NBR plans e-pay for income tax

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NBR plans e-pay for income tax
Sayeda Akter

The National Board of Revenue (NBR) is set to introduce an e-pay system for income tax payers in July to reduce government revenue losses and taxpayers’ hassles.

The board sent a letter to Bangladesh Bank (BB) in this regard, requesting amendments to treasury rules. The treasury rules need to be revised to be able to accept e-payment, along with cash and cheques.

“If we can initiate the e-payment system, it will help people pay tax without hassles,” said Nasiruddin Ahmed, chairman of the board.

“This will help us resolve procedural complexities and rescue large sums of revenue that the government losses every year.”

“We will introduce the system in phases. Initially, we will start by bringing large and corporate taxpayers under the system. All stakeholders have agreed to cooperate to introduce the on-line tax payment system,” he said.

The NBR introduced the online tax filing system this month, which can work effectively once authorities launch online tax payment. NBR will be able to verify daily tax payment statistics for individuals and companies in its tax circles after the system is introduced.

NBR will be able to make faster moves and revise policy measures after examining the trends in tax payment, as the system will bring transparency to tax administration.

Currently, the NBR obtains data from its different zone offices to see the tax payment status and review trends, which is time-consuming. Additionally, taxpayers often complain about harassment by tax officials.

Bangladesh’s tax GDP ratio is one of the lowest in the world and even in the South Asian region, mainly due to complicated tax laws and anomalies in the board’s operations.

However, the government has taken several moves to simplify the system and increase revenue collection.

Meanwhile, the NBR recorded 14 percent growth in revenue collection in the July-November period of the current fiscal year, compared to the same period last year due to improved taxation.

Total revenue for the period stood at around Tk 21,309 crore, of which, around Tk 4,272 crore came from income tax, Tk 7,649 crore from VAT and Tk 8,816 crore from customs duty, according to NBR.

sayeda@thedailystar.net

Paint makers continue double-digit growth

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Paint makers continue double-digit growth
Competition is expected to intensify as RAK Group plans to enter market

Sajjadur Rahman

Bangladesh’s paint industry has been growing at a double-digit rate for the past several years riding on the increasing demand from the construction sector, market players said.

A recent study reveals its market size based on demand is estimated at Tk 1,000 crore and domestic production capacity Tk 920 crore. Leading private commercial bank Prime Bank conducted the study.

The demand-supply gap, according to the study, is Tk 80 crore.

“We believe there is still good prospect for paint industry here. It is growing constantly,” said Sangam Lal, chief financial officer of RAK Group, a UAE-based conglomerate that has been working on setting up a paint factory in Bangladesh.

The Tk 50-55 crore factory is likely to go for commercial production by the year-end.

Only a few players Berger, Asian, Roxy, Pailac, Aqua and Elite etc are operating in the market with over 90 percent market share.

The Prime Bank study shows Berger alone holds 48 percent market share, followed by Asian Paints 12 percent, Roxy 10 percent, Pailac and Aqua each 7 percent and Elite Paints 5 percent. Uzala and Navana paints are also in the market.

Market leader Berger grew by 25 percent in 2008 and Asian Paints that entered the market in 2002, whooping 50 percent.

The local housing industry, which grew 20 percent last year, may do well this year, despite internal and external obstacles.

Shipbuilding and automobile industries also consumed a good amount of paints, market operators said, without giving a specific percentage.

Key products that hold the major market shares are: plastic emulsion, distemper, outer coat (weather proof), synthetic enamel etc.

Plastic emulsion and distemper are close substitute of each other. Emulsion is basically used in high-end residence all over the country and distempers are economy class products having a demand in semi-urban and rural markets. Weather coat is growing very fast and presently hold 20 percent market share.

Touhidul Alam Khan, executive vice president (corporate banking) of Prime Bank, sees a good business prospect for new comers, as there is a gap in demand and supply.

Khan identified several reasons for the growth, which include growth in real estate sector, gradual increase in awareness of preservation of houses, widening urbanisation, availability of house loans and shift from semi-permanent to permanent housing structure, growth in shipbuilding industry and consistent growth of the economy at around 6 percent for the past five years.

Rupali Chowdhury, chief executive of Berger Paints Bangladesh, however, believes the market is already crowded and there is little business opportunity for the new entrants.

She said Berger has 50-55 percent market share in Bangladesh.

“Maintaining quality has helped the company to hold the market leadership,” she told The Daily Star.

