Economy
Apparel exports to EU, UK jump big in FY23
July 10, 2023
· Apparel exports grew by 9.93% year-on-year in the European Union countries to about USD 23.52bn, while the earning was USD 21.40bn in FY22, according to the Export Promotion Bureau (EPB).
· Besides, the UK market also saw 11.78% year-on-year growth to over USD 5bn in FY23, while the earning was USD 4.50bn in the previous fiscal.
· The EPB data show, Bangladesh's apparel exports to non-traditional markets jumped by 31.38% to USD 8.37bn in FY23, which was 17.82% of Bangladesh apparel shipments in FY23.
· The Canadian market also grew by 16.55% to USD 1.54bn in the last fiscal year, while it was a USD 1.32bn market in FY 22.
· This is attributed to the relatively stronger economic performances of these markets compared to their Western counterparts.
From: https://www.tbsnews.net/economy/rmg/apparel-exports-eu-uk-jump-big-fy23-663294
Bangladesh-India trade thru local currencies opens today
July 11, 2023
· All is set for the launch of much-hyped cross-border trade between Bangladesh and India in their local currencies today (Tuesday).
· However, there is little possibility of trade transactions on the day of launch of the alternative system.
· The state-owned Sonali Bank and the private Eastern Bank from Bangladesh side have been chosen for the transactions. In India, the State Bank of India (SBI) and ICICI Bank (ICBK) will facilitate the two-nation export-import dealings sans the overheated US currency.
NBR collects BDT 3.25 trillion in revenue; revenue growth is 8.12% YoY
July 10, 2023
· The National Board of Revenue (NBR) ended the fiscal year 2022-23 with a revenue shortfall of BDT 440.0bn (USD 4.1bn), despite revenue generation growth by 8.12% compared to the previous financial year.
· In FY 2022-23, the revenue collection target was BDT 3.70 trillion (USD 34.6bn). According to NBR's provisional account, BDT 3.25 trillion (USD 30.4bn) revenue has been collected. There is a shortfall in the revenue collection target of around BDT 440.0bn (USD 4.1bn), reports UNB.
· In the current fiscal year 2023-24, the revenue collection target has been set at BDT 4.30 trillion (USD 40.2bn).
BD posts USD 3.48bn FDI inflow in 2022, up by 20.16%
July 10, 2023
· Foreign direct investment (FDI) in Bangladesh rose by 20.16% to USD 3.48bn in 2022, according to a report from a UN agency. In 2021, the FDI flows were USD 2.89bn.
· Outward FDI from Bangladesh, however, declined by 42.7% to USD 53mn in 2022 against USD 92mn in 2021, according to the 'World Investment Report 2023' of the United Nations Conference on Trade and Development (UNCTAD) published on July 5.
· The top five FDI recipient countries are Ethiopia, Cambodia, Bangladesh, Senegal, and Mozambique, accounting for about 70% of the total.
From: https://thefinancialexpress.com.bd/economy/bangladesh/bd-posts-348b-fdi-inflow-in-2022-up-by-2016pc
Finance set to adopt World Bank's model in making fiscal forecasts
July 10, 2023
· The Ministry of Finance is set to adopt a new, more dynamic and realistic model than the current one for fiscal forecasts, according to officials.
· The Macro-Fiscal Model (MFMod), developed by the World Bank in 2019, will be utilised for the committee meeting on fiscal, monetary and currency exchange in April next.
· Since the fiscal year 2006-07, the Finance Division has been relying on the International Monetary Fund's (IMF) Financial Programming for projecting macroeconomic variables.
Capital Market
Protective Islami Life Insurance files for BDT 150mn IPO
July 10, 2023
· Protective Islami Life Insurance Ltd wants to raise BDT 150mn (USD 1.4mn) from the capital market through an initial public offering (IPO) under the fixed price method.
· The company will issue 15mn ordinary shares with a face value of BDT 10 apiece. ICB Capital Management Limited is working as the issue manager for the company's IPO.
