Bangladesh to export ships to Europe by 2011

http://www.thebangladeshtoday.com/archive/December%2008/31-12-2008.htm#national

Bangladesh to export ships to Europe by 2011
BSS, Chittagong

Western Marine Shipyard Ltd. (WMSL), a local shipbuilding company, will export 12 ships, weighing 5,200 tonnes each, by 2011 to Germany, Holland and Denmark expecting to fetch about Taka 900 crore. Commerce and Education Adviser Dr Hossain Zillur Rahman inaugurated building of the 12 ice class ocean-going multipurpose vessels at the WMSL yard at Shikalbaha on the south bank of the river Karnaphuli in the district.

The adviser along with guests from home and abroad formally began the manufacturing in the “keel-laying ceremony” that symbolizes hitting hammer on iron-plate of the proposed structure of a ship to start the work.

Chairman of the WMSL M Saiful Islam presided over the inaugural function, also addressed by German Ambassador to Bangladesh Frank Meyke, Denmark Ambassador Bea M Ten Tusscher and Shipping Secretary ATM Mokter Hossain, Managing Director of AB Bank Ltd Kyser A Chowdhury and Managing Director of WMSL Sakhawat Hossain.

Dr Hossain Zillur termed the export of such a big number of ships as a milestone for the country’s shipbuilding sector and said it would definitely help Bangladesh find a secure place in global ship manufacturing market. He said the sector has enormous potentials and it would contribute to making Bangladesh a middle-income country soon.

“The sector has huge potential of contributing to the economy after garment sector and shipbuilding companies should not compromise with the quality in keeping the reputation in global export market,” he said. He said separate rules and regulations are needed for the shipbuilding sector.

The adviser said pledges of giving special attention by two major electoral alliances in their polls manifestos for the promotion of the sector is really encouraging. Dr Hossain Zillur asked the commercial banks to come forward in providing soft-term loans to the entrepreneurs in the sector.

Trading of Maksons Spinning, National Housing begin tomorrow

http://www.thefinancialexpress-bd.com/2008/12/31/54636.html

Trading of Maksons Spinning, National Housing begin tomorrow

FE Report

The trading of Maksons Spinning Mills Limited and National Housing Finance and Investment Limited will begin tomorrow (Thursday) on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

The Dhaka Stock Exchange (DSE) board in a recent meeting approved the listing of the companies and fixed the date of debut trading.

DSE Trading Code for the National Housing Finance and Investment Limited is “NHFIL” and DSE company code is 20623, while DSE Trading Code for Maksons Spinning Mills Limited is “MAKSONSPIN” and DSE company code is 17448.

The Maksons Spinning floated eight million ordinary shares with the face value Tk 10 each raising Tk 80 million from the stock market.

The company will be the first textile issue in the last six years when Metro Spinning got listed on the stock exchanges in 2002.

Metro Spinning will be the 40th listed issue in the textile sector of DSE.

The raised fund from initial public offering will be used for loan repayment of Maksons Spinning to the Southeast Bank Limited.

The paid-up capital of the company is Tk 340 million as of April 26, 2008.

Subscription for ordinary shares allotment of Maksons Spinning Mills Limited opened on October 12, and closed on October 16 for the resident Bangladeshis and on October 25 for non-resident Bangladeshis.

The National Housing Finance and Investment Limited floated 0.50 million ordinary shares with the face value Tk 100 each raising Tk 50 million from the stock market. The pre-IPO paid up capital is Tk 400 million as of December 31, 2007.

Subscription for ordinary shares allotment of the National Housing and Finance Limited opened on October 5 and closed on October 9 for the resident Bangladeshis and on October 18 for non-resident Bangladeshis.

Apparel exporters eye bigger Japanese market share

http://www.newagebd.com/2008/dec/30/busi.html#2

Apparel exporters eye bigger Japanese market share
Kazi Azizul Islam

Bangladeshi apparel exporters are seriously considering best possible utilisation of marketing opportunities in Japan as they understand at last that the Asia’s largest economy could be a lucrative new destination.

Industry sources said many Japanese importers were also considering Bangladesh as a very reliable sourcing destination as the recent debacle in garment manufacturing industries in China made them shaky.

