Monday, November 14, 2022

Beximco acquires 5.25% stake at Shipping Corporation

Beximco Ltd has decided to ask for a directorship at the Bangladesh Shipping Corporation as the conglomerate acquired a 5.25% stake in the state-owned shipping line. The decision came at a Beximco board meeting.

Beximco earned revenue of Tk1,919 crore in the July-September quarter this year, which was Tk1,758 crore a year ago. However, because of increased costs including that of production, administration, distribution and finance, the company's net profit for the three months dropped to Tk369 crore, from Tk450 crore in the same quarter last year.

Quarterly earnings per share (EPS) stood at Tk3.83 this year, which was Tk4.11 a year ago.Beximco shares having a face value of Tk10 each closed at the floor price of Tk115.6 in the Dhaka Stock Exchange. Beximco Pharmaceuticals Ltd, the drag-making arm of Beximco Group, has seen its quarterly revenue grow to Tk979 crore, from Tk847 crore a year ago. But, rising costs reduced its EPS to Tk3.24 in the July-September quarter from Tk3.28 for the same period last year. The group's ceramic exporting wing Shinepukur Ceramics, on the other hand, secured a quarterly EPS of Tk0.10 each in the July-September quarter, which was Tk0.02 a year ago, while its quarterly turnover increased to over Tk49 crore from Tk36.4 crore in the previous year.

Saturday, October 29, 2022

Salman F Rahman: Bangladesh gives advice on labor rights their due importance

PM's Adviser for Private Industry and Investment Salman F Rahman details steps government has taken to develop labor sector

Bangladesh considers the recommendations of the United States of America, European Union and the International Labor Organization (ILO) on labor rights with due importance, said Prime Minister's Adviser for Private Industry and Investment Salman F Rahman.

Speaking at the virtual meeting of the US-Bangladesh labor working group on Thursday, Rahman detailed the steps taken by the current government in the labor sector. The Prime Minister's Adviser for Private Industry and Investment and US Under Secretary for Economic Growth, Energy, and the Environment Jose W Fernandez led the Bangladesh and US delegations respectively at the inaugural meeting of the working group.

US team leader Fernandez praised the steps taken to develop the labor sector in Bangladesh and called for the full implementation of the recommendations of the International Labor Organization, said the Ministry of Foreign Affairs.

He pledged to provide necessary cooperation and work together for the further development of the labor sector of Bangladesh. Bangladesh and the US discussed "collaboration and assistance" to Bangladesh as it takes further steps to implement the requirements developed by Bangladesh for its International Labor Organization roadmap and adhere to internationally recognized labor rights.

The objective of the meeting was to support Bangladeshi implementation of commitments to improve labor rights protections and to further economic cooperation between the US and Bangladesh, according to the office of the Spokesperson, US Department of State.

Secretary to the Ministry of Labor and Employment Md Ehsan-E-Elahi, Bangladesh Ambassador to the United States Muhammad Imran, BIDA Executive Chairman Lokman Hossain Miah, Executive Chairman of BEZA Shaikh Yusuf Harun, Executive Chairman of BEPZA Major General Abul Kalam Mohammad Ziaur Rahman, US Ambassador to Bangladesh Peter Haas and high-level representatives from relevant departments joined the meeting.

On the other hand, the US delegation presented its observations on the revision of labor laws and regulations and the registration of trade unions. The representative of the Ministry of Commerce urged the US side to seriously consider the issue of providing duty-free facilities to Bangladeshi products in the United States.

Saturday, October 8, 2022

Beximco Ltd finalised €32.5 million expansion plan

Bangladeshi conglomerate Beximco Ltd has finalised a €32.5 million expansion plan for its Knit Fabric Facility ING Bank and Germany's ECA-Euler Hermes are funding the project which is expected to fosters the expansion and upgrading of its vertically integrated Textile Manufacturing Plant. The loan agreement was signed by Anil Kumar Maheshwari, COO, on behalf of Beximco Ltd and Lukas Strauch, director and B Ponsioen, MD on behalf of ING Bank.

This milestone that furthered Beximco's international presence, actualised the import of advanced German and other textile equipment through a German exporter; sourcing competitive equipment financing from ING Bank, with an insurance-backed cover from Germany's Export Credit Agency (ECA).

The deal has aggregated 38 equipment suppliers in a single export contract through their international strategic financial advisor – M/s Blend Financial Services Ltd. On successful financial closure of this Euler Hermes backed transaction, Beximco's Group Director & CEO, Syed Naved Husain said, "This was a very distinctive transaction for us, and it has opened up various avenues for Beximco for its future expansion and growth plans and for the Bangladeshi Textile Industry as a whole towards international financing propelling its global presence to new heights."

