Untitled

Pragati Life Insurance declares 12% cash dividend

AGM on 10 August, record date 20 July this year

The board of directors of Pragati Life Insurance Ltd recommended a 12% cash dividend for the year that ended on 31 December 2022.

The decision has come from the board of directors’ meeting on Monday.

In 2021, the life insurer recommended 11% cash and 6% stock dividends for the year.

The annual general meeting (AGM) for shareholders to consider dividend payment proposals along with other agenda will be held on 10 August 2023 through a digital platform.

The record date to identify eligible shareholders who can join the AGM and avail dividends will be 20 July.

Pragati Life Insurance is a third-generation life insurance company incorporated in 2000 and listed on the bourses in 2006.

The company provides life insurance, pension, and health insurance. It also offers a wide variety of insurance products that fulfill the requirements of present and prospective policyholders.

In the July to September period of 2022, its life fund stood at Tk611.77 crore.

As of 31 May 2023, the sponsors and directors jointly held 38.37% shares, institutions 34.34%, and the general public held 27.29% shares in the company.

The last trading price of each share of the life insurer was Tk132.1 on Monday at the Dhaka Stock Exchange.

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Growing with organisation

I am sure all young professionals aspire to advance in their career. If so, they are not alone. Many determined professionals share this desire, but the path to success can be daunting and difficult to navigate. However, through my own experiences and reflections prompted by conversations with many young colleagues, I have identified six tactics that have consistently propelled my progress within organisations.

A sponsor is more important than a mentor: The first tactic is to secure sponsorship from someone within your workplace who recognises your potential and can significantly benefit your career. A sponsor is a critical relationship in your career. While seeking one out may not be a straightforward task, it is the sponsor who recognises your strength based on a combination of professional and personal factors.

Remember that authenticity is your competitive advantage, and therefore, you should stand out from your peers by showcasing your unique qualities and making yourself noticeable, increasing your chances of attracting a worthy sponsor’s attention to speak in your absence. I recommend listening to Carla Harris from Morgan Stanley who espouses the same belief.

Cultivation of mentorship is crucial: The second tactic is to cultivate mentorship, and I will recommend finding a mentor or sounding board outside of your immediate professional environment to gain fresh perspectives and impartial counsel. The mentor’s sole agenda should be to help you grow and succeed in your career from a broader perspective.

Right networking is the key: The third crucial strategy to embrace in advancing your career is networking. Building a strong professional network requires a long-term commitment, testing your patience and dedication. Although the returns may not materialise immediately, networking often leads to priceless rewards. By genuinely connecting with others and nurturing relationships, you create a strong support system capable of propelling your career to new heights.

Managing internal politics is important:  The fourth strategy is to learn how to manage politics professionally. Politics exist within every organisation and learning how to navigate this landscape is crucial for career advancement.

Recognise that challenges are expected but your skilful maneuvering can make a difference. You need to understand the dynamics at play, allowing you to make informed decisions. Wisely building alliances with key stakeholders can significantly influence your path. Advocating for yourself with integrity and confidence is crucial in successfully navigating an organisation’s political environment.

Maintaining positive connections will help: My fifth piece of advice will be to maintain positive connections with every person you come across during your career, regardless of their position within the organisation. Remember that karma is real and actions have a way of resurfacing, so you never know when or where you might encounter former colleagues, juniors, or superiors in the future. Building a reputation for professionalism, respect, and being cordial opens doors for potential opportunities and partnerships in the long run.

Maintaining a supportive ecosystem can ensure sustained results: Establishing a supportive ecosystem outside of work is the sixth strategy. This is important for maintaining a healthy work-life balance and preventing burnout and anxiety. Surround yourself with individuals who understand and encourage your professional aspirations. Their support will help you sustain the enthusiasm and energy required to persist and perform at your best in the workplace.

While setbacks are inevitable on any career journey, these six strategies have propelled my own progression. I encourage all young professionals to adapt these strategies to their unique circumstances and consider implementing them in their career endeavours.

 

Source: The Daily Star

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Govt’s borrowing goes up amid falling revenue

customs duty

The government’s dependence on borrowing to finance national budgets has increased over the past decade as revenue collection has failed to keep pace with the ballooning public expenditure.

Finance ministry data showed that taxes raised by the National Board of Revenue (NBR) and other public agencies could fund 74 per cent of the government’s total expenditure of Tk 174,013 crore in the fiscal year of 2012-13.

The rest of the expenditure was met through debts from the domestic source and foreign loans and grants, which accounted for 22 per cent and 4 per cent, respectively.

A decade later, in 2021-22, the contribution of revenue generation to actual expenditure declined to 65 per cent. On the other hand, the share of borrowing from internal and foreign sources rose to 35 per cent. The trend continued in the subsequent years as well.

The government plans to meet 34 per cent of its expenses set for 2023-24 on the back of borrowing, mainly from the domestic banking system.

Sadiq Ahmed, vice-chairman of the Policy Research Institute of Bangladesh, said by and large, fiscal deficits have been kept at below 5 per cent of gross domestic product.

“However, the inability to mobilise adequate revenues despite securing rapid GDP growth has weakened the quality of fiscal management. This issue has become important over the past several years as the tax-to-GDP ratio continues to fall, whereas fiscal deficit, public debt and interest cost as shares of GDP are rising.”

The fiscal deficit increased from 3.7 per cent of GDP in FY19 to 5.1 per cent in FY22.

Total revenues are expected to remain at 8.5 per cent of GDP in FY23. Although revenues are expected to gradually increase, this ratio remains among the lowest in the world.

According to Ahmed, a matter of immediate concern is the ongoing macroeconomic instability reflected in a persistently high inflation rate and pressure on the balance of payments.

“In this environment, the government needs to reduce aggregate demand pressure to reduce inflation and contain the pressure on the balance of payments.”

The new budget proposes to keep the fiscal deficit at 5.1 per cent of GDP.

But Ahmed thinks the actual fiscal deficit for the next fiscal year could be higher since the lofty target of increasing tax revenues is not likely to be achieved.

Revenue growth averaged 10 per cent annually between FY2017 and FY2023 and the NBR has not been able to reach its revenue generation goal in the past one decade.

“This approach to fiscal policy management is clearly inconsistent with the task of restoring macroeconomic stability. Growing fiscal deficit and the use of bank financing will both put additional pressure on aggregate demand and on the balance of payments,” said Ahmed.

“The correct policy stance should be to reduce the fiscal deficit to around 4 per cent of GDP by cutting subsidies and rephasing spending on large infrastructure projects.”

Selim Raihan, executive director of the South Asian Network on Economic Modeling, said the government should borrow judiciously. “There is no alternative to generating more revenues.”

The government is increasingly depending on borrowing from either banks or foreign sources, which has some implications, said Raihan.

When the government considers taking loans from the banking sector, it can borrow from commercial banks or the central bank. When it takes up funds more from commercial banks, it affects the private sector’s credit growth since the availability of loans for businesses narrows.

The private sector credit growth target has been set at 11 per cent in FY24 against the public sector’s 30 per cent.

“If the government continues to borrow from commercial banks, it will create a big implication,” said Raihan, also a professor of economics at the University of Dhaka.

In FY24, the government has planned to borrow Tk 132,395 crore from the banking sector and Tk 102,490 crore from external sources.

