The New Nation - Internet Edition

Country's trade gap reaches $7.5 billion as import soars

BUSINESS REPORT

The country's trade deficit surged by 51 per cent to $7.52 billion in the fiscal year 2007-08, reflecting the soaring cost of food and fuel imports, Bangladesh Bank officials said yesterday.

The cost of food grain imports quadrupled from a year ago between July 2007 and June 2008 due to sharp rise in global food prices and local supply shortages after floodings and a deadly cyclone destroyed nearly 3 million tonnes of rice and wheat.

"We had to import a huge quantity of rice after crop losses due to last year's natural disasters when the price per tonne of rice soared to $1,000 from $400 per tonne," a senior Bangladesh Bank official said.

Imports in fiscal 2007-08 increased by 25.6 per cent from last year, while exports rose 15.87 per cent, the central bank said. "At the same time, an abnormal rise in the price of fuel and fertiliser in global markets have substantially increased the country's import costs, while export earnings failed to reach target," the official said.

Rocketing food prices also pushed the country's annual consumer price inflation into double digits through the 2007-08 fiscal year, officials said. 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.

The balance surplus was only $604 million compared with $1.49 billion a year earlier. Bangladesh received $7.9 billion in remittances in 2007/08, nearly a third higher than the previous fiscal year.

The cost of food grain imports quadrupled from a year ago between July 2007 and June 2008 due to sharp rise in global food prices and local supply shortages after floodings and a deadly cyclone destroyed nearly 3 million tonnes of rice and wheat.

"We had to import a huge quantity of rice after crop losses due to last year's natural disasters when the price per tonne of rice soared to $1,000 from $400 per tonne," a senior Bangladesh Bank official said.

Imports in fiscal 2007-08 increased by 25.6 per cent from last year, while exports rose 15.87 per cent, the central bank said. "At the same time, an abnormal rise in the price of fuel and fertiliser in global markets have substantially increased the country's import costs, while export earnings failed to reach target," the official said.

National Bank signs deal with Sungard System of Malaysia

BUSINESS REPORT

An agreement has been signed between National Bank Ltd and Sungard System Access Malaysia SDN BHD in a signing ceremony held at National Bank Ltd, Head Office in Dhaka recently.

The deal will help augment of upgradation of Card Software. With this upgradation the bank will be able to provide latest technological services to its card holders.

Md Abdur Rahman Sarker, Managing Director of National Bank Ltd and Ms Wan Mai Gan, Cynthia, Vice President of Sungard System Access Malaysia SDN BHD signed the agreement on behalf of their respective organisations.

Mohsin-UI-Karim, Azizur Rahman and Masqur Ahmed, Deputy Managing Directors, Shamsul Huda Khan, Executive Vice President and Md. Nazrul Islam and Md Nazrul Islam Khan, Vice Presidents of Card Division and other officials of both the organisations were also present on the occasion.

South Korea to recruit 7,000 workers from Bangladesh

BUSINESS REPORT

South Korea will recruit over 7,000 skilled and semi-skilled workers from Bangladesh in the next 16 months.

Sources at the South Korean Embassy in Dhaka told The New Nation yesterday that around 3,000 Bangladeshis would get jobs in South Korea's construction, textile, fisheries, agriculture, electronics and machinery sectors this year and the rest in 2009.

"We would recruit around 3,000 workers under the first 'Employment Permit System (EPS)' system this year. In 2009, the number of recruitment will be around 4,000," a official of the embassy said.

He said, "We need a huge number of overseas workers as the population growth in South Korea has become stagnant. There are jobs available in almost every sector."

Over 5.6 million Bangladeshis are now living and working in more than 100 countries in the world. Southeast Asian countries and the Middle East countries are the main destinations.

Taiwan to invest Tk 500m at Comilla EPZ

BUSINESS REPORT

M/s. Hun Hsin Textile Co (BD) Limited, a Taiwan-based company, will set up a textile yarn manufacturing industry at the Comilla Export Processing Zone (EPZ).

The 100 per cent foreign owned company will invest about Tk 500 million in setting up their plant and will produce textile yarn products. The company will create employment opportunity for 1237 Bangladeshis and 11 foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and the M/s Hun Hsin Textile Co. (BD) Limited in BEPZA Complex in the city Sunday.

Prasanta Bhushan Barua, member (investment promotion) of BEPZA and Sung Kung Tsao, managing director of M/s. Hun Hsin Textile Co. (BD) Textile Limited signed the agreement on behalf of their respective organisations.

Brig General Jamil Ahmed Khan, ndc, psc, executive chairman of BEPZA and other officials from respective organisations were present on the occasion.

Mercantile Bank signs remittance arrangement with Bangladeshi Money Exchange Ltd, Canada

BUSINESS REPORT

Mercantile Bank Limited recently signed an agreement with Bangladeshi Money Exchange Limited, Canada.

MA Shahjahan, Deputy Managing Director of Mercantile Bank Limited and Kazal Billah, President and CEO, Bangladeshi Money Exchange Limited, Canada signed the agreement on behalf of their respective organizations.

At the signing ceremony, Dewan Mujibur Rahman, MD and CEO, AKM Shahidul Haque, Additional Managing Director, MA Yousuf Khan, Senior Executive Vice President, Md Abdul Jalil Chowdhury, Senior Executive Vice President, Monindra Kumar Nath, Senior Executive Vice President and CFO and other executives of the bank were also present.

