e_Paper 24-04-2017

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DT 10 Business MONDAY, APRIL 24, 2017 CAPITAL MARKET SNAPSHOT: SUNDAY DSE Broad Index 5,438.2 -1.5% ▼ Index 1,262.6 -0.8% ▼ 30 Index 2,024.5 -1.3% ▼ Turnover in Mn Tk 5,062.3 -9.3% ▼ Turnover in Mn Vol 163.0 -10.6% ▼ CSE All Share Index 16,842.0 -1.5% ▼ 30 Index 15,085.1 -1.4% ▼ Selected Index 10,214.7 -1.5% ▼ Turnover in Mn Tk 343.2 -36.1% ▼ Turnover in Mn Vol 13.6 -23.1% ▼ ‘A $5 shirt at source level retailed at $25’ • Shariful Islam Bangladesh economists and manufacturers urged the international buyers to deconstruct the current value chain of Bangladeshi apparel products to ensure better price. “The country’s garment sector operates in a deeply unjust global value chain where a $5 shirt made in Bangladesh is sold at $25 at Wal Mart stores or at much higher prices in countries such as Sweden,” said eminent economist Prof Rehman Sobhan. “Where exactly does the $20 go? Is this a natural working of the market mechanism or a manifestation of an unjust global order?,” he questioned while addressing a seminar styled as “Catalysing social dialogue in the RMG sector of Bangladesh” held at hotel in Dhaka yesterday. Centre for Policy Dialogue (CPD) and International Labour Organisation (ILO) jointly organised the event marking the fourth anniversary of Rana Plaza tragedy. Distinguished Fellow of CPD Debapriya Bhattacharya moderated the discussion while Secretary of Ministry of Labour and Employment (MoLE) Mikail Shipar, Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mahmud Hasan Khan Babu, President of National Garments Workers Federation (NGWF) Amirul Haque Amin and Secretary General of Bangladesh Trade Union Shangha (BTUS) Chowdhury Ashiqul Alam spoke, among others. Economists Prof Rehman Sobhan and CPD Distinguished Fellow Dr Debapriya Bhattacharya speak at a seminar marking the fourth anniversay of Rana Plaza tragedy in Dhaka yesterday RAJIB DHAR Rehman Sobhan said the current business model forces suppliers to squeeze their workers as much as they can as they would have to produce the shirt within $5. “Unless there is a major investigation of professional nature, political nature and in the end of the day international nature, the Oxfam and Action Aid, and everyone has to join together to deconstruct the value chain,” he added. Former President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Haque said: “Selling a product by $5, we, the manufacturers have to give all the detail information how the price comes at $4.95 not $4.75, what is the costing of factory, what is the costing of labour, what is my profit; each and everything, that buyers called, ‘open costing’.” “I would like to request the international buyers only one thing: just mention in your products tag that the selling price of the product is $25, while the buying price was $3 or $4 or $5. I think, if you (buyers) can do this, all the problems will be solved regarding unjust value chain,” he said. BGMEA Vice President Mahmud Hasan Khan Babu said the buyers threatened Bangladeshi manufacturers to shift their sourcing in other competitor countries, while they demanded a just value chain. According to a study on “Prices and Development in the Global Apparel Industry: Bangladesh in Comparative Perspective”, prices of men and boys cotton trousers exported to the US market declined by 40.89% in the last 14 years. Mark Anner, associate professor at the Penn State University, conducted the study. • Denmark wants to help BD in sustainable production • Tribune Business Desk Danish business people want to contribute to Bangladesh with more sustainable production especially in the ready-made garment sector. A business delegation from Denmark is currently visiting Bangladesh. The delegation consists of 19 leading Danish companies in renewable energy, energy efficiency and efficient water management sectors. The main focus will be the RMG sector in which green Danish solutions can add to more sustainable production. The delegation will also take part in the upcoming Green Growth Conference in Dhaka. “Private companies from the Danish energy sector can play a vital role in the sustainable development of this country. Sustainable solutions are demanded in the garment sector and we hope that this introduction will lead to some good business partnerships and ultimately to more sustainable production,” said Søren Robenhagen, commercial counsellor at the Danish Embassy in Dhaka. The Embassy of Denmark and the Danish company, Andersen Consult, formed the business delegation also known as Danida Business Delegation. •

