Business Supplement Issue-8

DT
VOL1, ISSUE 8 | Sunday, April 9, 2017
Business Tribune
Businesses plan big for
Pohela Boishakh
Le Méridien
6
Bourses bounce back
7
Put the brakes
8
The long road to
to green territory
on Sobs already
cleaning it up

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Sunday, April 9, 2017
DT
Special
Pohela Boishakh boosts clothing sales
• Shariful Islam
As the Banglalees are set to celebrate
Pahela Baisakh next Friday,
the country’s fashion houses are
expecting a boost in their business
with a bigger sales target than last
year’s.
They have come up a wide range
of new collections to meet taste
and demand of the customers
keeping Bangali tradition and culture
in mind.
During the visits in the past couple
of days, large crowds were seen
in different shopping malls and
fashion houses in Dhaka.
“There are good sales. This year
the fashion houses have a target
of Tk1,750 crore sales against the
last year’s sales of Tk1,500 crore,”
Azharul Hoque Azad, President of
Fashion Entrepreneurs Association
of Bangladesh (FEAB), told the
Dhaka Tribune.
“Pahela Baishakh is the second
largest business season (after
Eid-ul-Fitr) for fashion houses in
Bangladesh. This is the festival of
Bangalees of all faiths,” said Azhar.
Shoppers are mostly buying
punjabis, fatuas, sarees, salwar
kamizes, baby clothes, ornaments,
cosmetics and footwear.
“In the past years, the sales increased
in the second week of April
ahead of the Bangla New Year. But
this year the shoppers are crowding
the malls from the last week of
March,” said Shahin Ahmed, CEO
of Anjan’s. He is also the vice-president
of FEAB.
He said the sales started “too
early as people wanted to select
their desired clothes before the
stocks run out.”
Shahin said the overall condition
of the country and the government’s
festival bonus on Bangla
New Year helped the business get a
boost compared to previous years.
“This year Anjan’s has introduced
dresses with theme-based designs
and prints, like snake-ludo, silk bangles
and jamdani and most of the
dresses are made of cotton considering
the weather,” said Anjan’s CEO.
Anjan’s Punjabi prices range between
Tk900 and Tk1,400 and saree
between Tk2,000 and Tk4,000.
The products of this price ranges
are on the high sale, he added.
Nahida Sharmin, Proprietor of
ShailpikCraft, said the sales during
this period of last year was around
Tk50,000 per day, while it stood at
Tk80,000 this year.
“Since the flavour of the consumers
is changing all the time,
we have also brought a lot of new
products including sarees, panjubi,
salwar kamiz designed by our designers,”
she said.
Salim Ahmed, Head of Marketing
of Kay Craft said: “We have designed
some unique products like
100% cotton, half-silk, embroidery,
screen prints and block prints in red
colour and the sales of this year are
higher than the previous years’.”
He said that, this year, Kay Craft
has set a target of 25% growth in
sales than last year and “our sales
increase boosted confidence to attain
the target.”
Abul Kamal, a government officer,
who came to Bashundhara
City shopping mall with his family
for Baishakh shopping, said:
“There are many traditional dresses
with new designs at the fashion
outlets. I have four dresses.”
A number of shoppers alleged
the boutique houses are charging
higher than the regular prices. The
traders attributed the higher prices
to the increase of raw materials’
price. The high raw materials price
has led to rise in production cost,
said a shop owner. “The increase is
from Tk50 to Tk200 on the basis of
product quality,” he said.
Meanwhile, FEAB organised a
five-day fashion fair styled “Grand
Fashion Festival 2017” from April 3,
which concluded on Friday, marking
the celebration of Pahela Baishakh.
FEAB introduced local attires
with newer designs and styles at
the festival held at Bangladesh
Shilpakala Academy in Dhaka.
Tangail Saree Kutir, Kay Craft,
ShailpicCraft, Mian-Bibi, AB Fashion
Maker, M-Craft, Rong Bangladesh,
Anjans, SadaKalo, Kumudini,
Banglar Mela, Deshal,
Kapor-e-Bangla, Sristy, Nandan
Kutir, Nipun Craft, Arannya Craft,
Nitto Upohar, Shiboni, Megh and
Four Dimension participated in the
fashion festival, among other leading
fashion houses in the country.
FEAB organised the fair for the
second time and the fair helped
local fashion industry fight back
foreign aggression in local fashion
arena, said organisers.
Besides, hundreds of customers
are also seen crowding at Gauchia
Market, Hawkers’ Market, New
Market, Mouchak Market and other
road side shops in the city.
Most of the customers in these
shops are from middle, lower-middle
and low income groups. They,
are looking for festival attires.
Rahim Miah, a roadside trader
of kids wear at Gauchia Market area
said his sales went up by 50% to 60%
from the first week of April. •
Dhaka hotels getting ready to celebrate Pohela Boishakh with guests
• Ishtiaq Husain
Five-star hotels in Dhaka are chalking out elaborate
programmes to observe Pohela Boishakh, the first
day of Bangla New Year, on April 14 amid immense
festivity and fanfare. The hotels on this day will
be ornamented with festive colours of Pohela
Boishakh. There will be an assortment of events
at the hotels to entertain guests and visitors with
traditional food and make the day joyous.
Pan Pacific Sonargaon
Pan Pacific Sonargaon Dhaka will organise a threeday
long programme starting on April 14. Among
its other programmes, the hotel will arrange a
scintillating line-up of delicious Bangladeshi food
and cultural events, where celebrated artistes will
captivate visitors with their performances.