However, Sangam Lal of RAK Group, said they are confident about grabbing a market share in the paint industry in Bangladesh.

sajjad@thedailystar.net

RMG trade shows in India in April

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RMG trade shows in India in April
Refayet Ullah Mirdha

Bangladesh is going to hold single country trade fairs of readymade garment (RMG) and textile products for the first time in four Indian big cities in April, which businesspeople see as an icebreaking initiative to increase bilateral trade volume.

“Mumbai, Delhi, Bangalore and Hyderabad are the cities where such fairs will be organised,” said Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association.

This trade body of Bangladesh and Indian state-run Apparel Export Promotion Council (AEPC) agreed to organise such a big exposition, following the recent visit of Prime Minister Sheikh Hasina to Delhi. Her entourage included a high profile business delegation, which had BGMEA representation.

Business between the two countries among other things came up for discussion during Hasina’s January 10-14 official visit to the next door neighbour.

BGMEA chief further said, “In connection with organising the fairs, an AEPC team is scheduled to arrive in Dhaka in the first week of February.”

In another development, India agreed to augment the imports of apparels to 14 million pieces fro 8 million pieces now with a zero tariff benefit every year. Dhaka is entitled to such duty-free benefit from Delhi under a pact for free trade, or Safta (South Asian Free Trade Agreement).

During AEPC team’s stay in Bangladesh’s capital city, it will also visit the BGMEA Institute of Fashion and Technology (BIFT). It, as per an understanding during Dhaka’s business team’s Delhi visit, may reach an agreement with BIFT to extend technical support in developing innovative fashion and design in Bangladesh’s garment items, Murshedy said.

Bangladesh will mainly showcase woven (pants and basic shirts) sweater and knit items in the fairs.

“I am hopeful that this time apparel business will pick up with India as it has $27 billion domestic clothing market with 18 percent annual growth rate. India needs to outsource garment items from its neighbouring country, ” BGMEA chief said.

reefat@thedailystar.net

Jute regains momentum as demand rises globally

http://www.theindependent-bd.com/details.php?nid=159185

Jute regains momentum as demand rises globally
ECONOMIC REPORTER

Jute has started to regain its momentum as the demands for jute and jute goods have increased at the global market bypassing the dominance of artificial fibre.

This has created an opportunity for Bangladesh to fetch huge amount of foreign exchange through widening export baskets. For exploring this opportunity the country needs to nurture cultivation of jute for raising production side by side promote manufacturing of jute goods through expanding jute industries, says a press release.

Experts said this at a press conference in the city here yesterday. Incidin Bangladesh, a research based development organisation organised the press conference to highlight its study on promotion of jute sector.

Executive director of Incidin Bangladesh AKM Masud Ali presented a written statement at the press conference while other executive directors Ratan Sarker and AKM Mustak Ali also spoke. In the paper, AKM Masud Ali said for promoting jute production, the government should extend farm loans for jute sector, side by side it should provide subsidies on inputs required for jute cultivation and play due role in purchase of jute for ensuring appropriate price for the item.

Referring to data by Bangladesh Jute Spinners Association, he said the production of jute in the country is not sufficient to meet the demand of the local jute mills, as the private jute mills at present require 30 lakh to 32 lakh bales of jute while the annual production of the item is 55 lakh to 60 lakh tons (one bale equals 180 kg). The cultivation of ‘deshi’ and ‘tossa’ varieties of raw jute in the northern districts including Lalmonorhat, Rangpur, and Dinajpur could not fulfill the target during the current season despite there was huge demand for the item at the global market at this moment, he added. Against target of bringing 6407 hectares of land under harvesting, deshi jute was cultivated only in an area of 4865 hactres of land in these three districts, while ‘tossa’ jute was cultivated in an area of 11762 hactres of land against target of 12300 hactres, he said.

The price of jute has increased by maximum 185 per cent during last two years, as in Rangpur jute is sold for Tk 923 per mound against Tk 323 per mound in 2007. The price for the item has increased to Tk 1400 per mond in 2009 from Tk 700 per mond in 2007 in Pirojpur, Masud Ali said.

The price of raw jute has increased as the demand for the item went higher both at local and global market, he said adding, despite this the target of jute production could not be achieved due to lack of adequate supports to the farmers at cultivation level.

“The farmers earned large amounts from production of jute due to jump in jute prices and also because of higher productivity due to use of high breed jute seeds,” he added.

Bapex set for maiden 3D survey

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Bapex set for maiden 3D survey
Sharier Khan

Bangladesh Petroleum Exploration Company (Bapex) is set to start for the first time three dimensional surveys in large national gas fields within a couple of months, completion of which will give a new understanding of the fields.

