Stimulus-plus of Tk 2,000cr soon

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Stimulus-plus of Tk 2,000cr soon
Ship building, frozen food, apparel sectors to get the recession package
Rejaul Karim Byron

The government is likely to announce an additional recession package of Tk 2,000 crore within this month to promote different sectors suffering from the global meltdown.

Finance ministry sources say they are considering allocating the money to the new areas like product diversification, ship building, frozen food and apparel sector.

A committee, recently formed by the government and headed by former finance minister M Syeduzzaman, already submitted its report on the issue to the finance ministry.

The finance ministry is now finalising the stimulus package on the basis of the report.

Subsidy under the new recession package might be given to the readymade garment exporters and their backward integration only for new export destinations as per the recommendation of the committee, finance ministry sources said.

The committee recommended giving five percent cash incentive to the readymade garments including knitwear and woven garments for the next five years.

According to the committee, all the export destinations except EU, the US and Canada will be considered as new markets.

The ministry is also considering forming a fund for product diversification and small and medium apparels sector affected by the global recession.

In the last fiscal year, the government had allocated additional 2.5 percent subsidy to jute, leather and frozen shrimp sectors to tackle the fallout from global recession, but no subsidy had been given to the readymade garment sector.

But, exports in the readymade garment sector have decreased by 20 percent in the first three months of the current fiscal year and that is why the government is considering giving incentive to this sector.

The shipbuilding, evolving as a potential export-earning sector in the country, may get 7.5 to 10 percent export subsidy.

Besides, the government is considering to give banking facilities to help export sector overcome the pinch of global economic downturn.

The finance ministry, however, decided to increase the term of loan rescheduling by three months for the export oriented industries including frozen food, leather and leather goods, jute and jute goods, apparel (spinning) and RMG sectors without any down payment.

The term for loan rescheduling without any down payment fixed till September earlier may now be extended to December, sources said.

Finance ministry sources said a total of Tk 5,046 crore was allocated for giving subsidy and incentives in this year’s budget and Tk 3,046 crore was fixed for those sectors, which are already getting the export subsidy.

The ministry has already released Tk 1,311 crore out of Tk 3,046 crore for the sectors, sources added.

1000 MW Russian nuke unit planned

http://nation.ittefaq.com/issues/2009/11/17/news0773.htm

1000 MW Russian nuke unit planned

Staff Reporter

Russia will build a complete 1000 megawatts nuclear power plant in Ruppur charging a minimum cost from Bangladesh .

The government informed it at a meeting of the parliamentary standing committee on Science and Information Technology yesterday.

Bangladesh and Russia on May this year signed a memorandum of understanding on peaceful use of nuclear energy, for construction of civilian nuclear power plant having a capacity of 600 megawatts at Ruppur in Pabna.

“In a gesture of goodwill and as a mark of Russia’s contribution in establishing independent Bangladesh in 1971, the country has offered us to build the power plant,” Alhaj Dabirul Islam MP, president of the parliamentary body told the New Nation yesterday.

The meeting discussed in detail the nuclear power project, nuclear medicine institute building construction and modernization project, ADB-financed projects, providing fellowship and donation to research activities by the ministry and activities of the Nuclear Safety and Radiation Control Department.

The Parliamentary watchdog body suggested the concerned authorities, including the Education Ministry, to take necessary steps for distributing computers to all educational institutions of the country in phases to build Digital Bangladesh.

While discussing the progress of implementation of the Ruppur Nuclear Power Project, the meeting was also informed that a memorandum of understanding has been signed recently between ROSATOM of Russia and BAEC of Bangladesh for providing assistance in peaceful use of nuclear power.

Besides, progress on setting up complete computer labs in 128 educational institutions of the country and connecting online board to the tables of lawmakers in parliament was discussed at the meeting.

Committee members Tanvir Shakil Joy, Nasimul Alam Chowdhury, Junaid Ahmed Palak, Mohammad Shahid Uddin Chowdhury Anny, Shawkat Ara Begum and Salma Islam attended the meeting.

