Govt to examine special EPZ for shipbuilding: Faruk

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Govt to examine special EPZ for shipbuilding: Faruk
Star Business Report

The government will examine the possibility of setting up a separate export processing zone (EPZ) for shipbuilding sector of the country, Commerce Minister Faruk Khan said yesterday.

He also said Denmark will invest a huge amount in the shipbuilding sector of Bangladesh in the months to come.

The minister was speaking at a function styled Denmark Bangladesh Matchmaking Event at Westin Dhaka.

A 21-member Danish business delegation within the shipbuilding and fisheries sectors is in the city now to look for local partners and investment potential. Danish embassy has organised the function and the trip for November 8-15.

The minister said the government will also consider tax holiday facility for the potential sector.

He said if the Danish companies invest in the backward linkages of shipbuilding, the sector will be able to save the same amount of money by reducing import of shipping machinery and equipment.

Khan also called upon the delegation members to be careful about environmental and labour issues if they operate business in the country.

He urged the Danish businesspeople to invest in dredging sector also, as presently the country requires many dredgers to maintain its rivers’ navigability.

Danish Ambassador Einar Hebogaard Jensen said investing in Bangladesh has different advantages including cheap labour.

Investment cost is 50 percent lower in Bangladesh compared to other countries in the region including Vietnam, he added.

He also told the function that the first ship exported from Bangladesh to Denmark, Stella Maris, is now plying smoothly there.

Bangladesh Enterprise Institute President Farooq Sobhan and President of Bangladesh Shipbuilders’ Association Mahmudur Rahman also spoke at the function.

Govt sets limit on foreigners in private industrial parks

http://www.thefinancialexpress-bd.com/2009/11/08/83739.html

Govt sets limit on foreigners in private industrial parks

Doulot Akter Mala

The government has imposed curbs on the number of foreigners a company can employ in a private export processing zone (PEPZ) to ensure better opportunities for local managers and experts, according to a newly framed policy.

A company shall keep the number of foreigners to a maximum five per cent of its total workforce and employ them only in technical and senior management jobs, the policy approved last month said.

The restrictions have been imposed as the country’s first private industrial park, the Korean Export Processing Zone (KEPZ), is set to start operation on a 2500 acres of land in Chittagong early next year.

The KEPZ has said it would create more than a hundred thousands jobs, with most of the investment coming from abroad. Some local conglomerates have also lined up to set up private EPZs to woo foreign investment.

The board of governors of privte export processing zones (PEPZ) okayed the policy in a bid to forestall moves by any company to hire excess number of foreigners at the expense of local workers.

“All entrepreneurs and investors will have to follow the government guidelines while employing foreign nationals in their companies,” said an order issued by Dr. Md. Nununabi Mridha, director general of PEPZ executive cell and secretary of PEPZ board of governors.

The policy has been framed in line with the PEPZ Act, 1996, the order said.

“Employment of foreign nationals in PEPZ enterprises shall be restricted only to technical people to posts for which no local expertise are available,” the policy said.

The new policy allows a limited number of appointments of foreigners at top management positions, especially those who will take policy decisions of the company or look after its overall management.

Investors will, however, have to arrange adequate training programme for local managers and experts so that they can replace the foreigners within a short period of time, the policy said.

The new policy has also pre-emptively curbed any move by the companies to pay poor salaries to Bangladeshi technical hands or top managers.

“Employment and other service conditions of Bangladeshi nationals should normally be the same as those of the foreign employees of equal status with the exception that the latter may be allowed ‘overseas allowance’ not exceeding one-third of their salaries,” the policy said.

Investors will have to take prior permission from the PEPZ executive cell before employing foreign nationals, whether in a salaried positions or on commission basis, it said.

For existing foreign employees in the PEPZ, investors have to take permission for renewal or extension of service contracts, it added.

Investors will have to take clearances from the executive cell of the PEPZ for extension of visas and remittance of salary, the policy said.

All enterprises in the PEPZ which employ foreign nationals will have to submit yearly personnel return of their expat workers to the PEPZ executive cell, furnishing information on nationality, period of employment, salaries, allowances and other facilities, the policy said.

European firms seek changes in BB rules for investment in shipbuilding

http://www.thefinancialexpress-bd.com/2009/11/06/83561.html

European firms seek changes in BB rules for investment in shipbuilding

FE Report

Bangladesh Bank must fine-tune its foreign investment regulations to woo large-scale investment in the country’s fast-booming shipbuilding sector, a high level European trade delegation said in the city Thursday.

