Awami govt set to destroy backbone of Bangladesh economy

[aazidane]

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BD's economy is growing because of people's hard work
not hasina's govt.

Our economy would have grown more if it wasnt almost near to impossible to pass a big project without the backing of Haseena family members or giving them commision. Corruption is rampant in this government.

[Dark.Prince]

Our economy would have grown more if it wasnt almost near to impossible to pass a big project without the backing of Haseena family members or giving them commision. Corruption is rampant in this government.

ya bro.......

[Loki]

We are screwed.

[iajdani]

Our economy would have grown more if it wasnt almost near to impossible to pass a big project without the backing of Haseena family members or giving them commision. Corruption is rampant in this government.

Is it not the same story for every government so far? Except Ziaur Rahman nobody else can be spared of that allegation.

[Loki]

Is it not the same story for every government so far? Except Ziaur Rahman nobody else can be spared of that allegation.

He was right about pointing out the various projects under works now. And that's partly the reason why the economy is not doing well right now.

This current admin can barely get any job done. And they are using the wrong policies to address the problems.

[idune]

Our finance minister is a smart man.

Finance minister is smart man for destroying macro economic stability. Dry out money supply so no money available for business to take loan from to maintain and expand their business. Even Awami businessman like Ak Azad prdicticting gloomy situation of economy. Bangladesh Bank already announced contractionary money policy to accomodate awami regime bank borrowing. This will result further shortage of fund in bank. Business will be further squzzed and negative GDP growth will be reflected (if not cooking the book) as trailing indicator. Awami regime seems created perfect condition for indian business to grap Bangladesh market and export houses by cornering local export/business houses. There has already been trend that pharmaceutical market became indian dumping ground bacuse of condition created by Awami regime.

While you harping on 6% (read cooked growth) growth, explain to business and people why bank can not open simple letter of credit? Why bank can not clear even 5 lac taka check in a day? I have experienced that even 7 days ago. One can choose to be shady awami thugs but your colors are showing.

Economic scenario gloomy, says FBCCI President

Thursday, 02 February 2012
Author / Source : SPECIAL CORRESPONDENT


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The views exchange programme was organized by the FBCCI.
But FBCCI President AK Azad depicted a gloomy scenario of the economy and said the government would not be able to achieve the revenue earning target due to low growth.
He identified high lending interest rate (17-21 percent), liquidity crisis in the banking sector, squeezed private sector credit flow and dollar crisis as barriers to economic growth.
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[iajdani]

Finance minister is smart man for destroying macro economic stability. Dry out money supply so no money available for business to take loan from to maintain and expand their business. Even Awami businessman like Ak Azad prdicticting gloomy situation of economy. Bangladesh Bank already announced contractionary money policy to accomodate awami regime bank borrowing. This will result further shortage of fund in bank. Business will be further squzzed and negative GDP growth will be reflected (if not cooking the book) as trailing indicator. Awami regime seems created perfect condition for indian business to grap Bangladesh market and export houses by cornering local export/business houses. There has already been trend that pharmaceutical market became indian dumping ground bacuse of condition created by Awami regime.

While you harping on 6% (read cooked growth) growth, explain to business and people why bank can not open simple letter of credit? Why bank can not clear even 5 lac taka check in a day? I have experienced that even 7 days ago. One can choose to be shady awami thugs but your colors are showing.

These are temporary setback due to huge subsidies provided to fuel for Electricity generation. If BNP invested enough then it would not had been unnecessary. Next year the things will be easier once subsidy comes down to reasonable level.

[idune]

I had just commented in previous post [Business will be further squzzed and negative GDP growth will be reflected (if not cooking the book) as trailing indicator.] And now this....


Import of industrial raw material, machinery slows down in H1

Staff Correspondent

Industrialisation has been showing signs of stagnation as opening and settlement of letters of credit for import of industrial raw materials and capital machinery slowed down significantly in the first half of the current fiscal year.

LC opening for industrial raw materials in July-December posted a negative growth of 8.68 per cent and capital machinery a negative 34.96 per cent growth compared to 68.87 per cent and 85.67 per cent growth respectively in the same period of the previous fiscal year, according to Bangladesh Bank data released on Thursday.

The growth in settlement of LCs or actual import payment for industrial raw materials dropped by 13.43 per cent and capital machinery by 23.32 per cent in July-December compared to that of 45.63 per cent and 34.94 per cent respectively in the same period of FY2010-2011.

Business leaders and economists said, although the central bank was on course of achieving its target of reducing the overall import growth, the policy would take a heavy toll on industries as import of fuel oil to run the costly rental power plants could not be decreased.

‘The opening and settlement of LCs for industrial raw materials and capital machinery in the first six months of the year are giving a clear indication that industrialisation is stagnating in the country,’ Federation of Bangladesh Chambers of Commerce and Industry president AK Azad told New Age on Saturday.

‘The situation is likely to get worse in next six months because of high bank interest rate on lending and prevailing dollar shortage,’ he said.

