Bangladesh’s economy slowly recovering

According to a Euromoney Trade Finance Study 2023, The Hongkong and Shanghai Banking Corporation Limited (HSBC) is the “Market Leader” in Bangladesh.

In addition, the poll revealed that HSBC leads the world in trade financing and holds the top positions in Asia Pacific, Latin America, North America, and the Middle East.

Euromoney is an English-language monthly magazine focused on business and finance. The survey findings are based on a poll conducted among the businesses engaged in international trade, says a press release yesterday.

The chief executive of HSBC Bangladesh, Md. Mahbub ur Rahman, stated that the company aims to remain the top trade bank while meeting the demands of its clients and introducing them to a wide range of prospects.

In order to ensure macroeconomic stability, economists advise the government to include fresh measures in the national budget for the upcoming fiscal 2023–2024 while continuing the Covid stimulus package.

A wealth tax was suggested by economists as a way to lessen inequality, along with significant government involvement in healthcare and education. A finance or bank commission was also suggested as a way to maintain financial sector stability.
The experts also recommended tax system changes to raise the tax-to-GDP ratio, which is now at 8% and is the lowest among South Asian nations. The recommendations also called for the removal of regulatory duties on imports and the implementation of a pricing policy for consumer goods.

Economic experts also suggested large-scale efforts to ensure the quality of public healthcare and education establishing a finance or bank commission to ensure financial sector stability changes to the tax code that would raise the tax-to-GDP ratio introduction of a consumer goods pricing policy removal of regulatory import taxes.

The top 10 traditional items continue to account for the majority of export revenues, and their contributions to overall exports are essentially stable, even though experts and the government are working on diversifying the readymade garment industry.

According to figures from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the top 10 clothing exports, which made up 68.38% of all RMG export revenues in 2021, brought in $24.49 billion for the nation. Nonetheless, BGMEA asserted that they had already started to reap the rewards of creating high-value goods. The sector can increase earnings from various products if the government keeps implementing supportive policies.

Additionally, they stated that as a result of the activities, the top ten apparel export ratio fell marginally to 67.70% in 2022 when compared to the total RMG exports for the year.

The bank lending cap is being abolished as Bangladesh Bank finally resolves to reverse the crisis-era measure and grant bankers their long-desired rise in profitability. Bankers lamented the fact that are operating under two set interest brackets—rates on loans given by banks and on deposits, they accept from customers—inflationary pressure on their revenues was eroding their profit margins.

The central bank will establish a market-based reference rate under the interest rate-corridor method for the banks to fix the loan rate based on the benchmark rate in place of the lending rate cap of 9.0 percent, which was imposed in April 2020, the BB sources said. The NBR fell behind in the first eight months of the current fiscal year in income and travel taxes by a total of Tk 3,425 crore, followed by Tk 5,738 crore in local VAT and Tk 13,814 crore in import revenue, per the data. The revenue board received Tk 76,401 crore from local VAT during that time, Tk 60,437 crore from income and travel taxes, and Tk 59,198 crore from import duties.

An agreement between Eastern Bank Ltd (EBL) and Renaissance Dhaka Gulshan Hotel has been signed. Holders of EBL cards are eligible for exclusive perks at the hotel under this contract.

A customer benefit agreement was recently signed in Dhaka by Md Bin Mazid Khan, head of Bancassurance, Student Banking & Retail Propositions at Eastern Bank Ltd (EBL), and Noeke Kusuma, general manager of Renaissance Dhaka Gulshan Hotel. Among those present at the event were Syed Yameenul Huq, director, of Sales and Marketing of Renaissance Dhaka Gulshan Hotel, and Md Al-Amin, hotel manager and in-charge of Sales and Marketing.

Source for more insights:

The Business Standard

Bangladesh Telecommunications Regulatory Committee (BTRC) has cancelled the license of the country’s first cellular corporation Citycell. Even though the license for 2G mobile phones was set to expire on November 10, 2026, the firm was notified of this decision via mail on Wednesday.

Citycell owes more than 218 crores to BTRC. As a result, the business is required to provide indemnification in the form of a late fee, which would apply until the delayed repayment is made. The Posts and Telecommunications Division was kindly requested to approve the BTRC’s proposal to cancel the license at the end of January 2022.

BTRC Chairman Shyam Sunder Sikder said that they have sued Citycell on the basis of the default in both civil and criminal court. They also have another thing coming if they believe they can avoid paying back the money and believe the punishment only involves having their license suspended.

Source for more insights:

The Business Post