aristopharma Ltd hosted a reception to these new fellows at Hotel Sheraton recently.

National Professor Nurul Islam and MR Khan were present on this occasion and distributed crests to the new fellows. Chairman and Managing Director Aristopharma MA Hassan, Director (Marketing and Commercial) Md Mahboob Hassan, Director (Production) Mahmud Hassan, Director (Finance and Administration) Md Sahid Hassan, Marketing Manager Noor Hossain and other managers of Aristopharma were present at the programme.

IFC seminar aims to boost trade finance in South Asia

IFC, a member of the World Bank Group, will host a seminar in Dhaka, Bangladesh, to help improve the trade finance operations of banks in South Asia and enable them to better support local entrepreneurs and small businesses.

The seminar will promote tools for managing risks associated with trade finance products and services, and it will facilitate agreements between local banks that focus on international trade. It will target highlevel banking officials from Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka. Participants will represent 16 banks from the South Asia region. Scott Stevenson, IFC Manager for GlobalTradeFinanceProgram, explains, "Our mandate as part of IFC's Global Trade Finance Program, includes assisting banks to develop and upscale their trade finance operations; I hope the participating banks would benefit from the course."

"IFC's trade finance program helps local banks offer enhanced tenors and access competitive pricing terms that facilitate trade with emerging markets worldwide and promote the flow of goods and services between developing countries. The program's training component supports our regional approach in enhancing South Asia's financial sector," said Per Kjellerhaug, IFC Country Manager for Bangladesh, Bhutan, and Nepal.

The seminar will include sessions on documentary credit, trade finance rules, guarantee instruments, asset liability management, treasury, and the process of applying IFC guarantees to various financing structures. Last year,. IFC delivered 13 trade finance training courses, reaching 130 bankers from 25 countries.

Launched in 2005, the IFC Global Trade Finance Program supports trade with emerging markets worldwide. It aims to increase developing countries' share of global trade and promote South-South flows of goods and services. To date, 12 banks in South Asia have joined the program. Globally, the program has provided more than $2.3 billion worth of guarant.ee.s to 97 issuing banks in 50 countries, where morethan 70 percent are issued for small and medium enterprises.

SM Khorshed Alam new DMD of Bank Asia

SM Khorshed Alam assumed the office of Deputy Managing Director (DMD) of Bank Asia Ltd with effect from June 1, 2008.

He joined Bank Asia Limited as an Executive Vice President in November 2000, and was assigned as the Zonal Head for Chittagong and Dhaka.

Alam started his career from Pubali Bank as a Probationary Officer in 1979 just after completion of his post-graduate degree. Thereafter, he worked for Arab Bangladesh Bank and Southeast Bank Limited.

He participated in different workshops and training programmes at home and abroad and visited many countries including India, Singapore, Malaysia, China, Thailand, Hong Kong, UK and many other countries of Europe and Middle East.

Alam was President of Chittagong University Ex-Economics Students Association, Vice President of Bangladesh Economic Association, Chittagong Chapter and Senate Member of University of Chittagong.