The European Bangladesh Federation (EBF) made the observation at a roundtable with local entrepreneurs while expressing their eagerness to invest hugely in the country’s shipbuilding sector.

“Shipbuilding in particular is a highly potential industry in Bangladesh and this is a segment which the investors from Netherlands are keen to explore,” President of European Bangladesh Federation of Commerce and Industry (EBF) Jan Frederik Oldenhuizing said.

“However, the major prerequisites in facilitating investment in the sector are

reforms in the central bank regulations and elevating the country’s overseas image”, Oldenhuizing, who is also is the President of Bangladesh-Dutch Chamber of Commerce, added.

The Bangladesh Enterprise Institute (BEI) and Asian Tiger Capital Partners (AT Capital) jointly organized the meeting.

The event was part of a project initiated by BEI and AT Capital on “Establishment of an Effective Bangladeshi Diaspora Network for Economic Transformation of Bangladesh”.

The European delegation in the meeting said vessel making industry could emerge as the next big sector in Bangladesh as the country is criss-crossed with scores of big rivers and has bounty of cheap labour.

But the country must get rid of the policy and investment bottlenecks standing on the way to increasing European investment in the sector, they said, urging quick steps in this regard.

At the same time, the delegation also called for effective efforts for improving Bangladesh’ s image abroad, as the country is very often portrayed as politically unstable.

Earlier speakers in the meeting, focused on the advantages as well as challenges of investing in Bangladesh.

Partner of AT Capital Minhaz Zia who made a presentation on the investment opportunities in Bangladesh, highlighted the country’s competitive advantages including strategic location, cheap labour and demographic dividends.

President of BEI Farooq Sobhan in his speech stressed the need for skill enhancement and human resource development through transfer of technical skills from Europe.

Addressing on the occasion, Mr. Salahuddin Kasem Khan, MD, AK Khan Group, President of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), identified scopes for investment into logistics of ready-made garment sector.

Delegates from EBF in various sectors such as construction, investments, shipbuilding, design and engineering, finance, project consultancy and business development took part in the discussion.

Agriculture, SME branches now mandatory for banks

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Agriculture, SME branches now mandatory for banks
Rejaul Karim Byron and Sajjadur Rahman

The central bank is set to ask private commercial banks to open agriculture and SME branches from next year to boost lending to farmers and small businesses across the country.

Bangladesh Bank as the regulator took the decision yesterday and is expected to issue a circular next week.

“I have already signed the circular,” BB Governor Atiur Rahman told The Daily Star.

Agriculture and SME branches must be located outside divisional headquarters, according to the circular.

Presently, private banks operate SME and farm lending through conventional bank branches and some SME service centres.

In a decision last year, Bangladesh Bank allowed commercial banks to open SME service centres to serve the SME sector exclusively. The centres were not allowed to run conventional banking.

According to the circular, SME service centres will turn into SME branches and no permission will be given to banks to open new SME centres.

Agriculture is a priority issue both for the government and the central bank. The government has already reduced the prices of fertilisers and other inputs.

On the other hand, the central bank has set a Tk 11,512 crore farm credit disbursement target for banks for the current fiscal year, an increase of nearly 24 percent from a year ago.

A senior central banker said the move would help banks reach out to rural potential customers.

“We are taking this initiative to boost lending to small and medium enterprises and the farm sector,” said BB Deputy Governor Nazrul Huda.

According to the circular, half of the fund to be collected through SME and agriculture branches has to be invested in those sectors. The central bank will monitor the loan disbursement issue strictly.

A bank will have to submit a list of branches it wants to open to the central bank every year.

The banks will have to mention the numbers of SME and agriculture branches along with their conventional branches.

Another BB official said banks will be given priority in opening branches in potential rural areas at upazila level. In these branches all types of transactions except for foreign currency dealings could be done.

Anis A Khan, managing director of Mutual Trust Bank, welcomed the BB move saying that it would help farmers and small enterprises get bank loans easily.

“We can’t do banking through the existing SME service centres,” said Khan.

sajjad@thedailystar.net

Govt. to set up 7 power stations in N-region

http://nation.ittefaq.com/issues/2009/11/05/news0718.htm

Govt. to set up 7 power stations in N-region

BSS, Rajshahi

The present government has started setting up of seven power plants in six northern districts under Rajshahi division aimed at minimizing the power shortage.