· The company said in its IPO prospectus that of the BDT 150mn (USD 1.4mn), it will invest BDT 139.5mn (USD 1.3mn) in the capital market, including government treasury bonds and fixed deposit receipts.
· Also, it will issue 2.25mn ordinary shares to its employees, which the BSEC has already approved. These shares will be locked in as per the public issue rules by the commission.
From: https://www.tbsnews.net/economy/stocks/protective-islami-life-insurance-files-tk15-crore-ipo-663278
Trade
FY23: Major export sectors except RMG made losses
July 10, 2023
· While Bangladesh's overall export earnings in the recently finished fiscal year 2022-23 were completely dependent on readymade garments (RMG), the performance of the other major industries was much lower than expected.
· Leather and leather goods, jute and jute goods, home textiles, agricultural sectors, and engineering items were among the primary sectors that suffered losses in the previous fiscal year.
· According to the Export Promotion Bureau (EPB), the country earned USD 55.55bn in the recently concluded fiscal year (FY23), a favorable gain of 6.67%, with roughly 84% or USD 46.99bn coming from the RMG. The RMG industry increased by 10.27%.
· However, the country's product export objective was not met due to negative growth in the country's top five industries. The government had set a target of USD 58bn in export revenues for FY23, but the actual export was 4.28% lower.
Agriculture
Jute acreage sees growth
July 10, 2023
· Jute acreage in Bangladesh has increased this season as growers expanded cultivation, encouraged by better prices after last year's harvest, according to the Department of Agricultural Extension (DAE).
· Preliminary estimates by the DAE show that jute cultivation edged up 2% to 0.75mn hectares in the current season, up from 0.73mn hectares previously.
From: https://www.thedailystar.net/business/economy/news/jute-acreage-sees-growth-3365991
Business
ICT trade bodies demand amendment to A2i bill
July 10, 2023
· ICT trade bodies in Bangladesh yesterday urged the government to amend the recently approved Agency to Innovate (A2i) Bill 2023, scrapping the clause that empowers A2i to form companies.
· Russell T Ahmed, president of the Bangladesh Association of Software and Information Services (BASIS) said that the current clause within the A2i bill grants the agency authority to establish any type of company and provide any service, which directly contradicts the interests of the industry.
· In light of this conflict, he requested the complete revocation of the power granted to A2i to form companies as described in Section 21 of the recently passed A2i bill.
Energy
From 230MW to 25MW: Kaptai hydel's climate fate
July 10, 2023
· The rainy season is the time for a hydropower plant to run at full capacity as water fills up its reservoir to generate electricity, and the capacity utilization can be as high as 95%.
· The 230MW Karnaphuli Hydropower Station is failing to boost its production in the ongoing rainy season when the country is facing frequent production cuts at other fuel-based power plants hindering business.
· The data from Bangladesh Power Development Board suggests the hydropower station now runs at 13% to 26% capacity while the plant officials say irregular rain and ancient machinery have cut its capacity.
· From March to April this year, its electricity generation went down to 25MW. It is, however, producing 60-70MW this month, added the officials.
From: https://www.tbsnews.net/bangladesh/energy/why-lone-hydel-plant-kaptai-ran-out-juice-663302
Miscellaneous
88% construction works of Bangabandhu Hi-tech Park completed
July 10, 2023
· Around 88% of construction works of the Bangabandhu Sheikh Mujib Hi-tech Park along the bank of Padma River in Rajshahi has already been completed on average.
· Director of the project Engineer Fazlul Haque said there are two portions-- Sheikh Kamal IT Training and Incubation Building and Sajeeb Wazed Joy Silicon Tower-- in the park.
· The construction of the "Sheikh Kamal IT Training and Incubation Center" was completed around two and half years back while another portion "Sajeeb Wazed Joy Silicon Tower" is now at the final stage.
note: this is for research and analysis purposes only