If the government borrows from the central bank, it means an injection of fresh money into the economy. Then it may quicken inflation, which is already running at a decade high.

In the last few years, the government has taken some mega projects, which prompted the country to turn to the external sector for funds.

Prof Raihan said the government is moving towards short-term bilateral loans and longer-term multilateral loans.

“This is a matter of concern as the government may face higher debt servicing and interest repayments, especially for bilateral loans since they usually remain high.”

The pressure stemming from higher debt repayments may deepen in the coming years, he said.

The economist urged the government to scrutinise foreign loans and initiate projects carefully after carrying out proper feasibility studies.

“If projects are undertaken through proper assessment, it may cut cost- and time overruns and give some relief to the government.”

Towfiqul Islam Khan, a senior research fellow of the Centre for Policy Dialogue, said the apparent quick rise of GDP, partly due to rebasing, has allowed the deficit to grow as the size of the budget deficit relative to GDP in considered more often.

Khan thinks the more concerning part of the budget deficit is the composition of financing.

“Foreign aid is increasingly coming from more stringent and expensive sources while the domestic borrowing’s share and the debt servicing liability are growing. Indeed, Bangladesh has lost track of its set pathway to some extent,” he said, referring to the medium-term debt strategy.

Since higher borrowing from the central bank is expected to continue in FY24, it will undoubtedly increase the money supply and lead to inflationary pressure, he said.

“If administered interest rates are maintained, the situation is likely to worsen day by day.”

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NBFIs’ interest rate spread at historic low

High volume of NPLs, rising cost of funds, falling deposits blamed

Non-Banking Financial Institutions (NBFIs) witnessed an interest-rate spread at 0.37 per cent in May last, registering a historic low and reflecting vulnerability of the country’s financial sector.
Industry insiders attributed it mainly to the piling up of non-performing loans (NPLs), rising cost of funds and falling deposits, and feared that the adverse situation might put the NBFIs in jeopardy unless taken care of immediately.

The bankers were, however, expecting the indicators to turn around a bit in the coming months thanks to the Bangladesh Bank (BB) sets a new interest rate mechanism based on the benchmark reference rate to be effective from next month.

The spread, difference between weighted average rates of deposits and advances, was 0.44 per cent in the previous month and fell seven basis points in May, according to the BB statistics.

An official at the BB said the spread was 3.04 per cent even in January 2022 before starting falling and stood at 1.83 per cent in July 2022, followed by 1.14 per cent in January this year.

“The May figure is the lowest in the NBFIs’ history. It reflects how poor the health of the financial institutions here,” the official said, adding that other key indicators like NPLs and rising cost of funds and shrinking deposits also affected the sector badly.

The BB data shows the aggregate volume of NPLs of the NBFIs rose by over threefold in less than seven years. As a spillover effect, two major profitability-measuring indicators – return on asset (ROA) and return on equity (ROE) – keep falling alarmingly.

The volume of classified loans or leases was 7.3 per cent at the end of June 2016. Since then, the NPLs have been rising and jumped to 22.99 per cent in June 2022, when the NPLs stood at Tk 159.36 billion of the total loans amounting to Tk 693.32 billion.

The deposits stood at Tk 436.98 billion in January-March period of this year, which was slightly down from Tk 437.53 billion recorded in the previous quarter (October-December of 2022).

According to the Cost of Funds Index (CoFI) released by the central bank, the weighted average cost of funds in July 2022 was 6.58 per cent, and it continued to rise, reaching 7.10 per cent in February 2023.

Talking to the FE, Managing Director and CEO of IPDC Finance Mominul Islam said the spread in the NBFIs continues narrowing down as their income is shrinking, which is not at all a good sign for the industry.

He, however, expected that things will improve a bit in the coming months as the BB sets a new interest rate mechanism.

About the bad loans, he said the situation is deteriorating alarmingly mainly because of a massive-scale of irregularities by some of the 8-10 NBFIs in recent times.

Simultaneously, the impact of the pandemic coupled with the ongoing volatility in global macroeconomic situation after the war in Ukraine that put an extra pressure on the entire European business also contributed to some extent to the rise in bad loans.

“There are, however, many good NBFIs which maintain good corporate governance in delivering policy and process-driven lending mechanisms. Yes, the rising trend in the NPLs is a reality, but it’s mainly because of poor governance by some institutions,” he added.

Speaking on condition of anonymity, a top executive of an NBFI said that banks are now offering deposit rates as high as 8.0 per cent, which has caused many institutional depositors to withdraw their funds and move to banks for higher gains.

To remain in business under the current context, many NBFIs have started offering higher rates than the ceiling, raising their cost of funds, he said.

“There is a maximum lending cap of 11.0 per cent imposed by the BB from July 2022. So, the spread kept shrinking, which is a matter of serious concern for the sector,” the executive added.

Managing Director and CEO of Strategic Finance & Investments Limited (SFIL) Irteza Ahmed Khan said the growing NPLs have contributed to the rise in cost of funds and it ultimately impacted the profitability.

He said the NBFIs are operating their businesses in an uneven competition with the banks in the market where there was no deposit ceiling for banks.

But there is a deposit ceiling of 7.0 per cent and lending rate cap of 11 per cent for the banks. Though some of the NBFIs crossed it to get deposits and stay alive in the market, it badly affected the spread, he added.

Appreciating the BB’s latest interest rate mechanism based on SMART (Six-Months Moving Average Rate of Treasury Bill), he said it would help solve the problem.

Moreover, 1.0 per cent annual supervision charge has been introduced for the CMSMEs, consumer finance and auto loan products, which will now increase the overall yields onwards, he added.

 

Source: The Financial Express

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Industry’s contribution to GDP up, employment down

Bangladesh’s industrial sector has failed to create proportional fresh employment during the last five years despite growth in its contribution to the gross domestic product (GDP), research findings show.

Employment in the sector fell by 3.4 per cent last year to 17 per cent which was 20.4 per cent in 2017 while its contribution to the country’s GDP went up to 36.9 per cent from 32.5 per cent during the period.

Employment has stagnated even in the higher-export-earning apparel sector, largely following automation and labour-saving technologies, as disclosed at a cutting-edge meet in Dhaka on Thursday where government and ILO representatives made their deliberations on such developments, among others.

In another reverse imbalance between growth and jobs, share of agriculture to the GDP fell to 11.6 per cent last year from 14.1 per cent in 2017 but employment share increased by 4.6-percentage points from 40.6 per cent in 2017 to 45.3 per cent in 2022.

On the other hand, urban employment also decreased, with the depression rate being higher for women as. Women employment decreased to 23.58 per cent from 31 per cent in 2017.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared the statistics at the technical dialogue jointly organized by the Ministry of Labour and Employment (MoLE) and the International Labour Organisation (ILO).

The dialogue on ‘National Employment Policy and Labour Market Employment Challenges in Bangladesh’ was organised to discuss the critical challenges arising from current labour-market trends in the country and to explore effective means of addressing those through the National Employment Policy (NEP) that was formulated last year.

“Employment in the Industrial sector fell absolutely by 0.35 million from 12.4 million to 12.05 million in 2022 while the average real GDP output of the industrial sector grew by more than 9.0 per cent per annum during the period,” Mr Razzaque said while presenting his keynote paper.

Citing example, he said the robust garment export is not reflected in the employment growth of the sector. Between 2008 and 2022, garment exports grew from $10 billion to about $43 billion but employment in the sector remained stagnant at around 3.5 million to 4 million.