‘We are doing specific studies on the characteristics of and opportunities in Japanese market, especially examining how Bangladeshi knitwear manufacturers can occupy a significant market share in Japan,’ Bangladesh Knitwear Manufacturers and Exporters’ Association president Fazlul Hoque told New Age.

Fazlul Hoque said besides being serious about the Japanese market, his association was eying the knitwear markets in Turkey and Poland.

‘We need to diversify markets and anchor in other potential destinations,’ said the president of the association representing knitwear exporters, three-fourth of whose shipments are destined for European countries.

Industry insiders said local exporters might have felt the necessity of fresh drives in Japan after a leading Japanese fast fashion retailer, Uniclo, had recently set up a joint-venture in Bangladesh to manufacture and source made-in-Bangladesh garments.

The Japanese market of knitted wears is worth tens of billions of dollars and as the young people there like knitted fashion wears so the market is trendy, an exporter pointed out.

After the USA and some central European countries, Japan is a major destination for apparel exports. But, utilising the geographical advantages, Chinese exporters have grabbed that market.

One leading knitwear exporter felt that after facing the manufacturing debacle recently, especially the sharp rise in Chinese cost of production, the Japanese importers were anxious and searching for alternative sources for the long run.

‘It’s high time for Bangladeshi apparel exporters to work to bag a slice of the Japanese market-pie.’

According to the Japan External Trade Organisation, Bangladesh’s exports to Japan amounted to around $167 million in the first 10 months of the current year, posting a 13 per cent year-on-year growth.

In 2007, Bangladesh’s exports to Japan amounted to $175 million with a year-on-year growth of 9 per cent only.

At present, apparel export accounts for a minor portion of Bangladesh’s export earnings from Japan. Finished leather, shoes and frozen shrimps are the country’s top export items to Japan.

In 2007-08 fiscal ended in June saw Bangladesh garment exports amounting to $10,700 million, with only $28 million coming from Japan.

Japan-Bangladesh Chamber of Commerce and Industry president Abdul Hoque foresees increased volume of made-in-Bangladesh garments in Japanese market in the coming days.

Acknowledging the Japanese retailer giant Uniclo’s step to source from Bangladesh, Abdul Hoque said, ‘As a global retailer, Uniclo’s sourcing from Bangladesh may change the scenario of Japan’s import from Bangladesh.’

He, however, pointed out that, as the Japanese market was very much quality conscious and trendy so the Bangladeshi exporters needed to put much efforts and professionalism in their marketing missions to Japan.

‘Bangladeshi apparel exporters should make specific studies on the Japanese market and they need to carry out marketing activities professionally and in collaboration with Japanese importers.’

With Japanese yen getting stronger, it is high time for Bangladeshi apparel exporters to start exploring that market, Abdul Hoque pointed out. ‘Export to Japan is much more lucrative now.’

Agri credit disbursement posts 27.22pc growth in Jul-Nov

http://www.thefinancialexpress-bd.com/2008/12/29/54469.html

Agri credit disbursement posts 27.22pc growth in Jul-Nov

FE Report

Agricultural credit disbursement recorded a robust growth of 27.22 per cent in the first five months of the current fiscal following some measures including relaxation of its rules and regulations by the central bank.

Eight state-owned banks and financial institutions along with the private commercial banks (PCBs) disbursed Tk 33.77 billion as farm credit during July-November period of the fiscal 2008-09 against Tk 26.55 billion of the corresponding period of the previous fiscal, according to the central bank statistics.

During the period, eight state-owned banks and financial institutions disbursed Tk 26.38 billion compared to Tk 18.69 billion of the same period of the previous fiscal.

While the PCBs lent Tk 7.39 billion to farmers as against Tk 7.86 billion of the previous fiscal.

The state-run banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).

The loans have been given to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation.

The banks and financial institutions have achieved 36.02 per cent of their annual target, which has been fixed at nearly Tk 94 billion. The amount is 13 per cent higher than the last fiscal, the BB’s data showed.

“We are hopeful about achieving the agricultural credit disbursement target by the end of this fiscal,” a senior official of the Bangladesh Bank (BB) told the FE Sunday.

He also said the central bank wants to ensure credit facilities for each interested farmers across the country without any harassment.

