Haque Specialized Group's News

The world economy has finally started to grow after about 10 years of stagnation and a series of 'false economic dawns'. "Today, almost ten years after the most severe financial crisis since the Depression, a broad-based economic upswing is at last under way," The Economist reported, referring to latest economic indicators. "In America, Europe, Asia and the emerging markets, for the first time since a brief rebound in 2010, all the burners are firing at once," the report says. The data shows that the American economy has kept growing for the past several quarters, though it faces the headwinds. The US Federal Reserve last week raised rates for the second time in three months while fears about Chinese overcapacity, and of a Yuan devaluation, have receded. "In February factory-gate inflation was close to a nine-year high. In Japan in the fourth quarter capital expenditure grew at its fastest rate in three years," the report says. "The euro area has been gathering speed since 2015. The European Commission's economic-sentiment index is at its highest since 2011; euro-zone unemployment is at its lowest since 2009." The Economist analysis also showed that in February South Korea notched up export growth above 20 per cent. "Taiwanese manufacturers have posted 12 consecutive months of expansion. Even in places inured to the recession the worst is over." "The Brazilian economy has been shrinking for eight quarters but, with inflation expectations tamed, interest rates are now falling. Brazil and Russia are likely to add to global GDP this year, not subtract from it," according to the Institute of International Finance. It reckons that in January "the developing world hit its fastest monthly rate of growth since 2011". However, the Economist cautioned that "it does not mean the global economy is back to normal." It pointed out "oil prices fell by 10 percent in the week to Mar 15 on renewed fears of oversupply; a sustained drop would hurt the economies of producers more than it would benefit consumers."....

Published at: 2017-03-21 00:00:05

A Bangladeshi teacher has received this year's global teachers’ prize. Shahnaz Parvin, along with 49 others won the global Teachers’ Prize-2017 on the second day of the 'Fifth Global Education and Skills Forum' in United Arab Emirates (UAE) on Monday. – source UNB  ....

Published at: 2017-03-21 00:00:05

Consumers in the country are still compelled to buy soybean oil at exorbitant prices despite a significant fall in its prices in the global market. The prices of soybean have showed a 16 per cent decline in the world market this year but the country's refiners are yet to go for any downward readjustment, market observers said. Bottled soybean of different companies is now selling at Tk 105-Tk 107 a litre as against Tk 94-Tk 98 in October and Tk 98-Tk 102 in December last, according to the Trading Corporation of Bangladesh (TCB). TCB data also showed that prices of loose soybean oil increased to Tk 88-Tk 92 a litre from earlier Tk 80-Tk 82 recording a 10-12 per cent hike. Following a surge in global prices, domestic prices of both bottled and loose soybean were increased twice between October and December last year by the country's refiners, according to the Bangladesh Tariff Commission (BTC).   "The world market prices of soybean oil have started declining from the first week of January which is yet to be reflected in the domestic market", Consumers Association of Bangladesh (CAB) Secretary Humayun Kabir Bhuiyan said. He said soybean oil cost US $800 a tonne in December last but the price started declining from January to $720 in February this year. He said local refiners raised the prices of soybean by 10 to 12 per cent following the then surge of last year. "But now they are delaying readjustment, depriving the consumers," he regretted. According to the web portal of Nasdaq, soybean oil prices declined by nearly 16 per cent in last three and half months. Contacted, Biswajit Saha, General Manager of City Group, a leading refiner, told the FE that the global market has been fluctuating. "Refiners will observe the market for some more days aiming to maintain stable market in the upcoming month of Ramadan," he said. He said prices of palm oil have been showing an uptrend and are likely to surpass the price level of soybean. "Businesses are still undecided concerning the matter. It will take some time to fix new prices," he added. He informed the FE that the local importers bring 1.7-1.8 million tonnes of palm and soybean oil annually of which soybean constitutes 24-25 per cent.     tonmoy.wardad@gmail.com....

