LPG price policy falls apart, people paying more

Energy Division had initiated a move three years ago to formulate a LPG pricing policy to keep exorbitant price at bay. 

However, the effort remained futile for undue influences by vested interest groups, reports UNB. 

Amid such a policy vacuum, each LPG bottle (12.5 kg) is now being sold in the local market at Tk 1100-1200 whereas, a committee of the government's Energy Division had calculated that no way the price should cross Tk 730. 

Three years back Energy Division moved to formulate the LPG pricing policy at government's dictate as the latter was trying to promote LPG as cooking gas as a replacement of piped natural gas, distributed by the state-owned Titas and other gas companies in Dhaka and elsewhere. 

Identifying high market price of LPG as a barrier for its promotion as alternate cooking gas, Energy Division held stakeholders' meeting with the participations of the LPG marketing companies belonging to both private and public sectors. 

Taking their opinion into consideration, Energy Division formed a committee to draft a formula to fix the LPG price at the retail market. 

The committee, headed by the then additional secretary Kazi Zebunnesa Begum, found that after meeting all expenses a 12.5 kg LPG bottle should not be sold at above Tk 703 and no private company should sell that at price more than Tk 730 in retail. 

The committee, comprising of representations from both public and private sectors, made a recommendation to introduce labelling of maximum retail price (MRP) on the surface of LPG bottle and make it mandatory for traders to sell it at the fixed price. 

Big players blocked the move

"But some big players in the LPG sector blocked the move by their influence on the political level", said a senior official at the Energy Division preferring anonymity. 

Introducing a permanent formula to fix the price was also a vital recommendation of the committee. "But the recommendation could not be implemented due to opposition from some major companies," he told UNB.

A good number of companies, including two from public sector, are operating in the LPG business in the country. The major private operators are Omera, Bashundhara, Beximco, Total Gaz, Klean Heat, Jamuna, Orion, Bin Habib, Super Gas (TK Gas). 

Disagreeing with the concept of LPG price fixing, Jakaria Jalal, general manager (strategic planning), of Bashundhara LPG, said it will be unrealistic to fix the LPG price for retail market as the price of the product is linked with the oil price in global market where it fluctuates all the time. 

He rather put the onus on some unfavourable policies pursued by government that pushed the LPG prices up. As examples, he cited high license fee of Bangladesh Energy Regulatory Commission (BERC) and limitation in import of over 3,000 MT LPG vessel. 

Energy Division Additional Secretary Muhammed Ahsanul Jabbar, now in-charge of LPG related affairs, admitted about the inordinate delay in finalising the LPG price policy. "We're working on it and the retail pricing formula will be in place within next six months," said the official. 

Contacted State Minister for Power and Energy Nasrul Hamid expressed his frustration over the delay. "I'm not happy with overall performance of Energy Division as it achieved only nine per cent in ADP implementation", he told UNB. 

Industry insiders noted that in spite of high price, LPG market is growing gradually in Bangladesh. In 2016, total LPG market in Bangladesh was around 400,000 MT and the demand is shot up to over 500,000 MT in a year’s time.

• Courtesy: The Financial express Jan 19, 2018

Bangladesh slips one step on visa-free travel rights

Stands even behind war-torn S Sudan in Henley & Partners index based on worth of passports

FE Report

Bangladesh slips one step down in a latest global passport index, now standing even behind war-torn South Sudan in ensuring their citizens' visa-free foreign travels.

Bangladeshi passport is now in 96th position in the world in terms of visa-free access its holders can enjoy, down from the 95th it secured last year as per the ratings done by Henley & Partners.

The country has also suffered the largest individual decline of any nations, dropping 23 ranks on the index since 2008.

Of the 199 countries featured in the index, only 10 countries got the ranking as having less visa-free access around the world than Bangladesh's while at least 185 having more visa-free access than Bangladesh's rating.

