Govt for signing FTA with UK
Federation of Bangladesh Chambers of Commerce and Industry, FBCCI President Md. Jashim Uddin on Tuesday,18 October emphasized that Bangladesh should sign Free Trade Agreement, FTA with the UK since it is one of the development and trade partners of Bangladesh.
Jashim made this statement at the Networking Dinner in honor of the President of the Confederation of British Industry (CBI) & Chancellor of the University of Birmingham Lord Karan Bilimoria, CBE DL FCA this evening at a hotel in the city.
The FBCCI chief sought CBI President’s support in Bangladesh’s initiatives for signing FTA with the UK and also solicited his assistance for continuing the existing trade benefit received from UK in the post-LDC period.
“We look forward to the future of our engagements through signing an MoU with CBI and joint programs for business promotion, industry-academia partnerships and skills development,” the FBCCI President added, said a press release.
At present, trade between Bangladesh and the UK stands at US$5.46 billion. In the FY 2021-22, Bangladesh exported goods worth US$4.83 billion to UK while imports were US$ 0.63 billion.
Seeking more UK investment, the FBCCI President said, “With the present pace of business growth and infrastructural development, we will be able to become the South Asian center for excellence and a regional hub with access via road, rail and sea. We envision the scope of strengthening cooperation in trade and investment with a focus on development and innovation, food processing, ICT, Plastic, petrochemical, shipbuilding, tourism, infrastructure development, petroleum and energy and knowledge transfer to facilitate the transition of the 4IR.”
Speaking as the chief guest, Industries Minister Nurul Majid Mahmud Humayun acknowledged the democracy of Bangladesh and described the economic success stories that took place during the last 14 years of tenure of the Awami League government.
“The UK will remain a friend in the future journey of Bangladesh towards a developing country,” the ministers expected.
President of CBI and Chancellor of the University of Birmingham, UK Lord Karan Bilimoria recalled the liberation war of Bangladesh in 1971 as his father took part in that war as a member of the Indian Army.
The Lord expected both countries to work together in harnessing the potential of the Bangladeshi youths highly skilled in ICT.
In the future, the UK will welcome more Bangladeshi students in UK universities, said the Chancellor of Birmingham University, UK. “Developing empathy between two countries is essential to bolster the bilateral investment,” the lord added.
Masud Bin Momen, Senior Secretary, Ministry of Foreign Affairs urged the private sector of the two countries to conduct a feasibility study on exporting Bangladeshi agro-products to the UK.
He also recommended undertaking initiatives to increase the access of Bangladeshi freelancers to the UK outsourcing market. “The private sector also may work on how Bangladesh can export more doctors, nurses, caregivers to the UK market,” the foreign secretary added.
British High Commissioner Robert Chatterton Dickson urged Bangladesh to work on getting more UK companies interested in investing in Bangladesh. He also suggested further developing the business environment.
FBCCI Senior Vice President Mostofa Azad Chowdhury Babu delivered the closing remarks at the event.
Former presidents of FBCCI Md. Mahbubur Rahman, Kazi Akram Uddin Ahmed, AK Azad, Matlub Ahmad, Vice Presidents Md. Amin Helaly, Salahuddin Alamgir, Md. Habib Ullah Dawn and the directors of FBCCI were present, among others.
PM Sheikh Hasina Delivers Independence Award
Bangladesh Prime Minister Sheikh Hasina on Thursday (23rd March) handed over Swadhinata Padak (Independence Award) to 9 individuals and one institution in recognition of their outstanding contributions to the country.
The programme to distribute the highest civilian award was held at the Osmani Memorial Auditorium.
Freedom fighter Colonel Shamsul Alam (retired), Lieutenant AG Mohammad Khurshid (posthumous), martyred Khwaja Nizamuddin Bhuiyan, and Mofazzal Hossain Chowdhury Maya received the award for their contributions to Bangladesh’s independence and the Liberation War in 1971.
Bangla Academy winner Begum Nadira Jahan (Surma Zahid) and ICDDRB Acting Senior Director Dr. Firdausi Qadri received the award for their contributions to research and training.
The late Mohammad Moinuddin Ahmed (Selim Al Deen) got the award for his contribution to literature.
Pabitra Mohan Dey and ASM Raqibul Hasan received the honour for their contribution to culture and sports, respectively.
The Department of Fire Service and Civil Defence has been awarded in the public service category.
Bangladesh honours individuals and institutions with the award every year ahead of Independence Day that is celebrated on March 26. The award was intriduced in 1977.
Dhaka’s air quality ‘unhealthy’ today reports AQI
Dhaka’s air quality took the ‘unhealthy’ zone on Thursday morning (23rd March).
With an air quality index (AQI) score of 137 at 8:56 am, Dhaka ranked 8th in the list of cities worldwide with the worst air quality.
An AQI between 101 and 200 is considered ‘unhealthy’, particularly for sensitive groups.
Pakistan’s Lahore, India’s Delhi and Thailand’s Chiang Mai occupied the first three spots in the list, with AQI scores of 186, 180 and 164, respectively.
