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Daily News Recap
Thursday, June 4, 2015
Mega budget to see a mix of fiscal measures
Finance Minister AMA Muhith will unveil in parliament today (Thursday) the national budget for
the fiscal year (FY) 2015-16 with an enhanced outlay of around Tk 2.95 trillion. The budget,
according to available indications, despite its record size is unlikely to spring any major surprises.
However, the corporate world, in all likelihood, will see a cut in their income tax rates. The taxexempted income ceiling of individuals and women taxpayers may be raised keeping in view the
current price situation.
The duty rates of some of the consumers' items are likely to be revised both upward and
downward. Source tax of the export-oriented may also see a raise this time. As estimated, this
budget is going to set a record in terms of the gross domestic product (GDP) as its outlay size
will be nearly 17 per cent of the country's total GDP. The budget envisages a 5.0 per cent overall
deficit and the gap between estimated expenditure and income is to be funded mostly from
domestic sources- both banking and non-banking.
http://www.thefinancialexpress-bd.com/2015/06/04/95237
Duty on sugar, capital machinery set to go up
The budget for upcoming fiscal year (FY) is likely to propose an increase in import duty on both
raw and refined sugar, capital machinery and impose tax on talk-time of mobile phone
subscribers.
A number of imported items, nearly 381, may also see a cut in the Supplementary Duty (SD)
rates during the upcoming FY. Tax on tobacco items may also see a hike in the upcoming FY.
Tax-free ceiling for individual taxpayers may be set at Tk 2,50,000. However, it would be Tk
3,00,000 for women taxpayers. Source tax for apparel industry may be raised to 1.0 per cent on
export bill against existing 0.30 per cent in the upcoming FY.
http://www.thefinancialexpress-bd.com/2015/06/04/95238
Power sector project allocation to double
The government is set to double the allocation for power sector projects for implementation under
the Annual Development Programme (ADP) during the next fiscal year (FY), 2015-16. However,
the sector's performance in the outgoing FY falls far behind the target, said officials. The
government is set to allocate Tk 164.85 billion in the ADP for FY 2016 to execute some 66 projects
of power sector, against the outgoing FY's allocation of Tk 82.84 billion to implement 69 projects.
Under the FY 2016 allocation, the Division has set a target to collect the lion's share of the fund,
worth Tk 91.85 billion, from the foreign lending and donor agencies, and Tk 73 billion from the
government fund. The government also plans to allocate Tk 19.83 billion, including a block
allocation of Tk 108.4 million, to the state-owned corporations and their subsidiaries under the
Energy Division for implementation of 22 projects. The power sector projects planned for
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
implementation during FY 2016 include 20 power generation projects, eight power transmission
projects, 33 power distribution projects and five technical projects.
http://www.thefinancialexpress-bd.com/2015/06/04/95248
Tk 383b bank borrowing likely to finance budget deficit
The government is likely to set its target of borrowing from the banking system at Tk 383 billion
to finance the budget deficit partly for the next fiscal year (FY) 2015-16, officials said. "The
government will borrow the money from all the scheduled banks through issuing Treasury Bills
(T-bills) and Bangladesh Government Treasury Bonds (BGTBs) to finance partly its would-be
budget deficit - the difference between its overall expenditure and revenue and other receipts for the FY 16," a senior official associated with public debt management-related activities told the
FE Wednesday.
He also said the government's budgetary expenditure may rise as implementation of different
development projects, particularly the infrastructural ones, will be strengthened in the next fiscal
year. However, the government's net bank borrowing is still at a negative level worth Tk 4.24
billion as on May 19 last due mainly to abnormal growth of the savings certificate sales. The
government earlier targeted borrowing of a total Tk 312.21 billion from the banking system
through T-bills and BGTBs for part-financing of the budget deficit for the FY 15.
http://www.thefinancialexpress-bd.com/2015/06/04/95249
Indian insurer allowed to expand into B'desh
India's biggest insurer LIC has finally received green signal from the insurance regulator to
operate in Bangladesh, allowing the company to expand its international footprint, an official said.
Founded in 1956, the Mumbai-based Life Insurance Corporation of India (LIC) got the licence on
May 31 under which it will have controlling stakes in its potential local suitor.
