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Remittance inflow to Bangladesh witnessed a 32.35% year-on-year increase to $2.25 billion in May 2024, compared to $1.7 billion in the same period last year. The May receipts were also 10.29% higher than April 2024. Industry experts attribute the surge to migrant workers sending more money ahead of the Eid-ul-Azha festival, as is typical before major religious festivals in Bangladesh.
The Centre for Policy Dialogue (CPD) said the high prices of essential commodities have made them seem like luxury items for many people, especially the poor and vulnerable. It cited examples like a 30% rise in coarse rice prices and consistently higher rice prices in Bangladesh compared to international markets. The think-tank urged containing inflation and prioritizing the interests of disadvantaged groups in the upcoming budget instead of focusing only on GDP growth. photo: star
China’s President Xi Jinping has declared tackling high youth unemployment a “top priority” ahead of a key economic meeting in July. Official data showed the youth jobless rate at 14.7% in April, with 11.8 million new graduates entering the market in June. Analysts expect policy reforms like wage subsidies and job training programs to better match graduate skills with employer demands. Xi urged creating more jobs aligned with industrial priorities and encouraging entrepreneurship, signaling larger-scale reforms may be unveiled to address the persistent unemployment issue hindering China’s economic recovery. Photo: AFP
Meta, the parent company of Facebook, has decided to stop using Httpool as its authorized sales partner in Bangladesh from July 2024. Instead, Meta will interact directly with advertisers in the country. This move has raised concerns among businesses about potential difficulties in ensuring compliance with VAT and tax regulations when advertising directly with the global tech giant. Previously, Httpool facilitated local currency transactions and tax payments for Facebook advertising in Bangladesh. Photo: Reuters
Summit LNG Terminal’s floating storage and regasification unit (FSRU) at Moheshkhali, Cox’s Bazar, suffered damage to its ballast water tank after being hit by a stray broken floating pontoon during Cyclone Remal on Monday. Summit is working closely with RPGCL and Petrobangla, and an expert surveyor is en route to assess the damage. The company is taking full precautions before resuming normal operations, given the sensitive nature of handling liquefied natural gas and the FSRU’s importance for gas supply to the national grid. Further details will be provided after receiving the surveyor’s report. Photo: Summit Group
The American e-commerce giant Amazon is seeking to establish a central bonded warehouse facility in Bangladesh to enjoy tax benefits and use the country as a transshipment hub for its global supply chain. State Minister for Commerce Ahasanul Islam Titu revealed this, stating that Amazon wants to bring in goods through Bangladesh before sending them to destination countries to reduce tax burdens. The government plans to amend the e-commerce policy to allow local companies to engage in international transactions and facilitate the formation of an Amazon-like company for global distribution.
The International Monetary Fund (IMF) has raised its 2023 growth forecast for China to 5%, in line with Beijing’s target, citing recent policy measures and better-than-expected first quarter performance. However, the IMF warned that China’s industrial policy risks misallocation of resources and could harm trade. It urged scaling back such policies, removing trade restrictions, and implementing structural reforms to rebalance the economy towards consumption and address imbalances for sustainable long-term growth. Photo: AFP
Airfares in Europe and Asia are starting to plateau or fall, signaling an end to the post-COVID travel boom. Airlines, struggling with higher costs and limited aircraft availability, are facing a setback as the “travel at all costs” trend wanes and customers become more price-sensitive due to inflation. Budget carriers like Ryanair have warned about slower ticket price growth, while Asian airlines like Singapore Airlines and Cathay Pacific expect passenger yields to moderate as capacity expands. Photo: Daniel Eledut on Unsplash
Sri Lanka’s central bank kept interest rates unchanged on Tuesday, surprising some analysts who expected a rate cut. The move aims to curb inflation pressures and foster economic stability following the country’s financial crisis. Annual inflation cooled to 1.5% in April, but the bank cautioned about upside risks. It urged lenders to pass on lower rates to borrowers to boost private sector credit and support the economy’s projected 3% growth in 2024. Photo: Reuters/File
No vessel could return to the jetties of Chattogram port on Monday as rough seas persisted, suspending major operations for the second consecutive day. 19 vessels were earlier shifted to the sea as a precaution against Cyclone Remal. Attempts by port pilots to board these ships and bring them back failed due to heavy swells, rain and winds. Limited cargo delivery from port yards resumed, but loading/unloading remained suspended with outer anchorage vessels also unable to offload cargo. Photo: Rajib Raihan
The Bangladesh government is considering allowing undisclosed money to be legalized and laundered money to be brought back home through formal channels in the next budget. Officials say a 15% tax on legalizing black money is being considered. Similar attempts in the past have not yielded expected results. Economists suspect a significant amount of money was laundered abroad before the recent election. The government aims to boost foreign currency reserves by enabling the repatriation of such funds. Illustration: Collected
Shanta Holdings Limited has started selling commercial space for Dhaka Tower, a 500-foot skyscraper project along Gulshan-Tejgaon Link Road. Designed by renowned Dutch architects OMA, the iconic tower will feature offices, exhibition space, restaurants, and an observation deck upon completion in 2028. It aims to be an energy-efficient landmark in Dhaka’s skyline.
