Monthly Archives: September 2009

Export target set at $17.59b this fiscal

http://www.thefinancialexpress-bd.com/2009/09/17/79271.html

Export target set at $17.59b this fiscal

Siddique Islam

The government has set export target for the current fiscal at US$17.588 billion, marking a 13 per cent growth over that of the previous fiscal, officials said.

The Ministry of Commerce has convened a meeting today (Thursday) to finalise the export target, proposed by the Export Promotion Bureau (EPB), for fiscal 2009-10 (FY10).

Leaders of trade bodies, exporters and officials concerned will attend the meeting to be presided over by commerce minister Faruk Khan.

The meeting will also fix specific export targets for the Bangladeshi missions abroad in line with their previous performance, they added.

“We’ve estimated the export target in consultation with all stakeholders,” Vice-Chairman of the EPB Shahab Ullah told the FE Wednesday

The EPB is hopeful of achieving the export target for this fiscal, he said.

The EPB, while fixing the country’s export target, took the prevailing situation in the regional countries, including Vietnam, Cambodia and India, into consideration particularly that of apparel sector, he added.

The export target has been fixed on the basis of the last four fiscal year’s export performance that has increased almost $2.0 billion each year, the EPB officials said.

“We’ve estimated the target considering the global economic meltdown,” an EPB senior official said, adding that exports of both woven garment and knitwear would be increased further this fiscal because of price competitiveness over China.

The export target for readymade garment, officially known as woven garment, has been set at $6.687 billion for the FY10, recording a 13 per cent growth over that of the previous fiscal while knitwear export target has been set at $7.297 billion against $6.429 billion.

The export target for frozen food has been increased to $ $468 million for FY10 from $454.53 million earned in the previous fiscal year, according to the EPB estimation.

In fiscal 2008-09, the country’s export earnings stood at $15.565 billion, which was 4.50 per cent lower than the target of $16.298 billion set for the year, the EPB data showed.

Nine cos to take part in UK Call Centre Expo

http://www.thefinancialexpress-bd.com/2009/09/17/79240.html

Nine cos to take part in UK Call Centre Expo

The Bangladesh Association of Call Centre and Outsourcing (BACCO) is going to take part in the UK Call Centre Expo-2009 to be held in Birmingham on September 22-23.

Nine Bangladeshi companies are going to take part in the expo under the banner of BACCO with a view to promoting Bangladesh’s call centre business in the international arena.

In this connection an 18-member delegation of BACCO called on Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Zia Ahmed in the city recently, said a press reelase. A high-level delegation of the government led by Chairman of the Parliamentary Standing Committee on Ministry of Posts and Telecommunication (MOPT) Hasanul Haq Inu will also accompany BACCO members.

Website to promote Sundarbans launched

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Website to promote Sundarbans launched
Staff Correspondent

Sundarban Supporters’ Committee (SSC) launched a website to promote the Sundarbans yesterday.

KCC Mayor Talukder Abdul Khaleque inaugurated the website www.votesundarban.net at the Shahid Altaf Auditorium at Khulna City Corporation.

The KCC Mayor urged all to take advantage of internet to vote for Sundarbans to clinch its place among the seven new wonders of the world.

Convener of SSC Liakat Ali presided over the programme while lawmaker Nazrul Islam Manju, Vice Chancellor of Khulna University of Engineering and Technology Prof Md Nawsher Ali, Panel Mayor No 1 of KCC Azmol Ahmed Tapan, Editor of The Daily Tribune Begum Ferdousi Ali and Chief Executive of NGO Rupantar Swapan Guha also spoke.

SSC Member-Secretary Rafiqul Islam Khokon moderated the programme.

One district one product project on the move

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One district one product project on the move

Kawsar Khan

The government has primarily selected three products to develop under a “one district one product (ODOP)” scheme, which was chalked out to diversify the country’s export basket.