An AQI between 201 and 300 is said to be ‘poor’, while a reading of 301 to 400 is considered ‘hazardous’, posing serious health risks to residents.
In Bangladesh, the AQI is based on five criteria pollutants—Particulate Matter (PM10 and PM2.5), NO2, CO, SO2 and Ozone.
Dhaka has long been grappling with air pollution issues. Its air quality usually turns unhealthy in winter and improves during the monsoon.
As per the World Health Organization (WHO), air pollution kills an estimated seven million people worldwide every year, largely as a result of increased mortality from stroke, heart disease, chronic obstructive pulmonary disease, lung cancer and acute respiratory infections.
’17 Banks Facing Liquidity Crisis over Violating Loan disbursement limit’
Despite Bangladesh Bank’s initiatives to promote good governance in the banking sector, 17 banks have recently violated their loan disbursement limits, and are now embroiled in a severe liquidity crisis.
Having been over-aggressive in providing loans, they are now unable to recover the loans and attract new deposits as desired, according to the latest internal report of the central bank.
The banks should not sanction any new loans until they restore the ratio of their loans to deposits in accordance with limits set by Bangladesh Bank, which regulates the financial sector.
Conventional banks can provide loans of up to Tk 87 for every Tk 100 in deposits, while Shariah-based banks can give loans of up to Tk 92 for every Tk 100 in deposits, according to the rules of Bangladesh Bank.
This is called Advance Deposit Ratio (ADR) or loan-deposit ratio limit in banking terms.
According to the central bank report covering January 1-26 of this year, 17 banks violated the limits set for them on lending orders due to a lack of discipline.
As a result, the concerned banks have been plunged into an extreme liquidity crisis, making it difficult for them to sanction new loans. Some of them are even unable to pay depositors in some cases.
Experts fear that the existing situation has created additional risks for depositors. According to them, irregularities, corruption and ‘ghost loans’ – loans to firms that turn out to be non-existent -are behind the collapse of the banking system’s loan disbursement process.
“In the banking sector, there have been allegations of giving large amounts of ghost loans in recent times. If this continues, the sector will be at risk,” said ABM Mirza Azizul Islam, economist and adviser on finance to the last caretaker government.
Mirza Azizul told, “Lending beyond the limit against deposits disrupts the credit system.”
Besides, the debt collection situation of the banks is not satisfactory now. In such a situation, if the non-performing loans increase further with additional loans, then there is a danger for the bank and its depositors will suffer, he added.
He suggested the intervention of the central bank in these banks immediately.
According to the Bangladesh Bank report, the ADR of National Bank Ltd stood at 98.23 while that of AB Bank was 96.64 in its conventional stream and 103.45 in its Shariah stream.
State-owned Basic Bank’s ADR stood at 91.17, One Bank’s was 89, and multinational National Bank of Pakistan’s was 87.52. Widespread irregularities and corruption have already been reported in these banks.
Apart from this, Community Bank’s ADR was 88.28, NRB Bank at 88.05 and IFIC Bank’s ADR was 87.48, the report states.
Shariah-based Exim Bank’s ADR stood at 100.28, Standard Bank’s at 96.28, Premier Bank’s Islamic Window 155.09 and Bangladesh Commerce Bank’s Islamic Window’s ADR was at 133.26.
Apart from this, the ADRs of five other Shariah-based banks ranged between 93.01 and 104.54.
A managing director (MD) of a private bank told that the lending limit has undoubtedly been set by Bangladesh Bank based on adequate research and global best practices. No bank should have to cross the limit.
“These violations are creating risk in the banking sector. Depositors in particular will be at greater risk. Already some banks and non-bank financial institutions are not able to return money to depositors,” he said, maintaining anonymity.
The central bank has also extended the period of ADR adjustment five times to allow the banks to bring their lending practices in line with the limits.
However, many banks could not coordinate this. In such a situation, Bangladesh Bank even increased the required ADR to improve the overall liquidity situation of the banking sector to maintain the pace in credit flow to the private sector.
The executive director and spokesperson of Bangladesh Bank, Md Mezbaul Haque, told that although some banks may at times find themselves in violation of the ADR set for them, the central bank would under normal circumstances give them time to get themselves back within the limit.
“But if they stay outside the limit for long, then they must be warned and action would be taken accordingly,” Mezbaul said.
- Turnover Shrinks, Slight Hikes on Index
- PM Sheikh Hasina Delivers Independence Award
- Despite Banking turmoil in US, Interest rates Hikes
- Dhaka’s air quality ‘unhealthy’ today reports AQI
- Investors’ eyebrows up as Turnover slammed on DSE
- ’17 Banks Facing Liquidity Crisis over Violating Loan disbursement limit’
- BD, Bhutan penned agreement on Movement of traffic in transit
- Ramadan Fasting to begin on Friday
- DSE on Slight Hike
- ‘BD can attract more investment if they assure less corruption than other markers’
- Phoenix Insurance discloses its Dividends
- Central Insurance Declares its Dividends
- Bourse collapse on 2nd workday of the Week
- New Schedule pinned amid Ramadan Month Ahead on Stock Market
- PM Sheikh Hasina urges to ensure sustainable export growth & explore new markets