Pan Pacific Sonargaon Assistant Director Salman
Kabir told the Dhaka Tribune that customers would
be able to enjoy a fair in the hotel lobby with a
number of stalls displaying traditional handicrafts,
clothes, souvenirs, etc.
Like every year, the hotel’s most popular
restaurant – Café Bazar – will offer an array of
mouth-watering Boishakhi food on April 14-15. The
restaurant’s Boishakhi Buffet Fest will serve food
items like hilsa Bhaja and Shutki Bhorta along with
assorted recipes of chutney and salad. And, special
desserts will feature fruit platters, Pithas, Shemai,
Firni, Rashmalai, Sweet Yoghurt and Gur Paesh.
Amid all such programmes, you will definitely
not want to miss cheerful events featuring folk
music and dance in the restaurant.
Westin Dhaka
Md Al-Amin, director (sales and marketing) of
Westin Dhaka, said they would serve authentic
local delicacies with lower prices in order to bring a
festive mood to their hotel.
“We will likely hold a fair from 9am to 12pm
for those who will not be able to go to the Dhaka
University area, where generally many such events
A variety of traditional foods are kept on display at Le Méridien in Dhaka recently
take place marking the day,” he said, adding that
there would be a cultural event at the hotel.
Al-Amin also said: “Westin has announced a
special offer for our valued clients at Tk1,40,024.
This price is cheaper than the regular one.”
Le Méridien
On this occasion, Le Méridien will showcase a variety
of new recipes, along with traditional food such as
Panta-Ilish, at its multi-cuisine restaurant Latest Recipe,
while other restaurants will offer different sets of
menus at prices starting from Tk1,000 on 9-14 April.
In addition to welcoming the new year with glee
and enthusiasm, the hotel will host a Boishakhi
Mela (fair) in its Sky Ballroom. Guests will be thrilled
and amused by magic shows, face paintings, Baul
songs and bioscopes. They will also be able to avail
Courtesy
Bangalee buffet lunch and dinner at regular prices.
The entry to the fair will be complimentary for
those buying the Boishakhi buffet packages.
The lunch and dinner package will be priced at
Tk2,950 and Tk3,600 respectively.
Radisson Blu
Radisson Blu expects to hold a world class event
on the occasion. It will be adorned with glimmering
lights, illuminating drapes, handmade crafts and
pottery objects.
The hotel’s Spice and Rice restaurant will
present cutting edge cuisines and Chef James’s
spectacular Pohela Boishakh buffet and his famous
themed kebabs.
For the first time, the restaurant, which is
already well known for its glaring reputation, is
organising such a high-end event. So, do not forget
to have a taste of dry ice-infused young coconuts
and themed ice sculptures displayed in an array of
colours and traditional food.
Other native food items at the restaurant will
feature Pabda Machher Kofta, Potoler Dolma
and Bhortas and desserts like Patishapta Pitha,
Roshomalai and Batasha.
Essence of the day will also reflect on the hotel
staff as well, who will be dress in an exotic fashion
of red saris and Punjabis in stark contrast to their
usual dapper suits.
Amari Dhaka
The Amari hotel is, too, all set to celebrate Pohela
Boishakh with cheer in an absolute Bangalee fashion.
An event of traditional celebrations will create
a glamorous atmosphere in the hotel lobby, while
native delicacies will be served at its signature
restaurant Amaya Food Gallery.
The restaurant will serve traditional delicacies
during breakfast, lunch and dinner alongside local
culinary delights and food like Jhal Muri, roasted
peanuts, Chanachur, Fuchka and Chot Poti. A wide
array of juice made of fruits like coconut, lemon,
mango and apple will also be available there for
guests to beat the summer heat.
The Boishakhi special lunch buffet will be a
combination of salad and appetisers like Kach Kola
Bharta, Chingri Bharta and Tok Doi. Thai, Japanese
and Chinese delicacies apart, the main dishes will
comprise Panta Bhat, hilsa Polao, fried hilsa and
Shobji Niramish, Roupchanda with fried tomato,
chicken Korma, chicken Dopiazza and whatnot.
According to the restaurant authorities, the
lunch buffet package is priced at Tk1,999 and
dinner buffet at Tk2,500.
Amari has also planned a special fair to be held
at its Cascade Lounge, which will represent the
excitement of Bangalee cultures and traditions.
Overall, it will turn into a bustling hub of bioscope
shows, balloon shooting, guests, fortune tellers and
bangle sellers. •

Interview
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Sunday, April 9, 2017
DT
‘Bring fashion industry under a policy’
The government must be proactive and create a policy framework to combat foreign aggression in the country’s fashion
industry, says Azharul Haque Azad, first president of the Fashion Entrepreneurs Association of Bangladesh (FEAB) and
CEO of acclaimed fashion brand Shada Kalo, in an exclusive interview with the Dhaka Tribune’s Shariful Islam
What is the present condition of
Bangladesh’s fashion industry?
It has expanded significantly. The
annual turnover from this sector
is currently Tk6,000 crore. There
are at least 4,500 fashion houses in
the country, employing nearly five
million people, 70% of whom are
women. Moreover, three million
people are dependenton the industry’s
backward linkage.
Ourlocal fashion industry was
started with individual efforts. In
1973, Nipun was the first fashion
house to introduce exclusively
designed fashion products in our
country. The industry finally started
to grow after 2000. However,
our business is still festival-centric.