Export Promotion Bureau (EPB) of the government has selected agarwood of Moulvibazar, clay tiles of Satkhira, and rubber of Chittagong Hill Tracts to develop for attaining global standards and enhancing productivity.

The concept of ODOP was developed from the “One Village One Product” movement of Japan launched in 1989, which became successful and later was followed by a number of countries across the world.

“We have already made a plan, which is now awaiting approval of the commerce ministry, to develop these products,” said Shahab Ullah, vice chairman of EPB.

EPB officials said there is a huge demand for these products in the global market and Bangladesh has a potential to cater to the demand.

But now the country is failing to tap the potential because of poor expertise and absence of proper communication with the export market.

The EPB officials said the clay tiles of Satkhira have a huge demand in the European market but the local artisans are not capable enough for maintaining international standards.

In this context, EPB plans to assign consultants who would make the local artisans aware of the quality and train them in line with the export market requirements.

About 60 percent tiles break while burning if the clay for the tiles is not properly selected.

The experts will identify which type of clay is ideal for producing tiles, said an EPB official.

EPB has also found a huge demand for perfumes made from agarwood but the problems are inadequate trees and the indigenous production method.

“In the present method farmers hammer nail in agar trees, which is a very lengthy process. We have come to know about a kit being used instead of nail, which we would try to give to the farmers,” said the EPB official.

Experts in the field will also conduct research to enhance production of such perfume.

The ODOP project will also take initiatives to improve the quality of rubber produced in the country.

The EPB officials said the project was undertaken in the backdrop of a huge flow of rural population for jobs to the urban areas where most of the industrial units are located.

The project aims at creating employment opportunities locally through enhancing skill of the local artisans.

Another aim of the project is to reduce the country’s export vulnerability since only six major export items now account for 90 percent of the country’s total export earning.

For exporting garment products, manufacturers need to import a huge amount of raw materials, while items to be developed under ODOP project will be made of hundred percent local products, the EPB officials said.

“At first we had selected 14 products to develop under the project but the government approved three items since it could be burdensome to deal with many products at a time,” said EPB Director (Commodities) Omar Faruq.

kawsar@thedailystar.net

Export to grow 9.0pc in FY10, projects Citigroup

http://www.thefinancialexpress-bd.com/2009/09/16/79178.html

Export to grow 9.0pc in FY10, projects Citigroup

FE Report

The country’s export is expected to grow at a rate of 9.0 per cent in the fiscal 2009-10 (FY10), US-based Citigroup said in its latest projection.

This is a downward projection from 10 per cent it made in June this year.

With Bangladesh emerging as a ‘supplier-of-choice’, exports on a cumulative basis remained in positive territory, up 10.3 per cent during July-June period of the fiscal 2008-09 (FY09), according to the projection.

“However, we expect to see a moderation in export growth, to 9.0 per cent in FY 10 vs. (versus) an estimated 9.5 per cent in FY09,” the Citigroup said in a report released Monday from Mumbai, India.

The Citigroup also said factoring in import growth at 5.5 per cent and healthy growth in remittances would result in the current account surplus coming in around 2.5 per cent of GDP in FY10 against an estimated 1.6per cent in FY09, according to the report.

“The taka is likely to assume a depreciating trend, to Tk 72.3 per US$ by the end of FY10 from the present level at Tk 69.1,” it noted.

The Citigroup also sees that the country’s overall economy will grow at a rate of 5.7 per cent in FY10 from 5.9 per cent in FY09.

Finance Minister AMA Muhith in his budget speech, delivered on June 11 this year in national parliament, projected the growth between 5.5 and 6.0 per cent in FY10.

“Despite natural disasters, political uncertainty and rising prices, Bangladesh has demonstrated tremendous resilience in past years,” it observed.

The Citigroup expects these trends to continue going forward. “Our estimate factor in an uptrend in industry on the back of the government’s efforts towards infrastructure development as well as healthy trends in services as trade activity sees some improvement,” the report said.