A top Bapex official said through this survey they expect to find an increase in recoverable gas reserve from Rashidpur and Titas fields by 3 to 4 trillion cubic feet (tcf). Of this, recoverable reserve of Titas may go up by 2 to 3 tcf.

If the survey ups the recoverable gas reserves, wells with bigger casings may be constructed to increase gas production from these fields. If everything works well that could take a couple of years.

It is generally perceived that the gas fields of Kailastila, Bianibazar and Bakhrabad have become smaller. But the gas fields of Rashidpur and Habiganj are big.

The official said the company had procured necessary equipment to conduct the 3-D survey in Bakhrabad, Titas, Rashidpur, Kailastila and Sylhet gas fields under a loan from the Asian Development Bank (ADB).

The Bapex would start the work as soon as the ADB gives it the clearance of its plans and designs for the survey. It is waiting for the clearance from December 16.

“Initially we thought we would begin the survey in the Bakhrabad gas field, which has depleted seriously. This plan was considered initially because we have no prior experience with three dimensional technology,” he said.

“This was abandoned because we all agreed that the gas reserve of the Bakhrabad field would not increase. So we want to do something that has encouraging results,” he added.

Bapex would now start with surveying 325 square kilometres of the Rashidpur gas field. This would take three to four months as it is the first such venture of Bapex.

It would be followed by studying in Titas field. But as this field has developed some leakage in recent years, Bapex would have to take advice from a consultant whether they would be able to conduct a 3-d survey there.

“Chevron can produce more gas from Bibiyana because they have a picture of that field. We don’t have such pictures. In the past we kicked off gas production in the Bakhrabad field without having any clear idea about the field size or health. The field initially produced 220 mmcfd gas. Now it came down to 35 mmcfd. And the field is surely not that old. This is a good example why we need to have updated information about the fields to keep reliable production,” he observed.

New scheme to boost agriculture

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New scheme to boost agriculture
Implement the projects quickly

Several very timely projects have been taken up by the government, the ministry of agriculture in particular, to increase production and indeed save agriculture in Bangladesh. One such plan would help mechanise farming in Bangladesh and another, if implemented without delay, would help prevent reduction of cultivable land that is being lost to urbanisation to the tune of almost 1 percent annually. The other project is related to bringing more land under irrigation.

Converting to new and scientific method of farming in Bangladesh through modern inputs has been long overdue. For far too long, dependence on the old faithful to till the land has restricted farming in our country to the primitive ways. To this end the government will provide 25 percent subsidy, to invest in technical inputs that will not only enhance production, but also ensure prevention of loss of food grains, a five percent post-harvest wastage of up to as much as 35 lakh tons per year due to the existing means of harvesting,

A very significant development in this regard is that the plan under “Enhancement of Crop Production through Farm Mechanisation” which has been approved by ECNEC, would require more than four farmers of lower and middle income groups to come together to qualify for the subsidy. This, we are certain, will lead to large scale farming, something that has not been in practice, and which has affected the overall food grain productivity in Bangladesh. Although the plans would be restricted to a limited number of districts initially, we hope that the entire country would be brought under the ambit of this plan eventually.

The idea of making it mandatory to obtain permission to construct houses or industries on cropland is very appropriate. Population pressure, as well as the need to industrialise, has led to extensive urbanisation which has caused the amount of cultivable land to come down to 77.65 lakh hectares in 2007-08 from 80.31lakh hectares in 2002-03, a very significant drop. And the sooner the idea is legislated and legal measures put in place in the regard, the better for agriculture in Bangladesh.

The agricultural ministry’s plan to bring about 389,000 hectares under irrigation is also very commendable. We have, however, a comment to make in this regard. While there is a plan to sink deep tubewells for the purpose, we feel that the minister’s stress on use of surface water for irrigation should be given due weightage. Given the effects of deep tubewells on subsurface water and water table, reliance on surface water seems to be the best option for us.

Govt team to visit S’pore, US to attract $5b investment in energy sector

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Bidding process starts for Meghnaghat-2
Govt team to visit S’pore, US to attract $5b investment in energy sector
Star Report

The Power Development Board (PDB) yesterday floated pre-qualification (PQ) document seeking qualified power developers to install a dual fuel 300 to 450 megawatt power plant in Meghnaghat.

The floating of PQ document coincides with a government expert team’s upcoming visit to Singapore and New York on January 25-26 and January 28-29 to attract investors in some large-scale energy projects. These projects include the Meghnaghat project dubbed as Meghnaghat 2.

“Till now, these large projects were all on papers. Now that we have floated a PQ document on Meghnaghat 2, investors will realise our seriousness,” said PDB Chairman Alamgir Kabir last night.