The index also shows that even relatively isolated countries like North Korea or war-ravaged ones like South Sudan enjoy more visa-free access in the world than Bangladesh does.

As per the findings, the number of countries where Bangladeshi passport-holders can enjoy visa-free access remained unchanged as 38 since last year.

However, a number of countries like Sri Lanka and South Sudan which were equal or behind Bangladesh in the index just a year ago now apparently offer more freedom of movement than Bangladeshi passports.

Comparative annual data from the index show that the number of countries Bangladeshis can travel sans visa stood at 28 back in 2006.

Although the number rose to a high of 42 countries back in 2010 and again in 2014, it had witnessed a steady decline in recent years.

During the same period (2006 to 2018), India's visa-free access has risen from 25 to 49 while for Sri Lanka, it increased from 22 to 41.

Even people of a tiny landlocked country like Bhutan do have much more freedom of flying to foreign countries than those of Bangladesh.

Published since 2005, The Henley Passport Index does the ranking of all the passports of the world according to the number of countries their holders can travel to visa-free.

The rankings are based on exclusive data from the International Air Transport Association (IATA), which maintains world's largest and most comprehensive database of travel information, and is enhanced by 'extensive in-house research'.

Germany retains the top spot in the Henley Passport Index for the fifth year in a row, offering its citizens access to 177 countries. The country is closely followed by Singapore which has visa-free access to 176 countries.

Meanwhile, Pakistan, Syria, Iraq, and Afghanistan occupy the bottom four ranks in the 2018 index, each having visa-free access to 30 or fewer countries.

"There is no denying that a global mobility divide exists," says Dr. Christian H. Kälin, Group Chairman of Henley & Partners.

"Nonetheless, only a small minority of countries on the Henley Passport Index lost visa-free access in 2018. By and large, countries either improved or maintained their access compared to 2017," he added.

"These findings reflect the fact that, while certain countries are tightening their borders, most are in fact becoming more open, as they seek to tap into the immense economic value that tourism, international commerce and migration can bring."

Dr. Kälin also pointed out that the countries that offer the most credible citizenship-by-investment programmes in the world consistently perform strongly in the indexing.

"More governments than ever before are embracing residence- and citizenship-by-investment programs as a means of stimulating economic development and growth, and an increased number of wealthy and talented individuals are looking to diversify their citizenship portfolios to give themselves and their families greater international opportunity, travel freedom, stability, and security".

• Courtesy: The Financial Express Jan 20, 2018

Mobile internet access in BD lower than South Asian average

GSMA top executive tells FE

Ismail Hossain  

Alasdair Grant  - Head, Asia Pacific at Global System for Mobile Communication Association (GSMA). 

The mobile telephony sector must take data protection seriously if it wants be at the heart of digital community, a top executive of global telecom industry has said.

"The mobile industry will not be heart of digital community if it does not take user's data protection and trust factor seriously," the head of Asia Pacific at Global System for Mobile Communication Association (GSMA) Alasdair Grant said.

The users need to trust operators, he said, adding without trust, financial inclusion, mobile financial services and other digital communication will not be successful.

"Traditionally, we have seen people are reluctant to use e-commerce and online transaction fearing personal data breach, if this happens with mobile industry as well, the digital community will not reach its target."

He talked to the FE while in Dhaka to attend Bangladesh National Dialogue on M4SDG: Mobile Services to Accelerate SDG Achievement in Bangladesh.

On the sidelines of roundtable, he said Bangladesh had lagged behind in mobile internet penetration in terms of regional competitors.

"One-third of Bangladeshi population have mobile internet access, while the average mobile internet usage rate in South Asia is currently 38 per cent. So it is a little bit behind," he said.

He sees digital literacy and, in broader terms, literacy is a big constraint on the way to expanding the market.

"A lot of people can't send text messages, a lot of people have difficulty in using application for using internet, what we found around the world, digital literacy is a big impediment, " he said. "Currently there is 90 per cent 3G coverage in Bangladesh but mobile internet penetration is only one third of the population. This is because lower rate of literacy."