The company's paid up capital will be Tk 1.0 billion under a new requirement for attracting
renowned foreign life insurance companies. The IDRA revised the paid-up capital requirement
in its latest move to attract the foreign investors in Bangladesh's insurance industry.
http://www.thefinancialexpress-bd.com/2015/06/04/95212
Govt to fix export target at $ 33.65b for next FY
The government is set to fix the country's export target at US$ 33.65 billion for the upcoming
fiscal year (FY) projecting a single-digit growth for the first time in many years, a high official at
the ministry of commerce (MoC) said.
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
The Export Promotion Bureau (EPB) under the MoC has projected the target for the FY 2015-16
which sees a 7.49 per cent or 2.35 billion rise over the estimated achievement of the current FY.
EPB data showed that the projected growth in annual export target was 9.98 per cent in the FY
2014-15, 12.85 per cent in 2013-14, 15.22 per cent in FY 2012-13, 15.58 per cent in FY 2011-12
and 14.16 per cent in FY 2010-11.
www.thefinancialexpress-bd.com/2015/06/04/95213
One-fourth of RHD budget for FY2015-16 for only six projects
The Roads and Highways Department (RHD) is expected to spend one-fourth of its budget
allocation in the upcoming fiscal year for its only six of 17 big projects as these are to be
completed by June next year. According to RHD, of these projects, the highest allocation has
been given to the Tk 32 billion Dhaka-Chittagong four-lane project, followed by Tk 18.15 billion
Joydevpur-Mymensingh four-lane project.
"These projects will be completed in the next fiscal year. So the entire fund for the projects will
have to be released by the end of next June taking significant portion of the RHD budget," said
an official of the planning section. Officials said in the FY 2015-16, highest Tk 9.15 billion was
allotted for the Dhaka-Chittagong four lane project, followed by 2.7 billion for JoydevpurMymensingh four lane and Tk 877.3 million for Eastern Bangladesh bridge improvement project.
The three other big projects to be completed during the period are 'Completion of Incomplete
Bridge and Culvert project,' 'the 7th Bangladesh-China Friendship Bridge (Kazirtake bridge over
Arial Khan river)' and 'Construction and Rehabilitation of Ferry and Pontoon projects' which are
also expected to get over Tk 1.0 billion. In the upcoming FY, the RHD is expected to get Tk 52.35
billion for implementing a total of 17 big projects and 91 other projects. Of the total allocation, the
RHD will have to spend Tk 13.97 billion for these six big projects.
http://www.thefinancialexpress-bd.com/2015/06/04/95219
RMG park construction starts in Sept
The government will start construction of a RMG industrial park in Munshiganj in September, as
the Chinese construction firm concerned submitted its feasibility report to the government on
Tuesday. "We hope to start construction work of the proposed garment industrial park at Baushia
in Munshiganj from September," Ministry of Commerce senior secretary Hedayetullah Al Mamoon
told the FE. The RMG industrial park will be built on 492 acres of land, and it will have 300-500
factories, with a capacity to export products worth $ 4 billion. It will help create employment of
250,000 workforces.
Bangladesh, the world's second largest RMG exporter after China, needs huge FDI along with
local investment to emerge as a middle-income country by 2021, according to experts. They also
said Bangladesh now has 5.11 per cent share in the global RMG market, which was 2.56 per
cent in 2000. As a garment exporter the country has overtaken Turkey and India in 2000.
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
http://www.thefinancialexpress-bd.com/2015/06/04/95222
Remittance rises 8pc y/y in May
Bangladesh received $1.32 billion in remittance in May, up 8.47 percent over the same month a
year ago, as migrant workers began sending more money home as Ramadan and the Eid festivity
are nearing, according to Bangladesh Bank. Migrant workers sent $13.87 billion in the first 11
months of the current fiscal year to their beneficiaries, which is 7.2 percent more than in the same
period a year ago.
