The World Bank is going to prepare a strategy paper on power sector to help Bangladesh overcome problems in electricity generation. An expert team from the World Bank headquarters would arrive in Dhaka on March 25 for a 12day visit to initiate activities for preparing the document styled political economy of the power sector in Bangladesh. The paper will highlight all features including investment, existing electricity generation, transmission and distribution system, per capita power consumption, demand, necessary investment in the sector in future to make electricity available for all and its role in the national economy,.

A TRADE bill has been introduced in the Senate of the United States (US) seeking to provide duty-free access of products from Bangladesh and 13 other least developed countries (LDCs) to American market. Senator Gordon Smith introduced the Tariff Relief Assistance for Developing Economies (TRADE) Act of 2007 in the Senate on March 15 to extend certain trade preferences to certain LDCs, including Bangladesh for next 10 years. The bill, cosponsored by Senator Feinstein, Senator Craig and Senator Sununu, was referred to the Senate Committee on Finance.

The Philippines is perceived by foreign businessmen as Asias most corrupt economy, according to a survey on March 13 that also found countries were failing properly to tackle corruption. Singapore and Hong Kong were seen as the cleanest economies, while China, Indonesia and Vietnam posted improvements, the Hong Kongbased Political and Economic Risk Consultancy (PERC) said in a summary made available to AFP.

The government has initiated a move to devise an information database regarding the demand-supply positions of some selected essential commodities that would help keep the prices stable in the local markets. Simultaneously, it has taken up measures including launching of open market sales (OMS) and withdrawal of entire customs duties on imports of rice and wheat to help check the current hike in the prices of some essential items.

The council of advisers at a meeting on March 17 approved a proposal for the establishment of a regional food reserve, SAARC Food Bank, to meet the growing challenge food and nutrition security of more than 150 crore people of the region. The SAARC council of ministers during the pre-summit meeting of the South Asian Association for Regional Cooperation is likely to sign the deal to finalise the establishment of the food bank. The meeting of the SAARC council of ministers is scheduled for April 2 in New Delhi in India.

The country’s remittance inflow posted a 27 per cent jump in the first eight months of the current fiscal year compared to that in the corresponding period in FY200506 with expatriate Bangladeshis sending home $3.81 billion, according to Bangladesh Bank statistics. Illegal transfer of money has gone down drastically as the central bank has stepped up monitoring of such transactions at home. Bangladesh has made over 600 arrangements in different countries to help expatriate Bangladeshis send money to the country which has boosted the remittance inflow.

The Washington-based World Bank (WB) has given a reminder to the government to meet some conditions for obtaining a loan worth US$275 million (27.5 crore) the largest donor agency of the globe committed for power sector development. A mission of the largest development partner is likely to arrive in Dhaka early next month to review the governments preparation for taking the loan.

Emphasising fiscal incentives for country’s productivity, the metropolitan chamber has urged the government to bring about some reforms in the taxation. It suggested that the tax officials should be stripped off discretionary powers as such powers have been misused for which the effective tax rates for companies on an average went up by 10 to 12 per cent.

The Bangladesh Bank might be empowered to temporarily freeze suspicious accounts and confiscate illegal wealth without any court order, in a bid to step up efforts against financial crimes, according to a draft amendment to the Anti-Money Laundering Act (AMLA). Currently the central bank cannot freeze accounts without a court order.

The Businesses welcome and commend the bold steps initiated by the Care-taker Government for tackling corruption, reconstitution of the Election Commission for making necessary preparation for holding a free, fair and credible election and creating an enabling environment for business and restoring the business climate in order to ensure continuity of growth momentum.

The Dhaka Chamber of Commerce and Industry on March 7 voiced concern over the country’s bad performance in international trade due to poor negotiation skills as 21 out of the 44 Bangladesh missions abroad failed to reach targets in first six months of the current fiscal. A DCCI delegation, led by its President Hossain Khaled, met with Foreign Affairs Advisor Iftekhar Ahmed Chowdhury to express their concern and made a 17point recommendation to boost the external trade and remittance.

The Australian High Commissioner in Dhaka, Douglas Foskett, on March 7 urged the Bangladeshi businessmen and exporters to pursue new business opportunities for tapping market in Australia. Foskett said Bangladesh should have an effective trade policy so that exporters can explore opportunities in the Australian market. Business linkages continue to be very important part of our bilateral relationship, and the expansion of two-way trade between Australia and Bangladesh would be a very welcome reflection of the close relations we enjoy, he said at the launching ceremony of a trade brochure Australia expanding your export horizons.

Bangladesh apparel exports to the United States secured the second position after Indonesia in terms of growth in 2006 compared with the previous year. The trend indicated healthy performance among other apparel-exporting countries last year. Indonesia was the top apparel-exporting country to the US market last year with a growth of 27.57 per cent to $3.67 billion (367 crore), while Bangladesh recorded a growth of 22.87 per cent to $2.91 billion, and Cambodia 24.69 per cent to $2.13 billion. The Vietnamese export recorded growth of 18.26 per cent to $3.22 billion last year, although it still faced a risk due to the start of the quota elimination after it became a WTO member on January 11.

Asian stock markets were mostly higher on March 7, extending a tentative recovery as investors went fishing for bargains after Wall Street rebounded following a week of losses. The main indices rose for a second straight day in Shanghai, Sydney and most other markets across the region, but Tokyo and Hong Kong turned lower again. The main European bourses opened slightly higher.

US giant IBM and an Indian technology firm said on March 7 they had devised a smart card to help poor entrepreneurs access credit from institutions that lend to the un-banked. Small traders who have borrowed from microfinance institutions such as Bangalore-based Janalakshmi. Social Services will be able to take part in fruit and vegetable auctions using the card, without having to take loans from greedy moneylenders.

The International Finance Corporation, the private sector lending arm of the World Bank, plans to more than double its investments in Sri Lanka within the next two years. IFC, which currently has 86 million dollars of investments in areas like ports, telecommunications and power, hopes to ramp up its portfolio by helping local companies who are in the process of expanding overseas. The bulk of the investments within the next two years will focus on infrastructure projects like ports and telecoms.

Bangladeshi expatriates living in the United Kingdom (UK) are keen to invest in the country’s education, health and civil aviation sectors. The amount of the investment is about 3.0 billion US dollars. This was disclosed when an eight-member delegation of greater Sylhet district living in the UK met Foreign Affairs Adviser Iftekhar Ahmed Chowdhury at his office. Council President Mohammad Manchab Ali led the delegation.

The interim government is set to double the minimum paid-up capital required to run a bank to Tk 2 billion (Tk.200 crore) soon and is also devising tough regulations for bank directors to make such financial institutions more accountable. To incorporate the planned measures, the Banking Company Act 1991 will be amended further through an ordinance, which will also vest the Bangladesh Bank with more power to formulate banking regulations.

China likes to see its companies and investors make investment in Bangladesh in a bigger way availing of the advantage of the current stable situation and healthy investment climate in the country. We see changes taking place in the country. Ive already told Chinese companies to do it (make investment) now if you want to do it. This is the high time for them to come and do it, said Chinese Ambassador Chai Xi, appreciating the current anticorruption drive under the interim regime and improvement of law and order in Bangladesh.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has taken a plan to establish a separate container-yard in Chittagong for efficient handling of its export-import cargoes. The organisation has already placed a proposal to the government, said the outgoing BGMEA President SM Fazlul Hoque.