Refayet Ullah Mirdha

The government is setting up 17 economic zones in southwestern districts to bring about an industrial revolution in the largely non-industrialised region as it looks to accelerate economic growth of Bangladesh.  

Work orders to the garment sector in Bangladesh fell by more than 20 per cent for the September and November season as consumers in the western world are tightening their belts owing to blistering inflation and deepening uncertainty caused by the Russia-Ukraine war. 

Yesterday’s opening of the Padma Bridge gave connectivity a shot in the arm since it is going to cut the time needed to move goods between the southwestern region of Bangladesh and the capital city by two to four hours, thus cutting the cost of doing business.

The ongoing Russia-Ukraine war has started to have a heavy impact on garment shipments to Russia as export earnings are declining significantly from this promising market for Bangladeshi apparel goods. 

The ongoing meeting of the World Trade Organisation (WTO) has been extended by one day as countries could not reach a consensus on various issues under discussion within the stipulated time.

Bangladesh has once again called upon nations not to put any restrictions on their food grain exports and sought the continuation of its TRIPS waiver until December 31, 2032, to save the lives of people and newborns.

Two major economic powers of the world, the US and the European Union, are divided on continuation of trade facilities meant for the least-developed countries (LDCs) once they make the United Nations status graduation to become developing countries.

The proposed budget placed in parliament yesterday is geared towards attracting private sector investment to create employment and to expand business, but some proposals need to be reconsidered, said economists and businesspeople.

The budget proposed in parliament yesterday is geared toward attracting private sector investment to create employment and expand businesses, but some proposals need to be reconsidered, said economists and businesspeople.

The government has proposed to cut the tax rate for one-person companies (OPCs) from 25 per cent to 22.5 per cent in order to attract investment in the private sector.

The government proposed keeping the import duty for capital machinery unchanged at 1 per cent for the small and medium industries to give a boost to the sector.

The government has proposed retaining the existing 15 percent tax rate for the textile sector until June 30, 2025 to facilitate the growth of the country's textile and garment sector.

The additional 1 per cent cash incentive on the export receipts of readymade garments would continue in the next fiscal year as the government looks to boost the shipment of clothing items.

The government proposed increasing the source tax on export proceeds to 1 per cent from the existing 0.5 per cent in the next fiscal year.

The Bangladesh Trade and Tariff Commission (BTTC) yesterday suggested the commerce ministry review the price of edible oil in local markets as the product’s price is declining globally.

India has withdrawn its anti-dumping duty on the import of hydrogen peroxide, a chemical used in dyeing and washing plants in the textile industry, from Bangladesh.

The government has set an inflation target of 5.5 per cent for the next fiscal year although the prices of basic commodities are sitting at elevated levels for higher commodities prices globally amid lingering supply chain disruptions and the Russia-Ukraine war.

Export earnings, the largest source of foreign currencies for Bangladesh, slowed in May reflecting the fall in demand in western economies reeling from the crisis caused by higher inflation, the Russian–Ukraine war and supply chain bottlenecks.

Major international clothing retailers and brands are increasing their reliance on the fabrics made in Bangladesh to produce apparel items, owing mainly to shorten lead time and cut the shipping costs that have gone through the roof.

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