Economic ties between Bangladesh and India are far below potential, said a World Bank study.

Greater access to each other's markets, improvements in physical connectivity and transit, and energy trade between the countries can help unlock this trade potential, according to the report released in New Delhi on Monday.

The study -- unlocking Bangladesh-India trade: emerging potential and the way forward -- said greater engagement in these areas can also stimulate employment and other economic and social activities.

A wider integration will also help reduce poverty, particularly in the border areas, enhance foreign direct investment flows, and generate new business opportunities for the private sector, it said.

“Today, South Asia is one of the least integrated regions in the world. Greater bilateral economic cooperation between India and Bangladesh can serve as a critical step for an integrated South Asia,” said Isabel Guerrero, the World Bank's vice president for the South Asia region.

India is one of Bangladesh's primary trading partners. While Bangladesh has a high trade deficit -- more than $3.5 billion -- with India, its imports from Bangladesh have grown more than sevenfold between fiscal 2001 and fiscal 2012 to reach around $500 million. India's exports to Bangladesh rose fourfold to $4 billion.

Bangladesh accounts for less than 1 percent of India's total imports with a small range of items, mostly fertilisers and jute products. Though readymade garments constitute Bangladesh's major global export, their share in exports to India is very small.

Simulations in the World Bank study indicate that a bilateral free trade agreement between the two countries could increase Bangladesh's exports to India by 182 percent, and that of India to Bangladesh by 126 percent.

“For India, closer economic cooperation with Bangladesh can be an important stepping-stone to reduce the economic isolation of its northeastern states,” said the report.

To realise this potential, both the countries need to further liberalise trade, reduce tariffs (largely in the case of imports into Bangladesh), reduce and remove non-tariff barriers, and cut trade costs by improving trade facilitation both at borders and inland, according to the study.

The study suggested the two countries should go beyond trade in goods to deepen cooperation and improve Bangladesh's export capability.

“To enable larger gains, Bangladesh-India cooperation should go beyond goods trade and include investment, finance, services trade, trade facilitation, and technology transfer. This will be a building block toward the larger goal of enhanced regional cooperation,” said Sanjay Kathuria, one of the authors of the study and lead economist, regional integration, South Asia region.

The study observed that foreign direct investment would also help grow bilateral trade between India and Bangladesh. Inflow of direct investment from India would stimulate Bangladesh's exports, facilitate technology transfer, and generate employment.

"Both the governments need to facilitate trade by improving infrastructure at border trading posts, harmonising trade-related documentation, and minimising the restrictive element of non-tariff measures," Kathuria said.

"With the general decline in tariff barriers, addressing such costs of trading becomes paramount to ensure continued growth of trade that could, in turn, be a major force in poverty reduction, especially in border areas."

News: The Daily Star/Bangladesh/20th-Dec-12

Finance Minister AMA Muhith yesterday asked Bangladesh Bureau of Statistics to produce data in a way that is acceptable to all as figures from various sources create confusion.

Bangladesh faces troubles when different state-run agencies come up with different statistics, which is a real concern for planning process, he said.

The minister spoke at a workshop on "National strategy for the development of statistics (NSDS)” at the BBS auditorium in Dhaka.

In recent years, the agriculture and the food ministries were at loggerheads when the former boasted that the country was self-sufficient in food production, and while the latter floated plans for rice imports.

In July, the BBS revised the population upwards to 15.25 crore, but four months later it put the number at 14.80 crore.

Muhith also asked the BBS to work with the International Monetary Fund and the World Bank to improve the calculation of purchasing power parity (PPP) income as he termed the figures for Bangladesh as worthless and way out of the edge.

According to Muhith, there is something wrong with the PPP standards that have been applied for Bangladesh calculating the standards of living.

Bangladesh needs to have an NSDS because the government's Sixth Five Year Plan stresses the importance of focusing on results, for which a robust statistical system is a key requirement, said Ellen A Goldstein, country director of World Bank.

"The need for a strong statistical system is recognised internationally as an essential part of the results agenda, both to facilitate the design of interventions needed to achieve the desired results, as well as to track progress in different sectors and, where needed, make appropriate adjustments in the strategy."

Goldstein said the implementation of the NSDS would require a compatible legal framework in the governing of the statistical production, developing organisational structures and coordination mechanisms, and mobilising financial resources at all levels.

She also called for proper coordination and avoidance of duplication to ensure cost-effective implementation of the NSDS, as it is important to streamline the various statistical data collection efforts currently underway in Bangladesh and coordination among different agencies.

The WB official also said when implementing the NSDS, it will be important to keep in mind that the country's statistical system should serve the needs not just of government, but also of other stakeholders like the private sector, academia, researchers, and civil society groups.