On the expenditure side, public sector investment coupled with healthy trends in consumption will help sustain growth, it added.

The Citigroup said inflation has decelerated from double-digit levels in September 2008 to 5.0 per cent levels currently. Other monetary aggregates – trends in private sector credit growth and broad money growth – are also healthy but remain below the central bank’s projected targets, it noted.

Projected targets the fiscal deficit is at 5.0 per cent of GDP in FY10 from 4.0 per cent in FY09. This is based on realistic assumptions with GDP growth at 5.5 per cent, a 21 per cent increase in expenditure and a 14.9 per cent in revenue.

On the expenditure front, the Citigroup thinks the focus on infrastructure development, which involved 28 per cent of total expenditure, expanded fiscal stimulus package, which is 1.2 per cent of GDP and introduction of new Public Private Partnership (PPP) budget are positive and will help support growth through a thrust on investment.

“However, implement targets may require concerted effort and political will,” it noted.

Report predicts devaluation of taka by next June

http://www.newagebd.com/2009/sep/16/busi.html#5

Report predicts devaluation of taka by next June
Bangladesh Sangbad Sangstha . Dhaka

A recent report on Bangladesh economy predicts depreciation of taka against US dollar by next June.

‘The taka is likely to assume a depreciating trend to Tk 72.3 per dollar by the end of 2009-10 financial year from Tk 69.1 per dollar level currently,’ the first ever South Asia report, prepared by Citi Investment Research and Analysis, a division of Citigroup Global Markets Inc, said.

The report, released Monday, however, forecasts that the country can maintain a 5.7 per cent growth in 2009-10 financial year with a comfortable level of inflation, moderate exports and marginal increase in fiscal deficit.

The report, in regional comparison with India, Sri Lanka and Pakistan, said Bangladesh demonstrated tremendous resilience in past years. ‘We expect these trends to continue going forward,’ it said.

It is also upbeat about the government’s efforts towards infrastructure development and the upward trend in industry and services. It expects the uptrend in industry will continue with some improvement in trade activities.

It sees inflation has decelerated from double-digit level in September 2008 to 5 per cent this year and the growth in the private sector credit and broad money are healthy.

The report suggests close monitoring of inflation when food prices should be the key to watch.

The report observes the fiscal deficit, projected at 5 per cent of GDP, is based on realistic assumptions with a 21 per cent increase in expenditure and a 14.9 per cent rise in revenues.

According to the report, the country’s export will be able to avoid the global recession fallout with maintaining a moderate growth of 9 per cent during the current fiscal year compared to 10.3 per cent growth in the 2008-09 financial year.

New initiative for expansion of solar energy

http://www.theindependent-bd.com/details.php?nid=142365

New initiative for expansion of solar energy
BSS, DHAKA

The International Labour Organisation (ILO) will provide Bangladesh with technical supports for expansion of renewable and clean energy as part of its initiative on creating green jobs worldwide. In this regard, according to the ILO sources here yesterday,

Bureau of Manpower Employment and Training (BMET), country’s lone manpower training agency, and Grameen Shakti, a subsidiary of Grameen Bank, working for expanding renewable energy are expected to sign a Memorandum of Understanding (MoU) today.

Under the MoU, skill development training will be imparted to solar energy technicians of the state-run technical training centres allover the country. The ILO will support the training.

The MoU is seen as a good example of public private partnership between the two agencies for promotion of renewable energy in Bangladesh, the sources said.

Grameen Shakti has so far installed more than 225,000 Solar Home systems (SHs) connecting 12 to 15 thousand new solar SHs every month in cooperation with other 15 organisations.

This has created good demand for new skills and opened up new avenue for creating a huge umber of green jobs for Bangladesh where the green job initiative was launched last year.