Google will acquire a $350 million minority stake in Indian e-commerce firm Flipkart, valuing the Walmart-backed company at $37 billion. The investment is part of a larger $1 billion funding round led by Walmart. Google aims to help Flipkart expand its business and modernize its digital infrastructure through this collaboration.
Donald Trump’s proposed economic policies for his 2024 presidential bid include imposing tariffs of at least 10% on all US imports, and up to 60% on Chinese goods, aiming to boost government revenue. Analysts warn these tariffs could cost American households $1,700 annually and add $500 billion yearly to consumer costs. Additionally, extending Trump’s 2017 tax cuts could inflate the deficit by $4.6 trillion over a decade, according to the Congressional Budget Office, potentially offsetting any tariff gains and requiring spending cuts. Photo: AFP
Shares at the Dhaka Stock Exchange (DSE) fell for the sixth consecutive day, primarily due to the price erosion of selective large-cap stocks like BRAC Bank, British American Tobacco Bangladesh, and Beximco Pharmaceuticals. The DSEX, the benchmark index, plunged 0.69% to 5,393.65, the lowest in over three years. Despite increased daily .
Economists and businesspeople doubt Bangladesh’s ability to achieve the government’s ambitious target of earning $110 billion from exports by fiscal year 2026-27. Despite the depreciation of the taka benefiting exporters, challenges like global inflation, lack of product diversification, and local crises in gas, power, and banking sectors pose significant hurdles. The government’s Export Policy proposes incentives and financial packages to boost exports, but concerns remain over attaining the goal within the stipulated time. PHOTO:Daily Star
Bangladesh can raise $32.6 billion annually by digitalizing tax returns within four years, says the Centre for Policy Dialogue (CPD). This amounts to 5% of the nation’s GDP. Digitalizing the taxation system can gradually enhance the tax revenue-to-GDP ratio to 16% by FY2029-30, generating $167 billion in tax revenue. Bangladesh’s revenue-to-GDP ratio declined from 10.99% in FY2010 to 8.26% in FY2023, lower than its neighbors, leading to increased loan dependence.PHOTO:Daily Star
China has initiated an anti-dumping investigation into imports of a crucial engineering plastic called polyoxymethylene copolymer from the European Union, United States, Taiwan, and Japan. The probe will last up to a year and a half and comes amid escalating trade tensions, with the EU recently launching investigations into China’s alleged unfair trade practices and the US raising tariffs on Chinese imports. Photo: Reuters
The amnesty allowing investment of undisclosed money in economic zones and hi-tech parks by paying only 10% tax is unlikely to continue from the next fiscal year 2024-25, as per plans of the National Board of Revenue (NBR). Currently, the facility does not require disclosing the source of invested funds until June 30, 2024. The move aims to discourage whitening of black money. However, changes may be made to the provision enabling legalization of undisclosed income invested in buildings and flats after paying specified taxes based on location. Representational image. File photo
National Bank’s losses surged 145% year-on-year to Tk 766.29 crore in the first quarter of 2024, deepening the crisis-ridden bank’s financial woes. The bank cited non-recovery from defaulters, higher interest expenses on deposits and borrowings as reasons behind the massive loss. Its consolidated net asset value per share also plunged to Tk 4.92 from Tk 11.92 a year ago. The new board aims to improve the bank’s financial health through recovery drives and low-cost deposit mobilization amid its deteriorating condition with a high amount of classified loans.
AD Ports Group of UAE has signed a non-binding MoU with Chittagong Port Authority for the development of the seaport, including the construction of a multi-purpose terminal under the Bay Terminal project. The proposed $1 billion investment aims to equip the terminal to handle 1 million TEUs of containers and 7 million tonnes of bulk cargo annually. The MoU was signed by AD Ports Group CEO Saif Al Mazurouei and CPA Chairman Rear Admiral Mohammad Sohail, witnessed by the Shipping State Minister and UAE Ambassador.
Despite global uncertainty, Bangladesh’s economic outlook remains bright with steady growth expected, said Frederic Neumann, HSBC’s chief Asia economist. He projected Bangladesh’s GDP growth at 5.9% for 2024-25 and 6.3% for 2025-26, supported by household spending, remittances, and investment. Highlighting opportunities, he stressed the need for Bangladesh to capitalize on record FDI flowing into Asia to thrive in the coming years, building on its growing competitiveness.
City Bank registered a 2.7% year-on-year growth in profit to Tk 92.44 crore in the first quarter of 2024, driven by higher operating profit and investment income. The bank’s consolidated earnings per share increased to Tk 0.75 from Tk 0.73 in Q1 2023. Its investment income grew by Tk 87.56 crore to Tk 190.07 crore due to higher holdings of government securities. City Bank, one of the leading private banks in Bangladesh, operates through 133 branches.