“Automation and infusion of labour-saving technology is the reason for the stagnant employment in the manufacturing sector,” he told the meet, where the junior minister for the ministry and officials mentioned remedial measures.

Citing the provisional labour-force survey 2022, he said labour force had increased by 10 million between 2017 and 2022 while the number of unemployed gone down from 2.7 million to 2.6 million.

He emphasized mainly the appropriate implementation of the employment policy that needs to build the institutional capacity of the ministry of labour, focusing on the social protection of the workers in the informal economy, analyzing demand-supply gap of high-potential sectors for employment and counting underemployment as crucial as unemployment.

Meantime, the NEP aims to create 30 million additional jobs by 2030.

International labour markets are of critical significance as overseas opportunities are a major source of employment generation, the RAPID chairman said.

In this respect, he pointed out that less-skilled workers occupy the largest share of the country’s migrant workforce—with resultant lesser remittances the country receives.

Being one of the highest-remittance-recipient countries in the world, the earnings per migrant worker is considered too low for Bangladesh.

Speaking there, State Minister for Labour Begum Monnujan Sufian said her ministry together with other ministries and stakeholders would pursue evidence-based policy development and targeted interventions to create an enabling environment for decent employment opportunities aligned with the Employment Policy developed last year.

As part of its implementation the MoLE is also exploring the establishment of an Employment Directorate to coordinate the employment agenda, she noted.

Bangladesh country director of the ILO Tuomo said, “It is evident that jobs creation, social security, quality of employment and international trade are crucial to achieve the goals, but the National Employment Policy could be the pivotal tool to pushing employment agenda further in connection to achieve the country’s vision.”

He added: “Promoting the creation of full and productive employment has been an integral part of ILO’s work in Bangladesh. This is because decent jobs are not just any jobs but the basis for peace, social justice, social inclusion, economic development, and personal fulfillment.”

Dr Md Kawser Ahmed, Member (Secretary) of the General Economics Division (GED), said the government emphasized providing “industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants”.

He highlighted that addressing challenges in employment is one of the priority areas of government’s various plans.

“NEP implementation is the key to addressing labour-market challenges, promoting inclusion, and driving sustainable development. With targeted policies and interventions, we can effectively tackle unemployment, skills mismatch, and other pressing issues, ultimately improving livelihoods and fostering socioeconomic progress,” he noted.

Sharifa Khan, Secretary of the Economic Relations Division, stressed rearing skilled workers in the post-graduation time to maintain competitiveness.

She said, “LDC graduation brings forth labour market and employment consequences, highlighting the need for skilled workers and increased labour productivity to enhance competitiveness in exporting high-end products and services. This timely technical dialogue on the national employment policy aligns with the macroeconomic challenges of Bangladesh, providing valuable insights and solutions for the future.”

Dr. Shahnaz Arefin ndc, Secretary of the Statistics and Informatics Division, addressed the importance of labour-market intelligence and data in formulating and implementing employment policies.

“Labour-market intelligence and data play a crucial role in formulating and implementing effective employment policies. As Bangladesh strives to achieve SDGs by 2030 and graduate from LDC status by 2026, establishing a comprehensive labour market information system (LMIS) becomes imperative.

“This requires resource allocation, interagency coordination, private-sector engagement, and a robust monitoring system to support evidence-based decision-making and ensure the success of employment initiatives”.

Dr Sher Singh Verick, Chief of Employment, labour market and youth branch of the ILO, Dr. S.M. Zulfiqar Ali, Senior Research Fellow of Bangladesh Institute of Development Studies, Dr. Tasneem Arefa Siddiqui, Professor of Dhaka University, and Md. Ehsan-E-Elahi, Secretary of MoLE, also spoke at the event.

Bangladesh’s industrial sector has failed to create proportional fresh employment during the last five years despite growth in its contribution to the gross domestic product (GDP), research findings show.

Employment in the sector fell by 3.4 per cent last year to 17 per cent which was 20.4 per cent in 2017 while its contribution to the country’s GDP went up to 36.9 per cent from 32.5 per cent during the period.

Employment has stagnated even in the higher-export-earning apparel sector, largely following automation and labour-saving technologies, as disclosed at a cutting-edge meet in Dhaka on Thursday where government and ILO representatives made their deliberations on such developments, among others.

In another reverse imbalance between growth and jobs, share of agriculture to the GDP fell to 11.6 per cent last year from 14.1 per cent in 2017 but employment share increased by 4.6-percentage points from 40.6 per cent in 2017 to 45.3 per cent in 2022.

On the other hand, urban employment also decreased, with the depression rate being higher for women as. Women employment decreased to 23.58 per cent from 31 per cent in 2017.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared the statistics at the technical dialogue jointly organized by the Ministry of Labour and Employment (MoLE) and the International Labour Organisation (ILO).

The dialogue on ‘National Employment Policy and Labour Market Employment Challenges in Bangladesh’ was organised to discuss the critical challenges arising from current labour-market trends in the country and to explore effective means of addressing those through the National Employment Policy (NEP) that was formulated last year.

“Employment in the Industrial sector fell absolutely by 0.35 million from 12.4 million to 12.05 million in 2022 while the average real GDP output of the industrial sector grew by more than 9.0 per cent per annum during the period,” Mr Razzaque said while presenting his keynote paper.

Citing example, he said the robust garment export is not reflected in the employment growth of the sector. Between 2008 and 2022, garment exports grew from $10 billion to about $43 billion but employment in the sector remained stagnant at around 3.5 million to 4 million.

“Automation and infusion of labour-saving technology is the reason for the stagnant employment in the manufacturing sector,” he told the meet, where the junior minister for the ministry and officials mentioned remedial measures.

Citing the provisional labour-force survey 2022, he said labour force had increased by 10 million between 2017 and 2022 while the number of unemployed gone down from 2.7 million to 2.6 million.

He emphasized mainly the appropriate implementation of the employment policy that needs to build the institutional capacity of the ministry of labour, focusing on the social protection of the workers in the informal economy, analyzing demand-supply gap of high-potential sectors for employment and counting underemployment as crucial as unemployment.

Meantime, the NEP aims to create 30 million additional jobs by 2030.

International labour markets are of critical significance as overseas opportunities are a major source of employment generation, the RAPID chairman said.

In this respect, he pointed out that less-skilled workers occupy the largest share of the country’s migrant workforce—with resultant lesser remittances the country receives.

Being one of the highest-remittance-recipient countries in the world, the earnings per migrant worker is considered too low for Bangladesh.

Speaking there, State Minister for Labour Begum Monnujan Sufian said her ministry together with other ministries and stakeholders would pursue evidence-based policy development and targeted interventions to create an enabling environment for decent employment opportunities aligned with the Employment Policy developed last year.

As part of its implementation the MoLE is also exploring the establishment of an Employment Directorate to coordinate the employment agenda, she noted.

Bangladesh country director of the ILO Tuomo said, “It is evident that jobs creation, social security, quality of employment and international trade are crucial to achieve the goals, but the National Employment Policy could be the pivotal tool to pushing employment agenda further in connection to achieve the country’s vision.”

He added: “Promoting the creation of full and productive employment has been an integral part of ILO’s work in Bangladesh. This is because decent jobs are not just any jobs but the basis for peace, social justice, social inclusion, economic development, and personal fulfillment.”

