The New Nation - Internet Edition

Fifth Pakistan Date Show begins

On the eve of the Holy Ramadan, the fifth Pakistan Date Show-2008 began in Dhaka yesterday with a call for increased trade and commerce between Bangladesh and Pakistan to the mutual benefit of both the countries. Adviser for Agriculture and Water Resources Dr C S Karim inaugurated the two-day show at Dhaka Sheraton Hotel and said such exhibition of consumer food items would contribute enormously towards enhancing bilateral trade between the two countries. Pakistan High Commissioner to Bangladesh Alamgir Bashar Khan Babar and other senior officials as well as date growers and exporters from Pakistan and Bangladeshi businessmen were present on the occasion. Later, the Adviser along with the Pakistan High Commissioner visited the date stalls, talked to the date traders and evinced his keen interest to the show. Pakistan, producing more than 6,00,000 tonnes of dates every year, is among four top date growers in the world and has significantly increased its export share of this commodity to Bangladesh over the recent years, high commission officials said. The fifth date show this time displays varieties like Aseel, Muzawati, Karbala, Fasil, Kepro and Begum Jangi. Biscuits and Halua produced from dates are also being exhibited in the show.

Bid to check VAT evasion: NBR to order large markets, shops to install cash registers from Sept 1

BUSINESS REPORT

The National Board of Revenue (NBR) is going to enforce its order on installation of electronic cash register (ECR) in large and medium business houses in a bid to check evasion of Value Added Tax (VAT) from next month.

Sources said that the NBR taken an initiative to enforce its order on introduction of electronic cash register in large shops, super shops, markets and sweetmeat shops in the capital from September 1 next.

"We'll soon ask these shops and markets to install electronic cash registers from September 1. We'll take stern action under the VAT rules if they fail to follow the NBR order," an official said.

The NBR issued a Statutory Regulatory Order (SRO) in July this year making it mandatory for installation of electronic cash register by five service sectors. But the business community strongly opposed the NBR decision on installation of the machines.

Business leaders said all the shops in a market were not in a position to install electronic cash registers. They also demanded of the NBR for specifying the shops in this regard. Accepting the demand, the NBR shifted from its decision on installation of cash registers from July 1, 2008. However, the NBR has already prepared lists of shops, super shops and markets in the capital. The lists will be sent to those shops and markets through the zonal offices concerned of NBR within this week. The NBR will collect VAT from the data of cash registers from September 1.

The NBR will paste two stickers on the front and back side of the counter in the shops using electronic cash register with a note -- 'collect your voucher' and 'pay VAT if you sell product'.

The sources at NBR said large super shops like Agora, PQS etc accept payments from customers under computerized system. But, most of the large sweetmeat shops do not accept payments under computerized system. Even many large shops offer cash memo to customers although those cash memos are not approved by the NBR. As a result, VAT evasion is rampant in those shops and markets. The NBR is going to take stringent measures in this regard. Large business houses and departmental stores will come under the system.

The government receives higher VAT at local stage. But the NBR is being deprived of about 80 per cent of VAT from large and medium sized shops and markets while the overall VAT evasion from service sectors is 50 per cent, they said.

A high official of NBR said the apex tax authority would make it compulsory to use electronic cash register in big and medium sized shops at city corporation and district levels soon.

"Electronic cash register will help check dodging VAT," the official said, adding that shop owners usually dodge huge amount of VAT though the consumers pay in buying products or services. In the current fiscal year of 2008-09, the NBR has fixed Tk 18,354 crore VAT earning target. In the last fiscal, the NBR collected VAT worth about Tk 15,324 crore against the target of Tk 14,800 crore.

The VAT was introduced in 1991 on services and products.

Currently, the government collects VAT at a rate of 15 per cent from the service sector.

StanChart, UNAIDS Bangladesh sign accord: Bangladesh Business Coalition on AIDS launched

Standard Chartered Bank and UNAIDS Bangladesh have recently signed an agreement to form 'Bangladesh Business Coalition on AIDS' (BBCA) with a view to contributing to the national response to AIDS in the country.

Shah Masud Imam, Regional Head, Corporate Affairs, South Asia of Standard Chartered Bank and Dan Odallo, Line Director, National AIDS/STI Progamme and UNAIDS Country Coordinator, signed the agreement on behalf of their respective organizations in the city recently.