"There are a number of roadblocks we have in the Bangladesh market. Literacy, data price and availability of spectrum, the rate of taxes on the mobile industry are among them."

He said taxes on the mobile industry are one of the highest in the region, which is 45 per cent. The rate of taxes should be reduced.

"We also would like to see some progress in national telecom policy. We want a robust set of principles and regulations for the industry."

On the network side, he said, he wants to see some flexibility in sharing their network with each other to reduce the cost of deployment.

He said there must be a spectrum roadmap and the telecom regulator needs to release more spectrum for stronger network.

He said Bangladesh has released much smaller amount of spectrum capacity than those in neighbouring countries.

He said the mobile industry is highly capital-intensive industry, so they need to know how much and when and what investment they would do.

He said that the operators are making very large network commitment in Bangladesh, seeing the country as a huge growing market.

"Only one third of population are using internet that situation really should be changed here."

About security, he said that GSMA works closely with operators and also with the national governments and cyber security experts.

"The number of machines and devices connected to internet will dramatically increase in the near future. Therefore, the need for security and risk associated with security will be greater," he said, adding that the industry needs to be ready to encounter that.

The GSM Association (commonly referred to as 'the GSMA') is a trade body that represents the interests of mobile network operators worldwide.

• Courtesy: The Financial Express, Jan 20, 2018

LOWERING MINIMUM AGE - Govt draws huge flak from FFs

Mohiuddin Alamgur

The government decision of lowering to twelve and a half years the minimum age to be eligible as a freedom fighter has drawn huge flak from freedom fighters.

They find the decision ‘unnecessary’, ‘illogical’ and ‘unfortunate’ and fear it will only add to the debate over status and listing of freedom fighters.

Freedom fighters as well as 1971 liberation war organisers, talking to New Age, have observed that yet another change in the age limit for becoming freedom fighters will lead only to an increased number of fake freedom fighters.

They think that this ‘debatable’ decision will undermine the position of freedom fighters in society.

The government on January 17 issued a gazette notification fixing the minimum age at twelve and a half years, down from 13, to be eligible for becoming a freedom fighter. People who were at least 12 and a half years old on November 30, 1971 will be eligible for applying for inclusion in the list of freedom fighters.

‘This decision is illogical and unacceptable,’ freedom fighter Zafrullah Chowdhury said, adding, ‘It is really absurd as the next government may lower it to 10 years.’ 

‘Situation has reached such a level that everyone who was born in 1971 should be considered freedom fighter as the foetus inside womb had inspired the mother and after birth the baby inspired all throwing its hands and legs,’ said Gonoshasthaya Kendra trustee Zafrullah, with sarcasm in his tone.

The government issued gazette notification in line with a decision made at a meeting of Jatiya Muktijoddha Council in October last year. It on June 19 that year issued a gazette notification fixing 13 years as the minimum age for an eligible freedom fighter. In 2014, the minimum age limit was fixed at 15 years.

Dhaka University professor emeritus Aniszuzzman said that he was not aware of the reasons for lowering the minimum age limit for a freedom fighter. ‘But it is really unfortunate that debate over minimum age limit, definition and list of freedom fighter still exists in society,’ he regretted.‘I do not see any way out of this debate. We already got into the debate, which haunted us for long,’ said Professor Aniszuzzman.

The nation is still in dark about the actual number of freedom fighters as successive governments could not prepare a comprehensive list in the past 46 years and provided differing figures.

Jatiya Muktijoddha Council initiated the latest move in October 2014 to have an authentic list of freedom fighters but was yet to complete scrutiny of over 1.42 lakh applications for inclusion in the list. The government at that time had set 15 years during the liberation war as the minimum age limit for being considered a freedom fighter.