Chief Engineer of Northern Distribution Division under Power Development Board (PDB) Latifur Rahman told BSS here today that tender documents were already received and evaluation works of those are progressing.

He said additional 370 megawatts power will be added to the national grid on successful completion of the construction works which will help fulfilling power demands in the 16 northern districts at a larger-scale. Of the total seven, he said and four stations would be established with the government’s own expenditures while the three others will be on rental basis.

Engineer Rahman hoped that the stations will go on generation by March 2011. He said the rental stations are 50- megawatt each at Thakurgaon, Syedpur under Nilphamari and at Katakhali in Rajshahi.

The government will purchase the generated electricity from these stations and will supply those to the consumers’ level at a subsidized rate. Besides, the state-owned stations are 50-megawatt each at Katakhali of Rajshahi Santaher of Bogra, Baghabari of Sirajgonj.

Land of railway department has been selected for setting up power plant in Santahar.

He said additional gas will not be provided for operating any more power plants. So, there is no alternative to furnace oil, diesel or coal to generate electricity.

He said the government has adopted the programme for setting up of furnace oil based rental power plants that would solve the region’s existing power crisis within the next two years.

As part of this, construction of another coal-based 125- megawatt power unit is at the final stage at Boropukuria. It is expected to go into production next year. The diesel-run power plants will start generating furnace oil-based electricity by next March, Latifur added.At present, he said the PDB supplies around 420 to 450 megawatt power to the 16 northern districts through the national grid against the daily average demand of 700 megawatts.

To bring balance in production with the demand, 300 megawatt more power will be added to the new regional gridline.

On the other hand, he mentioned that the government has also approved a proposal for establishing six more 33-kilovolt power sub- stations each in Rangpur, Gaibandha, Sirajganj, Pabna, Dinajpur and Thakurgaon districts.

Govt needs to promote, not cripple, BAPEX

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Govt needs to promote, not cripple, BAPEX

THE government will move the High Court to suspend a previous order that banned foreign oil companies from exploring and extracting oil or gas on mainland Bangladesh, so says a report published in New Age on Saturday. The ban came as a consequence of a petition filed by the Bangladesh Environmental Lawyers Association which pointed out that these foreign companies did not fully compensate Bangladesh for the losses and damages that they had caused citing the twin blowouts at Tengratila, which was being operated by the Canada-based Niko Resources, and Magurchhara, which was being operated by the US-based Occidental Oil and Gas Company.

Experts in the field also believe there is no need to award foreign companies any more onshore blocks and the government should instead promote local companies, namely Bapex, which is effectively the operational wing of Petrobangla as far as exploration and mineral extraction is concerned. However, the government appears to be all too convinced that onshore blocks should be leased off to foreign companies to cope with the chronic gas shortfall that the country has been facing. It is apparently for that reason that the government is looking to move the High Court, as the newly appointed chairman of Petrobangla said, although he had opposed such a move previously over the last seven years through the tenure of the BNP-led government and the military-controlled interim regime.

There should be little to oppose the view of the experts, in principle, for allowing local companies to conduct exploration and extraction, especially since the economics are too compelling. The government purchases a unit of gas from local companies at Tk 7 per unit but it costs the government over Tk 200 – and that too in foreign currency – when purchasing gas from foreign companies. It should be pointed out that the government actually makes a profit on the gas purchased from Bapex. On the other hand, increased extraction by foreign companies would also mean an added pressure on the country’s foreign exchange reserve.

While it is most likely true that local companies do not have the kind of resources and funds necessary for exploration or extraction, the government should take a principled decision in that regard, to finance them and help them find their ground. The principled position, in this regard, should be that the companies would be provided all kinds of support and assistance, from capacity building to fund allocation, to carry out necessary activities till they do have enough sufficient manpower and logistics. That the local companies do not have such resources has been a perennial problem, and there is reason to believe that they have been gradually and deliberately crippled to make a case for foreign companies to come in, which also appears to be the case under the current circumstances.

Considering the previous successes of Bapex, its costs and the advantages to the local economy, the government should not have much reason to promote them, instead of moving the court for lifting a ban that will allow foreign companies to crowd it out of onshore hydrocarbon exploration.

