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Pran-RFL Group is establishing a new industrial hub named Habiganj Industrial Park-2 with an investment of Tk700 crore.

The new industrial park to be built on 40 acres of land will start production in early 2024, Pran-RFL Group officials said.

Currently, Pran-RFL, one of the leading industrial groups in the country, has another industrial park in Habiganj on a land of 300 acres, around 4km from the new production hub.

At the Habiganj Industrial Park-2, three production lines for opal glassware and one for cork sheet production are nearing completion. The opal glassware factories will start production at the end of January, the officials said.

Pran-RFL Group is establishing a new industrial hub named Habiganj Industrial Park-2 with an investment of Tk700 crore.

The new industrial park to be built on 40 acres of land will start production in early 2024, Pran-RFL Group officials said.

Currently, Pran-RFL, one of the leading industrial groups in the country, has another industrial park in Habiganj on a land of 300 acres, around 4km from the new production hub.

At the Habiganj Industrial Park-2, three production lines for opal glassware and one for cork sheet production are nearing completion. The opal glassware factories will start production at the end of January, the officials said.


The Meghna Group of Industries will be getting the fourth economic zone (EZ) — the highest among local business groups.

The Bangladesh Economic Zones Authority (Beza) will sign a pre-qualification licence agreement with the Meghna Group to this effect in the capital today.

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The Meghna Group expects a new investment of $3 billion in the new economic zone, named Titas Economic Zone (TEZ).

Currently there are three economic zones under the Meghna Group. Of them, domestic and foreign industries are producing products at Meghna Industrial Economic Zone (Miez) and Meghna Economic Zone (Mez) while Cumilla Economic Zone (CEZ) is ready for handover to investors.

Eight private economic zones with final certificates are currently engaged in commercial production under the Beza.

Products are being manufactured in two economic zones of the City Group, namely City Economic Zone and Hoshendi Economic Zone. Besides, Abdul Monem Ltd's Abdul Monem Economic Zone, Bay Group's Bay Economic Zone, Aman Group's Aman Economic Zone and Bashundhara Group's East-West Special Economic Zone are also engaged in product manufacturing.

Three other zones that obtained licences — Sirajganj Economic Zone, Kishoreganj Economic Zone, Karnaphuli Dry Dock Special Economic Zone (SEZ) — are ready for handover to investors.

BEZA Executive Chairman Shaikh Yusuf Harun told The Business Standard that after the pre-qualification licence is issued, certain conditions related to infrastructure development are stipulated. "Following a subsequent site visit, if it is observed that the conditions have been met, the request for final approval is submitted to the Beza Governing Board. Once approval is granted by the Beza Governing Board, final authorisation is given. Subsequently, investors can be allocated their respective spaces," he elaborated.

He said $4.5billion has already been invested in 12 private economic zones that have obtained final licences so far.

The TEZ has been established on approximately 400 acres of land on the bank of the Meghna River at Chalivanga under Meghna upazila of Cumilla. The first phase of development will focus on accommodating domestic and foreign industries on 161 acres, with expansion to the full 400 acres planned for the near future.

Meghna Group officials say TEZ enjoys a lucrative location with river facility and being close to the Dhaka–Chittagong Highway. The zone is 35km away from Dhaka zero point, 50 km from Hazrat Shahjalal International Airport, 210 km from Chittagong Sea Port and 32 km from Kamalapur Rail Station.

Meghna Group looks to $3 billion investments in TEZ

Suman Bhowmik, senior deputy general manager of the Meghna Group, told TBS, "Our group earlier received final approval for three economic zones. Now we're going to get a pre-qualification licence for TEZ, which is expected to have investment of more than $3 billion once the whole zone is occupied by industries. Approximately 60,000 employment opportunities will be created in this economic zone."

Terming the Meghna Group as one of the high-ranked corporate and industrial conglomerates of the country, he said it is going to develop and operate TEZ to generate employment, boost domestic and foreign investment with technology transfer to the country and develop infrastructure facilities.

Under the umbrella of the Meghna Group, TEZ is under intense planning to be an exemplary economic zone in the country, Suman Bhowmik said. "The Meghna Group has much relevant experience in setting up, developing and operating EZs and it is a pioneer in the area of EZs in Bangladesh."

TEZ will maintain international standards to provide uninterrupted supply of electricity, gas, water, and will be equipped with a power sub-station, CETP (common effluent treatment plant), CSTP (common safety training programme), fire services, etc, he said, adding that commercial banks, restaurants, investors' club, helipad facility, mosques, medical centre, etc, will be established for the benefit of investors.

Since TEZ has the advantage of a river close to it, it can go for some of the heavy industries, including but not limited to, in petrochemicals refinery, paper and board mills, pharmaceuticals, ICT products, PVC, power plant, LPG, garments and garments accessories, cosmetics, chemicals, agro-based, plastic & plastic-related products, equipment, packaging and steel-related products, etc, said Meghna Group officials.

Suman Bhowmik said, "Foreign investments are relatively higher In the MIEZ. Several foreign investments are in the pipeline. While there is interest in investing in our economic zones, the investors will make a final decision after the national elections."

10 more private economic zones awaiting licence

In the eight zones that are in operation, there are approximately 85 industrial units involved in production, manufacturing, and other activities. Furthermore, 10 private economic zones are awaiting final approval after already obtaining pre-qualification licences.

The Beza is working toward establishing 100 economic zones across the country by 2041 with the goal of generating employment for one crore people. The Beza also expects to produce and export products worth $40 billion annually in and from these economic zones.

Investors can avail of tax holidays, duty-free imports of raw materials and machinery, exemption from dividend tax, VAT-free electricity, gas and water and other fiscal facilities in the economic zones.

Besides, they enjoy some other non-fiscal advantages, such as bond facilities, One-Stop Service, repatriation of disinvestment, unlimited telephonic transfers and separate customs procedures.

 

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He said they discussed new projects and Bangladesh expressed interest in constructing two more nuclear power units at the Rooppur site.

A high-power multipurpose research reactor, which can solve many problems in science and nuclear medicine, was also discussed.

 

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The much-anticipated Patenga Container Terminal (PCT) of Chattogram Port commenced operations today, marking a significant milestone for the port and the country.

