Showing posts from June, 2012

Flood Problem of Chittagong is for real!

Order for removal of all commercial set-ups in Dhanmondi

The Sahara shadow is getting darker

The government recently made a deal with Sahara India Parivar, allowing them to invest in the real estate sector. The government has also given them 100 thousand acres of land around Dhaka to develop a modern satellite township. In usual state of affairs, local real estate companies have protested this move. They have their grievances because the government had not been able to provide them with adequate land and other amenities for years. Why this sudden change in policy and that too for a foreign company?
Real Estate and Housing Association of Bangladesh and Bangladesh Land Development Association asked the government to hold a meeting with them to discuss this issue before sealing the deal with Sahara India Parivar. They said that if the government can provide them with the same civic amenities and the same amount of land, they can make at least an equally good plan like Sahara India Parivar. Their reasoning is simple – why head for an Indian company when the local players are equa…

Private Investments Decreased in current fiscal

In the last two fiscal years, the private investment in the various industrial sectors of Bangladesh has decreased. This was caused by both the downgrading global economy and a few internal issues like shortage of power, infrastructural barriers, fluctuating inflation rate, frequent changes in policies and strict credit rate.
The recent survey conducted by Bangladesh Bureau of Statistics found that private investment dropped down 0.37 percent in the ongoing fiscal year. This is the second time this situation has occurred in the last 20 years. The other time it happened was in 2009. A few roundtable meetings held by the Centre for Policy Dialogue discussed about this problem and highlighted three issues as the biggest factors of the decrease in private investment.
One of the major problems behind this incidence is the poorly founded infrastructure of the financial institutes, government policies and the coordination between the government and the private investors. Difficulty in accessin…

Bangladesh : Export Oriented and Export Linkage Industries

Bangladesh is now focusing mostly on export oriented businesses and it is gaining significant success. Currently, promotion of export oriented business is the first priority of the government of Bangladesh.

Companies exporting at least 80% of their products or services are to be considered as export oriented businesses. These products also include IT-related goods. The following fiscal and non fiscal incentives are to be provided to bring 100% export oriented businesses:

i. Tax free machinery and spare parts importing
ii. A flat rate has been established for any exportable item and it is duty free
iii. 90% credit against non negotiable sale agreements
iv. A prescribed rate for all ready made garment industries and other raw material using export oriented industries
v. Export oriented businesses will have the facility to handle a certain amount of foreign currencies
vi. Export-oriented cottage industries will be 100% free from income tax
vii. Importing banned/ reserved raw…