What are the challenges and
prospects of our fashion industry?
There are many challenges in this
sector, like the overwhelming influence
of Indian and Pakistani fashion
trends, lack of government policy
support, and also the lack of specialised
loan schemes from the banks.
Many fashion businesses have gone
under in the last few years due to
political instability and other obstacles.
There is also a shortage of
skilled workforce in this industry.
But there are also huge opportunities
for fashion business in
Bangladesh. Local fashion trends
are gaining popularity. Our goal is
to fight back the foreign influence
on our fashion and promote local
culture and tradition.
What about the government
support to the fashion industry?
The government has no concern
Azharul Hoque Azad, CEO of fashion brand Shada Kalo
Local fashion houses use modern and,
at most times, western patterns,but all
the products are made keeping our social
perspective, culture and heritage in mind
about this industry. The FEAB has
been trying to reach the government
for a dialogue, but with little
response. The government has cut
only 1% VAT on domestic fashion
products, bringing it down to 4%,
Courtesy
while the rate has increased from 2%
to 4% on foreign fashion products,
after we consistently asked for it for
three years. We have not gotten any
other support from the government.
What kind of facility can the
government provide for the
fashion industry?
The government must formulate a
policy framework to prevent foreign
aggression in the country’s
fashion industry. Ourlocal fashion
has the capacity to lead the industry
if the government brings this
industry under a specific ministry
and relaxesthe Value Added Tax
(VAT) and loan interest rates.
For growth and expansion of the
local fashion industry, the government
has to provide support for the
development of linkage industries,
including handloom and raw materials,
to compete with Indian and
Pakistani fabrics.
People claim that local fashion
attires are costlier than others.
What do you have to say about that?
It is not true. The price of our products
is not higher than others. It is
a misconception of our consumers.
It is all about quality. Products
made here are cheaper than foreign
products of the same quality.
Do the current fashion trends
represent our culture and tradition?
Yes, of course. The local fashion
houses use modern and, at most
times, western patterns,but all the
products are made keeping our social
perspective, culture and heritage
in mind.
What type of products do
consumers prefer for fashion?
Most of the customers tend to purchase
traditional clothing like sari
and panjabi. However, t-shirts,
jerkin (short jackets) and shimmies
(women’s clothing) are also in
vogue.
Who are the target market of our
fashion industry?
We make products for everyone,
but our customers mostly comprise
middle- or lower-middle-income
people. However, high-end
products for upper-class customers
are also available.
How can the fashion industry
reach the rural people?
Our fashion industry has already
reached the rural areas. Rural people
arealready seen wearing locally-made
t-shirts. The big fashion
houses are opening outlets in the
districts and towns area too.
Eid-ul-Fitr is the biggest festival in
the country in terms of sales. What
is the next big festival?
Pohela Boishakh is the second largest
festival for our industry in terms of
sales. People from all religious backgrounds
and classes buy clothes during
this festival. Traditional clothes
are popular during this festival.
Tell us about the growth of
Boishakhi sales. This year, we
have set a sales target of Tk1,7500
croreahead ofthe biggest cultural
festival of Bangalis. Last year, the
sales amounted to Tk1,500 crore.
Do you think bonus for government
officials on the occasion of Bangla
New Year will boost sales?
I don’t think so, because most government
employees use the festival
allowances for other purposes. •
‘Pohela Boishakh needs promotion abroad to help expose our culture’
• Ishtiaq Husain
Joined as a director (sales & marketing)
of The Westin Dhaka back in 2014, Md Al
Amin has been working as the director
of sales department of the premier fivestar
hotel until being promoted to its
(sales & marketing) head.
When did you plan to celebrate
Bangla New Year?
Being an international brand, The
Westin Dhaka started marking Pohela
Boishakh in 2007 and ever since, we are
celebrating it amid festivity. Not only
Bangla New Year, but we also observe all
other special occasions with a satisfactory
response from people, especially our
customers.
If you visit us on Pohela Boishakh,
you will see our hotel overcrowded.
People, mostly from Gulshan, throng our
premises, which is highly encouraging
for us. We decorate the hotel colourfully
using local themes to bring in the feeling
of Bangla culture. Even, the display of
dishes prepared especially on the occasion
is designed with a uniqueness.
Md. Al-Amin
What made you think of
celebrating the occasion in a fivestar
hotel?
Look, our mother company, Marriot
International’s concept is “Go Local”. We
have a worldwide instruction to participate
actively in local programmes and
events related to the culture and history
of a certain country or region. Marriot’s
different hotels work with different
brands. Westin is a lifestyle brand and it
goes with your lifestyle. Hence, whenever
you visit our hotel, you will find the
lobbies packed.
During the Pohela Boishakh celebrations,
we have a village fair-like arrangement
where one can discover face painting
and even folk song show, among
other, events. We decorate the hotel
keeping in line with Bengali lifestyle and
display local cuisines lucratively. You will
only get this ambience at TSC or Fine
Arts faculty of Dhaka University.
Gulshan residents prefer to visit the
hotel to introduce their children with
Pohela Boishakh celebrations as part of
rich Bangla heritage, instead of taking
them to Dhaka University considering
time, crowd and traffic congestion.
How we can promote Pohela
Boishakh abroad?
The government can take measures to
help promote the occasion oversees. If
so, many foreigners will come to know
about Pohela Boishakh and become
interested to celebrate it in Bangladesh.