The PDB was seeking clearance of three PQ documents for Meghnaghat-2, Bibiyana-2, a 450 MW project, and Bhola 150 MW power projects. The ministry gave PDB a verbal go-ahead for the Meghnaghat 2 yesterday. “The rest will be okayed after we return from the road show,” Kabir added.

The road show seeks $ 5 billion investment for nine power projects of more than 3200 MW capacity plus a liquefied natural gas (LNG) terminal to import canned gas.

The PQ for Meghnaghat 2 has some relaxed criteria to encourage greater participation of bidders.

Earlier, for a power company to qualify for a similar bid, the PDB sought the developer’s experience of installing and commissioning of power plant of at least 300 MW capacity. Now the PDB seeks experience of installing plant of at least 200 MW capacity.

Moreover, the lead bidder must have a net financial strength of at least $ 100 million. Now the PDB allows adding net financial worth of partner bidders with the financial status of the lead bidder in order to show that they have combined net worth of at least $ 100 million. In that case, the partner bidder must have at least a 20 percent stake.

The lead sponsor must have 51 percent shares. If the lead sponsor does not have enough experience, it can show the experience of its consortium partner in the bid. In that case, the experienced partner must have at least 20 percent stake in the bid.

Meanwhile, an 11-member government team headed by Bir Bikram Towfiq-e-Elahi Chowdhury is set to leave for the road show to attract investors in Singapore and New York. The team will also have Chief of Board of Investment SA Samad, secretaries from the ministries of power and law, chairmen of Bangladesh Energy Regulatory Commission, Power Development Board, Petrobangla, Bangladesh Petroleum Corporation, a deputy governor of Bangladesh Bank and officials from the PDB. Each of them would address different aspects of investment in the country’s energy sector.

The Bangladesh team will seek investors for four coal-fired 500 MW power plants in Meghnaghat, Zajira, Khulna and Chittagong. The government intends to use supercritical pressure technology for plants to ensure minimal green house emission while the financing will be done on private-public partnership basis. The coal plants will need an investment of $ 3 billion.

It will also seek investors for two large combined cycle power plants with capacity ranging between 300 MW and 450 MW for Bibiyana-2 and Meghnaghat-2 and one 150 MW plant in Bhola.

In addition, the road show will seek investors for two 100 MW peaking power plants in Kaliakoir and Savar aiming at meeting industrial needs, especially in the tannery sector. Both of these plants will have dual fuel capacity so that they operate on both gas and oil.

Considering the country’s ongoing and future gas crisis in a situation where huge number of gas-based power and industrial units have already been installed, the government plans to install an LNG terminal in the Bay of Bengal, preferably near the off-shore Sangu gas field system. The terminal will help easy off-load of imported LNG containers by ships and transmit the LNG into the national gas system. The terminal should have the capacity to deal with 3.5 million tonnes of LNG.

This terminal, a popular method for import or export of LNG worldwide, may cost around $ 1 billion.

Monetary policy likely to attain target

http://nation.ittefaq.com/issues/2010/01/22/news0839.htm

Monetary policy likely to attain target
BSS, Dhaka

The monetary policy of the Bangladesh Bank (BB) is well-equipped to contain inflation and attain growth target, according to experts.

Talking to BSS, they said the policy has rightly addressed both the short and long term needs of the economy.

The central bank on Tuesday announced the monetary policy for the second half of the current 2009-10 fiscal year, putting inflation on top of its agenda.

The half-yearly strategic guideline also outlines the policy stance to be followed in the next six months to spur economy, perusing sustainable growth in trade, industries and agriculture.

The policy, for the first time, focuses on financial inclusion of the missing people who have not been getting institutional services for a long time.

Former governor of Bangladesh Bank Dr Mohammed Farashuddin observes that the monetary policy has rightly addressed the needs of the economy such as containing inflation, boosting export, crop production and employment.

He believes that this policy would effectively help attaining the fiscal target of GDP growth with low inflation.

Farashuddin also supports the BB’s suggestion to government for continuing market intervention so supply of essentials remains steady.

He, however, advises BB to ensure that money from banks goes to productive sectors, which will generate income and employment. Otherwise, he says, inflation may rise.

He also points out that the exchange rate needs to review periodically to help exporters sustain competitiveness on the global markets.

“The banking supervision needs to be strengthened to make the banks stronger,” Farashuddin said.

Noted banker and chief executive officer of Citibank NA in Bangladesh Mamun Rashid believes the central bank is pursuing an accommodative monetary policy against the backdrop of strong Asian rally instead of global recovery hope.