NBR: Upcoming budget to be investment-friendly • Anwar Hussain, Chittagong NBR Chairman Md Nojibur Rahman has said the upcoming budget would be pro-people and investment-friendly. “The budget is going to be more business-friendly. This time it will be production-oriented as well,” the NBR chief said while addressing a pre-budget meeting with the Chittagong Chamber of Commerce and Industry (CCCI) yesterday. The CCCI organised the view-exchange meeting at Bangabandhu Conference Hall of World Trade Centre in the city. “We have received a number of directives from Prime Minister Sheikh Hasina for the upcoming budget. We would like to assure you that the forthcoming budget will protect local industries,” Nojibur said, adding that they would continue to give incentives to the export-oriented industries. The revenue boss noted that the upcoming budget would specially focus on generating employment PRAN confectionery launches Cricket Gum • Tribune Business Desk Cricket Gum, a new product of PRAN Confectionery Limited, was launched at a function at PRAN- RFL Center yesterday. Bangladesh cricketers Mehedi Hasan Miraz and Imrul Kayes unveiled the new product as brand ambassadors. Before the launch, the two young cricketers – Miraz and Kayes – signed agreements as brand ambassadors of the Cricket Gum. Under the agreement, the two cricketers will perform in different promotional activities of the product for next two years. Saiful Islam, Chief Operating Officer of PRAN Confectionery Limited, said: “We launched the product considering consumers interest and taste. Cricket gum, made by mixed fruit flavour, is now available in the market, in future it will be exported.” About their association with the brand, Miraz and Kayes said they are glad to get the opportunity to work with this brand and will try to take this brand forward. Shakhawat Ahamed, head of Marketing, and Sazzad Hossain, brand manager of PRAN Confectionery, were present on the occasion. • in the country. Referring to the new VAT law which is going to be effective from July 1, he said it would be much more business and investment-friendly. “Now we are making a list of tax waiver. The new VAT law will be implemented protecting the interest of general people. With the implantation of new law, there will be scope of giving incentives to different sectors,” said the NBR Chairman. “There are some flaws in the VAT Act 1991. The new Vat law will be online-based,” said Nojibur. Replacing the existing VAT Act 1991, the VAT and Supplementary Duty Act 2012 has been framed at the prescription of the International Monetary Fund (IMF). The new VAT law envisages a flat 15% value added tax rate, replacing different VAT rates now in force for goods and services. While placing recommendations for the national budget for Fiscal Year 2016-17, Mahbubul Alam, on behalf of the CCCI, proposed to fix Business 11 MONDAY, APRIL 24, 2017 IMF members set aside trade split as French vote rattles nerves • Reuters, Washington International Monetary Fund members on Saturday dropped a pledge to fight protectionism amid a split over trade policy and turned their attention to another looming threat to global economic integration: the first round of France’s presidential election. Concerns that far-right leader Marine Le Pen and far-left rival Jean-Luc Mélenchon, both critics of the European Union, could top the field in Sunday’s vote added to nervousness over US trade policy at the IMF and World Bank spring meetings. “There was a clear recognition in the room that we have probably moved from high financial and economic risks to more geopolitical risks,” IMF Managing Director Christine Lagarde told a news conference. Lagarde, a former French finance minister who has warned that a Le Pen presidency could lead to political and economic upheaval, added that a policy shift from “growth momentum to more sharing and inclusive growth” was now needed. A communique from the IMF’s steering committee on Saturday dropped an anti-protectionism pledge, adopting language from the Group of 20 nations that the Trump administration sought last month in Germany as it develops a strategy to the Vat rate at between 7%-10%. Airing his grievances over the VAT rate at 15%, the trade body leader said: “The VAT rate is too high and it has an adverse impact directly on the national price level. The VAT rate is comparatively low in other countries.” Mahbub also called for construction of Bay Terminal without further delay to enhance the capacity of Chittagong Port. Pointing to the perennial water-logging problem of the port city, the CCCI president said the traders of Chaktai-Khatunganj wholesale market incurs astronomical losses every year