Govt to boost domestic investment first to encourage FDI: Muhith

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Govt to boost domestic investment first to encourage FDI: Muhith

United News of Bangladesh . Dhaka

Finance minister AMA Muhith on Wednesday said the government is undertaking measures to boost domestic investment first so the foreign investors feel encouraged to invest in the country.

‘Foreign investment will not rise if domestic investment does not increase,’ he said, adding that the stalemate over investment has not been removed till now.

The finance minister was talking to reporters after a meeting with a 17-member German Business Mission, led by German Asia Pacific Business Association chairman Peter Clansen, at his ERD office.

German ambassador to Bangladesh Holger Michael and Bangladesh German Chamber of Commerce and Industry president Saiful Islam were present at the meeting.

Muhith said the investment slowed down due to the global economic recession while the domestic investors are closely following the policy developments after the new government taking office. ‘The investors are in a ‘wait and see’ strategy.’

He said the government has already undertaken measures to remove two longstanding bottlenecks of investment – high interest on bank loans and bureaucratic tangles – while measures are being taken to solve the energy and power crisis.

‘I hope, the investment stalemate would go very soon,’ he said, adding that the September 2009 imports of capital machinery show a better prospect for investment.

The finance minister said that the German businessmen showed interest to invest in shipbuilding, gas and power sectors, transportation, water resources, and ICT sectors.

‘Shipbuilding can play a positive role in the economic development of the country through attracting FDI,’ he said.

Govt plans to create MTU for medium taxpayers

http://www.thefinancialexpress-bd.com/2009/10/25/82530.html

Govt plans to create MTU for medium taxpayers

Doulot Akter Mala

The government plans to create a Medium Taxpayers Unit (MTU) to have greater focus on the medium level taxpayers for boosting income tax collection.

The new unit will work under the Large Taxpayers Unit (LTU), which will give attention to increase tax collection.

“The proposal to set up the MTU came under the TACT (tax administration, capacity and taxpayers services) project,” said a senior income tax official.

The National Board of Revenue (NBR) will implement the TACT project by this fiscal with the financial support of Department for International Development (DFID), he said.

The aim of the TACT project is to increase the number of income taxpayers to 5.0 million by next five years, he added.

It is necessary to give focus on some medium potential sectors to boost tax collection, he said.

Ship breaking and Pharmaceuticals can be monitored closely as fast growing sectors, he said.

“Income tax collection will be doubled if the government brings 2500 large and medium taxpayers under those units,” he added.

Currently, LTU is dealing with only 987 individual and corporate taxpayers. The country’s all commercial banks, and insurance and leasing companies are paying income tax under the LTU.

Taxmen can easily monitor the medium taxpayers and conduct one-to-one discussion, the official said.

“We have prepared a work plan for setting up the new unit in line with the model of other developed countries that achieved significant success in income tax collection,” he said.

The proposal came as a part of revenue board’s move to expand the LTU in other cities to increase revenue collection, he said.

There is a plan to expand LTU in Chittagong to monitor a number of large and medium taxpayers in the port city, he added.

LTU is the brain-child of International Monetary Fund (IMF), which has suggested the government to expand the unit across the country to enhance tax collection.

Tax collection of the LTU almost doubled in the last two years. The LTU collected Tk 22.50 billion in 2005-06 fiscal. It stood at Tk 40.42 billion in 2007-08.

Of LTUs collection, corporate taxpayers contribute 72 per cent while individuals pay 28 per cent.

“More than 100 corporate taxpayers have been enjoying tax exemption or tax holidays,” said a senior official of LTU.

“It is necessary to bring more corporate houses and individuals under the jurisdiction of LTU to reduce risk-factor in achieving revenue collection target,” the official said.

The government is considering inclusion of fast growing and profit-making sectors in the MTU, he said.

Safeguard duty to protect local industries on cards

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Safeguard duty to protect local industries on cards

Doulot Akter Mala

The government is set to introduce long-awaited safeguard duty to protect the local industries from the onslaught of import of excessive quantities of cheap items.

The measure was shelved during the last two years due to stiff opposition from development partners.

Local business leaders have long been urging the government to frame such a rule to help the local industries stay competitive in the face of surging import of low-priced products.

The NBR has prepared a proposal for introducing the measure within a short time that would be sent for finance minister’s consent, said an NBR official.

Under this measure, the NBR can levy a heavy interim duty to restrict excessive import of cheap finished products that might hurt the local industries, he said.

Bangladesh Tariff Commission (BTC) will be empowered to act as the safeguard authority. It will identify the products entitled to enjoy the facilities.