2000 tonnes jute seeds yield planned

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2000 tonnes jute seeds yield planned
Bss, Dhaka

The government is planning to produce 2000 tonnes of quality jute seeds from the next year to largely meet the present 4000 tonnes of market demand.

The Integrated HYV Jute and Jute Production Programme under the Ministry of Jute and Textile has already sent a project proposal to the Ministry of Finance and Planning for fund allocation in this regard, Project Director M Abdul Khaleque told the news agency yesterday.

Presently, Bangladesh Agriculture Development Corporation (BADC) is supplying 1000 to 1200 tonnes of seeds to market, while the rest of the demand is met by importing substandard seeds from the neighbouring country, he said.

“The high yield of jute largely depends on quality seeds,” he said, adding “this is the time to look for increasing jute production as the prices of raw jute and diversified jute products are experiencing an upswing the international market,” he said.

Under the new initiative, the ministry intends to produce 2000 tonnes of quality seeds each year for the next five years, starting from next fiscal 2010-11, he said.

For the current fiscal, the project has involved 100 farmers at 100 upazilas across the country to produce 400 tonnes of quality seeds.

“We are planning to select more farmers in more upazilas to produce 2000 tonnes of seeds per year from the next fiscal,” he said.

After the production, the growers would sell the seeds to other farmers in their respective areas. “If we could successfully implement the project, the country can be self-sufficient with quality jute seeds,” he said.

Concerned officials of BADC said Bangladesh has the potentiality to turn itself into a jute seed exporting country from an importer.

Former executive director of Jute Diversification Promotion Centre Dr ABM Abdullah said it’s a very positive step taken by the textiles and jute ministry for fulfilling the demands of quality jute seeds locally.

“Along with the quality seeds, proper water management for retting the jute needs to be ensured as the farmers could produce quality jute and get fair prices of their products,” he said.

Deep-sea port: Foundation laying in Dec 2010

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Deep-sea port: Foundation laying in Dec 2010

Staff Reporter

The foundation stone of the much-talked-about Sonadia deep-sea port will be laid in December 2010. The decision came at a meeting at the Shipping Ministry yesterday.

The meeting decided to form an eight-member committee in this regard.

Commodore Reazuddin Ahmed, Chairman of the Chittagong Port Authority (CPA) will head the committee while AKM Saifullah, former director general of department of Shipping will be member secretary of the committee.

Shipping Minister Shajahan Khan presided over the meeting. Abdul Mannan Hawlader, acting secretary of the Shipping Ministry and high officials of the concerned departments were present.

The committee would submit design and develop a project profile of the seaport, and suggest appointment of consultant by December 31 of the current year.

The construction work of the deep-sea port will be accomplished in three phases.

The first phase construction work of the deep-sea port at Maheskahli upazila in Cox’s Bazar would cost approximately Tk 15 thousand crore. The work is expected to be completed by 2016.

Local fingerprints on world stage

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Local fingerprints on world stage

Ziaur Rahman

Md Hasan

It may be hard to believe fingerprints, a traditional substitute for signatures, could craft business worth millions of dollars.

TigerIT BD.com, a local IT company, is bagging work worth millions from the global market by selling its Automated Fingerprint Identification System (AFIS), an identity solution. It is a process of automatically matching one or more fingerprints against a database of known or unknown prints.

Local companies may also adopt the innovation after knowing the US Federal Bureau of Investigation intends to work with TigerIT for the ID solution.

Local software makers are neglected in regards to obtaining deals from the government and private entities for providing technology solutions. However, confidence rose after TigerIT successfully provided voter IDs for 80 million people with the help of the Bangladesh Army in 2007-08.

TigerIT provided software solutions to build the national database.

“Our success could be a positive example for local software makers who fail to convince local policymarkers,” said Ziaur Rahman, chairman and chief executive officer of TigerIT, in a recent interview with The Daily Star.

Local IT firms fail to tap international markets due to a lack of recognition, he said. “There is no other alternative to having local reference in getting work abroad.”

