e_Paper, Wednesday, May 3, 2017

DT
10
Business
WEDNESDAY, MAY 3, 2017
CAPITAL MARKET SNAPSHOT: TUESDAY
DSE Broad Index 5,521.4 0.8% ▼ Index 1,274.6 0.8% ▼ 30 Index 2,032.4 0.8% ▼ Turnover in Mn Tk 7,742.8 25.9% ▼ Turnover in Mn Vol 241.2 24.4% ▼
CSE All Share Index 17,107.0 0.7% ▼ 30 Index 15,109.4 0.2% ▼ Selected Index 10,373.7 0.7% ▼ Turnover in Mn Tk 461.4 24.3% ▼ Turnover in Mn Vol 16.3 15.1% ▼
BB fears pressure on forex
reserves to rise further
• Asif Showkat Kallol
Bangladesh Bank fears that pressure
on the country’s foreign exchange
reserves will increase if the
government approves overseas equity
investment by the local firms.
Bank and Financial Institutions
Division said it is not clear whether
the local firms may return home
their equity investment.
The central bank feared the
pressure on foreign exchange reserves
as Akij Group, Nitol Niloy
Group and Ha-Meem Group are
now interested to invest overseas.
Local firms’ investment proposals
in aboard will go to the Cabinet
Committee on Economic Affairs as
the Bank and Financial Institutions
Division did not take decision for
its own in this matter.
Bank and Financial Institutions
Division has forwarded the Bangladesh
Bank proposals to the cabinet
committee.
Bank Division’s proposal will be
placed at a meeting of the Cabinet
Committee on Economic Affairs
next week as Finance Minister
AMA Muhith is going to Japan this
week to attend the annual meeting
of the Asian Development Bank.
Akij Group has proposed to invest
$20m in Malaysia, Ha-Meem
Group $10m in Haiti and Nitol Niloy
$7m in Gambia.
Ha-Meem intends to invest in
the island nation’s garment sector
to prop up its shipments to the US,
while Akij Group wants to buy a Malaysian
company that produce fire
board and hardboard. Nitol Niloy
plans to in Gambia’s banking sector.
The proposal said the local investors
are not interested to invest in
the country and thus the additional
liquidity stands at Tk2,77,956.29
crore in the banking sector.
But the Bangladesh needs invest
32% of GDP locally to achieve targeted
economic growth.
In the proposal, Bangladesh
Bank said Bangladeshis firms are
capable and has capacity to invest
on foreign lands.
As funds are being spent to import
fuel oil and capital machinery
along with consumer products, the
growth foreign exchange reserves
becomes slow.
Deficit in the balance of payment
stood at $ 790m at the end of
December 2016. Foreign exchange
reserves now stood at around
$33bn -- enough to honour at least
7-8 months’ import bills.
Bangladesh Bank hopes that
there will be new frontier of export
earning if Bangladeshi businessmen
invest overseas.
There is a possibility that the
three firms will return home some
foreign earning.
Usually, Bangladesh Bank has
examined four matters including ensuring
foreign exchange funds will be
used in the specific foreign projects
and get back foreign exchange funds.
The country will financially
benefit from the local firms’ foreign
investment.
Besides, the government will form
a $10bn sovereign funds from the
Bangladesh Bank foreign exchange
reserves which also put a pressure on
foreign exchange reserves.
Dr AB Mirza Azizul Islam, former
finance adviser to Caretaker
Government, told Dhaka Tribune
that Bangladesh Bank has shifted
its responsibility to the cabinet
committee for approval of the
firms’ investment plans in aboard.
He criticised Bangladesh Bank to
forward the proposal to government
and avoid making decision although
there is a committee concerned to
handle such types of matters. •
Govt to update
labour law
• Tribune Business Desk
State Minister for Labour Mujibul
Haque Chunnu yesterday
said the government will bring
amendments to the labour law to
make it updated and efficient, reports
BSS.
“We have to ensure quick justice
for people through labour courts.
We are increasing the number of
courts and have already taken a
decision to establish labour courts
in Sylhet and Rangpur,” he told a
seminar in the city.
Former judge of the Appellate
Division Justice Nizamul Haque
presided over the seminar on the
role of ADR (alternative dispute
resolution) in quick disposal of cases
in labour courts at National Press
Club VIP Lounge.
The seminar was, among others,
addressed by the Department
of Inspection for Factories and
Establishments Director General
Shamsuzzaman Bhuiyan and Department
of Labour Director Abu
Hena Mostafa Kamal. •
During the third quarter, the highest number of investment proposals came to the
service sector of the country
DHAKA TRIBUNE
BIDA receives 45%
less investment
proposals in Q3
• Shariful Islam
Investment proposals by companies
registered with Bangladesh Investment
Development Authority
(BIDA) has fallen by 45.88% during
January to March month of the current
fiscal year 2016-17.
According to the latest BIDA
data released yesterday, during
the period, a total of 510 industrial
units were registered with BIDA for
investment.
The highest number
of proposals came
for the service
industrial sector
which was 31.15% of
the total proposed
amount during the
month of January to
March
In the three months, 510 industrial
units submitted proposals for
investing a total of Tk37,217 crore
and 4.3m while 487 industrial units
proposed for investing Tk68,767
crore and 6.1m during October to
December period, said BIDA data.
The data also showed local investment
proposals rose by 28.80%
during third quarter while BIDA received
proposals for investing a total
of Tk29,680.16 crore from local
entrepreneurs for investing in 469
industrial units.
The proposed amount by local
investors was Tk23,044.13 crore for
444 industrial units during second
quarter.
During the third quarter, BIDA
also received proposals of a total of
Tk7537.27 crore from foreign investors
for investing in 20 fully foreign
owned industrial units and 21 joint
venture units with local entrepreneurs.
According to BIDA, the highest
number of proposals came for the
service industrial sector which
was 31.15% of the total proposed
amount during the month of January
to March.
The chemical industries came
next with 17.58% followed by textile
with 10.51%, food and allied
12.52%, Engineering 4.76% and
others 23.48% during the Q3.
In another development of the
day, the first meeting for formulating
a policy for Bangladeshi entrepreneurs’
investment abroad was
held at BIDA Board Room, said a
BIDA press release.
BIDA Executive Member Ajit Kumar
Paul presided over the meeting
while Bangladesh Bank General
Manager ANM Abul Kashem, first
secretary (Tax) of National Board
of Revenue (NBR) Iqbal Bahar and
Foreign Ministry’s Economic Affairs
Director Md Rashedujjaman
were, among others, present at the
programme.
Paul said they are thinking positively
about Bangladeshi investors’
investment in abroad.
“If we find that making investment
abroad will bring higher returns,
we will suggest allowing
overseas investment,” he said.
Paul said they will soon start
scrutiny of the policies followed by
other countries in this case. •