“The National Board of Revenue (NBR) is going to introduce the measure after the BTC said it has skilled manpower and enough

capacity to deal with the measure,” said an NBR official.

“It is necessary to take steps for introducing safeguard rules to check excess importation of any goods that might seriously affect local industries,” said BTC chairman Dr. Md Mujibur Rahman in a letter sent to the revenue board chairman.

As a WTO signatory, Bangladesh should introduce the safeguard measure for protecting the national interest, he wrote stressing the need for framing a safeguard rules for introducing the measure.

A total of 92 WTO member countries, out of 153, have already introduced the safeguard measure in their respective countries following WTO rules, he said.

Officials said there was a move to introduce the safeguard measure in 2007-08 fiscal budget, but the caretaker government has backtracked from the move as the then finance adviser declined to give his approval.

Revenue board officials said the NBR has drafted a law in 2007 that was also vetted in the law ministry but it remained shelved due to stiff opposition of International Monetary Fund (IMF) that termed it ‘too much protection’ for the local industries.

According to draft rules of safeguard duty, the safeguard authority will examine the impact of excess import of certain finished products on local industries. It will recommend the level of safeguard duty to be imposed on import of the particular products.

Local industries, which are affected by cheap imports, will have to lodge complaints with the safeguard authority seeking protection. The complaints must be substantiated with detail proofs of which products are harming the local industries and how.

The rules said the authority might recommend an interim duty on the imported products on the basis of a preliminary investigation.

The exporters will also get the chance to justify their positions and prove that their export prices are not lower than the local manufacturing costs, or their export volumes do not exceed the allowable limit, sources said.

The safeguard rules will also outline an investigation policy for the authority. The government has to repay the duty amounts to the exporters if the allegations were found false, according to the policy

Under the existing customs rules, there are three kinds of duties in WTO to remedy local industries—antidumping, countervailing and safeguard.

Bangladesh already introduced the antidumping and countervailing duties that the BTC has been monitoring as designated authority.

The BTC is carrying out all relevant activities like receiving applications, investigation for anti-dumping and countervailing measure which is almost similar for safeguard measure.

RMG stimulus likely this month

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RMG stimulus likely this month
Star Business Report

Commerce Minister Faruk Khan said yesterday a stimulus package for the garment sector is likely to be announced anytime this month.

Khan was speaking to reporters at the BGMEA Institute of Fashion and Technology (BIFT) at Uttara in Dhaka after the inauguration of the Centre of Export and Product Development (CEPD).

On September 16, ministries and stakeholders concerned held the second taskforce committee meeting on recession to decide on how to support the sector and offset the bad impacts of financial crisis worldwide.

Industry insiders complain a sub-committee that was supposed to be formed to report on such stimulus within a month as per the taskforce body decision is yet to come into being.

The minister spelt out the government’s firmness to support the readymade garment industry, still the prime foreign exchange earner.

The human resource in the sector should come under garment owners’ investment plans, besides production and exports, Khan suggested.

At the inauguration, Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), pointed out that the country is now largely dependent on foreign technical personnel to run factories and business.

“I hope BIFT will produce human resources according to global standards to fulfill the garment sector needs. Garment factory owners are also investing to train technical personnel now,” Murshedy said.

David Lee, project manager of United Nations Industrial Development Organisation (UNIDO), said businessmen should develop different technical sides of the garment sector.

Initiatives jointly taken by BIFT and CEPD will help produce technical personnel to meet the current crisis in the garment sector, Lee added.

BIFT and UNIDO jointly set up CEPD on the BIFT campus to impart practical training to learners.

Industries without ETP will be closed down

http://nation.ittefaq.com/issues/2009/10/12/news0417.htm

Industries without ETP will be closed down

Staff Reporter

Government will close down the industries that will not set up Effluent Treatment Plant (ETP).

Dr Hasan Mahmud, State Minister for Environment Ministry, said that government has taken initiatives to increase manpower and activities of the environment bureau.

As a part of the initiatives, the government has made the setting up of ETP and shifting of environment polluting industries mandatory. The industries that will not set up ETP will be forced to close down, he warned.

The State Minister was addressing a session of 7th Global Editors’ Forum titled ‘The Politics of Climate Change and Energy Security’ in Denmark on October 11.

He said that sustainable development is not possible without controlling environment pollution.

Hasan Mahmud sought assistance from the world community to implement the initiatives taken by Bangladesh government.