IBBL opens 201st branch in Ctg

http://www.thefinancialexpress-bd.com/2009/09/16/79134.html

IBBL opens 201st branch in Ctg

Islami Bank Bangladesh Limited (IBBL) is the first interest-free bank of the country and it has achieved enormous success in deposit, investment and profit taking welfare-oriented activities to continue this progress.

IBBL Managing Director M Fariduddin Ahmad made the comment while inaugurating the 201st branch of the bank at MM Tower on OR Nizam Road in Chittagong Sunday, said a press release.

President of Bangladesh Medical Association in Chittagong Dr Golam Mortuza was present as the special guest while Head of Chittagong Zone and Executive Vice President of IBBL Abul Hossain presided over the function.

Speaking on the occasion, Mr Fariduddin said the IBBL was established to set up Islamic economics in the country, free from bad effect of usury. Many other banks had started Islamic banking activities following IBBL. This was undoubtedly IBBL’s success, he said.

IBBL Assistant Vice-President and Branch Manager ASM Rezaul Karim, Managing Director of Meridian Group ASM Kamal Pasha, Managing Director of Hera Holdings Neazer Rahman, Adviser of Chittagong Stock Exchange Abu Bakar Siddique and Editor and Publisher of Dainik Karnaphuli Afsar Uddin Chowdhury also spoke on the occasion.

On the occasion, a seminar on ‘Islamic Economics and Banking’ was organised by OR Nizam Road branch of IBBL on the branch premises.

Japanese cos keen to invest Tk 500 cr in knitwear sector

http://www.theindependent-bd.com/details.php?nid=142219

Japanese cos keen to invest Tk 500 cr in knitwear sector
STAFF REPORTER

Two prominent Japanese companies have expressed their interest to invest Tk. 500 crore in knitwear sector of Bangladesh. They have already completed their initial survey. Some investors from Hong Kong will also visit Bangladesh very soon to assess the business potentiality.

Besides these, the representatives of these two countries are going to participate in Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)’s upcoming “Knit Exposition 09″ at Dhaka Sheraton Hotel November 2-4, 2009.

Japan and Hong Kong’s top importers have also showed interest in importing huge amount of knitwear from Bangladesh, during the tour of 20 BKMEA members under the leadership of BKMEA president Fazlul Huq, says a press release.

During the tour, the representatives held eight different meetings with teams of Hong Kong’s textile organisations, Japan textile importers association and Japan Apparel Industries Council and local businessmen.

Importers of Japan and Hong Kong addressed their interest in importing huge amount of knitwear from Bangladesh. BKMEA expects that 30 representatives from Japan and 25 representatives from Hong Kong including investors and journalists will participate in “Knit Exposition 09.”

Bangladeshi knit products’ import position has advanced from 18th to 8th in the last few months although the import amount is not so remarkable. This is to mention that BKMEA’s team of 20 members visited Japan and Hong Kong.

BKMEA president Fazlul Huq said, “Importers and Investors from Japan and Hong Kong have showed their huge interest in Bangladesh.

The buyers from Japan and Hong Kong have ensured in advance their presence in the forthcoming expo. The market of these two countries will play an important role in achieving Bangladesh’s gowth in the background of world economic meltdown.”

Among the two interested Japanese investors, one is a spinning factory for wool and woolen thread used for sweater production and the main socks producer and seller in Japanese market.

The BKMEA representatives will travel to South Africa and Botswana in the first week of October in order to expand new market in ahead of “Knit Expo’09.”

Beximco Pharma donates Oseflu capsules for Swine Flu treatment

http://www.theindependent-bd.com/details.php?nid=142218

Beximco Pharma donates Oseflu capsules for Swine Flu treatment

Economic Reporter

Leading drug manufacturer Beximco Pharmaceuticals Ltd. (BPL) on September 13 donated 5000 pieces of Oseflu (Oseltamivir) capsule to ICDDR,B as a gesture of BPL’s support for the swine flu affected community of the country.

This donation was a part of BPL’s ongoing CSR activities as a response to this major public health problem.

