Economy

Govt's borrowing from treasury bills up by BDT 731.7bn in FY23

May 28, 2023

 

·          The government's internal debt burden, as indicated by the revised budget, will increase by BDT 731.7bn (USD 6.9bn) in the current fiscal year.

·          According to finance ministry officials, the revised fiscal 2022-23 budget indicates a 49% increase in the government's estimated borrowing from treasury bills compared to the original target in the budget.

·          The higher borrowing has also increased the government's expenditure on interest by BDT 75.2bn (USD 0.7bn).

 

From: https://www.tbsnews.net/economy/govts-borrowing-treasury-bills-tk73167cr-fy23-639738

 

BBS to introduce district-wise GDP

May 28, 2023

 

·          The Bangladesh Bureau of Statistics (BBS) is set to introduce district-wise gross domestic product (GDP) to analyze economic growth, production structure, structural changes, income distribution, consumption, investment, savings, and per capita income at the district level.

·          According to BBS officials, the Statistics and Informatics Division (SID) has submitted a project proposal at an estimated cost of BDT 379.1mn (USD 3.6bn).

·          The project is aimed at establishing physical and soft infrastructure, conducting surveys and studies, and compiling district GDP data. Additionally, it seeks to enhance the existing system of quarterly GDP, which is expected to be introduced in the upcoming fiscal year.

 

From: https://www.tbsnews.net/economy/bbs-introduce-district-wise-gdp-639714

 

Jica's 2nd highest ODA loan disbursement to Bangladesh

May 28, 2023

 

·          The Japan International Cooperation Agency (Jica) recently reported that during the Japanese Fiscal Year 2022, both its commitment and disbursement of official development assistance (ODA) loans in Bangladesh reached the second-highest levels since March 1974.

·          In the last Japanese fiscal year (spanning April 2022 to March 2023), Jica committed a total of 331bn Japanese Yen across five crucial projects, further solidifying its long-standing history of cooperation with Bangladesh.

·          Jica's disbursement in the Japanese Fiscal Year 2022 amounted to 261bn Japanese Yen, slightly below the 264bn Japanese Yen disbursement during Japanese FY 2021.

 

From: https://www.tbsnews.net/economy/jicas-2nd-highest-oda-loan-disbursement-bangladesh-639646

 

Banking

Defaulted loans rise by BDT 110bn in 3 months; NPL ratio is 8.80%

May 28, 2023

 

·          The country's banking sector has witnessed a rise in default loans by BDT 110bn (USD 1.0bn) in the first three months (January-March) of this year.

·          The total default loan in the banking sector stood at BDT 13,162bn (USD 124.2bn) in March, which was 8.80% of the total outstanding loans.

·          According to central bank data, at the end of March 2023, non-performing loans of state-owned banks stood at BDT 579.6bn (USD 5.5bn), which is 19.87% of total loans. The loans were BDT 564.6bn (USD 5.3bn) in December 2022.

 

From: https://www.tbsnews.net/economy/banking/default-loans-tk11k-crore-3-months-639466

 

https://www.thedailystar.net/business/news/default-loans-rise-9-three-months-3331556

 

Budget

Turnover tax on beverages may jump from 0.6% to 5.0% in FY23

May 28, 2023

 

·          The government is planning to impose a high turnover tax on the carbonated beverages industry to squeeze out more revenue from this sector, according to finance ministry officials.

·          The existing turnover tax rate is 0.60% for the carbonated beverages industry, which is likely to be fixed at 5% from the next fiscal year, officials said, adding that the advance income tax paid for raw material imports will be counted as the minimum tax.

·          In addition, the government also plans to realize more revenue from cigarettes through a price increase of about 12.5% and impose another 1% supplementary duty for lower-end cigarettes, said officials.

 

From: https://www.tbsnews.net/economy/budget/turnover-tax-beverage-may-jump-eight-times-639318

 

Pricier LPG likely as govt mulls cutting duty benefits

May 28, 2023

 

·          Liquefied Petroleum Gas (LPG) cylinder manufacturers, in the ensuing budget, are likely looking at increased duty on raw material imports and a possible addition of 15% VAT, as part of the government's move to curtail certain industry benefits aiming to boost revenue.

·          The local cylinder manufacturers will also see the existing 5% VAT raised to 7.5% at the production stage, according to finance ministry sources.

·          With increased import duty and added VAT on cylinder raw materials.

 

From: https://www.tbsnews.net/economy/budget/pricier-lpg-likely-govt-mulls-cutting-duty-benefits-639242

 

Automobile

Car imports see uptick ahead of budget

May 28, 2023

 

·          Car imports through Chattogram and Mongla ports have surged in the last few months of the current fiscal year.

·          In May, 2,641 cars were imported from Japan in two ships – the highest number of cars imported in a month this fiscal year.

·          About 75% of the cars imported into Bangladesh are reconditioned or used cars while the rest are brand new. The import of reconditioned cars generates about BDT 50bn (USD 0.5bn) in revenue for the government.

 

From: https://www.tbsnews.net/economy/car-imports-see-uptick-ahead-budget-639730

 

Business

Kazi Badam to invest USD 17.2mn in BEPZA Economic Zone

May 28, 2023

 

·          Bangladeshi company Kazi Badam Limited is going to set up an Agro Processing (Cashew Nut) industry in BEPZA Economic Zone (BEPZA EZ).

·          The company will invest USD 17.2mn to produce Cashew Nut Kernel and Cashew Nut Shell Liquid, reads a press release.

·          Kazi Badam Limited will produce annually 13,050 tonnes of Cashew Nut Kernel and Cashew Nut Shell Liquid where 494 Bangladeshi nationals will get employment opportunities.

 

From: https://www.tbsnews.net/economy/kazi-badam-invest-1722m-bepza-economic-zone-639462

 

Capital Market

Al-Madina Pharma makes debut on SME Platform on May 29

May 28, 2023

 

·          Al-Madina Pharmaceuticals will begin share trading on the SME Platform of the Dhaka Stock Exchange and Chittagong Stock Exchange on Monday.

·          The veterinary drug manufacturer raised BDT  50mn (USD 0.5bn) through a qualified investors’ offer (QIO) early this month to expand the business and repay bank loans.

·          Earlier on February 1, the Bangladesh Securities and Exchange Commission allowed it to raise the said amount by issuing 5mn ordinary shares at a face value of BDT 10 each.

 

From: https://thefinancialexpress.com.bd/stock/bangladesh/al-madina-pharma-makes-debut-on-sme-platform-monday


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