Bangladesh would also demand compensation from developed countries at Copenhagen conference that will be held in December, he also said.

3-year import-export policy approved

http://nation.ittefaq.com/issues/2009/09/28/news0208.htm

3-year import-export policy approved

UNB, Dhaka

The Cabinet Economic Affairs Committee on Sunday endorsed the country’s new export-import policy for next three years (2009-2012) creating room for conditional import of some new products, including eggs of hens, ducks and birds.

However, the new policy will need the full-fledged Cabinet’s final approval before it comes into effect.

As per administrative procedure, Cabinet Economic Affairs Committee’s nod is a prerequisite for an export-import policy before its placing for final Cabinet approval.

Finance Minister AMA Muhith presided over the meeting. The new export-import policy was approved under two separate folds with the titles “Export Policy 2009-2012″ and “Import Policy Order 2009-2012″.

Additional Secretary of the Cabinet Division Tariqul Islam briefed reporters about the outcome of the meeting. He sad the cabinet body made some amendments to the draft policy prepared and placed by the Commerce Ministry with the meeting.

WTO compliances came into consideration during the amendments.

The new import policy added some new products, with some conditions, to the country’s import basket while the export policy also incorporated the nascent shipbuilding industry into the list of thrust sectors.

Oceangoing ships and vessels’ export has been added as the seventh item to the existing six-item list of thrust industries, which include agro-product and processing, light engineering, shoes and leather goods, pharmaceuticals, software and IT and home textiles.

On the other hand, the import of some new items, which often came out to be essential commodities, has been relaxed through softening the conditions tying their import.

In some cases, the import bar was completely withdrawn from some items on some conditions, while in other cases, some new conditions were imposed on the import of some other products.

Under the new import policy, the import of maximum 3-year-old reconditioned cars has been allowed for taxicab services in compliance with the new national budget.

Melamine-free certification has been made mandatory for the import of powdered milk and milk foods while import of tinned powdered milk allowed up to 2.5 kg.

The import of eggs of hens, ducks and birds was allowed in the new import policy on some conditions while some conditions were imposed on the import of scrap vessels.

The egg import has been permitted at a time when the country often faced artificial crisis of the essential food item, which is blamed on the domestic factory farmers.

The import of capital machinery and raw materials without any L/C by RMG industries, import of reconditioned generator and generating sets on commercial basis, crude soybean and palm oil import by industries and import of telecommunications machinery for private-sector operators have been allowed in the new import policy.

Some new sectors have been declared as special development sectors in the new export policy which include crust and finished leather, frozen foods, fish processing, handicrafts, electric and electronic goods, live-flowers, jute and jute-goods, hill tracts handloom, unfinished diamond and imitation jewelry, ceramic, melamine and plastic goods.

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

Tk 1,800cr stimulus to prop up exports

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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.

Govt declares IT as priority sector, Commerce Minister tells Intl summit

http://www.bssnews.net/newsDetails.php?cat=8&id=57821&date=2009-09-10&PHPSESSID=a8cf4edf7d92d67648aa064b2e400dde

Govt declares IT as priority sector, Commerce Minister tells Intl summit

DHAKA, Bangladesh, Sept 10 (BSS) – Commerce Minister Faruq Khan has said the government has declared the IT sector as a priority one keeping in view the dream of making `Digital Bangladesh.’

“The country has now 25,000 skilled IT engineers while around 6,000 software engineers are now being graduated every year from 90 universities and 700 colleges,” he said while addressing the inaugural session of a two-day Chief Information Officers’ (CIO) Summit of the world’s renowned IT executives at Arizona in the United States on September 9.

As many as 150 renowned companies of the Fortune-500 countries took part in the summit, where Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) held a seminar on `Outsource to Bangladesh’, said an FBCCI press release here today.

FBCCI president Annisul Huq and Sajib Wajed Joy, son of Prime Minister Sheikh Hasina, gave overviews on the present status of Bangladesh’s flourishing IT industry and its future on the occasion.

Joy in his speech listed the government’s various steps for development of the IT sector including introduction of WiMAX technology, expansion of submarine cable, setting up of IT parks and infrastructure development.

He said Bangladesh has now become capable to supply quality IT products to the world market at competitive prices compared to India, Indonesia and Vietnam.

Annisul Huq hoped that the summit would play a significant role in expanding the IT sector in Bangladesh.