A container vessel, the Singapore-flagged 'MAERSK DAVAO,' anchored at the terminal this morning, initiating regular handling activities.

Authorities anticipate the terminal will handle approximately 500,000 Twenty-ft Equivalent Units (TEUs) annually.

Patenga Container Terminal is the first terminal in Chattogram Port's history to be operated by a foreign company, heralding a new era of foreign investment and operational models. This transformation has positioned Chattogram as a landlord port, a significant upgrade for Bangladesh's maritime infrastructure.

Six months ago, the Chattogram Port Authority (CPA) signed an agreement with the Jeddah-based Red Sea Gateway Terminal (RSGT) of Saudi Arabia. Following customs formalities and equipment installations, Red Sea Gateway Bangladesh Limited has now officially commenced operations.

Omar Faruk, Secretary of CPA, confirmed that RSGT is fully prepared to manage container handling at the newly built terminal.

According to the CPA, the new terminal will not only enhance the port's capacity but also reduce the average stay time for vessels.

Constructed at a cost of Tk150 crore, funded by the port, the PCT features state-of-the-art facilities, including gantry cranes that significantly increase loading and unloading efficiency. Rear Admiral Md Sohail, Chairman of the Chattogram Port Authority, noted that it would take approximately 18 months for the terminal to become fully operational.

The terminal was built on 32 acres of land near Chattogram Drydock Limited to Boat Club, with the foundation stone laid on September 8, 2017. The project, supervised by the 34 Engineer Construction Brigade of the Army, commenced construction in 2018, involving a total cost of Tk 1,230 crore.

With the new terminal, vessels will no longer need to wait at the outer anchorage for extended periods, as the Patenga Container Terminal can accommodate four vessels at once across its jetties. This increased capacity is expected to alleviate congestion and streamline operations at Chattogram Port.

 

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To mitigate some of the risks facing both the forcibly displaced Myanmar nationals (FDMNs) and their host communities, the government is implementing a project for smoothing the rural connectivity in Cox's Bazar district.

Under the project titled 'Emergency Multi-Sector Rohingya Crisis Response Project (EMCRP)', the government is building 268 kilometers of roads in several upazilas, including Ukhiya and Teknaf under Cox's Bazar district.

The government is also building 40 new resilience cyclone shelters, 10 new cyclone shelters, one relief administration and distribution centre, 34 multipurpose community service centres, six haat-bazaars (markets), two fire service offices, one LGED building, nine fire-fighting warehouses and many drains, culverts and bridges inside the camps.

Under the project, the government is also setting up lightning arresters and solar street lights.

Talking to BSS, Project Director of the EMCRP, being implemented by Local Government Engineering Department (LGED), Javed Karim said the project is helping build and rehabilitate basic infrastructure, improve community resilience and help prevent gender-based violence against the forcibly displaced Rohingya population.

He said the mass fleeing of hundreds of thousands of Rohingyas in order to avoid the death or persecution in the northern Rakhine province of Myanmar for neighboring Bangladesh since August 2017 has caused the advent of the world's fastest growing refugee crisis.

"About 10 lakh Rohingyas have crossed the border from Myanmar to several camps across Cox's Bazar district in Teknaf and Ukhiya upazilas, placing an immense strain on the existing infrastructure and on an already resource-constrained social service delivery system and the environment," he added.

He said the large influx of the Rohingya population outnumbers the host community by about 3:1 in the affected upazilas, posing significant risks of exposure to natural disasters, tremendous pressure on social service delivery system including road communication, crowding and congestion in haat-bazar.

Executive Engineer of LGED Cox's Bazar Md Mamun Khan said the LGED has done extensive work under the project at the local level for socio-economic development.

He informed that 268 kilometers of road development and rehabilitation works are being done.

Among the roads, he said, work of around 200 kilometers has been completed.

"Four bridges and 45 school-cum-disaster shelters in Ukhiya upazila have been handed over. Also, a modern jetty is being constructed at the Cox's Bazar-Maheshkhali link gate. Two rubber dams have been constructed. Apart from these, several other works are going on," he added.

He also said multipurpose community service centres, satellite fire service centres, 268 lightning arresters, 2,500 solar street lights and 35 nanogrids for energy supply have been installed inside the camp.

The works of another 35 nanogrids for energy supply are in progress, he added.

Mamun Khan, however, said EMCRP is using the Bangladesh Center for Communication Programs (BCCP) as a medium for awareness in this regard.

"Through the BCCP, we have been able to convey messages from lower to higher levels. Beneficiaries have responded positively to these developments. Beneficiaries are now thinking that everything is being done for them," he added.

A local shopkeeper of the Taipalong village under Ukhiya upazila, Md Imran, said due to the government initiative, the communication system and other facilities in the area are improving day by day.

"We are now moving one place to another place easily. The road communication and other facilities in our village are now better than earlier," he added.

Thanking the BCCP, Imran said villagers are now more aware for protecting the public assets.

Development Project Proposal (DPP) of the EMCRP got the Executive Committee of the National Economic Council (ECNEC) approval on 30 October 2018. The Revised Development Project Proposal (RDPP) was approved on 6 October 2020.

The total estimated cost of the project is Tk1,394.47 crore. Of the amount, the government is providing Tk12.80 crore and the rest Tk1,381.67 crore is coming from the World Bank and German Development Bank.

 

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You can lie with data or illuminate the truth with data. And there's something in between -- half-truths.

A $14 billion correction in export figures by the central bank is necessary because it addresses one economic half-truth.

But half-truths are unnerving.

The data revision that came on Wednesday through a regular update on the balance of payments raises disturbing questions about the country's economic performance and the policy that revolved around it.

The shocking revelation has sent economists scrambling for answers, but there are more questions than answers as the authorities are almost silent.

What's clear is that the discrepancy in export figures again underscores the importance of accurate macroeconomic data. A lack of statistical accuracy can upend many indicators. The calculation of gross domestic product is one of them.

Such a big discrepancy is "unbelievable", said MK Mujeri, an economist and former director general of the Bangladesh Institute of Development Studies.

Export and import data calculation is a simple task, but big mistakes such as this by officials raise questions over the authenticity of other components of the economy. "Entire GDP estimates should be revisited," said Mujeri.