Beximco Pharma is the pioneer in introducing Oseltamivir preparation is Bangladesh. Back in March 22, 2006, Beximco Pharma introduced Oseflu capsule for the prevention and treatment of human cases of Avian Influenza (H5N1).

Besides its use in Bangladesh, Beximco Pharma also supplied Oseflu in ASEAN countries, Central America and Latin America for the treatment of Swine flu affected people.

Beximco Pharma has also started a public awareness programme against swine flu which comprises public awareness posters, inserts, patient information guide, sticker and advertisement in the newspaper.

Regarding the donation of the drug, the Beximco Pharma’s Managing Director, Nazmul Hassan, MP, said, “Beximco Pharma always likes to work together with reputed organizations like ICDDR,B in public health related issues.

Bangladesh is under great threat of facing consequences of Swine Flu and it’s everyone’s combined effort that can create a strong resistance against this deadly disease in Bangladesh.”

Dr. Mark Pietroni, Medical Director of ICDDR,B also spoke on the occasion of handing over the medicine and said, “We welcome this nice gesture of Beximco Pharma that would be of great help for patients coming to us for the treatment of Swine Flu”.

As a part of its public awareness programme, the company has also opened a ’24 hour Swine flu Hotline (01711-438-139)’ for all to provide information on Swine Flu and its management.

French firms keen on agro-food industry

http://www.thedailystar.net/newDesign/news-details.php?nid=105868

French firms keen on agro-food industry
Star Business Report

French technology providers have shown interest in the rapidly growing agro-based industries in Bangladesh.

“We are ready to provide French technologies and expertise to agro-food industry here,” said Timothee Mougeotte, area manager (Near & Middle East & South Asia) of Adepta, at a roundtable at Lake Shore Hotel in Dhaka yesterday.

Adepta is a French association for the Development of Trade of Agri-foods Products & Technologies.

The Economic and Trade Department of French embassy, Ubifranch (the French Agency for International Business Development), France Bangladesh Chamber of Commerce & Industry and Adepta organised the discussion.

Representatives of Bangladesh Agro-Processors Association and different local agro-food manufacturers were present at the programme.

Participants in the discussion said agro-based industry is growing fast in Bangladesh with an aim to tap both the domestic and global markets.

Processed food exports from Bangladesh increased almost fivefold to $46.68 million in fiscal 2008-09 from $10.46 million in fiscal 2005-06, luring new investment in the industry.

Presently local agro-based companies are mainly producing processed foods, spices and dairy products.

At the roundtable, two French companies — Ets Charriau and Sodime — presented their technologies with focus on optimising milk collection and agro-food manufacturing solutions.

All unions to be under internet network by 2012

http://www.thefinancialexpress-bd.com/2009/09/15/79053.html

All unions to be under internet network by 2012
UP bill tabled giving govt huge control

All Union Parishads (UPs), the country’s lowest tire of administration, will be brought under online networking system and connected to information super highway by the year 2012 as the Local Government Division will set up Union Information Service (UIS) centres at all unions.

Local Government Division (LGD) Secretary Monzur Hossain Monday told BSS that the government has decided to set up UIS at all 4,498 unions with computers and internet connections for realising the vision of building digital Bangladesh.

Under the project, 100 UIS will be set by end of this year, 2,000 by 2010, 3,000 by 2011 and rest of within 2012, the LGD secretary said.

The site selections for first 100 centres have already been completed and 31 centres have started the activities under the project on trial basis, he said.

The project formally to be launched in the next month will be a landmark in efforts to digitise the country’s governance system from the grassroots to highest levels, the secretary said.

The LGD would appoint two computer service providers, one male and one woman from local youth for the centre, which will also serve the government’s commitment of creating employment.

Before appointing, the computer service operators will be provided information technology (IT) training as they could easily browse the internet as per the requirement of the rural people.

Farmers and rural entrepreneurs can collect various information of farming and prices of essentials through this UIS with minimal service charge.