He said the size of Bangladesh’s IT (information technology) market will grow rapidly as the government announced a target to create a ‘Digital Bangladesh’ by 2021.

In Bangladesh, more than 300 firms are developing IT-based solutions, but most failed to compete in the local market despite performing smoothly in global markets.

Several local IT firms are providing IT solutions to multinationals across the globe. But the sector could strengthen in Bangladesh if the government patronises local IT firms, as in India, Rahman said.

He said local firms in India get priority over foreign companies. “We should change our traditional mindset that foreign solutions are always better than the local ones,” he said, adding that Bangladesh should go for foreign technology solutions that are not available here.

TigerIT is software maker specialising in ID and fingerprint-based solutions. The company’s AFIS fingerprint matching solution ranked number one in the Minutiae Interoperability Exchange (MINEX) test by the US based NIST (National Institute of Standards and Technology).

The TigerID AFIS is a set of services that can reside on a single server, or be distributed across an array of servers, depending on the anticipated transaction volume.

With the close of a successful chapter in making voter IDs in Bangladesh, TigerIT ID solutions are now being used in the US, EU and African countries.

TigerIT also engaged in providing ID solutions to Indonesia, Nepal, Thailand, Sri Lanka, Africa, Canada, Columbia and some other parts of South America.

“Our software solution is being used by 22 states in the US under a government e-commerce project,” Rahman said.

TigerIT has developed an application by which the US government collects online reports from homes for disabled citizens on utilisation of government funds.

More than 100 Pizza Hut outlets in the US are also providing sales services by using TigerIT’s solution, said the company chief.

Besides, TigerIT also developed a cell phone browser, which has become popular in the US, Rahman said. It is now in talks to sell the cell phone browser to the EU.

“The Nigerian Army also selected us for their ID project,” said Rahman.

In regards to recognition from the US, Rahman said, “We are now the number one in fingerprint matching solutions. We see this success as a step towards being a global player.”

He said the FBI has also expressed interest to work with TigerIT after receiving the recognition.

TigerIT has recently submitted a bid for the machine-readable passport (MRP) project in Nepal.

“We want to become a global leader in ID solutions,” said Rahman. However, he said like other local IT firms, he also faces hurdles in exporting solutions to the global market.

Bangladesh produces more than 2,000 programmers a year. “We are even more advanced than India in making IT solutions, especially high-end products,” he said.

On company revenue, Rahman said: “We are doing business worth millions of dollars.”

hasan@thedailystar.net

Sea Resources signs joint venture with Cosmos Trawl

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Sea Resources signs joint venture with Cosmos Trawl

A Rouf Chowdhury (left), managing director of Sea Resources Ltd, and Einar Hebogård Jensen (middle), ambassador of Denmark, exchange documents after signing a tripartite deal in Dhaka yesterday. Sea Resources and Danish fishing gear company Cosmos Trawl will set up a joint venture company supported by Danida. Amanullah Chowdhury (background, second from left), joint managing director of Sea Resources, and Georg Jensen (second from right), managing director, and Lars Jensen (extreme right), deputy director of Cosmos, are also seen. Photo: Sea Resources

Star Business Desk

Sea Resources Ltd and Danish fishing gear company Cosmos Trawl A/S have signed an agreement to set up a netloft joint venture company. The deal marks the third phase of a business-to-business project, supported by Danida.

After one-year trial partnership, the two companies will step into the joint venture, named SRL-Cosmos Trawl Ltd, according to a joint statement released yesterday.

The new company will be based at Ichhanagar/Sardarghat in Chittagong, headed by Lars Jensen of Cosmos as managing director.

A Rouf Chowdhury will be the chairman of the joint venture.

Eirikur H Sigurgeirsson, Cosmos chief technical adviser, who will be stationed in Chittagong from January 2010, will look after day-to-day affairs.

Under the deal, the construction of a new 1,500sqm netloft will start soon. “Meantime, activities will continue from Sea Resources’ current operation alongside Fishers Shipyard,” the statement said.