“The district coordination committee on agricultural credit monitoring and supervision has already been strengthened aiming at facilitating the agriculture sector across the country,” the BB official added.

The official also said the central bank has made it mandatory for all local and foreign commercial banks to disburse agriculture credit from this fiscal to help ensure food security of Bangladesh.

On October 21 last, the central bank of Bangladesh relaxed its credit policy with a view to facilitating the disbursement of agricultural loans to sharecroppers and landless farmers across the country, officials said.

Under the new policies, sharecroppers, who are directly engaged in farming, will be entitled to receive agriculture loan.

The recovery of farm loan, however, came down to Tk 21.70 billion during the period from Tk 22.53 billion of the same period of the previous fiscal.

The position of overdue agricultural credit as percentage of total outstanding improved, decreasing from 40.64 per cent at the end of November 2007 to 35.63 per cent at the end of November 2008, according to the BB Major Economic Indicators: Monthly Update for December 2008.

Bangladesh bags $20m orders for two small vessels

http://www.thefinancialexpress-bd.com/2008/12/28/54380.html

Bangladesh bags $20m orders for two small vessels

Kayes M Sohel

Bangladesh has received orders worth $ 20 million for building two small vessels and a tugboat from Middle East countries at the region’s biggest shipbuilding fair in Dubai.

The fresh orders give testimony to Bangladesh’s emergence as a global hub for small ocean-going ship building.

The country’s ship builders, Ananda Shipyard and Slipways, bagged the new orders at the fair called Seatrade Middle East Maritime 2008, the largest maritime event of its kind in the region.

“We have received orders worth $ 11 million from Iraq to build two crew supply vessels and $ 9 million from Iran for building a tugboat,” said Abdullahel Bari, the chairman and the managing director of Ananda, the country’s largest ocean-going ship building company.

The two vessels weighing 100 tonnes each will be delivered to Iraq by June, 2010 and a tugboat to Iran by March, 2010, he added. With the latest orders, Ananda’s total ‘confirmed’ export orders have now crossed worth $400 million.

Another two local shipbuilding companies -Highspeed Shipbuilding and Engineering Company Ltd, and Karnaphuli Ship Builders-took part in the fair. A total of 313 companies from 33 countries attended the three-day fair that ended December 16 in the United Arab Emirates. The exhibition is held every two years in Dubai.

Though the two companies did not receive any spot orders they are in negotiations with some Middle East countries for contracts, according to the officials.

“The atmosphere was subdued at Dubai fair because of global financial downturn,” said Kazi Amirul Islam, captain of Karnaphuli Ship Builders.

In October this year, Bangladesh made a big impact in the world’s biggest shipbuilding fair in Hamburg, bagging export orders worth US$250 million.

“We are, however, hopeful that the demand for Bangladeshi built ships will gather pace because of its lower cost and geographical strategic position,” said Islam of Karnaphuli Ship Builders that has already built a number of tugboats for Chittagong Port Authority (CPA).

Previously, such boats were imported from Denmark.

He said: “There will be talks with an Iraqi company for building water vessel and a tugboat. A Sharjah-based shipping company is expected to visit our shipyard soon.”

Bangladesh came into limelight in April 2007 when Ananda signed deals worth around $100 million with two German shipping companies to build eight vessels with capacity for carrying 325 containers by June 2010.

The country has become a new destination for construction of small sea vessels, which have an annual market of $400 billion, as traditional shipbuilding nations such as South Korea, Japan and China now focus on large vessels.

Even Vietnam, which is relatively new in shipbuilding, is no longer interested to build ships weighing less than 25,000 tonnes.

Aristopharma to add 3 more export destinations in ‘09

http://www.thefinancialexpress-bd.com/2008/12/28/54352.html

Aristopharma to add 3 more export destinations in ‘09

FE Report

Leading pharmaceuticals manufacturer Aristopharma has set for itself the target of Tk. 3.0 billion in terms of sales for the year 2009 as the local drug manufacturer aims to strengthen its position among the top 10 players of the country.

At the same time, the company would like to add three more export destinations, namely, Malaysia, Lebanon and Nigeria to its current list of nine countries in the upcoming year as it aimed to strengthen its foreign portfolio.