The UIS is expected to change the scenario of rural Bangladesh as it will definitely create momentum in the rural economy through ensuring both way flow of information at grassroots level, Monzur said.

National Institute of Local Government (NILG) Director Prasanta Kumar Roy said, the UIS would be built by the own fund of the UPs, allocated from the Local Government Support (LGS) Project.

Meanwhile, bdnews24.com adds: Parliament saw the Local Government (Union Parishad) Bill 2009 tabled Monday that proposes handing the central government much control over the lowest tier of local government.

The House also passed the Local Government (Pourashova) Act 2009, which empowers local MPs to be advisers to the pourashova or municipalities, but MPs’ suggestions will not be mandatory for the local government bodies to follow.

Damming a river

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Damming a river

Dams harm rivers. Photo: R S C Anjan/ Drik News

Dams harm rivers. Photo: R S C Anjan/ Drik News

Zulfiquer Ahmed Amin

THE Farakka Barrage, when commissioned in 1970, seemed to be a venture by India for saving the Kolkata port from silting up. In next few decades, the outcome in the lower riparian Bangladesh was disastrous due to the dearth of water in the entire south-western region. The country also experienced continuous losses in the agricultural, fisheries, forestry, industry, navigation and other sectors. It also caused fatal damages over the years through floods, droughts, excessive salinity and depletion of groundwater.

The project also resulted in massive devastation in Malda on its upstream, Murshidabad in West Bengal and south-west of Bangladesh on its downstream. Excessive sedimentation, increasing flood intensity, and river erosion are some of its effects.

Bangladesh is facing desertification along the normal course of the Padma river, with no water in the water-body, and the mighty river has become the reason for continuous floods and bank erosion.

Farakka, thus, was a major breach of trust by India against Bangladesh as India had repeatedly claimed before it started the project that the dam would not cause any damage to Bangladesh. The same assurances are being given about the Tipaimukh dam.

Land and water are ecologically linked in a natural system called a watershed. Any river is the product of the land it inhabits — the type of rock and soil, the shape of the land, and the amount of vegetation are some of the factors that determine the river’s shape, size and flow. When these ties between the land and the river are breached by a large dam, the consequences are felt throughout the watershed, as well as by the web of life it supports.

The main hydraulic effect of a dam is the discharge of the collection basin to a stationary reservoir instead of a stream-bed. Therefore, an instant change will start downstream, which dries partially or totally whenever the reservoir begins to accumulate water. During this temporary or periodically repeating time interval, the hydrological balance can collapse, and structural damages are observed in the water dependent ecosystem.

Dams have a significant impact on the disruption of natural sediment movement processes in rivers, which is blocked by the dam. Sediment builds up in the reservoir behind the dam, while creating sediment starved conditions below the dam, which lead to channel bed degradation, channel narrowing and bank erosion. It is natural that the river, which is accustomed to carrying sediment and now has none, will pick up the sediment from the streambed below the dam.

Dams are engineered to withstand the force of a certain number of tons of water –however large the reservoir is planned to be. When the pressure builds up the dam bursts, killing people and destroying settlements downstream. This disruption of sediment movement often disconnects a river from its natural floodplain downstream or submerges riverine floodplains upstream of a dam. In some cases this leads to river systems that are no longer naturally sustainable.

Dams hinder growth, development and maturation of fishes. They hold back not only sediment but also debris, which includes leaves, twigs, branches, and whole trees, as well as the remains of dead animals. The lives of organisms, including fish in downstream, depend on the constant feeding of the river with debris.

Many fish must move upstream and downstream to complete their lifecycles. Dams act as a barrier in this migration. The cold, clear water of downstream will be starved of nutrients and provide little or no habitat for animals. A river with a dam eventually becomes little more than a dead channel of water.