His stance concurs with the views expressed by other economists.

"If the ratio of this discrepancy has significantly increased over time, then that should necessitate revisiting the growth estimates," said Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh.

With the disclosure, some other issues came to a head as well.

The statistical revision suggests that Bangladesh Bank and the finance ministry have finally accepted that no significant export earnings are retained abroad as exporters have claimed for years. That means the trade deficit is much larger than originally presumed. That also indicates that the target of reaching $110 billion in exports by 2027 is far from realistic.

"In other words, we should now formulate a more realistic export strategy and identify what exact constraints are hindering our export performance," Ashikur said.

The difference between export figures calculated by the Export Promotion Bureau and Bangladesh Bank persisted for at least 12 years, with the gap crossing $12 billion in fiscal 2022-23.

Economists have long been referring to the puzzle. Finally, the central bank woke up and reconciled the mismatch for the July-April period of fiscal 2023-24. As a result, exports fell 6.8 percent during this period, a sharp contrast with a 3.93 percent growth shown in the EPB's figures released earlier.

What's more, Bangladesh runs the risk of reputational damage abroad. The country's image as a garment powerhouse defined by the sheer volume of shipments will be seriously dented. Clothing exports, which make up about 10 percent of the economy, are an important indicator that sets the country apart from its peers.

SOME ESTIMATES ARE OBSOLETE NOW

It is going to create serious data chaos. Whatever Bangladesh has estimated in the past has now become "mostly irrelevant", said Fahmida Khatun, executive director of the Centre for Policy Dialogue.

The EPB publishes figures based on the data from the customs department. Apparently, for procedural reasons or otherwise, the customs department took into account the same export data more than once in many cases, known as double or triple counting.

As per the EPB data, exports were $47.47 billion in the July-April period of fiscal 2023-24. However, the amount stood at $33.67 billion after the correction, according to data released by the central bank on Wednesday.

But it's not clear for how long such wrong data entry has been going on.

Good policy framing depends on authentic data. Poor quality data gives wrong signals to the policymakers.

"If policymaking is done based on unreliable data, then policies become irrelevant and defunct," Fahmida said. Unfortunately, citizens have been misled about the real economic situation due to such anomalies perpetuated by government organisations, she said.

These errors show the extent of data governance or a lack of it in Bangladesh. Without quality information, informed policy-making is difficult, said MA Razzaque, chairman of the Research and Policy Integration for Development.

The export data mismatch will have an impact on GDP estimates because value addition from exports is included in the GDP calculation. The ratio of value addition is nearly 60 percent. So, the GDP impact will be as much as $6 billion, Razzaque said.

Md Deen Islam, associate professor of economics at Dhaka University, said this correction would lower the GDP growth rate, with exports contributing less to overall economic output, GDP growth rates for the period will need to be revised downward, and future projections for economic growth will need to be adjusted to reflect the more accurate export figures, potentially leading to more conservative growth estimates.

The significant revision could create temporary confusion and mistrust among stakeholders, including businesses, investors and international partners, he said.

"Revisions might lead to questions regarding the credibility and reliability of economic data published by national agencies," he added.

Deen Islam said policymakers may need to reassess their strategies to stimulate economic growth and stabilise the macroeconomic environment as the revised export figures indicate a significant decline.

However, the reconciliation of export data provides a more accurate picture of Bangladesh's economic landscape, which is crucial for effective policy-making and strategic planning, said Deen Islam.

Birupaksha Paul, a professor of economics at the State University of New York, said it was a positive move toward a proper accounting of the balance of payments.

A senior official of the EPB said it does not produce export data. The agency compiles export data based on numbers it receives from the customs wing of the National Board of Revenue and the central bank.

"We only see export data once the goods are shipped. If any consignment is returned, the EPB does not have the chance to find that out," he said, adding that it is monitored by the BB and NBR.

"Still, if we need to correct any data, we will do it," said the official. There is a committee comprising representatives from the EPB, the BB, the NBR and other agencies.

The EPB is yet to release data for the July-June period of FY24 although it usually publishes the figures early every month.

Saiful Islam, executive director of Bangladesh Bank, said from now on, the central bank will base the calculation on the corrected export data.

Asked about the previous mismatch in data between the BB and the EPB, he said there was no problem with the past data. There was a problem with the method of reporting. He did not elaborate.

Despite the big reset, the economy's health remains unchanged. The correction addresses anomalies but does not fundamentally alter the economic landscape.


Startling discrepancy in export earnings has come to light as the authorities have recently wiped out export records worth $23.34 billion.

The Export Promotion Bureau (EPB) initially reported $93.14 billion in exports for the first 10 months of the fiscal year 2023-24 and the same period in 2022-23.

In a surprising twist, the central bank has recently claimed that exports were only $69.80 billion during the period, which is down by $23.34 billion or 25 per cent from the previous figure.

The authorities concerned did not provide any explanation for the discrepancy, while business leaders said it substantiated their longstanding suspicion on intentional ballooning of export figures. The inflated figures misguided the policymakers and affected the businesses eventually.

Economists, however, appreciated the move to accept the reality and disclose the actual data on export earnings. Since exports data are crucial for the balance of payment and foreign currency exchange rate, they welcomed the 'positive' initiative, though it is already late.

The EPB officials kept mum on the massive discrepancy. On the condition of anonymity, some of them admitted that the export data have been erroneous for the past two to three years.

While explaining the issue, some central bank officials said they have so far been depending on the EPB data to estimate export earnings. But the actual earnings were consistently falling short of the desired figures, and the central bank faced questions from local and international agencies in this regard.

Against such a backdrop, the export data were verified and the actual exports were found lower than the reported figures. From now on, the export reports will be prepared with actual data and the revenue board (NBR) and the EPB will use the same figures, they added.

As per the actual export data, the central bank recalculated the balance of payment on Wednesday and saw the financial account turning from a deficit to a surplus. The current account fell in deficit due to the export data fluctuations. Besides, there has been a $5.56 billion deficit in the balance of payment during the July-April period of the fiscal year 2023-24.

According to the EPB, exports were $45.67 billion in the first 10 months of fiscal year 2022-23, but the central bank found the figure to be $36.13 billion, down by $9.54 billion.