due to water congestion. “Chaktai canal is considered the lifeline of the city as it is the main drainage of all rainwater of the city along with the usual sewage outlets,” said the CCCI president. The canal, however, has now become choked with solid waste and filth, he added, calling for an allocation of special fund in the upcoming budget to protect the century-old business hub. • slash US trade deficits. Earlier in the week, the IMF had warned that protectionist policies that restrict trade could choke off improving global growth. Instead, the International Monetary and Financial Committee (IMFC) statement pledged that members would “work together” to reduce global trade and current account imbalances “through appropriate policies.” Mexican central bank chief Agustin Carstens, the IMFC chairman, said most countries have some trade restrictions and that protectionism Grameenphone posts 65% growth in data revenue • Ishtiaq Husain Grameenphone Ltd has earned 64.9% growth in data revenue while its voice revenue grew by 7.1% for the first quarter of 2017. The operator reported a revenue of Tk3,060 crore, an 11.1% growth from the same period last year, Grameenphone said at a press release. The operator disclosed the Q1 financial report on Sunday. In his statement, GP CEO Petter Furberg said the company passed a good quarter with healthy performance to start the year. “Our data as well voice revenue continues to grow with healthy momentum and this is an encouraging sign for us that our commitment towards providing superior network quality and simple offers are creating greater value for our valued subscribers.” The market leader of telecom business ended the quarter with 59.9 million active subscribers, registering a 3.3% growth from last quarter. The company also acquired 0.7 million internet users during the period, taking the quarter-end was an “ambiguous” term. “Instead of dwelling on what that concept means, we managed to put it in a more positive, more constructive framework,” Carstens told a news conference. Some officials chose to focus on the brightening global economy instead of the risks posed by the French election, new U.S. trade barriers and Britain’s decision to leave the European Union, said James Boughton, a former IMF official. “There’s an awful lot of forced optimism about what these people are saying,” said Boughton, who is now DT base to 25.2 million. With this, 42.2% of total subscribers are using Grameenphone internet services. According to Dilip Pal, CFO of Grameenphone, the phone company reported healthy earnings driven by top-line growth and operational efficiency initiatives. “The result of this quarter is a testimony that securing potential growth along with operating efficiency is key to driving future profitability for the company.” Net profit after taxes for the quarter was Tk660 crore with 21.4% margin compared to Tk560 crore with 20.4% margin of the corresponding period of 2016. GP invested Tk450 crore during the quarter for 3G as well 2G coverage expansion and capacity enhancement of voice. It added 238 2G and 776 3G sites, taking the cumulative site numbers to 12,222 for 2G and 11,332 for 3G. With this, the company is covering more than 99% population for 2G and more than 91% for 3G. During the quarter, the company contributed to exchequer Tk1,180 crore. • Finance ministers and bank governors pose for a ‘family’ photo for the International Monetary and Financial Committee (IMFC), as part of the IMF and World Bank’s 2017 Annual Spring Meetings, in Washing REUTERS with the Centre for International Governance Innovation, a Canadian think-tank. “Until the train goes off the tracks, everything looks fine.” US Treasury Secretary Steven Mnuchin called for the IMF to step up its surveillance of members’ foreign exchange rates. President Donald Trump “believes in reciprocal trade deals and reciprocal free trade,” Mnuchin told Lagarde in an on-stage interview. “What that means is that if our markets are open there should be a reciprocal nature to other markets which should be open as well.” •

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Page 3 and 4: Workplace safety in govt-inspected

Page 5 and 6: Mayors lock horns over coloured bus

Page 7 and 8: Prof Rezaul’s colleagues, student

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Page 13 and 14: Opinion 13 DT MONDAY, APRIL 24, 201

Page 15 and 16: Stitched in woe Opinion 15 DT MONDA

Page 17 and 18: What’s on 17 MONDAY, APRIL 24, 20

Page 19 and 20: Sports 19 DT MONDAY, APRIL 24, 2017

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Page 23 and 24: Aynabaji on TV Showtime 23 MONDAY,

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