The products will range from traditional fishing gear to modern and more efficient alternatives such as Cosmos semi-pelagic trawls, high-opening bottom trawls, wide-bodied and multi-rig bottom shrimp trawls and larger mid-water trawls and multi-purpose purse seines.

The joint venture will make import substitutes and open a one-stop shop where all equipment and accessories for modern fishing will be available.

“The new netloft will be state-of-the-art, with all kinds of helping equipment, to improve working conditions and efficiency,” the statement said.

“In addition, all employees will undergo training by Cosmos CTA in modern fishing gear technology, supported by a two-year net maker course developed by the International School of Commercial Fishing Gear Technology in Iceland.”

This will replace fishing method with modern technology transfer.

A general consultancy service for fishing operation will also be offered to all operators, the statement added. Cosmos Trawl is part of the international Hampidjan Group.

“Once the new netloft is fully operational, the joint venture will expand production and service towards regional fishing nations to secure a new stronghold in Asia,” the statement said.

Cosmos Trawl is recognised as Denmark’s largest and oldest net maker company, with large production facilities in both Hirtshals and Skagen, according to the company’s website.

Products by Cosmos Trawl are sold mainly in Scandinavia and the North Atlantic, but the company has clients in Asia, South America and the Far East of Russia.

Dhaka, Hanoi to boost business

http://www.newagebd.com/2009/nov/16/busi.html#2

Dhaka, Hanoi to boost business
Staff Correspondent

Vietnamese vice-minister for trade and industry said potential of trade and investment between Bangladesh and his country remained unexplored mainly due to lack of business to business communications.

Le Doung Quang, the vice-minister, made the comment when he led a Vietnamese business delegation to the Federation of Bangladesh Chambers of Commerce and Industry on Sunday.

Vietnamese ambassador in Dhaka Nguyan Van That also addressed the meeting, presided over by FBBCI president Annisul Huq.

Bangladesh can import more commodities like rice and spices from Vietnam while the Bangladeshi and Vietnamese entrepreneurs can make partnerships in leather, fishing and jute sectors, said Doung Quang.

The Vietnamese business representatives showed their interest in making partnerships in steel industries, food processing, agricultures and shipping sectors.

Le Thi Hoang Oanh, director of a Hanoi based freight forwarding company, said her company got huge business response after appointing an agent in Dhaka.

Le, whose company started with electrical equipments, said many products could be traded between the two countries if business communication was developed.

Annisul Huq invited the Vietnamese entrepreneurs to explore Bangladesh’s very liberal policies regarding foreign direct investments.

He cited light engineering, livestock, rubber based industries and infrastructures projects as the potential sectors for investments.

Vietnam total import was $81 billion from global market when it exported $63 billion in 2008. But the trade between Bangladesh and Vietnam was only $65 million in the period.

Bangladesh exports to Vietnam include garment and shoe accessories, tobacco, iron, raw jute, pharmaceuticals, plastic materials, electric cable, fertiliser, steel, yarn, rice and machineries.

Referring to the agreement between Bangladesh and Vietnam on textile and direct LC settlement, the vice-minister said the two countries had not yet reap the benefit of the deal.

More income tax returns this year

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More income tax returns this year
Star Business Report

The National Board of Revenue realised Tk 859.93 crore this fiscal as income tax through tax returns from individuals, registering a 36.28 percent rise over the last fiscal year.

In FY 2008-09, such income tax collection was Tk 623.67 crore.

The disclosure came at a press conference at the tax authority’s office yesterday by NBR Member Aminur Rahman. He said such a growth in individual income tax manifests taxpayers’ increased trust in the service-orientation of tax collectors.

The deadline of submission of tax returns was November 12.

As many as 7,57,964 individuals have submitted their tax returns this fiscal, while the figure was 6,56,193 the previous year, marking a 15.51 percent growth.

At present, there are 22 lakh tax identification number (TIN) holders across the country. But, still around 14 lakh TIN-holders do not pay income tax, the data on the latest tax returns show.