We can also hold Mangal Shobhajatra,
a mass procession brought out on
Pohela Boishakh morning, which can
become a key attraction to foreigners.
As we know, China, Mexico, Brazil and
Thailand, among many other countries,
celebrate their own new year vibrantly.
Unfortunately, many Bangladeshis visit
Thailand to celebrate their event.
How would you expose Bengali
culture?
Western people will be able to taste
Bangladeshi cuisines and experience
its culture through Pohela Boishakh.
Our culture will get much exposure to
foreigners through such celebrations.
We will try to the make the most of our
cultural branding by exposing how we
actually observe Bangla New Year. The
government can step forward to help
us do so.
Have you any special pacakage on
Pohela Boishakh?
We have a special package for our valued
guests at Tk14,0024 (April 13-15) for
accomodation and breakfast (complementary).
The price is cheaper than our
regular ones. •

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Sunday, April 9, 2017
DT
Week in Review
ADB: Bangladesh economy to grow 6.9% in FY17
Bangladesh’s economic growth is expected to grow
6.9% in FY2016-17 as domestic demand rises more
slowly and the slide in workers’ remittances deepens,
according to the Asian Development Outlook 2017.
“The GDP growth will slow down with the decline
in the agricultural and export growths and the rise in
import growth,” said Jyotsana Varma, Principal Country
Specialist of the Manila based development partner
while presenting the outlook at a press conference at
its office on April 6.
Varma, however, described the outlook as a very
positive for Bangladesh. “Though the GDP growth to
slow down, a 6.9% growth is positive and huge compared
to other countries,” she added.
ADB Deputy Country Director Cai Li, team leader of
external affairs Gobinda Bar and consultant Dr. Zahid
Hossain were also present at the press conference.
In the outlook, the ADB said slower export growth
caused by weaker consumer demand in the euro area
and the United Kingdom is expected in part because
the currencies of these destination markets have
depreciated against the dollar.
Increases in wages and continued access to credit
will help to sustain private consumption, it said, adding
that private investment will rise only slightly as investors
turn cautious ahead of national elections in 2018.
Public investment is expected to strengthen through
fiscal expansion as the authorities speed up their implementation
of infrastructure projects, ADB said.
Agriculture is expected to slow further to 2.4%
growth in FY2017 and 2.3% in FY2018, mainly because
of limits on area expansion and productivity improvement,
it said and adding that industry growth is
expected to decelerate to 10.6% in FY2017 in tandem
with domestic demand.
With reinvigorated domestic demand resulting
from higher export income and a more moderate
decline in remittances, industry growth will edge back
up to 10.7% in FY2018 and services growth is expected
to slow to 6.0% in FY2017, reflecting slower growth
in agriculture and industry, and remain unchanged in
FY2018, said the ADB. •
Courtesy
Leather sector fears loss of Tk1,100cr export orders
As the saga of tannery relocation continues,
industry people fear that the country
may suffer a loss of over Tk1,000
crore export orders of leather goods.
“The tanneries at Hazaribagh are
going to be closed from April 6 as per
the Supreme Court order. But Savar
is not ready yet to start operation of
tanneries though the people related
with process placed false information
before the court,” said Mohiuddin
Mahmud Mahin, president of Bangladesh
Finished Leather, Leather Goods
and Footwear Exporters Association
(BFLLFEA).
He was speaking at a press conference
in Dhaka on April 2, attended by
leaders of 14 leather sector associations.
The associations placed six
demands including a judicial inquiry
Exports nearly $26bn in first
nine months of fiscal year
Bangladesh has earned $25.94 billion
from exports in the first nine months
of this fiscal year with nearly 4%
increase from the same period a year
ago, though it is still 4.30% less than
the target.
According to the latest Export
Promotion Bureau (EPB) data, during
the July-March period of FY2016-17,
Bangladesh earned $25.94 billion,
which is 3.97% higher compared to
$24.95 billion in the same period in
FY2015-16.
Though Bangladesh earned $3.11
billion in March, which is 9.83% higher
than last year’s $2.83 billion, export
earnings still did not manage to meet
the government’s target of $27.11
billion for the July-March period.
As RMG exports contribute to
about 82% of total exports, manufacturers
blamed the slow growth in the
apparel industry exports for failing to
meet the target.
In this fiscal year, the RMG sector
earned $20.92 billion, a 2.39%
increase from $20.44 billion last year.
However, even this marginal growth is
far from the sector’s target of earning
$50 billion by 2021. In order to achieve
that goal, the industry needs to attain
a growth of more than 12%. •
Courtesy
into Bangladesh Small and Cottages
Industry Corporation (BSCIC) which is
accused of “misinforming” the court
about the preparedness in Savar
Tannery Estate.
They gave an ultimatum to the
government to meet their demands by
April 6.
Bangladesh Tanners Association
(BTA) President Md Shaheen Ahmed
said they will organise a mass rally in
Savar on April 8 if the demands are not
met by April 6.
The tanners’ demands included
providing immediate connection of gas
and electricity to Savar Tannery Estate,
giving plots to those who has not got
plot yet in the Estate, quick completion
of ownership deed registration of the
plots, withdrawal of embargo on passing
design plan at the tanners’ land in
Hazaribagh and immediate completion
of the relocation process to Savar
providing all facilities and revealing
“truth” to the people against “BSCIC’s
misinformation.”