Dr Md Kawser Ahmed, Member (Secretary) of the General Economics Division (GED), said the government emphasized providing “industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants”.

He highlighted that addressing challenges in employment is one of the priority areas of government’s various plans.

“NEP implementation is the key to addressing labour-market challenges, promoting inclusion, and driving sustainable development. With targeted policies and interventions, we can effectively tackle unemployment, skills mismatch, and other pressing issues, ultimately improving livelihoods and fostering socioeconomic progress,” he noted.

Sharifa Khan, Secretary of the Economic Relations Division, stressed rearing skilled workers in the post-graduation time to maintain competitiveness.

She said, “LDC graduation brings forth labour market and employment consequences, highlighting the need for skilled workers and increased labour productivity to enhance competitiveness in exporting high-end products and services. This timely technical dialogue on the national employment policy aligns with the macroeconomic challenges of Bangladesh, providing valuable insights and solutions for the future.”

Dr. Shahnaz Arefin ndc, Secretary of the Statistics and Informatics Division, addressed the importance of labour-market intelligence and data in formulating and implementing employment policies.

“Labour-market intelligence and data play a crucial role in formulating and implementing effective employment policies. As Bangladesh strives to achieve SDGs by 2030 and graduate from LDC status by 2026, establishing a comprehensive labour market information system (LMIS) becomes imperative.

“This requires resource allocation, interagency coordination, private-sector engagement, and a robust monitoring system to support evidence-based decision-making and ensure the success of employment initiatives”.

Dr Sher Singh Verick, Chief of Employment, labour market and youth branch of the ILO, Dr. S.M. Zulfiqar Ali, Senior Research Fellow of Bangladesh Institute of Development Studies, Dr. Tasneem Arefa Siddiqui, Professor of Dhaka University, and Md. Ehsan-E-Elahi, Secretary of MoLE, also spoke at the event.

Bangladesh’s industrial sector has failed to create proportional fresh employment during the last five years despite growth in its contribution to the gross domestic product (GDP), research findings show.

Employment in the sector fell by 3.4 per cent last year to 17 per cent which was 20.4 per cent in 2017 while its contribution to the country’s GDP went up to 36.9 per cent from 32.5 per cent during the period.

Employment has stagnated even in the higher-export-earning apparel sector, largely following automation and labour-saving technologies, as disclosed at a cutting-edge meet in Dhaka on Thursday where government and ILO representatives made their deliberations on such developments, among others.

In another reverse imbalance between growth and jobs, share of agriculture to the GDP fell to 11.6 per cent last year from 14.1 per cent in 2017 but employment share increased by 4.6-percentage points from 40.6 per cent in 2017 to 45.3 per cent in 2022.

On the other hand, urban employment also decreased, with the depression rate being higher for women as. Women employment decreased to 23.58 per cent from 31 per cent in 2017.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared the statistics at the technical dialogue jointly organized by the Ministry of Labour and Employment (MoLE) and the International Labour Organisation (ILO).

The dialogue on ‘National Employment Policy and Labour Market Employment Challenges in Bangladesh’ was organised to discuss the critical challenges arising from current labour-market trends in the country and to explore effective means of addressing those through the National Employment Policy (NEP) that was formulated last year.

“Employment in the Industrial sector fell absolutely by 0.35 million from 12.4 million to 12.05 million in 2022 while the average real GDP output of the industrial sector grew by more than 9.0 per cent per annum during the period,” Mr Razzaque said while presenting his keynote paper.

Citing example, he said the robust garment export is not reflected in the employment growth of the sector. Between 2008 and 2022, garment exports grew from $10 billion to about $43 billion but employment in the sector remained stagnant at around 3.5 million to 4 million.

“Automation and infusion of labour-saving technology is the reason for the stagnant employment in the manufacturing sector,” he told the meet, where the junior minister for the ministry and officials mentioned remedial measures.

Citing the provisional labour-force survey 2022, he said labour force had increased by 10 million between 2017 and 2022 while the number of unemployed gone down from 2.7 million to 2.6 million.

He emphasized mainly the appropriate implementation of the employment policy that needs to build the institutional capacity of the ministry of labour, focusing on the social protection of the workers in the informal economy, analyzing demand-supply gap of high-potential sectors for employment and counting underemployment as crucial as unemployment.

Meantime, the NEP aims to create 30 million additional jobs by 2030.

International labour markets are of critical significance as overseas opportunities are a major source of employment generation, the RAPID chairman said.

In this respect, he pointed out that less-skilled workers occupy the largest share of the country’s migrant workforce—with resultant lesser remittances the country receives.

Being one of the highest-remittance-recipient countries in the world, the earnings per migrant worker is considered too low for Bangladesh.

Speaking there, State Minister for Labour Begum Monnujan Sufian said her ministry together with other ministries and stakeholders would pursue evidence-based policy development and targeted interventions to create an enabling environment for decent employment opportunities aligned with the Employment Policy developed last year.

As part of its implementation the MoLE is also exploring the establishment of an Employment Directorate to coordinate the employment agenda, she noted.

Bangladesh country director of the ILO Tuomo said, “It is evident that jobs creation, social security, quality of employment and international trade are crucial to achieve the goals, but the National Employment Policy could be the pivotal tool to pushing employment agenda further in connection to achieve the country’s vision.”

He added: “Promoting the creation of full and productive employment has been an integral part of ILO’s work in Bangladesh. This is because decent jobs are not just any jobs but the basis for peace, social justice, social inclusion, economic development, and personal fulfillment.”

Dr Md Kawser Ahmed, Member (Secretary) of the General Economics Division (GED), said the government emphasized providing “industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants”.

He highlighted that addressing challenges in employment is one of the priority areas of government’s various plans.

“NEP implementation is the key to addressing labour-market challenges, promoting inclusion, and driving sustainable development. With targeted policies and interventions, we can effectively tackle unemployment, skills mismatch, and other pressing issues, ultimately improving livelihoods and fostering socioeconomic progress,” he noted.

Sharifa Khan, Secretary of the Economic Relations Division, stressed rearing skilled workers in the post-graduation time to maintain competitiveness.

She said, “LDC graduation brings forth labour market and employment consequences, highlighting the need for skilled workers and increased labour productivity to enhance competitiveness in exporting high-end products and services. This timely technical dialogue on the national employment policy aligns with the macroeconomic challenges of Bangladesh, providing valuable insights and solutions for the future.”

Dr. Shahnaz Arefin ndc, Secretary of the Statistics and Informatics Division, addressed the importance of labour-market intelligence and data in formulating and implementing employment policies.

“Labour-market intelligence and data play a crucial role in formulating and implementing effective employment policies. As Bangladesh strives to achieve SDGs by 2030 and graduate from LDC status by 2026, establishing a comprehensive labour market information system (LMIS) becomes imperative.

“This requires resource allocation, interagency coordination, private-sector engagement, and a robust monitoring system to support evidence-based decision-making and ensure the success of employment initiatives”.

Dr Sher Singh Verick, Chief of Employment, labour market and youth branch of the ILO, Dr. S.M. Zulfiqar Ali, Senior Research Fellow of Bangladesh Institute of Development Studies, Dr. Tasneem Arefa Siddiqui, Professor of Dhaka University, and Md. Ehsan-E-Elahi, Secretary of MoLE, also spoke at the event.