‘Changes of minimum age limit show that government is still in indecision, which created chaos,’ said Communist Party of Bangladesh president Mujahidul Islam Selim, also a freedom fighter. ‘It is really unfortunate that such thing is happening as regards the freedom fighters, who should get the due of all,’ he said, blaming successive governments for the current situation.

Former Bangladesh Muktijoddha Sangsad Kendriya Command Council chairman Abdul Ahad Chowdhury criticised the decision terming it ‘illogical’.

‘Freedom fighters as well as people have not taken the decision positively as they do not find any logic for it,’ he stressed. 

‘Fake freedom fighters would get advantage from the decision,’ Ahad said.

‘It is true that some boys took part in the liberation war and Jatiya Muktijoddha Council can make special arrangements for them following due legal procedures,’ Ahad proposed, opposing wholesale lowering of age limit for all freedom fighter.

Sector Commanders Forum Liberation War 1971 secretary general Harun Habib also proposed a special provision for juvenile freedom fighter whose percentage was nominal. ‘It is really an unfortunate decision and such things might give negative impression about freedom fighters in society,’ he warned.

Freedom fighter and cultural activist Nasiruddin Yousuff, however, said that the government decision of lowering minimum age was acceptable as it was taken to include all freedom fighter in the listing process.

Rights activist and freedom fighter Sultana Kamal refused to make any comments regarding government’s decision to lower the minimum age to be eligible as a freedom fighter.

• Courtesy: New Age/Jan 20, 2018

Human rights situation continues to decline

Shakhawat Hossain

At least 139 people fell victim to ‘crossfire’ and 86 to enforced disappearance in Bangladesh in 2017, says annual report of the human right organisation Odhikar.

The Odhikar report which was released on Friday last, also said that 59 people ‘died’ in jail custody and 77 people were killed in political violence last year. Besides, 783 women and girls  became victims of rape, 242 were subjected to sexual harassment, 256 women became victims of violence for dowry and 52 were injured in acid attacks during  2017.

The report said 13 apparel workers were killed, 362 were injured and 3141 were terminated from their jobs. Besides, 82 workers of other sectors were killed and 80 others were injured in 2017.

The Odhikar report said 32 citizens were arrested under notorious ICT Act ( Information and Communication Technology Act) , one journalist was killed, 24 injured, 9 were assaulted and 11 journalists were threatened in 2017. 

It also reported that Indian border security force (BSF), killed 25 Bangladeshis injuring 29. Another 28 Bangladeshi citizens were victims of abduction by BSF in last year. 

The annual report of 2017 is the outcome of a compilation and analysis of the monthly human rights situation monitoring reports published every month in 2017.

The Odhikhar  report  illustrates  systematic  violations  of civil  and  political  rights, including  violations   of  the  rights  to  freedom  of  expression, a  shrinking   democratic   space   and dysfunctional justice   delivery   system due   to politicization in  the  judiciary; and  deprivation  of  the  right  to  life.  

Odhikar  says,  human rights violations continued in an endemic form in 2017, since  the rule of an authoritarian regime has been in operation in Bangladesh 

If  the state  is  not  established  on  a democratic  foundation, its  potential  political  target  cannot  be  achieved,  the  report  says  recalling  that  Bangladesh has  ratified  eight out  of  nine  core  international  Conventions  and  Treaties,  including  the  International  Covenant  on  Civil  and  Political  Rights  (ICCPR),  Convention  against  Torture  and  Other  Cruel,  Inhuman  or  Degrading  Treatment  or  Punishment  (UN CAT).  It has  also  ratified  the  Rome  Statute  of  the  International  Criminal  Court.

The human rights situation of Bangladesh in 2017 remained   detrimental due   to   the   failure of   implementation of the   mandatory obligations of these treaties. The Awami League has remained in power since 2009, thus the background of the human rights situation of 2017 is the continuation of the 2009 human rights record, says the report.