Referencing the conglomerate's milestone, Vaibhavi Thakkar, co-founder, and CEO of Blend Financial Services Ltd said, "As a Co-founder & CEO of Blend, we are ecstatic to partner with Beximco in their growth journey that is committed to provide high quality products without compromising its sustainability goals and promoting Bangladesh on an international platform." Blend is well positioned to provide be-spoke solutions by rallying through its network across all the stakeholders, basis the requirement of the company. In this landmark transaction, Blend has cemented its position as an "Environment Conscious Global Advisor" wherein we partner with our clientele by providing a solution that are aligned to its goals & strategy, she further said.




Saturday, September 24, 2022

World Bank’s continued support

The World Bank’s new Vice President for South Asia Martin Raiser has reaffirmed the World Bank’s continued support for the country’s green, resilient and inclusive growth. “Bangladesh is a development success story in South Asia, and the World Bank is proud of being a partner in the country's development journey for the past 50 years,” said Raiser.
 
“We remain committed to helping Bangladesh achieve its growth aspirations. This will require timely policy actions to build strong public institutions, improve competitiveness, ensure climate resilience, and strengthen external and fiscal buffers,” he said.

During his tour, Raiser met Finance Minister AHM Mustafa Kamal and commended the government for the rapid post-COVID recovery. They discussed the global economic outlook and the implications for economic policies. “To continue its growth trajectory and enhance macroeconomic stability amid uncertainties and rising inflation, Bangladesh needs to stay the course on the reform priorities set out in its national plans,” he added. During the visit, the World Bank Vice President also met with the Prime Minister’s Private Industry and Investment Adviser Salman F. Rahman, Bangladesh Bank Governor Abdur Rouf Talukder and senior government officials, as well as representatives from the private sector, civil society, and development partners.

The World Bank Group is preparing its new Country Partnership Framework (CPF) for Bangladesh, which will guide its support to the country from 2023-2027.

Wednesday, August 3, 2022

'Diversify export basket, lower import to stabilise currency'


Prime Minister's Private Industry and Investment Adviser Salman F Rahman stressed the need for diversifying the export basket and lowering imports to stabilise the currency. He said the austerity measures taken by the government and the central bank to contain the rising trend of import since early this year are paying dividends as import costs have already shrunk to US$6 billion from over $8 billion a month. Mr Rahman was addressing a business luncheon meeting titled 'BMCCI PowerLunch' organised by Bangladesh-Malaysia Chamber of Commerce and Industry on recent macroeconomic issues at a city hotel, said a press release.

He said the import bill used to be $8 billion a month, which came down to $7 billion last month and $6 billion this month. "I believe our issues will be resolved pretty soon." Mr Rahman said the prime minister took proactive initiatives to protect the economy in pandemic times and she did the same when the dollar prices began skyrocketing. Also, Bangladesh Bank has taken initiatives to reduce imports at the right time, he added. "When this government came to power we had about 4,000 MW capacity in electricity, but now it rose to 22,000 MW which reveals our potent energy situation."

Speaking on the occasion, BMCCI President Syed Almas Kabir said 'BMCCI PowerLunch' aimed for macroeconomic analysis which broadly focus on current economic situation and inform the overall health of economy, a comprehensive view of the recent global financial crisis within a framework and the factor concerning monetary and fiscal policy for crisis management. Malaysian High Commissioner to Bangladesh Haznah Md Hashim and acting CEO of Robi Axiata Ltd Riyaaz Rasheed also spoke, among others.

Monday, August 1, 2022

Salman F Rahman urges private sector to curb power consumption



Prime Minister's Adviser for Private Industry and Investment Salman F Rahman called on the private sector to reduce power consumption in a bid to support the government in tackling the ongoing energy crunch. "Private sectors should save electricity wherever they can," he said while addressing a seminar at the capital's Matijheel organised by the Dhaka Chamber of Commerce and Industry (DCCI).

Speaking as the chief guest at the event, he also said the measure will only be temporary. The businessman's request to the private sector comes a few days after the government instructed energy consumption in government offices to be reduced by 25% among other austerity measures to navigate through the crisis.

Government and private sector representatives were also present in the seminar titled 'Export of Pharmaceutical sector upon LDC Graduation: Strategies & Way Forward'.

An abnormal rise in fuel oil price in the international market is hampering fuel oil-based power production in the country. To tackle the situation, the government has taken several measures including closing shops after 8.00pm and daily rotating blackouts with timetables for specific areas.

