The economy of the country posted 5.8 per cent real GDP growth during the last fiscal (2009-10), which was largely internal-demand driven. In view of the internal and external sector developments, the 6.7 per cent real GDP growth targeted in the national budget of current fiscal is well within reach, according to the highlights of Bangladesh Bank annual report 2009-10.
In its near and medium term outlook for the current fiscal, the report said that the main near term risk is the persistent shortages of power and gas supplies, disrupting production in installed capacities and slowing down investments for new capacities.
It said that near and medium term growth prospects for the economy now hinge crucially on implementation of the government’s plan to eliminate energy shortages by adding as fast as possible new generation capacities with private and public sector
outlays.
“Significant external sector risk factors to medium term growth outlook include the recent declining trends in FDI and manpower exports.”
“Foreign direct investment inflows are likely to pick up in step with global growth recovery, but can be hastened by forging closer trade and investment ties with the fast growing economies in the East and South Asia, bilaterally as well as regionally.”
On the supply side for fiscal 2009-10, the report mentioned that the growth was underpinned by overall robust growth in the agriculture and service sectors accompanied by a modest growth in the industry sector.
It showed that the agriculture sector grew by 4.7 per cent during the last fiscal compared to 4.1 per cent in the previous fiscal (2008-09).  The growth rates for the industry and services sector were 6.0 and 6.4 per cent respectively in fiscal 2009-10 while 6.5 and 6.3 per cent respectively in fiscal 2008-09.
The Bangladesh economy maintained growth momentum despite deceleration in the export growth and investment initiatives, continuing with its resilient response to the global economic slowdown.
According to the report, the 12-month average Consumer Price Index (CPI) inflation rate increased to 7.3 per cent at the end of 2009-10 fiscal compared to 6.7 per cent at the end of fiscal 2008-09.
On the other hand, point-to-point CPI inflation rate stood at 8.7 per cent at the end of 2009-10 fiscal, which was 2.3 per cent at the end of fiscal  2008-09.
The 12-month average CPI food inflation rate rose to 8.5 per cent at the end of fiscal 2009-10 compared to 7.2 per cent at the end of fiscal 2008-09. Non-food inflation rate fell to 5.5 per cent at the end of fiscal 2009-10 as against 5.9 per cent at the end of 2008-09.
Money and credit developments:
The Bangladesh Bank pursued accommodative monetary policy stance during the fiscal 2009-10 with a view to promoting investment and productive economic activities and sustaining domestic demand against the backdrop of the global recession.
The broad money (M2) growth during the 2009-10 fiscal was 22.4 per cent, which was 19.2 per cent in the preceding fiscal.
The credit to the public sector declined sharply by 5.2 per cent during the 2009-10 fiscal compared to 20.3 per cent growth in the fiscal 2008-09. Reduced Annual Development Programme (ADP), higher revenue receipts and foreign grants and loans were mainly responsible for the fall in the credit to the public sector. 

News: The Independent/ Bangladesh/ jan-27-2011

The economy of the country posted 5.8 per cent real GDP growth during the last fiscal (2009-10), which was largely internal-demand driven. In view of the internal and external sector developments, the 6.7 per cent real GDP growth targeted in the national budget of current fiscal is well within reach, according to the highlights of Bangladesh Bank annual report 2009-10.
In its near and medium term outlook for the current fiscal, the report said that the main near term risk is the persistent shortages of power and gas supplies, disrupting production in installed capacities and slowing down investments for new capacities.
It said that near and medium term growth prospects for the economy now hinge crucially on implementation of the government’s plan to eliminate energy shortages by adding as fast as possible new generation capacities with private and public sector
outlays.
“Significant external sector risk factors to medium term growth outlook include the recent declining trends in FDI and manpower exports.”
“Foreign direct investment inflows are likely to pick up in step with global growth recovery, but can be hastened by forging closer trade and investment ties with the fast growing economies in the East and South Asia, bilaterally as well as regionally.”
On the supply side for fiscal 2009-10, the report mentioned that the growth was underpinned by overall robust growth in the agriculture and service sectors accompanied by a modest growth in the industry sector.
It showed that the agriculture sector grew by 4.7 per cent during the last fiscal compared to 4.1 per cent in the previous fiscal (2008-09).  The growth rates for the industry and services sector were 6.0 and 6.4 per cent respectively in fiscal 2009-10 while 6.5 and 6.3 per cent respectively in fiscal 2008-09.
The Bangladesh economy maintained growth momentum despite deceleration in the export growth and investment initiatives, continuing with its resilient response to the global economic slowdown.
According to the report, the 12-month average Consumer Price Index (CPI) inflation rate increased to 7.3 per cent at the end of 2009-10 fiscal compared to 6.7 per cent at the end of fiscal 2008-09.
On the other hand, point-to-point CPI inflation rate stood at 8.7 per cent at the end of 2009-10 fiscal, which was 2.3 per cent at the end of fiscal  2008-09.
The 12-month average CPI food inflation rate rose to 8.5 per cent at the end of fiscal 2009-10 compared to 7.2 per cent at the end of fiscal 2008-09. Non-food inflation rate fell to 5.5 per cent at the end of fiscal 2009-10 as against 5.9 per cent at the end of 2008-09.
Money and credit developments:
The Bangladesh Bank pursued accommodative monetary policy stance during the fiscal 2009-10 with a view to promoting investment and productive economic activities and sustaining domestic demand against the backdrop of the global recession.
The broad money (M2) growth during the 2009-10 fiscal was 22.4 per cent, which was 19.2 per cent in the preceding fiscal.
The credit to the public sector declined sharply by 5.2 per cent during the 2009-10 fiscal compared to 20.3 per cent growth in the fiscal 2008-09. Reduced Annual Development Programme (ADP), higher revenue receipts and foreign grants and loans were mainly responsible for the fall in the credit to the public sector.