While reading out a written statement,
BFLLFEA President Mohiuddin
Mahmud Mahin said: “The BSCIC had
submitted false information before
the court saying that the Central
Effluent Treatment Plant (CETP) at all
the factories in Savar is ready. But we
found only 50 of 154 tanneries having
CETP facility while other ones are
to dispose unrefined liquid waste to
nearby Dhaleshwari River. This is again
an environmental concern.”
He said 120 tanneries had submitted
a demand note to BSCIC for gas and
another 144 for electricity connections,
which are yet to be met.
“Without gas and electricity, we
cannot start production,” he said.
Mahin said the plot registration has
not been complete yet. “But we have
invested Tk2,200 crore in Savar Tannery
Estate. As the BSCIC is yet to hand
over plots to us through registration,
we cannot apply for bank loans.” •
Bond, debenture
investment limit halved
Bangladesh Bank has lowered the limit
of investment in a single company’s
bond or debenture by half to reduce
the banks’ risky investments.
The reduced limit of investment
is 5% against current 10% from the
banks’ total amount of paid-up capital,
share premium, statutory reserves
and retained earnings.
The central bank has issued a circular
in this regard on April 5 stating,
“from now, bank-companies cannot
invest in a single company’s bond or
debenture from the total amount of
paid up capital, share premium, statutory
reserve and retained earnings.”
The circular signed by BB General
Manager Abu Farah Md Naser also said:
“Bangladesh Securities and Exchange
Commission will have to approve the
bond or debenture investment.”
But the sub-debt instrument of
the banks and companies will not be
under the circular. Previously, the investment
of limit was fixed at 10%, as
per section 26 (ka) of Bank Company
Act (Amendment) 2013.
Recently, Finance Division rejected
the proposal of issuing bonds worth
Tk4,100 crore for three state-run
banks including BASIC Bank to meet
their capital shortfalls. •
Experts: New
VAT law may
trigger price
hike of gas,
electricity
Consumers may see another round
of hike in gas and electricity prices if
the new value-added tax law comes
into effect from July 1, the country’s
economists warned.
“If the new VAT law comes into
force, 15% VAT will be added to gas
and electricity prices. It may push
up the utility prices,” CPD Research
Fellow Towfiqul Islam Khan said at
a pre-budget discussion at the NBR
headquarters on April 4.
He asked the National Board of
Revenue to impose VAT on gas and
electricity at the in phases, not at
a time.
“The NBR has to make an
announcement before imposing the
VAT so that the business community
can make their plan,” Towfiqul said.
Addressing the meeting, Prof
Wahiduddin Mahmud, a leading
economist, said the proposal of
imposing 15% VAT on gas and electricity
was not logical.
“If the NBR imposes VAT on
these utility services, they will have
to make it clear to the consumers,”
he said.
The new law has drawn widespread
criticisms as it will impose a
flat 15% VAT on all sectors.
In 2012, the Parliament passed
the law that emphasised using
proper accounting method for all
businesses.
The release of the last two instalments
of International Monetary
Fund’s Extended Credit Facility funds
to Bangladesh were delayed as the
government had failed to keep their
commitment of launching the new
VAT law by July 1, 2016. •

Corporate News
5
Sunday, April 9, 2017
DT
Aarong has recently opened its 17th outlet at Bashundhara City Shopping Complex, said a press release.
Founder and chairperson of BRAC, Sir Fazle Hasan Abed KCMG was present on the occasion
Standard Chartered Bank, Bangladesh has recently organised a workshop on trade guidelines and
automation in Dhaka, said a press release. The bank’s head of transaction, Apurva Jain was present at
the workshop
Mohammadi Group has recently signed an agreement with Edison Health Care Ltd to pledge health care
services for all its employees, said a press release. Chairperson of Edison Health Care Ltd, Professor Dr M
Harunur Rashid and Rubana Haq, managing director of Mohammadi Group have signed the agreement
Executive committee of Social Islami Bank Limited has recently held its 302nd meeting, said a press
release. The committee’s chairperson, Md Anisul Hoque presided over the meeting
United Commercial Bank Limited has recently signed an agreement with Uttara Club Limited on
providing the bank’s priority banking customers with exclusive privileges, said a press release. The
bank’s managing director, Muhammed Ali and Nasir U Mahmood, president of Uttara Club Limited have
signed the agreement
Dhaka Bank Limited has recently donated Tk24lakh to PFDA Vocational Training Center Trust for
welfare of underprivileged people with autism and neuro-development disability, said a press release.
The bank’s managing director, Syed Mahbubur Rahman handed over a cheque to Sanjida Rahman,
chairperson of PFDA-Vocational Training Center Trust in this regard
Dhaka Mercantile Co-operative Bank has recently opened its 120th branch at Dakshin Surma, said a
press release. Chairperson at central command council of Bangladesh Muktijoddha Shangsad, Major
General (retired) Helal Morshed Khan inaugurated the branch
Northern University Bangladesh (NUB) has recently launched a programme titled Chinese Language
and Culture Teaching, said a press release. Chairperson of NUB Trust, Prof Dr AYM Abdullah was present
on the occasion as chief guest

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Sunday, April 9, 2017
DT
Stocks
W E E K L Y M a r k e t O v e r v i e w SUMMARY Points Change (%) Turnover (BDTmn) Volume (mn) Advanced issues Declined issues Unchanged Issues
DSEX
5,736.4 DSEX 5,736.4 0.29% 47,938 1,235 135 178 19
(+) 0.29%
CSE ASI 17,784.2 0.26% 3,309 92 112 166 10
Bourses bounce back to green territory
DSE NEWS
• Tribune Business Desk
UNITEDINS: The Board of Directors has
Stocks saw marginal gains during the last week,
thanks to continuing of a high level turnover.