The coalition believes that Bangladesh can successfully contain the AIDS epidemic; it aspires to contribute by encouraging key business sectors and partners to provide resources, skills and an environment for an effective response to AIDS within the business institutions.

In his welcome speech, Dan Odallo said, "This Business Coalition on AIDS is the first of its kind in Bangladesh, and through this partnership we aim to generate broader engagement from the business community to fight this epidemic."

In his speech, Osman Morad, CEO of Standard Chartered Bangladesh said, "Fighting the HIV/AIDS epidemic is a commercial imperative for business, including Standard Chartered. Health and well being of our people and customers is vital for sustainable economic growth. We pledged to the Clinton Global Initiative to educate one million people on HIV/AIDS globally."

Shah Masud Imam added, "Standard Chartered is one of the banking industry's leaders in the global fight against HIV/AIDS. We are grateful to UNAIDS Bangladesh for providing us with this opportunity to assume the role of leading Bangladesh Business Coalition on AIDS."

Ms. Marina Mahathir, daughter of the former Prime Minister of Malaysia was also present at the signing ceremony as special guest. She is one of the most active member of UNAIDS's Asia Pacific Leadership Forum and an advocate of high-level advocacy on HIV and AIDS in Asian countries.

Ms. Sarwat Ahmad, Senior Manager, Corporate Affairs of Standard Chartered Bank, Ms. Lazeena Muna-McQuay, Ph.D. Social Mobilisation and Partnerships Advisor.

APLF Sub-regional Coordinator, UNAIDS Regional Support Team for Asia and the Pacific, Mohammed Ali Bhuiyan was also present at the signing ceremony among other senior officials from both the organisations.

Marubeni wins $23.6m contract for power plant in Bangladesh

MARUBENI CORP has clinched an order valued at 2.6 billion yen (US$23.59 million) for repairing and installing parts at a hydroelectric power plant in Bangladesh.

The Bangladesh Power Development Board placed the order for repairs to the Karnaphuli Power Plant located 50km east northeast of Chittagong.

The country's only hydroelectric power plant, the Karnaphuli facility is more than 20 years old and is slated to have two of its five sets of turbines and generators replaced.

When it was first built, the power plant could generate 230,000kw of electricity, but now it is thought to produce 20 per cent less than that.

Role of Competition Law Policy for country's economic growth

BUSINESS REPORT

IFC Bangladesh Investment Climate Fund has been organising a two-day workshop titled 'Competition Policy, Investment and Economic Development in a Globalized Economy' from yesterday at Hotel Sheraton in the city.

This workshop deals with an issue which is of critical importance to the development of the country. At present, Bangladesh does not have a clearly defined competition policy but recently the Ministry of Commerce has prepared a draft Competition Act for Bangladesh.

While the draft is under public consultation, this two-day workshop, which is aligned with the government's initiative to enact a competition law, aims to increase the knowledge and understanding of the role and importance of competition policy and its instruments, in advocating a competitive, dynamic and effective business environment that encourages private sector growth and development.

The workshop is being conducted by Rughvir S Khemani, former Competition Policy Advisor of the World Bank Group, and Professor Fahad Khalil, Professor of Economics at the University of Washington. The experts are looking at key concepts, theories, empirical cases and experience of different countries relating the design and implementation of competition law and policy and its interface with various economic and regulatory reforms.

The workshop is also dealing with issues of anti-competitive practices, structure of markets and some of leading cases that may adversely affect efficient allocation of resources, competition and competitiveness of industries, and the national economy.

A key focus of the workshop is to outline the role and importance of the competition law-policy as it is integral to Bangladesh's economic and regulatory framework.

Such a law or policy is pivotal in fostering private sector led, broad based, inclusive sustainable economic development and improving domestic and international competitiveness.

The participants are mainly from government ministries, industry/trade associations, think tanks and academia, NGOs and other public and private sector entities in order to promote informed debate and economic-policy decisions.

Shahjalal Islami Bank opens branch at Vatara

BUSINESS REPORT

Shahjalal Islami Bank Limited (SJIBL) opened its 29th branch (Vatara Branch) at Pragati Sarani, Dhaka on August 14. The sponsor shareholder of the bank Alhaj Anwer Hossain Khan formally inaugurated the branch as chief guest.