Bangladesh’s industrial sector has failed to create proportional fresh employment during the last five years despite growth in its contribution to the gross domestic product (GDP), research findings show.

Employment in the sector fell by 3.4 per cent last year to 17 per cent which was 20.4 per cent in 2017 while its contribution to the country’s GDP went up to 36.9 per cent from 32.5 per cent during the period.

Employment has stagnated even in the higher-export-earning apparel sector, largely following automation and labour-saving technologies, as disclosed at a cutting-edge meet in Dhaka on Thursday where government and ILO representatives made their deliberations on such developments, among others.

In another reverse imbalance between growth and jobs, share of agriculture to the GDP fell to 11.6 per cent last year from 14.1 per cent in 2017 but employment share increased by 4.6-percentage points from 40.6 per cent in 2017 to 45.3 per cent in 2022.

On the other hand, urban employment also decreased, with the depression rate being higher for women as. Women employment decreased to 23.58 per cent from 31 per cent in 2017.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared the statistics at the technical dialogue jointly organized by the Ministry of Labour and Employment (MoLE) and the International Labour Organisation (ILO).

The dialogue on ‘National Employment Policy and Labour Market Employment Challenges in Bangladesh’ was organised to discuss the critical challenges arising from current labour-market trends in the country and to explore effective means of addressing those through the National Employment Policy (NEP) that was formulated last year.

“Employment in the Industrial sector fell absolutely by 0.35 million from 12.4 million to 12.05 million in 2022 while the average real GDP output of the industrial sector grew by more than 9.0 per cent per annum during the period,” Mr Razzaque said while presenting his keynote paper.

Citing example, he said the robust garment export is not reflected in the employment growth of the sector. Between 2008 and 2022, garment exports grew from $10 billion to about $43 billion but employment in the sector remained stagnant at around 3.5 million to 4 million.

“Automation and infusion of labour-saving technology is the reason for the stagnant employment in the manufacturing sector,” he told the meet, where the junior minister for the ministry and officials mentioned remedial measures.

Citing the provisional labour-force survey 2022, he said labour force had increased by 10 million between 2017 and 2022 while the number of unemployed gone down from 2.7 million to 2.6 million.

He emphasized mainly the appropriate implementation of the employment policy that needs to build the institutional capacity of the ministry of labour, focusing on the social protection of the workers in the informal economy, analyzing demand-supply gap of high-potential sectors for employment and counting underemployment as crucial as unemployment.

Meantime, the NEP aims to create 30 million additional jobs by 2030.

International labour markets are of critical significance as overseas opportunities are a major source of employment generation, the RAPID chairman said.

In this respect, he pointed out that less-skilled workers occupy the largest share of the country’s migrant workforce—with resultant lesser remittances the country receives.

Being one of the highest-remittance-recipient countries in the world, the earnings per migrant worker is considered too low for Bangladesh.

Speaking there, State Minister for Labour Begum Monnujan Sufian said her ministry together with other ministries and stakeholders would pursue evidence-based policy development and targeted interventions to create an enabling environment for decent employment opportunities aligned with the Employment Policy developed last year.

As part of its implementation the MoLE is also exploring the establishment of an Employment Directorate to coordinate the employment agenda, she noted.

Bangladesh country director of the ILO Tuomo said, “It is evident that jobs creation, social security, quality of employment and international trade are crucial to achieve the goals, but the National Employment Policy could be the pivotal tool to pushing employment agenda further in connection to achieve the country’s vision.”

He added: “Promoting the creation of full and productive employment has been an integral part of ILO’s work in Bangladesh. This is because decent jobs are not just any jobs but the basis for peace, social justice, social inclusion, economic development, and personal fulfillment.”

Dr Md Kawser Ahmed, Member (Secretary) of the General Economics Division (GED), said the government emphasized providing “industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants”.

He highlighted that addressing challenges in employment is one of the priority areas of government’s various plans.

“NEP implementation is the key to addressing labour-market challenges, promoting inclusion, and driving sustainable development. With targeted policies and interventions, we can effectively tackle unemployment, skills mismatch, and other pressing issues, ultimately improving livelihoods and fostering socioeconomic progress,” he noted.

Sharifa Khan, Secretary of the Economic Relations Division, stressed rearing skilled workers in the post-graduation time to maintain competitiveness.

She said, “LDC graduation brings forth labour market and employment consequences, highlighting the need for skilled workers and increased labour productivity to enhance competitiveness in exporting high-end products and services. This timely technical dialogue on the national employment policy aligns with the macroeconomic challenges of Bangladesh, providing valuable insights and solutions for the future.”

Dr. Shahnaz Arefin ndc, Secretary of the Statistics and Informatics Division, addressed the importance of labour-market intelligence and data in formulating and implementing employment policies.

“Labour-market intelligence and data play a crucial role in formulating and implementing effective employment policies. As Bangladesh strives to achieve SDGs by 2030 and graduate from LDC status by 2026, establishing a comprehensive labour market information system (LMIS) becomes imperative.

“This requires resource allocation, interagency coordination, private-sector engagement, and a robust monitoring system to support evidence-based decision-making and ensure the success of employment initiatives”.

Dr Sher Singh Verick, Chief of Employment, labour market and youth branch of the ILO, Dr. S.M. Zulfiqar Ali, Senior Research Fellow of Bangladesh Institute of Development Studies, Dr. Tasneem Arefa Siddiqui, Professor of Dhaka University, and Md. Ehsan-E-Elahi, Secretary of MoLE, also spoke at the event.

Bangladesh’s industrial sector has failed to create proportional fresh employment during the last five years despite growth in its contribution to the gross domestic product (GDP), research findings show.

Employment in the sector fell by 3.4 per cent last year to 17 per cent which was 20.4 per cent in 2017 while its contribution to the country’s GDP went up to 36.9 per cent from 32.5 per cent during the period.

Employment has stagnated even in the higher-export-earning apparel sector, largely following automation and labour-saving technologies, as disclosed at a cutting-edge meet in Dhaka on Thursday where government and ILO representatives made their deliberations on such developments, among others.

In another reverse imbalance between growth and jobs, share of agriculture to the GDP fell to 11.6 per cent last year from 14.1 per cent in 2017 but employment share increased by 4.6-percentage points from 40.6 per cent in 2017 to 45.3 per cent in 2022.

On the other hand, urban employment also decreased, with the depression rate being higher for women as. Women employment decreased to 23.58 per cent from 31 per cent in 2017.

Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), shared the statistics at the technical dialogue jointly organized by the Ministry of Labour and Employment (MoLE) and the International Labour Organisation (ILO).

The dialogue on ‘National Employment Policy and Labour Market Employment Challenges in Bangladesh’ was organised to discuss the critical challenges arising from current labour-market trends in the country and to explore effective means of addressing those through the National Employment Policy (NEP) that was formulated last year.

“Employment in the Industrial sector fell absolutely by 0.35 million from 12.4 million to 12.05 million in 2022 while the average real GDP output of the industrial sector grew by more than 9.0 per cent per annum during the period,” Mr Razzaque said while presenting his keynote paper.

Citing example, he said the robust garment export is not reflected in the employment growth of the sector. Between 2008 and 2022, garment exports grew from $10 billion to about $43 billion but employment in the sector remained stagnant at around 3.5 million to 4 million.