The high turnover was driven by some of the
large-cap equities during the week.
Investors also seen acting upon the earnings
announcement made during the past
week, suggested a trader at UCB Capital Management
Ltd. Overall, thirteen scrips made
announcements during the past week.
recommended 11% cash dividend for the
year ended on 31.12.2016. Date of AGM:
14.05.2017, Time: 10:00 AM, Venue: Dhaka
Ladies Club, 36 New Eskaton, Ramna,
Dhaka-1000. Record Date: 20.04.2017. The
Company has also reported EPS of Tk. 2.87,
NAV per share of Tk. 28.64 and NOCFPS of
Tk. (0.84) for the year ended on 31.12.2016
as against Tk. 2.96 (restated), Tk. 26.42 (restated)
Corporate announcement from some
and Tk. (0.25) (restated) respective-
banks have disappointed investors during
the week, said LankaBangla Securities at its
ly for the same period of the previous
year.
weekly market report.
Islami Bank secured itself the worst loser
spot of the week by recommending a 10%
cash dividend for the year ended in 2016, failing
short of the investor expectation.
Market participation saw a marginal gain
during the week with daily average turnover
advancing by 2.9% to Tk 959cr as compared
to a week earlier.
The benchmark indices, DSEX registered
a gain of 0.29% during the week to close at
5,736.4 points while CSE ASI gained 0.26% to
end at 17,784.2 points.
According to Dhaka Stock Exchange (DSE)
data, Regent Textile Mills secured the highest
weekly gain of 21.4% while the worst loser,
Islami Bank’s share price declined by 15.1%.
City Bank retained its top turnover leader
position last week with a turnover of Tk 259cr
during the week.
DS30, the blue-chip index went up by 43.4
points or 2.1% to end at 2,134 points, while
DSE Shariah based index gained 9 points or
0.69% to close at 1,312.7 points. •
ONEBANKLTD: The Board of Directors has
recommended 13% cash dividend and 10%
stock dividend for the year ended on December
31, 2016. Date of AGM: 11.05.2017,
Time: 11:00 AM, Venue: Police Convention
Hall, Eskaton Garden Road, Ramna,
Dhaka-1000. Record date: 20.04.2017. The
Company has also reported Consolidated
EPS of Tk. 3.64, Consolidated NAV per share
of Tk. 18.95 and Consolidated NOCFPS of
Most Traded Price Weekly change MOVEMENT OF DSEX INDEX LAST WEEK
Tk. (1.08) for the year ended on December
City Bank 42.2 8.21%
5,800
31, 2016 as against Tk. 2.82, Tk. 16.40 and
Tk. 21.74 respectively for the same period of
LankaBangla 64.3 0.63%
5,780
the previous year.
BEXIMCO 36.5 3.99%
5,760
CITYBANK: The Board of Directors has
IDLC 77.5 10.71%
recommended 24% cash dividend for the
5,740
year ended on December 31, 2016. Date of
BX Pharma 118.5 7.34%
AGM: 15.06.2017. Time: 11:00 AM, Venue:
5,720
Kurmitola Golf Club, Dhaka Cantonment,
BRAC Bank 92.4 6.57%
Dhaka. Record Date: 20.04.2017. The Company
has also reported Consolidated EPS
5,700
SQ Pharma 286.9 3.24%
of Tk. 4.64, Consolidated NAV per share of
5,680
RSRM Steel 92.7 1.53%
Tk. 27.98 and Consolidated NOCFPS of Tk.
5,660
14.92 for the year ended on December 31,
Islami Bank 34.9 -15.09%
2016 as against Tk. 4.10, Tk. 28.07 and Tk.
5,640
11.79 respectively for the same period of the
One Bank 24 2.56%
DAY 0 DAY 1 DAY 2 DAY 3 DAY 4 DAY 5
previous year.
Dhaka Tribune has accumulated the stock market related data primarily from Dhaka Stock Exchange website. The basis of information collected was primarily from daily stock quotations and audited/
unaudited reports of publicly listed companies. High level of caution has been taken to collect and present the above information and data. The publisher will not take any responsibility if any body uses this
information and data for his/her investment decision. For any query please email to news@dhakatribune.com.
Investors look to global growth for earnings power
• Reuters
America First may be a main policy of the White
House and fuel to the stock market rally but US investors
are looking overseas for stronger earnings
as S&P 500 companies are set to report their first
quarter of double-digit profit gains since 2014.
A strong earnings season would help justify
pricey stock valuations, with the S&P 500 rallying
this month to its most expensive since 2004 on a
forward price-to-earnings basis.
While the US economy has gotten a lot of
attention since the Nov 8 election and President
Donald Trump's vows to boost the domestic
economy, data during the quarter has suggested
the global economy is strengthening.
That is welcome news for S&P components,
since nearly half of their sales come from overseas.
Shares of the biggest US companies, which
tend to have the most overseas exposure, have
been among the strongest performers over the
past several weeks. For instance, the S&P 500
has outperformed its average stock this year since
mid-February, after performing mostly in line at
the beginning of the year.