Furthermore, another  trend, of  shooting  in  the  leg or  knee capping by  the  security  forces, was added to  the  list  of human  rights  abuses since  2011, of  which  a large  majority  of  victims  were  leaders  and  activists  of  the  opposition  political  parties.

On many occasions, the ordinary citizens became victims during political violence. In 2017, the government imposed various repressive  laws, targeted  at dissenters  and  also  suppressed  and  harassed  the  opposition  and people  belonging  to  alternative beliefs and ideology, by accusing  them  of different  criminal acts, including  sedition and   defamation.  

The  Adhikar mentions  that  accurate   and   independent   news reports were barred from publication due to the government’s imposition of restrictive policies and by putting pressure on the media  by different  ways  and  means;  and  in  most  cases  journalists  were  forced  to  maintain  self-censorship  while  publishing  reports.

The  government  controls  most  of  the  media;  particularly  the  electronic  media,  which  are  mostly owned or controlled by supporters or members of the ruling party and closed down some  pro-opposition  electronic and  print  media.  Many journalists were attacked by criminals backed by and supporters of the ruling party while performing their duty during this period.

In  2017,  surveillance  and  monitoring  on  social  media  by  the government was  wide and the  Information  and  Communication  Technology  Act  2006  (amended  2009,  2013)  and the  Special  Powers  Act  1974  were imposed  against  people who were critical of the decisions and activities of  those in high positions of the government.

• Courtesy: Weekly Holiday/Jan 19, 2018

অর্থমন্ত্রী অন্ধ হলেই প্রলয় বন্ধ হবে না!

 এ হোসেইন 

সরকার দেশে উন্নয়নের মেলা বইয়ে দিচ্ছেন। ঝড়ো প্রচার চলেছে দুর্বার গতিতে। তবে সিপিডি যে সব তথ্য-উপাত্ত দিয়েছে তাতে দেখা যায়, ধনী অারও বিত্তবান, গরিব অারও গরিব হয়ে যাচ্ছে। ব্যাপার‌টা অর্থমন্ত্রী ‘রাবিশ’ বলে উড়িয়ে দিয়ে অন্ধ বনলেই  প্রলয় বন্ধ হবে না।

তবে সরকারের জন্য এটি মাথাব্যথা বলে গণ্য না-ও হতে পারে। 

বাংলাদেশের অামলা জগত প্রায়ই প্রবৃদ্ধি অার উন্নয়নের ব্যাপারটা গুলিয়ে ফেলেন। অার তাদের অনুগত মিডিয়াও একই তরিকা অনুসরণ করে। তবে অর্থনীতিবিদেরা বেশ কিছুকাল ধরেই এমনকি সরকারের নিজস্ব উপাত্ত ধরেই সরকারকে চ্যালেঞ্জ জানিয়ে অাসছেন। উদাহরণ স্বরূপ, ঢাকা বিশ্ববিদ্যালয়ের শিক্ষক এম এ তসলিম খানাওয়ারি অায়-ব্যয়-এর জরিপের উপাত্ত উদ্ধৃত করে সম্পত্তির ব্যাপক সম্প্রসারণের বিষয়টি  চ্যা‌ল‌েঞ্জ করেনন। তিনি সরকারি পর্যায়ে তৈরি ( যেমন বিবিএস-এর  উপাত্ত) অন্যান্য ত‌থ্যকে চ্যালেঞ্জ জানিয়েছেন। তাঁর দাবি পারিবারিক অায় ২০১০-২০১৬ মেয়াদে বরং  ১১ শতাংশ কমেছে। অথচ বাংলাদেশ পরিসংখ্যান ব্যুরোর উপাত্ত বলছে প্রকৃত জাতীয় অায় ৪২ শতাংশের ও বেশি বেড়েছে। প্রফেসর তসলিম দাবি করছেন, প্রবৃদ্ধির উপকার সাধারণ মানুষের ঘরে যাচ্ছে না।