About 7 to 8 percent of the water in Bangladesh is obtained through the river Barak to Surma-Kushiara river basins. Agriculture, irrigation, navigation, drinking water supply, fisheries, wildlife in numerous haors (wetlands) and low lying areas in entire Sylhet division, some areas of Comilla and Mymensingh districts, and some peripheral areas of Dhaka division depend on this water.

The river system also supports local industries like fertilizer, electricity, gas etc. Around five crore people of Sylhet and Dhaka division will face problems as Surma and Kushiara will lose five feetof water in the rainy season. Massive environmental degradation will take place, severely affecting weather and climate, turning a wet, cool environment into a hot, uncomfortable cauldron.

Haors around Surma-Kushiara river located in Sunamganj, Habiganj and Moulvibazar districts and Sylhet Sadar Upazila, as well as Kishoreganj and Netrokona districts, receive surface runoff water from rivers and channels in the rainy season and serve as the granaries and fisheries of the northeast. During dry season the water drains out, leaving an alluvial-rich soil suitable for cultivation of boro. The rice farmers plant when the water recedes in the winter, and harvest before the monsoon waters come.

The water carries not only fish larvae but also much-needed nutrients into the haor, which turns into a vast nursery for fish. When the water recedes in the winter, the nourished fish move out into the rivers and are caught by the fishermen. The total area of this wetland covers nearly 25,000 square kilometres and supports approximately 20 million people.

They literally live by the ebb and flow of the waters. Any artificial alteration of this haor could affect food security and bring disaster to the region.

The north-east region of India is one of the six major seismically active zones of the world, which includes California, Japan, Mexico, Taiwan and Turkey. The Tipaimukh site is located in Zone-V of the Seismic Zoning Map of India. As per available records, about 16 earthquakes of magnitude greater than 7.0 have occurred in this region, of which 2 had a magnitude more than 8.5. An earthquake of significant scale will destroy the dam, with unimaginable damage to life and property.

While Bangladesh is concerned over the dam on the Barak river, India, too, is busy raising concerns about China’s plan to build a dam on the Yarlung Tsangpo (Brahmaputra) in Tibet to generate 40,000 Megawatt power, and to divert 200 billion cubic meters of waters to the Yellow River for easing water shortages in Shaanxi, Beijing and Tianjin in northern China.

India’s proposed Tipaimukh dam and China’s proposed dam over Yarlung Tsangpo bear much similarity in terms of scale of destruction, threats and challenges both in the upstream and the downstream portion of the rivers. India is playing a double game. While objecting against China’s plan to dam Yarlung Tsangpo, India is aggressively pursuing mega-dams construction spree in India’s north-east, notwithstanding concerns in the north-east and Bangladesh.

Against the backdrop of its nonviable cost-effectiveness, immense economic and environmental damage coupled with utter human sufferings, when worldwide decommissioning of dams has over-taken commissioning, India’s insistence may cause deterioration of Indo-Bangla relations.

Dr. Zulfiquer Ahmed Amin is a physician and specialist in Public health Administration and Health Economics, and is presently working in Kuwait.

Square Pharma’s export rises 59 per cent

http://www.thefinancialexpress-bd.com/2009/09/14/78952.html

Square Pharma’s export rises 59 per cent

FE Report

The country’s largest drug manufacturer Square Pharmaceuticals Ltd. has registered a whopping 58.28 per cent rise in its export in the year ended March 31,2009.

“Our exports amounted to Tk 336.34 million during the year as against Tk 212.50 million in the corresponding period of 2008,” according to the company’s latest annual report.

Of the total export value, Tk 331.84 million came from pharmaceutical products while Tk 4.49 million was fetched by agrovet products

The report said the exports are expected to rise in the coming years.

The company’s present export market covers Myanmar, Nepal, Kenya, Libya, Mauritius, Papua New Guinea, Somalia, Sri Lanka, Vietnam, Yemen, Ukraine, Bhutan, Cambodia, Mozambique, Afganistan, Tanzania, Costa Rica, North Korea, Belize, Hong Kong, Mouritania and Philippines.