Similarly, the EPB claimed $47.47 billion in exports for the first 10 months of 2023-24, while the central bank reported $33.67 billion for the time, showing a $13.80 billion shortfall.

This correspondent visited the office of EPB vice chairman Anwar Hossain on Thursday afternoon, to collect their explanation on the discrepancy. He could not be reached there as multiple staff said he went to the commerce ministry for an emergency meeting.

Attempts to reach him over the phone remained unsuccessful. As no other officials could not be contacted, the official explanation of the EPB has still been missing.

Ready-made garments constitute some 84-85 per cent of the country's total exports. Garment exporters have been expressing doubts over the EPB export figures since the middle of the fiscal year 2022-23.

Some exporters said their purchase orders declined significantly amid rising inflation on the onslaught of the Russia-Ukraine war. Some 20-30 per cent of their production capacity remained unused, and it impacted the country’s overall exports adversely.

But the EPB showed a 10 per cent growth in garment exports following the fiscal year 2022-23, contrasting sharply with the NBR that estimated a 4 per cent decline in exports. There was a $8.47 billion discrepancy in export figures of the EPB and the NBR.

For the just concluded fiscal year, the central bank estimated $29.68 billion in exports in the first ten months, while the EPB claimed the amount to be $40.49 billion.

SM Mannan, the president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Prothom Alo that they have long been casting doubts about the EPB export data, and it has been substantiated through the revelations of the central bank and the revenue board.

“The wrong estimates have tarnished our image. The actual exports were inflated through inclusion of other estimates. The stimulus for the export of ready-made garments might have been downsized considering the inflated export figures,” he said.

Asked about the issue, the research director of the Centre for Policy Dialogue (CPD), Khondaker Golam Moazzem, said it shows that there still persists some confusion over data. The central bank initiative, however, is positive, though it is late.

“Alongside flaws in reporting, non-repatriation of export proceeds is another significant reason behind the discrepancy in figures. There is a scope to bring back the export earnings if the calculations are done on the basis of letter of credit (LC),” he added.


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The World Trade Organization (WTO) in its latest data has unveiled that Bangladesh's export figure is nearly $9 billion less in 2023 than what the country's Export Promotion Bureau reported.

According to the new data released on Thursday (1 August) through the WTO's interactive tool "World Trade Statistics 2023 – Key Insights and Trends", Bangladesh exported $38.4 billion worth of clothing in 2023, making up 7.4% of the global market.

However, this figure is nearly $9 billion less than the $47.4 billion reported by the EPB.

Earlier in May, the country found itself at the centre of a numerical conundrum after the Bangladesh Bank also found discrepancies in the country's export figures – revealing a $10 billion gap over the last nine months of FY24 based on revised numbers from the National Board of Revenue (NBR).

In response to the discrepancies, the EPB has paused the release of export data for three months starting this July to address the inconsistencies.

But, despite facing headwinds in the global markets and grappling with rising production costs due to price hikes of raw materials and energy, Bangladesh remains the world's second-largest clothing exporter after China.

The country's market share has grown from 2.5% in 2005 and 4.2% in 2010 to 7.4% in 2023.

China, while still the largest clothing exporter, saw its share of global exports decline from 36.6% in 2010 to 31.6% in 2023, with exports totaling $165 billion.

In 2023, Vietnam, the third-largest apparel-exporting country, exported $31 billion worth of clothing, reflecting a market share increase to 6.0% from its 2.9% share in 2010.

According to the WTO data, Bangladesh exported apparel worth around $7 billion more than Vietnam in 2023, while in 2018, both countries exported the same amount of clothing – around $32 billion.

Later, in 2020, Bangladesh was pushed back to the third position by Vietnam, however, Bangladesh again secured the second position in the global clothing export market in 2021.


Türkiye became the fourth largest clothing exporting country grabbing a 3.6% global share and exported apparel worth about $19 billion in 2023. It is followed by India, with a 3.0% market share and exported garment items worth $15 billion.

However, the WTO digital data platform also showed that Bangladesh fell to the 55th rank among the largest merchandise exporters in 2023, falling from 49th in 2022.


Following the revelation of a $10 billion export data error, the Bangladesh Bank, Export Promotion Bureau (EPB), and the National Board of Revenue (NBR) are all deflecting responsibility for the error, raising questions about how such a significant mistake could occur.

Sources within the involved parties told TBS that the disparity arose because the NBR's customs department recorded multiple entries for the same export shipments.

Officials from the Bangladesh Bank and the EPB blamed it on the revenue authorities, saying their export data publications depend on information provided by the NBR. Meanwhile, NBR officials have refrained from directly addressing these questions, and no official has been willing to disclose their identity.

"The gap in export data has arisen due to double counting," a senior NBR official told TBS, on condition of anonymity.

The official also hinted that the issue could be linked to the software utilised by the NBR for storing export-related data.

State Minister for Commerce Ahasanul Islam Titu also said, "This issue stems from multiple counts by the NBR, which they have acknowledged. This has also been revealed through their own assessments."

Mentioning that the NBR is taking corrective measures, he said, "Until now, we [EPB] have relied on secondary data. Moving forward, we will scrutinise the data meticulously. We will not publish any data otherwise. Such mistakes won't be repeated.

"The EPB, which operates under the Ministry of Commerce, has been duly instructed in this matter."

Officials from the central bank also placed the responsibility on the NBR. A senior executive at the Bangladesh Bank said since the NBR is the primary source of export data, it holds complete accountability for the mismatch in data entries causing a deficit in the financial account.

However, another senior NBR official refused to accept full responsibility for the statistical gap.

Speaking to TBS yesterday, he explained, "Often, samples sent, discounted items, or rejected goods are not excluded from export figures. This is beyond the control of customs, as NBR discloses this information upon export.

"Besides, products sold by Export Processing Zones (EPZs) within the country are classified as exports as well."

Another officer from NBR's customs department said, "There is a shortage of manpower in NBR's customs, with over 80% of our workforce primarily focusing on imported goods. It is challenging to thoroughly monitor exported items."

Unlike imports, exports lack a direct revenue connection. Money laundering activities could potentially be facilitated through export channels, he added.