“Automation and infusion of labour-saving technology is the reason for the stagnant employment in the manufacturing sector,” he told the meet, where the junior minister for the ministry and officials mentioned remedial measures.

Citing the provisional labour-force survey 2022, he said labour force had increased by 10 million between 2017 and 2022 while the number of unemployed gone down from 2.7 million to 2.6 million.

He emphasized mainly the appropriate implementation of the employment policy that needs to build the institutional capacity of the ministry of labour, focusing on the social protection of the workers in the informal economy, analyzing demand-supply gap of high-potential sectors for employment and counting underemployment as crucial as unemployment.

Meantime, the NEP aims to create 30 million additional jobs by 2030.

International labour markets are of critical significance as overseas opportunities are a major source of employment generation, the RAPID chairman said.

In this respect, he pointed out that less-skilled workers occupy the largest share of the country’s migrant workforce—with resultant lesser remittances the country receives.

Being one of the highest-remittance-recipient countries in the world, the earnings per migrant worker is considered too low for Bangladesh.

Speaking there, State Minister for Labour Begum Monnujan Sufian said her ministry together with other ministries and stakeholders would pursue evidence-based policy development and targeted interventions to create an enabling environment for decent employment opportunities aligned with the Employment Policy developed last year.

As part of its implementation the MoLE is also exploring the establishment of an Employment Directorate to coordinate the employment agenda, she noted.

Bangladesh country director of the ILO Tuomo said, “It is evident that jobs creation, social security, quality of employment and international trade are crucial to achieve the goals, but the National Employment Policy could be the pivotal tool to pushing employment agenda further in connection to achieve the country’s vision.”

He added: “Promoting the creation of full and productive employment has been an integral part of ILO’s work in Bangladesh. This is because decent jobs are not just any jobs but the basis for peace, social justice, social inclusion, economic development, and personal fulfillment.”

Dr Md Kawser Ahmed, Member (Secretary) of the General Economics Division (GED), said the government emphasized providing “industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants”.

He highlighted that addressing challenges in employment is one of the priority areas of government’s various plans.

“NEP implementation is the key to addressing labour-market challenges, promoting inclusion, and driving sustainable development. With targeted policies and interventions, we can effectively tackle unemployment, skills mismatch, and other pressing issues, ultimately improving livelihoods and fostering socioeconomic progress,” he noted.

Sharifa Khan, Secretary of the Economic Relations Division, stressed rearing skilled workers in the post-graduation time to maintain competitiveness.

She said, “LDC graduation brings forth labour market and employment consequences, highlighting the need for skilled workers and increased labour productivity to enhance competitiveness in exporting high-end products and services. This timely technical dialogue on the national employment policy aligns with the macroeconomic challenges of Bangladesh, providing valuable insights and solutions for the future.”

Dr. Shahnaz Arefin ndc, Secretary of the Statistics and Informatics Division, addressed the importance of labour-market intelligence and data in formulating and implementing employment policies.

“Labour-market intelligence and data play a crucial role in formulating and implementing effective employment policies. As Bangladesh strives to achieve SDGs by 2030 and graduate from LDC status by 2026, establishing a comprehensive labour market information system (LMIS) becomes imperative.

“This requires resource allocation, interagency coordination, private-sector engagement, and a robust monitoring system to support evidence-based decision-making and ensure the success of employment initiatives”.

Dr Sher Singh Verick, Chief of Employment, labour market and youth branch of the ILO, Dr. S.M. Zulfiqar Ali, Senior Research Fellow of Bangladesh Institute of Development Studies, Dr. Tasneem Arefa Siddiqui, Professor of Dhaka University, and Md. Ehsan-E-Elahi, Secretary of MoLE, also spoke at the event.

 

Source: The Financial Express

swiss-bank-1

Bangladeshi deposits in Swiss banks drop by 93.7pc

The amount of money, deposited by Bangladeshi citizens and banks with different banks in Switzerland, decreased significantly in 2022.

According to the annual report of the Swiss National Bank (SNB), Bangladeshis deposited 871.1 million Swiss francs in 2021. The amount was 55.3 million Swiss francs in 2022, a 93.7 per drop compared to the previous year.

The central bank of Switzerland published the report on Thursday. Analysts told local news outlets that the dollar crunch could be a reason behind a major slump in the size of deposits by Bangladeshis within a year.

Source: The Financial Express
uj

Bangladesh’s foreign debt rises to $82.85b

Economists say the fall in the private-sector component of the total debt and increase in the public debt amid decrease in foreign-exchange reserves, and export and remittance inflow, and increasing repayment could put the country into trouble in the medium term.
The repayment of the foreign debt has been on the rise year on year.  The government had to spend  $2.94 billion on debt servicing in the last fiscal year, 2021-22, in a rise from $2.62 billion in the previous fiscal for MLTs and other short-term loans of public entities.

They forewarn that if the global economic problem and Bangladesh’s dollar crisis lingered, Bangladesh would get in trouble in the near future with its repayment to the foreign lenders recurrently growing.

The foreign debt of the public sector (government) in the Q3 (July-March) of the outgoing fiscal had grown by $5.25 billion from last fiscal’s total at $63.52 billion, Economic Relations Division (ERD) provisional statistics showed.

Meanwhile, the private-sector debt as of March this fiscal decreased to $14.08 billion from $16.42 billion in the last calendar year, 2022, as per Bangladesh Bank (BB) data.

Out of the government’s $68.76 billion debt till last March, its outstanding medium- to long-term loans (MLTs) were recorded at $61.32 billion and the guaranteed debt was $7.92 billion, the official statistics showed.

An FE analysis has found that the private-sector credits taken from overseas lenders had started jumping since the calendar year 2021 due to higher borrowing by the country’s private-sector entities.

In the analysis it was found that the private sector’s outstanding debt swelled to $15.46 billion in the calendar year 2021 from $9.13 billion in the previous year, 2020.

Subsequently, the private debt had shown a rise as the figure was recorded at $16.42 billion in 2022. Then came a downturn—falling to $14.08 billion at the end of March 2023, the BB data showed.

Former World Bank’s lead economist Dr Zahid Hussain finds downstream risks of less foreign-fund flow into private sector, like economic contraction with its domino effect.

He notes that at a time when Bangladesh needs more foreign exchange, the private-sector credit is decreasing. “It means private-sector investments and production will be dropping and thus export will be affected. Then Bangladesh’s foreign- exchange reserves will further be under pressure and the repayments might be affected,” he told the FE.

On the other hand, the public- sector debt is increasing amid the failure of their utilisation and project implementation, resulting in a ballooning trend in the foreign-aid pipeline, he added.

“If we fail to utilise the project aid, our private-sector investment and production will ultimately be affected and once we may fail to repay those loans in time,” Dr Hussain says on a note of caution.

The former WB economist thinks the deferred payment against LCs, financial-sector instability, and drop in Bangladesh’s sovereign credit ratings have affected the inflow of private-sector loan from the overseas market.

Meanwhile, the government borrowing has been growing year on year as it finds out higher funds from the budgetary support to improve the foreign-exchange-reserve situation and from project aid for implementing larger and megaprojects.

Till previous FY2021, the public debts, including MLTs and the guaranteed ones, had been recorded at $60.15 billion, the ERD data showed.

The government debt rose to $63.52 billion at the end of last FY2022, and $68.76 billion till March this FY2023, the ERD provisional data showed.