He observes the policy statement has not depended much on the recovery hope of major global economies, which is a right approach for attaining the target of the monetary policy.

But he is concerned about continued pressure from increasing commodity price that can make managing inflation a tough job for the central bank.

He also suggests keeping the government deficit financing under strict scrutiny as inefficient project financing would result in additional pressure on inflation.

Mamun identified two areas of concern that require constant monitoring and evaluation. These, according to him, are the Annual Development Programme (ADP) and Public- Private Partnership (PPP).

He said ‘inefficient implementation’ of projects under the ADP and PPP could result in unnecessary credit rise in the private sector, which may hinder the policy target of boosting non-inflationary growth. Senior economist of the World Bank in Dhaka office Dr Zahid Hussain terms the monetary policy technically sound and expects its positive implication on the economy.

“The policy is good enough to help economy. But, it should be adhered by the stakeholders timely with appropriate manners,” he said.

He said the policy duly aims at tightening the credit flow to the public sector to contain inflation.

At the same time, Hussain said, the policy includes measured credit management to ensure adequate fund to private entrepreneurs.

He says it is very difficult to manage foreign assets while easy to control domestic ones. The monetary policy, he adds, has correctly identified domestic asset management to keep inflation under control.

Hussain observes that the BB’s target of downsizing public borrowing from banking sector will eventually increase lending to the private sector.

He, however, suggests maintaining government’s borrowing through savings certificates at a reasonable level so it does not create a pressure on fiscal policy.

He sees there is a price pressure on the economy, but is confident that the BB’s accommodative monetary policy can face its implications on inflation rate through constant observation and effective remedy.

Farmers to get cash booster to buy agri-equipment

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Farmers to get cash booster to buy agri-equipment
Step targets cutting harvest-time loss

FHM Humayan Kabir

The government would provide Tk 1.20 billion in cash incentives to the farmers for procuring farm machinery in order to reduce post-harvest losses of crops, estimated at 14 per cent of total production, officials said Thursday.

Agriculture ministry officials said the small and medium farmers in 237 selected upazilas across the country would be provided with cash incentives for purchasing modern technology, to be used in their crop cultivation and harvesting periods.

“It is possible to cut the post-harvest losses by 9 per cent from the existing 14 per cent, accounting for 2.5 to 3.5 million tonnes of food grains of the total production annually,” an agriculture ministry official told the FE.

The Department of Agriculture Extension (DAE) under the ministry has taken the move to disburse the subsidy among the farmers under a scheme titled “Enhancement of crop production through farm mechanisation”.

The Prime Minister has appreciated the Tk 1.49 billion project and it was approved by the executive committee of the national economic council (ECNEC) Thursday.

The DAE will provide the fiscal booster to farmers in 237 upazilas over a three-year period from January 2010 to purchase farming tools like reaper, combined harvester and power thrasher.

The scheme would be expanded gradually to all the remaining upazilas across the country, the agriculture ministry official said.

Bangladesh, one of the most densely populated countries in the world, has 2.2 million people added to its food consumers every year.

“Since the 2.2 million new food consumers are being added every year to the country’s population, it has no options but to boost its crop production in the limited lands through applying modern technology and equipment,” the official said.

Making the situation worse, livestock utilisation and labour employment in farming are reducing sharply, which has prompted the government to popularise the use of modern technology in crop production, he said.

The official said the scheme would not only help boost crop production, it would also develop local entrepreneurship, farm technology industry and expertise in the country.

Under the Tk 1.49 billion project, the DAE will also train farmers, agriculture extension workers, technical staff of the government and local manufacturers in the field of modern farming equipment.

The government now provides cash incentives to farmers to purchase fertiliser, diesel etc aimed at encouraging them to increase crop production.

Broadband internet to boost earnings: Study

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Broadband internet to boost earnings: Study
Star Business Report

The annual earning from broadband internet penetration in Bangladesh is expected to reach Tk 128 billion by 2020 if the country ensures a rule-based policy regime, a study said yesterday.

Bangladesh’s internet penetration rate may grow to 32 percent at household level and 66 percent at business level by 2020 from the existing average of four percent, according to the study conducted by Boston Consulting Group USA.

Of the expected income, 90 percent will be generated only through the internet-based business. Mobile broadband will play a crucial role in reaching internet to the mass, said the study conducted on behalf of Telenor Group, the majority shareholder in Bangladesh’s mobile giant Grameenphone.