With this agreement Bangladeshi expatriates will now be able to remit their hard earned money home from Canada easily and quickly through Mercantile Bank Limited.

BB order against closure of Arab Bangladesh Bank Foundation stayed

BUSINESS REPORT

A High Court Division bench of the Supreme Court has stayed the Bangladesh Bank order to close down the activities of Arab Bangladesh Bank Foundation.

The High Court bench has also issued a rule nisi on Bangladesh Bank in this respect. The same order has also stayed the order of forfeiture of 6.12 per cent shares of IFIC Bank Ltd held by the Foundation.

AB Bank had filed a writ petition with the High Court Division of Bangladesh Supreme Court on September 4, 2008 against an earlier Bangladesh Bank order to close the activities of Arab Bangladesh Bank Foundation within three months and forfeit 6.12 per cent shares of IFIC Bank held by Arab Bangladesh Bank Foundation.

It was apprehended by the related quarters that the closure of Arab Bangladesh Bank Foundation would have a negative impact on the currently volatile stock market and also on the small investors casting overall shadow on the developing capital market of the country.

United Airways to fly to India

BUSINESS REPORT

Country's private airline United Airways has said it would open its first international route with a daily flight between Dhaka and Kolkata from September 24.

United Airways also plans to introduce flights on the Chittagong-Kolkata, Dhaka-Kathmandu and other regional routes soon, to meet fast-growing demand for air travel, said Tasbirul Ahmed Choudhury, head of the company.

The airline, which began flying on Bangladesh domestic routes in 2007, will initially operate international flights with two Canadian Dash-8-100 aircraft.It plans to add two more Dash-8-300s and six big jets for its international operations within the next five years, Tasbirul said. New destinations would include India's Guwahati, Mumbai and Chennai.

"We also hope to expand our operations to Bangkok, Kuala Lumpur, Bahrain and Dubai by July 2009," Tasbirul added. Currently, four private airlines and national flag carrier Biman Bangladesh Airlines connect Bangladesh to regional and world destinations. Bangladesh's aviation market is growing by around 7.5 percent annually.

Abu Sadek Md Sohel new Addl MD of SIBL

BUSINESS REPORT

Abu Sadek Md Sohel has recently been made Additional Managing Director of Social Investment Bank Ltd.

Prior to that, he was the Deputy Managing Director of the same bank from September 22, 2005. He became Deputy Managing Director on the 25th July, 2005 while he was in Agrani Bank.

He began his banking career from March, 1977 as Senior Officer of Sonali Bank. He served Sonali Bank in different positions till April 03, 2001. He became General Manager on April 04, 2001 and served one year in BKB and three years in Agrani Bank as General Manager. He attended different overseas Trade Seminars in Hong Kong, Bangkok, Frankfurt, Shanghai, Paris and Katmandu. He also attended long training course on Credit Analysis at New York, USA arranged by FSRP/USAID and training course on Project Management arranged by the Economic Development Institute of the World Bank. He was born on January 1, 1952 in Netrakona.

Int'l Angel Association holds speech contest on Hiroshima Day, World Peace

Speech Contest for School Students about Hiroshima Day and World Peace was held on August 27 last at International Angel Association, a voluntary organisation of Japan, at Konabari in Gazipur.

Azizul Bari, Executive Director of International Angel Association and Cultural Secretary of the Embassy of Japan Mr Omura Hiroshi was present the participants of the contest.

DBBL conducts Eye Camp programme in Lalmonirhat

As a part of DBBL's philanthropic activities to serve distressed humanity, the bank has taken a noble initiative of operating 12,000 cataract patients across the country, specially the rural poor who have no means to undertake cataract operation by themselves.

Dutch-Bangla Bank organised a three-day long IOL operation camp (cataract operation) at the bank's own cost at RDRS Eye Hospital in Lalmonirhat district town recently. About 100 cataract patients were operated upon successfully.

Dr Mozammel Hossain Khan, Medical Consultant of Dutch-Bangla Bank visited the operation camp and inquired about the operated cataract patient recently. Dr. Zakiul Islam Faruquie, eminent eye specialist and social worker of the district was present at that time.

Problems at Sonamasjid Land Port discussed

Our Correspondent, Chapainawabganj

A views exchange meeting on problems at Sonamasjid Land Port was held at the office of Panama-Sonamasjid Port Link Limited at the land port in Chapainawabganj district on Monday. A committee comprising personnel of joint forces, police, RAB, BDR and civil administration exchanged views with the customs officials, clearing and forwarding agents, and leaders of labour union, on identifying problems in gearing up the port operation activities. The meeting was held with commanding officer of the 6th Cavalry at Bagra area of Bangladesh army Lt Col Sharif Ahsan in the chair. The meeting discussed various problems including, insufficient infrastructure, inadequate Customs manpower, and lacks in residential and banking facilities at the port.

CA to visit China from Sept 15

BUSINESS REPORT

Chief Adviser to the caretaker government Dr Fakhruddin Ahmed will pay a four-day official visit to China from September 15 at the invitation of Chinese Premier Wen Jiabao. "I think it is going to be a fruitful visit. We have regular and effective interactions at the leadership level of the two friendly countries," Foreign Secretary Touhid Hossain, said while commenting on the visit slated between September 15-18. The chief adviser was scheduled to visit Beijing much earlier but the trip was delayed due to the devastating earthquake in Sichuan province and the Beijing Olympics thereafter, he said. During the visit, the head of the caretaker government will call on Chinese President Hu Jintao and hold bilateral talks with the Chinese premier.