These were revealed at the company’s annual sales conference held at the Bangladesh-China Friendship Conference Center in the city Saturday.

Chairman and Managing Director of Aristopharma M A Hassan chaired the event while Director (Marketing and Commercial) Md. Mahboob Hassan, Director (Production) Md. Mahmud Hassan and Director (Finance and Administration) Md. Shahid Hassan and Marketing Manager Noor Hossain also spoke on the occasion.

“Our company does not believe that our responsibility ends only with the manufacturing and marketing of quality medicines. It also extends to the total improvement of the healthcare sector of the country,” M A Hassan said.

The annual occasion capped an eventful year for the local drug manufacturer when the company became the first pharmaceutical manufacturer in Bangladesh to conduct bio-equivalence research for its medicine.

At around the same time, the company has introduced its 30 new products to the market while experiencing a growth of more than 20 per cent, which is almost twice as much as the overall growth of this industry in the country, Noor Hossain later told the FE.

Aristopharma at present has a market share of around 5.2 per cent in the local pharmaceuticals market while the company aims to establish itself as one of the top five players by the year 2009.

Starting its journey in 1986; Aristopharma first began to export its products overseas in the year 2000. It is also the first pharmaceutical company in Bangladesh to export its products to Hong Kong as well as the second company to make export to Singapore.

Forex reserve marks 10.5 per cent rise

http://www.newagebd.com/2008/dec/28/busi.html#2

Forex reserve marks 10.5 per cent rise
Bangladesh Sangbad Sangstha . Dhaka

The country’s foreign exchange reserve has gone higher to $5.80 billion as on the close of last week (December 23) from $5.25 billion on the close of last month, indicating a rise by 10.5 per cent over a period of less than a month.

The reserve on June 30 this year was $6.15 billion while it was $5.422 billion on December 23 last year, according to Bangladesh Bank data released on Thursday.

The wage earners’ remittance sent by the non-resident Bangladeshis during November this year amounted to $761.38 million against $617.39 million, marking a rise by 23.32 per cent.

The remittance sent through the banking channel during the five months of the current fiscal (July to November) totalled to $3.75 billion against $2.81 billion, showing a rise by 33.39 per cent. The current account balance during July to September of the fiscal registered a deficit of $280 million, against a deficit of $59 million. The current account marked a surplus balance of $672 million during the fiscal year 2007-08.

Rate of inflation on the basis of 12 months average during November this year was 9.37 points from 9.80 in October and 10.00 in March this year, while it was 8.65 in November and 9.11 in December last year. On point-to-point basis, the inflation was 6.12 points in November, 7.26 in October and 10.06 in June this year, while it was 11.21 in November and 11.59 points in December last year.

The call money rate on December 23 this year was 9.39 per cent against 12.64 per cent during the corresponding period last year, while it was 8.00 per cent in November and 4.78 per cent in June this year.

‘Self-reliance on oil seeds, pulse and spices productions are possible’

http://www.bssnews.net/new/newsDetails.php?cat=8&id=7767&PHPSESSID=ce0df507bef7c4614e85bbb7d7ab5726

‘Self-reliance on oil seeds, pulse and spices productions are possible’

RANGPUR, Bangladesh, Dec 26 (BSS) – Experts and scientists have opined that the country has immense prospects to achieve self-reliance in oil seed, pulse and spice production by using latest agro- technologies and disseminating proper knowledge.

Self-reliance in edible oil could be achieved through increasing production of oil seeds in a comprehensive and well coordinated manner saving over Taka 5,000 crore annually by bringing its import to the zero level, they said.

They also underscored the need for increasing production of all varieties of pulse and spicy crops, especially the high yielding and hybrid varieties, throughout the country with a view to achieve a complete self-reliance on these essentials in near future.

To achieve the goal, the Department of Agriculture Extension (DAE) has been implementing a Special Action Plan (SAP) for increasing oil seed, pulse and spice productions in Rangpur Agriculture Zone (RAZ) as elsewhere in the country.