তবে সরকার তো তাদের নিজের দেওয়া উপাত্তকে অস্বীকার করতে পারেন না। উপেক্ষা করছেন। কেননা, এটা মেনে নেওয়া তাদের দরকার নেই। কেননা উন্নয়ন হচ্ছে সরকার ও ধনীদের মধ্যে যোগাযোগের একটা চক্র। দরিদ্র সেখানে কোনো ফ্যক্টর নয়। তাদের কাছে কেবল এগ্রিগেটসই  ধর্তব্য। বিত্ত যাদের অাছে তারাই গণ্য, গরিব একান্তই নগণ্য।

সিপিডি বলেছে  দূর্বত্তায়িত ব্যাঙ্কিং খাতে সঙ্কট, মূল্যস্ফীতি, অাকাশমূখি অামদানি, কম রপ্তানি, অপর্যাপ্ত রেমিট্যান্স, ব্যাঙ্কে দলীয় অাধিপত্য ও রাস্ট্রীয় তহবিল লোপাট ইত্যাদির কারণে অর্থনীতি  চাপে রযেছে।

তাই দেশের অর্থনৈতিক ব্যবস্থাও এখন দূর্বৃত্তায়িত সেই ১৯৭২ থেকেই। রাষ্ট্রকাঠামো ও ধনীরা এখন একে অন্যকে ঠেকা দিচ্ছে। ক্ষমতা অজেয় হয়ে উঠেছে একই ব্যবস্থায়। কতোই কায়েমি হচ্ছে এই ব্যবস্থা  ততোই গণতন্ত্র দূরে সরে যাচ্ছে। মূলমন্ত্র হয়ে উঠেছে ধনী-দলীয় অাঁতাত।

রাষ্ট্রের প্রকৃতি এখন অসমতার বুনিয়াদে দাঁড়িয়ে অাছে। অার এভাবে যা অাসছে সেটাই এই অশুভ অাঁতাঁতের জন্য বোনাস। সরকার তাই ফাঁক যাই কিছু ধরা পড়ুক তাতে  নাক গলাবে না। 

• সূত্র - বুধবার, জানুয়ারি ১৭, ইংরেজি দৈনিক নিউ এইজে প্রকাশিত সাংবাদিক ও গবেষক অাফসান চৌধুরির লেখা অনুসারে। 

Need to discipline city transport system

Shahiduzzaman Khan

The traffic congestion in Dhaka city continues to cost the country billions of dollars and thousands of man-hours. It eats up 3.2 million work-hours per day. Such a situation is hardly witnessed anywhere in the world.

In the last 10 years, average traffic speed in Dhaka has dropped from 21 kilometres per hour (kmph) to 7.0kmph, which is slightly above the average walking speed, according to a World Bank (WB) analysis. And by 2035, the speed might drop to 4.0kmph, slower than walking speed, it said.

What is worrying is that the city's urban development has not kept up with its rapid growth, resulting in a messy and uneven urbanisation process. Lack of adequate planning has led to poor liveability and vulnerability to disasters like floods and earthquakes.

Traffic congestion eats up 7% of GDP

Another study says traffic congestion in Dhaka costs the country $11.4 billion every year, which is seven per cent of the country's Gross Domestic Product (GDP). About one quarter of working hours are lost in congestion as about 1.5 million citizens use vehicles for travelling across the city every day, it said.

The congestion may be reduced by 40 per cent by just improving the management of traffic as 98 per cent of the people very often break the laws on the road. Besides, there are problems like illegal occupation of road, haphazard parking, and an uncontrolled rise in the number of private vehicles.

Apart from the economic impact, the congestion is also harmful for the travellers' health, their society and environment. Around three quarters of travellers face both physical and psychological health impacts, the study says.

What’s to be done

Mention may be made that the people of Dhaka and its suburbs 

generate 30 million trips every day and buses are used for 47 per cent of these trips. When five Mass Rapid Transit (MRT) and two Bus Rapid Transit (BRT) projects will be implemented by 2035, these might reduce 17 per cent demand but the rest of the demand has to be mitigated by buses.