Published at: 2017-03-21 00:00:05

The central bank has relaxed its regulations allowing the commercial banks to issue guarantee for foreign firms in both local and foreign currencies to facilitate their business in Bangladesh. "We've relaxed the guidelines for foreign-exchange transactions to facilitate foreign firms' business activities in Bangladesh," a senior official of the Bangladesh Bank (BB) told the FE. He also said the banks are now allowed to issue such guarantee without having to take prior approval from the central bank. The BB issued Monday a circular to this effect, asking all authorised dealer (AD) banks dealing in foreign exchanges to follow the latest instructions on issuance of guarantee on behalf of non-residents in favour of residents in Bangladesh. It is observed that for underlying transaction beneficiaries in Bangladesh require guarantee in Bangladesh Taka (BDT) instead of foreign currencies, the central said in its circular. "To facilitate the transaction, it has now been decided that ADs may issue guarantee, bid bond or performance bond in local currency against taka-equivalent back-to-back foreign-currency guarantee   with   suitable   coverage   for   exchange-rate fluctuation   from   counter-guarantee-issuing banks abroad," the circular noted. Under the existing regulations, the ADs are allowed to issue guarantee, bid bond or performance bond in foreign currency on behalf of a non-resident firm/company favouring residents in Bangladesh provided a back-to-back guarantee covering the guaranteed amount from an overseas correspondent or other bank abroad is held by them. The relaxation came a day after allowing foreign investors to invest their funds in local companies through purchasing shares with local currency directly. "This is to clarify that shares may be issued in favour of non-residents by debit to non-resident Taka  accounts  maintained  by ADs  in  the  names  of  their  overseas  branches  and  correspondents against  inward  remittance  in  convertible  foreign  currencies," the BB said in its clarification issued Sunday.     siddique.islam@gmail.com....

Published at: 2017-03-21 00:00:05

Government's revenue authority disapproves of a provision in the draft gas, petroleum and mineral resources development fund law as it fears superseding any other law may disturb fiscal discipline. Officials said the income-tax wing of the National Board of Revenue (NBR), in its vetting of the draft law, recommended that the discretionary provision of the drafts law be deleted. The vetting outcome has been sent to the secretary of the ministry of energy and mineral resources recently. On a close scrutiny, the income-tax wing observed that the provision of superseding other laws may frustrate the legislative discipline as many of the special new laws are incorporating the provision of overriding. "As per fiscal law, the government has empowered the tax law to overrule any other law for the sake of internal revenue protection," said a senior NBR official. In the Finance Bill 2016, the Income Tax Ordinance 1984, section 184 F, income tax ordinance gets preferences to any other laws on imposition and collection of income tax, income-tax exemption, tax cuts, gathering information for the imposition of tax and maintaining privacy of tax-related information. "Income tax matters will get preferences too on the proposed gas, petroleum and mineral resources development fund law 2016," the NBR said in the vetting report. It has been noticed that many of the draft laws are incorporating such provision emboldening their respective special laws, which may disrupt the fiscal discipline, he added. The income-tax wing has issued vetting report recommending for the authorities concerned to scrap the provision, he further informed. Confusion and complexities might arise if such provision of 'superseding any other law' is incorporated into all of the new draft laws.  It may puzzle the people concerned. However, the draft law is a special law and will get preferences over the general laws, it added. In the vetting, the Value Added Tax (VAT) wing also gave its vetting suggesting depository of VAT and Supplementary Duty (SD) of the fund to the public exchequer. The law on the anvil has incorporated a provision on depository of VAT and SD in the gas, petroleum and mineral resources fund. "As per existing revenue law, there is no scope to deposit VAT and SD into other funds as it is a part of integrated fund of the government," it said. Also, if any additional amount of VAT is collected from consumers, it should be refunded to the consumers rather than keeping the amount with fund of any of the organizations. The additional VAT should be also deposited under the VAT code of the government exchequer. doulot_akter@yahoo.com....

Published at: 2017-03-21 00:00:05