Regardless of the reasons behind this discrepancy, the massive miscalculation in export data will significantly impact the country's macroeconomic calculations, said analysts, implying that the credibility of data released by various Bangladeshi government agencies will now face scrutiny on the global stage.

Just a procedural error, or something bigger?

Dr Ahsan H Mansur, executive director of the Policy Research Institute (PRI), told TBS, "The entire process requires serious scrutiny. Is this simply a procedural error, or is there something more to it? It is essential to investigate whether anyone has exploited this situation."

He said, "A committee should be formed to determine whether exporters exploited incentive benefits or money laundering were involved in this mistake."

Attempts to reach NBR Chairman Abu Hena Md Rahmatul Muneem for comment were unsuccessful.

The NBR has not provided any official explanation to the media regarding this matter yet.

BB and EPB to use same customs code

On 26 June, in a meeting chaired by Deputy Governor of Bangladesh Bank Md Habibur Rahman and attended by relevant parties, it was decided that all entities will use the uniform Customs Procedure Code (CPC) provided by NBR to accurately represent export figures.

It was noted that the Bangladesh Bank adheres to the Customs Procedure Codes (CPC) prescribed by the International Monetary Fund (IMF), which do not align with those of the EPB.

Furthermore, it was agreed that the EPB will revise the export data for the fiscal years 2022-23 and 2023-24 based on the updated information from the NBR. They will also coordinate with Bangladesh Bank's statistics department before publishing the revised export data.

EPB in trouble over release of revised data

A senior EPB official told TBS, "We have been instructed to release revised data for the past two fiscal years. We will prepare it upon receiving the updated information from the NBR, but this process will take at least a month."

The official expressed concern about potential scrutiny, stating, "If we disclose the revised data, we will face questions regarding its accuracy. People will question why and on what basis the previously published statistics have been changed."

"We will follow the directives of the Ministry of Commerce," he added.

 

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Bangladesh will examine data anomalies that allegedly inflated economic performance during former Prime Minister Sheikh Hasina's regime, in an effort to stamp out corruption that plagued the South Asian nation for most of the past 15 years.

The country's interim government has asked Debapriya Bhattacharya, an economist and public policy analyst, to produce a "white paper" documenting mismanagement under Hasina's rule. Bhattacharya has 90 days to write the paper and plans to submit an initial report to Nobel-winning banker Muhammad Yunus, who's leading Bangladesh's temporary administration.

"We have a serious problem with data," Bhattacharya, 68, said in an interview in Dhaka on Saturday. "Data were manufactured. Data were suppressed. I call that data anarchy."

From a distance, Bangladesh was widely perceived as an economic success story, propelled by the world's second-largest garment exports industry. But Bhattacharya said Hasina's administration likely released inaccurate data on exports, inflation and gross domestic product, creating "unprecedented economic vulnerabilities."

Hasina, who resigned and fled to India this month in the face of mass protests, left behind 18.36 trillion taka ($153 billion) of local and foreign debt as of December. That's equal to the national budget for three fiscal years.

Bhattacharya identified three key setbacks for Bangladesh: macroeconomic instability, inflation and a dearth of foreign exchange reserves. Stability was disrupted over the last couple of years and Hasina blamed it on the Ukraine war, which "we thought was not very justified," he said.

Bangladesh has a 7.3% tax-to-GDP ratio, one of the lowest in the world. The ratio is estimated to improve to 8.8% in the fiscal year ending June 2025.

"This is one of the paradoxes. You have 5% to 7% steady growth and you do not collect taxes, which essentially means that either the growth was fictitious, or those who benefited from the income generated from the growth did not come under the tax net," Bhattacharya said. "Maybe a large part of it was funnelled out of the country."

The interim government's immediate task is to shore up funds needed to pay for services like electricity. Newly appointed central bank Governor Ahsan H. Mansur said last week the country is in talks with the International Monetary Fund for an additional $3 billion in emergency aid, and is also seeking funds from other multilateral lenders.

Disruption to exports have put strain on foreign exchange reserves, which had already slumped before the current crisis. The central bank is buying dollars from the interbank market in order to meet its obligations, the governor said.

Bangladesh, which has 170 million people, is struggling to move into the next stage of development. One critical question is whether the nation is ready to graduate from being a least developed country in 2026. The United Nations recently postponed the Solomon Islands' move out of the LDC category following a change of government there and social chaos that followed.

Bhattacharya said issues facing Bangladesh aren't "problems of graduation" but "problems of development." For now, he said, the country remains on track, despite the unrest and a shakeup in leadership.

"Bangladesh is still above all the three sets of criteria for graduation: per capita GNI, human assets and economic and environmental vulnerability index," said Bhattacharya, who sits on the UN panel.

Bangladesh is grappling with severe political turmoil. More than 600 people were killed during violent demonstrations in past weeks, the UN Human Rights Office said. The upheaval in Bangladesh fits the "playbook of any authoritarian government," Bhattacharya said.

"What has happened in Bangladesh is no exception," he said. "First, you abhor pluralism, then you banish democratic accountability, and then you put your partisan people in all institutions — not necessarily on merit, but more based on their loyalty, and often sycophancy,"

 

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Bangladeshi pharmaceutical company Renata can now export Cabergoline 0.5mg tablets to Europe.

Cabergoline, a dopamine agonist, is primarily used in the treatment of conditions such as hyperprolactinemia and Parkinson's disease.

Renata PLC announced the successful approval of the tablets from the EU Decentralized Procedure (DCP) today (2 September) in a filing with the Dhaka Stock Exchange (DSE).

This approval comes with access to several European markets such as Ireland, France, Portugal, Italy, Denmark, Sweden, Netherlands, Norway, and Spain.

"This significant milestone reflects Renata's commitment to expanding its product offerings in the European market with strong competency in developing and delivering low dosage, high potency complex products," Renata said in its DSE filing.

It said the tablet, Cabergoline 0.5mg, will be manufactured at Renata's state-of-the-art UK MHRA-approved potent facility, which adheres to stringent quality control measures and is equipped to meet the demands of the European market.

"This product will be distributed across Europe through multitudes of strategic partnerships, ensuring widespread patient access," it said.