The remittance flow for May is 1.6 percent higher than in April. Remittance, sent by more than
eight million migrant workers abroad, plays a critical role in the economy, helping reduce the
overall incidence of poverty as well as maintaining a healthy balance of payments. Average
remittance to receiving households is twice per capita income and equivalent to almost 80 percent
of the receiving household's income, providing evidence of the importance of the money sent by
the migrant workers.
http://www.thedailystar.net/business/remittance-rises-8pc-yy-may-91675
Weak pvt investment leads dull macroeconomic indicators
According to the latest data, the country’s GDP growth did not grow at the expected level, private
sector investment and job creation stagnated, revenue collection fell short of the target, ADP
implementation remained slow and export earnings and inflow of foreign assistance grew
insignificantly in the FY 2014-2015. The National Board of Revenue set to fail to achieve even its
downsized target of Tk 1,35,028 crore. The original target was Tk 1,49,720 crore. According to
the Implementation Monitoring and Evaluation Division of the planning ministry, the ADP
implementation status remained dismally low as only 55 per cent of the revised ADP was
implemented in the first 10 months of the fiscal year.
The country, however, experienced some macroeconomic advantages including lower inflation,
declining interest rate, stable exchange rate, positive balance of payment, augmented foreign
exchange reserve and better remittance inflows in the FY15. Economists and business leaders
termed the year challenging and dull in all aspects though many macroeconomic indicators were
stable.
According to the Bangladesh Bureau of Statistics, the economy will grow by 6.51 per cent, 0.79
percentage points lower than the target of 7.3 per cent set by the government for the FY 15.
The overall investment, according to a provisional BBS estimate, stood at 28.32 per cent in the
outgoing fiscal year with public investment 6.22 per cent and private investment 22.1 per cent. –
http://newagebd.net/125791/weak-pvt-investment-leads-dull-macroeconomicindicators/#sthash.i3jhuCIg.dpuf
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
BSEC approves alternative investment rules draft
Bangladesh Securities and Exchange Commission has approved the draft Alternative Investment
Rules in a bid to allow pooling funds for the private equity and venture capital having limited
capacity to raise funds from the capital market. The capital market regulator at a meeting held on
Tuesday issued the approval of the draft Bangladesh Securities and Exchange Commission
(Alternative Investment) Rules, 2015, a BSEC press release said on the day. BSEC chairman M
Khairul Hossain presided over the meeting attended by the BSEC commissioners.
Formulation of the rules will allow the prospective firms having fund shortage to raise funds from
the capital market, BSEC officials told New Age on Wednesday. The proposed investment fund
will have to be operated by a fund manager under the Bangladesh Securities and Exchange
Commission (Alternative Investment) Rules, 2015. The fund managers, which will have to be
registered with the BSEC, will raise capital for a fund from the eligible investors who may be
Bangladeshi, foreign and non-resident Bangladeshi by issuing units of the fund.
The minimum size of the fund will be Tk 10 crore and the initial subscription by the sponsors will
not be less than 10 per cent of total size of the fund. At least 75 per cent of the fund shall be
invested in non-listed securities as the main objective of forming such fund is to promote private
firms in their early stage. The fund manager will be allowed to invest maximum 25 per cent of the
fund in listed securities and units of alternative funds managed by other fund managers. A fund
shall be formed for a specific period of five to 15 years and the tenure will be mentioned in the
constitutive documents.
http://newagebd.net/125759/bsec-approves-alternative-investment-rulesdraft/#sthash.v0a4SohN.dpuf
Tax on capital gains set to go
The government is set to scrap the provision for deduction of 10% tax at source on capital gains
made by the companies and partnership firms from the fiscal year 2015-16. The initiative to
withdraw the provision was made after a number of complexities arose over collection of tax,
finance ministry officials told the Dhaka Tribune.
In FY2014-15, the government slapped 10% tax at source on capital gains that custodian banks,
merchant banks, financial institutions or Trading Right Entitlement Certificate (TREC)-holder
companies have to deduct from the companies and partnership firms.
As of FY2013-14, the companies have to pay capital gain tax at the time of submission of tax
return at the year-end on the basis of their declared net profit and gain. If scrapped, the companies
will now have to pay the tax on capital gains from the stock market with their income tax returns.