Read the full article: http://www.bssnews.net/new/newsDetails.php?cat=8&id=7767&PHPSESSID=ce0df507bef7c4614e85bbb7d7ab5726

Economy may achieve 6.5pc GDP growth

http://nation.ittefaq.com/issues/2008/12/26/news0035.htm

BB annual report published: Economy may achieve 6.5pc GDP growth

Staff Reporter

Bangladesh Bank yesterday predicted that country’s economy may achieve 6.5 per cent GDP growth in the current fiscal 2008-09 basing on the positive outcome of various reforms and improved performance by many productive sectors and application of better technology and skills in many other fields.

The central bank made the observation in its annual report 2007-08 released yesterday. It said based on continued positive development in various productive and service sectors, the country’s GDP growth may also increase to 7.0 per cent next year to reach 7.2 per cent in 2010-2011.

To attain the targets, it said what the country needs is to ensure a smooth transition to democracy in the first place, while in the economic front; it should be able to keep inflation down.

The country would also require maintaining better macroeconomic stability, improved business and investment climate, achieving higher growth in industrial and service sectors and accelerated growth in agriculture to ensure food security, diversification of exports, skill development and application of better technology and continuation of financial sector reforms.

Bangladesh Bank said, all these factors will be able to bring about significant dent on the country’s declining poverty level and improvement in the lot of the common people as envisaged in the Poverty Reduction Strategy Paper (PRSP), which now stands at the core of the country’s development planning.

It also mentioned certain risk factors saying much of the growth forecast would depend on how the next government would be able to overcome them.

Some of these risks are inflationary build up, possible higher prices of fuel and other essentials in global market, impact of floods and climate change related disasters, infrastructure related impediments such as removal of gas,

electricity, port and transportation problems.

They also include possible market shrinkage of apparel products in the USA and other major markets consequent upon the current recessionary trend, slowdown in the flow of development assistance in the backdrop of global economic recession.

The economy may also face further risks if the forthcoming government fails to ensure food security, improve productivity and diversify exports to reduce dependence on limited number of exportable.

The report dwelt on the central bank’s performance in many fronts in running a prudent, cautious monetary policy supportive to economic and business growth, alongwith various reforms to restructure the country’s banking sector.

It put emphasis on maintaining a stable monetary and fiscal policy as well as adequate subsidy to farm inputs and allocation to social safetynet programmes.

The Bangladesh Bank identified labour unrest in the garment sector as a highly critical issue and emphasized the need for better owner-worker relations to avoid crisis that may bring setback to this highly competitive sector in the global market.

The report further stressed the need for improving the design and fashion wing of the garment sector, removal of infrastructural problems affecting production and shipments and creating a long term buyer-seller relation to plan its future growth.

The industry should also take step, it said, to widen the market access to countries like Australia and Japan, which now allow limited duty-free access but have bigger market prospects for Bangladesh exports.

Petrobangla starts exploration of coal in Dighipara next year

http://www.thefinancialexpress-bd.com/2008/12/26/54185.html

Petrobangla starts exploration of coal in Dighipara next year

FHM Humayan Kabir

Petrobangla, the country’s state-owned oil, gas and mineral corporation, is likely to start exploration work at the Dighipara coalmine early next year aiming to ascertain the actual reserve and draw up a future mine development plan, a top official said.

“We’ll sit with government agencies concerned and energy experts in the first week of January for taking up an exploration strategy of the coalmine,” Petrobangla Chairman Jalal Ahmed told the FE.

In a landmark move, the government for the first time has awarded Petrobangla a licence to explore the Dighipara coal zone in Bangladesh’s northern Dinajpur.

Petrobangla signed a deal with the Bureau of Mineral Development (BMD), the coalmine licensing authority of the government, on December 21 this year.

Dighipara is one of the five identified coal zones in the country where geologists earlier ascertained a probable 200 million tonnes of reserve of high quality bituminous coal.

Petrobangla chairman Jalal Ahmed said: “At January meeting we will seek expert opinion of the participants and set exploration strategy on the basis of their recommendations.”

State-owned Geological Survey of Bangladesh (GSB), Bangladesh Petroleum Exploration and Production Company Ltd. (BAPEX), Barapukuria Coal Mining Company Ltd. (BCMCL) and local energy experts will be invited to attend the meeting.

Jalal Ahmed said: “We would prefer our local expertise to help explore the Dighipara mine. We have different options. We can appoint the state-run BCMCL or any other companies. This issue will also be settled at the January meeting.”