Ola Jo Tandre, director of Telenor Group (communications, corporate responsibility), showed the prospect of Bangladesh in a presentation at a seminar on ‘Achieving 2021: A Digital Age for Bangladesh’ organised by GSM Association at Radisson Water Garden Hotel in Dhaka.

GSM (Global System of Mobile Communication) Association safeguards the interest of the mobile communications industry globally. The association unites around 800 mobile operators from 219 countries.

“Bangladesh has a bigger chance than any other countries to use its 3G (third generation) spectrum for broadband rollout,” said Tom Phillips, government and regulatory affairs officer (public policy) of the association.

Citing an example, he said Bangladesh’s spectrum is not massively used by armed forces like in India, which is an advantage for Bangladesh to offer affordable broadband.

“Spectrum cost should be nominal to ensure the affordability of broadband services,” said Phillips.

Bangladesh’s Telecom Minister Rajiuddin Ahmed Raju said the government will not go for auction to award 3G licences like WiMax licence, which was awarded at a hefty price of Tk 215 crore.

Phillips said 1.3 billion fixed phones now cover 19.4 percent of the world’s total population, while 4.3 billion mobile lines link 64 percent. GSM operators cover 80 percent of the total mobile subscribers.

A 10 percentage-point increase in internet penetration leads to 1-1.25 percent leap in GDP (gross domestic product), 3-10 percent jump in production, one percent in new business, 2 percent in FDI (foreign direct investment) and 8-9 percent increase in government revenues, the study found.

In Bangladesh, 48 percent urban people are aware of internet services, while 29 percent of the rural population have heard about the service.

“Introduction of mobile broadband will help achieve the government’s target of ‘Digital Bangladesh’ by 2021, perhaps even ahead of the time. The telecom industry in Bangladesh would be honoured to be part of making this vision a reality,” said Hakan Rusch, president and country manager of Ericsson Bangladesh Ltd, in a presentation.

Yeafesh Osman, state minister for science and ICT, Zia Ahmed, chairman of Bangladesh Telecommunication Regulatory Commission, Oddvar Hesjedal, chief executive officer of Grameenphone, and Frode Stoldal, chief technical officer, also spoke at the event.

Bangladesh will have around 20 million internet subscribers by 2020 if proper policy support is provided, and 90 percent of the users will be added through wireless connections.

The study was part of an in-depth research into the adoption rate of internet and its impact in the emerging economies with special focus on Bangladesh, Thailand and Serbia.

Currently around five million people in Bangladesh enjoy internet services offered by both mobile and fixed internet service providers.

While talking about the possibilities of internet penetration in Bangladesh, Tandre said: “The patient-doctor ratio in Bangladesh is 4000:1, which is 1750:1 in India. So, internet can provide a perfect link between a patient in the rural area to a doctor sitting in a city hospital. In this way, we can lower the count.”

“The internet can also diversify the sources of income, for example in agriculture by improving price systems and reducing the reliance on middlemen. The internet can increase considerably the prices the farmers receive for their output.”

The study suggested ensuring transparency and predictability through better governance by reducing the uncertainty faced by the providers.

The government and the regulator should make sure that a high quality regulatory regime is in place.

Internet subscribers to be 20 million by 2020

http://nation.ittefaq.com/issues/2010/01/22/news0856.htm

Internet subscribers to be 20 million by 2020
Business Report

A study reveals that, given the right conditions for growth, Bangladesh could have nearly 20 million Internet subscribers by 2020.

The study titled “Towards a Connected Bangladesh: Socio-economic Impact of Internet in Bangladesh Economy,” was released with a press conference organized on the sidelines on the last day of the on-going GSMA Conference on Thursday, 21 January 2010.

According to the findings of the report, “with the appropriate initiatives and policy frameworks in place, analysis suggest 18.3 million Internet subscribers in Bangladesh by 2020, equaling approximately 10 subscribers per 100 inhabitants.” These figures translate to a household internet penetration level of 32%, and business adoption of around 66%.

Internet penetration has become a major indicator of social/economic development as countries are using Internet to participate in the international economy and to exploit emerging technologies for the betterment of citizens’ life, modernizing both institutions and markets.

The internet study was conducted by the Boston Consulting Group (BCG) on behalf of the Telenor Group, the majority shareholder of Bangladesh mobile operator Grameenphone. The BCG report was part of an in-depth research into the adoption rate of Internet and its impact in the emerging economies with special focus on Bangladesh, Thailand and Serbia.

Currently about 5 million people in Bangladesh use Internet services offered by both mobile and fixed Internet service providers. Only around 4% of the total population is now connected to Internet – fairly lower than what we see around the neighboring countries. According to a report published by the International Telecommunication Union, Bangladesh has the second lowest Internet penetration in the region.