A senior ERD official says the outstanding foreign loan will rise at the end of this FY2023 as three other budgetary supports worth some $1.0 billion might add up to the total debt of the government.

The Asian Development Bank (ADB) has recently disbursed $400 million worth of budgetary support while the Asian Infrastructure Investment Bank (AIIB) has confirmed another $400 million for funding budget deficit.

“The government is also waiting for signing on another nearly $250 million worth of budget-support credit with Japan within this month of June,” the ERD official adds.

Dr Zahid Hussain says the government’s foreign debt from the bilateral sector, including supplier credit, buyer credit, and other short-term loans could be problem for Bangladesh in the medium term.

The government should utilise the foreign loans to its best for getting the maximum returns which will cushion  the overall debt burden, he told the FE.

The foreign debt is likely to increase further in the next FY, 2023-24, as the government has set a higher Tk 2.62-trillion borrowing target for financing massive deficit national budget.

In the proposed national budget, the government has set a target to borrow Tk1.02 trillion ($9.50 billion) from the external sources.

The World Bank, ADB, Japan, AIIB, China and India are the major lenders to Bangladesh as the government usually borrows some $8.0 billion to $10 billion worth of funds from these financiers.

Source: The Financial Express

Untitled

ফ্ল্যাটে কালোটাকার সুযোগ বহাল

নতুন আয়কর আইনটি কয়েকটি সংশোধনসহ গতকাল সংসদে পাস হয়েছে। সেখানে কিছু এলাকায় ফ্ল্যাট কেনার ক্ষেত্রে কর বাড়ানো হয়েছে।

ফ্ল্যাট
ফ্ল্যাটপ্রতীকী ছবি

ফ্ল্যাটে কালোটাকা বা অপ্রদর্শিত অর্থ বিনিয়োগের সুযোগ থাকল। তবে জমি কেনায় সেই সুযোগ আর নেই। নতুন আয়কর আইনে ফ্ল্যাটে কালোটাকা বিনিয়োগের সুযোগটি রাখা হয়েছে। নতুন এ আইন গতকাল রোববার সংসদে পাস হয়েছে। সেখানে এ পরিবর্তন আনা হয়েছে।

নতুন আয়কর আইনে বলা হয়েছে, কোনো ব্যক্তি ফ্ল্যাট বা ভবন নির্মাণ বা ক্রয়ে কোনো অর্থ বিনিয়োগ করে ওই করবর্ষে নির্দিষ্ট হারে কর দিলে বিনিয়োগ করা অর্থের উৎস সম্পর্কে ব্যাখ্যা প্রদান করা হয়েছে বলে গণ্য হবে। তবে অপরাধমূলক কার্যক্রম কিংবা অবৈধ উৎস থেকে অর্জিত অপ্রদর্শিত অর্থ ফ্ল্যাটে বিনিয়োগের সুযোগ মিলবে না।

নতুন আয়কর আইনটি ১ জুলাই থেকে কার্যকর হবে। বড় কোনো পরিবর্তন ছাড়াই আইনটি গতকাল সংসদে পাস হয়েছে। আইনে বলা হয়েছে, কালোটাকায় ফ্ল্যাট কেনার ক্ষেত্রে করহার হবে প্রতি বর্গমিটারের হিসাবে। এ কারণে প্রতি বর্গমিটারের জন্য প্রস্তাবিত করহার কিছুটা পুনর্বিন্যাস করা হয়েছে। আয়কর আইনে সব মিলিয়ে ২৫টি অধ্যায়, ৩৪৫টি ধারা, ৮টি তফসিল আছে।

কোথায় বিনিয়োগে কত কর

রাজধানীর গুলশান, বনানী, বারিধারা, মতিঝিল ও দিলকুশায় ২০০ বর্গমিটারের (১ বর্গমিটারে ৯ বর্গফুট) কম আয়তনের ফ্ল্যাট ও বাণিজ্যিক ভবন কিনলে প্রতি বর্গমিটারে ৪ হাজার টাকা কর দিতে হবে। এ ক্ষেত্রে বিলটি সংসদে উত্থাপনের সময় যে কর প্রস্তাব করা হয়েছিল, সেটিই বহাল রাখা হয়েছে। তবে ফ্ল্যাটের আয়তন ২০০ বর্গমিটারের বেশি হলে সে ক্ষেত্রে দিতে হবে প্রতি বর্গমিটারে ৬ হাজার টাকা কর। যদিও প্রস্তাবে প্রতি বর্গমিটারে ৫ হাজার টাকা করের কথা বলা হয়েছিল।

একইভাবে ধানমন্ডি, ডিওএইচএস, মহাখালী, লালমাটিয়া, উত্তরা, বসুন্ধরা, ঢাকা ক্যান্টনমেন্ট, কারওয়ান বাজার, বিজয়নগর, সেগুনবাগিচা, নিকুঞ্জ; চট্টগ্রামের পাঁচলাইশ, খুলশী, আগ্রাবাদ, নাছিরাবাদ এলাকায় ফ্ল্যাট ও ভবন কেনার ক্ষেত্রে ২০০ বর্গমিটারের কম আয়তনের ক্ষেত্রে কর দিতে হবে প্রতি বর্গমিটারে ৩ হাজার টাকা। ২০০ বর্গমিটারের বেশি হলে সাড়ে ৩ হাজার টাকা। যদিও প্রস্তাবে প্রতি বর্গমিটারে ৫ হাজার টাকা করের সুপারিশ করা হয়েছিল।

উল্লেখিত এলাকাগুলো ছাড়া সিটি করপোরেশন এলাকার অন্যান্য জায়গায় ১২০ বর্গমিটারের কম আয়তনের ফ্ল্যাট ও ভবন কেনার ক্ষেত্রে প্রতি বর্গমিটারে কর দিতে হবে ৮০০ টাকা। ১২০ থেকে ২০০ বর্গমিটারের মধ্যে হলে প্রতি বর্গমিটারে দিতে হবে ১ হাজার টাকা ও ২০০ বর্গমিটারের বেশি হলে কর দিতে হবে প্রতি বর্গমিটারে দেড় হাজার টাকা। এ ক্ষেত্রে প্রস্তাবে যা ছিল, তা–ই রাখা হয়েছে।

নতুন আইন অনুযায়ী, জেলা সদরের পৌরসভা এলাকায় ফ্ল্যাট ও ভবন কিনতে ১২০ বর্গমিটারের কম আয়তনের ক্ষেত্রে প্রতি বর্গমিটারে ৩০০ টাকা, ১২০–২০০ বর্গমিটারের মধ্যে হলে ৫০০ টাকা এবং ২০০ বর্গমিটারের বেশি হলে ৮০০ টাকা করের বিধান করা হয়েছে।

এ ক্ষেত্রে ২০০ বর্গমিটারের বেশি ফ্ল্যাটের ক্ষেত্রে কর ১০০ টাকা বাড়ানো হয়েছে। এর বাইরের এলাকায় ১২০ বর্গমিটারের কম আয়তনের ফ্ল্যাট ও ভবনের ক্ষেত্রে প্রতি বর্গমিটারে ২০০ টাকা, ১২০ থেকে ২০০ বর্গমিটারের ক্ষেত্রে ৩০০ টাকা এবং ২০০ বর্গমিটারের বেশি হলে দিতে হবে ৫০০ টাকা কর। এ ক্ষেত্রেও প্রস্তাবিত করের পরিমাণে কোনো পরিবর্তন আনা হয়নি।