http://www.dhakatribune.com/business/2015/jun/04/tax-capital-gains-setgo#sthash.SSYMQp63.dpuf
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
প া সতু কে র ব য় ১৮০% বৃ ি
নয় বছেরর ব বধােন প া সতু
কে র ব য় বেড়েছ ায় ১৮০ শতাংশ। এর মেধ
সরকােরর এই অ ািধকার কে র এভােব সময় ও ব য় বৃি উি
কে র িত অে র পূবিনধািরত সময়সীমা বৃি করা হেয়েছ।
হওয়ার কারণ বেল মেন করেছ স ার ফর পিলিস ডায়ালগ (িসিপিড)। এেত বলা
হয়, সরকার অ ািধকার ক পযেব ণ কিম গঠেনর পর প া সতু ও মে ােরল কে র কাজ শ মান অ গিত হেয়েছ। বািক েলার কাজ
াথিমক পযােয়। সব ক ই পূবিনধািরত সময়সীমা থেক িপিছেয়। কাদার িনেয়ােগ িতেযািগতার অভােবর শ া রেয়েছ। এর পছেন পযেব ণ
কিম র বলতােক দায়ী কেরেছ বসরকাির খােতর এই গেবষণা সং া ।
প া সতু ছাড়া সরকােরর অ ািধকােরর অন ক েলা হে —ঢাকা মে ােরল, সানািদয়া গভীর সমু ব র, পায়রা সমু ব র, রামপাল িব ৎেক ,
মাতারবাড়ী উ
িব ৎেক , মেহশখালী এলএনিজ টািমনাল ও পপুর পারমাণিবক িব ৎেক ।
মতাস
http://www.prothom-alo.com/economy/article/
যু রাে র বাজাের তির পাশাক র ািন বাড়েছ
যু রাে র বাজাের বাংলােদেশর তির পাশাক র ািন বাড়েছ। চলিত বছেরর থম ই মাস শেষ দশ েত পাশাক র ািন বৃি িছল ২ দশিমক
৮২ শতাংশ। তৃ তীয় মােস এেস স
বেড় হেয়েছ ৬ দশিমক ২৫ শতাংশ। ফেল যু রাে র বাজার িহস ায় তৃ তীয় অব ান ধের রাখেত পেরেছ
বাংলােদশ। গত বছেরর ফ য়াির থেক বড় এ বাজার েত ঋণা ক বৃি হেয় আসিছল। চলিত বছেরর ি তীয় মােস স ইিতবাচক ধারায় ফের।
বছেরর থম িতন মােস (জানু য়াির-মাচ) যু রাে ১৩৯ কা ৪৮ লাখ মািকন ডলােরর পাশাক র ািন হয়। এ আয় গত বছেরর একই সমেয়র চেয়
৬ দশিমক ২৫ শতাংশ বিশ।
এিদেক যু রাে
পাশাক র ািনর শীষ ান বা ৩৬ দশিমক ৪৭ শতাংশ চীেনর দখেলই আেছ। বছেরর থম িতন মােস দশ ৬৪৭ কা ডলােরর
পাশাক র ািন কেরেছ। এ
ে তােদর বৃি ৪ দশিমক ৯৩ শতাংশ। ি তীয় ও তৃ তীয় ােন িভেয়তনাম ও বাংলােদশ।
www.prothom-alo.com/economy/article/522250/যু রাে র-বাজাের- তির- পাশাক-র ািন-বাড়েছ
আইএসিপ লাইেস
ব বসা স সারেণর লে
পেয়েছ সাবেমিরন কবল কা ািন
কা ািনর আেবদেনর পিরে ি েত স িত বাংলােদশ সাবেমিরন কবল কা ািন িলিমেটডেক (িবএসিসিসএল) ই ারেনট
সবা দােনর লাইেস িদেয়েছ টিলেযাগােযাগ িনয় ক সং া বাংলােদশ টিলকিমউিনেকশন র েলটির কিমশন (িব আরিস)। স িত ঢাকা
ক
এ েচ (িডএসই) সূে এ তথ জানা গেছ।
শয়ারবাজাের তািলকাভু রা ায়
কা ািন এত িদন খু চরা ই ারেনট সবাদাতা িত ান েলার (আইএসিপ) কােছ পাইকাির হাের ব া উইথ িবি
কের আসিছল। খুচরা আইএসিপ ব বসােয় সফল হেল কা ািনর আয় বাড়েত পাের বেল মেন করেছন খাত সংি রা।
http://www.bonikbarta.com/2015-06-04/news/details/38769.html
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Capital Market Research Department
Daily News Recap
Thursday, June 4, 2015
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Capital Market Research Department