Governments and regulators play a crucial role in creating awareness and opportunities to experience benefits of Internet. The report indicates the Bangladesh government’s policy directive to “ensure Internet for all” highlights the importance of Internet at the policy level, adding that the ICT Policy 2009 has specific direction and guidelines reflecting most of the priorities of the ‘Digital Bangladesh’ agenda.

In terms of overall GDP contribution in 2020 for Bangladesh, the report states that Internet is expected to contribute 2.6% of total GDP and suggests that a 10 percentage in Internet penetration is correlated with a 1% increase in the annual rate of new business formation; calculating the creation of over 129 K jobs alone in Bangladesh by 2020. The bulk of the GDP contribution coming from the increased productivity Internet users enjoy, in services, manufacturing, including agriculture, as well as increased diversification of sources of income.

BCG advocates in the study that government and regulators have the responsibility of ensuring that there is a high quality regulatory regime in place as well as the correct policy measures, for example supporting the dispersion of tele-centres and focusing on IT literacy in schools.

The findings are very optimistic about the potential of the telecom industry of Bangladesh with its footprint in every aspect of Bangladesh’s socio-economic life. The report concluded that due to limited coverage and poor quality of fixed lines in Bangladesh, it is likely that the majority of Internet subscribers in Bangladesh will be using wireless technologies and that provided with the appropriate investments, over 90% of connections could be wireless in 2020.

New int’l airport to be constructed outside Dhaka: Quader

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New int’l airport to be constructed outside Dhaka: Quader

A new international airport would be constructed outside the city to reduce the pressure on the Zia International Airport, minister for Civil Aviation and Tourism Ghulam Mohammad Quader informed the House Thursday, reports BSS.

Responding to a query from treasury bench member Manzur Quader Qureishi, the minister said a committee has been formed initially to carry out a feasibility study on the new airport.

“The committee is expected to submit its report by this month and after receiving it, the government would proceed further to this end,” he added.

The minister said that the government had taken steps to resume Biman flight on the Dhaka-New York route. “I hope the resumption of Biman flight on the Dhaka-New York route will be possible very soon through procuring aircraft on lease after completion of necessary formalities,” he said.

Replying to ruling party Lawmaker Maruf Saqlain he said the government was considering resumption of Biman or other private airlines flight on the Dhaka-Sayedpur route for the convenience of people of the northern region.

Answering to a supplementary raised by Awami League (AL) Lawmaker Mir Shakhawat Ali Badsha, the minister said the government has taken steps to complete the work of under-construction Khulna airport.

Govt needs to take BDR’s concern seriously

http://www.newagebd.com/2010/jan/22/edit.html#1

Govt needs to take BDR’s concern seriously

THE recommendation of the Bangladesh Rifles for a dusk-to-dawn ban on the movement of Bangladeshis within 150 yards of the zero point inside Bangladesh territory, to prevent the killing of civilians by the Indian Border Security Force, highlights, above all else, the failure of the successive governments to effectively raise with India the murders of Bangladeshis by the BSF.

According to a report front-paged in New Age on Thursday, the BDR has cited sustained flouting of the Joint India-Bangladesh Guideline 1975 and the International Human Rights Convention by the BSF and ‘no solutions…despite discussions at the diplomatic level’ as the rationale for its recommendation.

In a report submitted to the home ministry in the first week of January, the BDR claims that the BSF has killed 50 Bangladeshis since the February 25-26 BDR rebellion in 2009 till January 1, 2010. (The human rights organisation Odhikar puts the number of people killed by the BSF in 2009 at 96 in a recent report.) The country’s border guards have also recommended formation of committees with public representatives in bordering villages that, along with BDR personnel, will identify the places where restrictions should be imposed. The recommendations, while defensive in nature, clearly stem from the concern over continued loss of lives and need to be taken into cognisance by the government.

Incidentally, the recommendations come at a time when the Awami League-led government appears willing to go any length to have the people believe that the prime minister’s recent visit to India marked a breakthrough in the Dhaka-Delhi relations, although, if the joint communiqué released at the end of her visit were to be taken as a yardstick, it seems all that she has managed to secure from her Indian counterpart is some clichéd, vague and open-ended promises. Ironically, the BSF killed a Bangladeshi on the very day that the joint communiqué was issued.

The continued killing of Bangladeshi civilians on the border could very well be indicative of New Delhi’s unwillingness to rein in its trigger-happy border guards; after all, it is inconceivable that the BSF would have continued its killing spree had there been an explicit directive from New Delhi against such killings.