BCMCL is a company under Petrobangla, which is operating at the country’s one of the mega coal projects at Barapukuria in Dinajpur. The mine has started full production from September 2005.

A senior energy ministry official said since the country’s potential gas reserve is depleting fast the best option at this moment is the use of coal for generating power.

“We have had target to utilise the Dighipara coal for generating power,” he said.

According to Petrobangla, there are seven structures in the Dighipara coalmine. The thickness of coal structure is 72 metre and the depth of the pit is 120 to 400 metres.

Five coal fields have so far been discovered in the country with estimated total reserve of more than 2,700 million tonnes. The energy value of the country’s current coal reserve is almost twice the value of its existing gas reserve.

RMG exports to Canada rise well

http://www.newagebd.com/2008/dec/26/busi.html#1

RMG exports to Canada rise well
Kazi Azizul Islam

Although Canadian import of apparels slowed down this year, Bangladesh’s garment export to that North American country has posted a satisfactory growth rate, say officials at the exporters’ associations.

Diversion of a portion of Canadian apparel imports from China to Bangladesh in the past few months helped the exporters, they pointed out.

In January-October, Bangladesh’s readymade garment export to Canada grew by more than 12 per cent over the corresponding period of the previous year, says a report.

The report of the Canadian trade department which New Age has obtained from the Export Promotion Bureau shows Bangladesh apparel exports to Canada amounting to $484 million in the period.

In January-October, Canada’s import of apparels amounted to $7.14 billion, registering only a three per cent year-on-year growth.

Bangladesh is the second largest source of Canadian imports of readymade garments after China. Apparels account for more than 85 per cent of Bangladesh’s total export earnings coming from Canada.

Last year Bangladesh experienced less than 4 per cent growth in its apparel export earnings from Canada, due to a strong resistance from China, exporters argue.

With an 18 per cent year-on-year growth, China occupied more than half of the $7.3 billion plus Canadian market of imported apparels in 2007. But, in January-October 2008 Chinese exporters saw less than four per cent growth, the report says.

Among other top apparel exporting countries to Canada, USA saw 8 per cent growth in shipment to Canada in the current year, India minus 10 per cent growth, and Mexico minus 4 per cent.

Earlier in 2004, Bangladesh’s RMG exporters saw a robust growth in Canadian market as Canada provided duty-free market access, with relaxed rules of origin, to Bangladesh and other least developed countries.

The export of made-in-Bangladesh garments jumped to $347 million that year from the $217 million of the previous year.

2,155 Bangladeshis to get jobs

http://nation.ittefaq.com/issues/2008/12/26/news0047.htm

2,155 Bangladeshis to get jobs: Korean co to set up shoe making unit at KEPZ investing $12.5m

NATION BUSINESS REPORT

M/s Footwear Manufacturing Company Limited, a Korean company will set up a shoe manufacturing industry at Karnaphuli Export Processing Zone.

This 100 per cent foreign-owned company will invest 12.5 million US dollars in setting up its unit and will produce to export annually 2.4 million pairs of leather footwear and accessories products. The company will also create employment opportunity for 2,155 Bangladeshis and five foreign nationals.

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority and M/s Footwear Manufacturing Company Limited of Korea at the BEPZA Complex, Dhaka on December 24 last. Md Farhad Uddin, Member (Engineering) of BEPZA and Yang Young Sool, Managing Director of M/s Footwear Manufacturing Company 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 the respective organisations were present on the occasion.

PCBs double industrial lending

http://www.thedailystar.net/newDesign/news-details.php?nid=68840

PCBs double industrial lending

Private commercial banks (PCBs) have almost doubled their stake in industrial term lending outpacing state-owned banks, a domination the latter enjoyed for years, central bank data show.

“With a very high level of past overdue, their (state-owned banks) actual role in industrial lending has become quite minor,” said a senior Bangladesh Bank (BB) official quoting its report of the 2007-08 financial year.

As per the report, the industrial term credit disbursed by all financial institutions in the country last fiscal stood at Tk 20,150 crore.