Sunday, July 31, 2022

Diversification of exports

Prime Minister's Private Industry and Investment Adviser Salman F Rahman has emphasized on diversification of exports and reducing imports to stabilize the currency's depreciating trend.

He was speaking at a business luncheon meeting organized by Bangladesh-Malaysia Chamber of Commerce and Industry at a city hotel.

Salman said the austerity measures initiated by the government and the central bank to rein in a bullish trend of import since the beginning of the second half of last fiscal year are paying dividends as import costs have shrunk to $6 billion from over $8 billion a month. "It [imports] used to be $8 billion a month, which came down to $7 billion last month and $6 billion this month. I believe our issues will be resolved pretty soon," he said.

Salman said the prime minister took proactive initiatives to protect the economy in pandemic times and she did the same when the dollar prices began skyrocketing. "Alongside, Bangladesh Bank has taken initiatives to reduce imports at the right time." "When this government came to power, we had about 4 thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation. Though we now have a better situation to attract the FDI and I also admit there is room for development," he says. The policies that make RMG a successful enterprise have to be replicated in other sectors," he added.


Wednesday, July 20, 2022

New business strategy for Biman

Biman Bangladesh Airlines has drafted a new business strategy with special focus on cutting its ticket prices for domestic routes to maximize revenue and turn itself around in the domestic airways market.

The national flag carrier has also decided to improve passenger services on different routes as per its business policies to restore its strong position in the domestic aviation market. However, the move has irked private aviation operators, who claim the new move will push private airlines into competing on an unhealthy and uneven field, as Biman’s ticket prices would be reduced through using subsidies from the government.

In a recent letter to Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman, the Aviation Operators Association of Bangladesh (AOAB) said eight private airlines have invested thousands of crores in the industry, but many were forced to shut down their operations as they could not survive in the face of Biman's business strategy. Biman Bangladesh Airlines has drafted a new business strategy with a special focus on cutting its ticket price for domestic routes to maximize revenue and turn around its position in the domestic airways market. The national flag carrier has also decided to improve passenger services on different routes as per its business policies, to reinstate its strong position in the domestic aviation market.

Tuesday, May 10, 2022

Salman F Rahman is not satisfied with Dhaka airport services

An airport represents the image of a country. It is not a good image when it comes to Hazrat Shahjalal International Airport.Prime Minister's Private Industry and Investment Adviser Salman F Rahman has expressed dissatisfaction with the quality of passenger services at the Hazrat Shahjalal International Airport. "Overall, I am not satisfied. There are many scopes of improving the services. Those working at the field level have to change their attitude. I have talked to people concerned about these," the adviser told reporters after inspecting the airport. "Prime Minister Sheikh Hasina sent me to visit the airport after she came to know about various types of passenger harassment," he added. He also said since the present manpower for airport management cannot reduce passenger suffering, there are plans to outsource ground handling, luggage handling, and scanner management at the third terminal. But, that will take a lot of time. For now, the goal is to improve the present situation, Salman added.

 

 

"The government has taken this matter very seriously. After this inspection, if we see that the rate of complaints is not decreasing, we will take more stringent measures," said Salman F Rahman. He said he identified a few places where passengers are harassed the most. "Many have complained that money is demanded for immigration clearance. Authorities are taking actions in this regard," he added.


Passengers can file harassment complaints to the special branch office. An immigration app is also being developed, which is expected to reduce passenger harassment. At the press briefing, the prime minister's adviser said that the passengers who bring gold from abroad have to declare the amount of gold to the customs based on which the tariff is determined. Then they have to pay the amount to a bank which is far. After depositing the money, they come back to the customs, which is a lengthy and inconvenient process.  

However, the authorities have been asked to move the bank next to the customs so that passengers have to walk less. The authorities have also been asked to consider if rescanning of baggage is possible before it reaches the belt, which can lessen the pressure on the customs.  

He said that an airport represents the image of a country so when someone has a negative experience at an airport, he gets a negative image of the country.

 

Wednesday, March 23, 2022

Beximco Pharma recieved sub-licence from the United Nations-backed Medicines Patent Pool

Beximco Pharma got a sub-licence from the United Nations-backed Medicines Patent Pool to produce a generic version of Paxlovid, Pfizer's oral treatment for Covid-19.

Beximco will manufacture this drug – a combination of nirmatrelvir and ritonavir – in Bangladesh following successful technology transfer and manufacturing regulatory approvals. Nirmatrelvir is a novel main protease inhibitor that specifically blocks the activity of the enzyme needed for SARS-CoV2 viral replication.