Alhaj Anwer Hossain Khan said Shahjalal Islami Bank is being operated by a team of professionals with international standard.

He said the bank staff remain vigilant to reach the quality service of the bank to the clients.

Managing Director Mohammad Ali said the bank has become one of the best banks within a short period because of proper guidelines set by the board of directors and also because of dedication and sincerity of the bank staff.

He also gave a short brief of the bank's deposit and investment schemes.

Among others, Chairman of the Board Alhaj Akkasuddin Mollah, founder Chairman Alhaj Sajjatuz Jumma, Vice Chairman Alhaj Syed Nurul Arefeen, Directors Engr Md Towhidur Rahman, Alhaj Md Solaiman, Alhaj Abdul Halim, Alhaj Khandoker Sakib Ahmed, Sponsor Shareholder Alhaj MA Mannan, Managing Director Muhammad Ali, Deputy Managing Directors Md Jillur Rahman and Md Mukhter Hossain, former MD M Kamaluddin Chowdhury, Chairman, Shariah Council of SJIBL Mufti Maulana Abdur Rahman and Member Maulana Abul Kalam Azad were present at the opening ceremony.

The opening ceremony included reciting from the holy Quran, Milad Mahfil and Doa held at the branch premises.

BoP falls 89.7pc as food imports soar

BUSINESS REPORT

Country's balance of payments fell 89.7 percent in July-May to $105 million from the same period a year earlier due to soaring food and oil import costs, Bangladesh Bank said.

Imports for July-May increased by more than 24 percent from a year earlier, while exports increased 15.27 percent, bringing the trade deficit to $5.04 billion from $3.29 billion in the same period of last year, it said.

The trade deficit widened mainly due to sharp rises in world prices of grains, including rice and wheat, as well as fertiliser and oil, a central bank official said. Natural disasters that hit the country last year destroyed nearly 2 million tonnes of rice, the country's staple, leading to a sharp rise in imports.

Officials said strong remittances from more than 5 million Bangladeshis working abroad helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus. Bangladesh received $7.9 billion in remittances in the 11-months period, more than 31 percent higher than the same time of the previous year.

But net foreign direct investments fell 11 percent to $648 million in July-May.

Samsung-Index Business Conclave 2008 held

The Samsung-INDEX Business Conclave 2008 was held on August 9, 2008 at the Celebrity Hall of Bangladesh China Friendship Conference Center in the city.

In the event the Digital Technology Leader SAMSUNG Electronics announced several new initiatives to strengthen it IT peripherals business in the country this Year. The Company, which is the global market leader in Colour Monitor today announced the launch of three new advanced LCD Monitor series in the market as well as its foray into two new product verticals- Projectors, Thin Client.

The new advanced feature rich premium LCD Monitor series- T Monitor, Myst Plus and Lime offer consumers total display solutions for their home and office requirements.

Speaking on the occasion, Y Y Kim, Director Marketing of Samsung Electronics stated. "In keeping with the global market trends the Bangladesh Display market too is witnessing a dramatic shift in favor of LCD Monitors. Samsung as the global leader in LCD Monitors is fueling this transition in Bangladesh by continuously launching LCD Monitors that lead in terms of their design performance and innovative features "With the launch of the new series of LCD Monitors & Projectors SAMSUNG, is aiming to become a total Display Solution Provider, now has an enhanced portfolio aimed at Home and SOHO customers.

The Company already has a strong lineup in Large Format Displays aimed at Public Display locations and Corporate.

Lokesh Nagpal Manager Export Business Group and Anurag Kumar, Asst Manager Export Business Group attended the event and interacted with the Samsung dealers.

Index IT Limited is the authorized distributor of Samsung IT products in Bangladesh and also the Co-host of the event. Managing Director of Index IT Limited Ajeez Rahman thanked all the dealers, partners, bankers, IT journalist and well wishers for all the support and Co-operation in the 15 years of journey of Index IT limited and 11 years partnership with Samsung Electronics.

The event was attended by over 800 guests who enjoyed the product presentation and the show.

REL Motors opens workshop, second showroom at Tejgaon

REL Motors Limited formally opened a workshop and second showroom at 344/B, Tejgaon I/A (near Kohinoor Chemical), Dhaka on August 14.