The NBR top official said such non-payment of income tax by TIN-holders is almost a common feature. However, he pointed to the rise in the number of people who submitted income tax returns this year.

Aminur Rahman also spelt out an NBR plan to go for a drive against the TIN-holders who did not submit tax returns. “The defaulters will face legal action,” he sounded a note of warning.

As per rules, such defaulters will have to pay regular fine of Tk 1,000 along with Tk 50 for every day for delaying submission of their returns.

NBR statistics show 11.90 percent up in NBR’s overall tax collection during July-October. The total collection was Tk 16,630 crore in the period. Of the amount, at import level the collection increased 2.02 percent, at local level 18 percent and income tax 24.31 percent.

Farm, SME get priority in BB’s 5-year plan

http://www.newagebd.com/2009/nov/16/busi.html#1

Farm, SME get priority in BB’s 5-year plan
Staff Correspondent

Reaching out baking services to commoners across the country to give them maximum benefits of financial activities will be a key component of the Bangladesh Bank’s vision for the next five years.

The motto of ‘financial inclusion’ of the masses through increasing disbursement of farm loans and promotion of small and medium will be the core theme of the central bank’s five-year strategic plan now under preparation.

‘We want to establish a strong, dynamic and credible central bank. Apart from its traditional function, we want to serve the people in the best possible manner for giving them fruits of economic development,’ Murshid Kuli Khan, a deputy governor of Bangladesh Bank, said briefing journalists about the plan.

Food security of the people and generation of more income opportunities through jobs and self-employment would be possible if the goals to be set under the strategic plan can be attained, he told a questioner about the key objectives of the plan.

The five-year strategic plan, envisioned by the present central bank governor, Atiur Rahman, also development economist, is expected to be prepared and made public in the first half of January 2010.

The central bank organised a two-day workshop titled ‘Strategic Planning and Management Strengthening Workshop’ in Dhaka on November 13-14 and received inputs for preparation of the strategic plan.

Explaining the theme of financial inclusion, the deputy governor mentioned that the Bangladesh Bank might promote ‘one upazila, one product’ concept to encourage entrepreneurs of small and medium enterprises to take ventures based on specialisation of knowledge and skill in each locality and region.

‘Guava of southern region or mango of Rajshahi may be considered for supporting the projects. The central bank will play the role of a guardian in encouraging commercial banks to act accordingly,’ said Khan.

BTCL offers free connections

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BTCL offers free connections
Star Business Report

Bangladesh Telecommuni-cations Company Ltd (BTCL) yesterday announced that it would offer free connections to customers at some growth centres and upazilas.

Customers under these areas can link up with the state landline service within the next three months on a first-come-first-serve basis, said a statement.

Earlier, the operator charged Tk 600 per connection. BTCL will consider the areas outside district level as growth centres.

BB services to go rural

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BB services to go rural
The central bank launches upazila scheme next year to generate jobs

Star Business Report

The Bangladesh Bank (BB) will introduce next year a loan scheme styled ‘one banking product in each upazila’ across the country in an effort to generate jobs for more people.

The central bank will implement the programme under a five-year strategic plan from 2010 to 2014, BB Deputy Governor Murshid Kuli Khan said at a press briefing at the bank’s conference room yesterday.

Khan said the plan aims at taking the services of the central bank to more people apart from its traditional roles in controlling inflation and regulating banks. In line with the plan, highest emphasis will be laid on small and medium enterprises after agriculture sector.

Under the plan, different loan programmes will be launched targeting upazilas and villages so more rural people are get involved with the process of economic development.

Necessity of taking diversified programmes for different areas will surface in future and schemes will be taken accordingly, Khan said.

A workshop was organised for senior officials of the central bank at Jamuna Resort on Friday and Saturday to prepare the strategic plan, he said.

Earlier opinions were taken for the plan from the finance ministry, commerce ministry, Securities and Exchange Commission, Board of Investment, Economic Relations Division, various donor agencies and business bodies.