Ritonavir is a strong cytochrome P450 (CYP) 3A4 inhibitor and pharmacokinetic boosting agent for nirmatrelvir. Paxlovid got the emergency use authorisation from the US Food and Drug Administration in December 2021 for the treatment of mild-to-moderate Covid in adults and pediatric patients (12 years of age and older). The sub-licence was granted under a voluntary licencing agreement between Pfizer and Medicines Patent Pool to facilitate broader global access to this antiviral combination.

On 20 January 2022, Beximco got a sublicence from Medicines Patent Pool to produce another Covid drug, molnupiravir, which was developed by MSD and Ridgeback Biotherapeutics. Beximco Pharma managing director Nazmul Hassan said, ‘We are delighted that Medicines Patent Pool has granted us a sub-licence to produce Pfizer's breakthrough Covid-19 treatment, which builds on the licence granted to us in January 2022 for the production of molnupiravir.’

Saturday, February 19, 2022

Federation of Bangladesh Chambers of Commerce and Industries gives suggestion to Bangladesh Bank

Federation of Bangladesh Chambers of Commerce and Industries president Md Jashim Uddin said that the Bangladesh Bank’s new guidelines for the payment of bank employees’ salaries would hinder banks’ lending to cottage, micro, small and medium entrepreneurs.

The FBCCI president came up with the observation at a webinar on ‘Bi-annual economic state and future outlook of Bangladesh economy: private sector perspective’ organised by the Dhaka Chamber of Commerce and Industry on the day. Speaking about the BB’s guidelines, Jashim requested the central bank to relax the guidelines so that the banks can serve the CMSMEs. He thanked the central bank for allowing banks to open sub-branches and agent banking.

However, he said that the banks would not be able to compete with the micro-financial institutions or non-government organisations if the BB’s guidelines on bankers’ salaries remain unchanged. NGOs can appoint a field officer at Tk 10,000 monthly pay and the entities can charge interest at above 20 per cent, he said.

On the other hand, banks are not allowed to charge more than 9 per cent interest on their borrowers, he said, adding that it would be tough for banks to compete with NGOs.

To strengthen the CMSME sector, he also asked the central bank to specify the sub-sector-wise lending targets for banks. Highlighting the importance of CMSME sector in different economies, DCCI president Rizwan Rahman said that the sector contributed only 25 per cent to Bangladesh’s GDP and that was significantly lower considering its contribution in India and China.

Most of the loans under stimulus packages are disbursed among medium industries, Rizwan said. To solve the financing issue, the central bank should set separate targets for the cottage, small, micro and medium entrepreneurs, he said. Rizwan also proposed that a separate bank for the cottage, micro and small entrepreneurs should be allowed to operate as only the medium entrepreneurs can only fulfil the requirements of traditional banks.

The governor also agreed to separate CMS and medium parts of the CMSME loans to emphasise the CMS segment. Speaking about the inflation, the governor said that the central bank was closely monitoring the inflation as it was creeping up during the coronavirus in the country and it was a global phenomenon.

Speaking about the country’s plan to attain $80 billion export earnings by 2024, Metropolitan Chamber of Commerce and Industry president Md Saiful Islam said that the country had attained significant growth in export earnings in the current fiscal year mainly due to the peace and tranquillity prevailed in social sector of the country for past two and a half year.

Tuesday, February 8, 2022

BEXIMCO Group takes control of Fareast Islami Life Insurance

Beximco Group has taken control of board of scam-hit Fareast Islami Life Insurance Company Limited by purchasing 19.81 per cent shares of the insurance company.

On February 3, the Bangladesh Securities and Exchange Commission gave its nod to the group to nominate representative of the BEXIMCO Group for the board of Fareast Life, BSEC officials said. The new board of directors can start activities after taking consent from shareholders at upcoming annual general meeting of the company.

Besides, the new board must comply with individually 2 per cent and jointly 30 per cent shareholding rules of the BSEC. Tradenext International Limited and Jupiter Business Limited, two associate companies of BEXIMCO, purchased 9.91 per cent and 9.9 per cent shares of Fareast Life respectively in recent days. On January 30 this year, both companies applied to the commission to be directors of Fareast Life.

As per the approval, the companies namely Tradenext International Limited and Jupiter Business Limited who hold more than 2 per cent shares each in Fareast Islami Life Insurance Company may nominate one or more individuals against their shareholding in the company.