ফ্ল্যাট ছাড়াও কর দিয়ে কালোটাকায় বিনিয়োগের সুযোগ রাখা হয়েছে নতুন শিল্পকারখানা স্থাপনে। অর্থনৈতিক অঞ্চল ও হাইটেক পার্কে ১০ শতাংশ কর দিয়ে আগামী বছরের জুন পর্যন্ত বিদ্যমান সুযোগটিও অব্যাহত থাকবে।

এদিকে চিকিৎসা, হজসহ যেকোনো তীর্থযাত্রা ছাড়া ব্যক্তিগত ভ্রমণে বিদেশে গেলে সম্পদের বিবরণী দাখিলের যে বাধ্যবাধকতা সংসদে উত্থাপিত আয়কর বিলে রাখা হয়েছিল, আইনটি পাসের সময় তা বাদ দেওয়া হয়েছে। এ ছাড়া ব্যাংকে ১০ লাখ টাকার বেশি মেয়াদি আমানত থাকলেই কেবল রিটার্ন জমার রসিদ বাধ্যতামূলক করা হয়েছে। আগে নিয়ম ছিল ব্যাংক হিসাবে ১০ লাখ টাকার বেশি থাকলেই রিটার্ন জমা বাধ্যতামূলক।

এবার অবশ্য ৪৩টি সরকারি–বেসরকারি সেবা নিতে রিটার্ন জমা বাধ্যতামূলক করার পাশাপাশি ন্যূনতম ২ হাজার টাকা কর দেওয়ার প্রস্তাব করা হয়েছে বাজেটে। জাতীয় রাজস্ব বোর্ড (এনবিআর) সূত্রে জানা গেছে, ন্যূনতম কর দেওয়ার বিধানটি অর্থবিল পাসের সময় প্রত্যাহার করা হতে পারে।

সূত্রঃ প্রথম আলো

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Himadri decides to increase authorised capital by 25-time

Himadri Limited, a listed firm on the SME platform, finally decided to increase its authorised capital by 25 times after the company’s stock price soared 969 per cent in the past three months.

The SME firm, which operates six potato cold storage facilities in northern Bangladesh, has decided to increase its authorised capital to Tk 500 million from the existing Tk 20 million.

The company called an extraordinary general meeting on August 1 this year for shareholders’ approval. The record date is July 10, according to a regulatory filing with the Dhaka Stock Exchange on Monday.

Market operators said the company has decided to increase the authorised share capital before issuing new equity shares and increasing the paid-up capital as the number of shares is very low, which influences its stock price.

Currently, Himdari’s total number of shares is only 0.75 million, while more than 98 per cent are held by sponsor-directors.

Meanwhile, the little-known SME stock skyrocketed 969 per cent in just three months to Tk 377.30 on Monday, becoming the second most expensive stock on the platform.

Its stock price rise began after it got listed on the Chittagong Stock Exchange (CSE) in April this year. At the time, the stock price was Tk 35.30.

The abnormal price surge of Himadri has raised suspicion among market analysts of stock price manipulation as the number of shares in the company is very low.

The price surge also prompted the DSE to serve a show-cause notice asking the company if there was any reason behind the unexpected rally.

The company came up with a knee-jerk response, saying there was no such information, except that three directors sold a small number of their shares of the company through the CSE.

Himadri was one of the six companies to join the SME board on September 30, 2021, having transferred from the over-the-counter (OTC) market. Currently, 16 companies are listed on the platform.

Meanwhile, the company’s net profit increased 68 per cent year-on-year to Tk 37.95 million in July–December 2022.

Incorporated in 1974, it operates potato cold storage facilities in Rangpur, Bagura, Joypurhat, Thakurgaon, Gaibandha, and Dinajpur.

Share trading on the SME platform started on September 30 last year, creating an opportunity for small and medium enterprises (SMEs) with paid-up capital between Tk 30 million and Tk 50 million to raise capital from the primary market.

Source: The Financial Express

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Stocks rise despite contractionary monetary policy

Tallu Spinning Mills’ quarterly loss

The key indexes of the Dhaka and Chittagong stock exchanges rose yesterday despite the central bank unveiling a contractionary monetary policy a day earlier and scrapping the interest rate cap on loans.

The DSEX, the benchmark index of the Dhaka and Stock Exchange, rose 33 points, or 0.52 per cent, to 6,314.

The DS30, which represents blue-chip stocks, increased 0.24 per cent to 2,188 points while the DSES, an index comprised of shariah-compliant companies, edged up 0.47 per cent to 1,369 points.

Md Moniruzzaman, managing director of Prime Bank Securities, said the impact of the monetary policy would be little on the stock market as investors knew about the central bank move on the Six-months Moving Average Rate of Treasury bills (SMART), which will be used to fix the lending rate from the coming fiscal year.

The central bank rolled out the monetary statement policy for the first half of the next fiscal year, raising the rate at which cash-strapped banks take short-term loans by 50 basis points to 6.50 per cent.

The BB also increased the rate at which banks keep funds at the BB — known as the reverse repo—by 25 basis points to 4.50 per cent.

It also scrapped the 9 per cent interest rate ceiling on loans introduced in April of 2020.

The hike in the policy rate and the withdrawal of the cap is expected to elevate the borrowing costs for financial institutions, which will subsequently influence interest rates across the economy, said the central bank.

“This adjustment will make it more expensive for businesses and individuals to access funds for investments and consumption.”

The central bank will allow banks to add a maximum of 3 per cent. Currently, the interest rate of the six-month T-bill is 7.10 per cent. This means the interest rate on loans will be a maximum of 10.10 per cent.

“As the interest rate will go up by around 1 percentage point, it would not be a big deal,” said Moniruzzaman, adding that some listed companies that have kept funds with banks will benefit from the new interest rate setting.

Turnover, a key indicator of the DSE, surged 27 per cent to Tk 533 crore.

Of the securities traded, 146 advanced, 29 declined and 180 did not show any price movement.

Among the top gainers, the life insurance sector rose 4.9 per cent, the general insurance sector advanced 4.4 per cent and the cement sector increased 2.1 per cent. The jute sector shed 0.3 per cent.

Investors’ attention was mostly centred on the life insurance, pharmaceuticals and food sectors.

Meghna Insurance posted the highest gain with an increase of 9.97 per cent. Crystal Insurance, Progressive Life Insurance, Trust Islami Life Insurance, and Prime Islami Life Insurance were among the top gainers as well.

Khulna Printing & Packaging was the biggest loser, shedding 4.72 per cent.

Apex Tannery, Midland Bank, Khan Brothers PP Woven Bag Industries, and Metro Spinning were also on the list of significant losers.

Meghna Life Insurance was the most traded stock with issues worth Tk 28 crore transacted. Navana Pharmaceuticals, Sonali Life Insurance, Rupali Life Insurance, and City General Insurance also saw significant turnover.

The Caspi, the all-share price index of the Chittagong Stock Exchange, added 80 points, or 0.43 per cent, to close at 18,635 points.

Of the issues traded, 99 rose, 20 retreated and 99 did not see any price swing. Turnover of the port city bourse slipped 5 per cent to Tk 12.9 crore.

Source: The Daily Star