The Indian government has time and again tried to brand those killed by the BSF as criminals, smugglers, etc, as if the border guards have the right to be the juror and executioner all at the same time.

It is true that informal trade does take place across the border and the BDR report acknowledges as much. Curiously, as economists in both countries have pointed out, informal trade across the border benefits India more than it does Bangladesh. In fact, available statistics have it that informal trade contributes as much as formal trade with Bangladesh to the Indian economy. It is thus difficult to believe that the killings by the BSF are what the Americans would say ‘collateral damage’ of India’s clampdown on smuggling. On the contrary, there are reasons to suspect that New Delhi’s apparent unwillingness to rein in the trigger-happy BSF men is just yet another manifestation of its big brother attitude towards Bangladesh.

Be that as it may, the BSF killing spree on the border must be put to an end and, as we have commented in these columns before, it would require more than occasional flag meeting or director general-level conference between the border guards of the two countries. The initiative must come from the political level at state-to-state level talks.

If the AL-led government really wants the people to believe that the prime minister’s recent visit did mark a breakthrough in the two countries’ bilateral relations, it needs, for a start, to prove that by raising the issue with its Indian counterparts and by making New Delhi take decisive and demonstrative steps against killings by BSF personnel so that they do not recur in future and Bangladesh does not need to restrict the movement of its citizens in its own territory.

PM to head committee on Rooppur nuke power plant

http://www.thedailystar.net/newDesign/news-details.php?nid=122798

PM to head committee on Rooppur nuke power plant
Staff Correspondent

The government is considering formation of a high-powered cabinet committee headed by the prime minister to supervise Rooppur nuclear power plant and give directives for implementation of the project.

State Minister for Science and ICT Yeafesh Osman said this in parliament yesterday.

Citing that setting up a nuclear power plant is very expensive, complicated and sensitive, he said the government is also thinking of forming a high-level technical committee.

The technical committee will prepare a detailed report on selection of proper technology and funding of the project and submit it to the government, the state minister said. Formation of another working group is also under the government’s consideration, he noted.

“The government has moved to send proposals to friendly and interested countries seeking fund and transfer of technology for implementation of the nuclear power project,” the state minister said.

In a scripted answer to a query from Awami League lawmaker Israfil Alam, Yeafesh said the government had undertaken a project titled Accomplishment of Essential Activities to Implement Ruppur Nuclear Power Plant.

The state minister said “The task of determining the design basis parameters of the site of the under construction nuclear power plant is being carried out under the project. “

“The task of accomplishing geophysical, geological and geotechnical studies is underway to build the nuclear power plant and other nuclear structures,” he added.

A nine-member team, led by the state minister, in last October visited Russian Federation to get realistic ideas on implementation, funding and would be administration and organisational structure of the project, he said.

“The cabinet agreed to set up the nuclear power plant on receiving a report submitted by the team on its return,” the state minister added.

The government has decided in principle to sign a deal with Russian Federation for peaceful usage of nuclear power, Yeafesh Osman told the House.

Bangladesh planned to install nuclear power stations 44 years ago in 1964. About 259.90 acres of land were acquired for the project at Ruppur while a draft was also signed with Canada at that time.

International Atomic Energy Association (IAEA) allowed Bangladesh to install nuclear power plants in 2007 along with seven other developing nations while Russia, France, South Korea, China and Pakistan expressed their interest to offer their assistance for developing the infrastructure.

Under the current plan, initiated following the IAEA green signal, two nuclear power units with capacity of 1000 megawatt will be installed at Ruppur of Ishwardi upazila in Pabna against the backdrop of dwindling reserve of natural gas, which now accounts for 90 percent of electricity generated in the country.

Assuming office in January last year, the AL-led government moved again to implement the nuclear project to meet the acute power crisis.

Arrow Fabrics to invest $1.74m in Karnaphuli EPZ

http://www.thedailystar.net/newDesign/news-details.php?nid=122725

Arrow Fabrics to invest $1.74m in Karnaphuli EPZ
Unb, Dhaka

Bangladeshi company Arrow Fabrics (Pvt) Ltd will expand its garment manufacturing industry in the Karnaphuli Export Processing Zone.

The 100 percent local company will invest $1.74 million to set up its unit and will produce specialised garment items. The company will also create employment opportunity for 1,500 Bangladeshi workers.

Md Moyjuddin Ahmed, member (investment promotion) of Bangladesh Export Processing Zones Authority (Bepza), and Masuda Begum, managing director of Arrow Fabrics, signed an agreement at the Bepza complex on Wednesday.