Furthermore, Renata said the medicine is available in the local market of Bangladesh under the name Cabolin.

In September last year, Renata Limited's European subsidiary Renata Pharmaceuticals (Ireland) Limited has secured the EU and German regulatory authorities' approval to launch its anti-Parkinson's therapy, Cabergoletten 1mg and Cabergoletten 2mg.

 

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Coming as a boon during the country's economic crisis, motorcycle brand Honda, a name synonymous to all brands of motorcycle in Bangladesh, has started exporting motorcycles from its plant in Gazaria, Munshiganj today (3 September).

Bangladesh Honda Private Limited (BHL), a joint venture of Japanese Honda Motor Company and state owned Bangladesh Steel and Engineering Corporation, shipped 14 Honda X Blade 160 commuter motorcycles, by sea, to the rising Central American market of Guatemala.

This makes Honda, the global leader in motorcycle manufacturing, the second company to export motorcycles from Bangladesh, following Runner Automobiles. The move is seen as a step towards boosting the country's foreign exchange reserves, which have been under pressure in recent times.

Gradually BHL will explore opportunities in other markets in the Americas and Africa.

During the export launching ceremony at the BHL plant, officials said the company requires substantial foreign currency to import raw materials and knocked down (KD) parts to manufacture motorcycles in Bangladesh, and the ongoing foreign currency crisis made it difficult to meet the growing demand for Honda motorcycles.

BHL Managing Director and CEO Shigeru Matsuzaki said, "The solution to this challenge lies in our two-pronged approach – increasing local procurement and initiating exports to earn foreign currency that should add to Bangladesh's economic resilience."

Honda has production facilities in 21 countries including Bangladesh. "However, the production capacity and cost competitiveness here is comparatively low due to the stiff competition within a moderately sized market and the country's import dependency for raw material and components," said BHL Chief Marketing Officer Shah Muhammad Ashequr Rahman.

He told The Business Standard, "For instance, excluding the duty on imports of raw material and components, Honda's manufacturing costs in Bangladesh is over 10% higher than the bigger two wheeler manufacturing hubs in the region."

Still, to cement its ties with Bangladesh, Honda eyes a greater contribution to the country's journey towards cost effective manufacturing that needs a larger scale and more local value addition alongside exports together would help the mission, he added.

The Bangladesh government currently offers a 0.05% cash incentive on motorcycle exports, which Shah Muhammad Ashequr Rahman, who is also a professional accountant, described as insufficient to offset the higher production costs.

For export competitiveness, the company has an option to seek duty-free imports of raw material and components or go for duty drawback post exports, he added.

Both have different problems, he said.

For a bonded warehouse to enjoy duty free imports for the export unit, the company will have to make further gigantic investments. On the other hand, duty drawback procedure event takes more than five years post export in Bangladesh to get back the already paid duties and that might require several hundred crore takas in additional working capital, he explained.

"To become competitive in motorcycle exports, we need duty free imports of raw material and components against bank guarantees only," said Ashequr, who has a long experience in the company's finance department too.

BHL actively seeks support from the National Board of Revenue (NBR), Duty Exemption and Drawback Office (DEDO), and its banking partners in the bold export mission, he added.

BHL Chief Production Officer Hiroyuki Yasunaga, said just like the other Honda plants, the manufacturing standards and quality control are equally rigorous in its Bangladesh plant.

Bangladesh's Motorcycle Industry Development Policy 2018 eyed a manufacturing scale of 10 lakh units a year by 2027. Having peaked at 6.4 lakh units in 2021-22, the home market sales dropped to less than 4 lakh in the 2023-24 fiscal year due to the economic slowdown post Ukraine war.

The two wheeler market in Guatemala recorded 12th straight years of highest ever sales in 2023. Selling more than 56,000 units last year, Honda led the market with nearly one-fourth share. With similar units sold in Bangladesh, BHL held nearly 15% of the Bangladesh market in the fiscal year 2023-24.

Other Japanese, Indian, Mexican and a few low cost local assemblers are also active in the market of Guatemala, which is the 21st largest two wheeler market in the world right now in volume terms, according to motorcyclesdata.com.

 

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I don't think so. They have strict rules and regulations in place.
Well monitoring and having CG conducting sporadic/routine inspections should be prioritized to ensure no overfishing.

I guess Denmark could be a horrid example to how it can go


The news comes just days after it was revealed that Danish fishermen were trawling in the Øresund straight, despite it being banned for over 80 years.
 

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The power supply situation has further deteriorated across the country as another power plant has completely shut and there is no sign of increasing generation in the immediate future.

Load-shedding or gap in power demand and supply hit the highest 2,312MW early yesterday, a record in recent weeks, according to the data of Power Grid Bangladesh PLC.

Rajshahi, Rangpur, Cumilla, Mymensingh and Sylhet areas are mostly affected by power cuts, the data shows.

From Monday evening, Dinajpur's 525-megawatt Barapukuria thermal power plant, the country's first coal-fired power producer, suspended operations after its lone functioning unit shut down for technical glitches, leaving the greater Rangpur area without electricity for a large part of the day.

The unit was supplying around 200MW of electricity.

Md Abu Bakkar Siddique, the chief engineer of the power plant, attributed the shutdown to the failure to conduct timely repairs by the Chinese contractor Harbin International.

Harbin did not adhere to contractual obligations regarding maintenance, he said, adding that the Chinese contractor had requested two weeks to resolve the technical fault.

Until then, small-scale businesses and battery-run autorickshaws will have to suffer.

Abdul Hannan, a rice miller in Bochaganj upazila of Dinajpur, said his mill's output has dropped significantly because of the unusual power cuts.

Sultan Mahmud, who runs a PVC printing business in Nawabganj upazila, said his business was affected by the frequent power cuts for the last couple of days.

"We are getting at least six hours' of power cuts every 24 hours," he said.

Load-shedding has hit Dhaka as well, according to data from the two distribution companies -- Dhaka Power Distribution Company and Dhaka Electric Supply Company. The two companies faced around 500MW of supply shortfall yesterday.

At least 25 gas-fired power plants have been shut since May 27 when cyclone Remal hit the coastal areas.