The World Bank has been supporting the BBS since 2006 to prepare the NSDS through a broad consultative and inclusive process involving numerous stakeholders.

Graham Eele, international consultant for the project, said the value of NSDS would depend on how all recommendations are put into place.

He said the budget would be a main issue for implementing the strategy, as execution of the decade-long plan from 2013 to 2023 would require an investment of Tk 4,705 crore.

Md Nojibur Rahman, acting secretary of the planning ministry; Golam Mostafa Kamal, BBS director general, and Md Dilder Hossain, project director of the NSDS, also spoke.

News: The Daily Star/Bangladesh/20th-Dec-12

The Bangladesh Bank board has strictly advised the governor not to give his consent to any incompetent person for directorship at any state bank.

The suggestion came yesterday as the BB is in the process of filling the posts of 26 directors at three such banks that have remained vacant for more than three months now.

BB Director Sadiq Ahmed said the central bank's board members have told the authorities to properly examine the list of the persons proposed for the directorial positions.

“We have a strong opinion that in no way an inefficient person gets the central bank's consent and passes the 'fit and proper' criteria of the BB,” Ahmed said.

Last Monday, the finance ministry sent a partial list to the central bank of the candidates it is considering for the directorial posts at the banks, which the BB is now going over.

An official of the finance ministry said some political persons have been placed on the partial list sent to the BB.

At yesterday's meeting, the BB board members discussed the role of the directors of the state banks and said some board members of the banks were allegedly involved in the recent scams. The BB authorities were told to be alert so that no such wrong person gets to become a director.

In this regard, another BB official said the present 'fit and proper' criterion was antiquated and some articles were so loosely-defined that the BB has very little scope to hold back the political personalities from assuming the directorial posts at the banks.

Meanwhile, the IMF mission that visited Dhaka recently has also advised the government to ensure that the directors of the banks satisfactorily pass the central bank's fit and proper measure. The IMF mission raised the issue in the backdrop of the irregularities unearthed recently.

News: The Daily Star/Bangladesh/20th-Dec-12

The World Bank (WB) said Tuesday, it will give its decision on financing of the Padma Bridge project on the basis of assessment of the First Information Report (FIR), filed by the Anti-Corruption Commission (ACC) Monday, by its external panel of experts.

The WB statement came as Finance Minister AMA Muhith said on the same day that the government was looking forward to a positive response from the WB on the issue of its funding of the project as the ACC has taken action against seven suspects.

"Decisions by the WB regarding future project financing and implementation would depend on the outcome of the External Panel's assessment," WB Country Director in Bangladesh Ellen Goldstein said in a statement a day after the filing of the case against seven suspects in connection with Padma Bridge graft conspiracy.

Ms Ellen Goldstein further said: "The External Panel of internationally-recognized anti-corruption experts will issue a report assessing the adequacy of the Anti-Corruption Commission's investigation once they have an opportunity to fully review and discuss the FIR."

The ACC Monday filed the case for graft conspiracy in the process of appointing a Canadian consulting firm --SNC Lavalin --for Padma Bridge construction supervision works.

Before filing the case, an ACC inquiry team found nine persons involved in the alleged corruption and recommended to its headquarters to file the case against them.

The ACC, however, dropped the names of former communications minister Syed Abul Hossain and former state minister for foreign affairs Abul Hasan Chowdhury from the list of suspects and filed a case with the Banani Police Station against seven persons Monday.

ACC, however, said it has not exonerated the two former ministers from the charge as their names remained on the FIR as graft suspects. Since no substantial documents were found against the duo, the ACC will further investigate their links.

Muhith said: "We hope to get a clear position from the WB on the matter (Padma bridge). I would have something to say about the issue after getting its response, if any".

The finance minister was talking to reporters on the sideline of a function marking the World Migrants Day 2012 at the Bangabandhu International Conference Center in the city.

News: The Daily Financial Express/Bangladesh/19th-Dec-12

Azharul Islam, Chairman of Uttara Bank, presides over a meeting at the bank’s head office in Dhaka recently.

Uttara Bank Limited organised a budget conference for the officials of the bank at the bank’s head office in Dhaka recently.

Azharul Islam, Chairman of the board of directors of Uttara Bank, presided over the conference, said a press release. Shaikh Abdul Aziz, Managing Director and CEO of the bank, spoke at the meeting.

MA Matin, Additional Managing Director, Abu Ahmed, Md Fazlur Rahman and Sabera Aktari Jamal, Deputy Managing Directors and other high officials of the bank attended the function.

News: The Daily Sun/Bangladesh/19th-Dec-12