Khan said the plan is now at the final stage and would be launched soon.

The details of the plan will be made available through the Bangladesh Bank website.

The deputy governor said: “A vision of the future Bangladesh Bank was in our consideration while formulating the strategic plan. We want to see such a central bank where changes are visible and a continuous process.”

He said use of technology would increase to cope with the reality of globalisation. There will be scope for reaching the fruits of technology to each household. The future Bangladesh Bank will always encourage financial inclusion, he added.

Khan said: “We did not take any assistance from foreign consultants in preparing the action plan. In the plan there will be specific vision for every department of the central bank. The schemes described in the strategic plan will be evaluated every year.”

UAE to be major manpower export destination in 5 years

http://www.bssnews.net/newsDetails.php?cat=8&id=71016&date=2009-11-15

UAE to be major manpower export destination in 5 years
By Tanzim Anwar

DHAKA, Nov 15 (BSS) – The United Arab Emirates (UAE) can be a major destination for skilled and semi-skilled manpower in the next five years especially in hotel management sector as this gulf country is going to invest 1.5 trillion US dollars in hotels and travelling to turn itself into one of the prime tourism hubs in the globe.

“About 100 hotels are expected to be opened by next two years and the country needs lots of skilled people in hotel management as well as utility services,” Bangladesh Ambassador to UAE Nazmul Quaunine told this correspondent in Dubai recently.

He said the Bangladesh mission has communicated the matter to all concerned offices in Dhaka including the expatriates’ welfare and overseas employment ministry to provide training for the people, intending to be employed abroad.

“It’s a competitive world, if we couldn’t manage to send skilled and semi-skilled manpower within the time, this bulk will automatically move to other countries,” he said.

Presently, the UAE is recruiting 15,000 to 20,000 Bangladeshi workers per month amid the ongoing global economic crisis, which made the country the largest manpower destination for Bangladesh.

Qatar and Saudi Arabia are creating only 3000 to 2500 jobs per month, he added.

The UAE government made a rule in last May that all payment to the overseas workers must be made through banks as per the strong lobbing of the Bangladesh mission, he said.

“After implementing the rules, rights of seven lakh Bangladeshi labors in the UAE are ensured and presently no workers are facing harassment about salary,” he said.

Bangladesh needs to set up a special training center equipped with all modern facilities to provide Arabic and English language training targeting the intended semi-skilled manpower.

He said the local Bangladeshi mission formed a special team, which regularly visited the workplace of Bangladeshi labors to see their well being physically.

Govt is keen to remove hurdles for SME

http://www.theindependent-bd.com/details.php?nid=150125

Govt is keen to remove hurdles for SME
ECONOMIC REPORTER

SME Foundation chairperson Aftab ul Islam yesterday said that the present government is keen to remove the hurdles faced by the entrepreneurs of the small and medium  enterprises.

While discussing with a 21 member delegation headed by Ms Monowara Hakim Ali, president of the Chittagong Women Chamber of Commerce and Industry (CWCCI) at the SME Foundation office, Aftab ul Islam said,  SME Foundation will do everything possible for the empowerment of the women entrepreneurs. Managing Director of SME Foundation Dr. Momtaz Uddin Ahmed was also present on the occasion.

SME Foundation of Bangladesh would fast-track a credit-wholesaling programme to give financial support to small entrepreneurs, he told the CWCCI delegation adding that SME Foundation has been working to devise ways and means so that SMEs could have easy access to credit.

Professor Momtaz Uddin Ahmed, managing director of the foundation said that developed countries achieved their economic growth through developing their SME sector.

Among others, CWCCI leaders; Gulshan Ara, Khaleda Akhtar, Nasreen Sultana, Tanzima Ali Rupa, Manjulika Chakma, Nazma Akhtar, Jubaira Baki, kazi Tuhina Akhtar, Roslin Penheiro, Savina Ekram Shiraji, Jahan Ara Abedin, Nadira Begam, Manjulika Chakma were also present in the discussion.

