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Daily News Recap
Monday, June 15, 2015
US praises Dhaka's deals with Delhi
The garment sector is set to miss its export target this fiscal year after the three-month political
turmoil hampered shipments. Between July last year and May this year, garment exports raked
in $22.92 billion, which is up 5.51 percent year-on-year but below the periodic target of $24.26
billion, according to data from the Export Promotion Bureau.
Now, to meet the yearly target of $26.9 billion, some $3.98 billion has to be earned this month,
the closing month of fiscal 2014-15.
http://www.thedailystar.net/business
Capital flight eats up 1.1pc of GDP: report
Illicit outflows of funds from Bangladesh equal 38.5 percent of the combined official development
assistance and foreign investment the country received between 2008 and 2012, according to a
study. The illicit outflows ate away 1.1 percent of the country's gross domestic product, according
to the report, “Illicit Financial Flows and Development Indices: 2008–2012”, released in the first
week of June by the Global Financial Integrity, a Washington-based research organisation.
The per capita loss stood at $6.84. The loss could fund 58.9 percent of the country's education
spending or 30.1 percent of health spending. The slippage amounts to 12.7 percent of the total
tax revenues of the country, said the study, which looked at 82 countries.
On average, $1.31 billion funnelled out of Bangladesh a year between 2003 and 2012, according
to the earlier estimate of the organisation. This report, the latest in a series by GFI, provides a
comparison of illicit financial flows from some of the world's poorest nations and compares those
values to some traditional indicators of development.
http://www.thedailystar.net/business/capital-flight-eats-11pc-gdp-report-97111
BGMEA formally seeks land from India
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) formally placed its
proposal to the Indian High Commissioner on Sunday, seeking allotment of land in India to set
up a warehouse and distribution centre. BGMEA President Md Atiqul Islam handed over the
proposal to the Indian High Commissioner in Dhaka Pankaj Saran at the latter's office.
Earlier, India sought a proposal from BGMEA over its investment plan in India. The business
leaders, led by FBCCI President Abdul Matlub Ahmed, demanded 50 acres of land in India for
investment during a meeting with Indian Prime Minister Narendra Modi on June 07.
"The land will be procured in the name of a company, formed by BGMEA, BKMEA and others, to
set up a warehouse and distribution centre, primarily for RMG products," the proposal read.
http://www.thefinancialexpress-bd.com/2015/06/15/96676
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Capital Market Research Department
Daily News Recap
Monday, June 15, 2015
VAT-free facility squeezed
The government has squeezed the VAT-free facility on the rented commercial space for small
businesses in the proposed budget for the next fiscal year. Now, small factories and businesses
owners, who run their business in rented space, will have to pay 9 per cent value-added tax on
the rent of commercial space and establishment of the size above 150 square feet, according to
a statutory regulatory order issued by the National Board of Revenue.
http://newagebd.net/129422/vat-free-facility-squeezed/#sthash.TYQxRfPb.dpuf
Software export rises by 3%, but misses target
The country’s software exports have seen nearly 3% rise to $109 million in the first 10 months of
the outgoing fiscal year as compared to the same period of previous fiscal, but has failed to reach
the target due to political unrest. The latest data of Export Promotion Bureau (EPB) shows the
export figure 6.95% less than that of the target of $117.25m for the period of July-April.
Bangladesh set the software export target of $130m for FY2014-15. The sector people blamed
political unrest and lack of proper infrastructure and insufficient investment for the export
shortfall. In July-April of the fiscal year 2014-15, Bangladesh earned $109.10 million, exporting
computer services, which is 2.95% higher compared to $106m in FY2013-14 when Bangladesh
fetched $124.72m from the IT sector.
The software exports include computer data processing and hosting services, computer
consultancy service, export of computer software, customised and non-customised.
http://www.dhakatribune.com/economy/2015/jun/15/software-export-rises-3-missestarget#sthash.dDdQYmqS.dpuf
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Capital Market Research Department
Daily News Recap
Monday, June 15, 2015
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