“As the company has secured licence under UK MHRA, it is expected that the export potential will increase substantially in the near future,” the report added.

At the same time, the conglomerate’s gross turnover, net turnover, gross profit and net profit after tax showed 18.51 per cent, 18.93 per cent, 21.94 per cent and 36.78 per cent rises respectively against the previous year.

The company’s gross turnover, net turnover, gross profit and net profit after tax rose to Tk 11.33 billion, Tk 9.82 billion, Tk 4.14 billion and Tk 1.89 billion respectively.

The company’s number of shareholders grew 49.13 per cent in 2008-09 against 2007-08.

There were 47,258 shareholders in the year ended March 31,2009.

The company in its last annual general meeting on September 7 last approved cash dividend at 40 per cent and stock dividend at 25 per cent for the shareholders.

During the year 2008-2009, Square Pharma has contributed Tk 2.31 billion to the national exchequer as against Tk. 1.87 billion during the previous year. “The contribution constitutes 23.62 percent of the sales revenue in as against 22.67 percent in the previous year,” the report said.

Established in 1958 and converted into a public limited company in 1991, Square Pharmaceuticals Ltd. has turned itself into a leading figure in the pharmaceutical industry of Bangladesh over the last few decades and now aims to grow into a high performance global player.

The company went public in 1994 and got listed in 1995 on Dhaka Stock Exchange (DSE).

With a paid-up capital of Tk 1.20 billion, Square Pharma has four each subsidiary and associate companies.

The subsidiary companies are Square Spinnings Ltd, Square Cephalosporins Ltd, Square Biotechs Ltd and Square Multi Fabrics Ltd. On the other hand, the associate companies are Square Textiles Ltd, Square Knit Fabrics Ltd, Square Fashions Ltd and Square Hospitals Ltd.

Tk 1,800cr stimulus to prop up exports

http://www.thedailystar.net/newDesign/news-details.php?nid=105693

Tk 1,800cr stimulus to prop up exports
Rejaul Karim Byron

The export sector will be awarded Tk 1,800 crore from the government’s Tk 5,000 crore stimulus package this year to weather out global recession.

The sector got Tk 1500 crore last fiscal. At first, the allocation was Tk 1,050 crore.

The finance ministry has already instructed different banks to settle the subsidies the government is providing for the sector as per its incentive policy adopted in the last financial year.

Earlier, 13 sectors were subsidised. Recession-hit three sectors received an additional 2.5 percent subsidy last year. More or less the same policy will be continued this time.

Some more sectors are being subsidised where plastic PET bottle flex and finished leather are the latest two entrants. Those sectors will get 10 percent and 7.5 percent subsidy respectively.

The 13 sectors that were brought under the package include textile sector, frozen fish, leather goods, agricultural products, bicycles, jute goods, 100 percent Halal meat, bone dust and light engineering items.

The stimulus package, in line with the financial crisis worldwide and Bangladesh’s export volume, will come under review in the next meeting of the taskforce headed by the finance minister.

The Tk 5000 crore package, as announced in the 2009-10 budget, did not show any break-up of the amounts to be awarded to recession-hit sectors.

When Tk 1800crore has been earmarked for the export sector, the remaining amount will go to the fertiliser sector.

A source in the ministry concerned hinted at raising the stimulus for exporters to Tk2,000 crore by the end of the fiscal year.

However, economists say, instead of wholesale subsidies y it can be provided on case-to-case basis for the non-garments sector.

Akbar Ali Khan, former finance adviser to the caretaker government, said in the post-recession time, a competitiveness will be created in the world economy, so subsidising some sectors is necessary.

Bangladesh Institute of Development Studies (BIDS) Research Director Dr Zaid Bakht is also opposed to any wholesale subsidy.

He feared a difficult situation for the non-garments sector and pleaded that this sector should be subsidised to weather out recession.