"The fact that we're seeing stabilization in the
global community will bode well for multinational
companies and help earnings for the first quarter,"
said Terry Sandven, senior equity strategist at US
Bank Wealth Management in Minneapolis.
"You've also seen the dollar not appreciate
as much as many had forecast a quarter ago, so
multinational companies may get some relief on
the (foreign exchange) line," he said.
A weaker dollar boosts offshore revenues
when they are translated into the US currency.
The US dollar index was down 1.8% in the first
quarter, but it was still cheaper during last year's
first quarter.
A survey this week showed euro zone business
activity at a six-year high. Forecasts from the
International Monetary Fund show a pickup in the
global economy in 2017 and 2018, especially in
developing economies.
However, some investors worry multinationals
may have already priced in big gains in earnings.
"As long as nothing changes, these firms are
going to be fine," said Jack Ablin, chief investment
officer at BMO Private Bank in Chicago, speaking
of the strength of the largest American companies.
He warned, however, that stock prices may
have taken in any good news. "The market has
certainly fully discounted all that."
For the entire S&P 500, analysts are projecting
earnings up 10.1% compared with a year ago,
which would be the first double-digit increase
since the third quarter of 2014, according to
Thomson Reuters data. •
ISLAMIBANK: The Board of Directors has
recommended 10% cash dividend for the
year ended on December 31, 2016. Date of
AGM: 23.05.2017, Time: 10:00 AM, Venue:
Kurmitola Golf Club, Dhaka Cantonment,
Dhaka-1206. Record Date: 23.04.2017. The
Company has also reported Consolidated
EPS of Tk. 2.78, Consolidated NAV per
share of Tk. 30.34 and Consolidated
NOCFPS of Tk. (6.81) for the year ended
on December 31, 2016 as against Tk. 2.12
(restated), Tk. 29.54 (restated) and Tk.
8.84 respectively for the same period of the
previous year.
UCB: The Board of Directors has recommended
15% cash dividend for the year
ended on December 31, 2016. Date of AGM:
11.05.2017, Time and Venue: To be notified
later on. Record date: 25.04.2017. The
Company has also reported Consolidated
EPS of Tk. 2.49, Consolidated NAV per share
of Tk. 24.50 and Consolidated NOCFPS of
Tk. 2.25 for the year ended on December 31,
2016 as against Tk. 3.81, Tk. 25.56 and Tk.
(4.30) respectively for the same period of
the previous year. •

OPINION 7
DT
Sunday, April 9, 2017
Put the brakes on SoBs already
An efficient and effective banking system can be the engine of growth in Bangladesh
Photo shows the main entrance to Sonali Bank office at Motijheel in Dhaka
dhaka tribune
• M Shamsul Haque
An efficient and effective banking
system is essential to serve the
country for the maximum benefits
to the people. Banks are economic
power houses and they create value
for its clients -- borrowers and
lenders; that ultimately translates
into GDP growth. It is known that
in the system of national income
accounting, no value addition is
Now that a decision has been made to privatise these SoBs,
as has been announced by the finance minister, delaying the
process will simply cause lost opportunity for growth which
the country needs badly
derived from the banking industry
as they simply transfer funds from
depositors to borrowers, who need
funds for longer term investment
in projects.
For this valuable service, banks
are allowed to be set up and operated
on a very small amount of
equity capital from the owners.
Unlike other businesses in manufacturing
and services, banks operate
with about 10% equity and 90%
debt, which is undoubtedly a risky
structure and that is why banks are
closely supervised by the central
banks and market players.
As noted in the paper (mentioned
below) from the reaction
of governments in the financial
crisis of 2008: “There was serious
concern that the banking industries
of Wall Street and the City of
London were going to collapse into
piles of smoking rubble.” Rescue
efforts were undertaken through
what was known as Quantitative
Easing QE, injecting liquidity from
the central banks. Those were private
sectors banks with sound
management structure and they
repaid public money within a few
years and restored the banking system
to some degree of satisfactory
operating conditions under much
closer supervision by regulatory
agencies.
A very interesting paper has
been published in the Dhaka Tribune
on April 2, 2017 on “Who to sell
the state owned banks” in Bangladesh
as they have been losing money
for a long time. Not only that
these banks have no capital of their
own, but they have also been given
funds from the annual budget
of the government. Where does
the government of Bangladesh
get such funds to contribute to
the state owned banks? It gets the
funds from the tax the people pay
for public services (not disservices
as these banks have been engaged
in scams); and we can also say it's
from the tax that other banks in the
private sector pay.
It is this cross-subsidisation
that is causing great harm to the
economy, as banks can not reduce
the cost of borrowing to the investors
for financing new projects
that would increase employment
of more people and produce more
goods and services; and hence increase
GDP growth rate. This drag
on the economy must be withdrawn
to free other banks and the
banking system to make their valuable
contribution to economic
growth. The rate of unemployment
among the youth of the country
(about 40% as noted by ILO) can
easily influence some to engage in
illegal activities including terrorism.
Now that a decision has been
made to privatise these SoBs, as
has been announced by the finance
minister, delaying the process will
simply cause lost opportunity for
growth which the country needs
badly.
The paper by Tim Worstall of
Adam Smith Institute of London
has narrated quite elaborately (and
sometimes sarcastically) that why
we bother who buys these banks.
He expressed great confidence in
the markets, except that we don’t
sell them to crooks or to increase
monopoly power in the industry.