The United States is imposing higher tariffs on $18 billion worth of imports from China, targeting strategic sectors like electric vehicles, batteries, steel, and critical minerals. The move aims to discourage China’s alleged unfair trade practices and protect domestic investments. Tariff rates on EVs will quadruple to 100%, semiconductors to 50%, and levies on products like lithium-ion batteries and solar cells will also increase significantly. China has warned of retaliation, stating it opposes unilateral tariff hikes violating WTO rules.
Despite stable global steel raw material prices, Bangladesh will face higher import costs due to the US dollar rate hike since the introduction of the crawling peg system. The country’s steel sector relies heavily on scrap steel imports, meeting 90% of its annual 6 million tonne demand through imports. Industry experts at the Bangladesh International Trade Summit 2024 highlighted the potential impact of supply chain disruptions and growing demand on scrap steel availability and costs for Bangladeshi millers, despite the country’s favorable geographic location.
BRAC Bank has signed an agreement with British International Investment (BII) for a $50 million loan. The loan will enable BRAC Bank to support 3,500 micro, small, and medium enterprises (MSMEs) and women-led businesses in Bangladesh through its extensive network. This partnership aims to create economic opportunities, jobs, and support inclusive and sustainable development in Bangladesh, aligning with several UN Sustainable Development Goals.
China’s inflation rate quickened in April, with the consumer price index rising 0.3% year-on-year, higher than expected and marking the third straight month of positive territory. However, factory gate prices remained in deflationary territory, with the producer price index sinking 2.5% year-on-year. The data reflects the government’s efforts to boost spending and consumption in the world’s second-largest economy, which is grappling with challenges such as a real estate debt crisis and high unemployment weighing on demand. Photo: Reuters
The U.S. has revoked some export licenses that allowed companies like Qualcomm to supply Chinese tech giant Huawei, adding pressure amid fears Huawei could be used for Chinese espionage. The move came after Republican lawmakers urged blocking all exports to Huawei following its release of a new Intel-powered computer. China vowed to safeguard the rights of its firms, calling the U.S. restrictions “economic coercion.”
Bangladesh Bank raised its policy rate by 50 basis points to 8.5% to combat persistent high inflation above 9%. This contractionary move aims to reduce demand and control prices, following multiple rate hikes since May 2022. The central bank also increased the Standing Lending Facility rate to 10% and the Standing Deposit Facility rate to 7% to refine liquidity management. The World Bank warned that high inflation likely pushed 500,000 people into extreme poverty.
The three state-run oil companies in Bangladesh – Jamuna Oil, Meghna Petroleum, and Padma Oil – reported double-digit profit growth in the first nine months of the current fiscal year, despite a decline in sales. This growth was primarily driven by higher bank deposit interest incomes, benefiting from the rise in interest rates, rather than from their core operations. The companies’ profits rose between 11% and 28% year-on-year, boosted by the increased non-operating income from bank deposits.
As the automotive industry shifts away from combustion engines, German auto suppliers are cutting thousands of jobs. Workers like Emrullah Karaca, who made brakes for 20 years at Continental, are being retrained for new roles like assembling heat pumps. The transition is hitting towns reliant on auto suppliers hard, with factories closing and few alternative jobs available, especially as competition from cheaper Chinese suppliers intensifies. Photo: Reuters/
India lifted the ban on onion exports after nearly six months, setting a Minimum Export Price of $550 per tonne. This decision is significant as onion is a politically sensitive commodity in India, and it comes amid the Lok Sabha elections there. In Bangladesh, onion prices soared to Tk 65-70 per kg from the previous week’s Tk 58-60, with traders blaming suppliers for allegedly stocking onions ahead of Eid-ul-Azha.
Faisal Khan has been appointed as the managing director of Summit Corporation, Bangladesh’s largest independent power producer, LNG infrastructure, and energy trading company. He joined Summit Group in 2007 and has served as the president of the Bangladesh Independent Power Producers’ Association. Founder chairman Muhammed Aziz Khan expressed confidence in Faisal’s leadership abilities, while Faisal credited his uncle’s mentorship for his professional growth.
Remittance inflow to Bangladesh witnessed a 21% year-on-year surge to $2.04 billion in April, driven by the Eid-ul-Fitr festival when expatriates send more money home. Higher exchange rates offered by some banks for US dollars also contributed to the rise. April’s receipts were 2.31% higher than March’s $1.99 billion, according to Bangladesh Bank data.
Danish shipping giant Maersk reported a 13-fold drop in Q1 net profit to $177 million, citing Yemeni rebel attacks forcing it to avoid the vital Red Sea route. However, Maersk raised its full-year profit outlook to $4-$6 billion, citing higher demand and rates due to Red Sea supply chain disruptions caused by Iran-backed Houthi rebel attacks on ships since November.
The Asian Development Bank (ADB) has signed a $121.55 million financing package with Dynamic Sun Energy (DSE) Private Ltd to build and operate Bangladesh’s first private sector utility-scale 100-megawatt grid-connected solar power plant in Pabna. ADB arranged and syndicated the debt package, mobilizing financing from global lenders. The solar plant will generate 193.5 gigawatt-hours of electricity annually and avoid 93,654 tonnes of carbon dioxide emissions per year.