IBBL opens branch at Borogola

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IBBL opens branch at Borogola
Economic Reporter

Borogola Branch of Islami Bank Bangladesh Limited (IBBL) was inaugurated at Jamil Building, Borogola, Bogra yesterday. Engr. Mustafa Anwar, vice chairman, board of directors of the bank inaugurated the branch as chief guest. Presided over by Md. Habibur Rahman, deputy managing director and head of International Banking Wing of the bank.

The programme was attended by Md. Ali Asgar Talukdar Hena, chairman, Sadar Upazila Parishad, Bogra as special guest and the programme was addressed by Dr. Monzoor-e-Elahi, member of Shari’ah Council of the bank and Assistant Professor of National University, Shafiqul Mawla, senior vice president and head of Bogra Zone of the bank and Mohammad Shahjahan, assistant vice president of the bank. Md. Abdul Matin, public prosecutor of Bogra Judge Court and Alhajj Fazlur Rahman Paikad, former president of Bogra Chamber of Commerce and Industry addressed the programme from among the local elites, says a prese release.

Engr. Mustafa Anwar in his speech as chief guest said, economic recession has been caused as a result of interest based economy. But there is no impact of the recession on Islamic financial institutions. For this reason there is a notable response for Islamic Banking all over the world.

Asian Highway ESCAP route Dhaka becomes party

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Asian Highway ESCAP route Dhaka becomes party
Chance of amendment slim: Yangon mum on Cox”s Bazar-Myanmar route

Bangladesh has become party to the ESCAP sponsored Asian Highway agreement. This was notified from the ESCAP headquarters in Bangkok. The ESCAP sponsored route kept Tamabil as the entry point and Benapole and Banglabandh as the exit points.

Earlier Bangladesh was not a party to the ESCAP-sponsored Asian Highway agreement because of the controversy revolving round the route.

The ESCAP sponsored route would help meet the Indian demand for transit from Bangladesh and obliterate the historical Grand Trunk Road built during the Shershah regime to connect the East Asian countries from Gumdung of Cox”s Bazar.

Except the Awami League government no other governments accepted the ESCAP sponsored Asian Highway routes. The last four-party alliance government withheld the ratification of the ESCAP prepared agreement and pressed hard to include the Chittagong-Myanmar route as one of the international routes of the Asian Highway.

But on every occasion Bangladesh was told to become party to the ESCAP agreement by ratifying the same and thereafter put forward the amendment proposal. But such advice was not considered logical, because once the ESCAP sponsored route is accepted it would be hard to change.

The present regime, however, accepted the logic to become a party to the agreement and ratified the ESCAP sponsored Asian agreement in August last.

After becoming party to the agreement, officials concerned felt that an amendment proposal to the original agreement should be proposed to accept the Cox”s Bazar-Myanmar route as one of the international routes. But the file could not move as no directive so far was received from the political authorities. The communications ministry officials feared that the amendment proposal might be dropped as there was indication that India would oppose the amendment proposal.

The communications ministry officials also said that they did not receive any encouraging response from Myanmar regarding Bangladesh”s demand to include Cox”s Bazar-Myanmar route as one of the international routes of the Asian Highway.

The maritime boundary dispute with Yangon compounded the whole gamut of bi-lateral relations. Both Myanmar and India have taken a common stand against Bangladesh”s claim regarding maritime boundary.

Bangladesh has already approached the UN arbitration to find a logical solution to Bay boundary dispute with its two neighbours. Two Indian nationals would plead in favour of Yangon and Delhi, which would create a great problem for Bangladesh.

In such a situation concerned officials feel that Yangon might side with India and might not support Bangladesh demand for the amendment to the Asian Highway agreement.

A senior official of the communications ministry said that Myanmar did not respond to the RFP (request for proposal) sent to them for their concurrence to develop Gumdung-Bawalibazar road, which would be developed by Bangladesh at its own expense. The understanding of developing the Gumdung-Bawalibazar was reached during the last 4-party alliance government.