The paper quoted the Nobel Laureate
Ronald Coase saying in a free
market economy assets should
flow to those who value them
most; to those who can make the
most profit from them.
The main objective is to get the
burden off the people. Earlier there
were some efforts to sell those
banks but it did not happen. Tim
suggested conducting an auction
on these banks and let markets
sort that out as we have quite active
players in the banking sector
now. •
M Shamsul Haque is a professor of
finance at NUB.

8
Sunday, April 9, 2017
DT
OPINION
The long road to cleaning it up
A long-dead Belarussian economist can explain a few things about Hazaribagh
THE lAST
WORD
• Tim Worstall
Excellent news: Hazaribagh tanneries
are finally shut down.
At least that’s what we’re being
told, that the police have started
acting upon the Supreme Court’s
order that Thursday was it, that
was the last day.
Close down, move off, go to the
new site at Savar but just stop polluting
the centre of Dhaka, whatever
else you do.
The interesting question here
though is: Why did it take so long?
The answer coming from a longdead
Belarusian called Simon
Kuznets who had absolutely no
knowledge of the Dhaka tanneries
at all.
We all know that this case has
been rumbling along for years
with various back and forths to the
courts, appeals to the public and
so on. But other than the process
itself, why did it take so long to get
such a stinking, polluting, industry
out of the centre of the capital city?
The answer is that Bangladesh
was poor, very poor, and now it isn’t.
Which is where Kuznets comes in.
He noted that as societies develop,
they become more unequal.
When we’re all Stone Age tribesmen,
we are all pretty economically
equal in that none of us has anything
other than perhaps a change
of loincloth. Development means
that inequality is even possible,
and so it arises.
But at some point, that inequality
starts to fall again.
Some of our greater wealth is
spent on lifting up the poor, not
just adorning the rich even more.
This idea was extended to the
environmental curve. A very poor
society will be rather clean because
there’s no one actually doing anything
which produces pollution.
As we get richer, we learn how to
make things. Making things often
produces pollution.
We should note that knowing
how to and actually making things
is also the definition of getting richer,
they’re the same process.
For example, millennia back
when we didn’t know how to tan
hides there was no pollution from
tanneries. Then when we did learn
how to then there was such pollution.
But we are richer by being
able to have leather, thus we put
up with the pollution.
But Kuznets went on to point
Men seen working at a Hazaribagh tannery
But Kuznets went on to point out that pollution is as with inequality. At some
point, we say that we’re rich enough now that we’d like to have a little less of
that pollution thank you very much
out that pollution is as with inequality.
At some point, we say that
we’re rich enough now that we’d
like to have a little less of that pollution
thank you very much.
We’re prepared to spend some
of our higher incomes on slightly
more expensive methods of doing
things which don’t pollute so
much.
This all seems intuitively true.
When we’re so poor that we don’t
know where the next meal is coming
from, who cares whether the
river has an odd smell to it? That
we create the smell by doing something
that enables us to eat seems
like a good trade off. But there
comes a point where we are being
fed, perhaps not perfectly but adequately,
and we start to think that
a stinking reeking mess would be
better turned back into a nice clean
river again.
It’s also empirically true that
this happens. There’s no hard and
fast law about it, true, but watching
the world tells us that this is true.
The air in London is, despite there
being 10 million people there now
not 100,000, vastly cleaner than it
was in 1550.
The Thames, the river through
London, was entirely dead by 1850.
It was an open sewer with nothing
but microbes living in it. It now has
salmon swimming in it again, fish
famously intolerant of pollution of
any kind.
And yes, tanneries have been
the early stages of this sort of
change since whenever. They really
are stinking, reeking places and
they’re almost always the first places
moved out of town, and the first
in line for us to insist upon cleaner,
if slightly more expensive, production
methods.
Various people have tried to
work out when this change happens,
answers ranging from perhaps
GDP per capita of $8,000 a
year to $6,000. This is a level far
above that of Bangladesh at the
moment, at least double when
we measure it properly by what
money will buy rather than the exchange
rate. So why is it happening
now then?
The first answer is that Bangladesh
is now very much richer than
it used to be. That 5% and 6% GDP
per capita growth over a couple
of decades does add up. Pollution
that would be tolerated now will
not be, as Kuznets points out.
We can even run the logic the
other way around, that we are having
this insistence on a cleaner environment
is proof that we’re getting
richer.
But why is it kicking in now, at
this lower level than it did in other
places? Part of that is that tanneries
are, as above, always the first places
to be told to move along and get
with the program.
But a good part of it is that
we’re now richer at any level of
income than we used to be. We
could also say that our inflation
measurements aren’t quite right.
Things like vaccinations, water purification,
the absence of cholera
dhaka tribune
-- they’re not properly reflected in
the monetary standards that we
use to measure incomes. Meaning
that that $6,000 to $8,000, what
used to be the turning point of the
Kuznets Curve, is now rather lower
in modern money, around $3,000
or $4,000 perhaps, which is where
Dhaka at least is when we measure
incomes properly. (Technically,
we use purchasing power parity,
not market exchange rates. Don’t
worry, it means we’re trying to adjust
for different prices in different
places, so we can measure real living
standards. The dollar to taka
PPP rate is about three times the
market one.)
And that has a greater importance.
Because the thing that usually
comes immediately after the
tanneries get told to clean up or
clear out is that we spend on cleaning
up air pollution. Something we
all rather look forward to, no? •
Tim Worstall is a Senior Fellow at the
Adam Smith Institute in London.