The cyclone damaged one of the country's two floating storage and regasification units (FSRUs), which brought down the LNG regasification capacity to 600 million cubic feet per day (mmcfd) from 1,100 mmcfd.

The FSRU tried to resume operations several times but failed.

It is now slated to resume operations on September 15, as per the interim government's recent announcement.

However, a PDB official said even if the FSRU comes into operation then, the situation will not improve immediately as the liquefied natural gas cargo will not arrive.

The government initiated the purchase process only recently and it will take at least two weeks for the cargo to arrive, he said.

Besides the gas shortfall, PDB officials are pinning the blame for frequent power cuts on insufficient electricity generation by the coal-based power plants due to various technical issues.

In the meantime, the Adani Godda power plant, which has outstanding bills of about $800 million, is supplying about 500MW less following instructions from PDB.

PDB has outstanding bills of about Tk 35,000 crore, most of which need to be paid in dollars, The Daily Star has learnt from officials involved with the proceedings.

Due to the dollar crunch, those payments have been put on hold, they said.

As of September 4, gross foreign exchange reserves stood at about $20.6 billion, enough to service about four months' import bill, according to data from the Bangladesh Bank.

The dollar crunch has interrupted the import of primary fuel including coal, gas and furnace oil, which hit the power sector, according to the officials concerned.

Subsequently, PDB has been unable to ramp up production despite higher demand due to the rising mercury.

The country's total power generation capacity is 27,086MW.


The government has formed a 12-member taskforce to reframe development strategies.

The taskforce, titled "Re-strategising the economy and mobilising resources for equitable and sustainable development", will be led by former director general of Bangladesh Institute of Development Studies Dr KAS Murshid, reads a circular issued by the Planning Division yesterday (10 September).

According to the circular, the taskforce has been formed to formulate anti-discriminatory and sustainable development strategies. It will prepare a primary overall report within the next three months to lay the foundation of a just, sustainable and moving economy.

Other members of the taskforce are- former World Bank official Akhtar Mahmood, Professor of Dhaka University's Economics department Dr Selim Raihan, former head of the research department of Commonwealth Secretariat Dr Abdur Razzak, Professor of Yale University's Economics Department Dr Mushfiq Mobarak, Professor of BUET Dr Shamsul Haque, Professor of Dhaka University's Economics department Dr Rumana Huque, former president of MCCI Nasim Manzoor, Research Director of BIDS Dr Monzur Hossain, Executive Director of CPD Dr Fahmida Khatun, Chief Executive Officer of BDjobs AKM Fahim Mashrur and member Secretary of General Economics Division of the Planning Commission Dr Md Kawser Ahmed.


 

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Walton Digi-Tech Industries Ltd is setting up a lithium battery manufacturing plant at its Hi-Tech Park in Chandra, Gazipur.

The homegrown electronics manufacturer has signed a technical collaboration agreement with Chinese technology giant Huawei to locally produce lithium batteries for mobile network sites.

Initially, Walton will target the domestic market, which is valued at Tk500 crore. The company plans to expand into solar power systems, electric vehicles, and electronic gadgets, according to Walton Digi-Tech Industries Chief Business Officer Touhidur Rahman Rad.

Currently, nine mobile tower operators, which manage over 45,000 mobile network towers or Base Transceiver Stations (BTS) across the country, purchase lithium batteries equivalent to around 50,000 units of 48V 100Ah annually.

Walton's new plant, scheduled to start production in February 2025, will have an annual capacity of 80,000 units, which is expected to meet telecom industry demand for the next five years.

As BTSs require power storage to maintain services during grid disruptions, the shift towards solar power and efficient lithium batteries is accelerating, phasing out less efficient lead-acid batteries.

Touhidur Rahman noted that 30% of BTS batteries have already been replaced with lithium, with expectations for this to rise to 50% in the next two years.

Huawei Bangladesh CEO Pan Junfeng highlighted that Huawei's advanced technology, including intelligent batteries for telecom BTS, is used by 340 telecom operators in 170 countries, holding one-third of the global telecom energy technology market.

Walton Digi-Tech Managing Director SM Monjurul Alam Ovee said the partnership with Huawei would drive the lithium battery industry forward, contributing to a greener country.

He described the venture as more than a business opportunity, as it supports Walton's commitment to environmental sustainability by phasing out lead-acid batteries.

Touhidur added that the collaboration with Huawei allows Walton to enter a sophisticated market segment. He also noted that the transition from lead-acid batteries to lithium for solar power systems would be manageable.

Walton Digi-Tech plans to locally manufacture all components of the lithium batteries except the cells due to current limitations in domestic cell production. The company has initially invested Tk15 crore, with a potential additional Tk100 crore investment contingent on the feasibility of setting up a cell manufacturing unit.

The company's Chairman, SM Rezaul Alam, told TBS that duty relief for imported raw materials is necessary to protect local manufacturers.

Yao Wen, Chinese ambassador to Bangladesh, said, "At present, a new era of energy revolution is ascending globally. Renewable energy sources such as solar photovoltaic and wind power are replacing traditional fossil fuels. Energy storage technology, represented by lithium power, is crucial for future development."

For comparable performance, a BTS requires two lead-acid batteries, which together cost more. Additionally, lithium batteries are at least three times more durable and have 50% lower carbon emissions compared to lead-acid batteries, says Touhidur Rahman.

Bangladesh Auto Industries Ltd, a local company, has built an electric vehicle and lithium battery manufacturing plant in Chattogram and aims to start production later this year.

However, the government has yet to offer incentives for local manufacturing of greener vehicles or energy storage solutions.


The interim government has embarked on a review of all foreign-funded projects – whether ongoing, proposed, or under negotiation – to identify priority projects, initiate their implementation, and discontinue those deemed unnecessary.

As part of this effort, the Economic Relations Division (ERD) has already issued letters to government agencies that are implementing foreign-funded projects.

The letter asks agencies to submit a priority list, along with information on project rationale, feasibility, and progress, by the end of this month.

At the end of last month, letters were sent to the relevant ministries and departments regarding proposed and ongoing projects funded by China. For the projects financed by the Asian Development Bank and the World Bank, separate letters were issued by each ERD wing in the first week of this month.

