South Korea Interested in Investing Jute and Leather Sectors

The Bangladeshi government has suspended its recent decision to sharply increase export fees on raw jute and jute products after significant backlash from industry players. The fee for raw jute exports was set to rise from Tk 2 to Tk 7 per bale, and for jute products from Tk 0.10 to Tk 0.50 per Tk 100—marking a substantial jump after 30 years.

Four state-owned enterprises (SoEs) in Bangladesh reported cumulative losses of Tk 28,238 crore over 28 years due to inefficiencies. The Bangladesh Jute Mills Corporation (BJMC) closed 25 mills in 2020, incurring Tk 9,497 crore in losses over 28 years, with profits reported only once.

Dhaka Bank PLC signed a memorandum of understanding (MoU) with Dhaka South City Corporation (DSCC) on November 22 to streamline the collection of holding tax and trade licence fees. Under the agreement, the bank will integrate with DSCC servers via API connectivity, enabling residents to pay taxes and fees at designated branches, sub-branches, and five newly established collection booths at Nagar Bhaban and zonal offices during the first phase.

Moody's downgraded Bangladesh's sovereign rating from B1 to B2, shifting its outlook to negative, citing heightened political risks and potential economic slowdown. However, Bangladesh Bank (BB) criticized the downgrade, labeling it as retrospective and not reflective of current progress.

Following the fall of the previous government, over 343 influential individuals and organizations have had their bank accounts frozen, totaling Tk 14,500 crore, due to allegations of suspicious transactions and money laundering. The Bangladesh Financial Intelligence Unit (BFIU), in collaboration with the NBR and ACC, has already submitted 225 investigation reports, with 20 audits completed.

Bangladesh's leather footwear exports reached $228.47 million during the July-October 2024 period, marking a five-year high and a 9% increase from $182.11 million in the same period of 2023, according to the Export Promotion Bureau. This growth is attributed to competitive labor costs and orders shifting from China due to its rising production costs.