The Bus Network Study-2016, which was carried out under a project financed by the WB, recommended a separate government company to monitor bus companies in the capital. Cities like New Delhi, Singapore and Seoul have such companies.

The recent move to form a government company appears to be a 'good initiative' for bringing discipline in this sector. At present, after taking route permits from regional transport committees, the buses go to Bangladesh Road Transport Authority (BRTA) just only once a year for fitness certificates. There is no single authority to look into the sector.

• Courtesy: The Financial express/Jan 18, 2018

Poor governance can put feats at stake

Staff Correspondent

A major part of social and economic achievements of the country would be at stake without improvement in governance, observed representatives of development partners, civil society and government high-ups yesterday (Wednesday).

The view came on the first day of a high-level event, Bangladesh Development Forum (BDF), organised by the Ministry of Finance to discuss implementation progress of the 7th Five-Year Plan, the UN-set Sustainable Development Goals (SDGs) and challenges with development partners.

“Any deviation from this combination might jeopardise the unlocking of development potentials of Bangladesh. There is no alternative to improving governance in order for growth to be more sustainable and pro-poor,” said Shamsul Alam, member of the Planning Commission.

He made the comment while presenting the keynote on implementation of the 7th Five-Year Plan and SDGs at a session of the BDF at the Sonargaon Hotel. Finance Minister AMA Muhith chaired the session.

“Governance issue is particularly critical in the use of public resources, service delivery of institutions, transports, law enforcement, judiciary, land administration, tax and customs as they are still deemed corrupt service providers in Bangladesh,” he observed.

“Governance has been and remains one of Bangladesh's most critical challenges. Without addressing it, and more seriously, the government will be at the risk of losing some of the hard-earned economic and social advances it has achieved so far,” said Sir Fazle Hasan Abed, chairperson of Brac, the world's largest NGO.

He said governance should be at the very top of the government's priorities. He added partnership among the government, civil society and private sector can contribute to the next phase of the country's development.

“We must prioritise eradication of extreme poverty in Bangladesh. While one cannot deny the tremendous progress made, there are still 20 million people in our country who are living in direst forms of poverty and deprivation,” said the Brac chairperson.

Rensje Teerink, European Union ambassador to Bangladesh, put emphasis on diversification of export, regional integration, resource mobilisation and economic governance. She said, “We find it incredibly important to emphasise for Bangladesh to improve its overall governance, particularly in Public Financial Management [PFM], anti-corruption, transparency and tax mobilisation.”

The PFM is necessary for a country as it supports good public management by informing decision-makers to use scarce resources more efficiently, improve service delivery, reduce transaction cost and increase accountability of public institutions, she added.

Earlier at the inaugural session, World Bank Vice-President Annette Dixon said Bangladesh has attained impressive progress, but much remains to be done to give all of Bangladesh's citizens the opportunities they deserve. She said Bangladesh needs to address its infrastructure, energy, climate change and urbanisation bottlenecks.

“The country should continue to improve its institutions. The 7th Five-Year Plan importantly emphasises the need to strengthen governance, which includes building a strong civil service, judiciary, public banks, tax collection and Anti-Corruption Commission. We share Bangladesh's stated objective of zero tolerance for corruption.”

Finance Minister AMA Muhith said financing is the biggest challenge to implement SDGs and sought multilateral lenders and donors to enhance their financial and technological cooperation.

Asian Development Bank (ADB) Vice-President Wencai Zhang reaffirmed ADB's commitment to support Bangladesh in achieving the SDGs and assisting the country in fulfilling its growth aspirations.

Zhang said, “The ADB stands ready to support Bangladesh in tackling challenges to meeting the SDGs, improving infrastructure, and boosting social development. Improving education quality, enhancing access to health, and creating more employment opportunities, particularly for women, are some of the challenges to be met to achieve the SDG targets.”