According to ERD officials, the priority list is being sought to assess the significance of foreign-funded projects, cancel those deemed non-essential, and prioritise the allocation of foreign loans.



ERD Secretary Shahriar Kader Siddiky told The Business Standard, "In the first phase of the review of all foreign-funded projects, letters have been sent to the ministries and departments.

"The ERD will further review the priority list proposals from the ministries and departments. Priorities will then be set through tripartite meetings with development partners and implementing agencies."


ERD officials stated that they will exercise greater caution when reviewing proposed projects, those in the negotiation stage, and projects that have not yet been tendered. This approach aims to ensure that foreign loans are not used for projects deemed non-essential.


The officials also mentioned that development partners have expressed interest in the priority list, noting that it will facilitate the allocation of loans for development projects and expedite large-scale development work.

ERD officials cited examples of less critical projects, such as a plan initiated during the previous government to establish full-fledged television centres in six divisions outside Dhaka and Chattogram.


The Chinese loan scheme for this project was approved by the Executive Committee of the National Economic Council in March 2017. At the time, the project cost was estimated at Tk1,319 crore, with China's loan portion estimated at Tk988.55 crore.

Officials say the ERD was not keen on implementing this relatively insignificant project with foreign loans, leading to a suspension of the loan process for nearly eight years. Nevertheless, Beijing remained very interested in the loan aspect of the project. Additionally, ERD officials noted that the then information minister applied various pressures in this regard.

According to ERD officials, there are currently two full-fledged TV centres in Dhaka and Chattogram, which require government subsidies to operate. The ERD was not interested in expanding this network by establishing six additional TV stations in other divisions, as it would necessitate a significant increase in manpower and government subsidies.

The project remains on China's proposed financing list, but ERD officials stated that such non-critical projects will now be reviewed and potentially discarded.

Additionally, there was pressure on the ERD to secure foreign loans for establishing a railway line from Chattogram to Kaptai Lake in Rangamati.

However, the ERD was reluctant to pursue this project with foreign loans, considering it less critical compared to the conversion of the Dhaka-Chattogram metre gauge railway line to broad gauge. The conversion project, costing Tk8,926 crore, is deemed more important because it will enhance key railway lines, such as Laksam-Chattogram and Tongi-Akhaura, into dual gauge systems.

As a result, the ERD prioritises projects that offer quick returns and make significant contributions to the economy and public services. The focus is on implementing high-priority projects first.

ERD officials also said often project proposals are made without completing all the preparations. But after loan agreements, it has been seen that the project cannot be implemented due to various complications. A commitment fee has to be paid to development partners. Ultimately, the government suffers financially. In this regard, priority should be given to projects that have all kinds of preparations.

ERD officials said several projects, including the Rooppur Nuclear Power Project, Metro Rail, Karnaphuli Tunnel, and Padma Rail Link, have been or are being implemented with foreign loans. Again, due to Covid and Russia-Ukraine war-related situations, Bangladesh has taken massive budget support in the macroeconomic situation and the pressure of foreign debt repayment is gradually increasing.

The officials said priority should now be given to projects that will contribute quickly to the economy, generate quick benefits, and generate employment.

At the end of the recently concluded fiscal 2023-24, the external debt liability of the public sector has increased to $69.66 billion, which is an outstanding increase of 11.6% over the previous fiscal year.

According to ERD data, the government has taken out more than $8.5 billion in budgetary support in the last five years. In the case of budget assistance loans, the money is disbursed as soon as the loan agreement is signed. As a result, the external debt liability has also increased due to budget support. ERD officials think that Bangladesh should be strategic in taking new foreign loans in this situation.

Since liberation, the country has received more than $13 billion in budget assistance from development partners, more than 60% of which has been taken to address the economic crisis caused by Covid and the Ukraine war.

The ERD officials said due to the increase in foreign debt outstanding, the pressure of debt repayment will also increase. The government repaid foreign debt of $3.36 billion in the last financial year. Of this, more than $2 billion has been paid out in principals

ERD expects foreign debt repayments to reach $5 billion in the next two years.

Meanwhile, ERD officials said loan agreements have already been signed for the projects. And while there is some progress in implementation, it is difficult to discontinue these unimportant projects. However, the government will also decide to exclude projects where construction work has not yet started or the tender process has not been completed.

Instructions to ensure safety in development projects

The ERD has sent a letter to the home ministry ensuring the safety of foreign contractors, consultants, and foreigners involved in ongoing development projects funded by foreign sources. The letter also requests the protection of project materials.

ERD Secretary Shahriar Kader Siddiky confirmed that the letter was sent yesterday. A copy has also been forwarded to the Cabinet Division to inform deputy commissioners of the matter.

According to ERD sources, following the students' movement in July, several development workers, including those from India, left the country.

This initiative aims to facilitate their return. Additionally, various development aid agencies have urged the government to enhance security.

 

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The construction of a new cargo terminal at Benapole land port in Jashore has been completed involving over Tk300 crore and it is expected to open in October, according to the port authorities.

Once operational, the terminal will have the capacity to accommodate 1,200 to 1,500 cargo trucks at a time reducing hassles, enhancing trade efficiency and boosting revenue collection.

Benapole port handles about 7,000 to 8,000 metric tons of imported goods from India daily, with space shortages often leading to goods being stored in open areas.

Indian trucks also face delays in unloading due to lack of space.

Port users believe that the new terminal will help address these issues.

Revenue at the port has seen significant growth, increasing from Tk2,425 crore in the fiscal year 2011-12 to Tk5,786 crore in 2022-23 FY. Imports also surged, rising from 12 lakh tons to over 20.35 lakh tons during the same period.

The 24-acre terminal project was taken to reduce congestion of vehicles and improve the port's capacity, with a total cost of Tk329 crore, including land acquisition and construction expenses.

The new facility includes modern amenities such as parking areas, cargo and utility buildings, fire stations, and advanced scanning and surveillance systems.

Project Director Hasan Ali expressed confidence that the terminal will be ready for inauguration by October, with electricity connections being the last step.

Shamsur Rahman, president of the Benapole Customs C&F Agents Association, praised the terminal's infrastructure, expecting it to reduce congestion and increase government revenue.

 

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