Of which, 30 PCBs alone disbursed Tk 13,650 crore, which was Tk 7,540 crore in FY 2006-07. Nine foreign commercial banks gave Tk 2,790 crore and non-bank financial institutions Tk 2,390 crore.

On the contrary, four state-owned commercial banks (SCBs) and five specialised banks disbursed only Tk 1,320 crore or 6.6 percent.

Of the amount, Sonali, Janata, Agrani and Rupali banks disbursed Tk 980 crore, while the specialised Bangladesh Krishi Bank, Rajshahi Krishi Unnyan Bank, Bangladesh Shilpa Bank, Bangladesh Shilpa Rin Sangstha and BASIC Bank disbursed Tk 340 crore.

Such loan disbursement by the banks and financial institutions marked a 62.6 percent rise and recovery 50.2 percent to Tk 13,620 crore.

According to bankers, the SCBs’ contribution to industrial credit was above 80 percent until 1990, but the situation started getting reversed since the mid-90s with the more private banks’ into business.

Shahjahan Bhuiyan, managing director of United Commercial Bank Limited (UCBL), a first generation private bank, said professionalism, services and above all customers’ care have helped PCBs improve their stake significantly in lending.

SM Aminur Rahman, managing director of state-owned bank Janata identified some factors for the SCBs’ low volume of credit disbursement, which include the credit ceiling set by the central bank, lack in business confidence and the fall in commodity prices in the international market.

“We could not disburse a significant amount of industrial credit in 2008,” said Syed Abu Naser Bukhtear Ahmed, managing director and chief executive officer of Agrani Bank.

He blamed political instability for this poor project financing by the bank.

Janata Bank MD has added another point: “Businessmen also did not come up with new ventures in 2008.”

SM Aminur Rahman, however, claimed that it is the SCBs that still create new entrepreneurs, not the PCBs.

Bhuiyan opposed Rahman’s claim on developing entrepreneurship terming his idea ‘an outdated one.’

“Now PCBs are creating entrepreneurs, not the SCBs,” he added.

sajjad@thedailystar.net

Korean co to invest $12.5m in KEPZ

http://www.newagebd.com/2008/dec/26/busi.html#7

Korean co to invest $12.5m in KEPZ
Business Desk

Footwear Manufacturing Company Limited, a Korean company, will set up a shoe manufacturing industry in the Karnaphuli Export Processing Zone.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Korean company at BEPZA Complex in Dhaka on Wednesday, said a news release.

BEPZA member (engineering) Md Farhad Uddin and the company managing director, Yang Young Sool, signed the deal on behalf of their respective sides. The BEPZA executive chairman, Brigadier General Jamil Ahmed Khan, was present on the occasion.

Under the agreement, the company will invest $12.5 million in setting up the industry and will produce to export annually 2.4 million pair of leather footwear and accessories products.

The company will also create employment opportunity for 2,155 Bangladeshi nationals.

JETRO inks deal with BASIS: Promote Bangladesh’s software in Japan

http://nation.ittefaq.com/issues/2008/12/26/news0049.htm

JETRO inks deal with BASIS: Promote Bangladesh’s software in Japan

NATION BUSINESS REPORT

Japan External Trade Organisation (JETRO) has inked a deal with Bangladesh Association of Software and Information Services (BASIS) to promote Bangladesh’s software and IT enabled services (ITES) industry in Japanese market.

JETRO has signed a memorandum of understanding (MoU) with BASIS in this regard on December 15 last at the BASIS Secretariat in Dhaka.

Representative of JETRO-Dhaka Tomohiro Kinomoto and BASIS President Habibullah N Karim signed the MoU on behalf of their respective organizations.

BASIS Vice-President Shameem Ahsan, Chairman of BASIS Standing Committee on National Events A Towhid, Director-in-Charge of BASIS Standing Committee on National Events MA Mubin Khan were also present.

Under the MoU, JETRO will promote BASIS SoftExpo-2009 in Japan with the objective to attract Japanese software and ITES companies and bring in a high-level IT delegation from Japan during the exposition.

The two organisations will also work together aiming at promoting IT marketing ventures among the companies from Japan and Bangladesh on a regular basis. Another Japanese organisation, Japan International Cooperation Agency (JICA) has already selected Bangladesh’s growing software industry as the highest priority sector for export diversification.