MFIs want loan recovery from Aila-hit people

The NGO Foundation expressed concern about the survival of the
micro-credit institutions due to an embargo imposed on recovery of
agricultural and micro-credit money disbursed in the Aila-hit areas of the
country's southern districts. 'The NGOs that disbursed loans in the
areas will face closure if they are to suspend loan recovery for one year,'
Foundation chairman Dr Muhammad Ibrahim told Finance Minister AMA Muhith
at a meeting at the Finance Ministry Wednesday. Recently, the
Microcredit Regulatory Authority slapped the restriction suspending loan
recovery by the NGOs for one year from June 28 this year and asked for
rescheduling the unrealized and default loans for next one year as the
cyclone last May hit hard life and livelihood of people in the coastal
belt. It also asked the micro-credit institutions to lend fresh credits
to their members after rescheduling the previous loans and instructed
taking measures so the borrowers do not face any harassment in fresh
borrowing. 'We'll have to look into it as they raised the concern,'
Muhith told reporters after the meeting, adding that the decision in this
regard would be taken in consultation with the authorities concerned.
Dr Ibrahim apprehended that the suspension of loan recovery would
affect financial discipline of the micro-credit institutions and
requested the minister to put off the recovery on case-to-case basis.
NGO Foundation, the federation of NGOs in Bangladesh, also aired
concern over the initiative for establishing NGO Commission as the
government did not yet discuss with them the possible framework of the
proposed watchdog body. They also urged the Finance Minister to set the
criteria for NGOs which would be engaged in implementing government
programmes.

Four IPOs hit stock market next month

Staff Correspondent Four initial public offerings of three companies
and a mutual fund will hit the stock market next month with the four
entities floating shares worth some Tk 89.43 crore. The four
entities are Marico Bangladesh Ltd, ICB AMCL 2nd Mutual Fund, Islami
Insurance Bangladesh Ltd, and Dacca Dyeing and Manufacturing Company
Ltd. Marico Bangladesh, a multinational company, will float
14,92,100 shares worth some Tk 13. 43 crore. The offer price of the
company's share is Tk 90 each ( including a premium of Tk 80),
according to SEC sources. Subscription of the Marico Bangladesh's
share will begin on August 2 and finish on August 6. For the
non-resident Bangladeshis, the closing date will be on August 16.
IDLC Finance Ltd and Equity Partners Ltd are the issue managers of the
company's IPO. The subscription of IPO of ICB AMCL 2nd Mutual Fund
will begin on August 9 and finish on August 16. For the NRBs, the
closing date will be on August 25. The mutual fund, sponsored by
ICB Capital Management Ltd, will float 50 lakh shares of Tk 100 each
totalling Tk 50 crore. Resident Bangladeshis will get units worth
Tk 30 crore, while units worth Tk 5 crore will be reserved for NRBs,
and another Tk 5 crore for mutual funds. Sponsors will get units worth
Tk 10 crore. ICB Asset Management Company Ltd, a subsidiary of
Investment Corporation of Bangladesh, is working as asset manager of
the fund. Islami Insurance Bangladesh Ltd will float 9 lakh shares
of Tk 100 each totalling Tk 9 crore. Subscription period of the
company's IPO will be from August 16 to August 20. For NRBs, the
closing date will be on August 29. AAA Consultants and Financial
Advisers Ltd is the manager to the issue. Dacca Dyeing and
Manufacturing Company Ltd will float its IPO from August 30 to
September 3. For NRBs, the deadline will be on September 12. The
company will float 1.7 crore shares of Tk 10 each totalling Tk 17
crore. ICB Capital Management Ltd, a subsidiary of ICB, is the
manager to the issue. The four companies offering IPOs next months
are: * Marico Bangladesh Ltd * ICB AMCL 2nd Mutual Fund *
Islami Insurance Bangladesh Ltd * Dacca Dyeing and Manufacturing
Company Ltd.