At the keynote session, WB Country Director in Bangladesh Qimiao Fan said there are significant challenges for Bangladesh in going forward. He cited that the pace of poverty reduction and employment creation has slowed down. “We have also seen relatively inequality increasing in recent years.”

UN Resident Coordinator Mia Seppo emphasised addressing inequality and ensuring equality of opportunities, particularly in health and education for all.

• Courtesy: The Daily Star/Jan 18, 2018

FDI-friendly policies only in paper

Star Business report

Bangladesh has policies favourable for foreign investors only in paper, Nihad Kabir, president of the Metropolitan Chamber of Commerce and Industry, said yesterday Wednesday.

“Little of these policies are reflected in real life,” she said at a session on creating an enabling environment for foreign direct investment and private sector engagement at the Bangladesh Development Forum.

The finance ministry has organised the two-day event in the capital's Sonargaon Hotel, which is being attended mainly by development partners. She cited the foreign exchange rule of the country to further her point.

“The foreign exchange rule is liberal, but when we go for taking up the opportunity, we face various problems.” There is a policy uncertainty, particularly with regards to tax, which discourages investors.

“Investors remain concerned every year about what is going to be the tax policy. The tax issue should not change year to year,” she said, adding that foreign investors often ask questions about taxation and the policies on foreign exchange. Kabir also criticised the government's plan to build 100 economic zones.

“Instead of taking on 100 zones, the government should develop one or two properly. This will be helpful in attracting foreign investors,” she added.

Her comments came after discussants from the government's side focused on Bangladesh's steady economic growth, the entry of 20 lakh youths to the labour force every year and steps taken to attract foreign investment.

Poor logistics discourage potential investors, said Keiichiro Nakazawa, director general of the South Asia department of Japan International Cooperation Agency.

“Foreign investment is still below potential,” said M Masrur Reaz, senior economist at the International Finance Corporation's Dhaka office. Bangladesh will have to break into new products to participate in global value chain, he added.

If the civil administration is not efficient and investment-friendly, the expected level of investment will not come, said Mohammad Tareque, director of Brac Institute of Governance and Development.

The event was chaired by Gowher Rizvi, foreign affairs adviser to the prime minister; Fazle Kabir, governor of Bangladesh Bank, and Md Shahidul Haque, foreign secretary, also spoke.

• Courtesy: The Daily Star/Jan 18, 2018

Taka falling against US$ despite BB's support

Siddique Islam

Depreciating trend of the local currency against the US dollar is continuing despite the central bank's foreign currency support to the commercial banks.

The exchange rate of Bangladesh Taka (BDT) depreciated by five paisa against the greenback in the last two days mainly due to higher demand for the US currency in the market.

The US dollar was quoted at Tk 82.85 each on Wednesday against Tk 82.83 of the previous working day. It was Tk 82.80 on Monday, according to the market operators.

On the other hand, the Bangladesh Bank (BB) has strengthened its foreign currency support to the banks for settling import payment obligations, particularly of food grains, fuel oils and capital machinery. As part of the move, BB sold US$24 million directly to seven commercial banks on Wednesday to meet the growing demand for the greenback in the market. On Tuesday, the central bank similarly sold $25 million to five banks on the same ground.

"We're selling the US currency to the banks at market rate for making their import payment bills," a BB senior official told the FE. He also said the central bank may continue providing such foreign currency support to the banks in line with the market requirement.

BB has resumed giving the support in the recent months through selling the US currency to the banks directly to keep the market stable. A total of $1.20 billion was sold to the commercial banks since July 01 of this fiscal year, 2017-18, as part of its ongoing support, according to BB's latest data.

The demand for the US dollar is gradually increasing, mainly due to higher import payments pressure, particularly of capital machinery, petroleum products, consumer items and food grains.

• Courtesy: The Financial Express/Jan 18, 2018