News: The Daily Star/ Bangladesh/ jan-26-2011

Anayetur Rahaman

The Bangladesh Bank (BB) has decided to pay subsidy to the State-owned Commercial Banks (SCBs) who disburse loan to salt farmers at reduced interest rate, a central official said.

The interest rate has been set at 4 percent which previously hovered around 10 to 13 percent for the share croppers, small and marginal salt farmers.

The central bank issued a circular yesterday regarding loan disbursement at reduced rate to help boost salt cultivation in the coastal region of the country.

According to the circular, the Bangladesh Krishi Bank, Sonali Bank Ltd, Janata Bank Ltd, Agrani bank Ltd and Rupali bank Ltd can disburse loan to a salt farmer up to Tk 44,000 for per acre of land.

The loan expenditure heads include purchase of polythene Tk 10,000, drawing water Tk 5,000, labour cost Tk 5,000, land rent Tk 21,000 (maximum) and construction of earth protection with others Tk 3,000.

The loan disbursement begins from the month of December and continues till May of next year, as directed in the circular.

The circular also directed the banks to recover loans within 12 months of disbursement and to submit their interest loss subsidy demands by one month of loan recovery.

As per the BSCIC records, 43,460 farmers were involved in salt cultivating on 67,751 acres of land mainly in Cox’s Bazar with some parts of Chittagong and Satkhira in fiscal year 2009-2010. But the farmers experienced huge loss in last fiscal as the price of per kg salt reduced to Tk 1 while production cost is over Tk 3. The farmers produced 1.71 million tonnes of salt against the target of 1.35 million tonnes in last fiscal.

News: Daily Sun / Bangladesh/ jan-27-2011

The Securities and Exchange Commission has withdrawn the trade suspension on NCC Bank.

According to a message posted on the web of the Dhaka Stock Exchange (DSE), the capital market regulator on Wednesday decided to lift the 30-day suspension order on the activities of its merchant banking section.



On Jan 20, the SEC halted the activities of six brokerage houses, including that of the NCC, for one month as they passed aggressive sales orders, resulting in 600-point fall in the key market index of the DSE on the day.

The SEC has also formed a probe committee to investigate the actions of the six brokerage houses about the aggressive selling on Jan 20.

The other brokerage houses are PFI Securities Limited, Alliance Securities & Management Limited, IIDFC Securities Limited, and merchant banks of Al-Arafah Islami Bank Limited and Dhaka Bank Limited.

News: The Independent/ Bangladesh/ jan-26-2011

The Board of Directors of Pubali Bank Ltd hosted a reception party at Chittagong Club recently for distinguished business personnel of the port city.

Hafiz Ahmed Mazumder MP, Chairman and board of directors of the bank was present at the function, said a press release.

Vice-Chairman and Director of PBL Habibur Rahman, Directors of PBL Moniruddin Ahmed, Sk. Wahidur Rahman, Syed Moazzem Hussain, Ahmed Shafi Choudhury, Fahim Ahmed Faruk Chowdhury, Muhammed Kabiruzzaman Yaqub, Mustafa Shahriar Ahmed and Managing Director of Pubali Bank Helal Ahmed Chowdhury were also present on the occasion.

In his speech, Hafiz Ahmed Mazumder said Pubali Bank organised the function for its business expansion and to encourage all the customers and the people associated with the bank.

Referring to skilled management, deposit reserve and sufficient foreign exchange reserve, he reiterated that PBL can render foreign remittance business to their clients. He urged all customers to extend business through the service of Pubali bank.

Senior Vice President of Chittagong Chamber and Commerce Industries Mahbubul Alam Talukder, Share Holder Kazi Fazlur Rahman, Chairman of BSRM Group Ali Hossain Akbar Ali, Managing Director of GPH Group Md Jahangir Alam, Propritor of Gangchil and Rangdhonu Feeling Station Mrs Rasheda Akter also spoke at the function.

News: Daily Sun