Chairman and Managing Director of Rangs Group of Companies Aktar Hussain inaugurated the workshop and showroom.

Vice Chairperson of Rangs Group of Companies Ms Sachimi Hussain, Deputy Managing Director of Rangs Electronics Limited J Ekram Hussain, Directors of REL Motors Ltd Sabur Ahmed, Ms Beanus Hussain and Tayabul Bahar, Director of REL Motors Workshop Division Iqbal Hassan and other high officials of different departments were also present on the occasion.

The newly inaugurated REL Motors workshop is especially designed following SUBARU standard (the brand is well known allover the world as quality automobiles, manufactured by Fuji Heavy Industries Ltd, Japan and till that have 19 international awards from USA, Australia, Germany, Japan and New Zealand). SUBARU is by now a well established prime brand of automobiles. The workshop is capable of handling repair and maintenance jobs of all sorts of automobiles and equipped with highly skilled engineers and technicians with precession tolls and equipments headed by Mr. Iqbal Hassan, Director, who happens to be one of the top most automobiles engineers in the country, having experience of over 20 years in the field.

Dollar slips from 6-mth high vs euro as oil rebounds

Reuters, Tokyo

The dollar hit a six-month high against the euro on Monday then slipped as oil and commodity prices bounced back, but losses were limited on mounting worries that the euro zone economy is stalling.

Oil rose more than $1 to above $115 a barrel on supply concerns, as markets settled down from a sharp sell-off in the euro, Australian dollar and commodities in the past two weeks when investors unwound bets on the global economy holding up.

Gold jumped more than $10 to near $800 and was up from a nine-month low, recovering from last week's sell-off and helping the Aussie dollar climb.

The dollar remained vulnerable to a further recovery in oil and commodities because their tumble had reinforced its broad gains, traders said.

As investors bailed out of bets that Europe and the global economy could withstand the U.S. downturn and credit crisis, the euro has plunged nearly 6 percent against the dollar in just two weeks. "The pace of dollar appreciation versus the euro is too fast," said Tomoko Fujii, head of Japan strategy and economics at Bank of America.

Fujii said that while the dollar's gains were not yet backed by an improving economic outlook, "it is clear there has been a major disappointment with the euro."

The euro fell to a six-month low of $1.4645 on trading platform EBS in early Asian trade before recovering to $1.4744 up 0.4 percent from late Friday U.S. trade. If economic data this week show more troubles in the euro zone and stoke expectations for eventual interest rate cuts, any rebound in the single currency will prove short-lived, traders and analysts said.

"The market theme is now on when the ECB will cut interest rates, with traders expecting the ECB to offer some signal in the autumn and follow through with action next year," said Hiroshi Yoshida, a trader at Shinkin Central Bank.

This week's economic reports in Europe includes Germany's ZEW gauge of economic sentiment and euro zone service sector activity. Last week's data showed euro zone growth contracted in the second quarter for the first time ever.

The dollar index, which measures the dollar's value against a basket of six currencies, fell 0.4 percent to 76.878 down from a seven-month high of 77.268 struck on Friday.

The dollar's stronger tone was seen likely to last for a while as investors see growing signs of economic deterioration in other regions while the U.S. economic slowdown may be moderating.

Market expectations were growing for central banks in Australia and Britain to cut interest rates in coming months. In contrast, the Federal Reserve was expected to keep U.S. rates on hold for a while, after slashing them over the past year.

"Investors are gradually recovering confidence in the dollar, and the main driver is a drop in oil and other commodities prices," said a senior dealer at a European bank.

The dollar's gains may be limited against the yen, which could strengthen as Japanese retail traders cut big positions in Australian and New Zealand dollars to try to limit losses from the sharp slide in those currencies over the past few weeks.

The dollar was down 0.3 percent at 110.19 yen off a seven-month peak of 110.67 yen reached on Friday. The euro edged up 0.1 percent to 162.48 yen.

Japanese buying of yen related to the redemption of U.S. bonds helped boost the yen. On Friday, the U.S. Treasury issued $26 billion of coupons at the same time as $43 billion of Treasuries matured.

The recovery metal prices lifted the Australian dollar 0.8 percent to $0.8725.