Azad said the government’s ‘wrong policy’ of tightening money supply to the private sector was pushing the industrial sector into trouble. ‘How will the industries run their operations, if they cannot import raw materials and machinery,’ he asked.

He also predicted that the growth in the gross domestic product this fiscal year might decline. ‘We have been requesting the government for months to reduce the interest rate on lending but the rate has gone even higher to 20 per cent [from around 15-16 per cent],’ he said.

Bangladesh Institute of Development Studies research director Zaid Bakht told New Age that the expected GDP growth of 7 per cent in the current FY might not be achieved as sluggish import of capital machinery and raw materials would affect the overall industrial production.

He said, ‘The import of capital machinery and raw materials should be kept afloat for the sake of GDP growth by decreasing government spending on import of products for its various projects.’

The central bank has recently taken a tighter monetary policy for the January-July period under which it aims at cutting imports amid a dwindling foreign currency reserve and sluggish export growth.

As on Thursday, the country’s forex reserve stands at $9.30 billion coming down from $11.32 billion in March 2011 due mainly to the soaring import of fuel oils by the government to run the costly rental power plants.

According to the BB data, the total growth in import payment made in July-December came down to 16.09 per cent from that of 40 per cent in the same period of the last fiscal year.

Settlement of LCs in the first half of the current fiscal year was $17.43 billion against that of $15.01 billion posted in the same period of last fiscal.

In contrast, the year-on-year import of fuel oils in July-December grew by 67.72 per cent.

Settlement of LCs for fuel oil in July-December posted $2.42 billion against that of $1.44 billion in the same period of FY2010-2011.

BB data showed LCs for $7.28 billion was opened for industrial raw material import in July-December against $7.97 billion posted in the corresponding period of the last fiscal year.

LC settlement for the items totalled $6.62 billion in July-December against that of $5.84 billion in the first half of FY2010-2011.

Letters of credit for $1.04 billion were opened for capital machinery import while LC settlement was $1.20 billion in the first half of FY2011-2012 against $1.60 billion and 0.97 billion respectively in July-December of FY2010-2011.

Azad said, if the BB wanted to bring down import growth of non-essential and luxurious items, the businesses had no problem. ‘But employment generation will be affected, if imports of raw materials and machinery continue to decline.

New Age | Newspaper

[LoveIcon]

^^^^
You have screwed up live post view with your dashes

[idune]

double post

[Donatello]

Finance minister is smart man for destroying macro economic stability. Dry out money supply so no money available for business to take loan from to maintain and expand their business. Even Awami businessman like Ak Azad prdicticting gloomy situation of economy. Bangladesh Bank already announced contractionary money policy to accomodate awami regime bank borrowing. This will result further shortage of fund in bank. Business will be further squzzed and negative GDP growth will be reflected (if not cooking the book) as trailing indicator. Awami regime seems created perfect condition for indian business to grap Bangladesh market and export houses by cornering local export/business houses. There has already been trend that pharmaceutical market became indian dumping ground bacuse of condition created by Awami regime.

While you harping on 6% (read cooked growth) growth, explain to business and people why bank can not open simple letter of credit? Why bank can not clear even 5 lac taka check in a day? I have experienced that even 7 days ago. One can choose to be shady awami thugs but your colors are showing.

Whoa...what kind of Bank is that? I mean, if that is true...then it is definitely a sorry state of affairs.

[anonymus]

We are screwed.

With 6% GDP growth rate in this economic enviorment??????????????????????????????????????

[M_Saint]

Is it not the same story for every government so far? Except Ziaur Rahman nobody else can be spared of that allegation.

You know it's out right dishonesty by heart to put AWAMY dalal's economic performance in the same bracket of BNP+ JI Walas, but still decides to bubblier with the same line over and over, why? As the saying goes, when you walk like duck, quack like it and eat like how it does etc. then you are a duck; which applies on dalal too. Now, are the payments for dalali too high, for that you are so compulsive to make excuse on every RAWAMY failure? And your line of praising on dead ZIA is similar to the one of Prothom-Alo/Daily star AKA Bharatio B team walas, which also is a perfect propaganda line on giving all credits to a disliked dead that would never come to protest or claim the prize, whereas negating all living achievements of his post decissors. Do you think that we whoopee your type's arse every time by eating turtle and drinking pee? Your goablian style wouldn't make us Bharati's dalals as it is not 60s or 70s besides a very matured highway of informative one.

[idune]

Whoa...what kind of Bank is that? I mean, if that is true...then it is definitely a sorry state of affairs.

All banks across the board having same fund issue. These because of excessive govt borrowing to Awami regime corruption on rental power plant. And on top of it Bangladesh bank pursuing contractionary monetary policy to squezze money supply. Very much motivated to destroy economy and make space for india invaders.

[M_Saint]

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With 6% GDP growth rate in this economic enviorment??????????????????????????????????????

Without taking triple digit inflation in some and double in full extents, devaluing local currency and measuring GDP by it against the internally promulgated one; any rosy equation on GDP's growth could be declared but the reality of 2/3 of the population's endless sufferings for triple digit increase of food, energy and rent's cost wouldn't reflect through it.