Tradenext International proposed Beximco Group executive director Mostafa Zamanul Bahar and Shanta Asset Management vice-chairman Arif Khan to be directors of the insurance company while Jupiter Business recommended Beximco Pharmaceuticals chief financial officer Ali Nawaz, Beximco Textiles general manager Masum Mia and businessman Jahurul Islam Chowdhury. Apart from them, the BSEC also allowed Sheikh Kabir Hossain, Lafifa Jamal, Mozammel Haque, Ibrahim Hossain Khan, Sheikh Mamun Khaled and Rafiqul Islam as independent directors of the board.

Besides, Fareast Life sponsors Md Helal Miah and Fareast Securities was made directors of the company. The Group wants to revive the image and business of the company, the BSEC officials said. On September 1, 2021, the BSEC restructured the board of directors of Fareast Islami Life Insurance Company and nominated 10 independent directors for the company.

The new directors would replace them. The media reported that an investigation of the BSEC found that the owners of Fareast Islami Life Insurance Company Limited embezzled and laundered more than Tk 2,125 crore from the company in the past decade. The BSEC shared its investigation report recently with finance ministry and the Bangladesh Financial Intelligence Unit to look into the matter.

Monday, January 24, 2022

Institutional investors should be key stocks traders: Salman F Rahman

Prime minister’s private industry and investment adviser Salman F Rahman, also vice-chairman of Bangladesh Export Import Company, speaks at a programme on the debut trading of BEXIMCO’s green Sukuk Al Istisna’a at the DSE office premises at Nikunj in Dhaka on Thursday. Bangladesh Securities and Exchange Commission chairman Shibli Rubayat-Ul-Islam, DSE chairman Md Eunusur Rahman and DSE managing director Tarique Amin Bhuiyan were present on the occasion. — New Age photo

The institutional investors should dominate trading activities in place of retail ones for reducing volatility on the country’s stock market, said Salman F Rahman, private industry and investment adviser to prime minister and vice-chairman of Bangladesh Export Import Company.

He made the comment at a programme on the debut trading of BEXIMCO’s green Sukuk Al Istisna’a at DSE’s office premises at Nikunj in Dhaka.Earlier on July 8, 2021, the Bangladesh Securities and Exchange Commission gave the final approval to BEXIMCO for issuing Tk 3,000 crore Shariah-compliant green Sukuk. On its debut trading day, prices of the Sukuk increased by 1 per cent to close at Tk 101 each.

Salman said that the country’s stock market has structural defects including that it is retail based one and participation of institutions in the market are very minimal. ‘Participation of institutional investors in matured markets is very high, but we see opposite on our market that results in significant volatility on the market,’ he said.

Brokerage houses should act as real institutions and adopt corporate culture to gain trust of the retail investors for managing their portfolios, he said. Another problem of the market is that it is an equity-based market where debt market is rarely visible, he said. ‘The BSEC is working to introduce various products on the market, but we need more innovative products like Sukuk to address banks’ interest rate sensitivity,’ Salman said.

Monday, January 3, 2022

Stock market starts on positive note

Dhaka stocks soared on the first trading day in 2022 as investors went for buying shares heavily with expectation of better trend on the market in the new year.

DSEX, the key index of the Dhaka Stock Exchange, gained 1.42 per cent, or 96.48 points, to close at 6,853.13 points on Sunday after gaining 25.5 points in the previous session.

The market began  on high note and continued with the momentum until the end of the session as a section of investors went for heavy buying on the first trading day of 2022, market operators said. Investors expected that the market might perform better from the beginning of the new year, they said.Besides, the financial institutions which sold off shares ahead of December closing would go for investments again, they said.

The media reported that most of the banks witnessed growth in operating profits in 2021 compared with that in the previous year that attracted some investors to the bank shares, the market operators said.

Share prices of many companies have dropped significantly in the recent downward trend on the market that instigated investors for bargain hunting, they said. Among the large capitalised companies, share prices of BEXIMCO, Beximco Pharmaceuticals, GPH Ispat, LafargeHolcim Bangladesh and LankaBangla Finance soared on the day. However, the investors’ confidence in the market is yet to be restored that has resulted in instability on the market, the market operators said.

Turnover on the DSE declined to Tk 894.17 crore on Sunday from Tk 921.81 crore in the previous session. The market has been in the doldrums for the last five months due to a host of reasons, including a tussle between the Bangladesh Bank and the Bangladesh Securities and Exchange Commission over stock market-related issues, share price manipulation by a section of unscrupulous investors and continued share sales by the foreign investors, they said.

Bangladesh Shipping Corporation, Fortune Shoes, IFIC Bank, GSP Finance, Sonali Paper, One Bank, Genex Infosys, Delta Life Insurance and Power Grid Company were the other turnover leaders on the day.