NBR finishes close to target Revenue shortfall runs into only Tk 523 cr

The National Board of Revenue (NBR) has achieved 99.01 percent of its
revised revenue-earning target fixed for the last fiscal year although the
growth was a slim 10.63 percent year- on-year due to poor import duty
collection. The overall revenue collection by the NBR was Tk 52 ,476
crore in fiscal year 2008-09 against the target of Tk 53 , 000 crore.
The shortfall was Tk 523 crore. NBR high officials said there was no
growth in import duty rather revenue fell by 2.82 percent last fiscal
year. According to Bangladesh Bank statistics, during the July-April period
in the last fiscal year import increased by only 8.86 percent, whereas
the growth was 24.68 percent in the same period of 2007-08. However a
senior NBR official said they are putting emphasis on local tax including
income tax and VAT (value added tax) -- two good performing areas. Growth
in both VAT and income tax was more than 18 percent last fiscal year. The
NBR target for income tax was Tk 13 ,538 crore although achievement was
Tk 351 crore higher than the target. The collection was Tk 13 ,889 crore
and growth 18.26 percent. At local level, Tk 17 ,317 crore tax was
collected against the target of Tk 17 , 722 crore with a growth of 12.44
percent. But the VAT in local level collection was Tk 10 ,915 crore -- Tk
164 crore higher than the target. The growth was 18.91 percent. At import
level, Tk 20 ,856 crore was collected against the target of Tk 21 , 322
crore with a growth of only 5.09 percent. Import-level tax includes import
duty, VAT and supplementary duty. Import duty collection fell by 2.82
percent, while VAT (import level) growth was 8. 19 percent and
supplementary duty ( import level) growth 33.38 percent. For the current
fiscal year the NBR fixed a target of collecting Tk 61 ,000 crore revenue,
and the growth will be 16.24 percent. The NBR officials said they have
started work to collect more revenue than the target and taken different
initiatives from the beginning of the current fiscal year in this regard.
The NBR will conduct survey in Dhaka, Chittagong and Sylhet to net new
taxpayers.

Method to push up industrial profit -Rafaet Ullah Mirdha

Profitability of Tusuka Trousers Ltd, a Gazipur-based export-oriented
garment factory, increased by 21 percent in a seven-month period
last year as it could save around Tk 24.41 lakh per month by
adopting a productivity improvement method. The method mainly focuses
on five components -- land and building, raw materials, machinery,
workforce, and power and energy, and minimises costs in every
segment. Bangladeshi entrepreneurs spend a lot in these components,
said Aminda Atthanayake, managing director and principal consultant
of a Sri Lankan industrial consulting firm operating in Bangladesh
since 2000. The recession-hit Bangladeshi readymade garment (RMG)
entrepreneurs are increasingly opting for such methods to survive in
the crisis through proper utilisation of their existing manpower and
financial capacity. Fayzur Rahman, deputy managing director of
Tusuka Group, said he is going to adopt the method for the second
phase soon as he was benefited from the first phase. The group
exported garments worth $75 million last fiscal year with a 15
percent consecutive growth rate for the last five years, he added. He
went for the productivity improvement method of Spectrum Lanka
Technology Solution Limited ( SLTS), the Lankan consulting firm. "We
should adopt the method to tackle recession impacts, bring orders at
our factories and improve relationship between owners and workers,"
Rahman said. "It can help improve 70 percent work efficiency from
the existing 38 percent," Atthanayake said. Bangladeshi entrepreneurs
spend a significant amount for purchasing land and constructing a
mammoth building without proper planning. Atthanayake said on an
average an entrepreneur spends 40 percent extra money for the five
components for running a factory. The entrepreneurs build the
structures in such a way where they waste a significant amount for
creating unnecessary space, he said. He found that 90 percent
garment factories waste fabrics worth Tk 5 lakh to Tk 10 lakh each
per month for faulty cutting by unskilled workers. "It is possible to
reduce the cutting wastages through proper training and good layout
of structures and machinery," said Atthanayake, who completed
designing 192 garment factories in Bangladesh since 2000.
Installation of extra machinery and faulty set-up coupled with
improper sitting arrangement for unnecessary workers cost a huge
amount in an RMG plant, he said. These also lead to higher consumption
of power and energy, the expert pointed out. Atthanayake said after
signing agreements with the owners, his firm sends trainers and
experts to the factories for designing or redesigning the layouts
and training the workers. Currently 13 Lankan and 26 Bangladeshi
people are working in his company.

Ctg port strained as crane operators strike

Dhaka, July 21 ( bdnews24. com)- Operations at Chittagong port were
strained Tuesday as crane operators on docks began a strike for better
pay and work conditions among other demands. "Around 350 winch men,
employed under the berth operators, have been abstaining from work
since 8 am," Abdul Matin, president of Chittagong Winch Men Welfare
Association told bdnews24. com. The docks came to a standstill in
the morning, he said. "They will return to work after being ensured
better pay, permanent port identity cards and gate passes, welfare
allowance, life and health insurance and better work conditions."
The country's major sea port was not totally inoperative through the
day as the port authorities and berth operators took alternative
steps. "Loading and offloading of goods were suspended for sometime
in the morning, but the berth operators and other of the port
workers began operating the cranes," Ahsanul Kabir, port director
(traffic), told bdnews24. com. The crane operators have been in talks
with berth operators on several occasions and have also launched
strikes twice before. The berth operators and port authorities
assured them of meeting their demands, but did not deliver, say the
strikers. A member of the berth operators association told bdnews24.
com that were surprised and upset as the winch men had stopped work
before the latest negotiations had ended. "Their pay demand is not
logical, and the issue of permanent identity cards and port entry
passes are pending with the port authority," he said. The berth
operators are trying to resume talks with the winch men, he said.