India’s inflation jumped to a two-year high of 6.73 per cent, the government said on February 15, prompting a cut in diesel and petrol prices and raising expectations of more rates hikes to stabilise prices. Following the inflation data on February 15, India’s oil minister Murli Deora announced to reporters that prices for petrol would drop two rupees (4.4 US cents) or around 4.5 per cent while diesel prices would fall 1 rupee or 3.2 per cent effective at midnight.

Bangladeshi nationals working abroad remitted home $2,861 million in the first half of the current fiscal year, which is 31 per cent more than the $2,178 million remittance the country received in the corresponding half of FY200506, reveals the Bangladesh Bank statistics. The highest amount of $889 million or 31 per cent of the total remittance during the reporting period came from Saudi Arabia.

Questioning the popular notion that microfinance helps lift the poor out of poverty, a new study claims that it does not foster as much economic development and entrepreneurship as was previously thought. In the study prepared for Cato Institute, nonpartisan research foundation, author Thomas Dichter, who is analysing international development since 1964, argues that micro-loans do not help noticeably either in economic growth or entrepreneurship. Microfinance provides small loans to the poor for investment in small businesses which, in turn, are expected to lead to economic growth and reducing poverty. But Dichter distinguishes between subsistence activities and real business, asserting that microfinance is not, in fact, used for business purposes at all.

A FICCI-World Bank research paper has suggested energy trade between SAARC countries to help overcome crippling shortage of energy in South Asia. The paper released ahead of the two-day SAARC Business Leaders Conclave starting here from today suggests that public sector policymakers should focus on enhancing energy security through trade rather than the costly proposition of full national energy self-sufficiency.

Steady economic growth alone cannot be the only means for Bangladesh to achieve the targets of millennium developments goals (MDGs) by 2015, rather improving accountability and transparency of service delivery in the public sector is key to reaching the targets, said a World Bank (WB) report. The report titled To the MDGs and beyond: accountability and institutional invention in Bangladesh released on February 15 at the WB office said that Bangladesh has already made significant progress in its MDG targets like increasing gender parity in education and cutting infant mortality rates.

Saudi business tycoon Nagi Al Awad, chairman of Al Awad Group, has expressed his desire to invest $ 3.0 billion in Bangladesh. The Saudi businessman will visit Bangladesh March 8 for talks to buy state-owned Bangladesh Shilpa Rin Sangstha (BSRS) and invest in power sector, oxygen manufacturing plant and leather processing industry.

India has decided to remove non-tariff barriers (NTBs) it imposes to restrict products from other countries as part of their responsibility as the regions biggest economy to help boost the regional trade among the SAARC countries, Indian Minister of State for Commerce Jai Ram Ramesh said on February 17. They have eventually decided to remove the NTBs with Pakistan, Bangladesh and others, he said, adding that India has already taken few measures to remove the trade barriers. India is now looking positively to remove tariff, nontariff and technical barriers to trade as part of their new look to the regional economic cooperation. He spoke of Trade Liberalisation Programme (TLP) under South Asia Free Trade Area (SAFTA) agreement and technical assistance to the members of the Least Developed Countries (LDCs) at the inaugural session of a two-day second SAARC Business Leaders Conclave that began on February 17.

Foreign Affairs Adviser Iftekhar Ahmed Chowdhury on February 14 said Malaysia has given approval for recruiting over one lakh workers from Bangladesh. He said the government has set up a coordination committee with officials from the ministries of foreign affairs, labour and employment, civil aviation, home and the Department of Passport and Immigration, Bureau of Manpower Employment and Training, and Bangladesh Overseas Employment and Services Ltd (BOESL) to resolve problems in sending skilled manpower abroad.

The highest bidder for the Rupali Bank, Saudi Arabian prince Bandar, is expected to take over more than 93 per cent shares of the bank on completion of the required procedures within this month. The team representing Prince Bandar Bin Mohammad Abdur Rahman Al Saud will sign the final version of sales and purchase agreement with the commission and pay $330 million any time this month for taking over 67.26 per cent shares. As the economic affairs committee endorsed the offloading of remaining Rupali shares, there is no obstacle in handing over the shares which were disposed of through international tender last year.

Drug manufacturers on February 14 signed a deal with the government to set up a Tk 4.5 billion pharmaceutical park to boost exports and cut dependence on imported raw materials. The Bangladesh Small and Cottage Industries Corporation signed a memorandum of understanding with the Bangladesh Association of Pharmaceutical Industries(BAPI) to build the park for at least 50 drug industries in Munshiganj.

Japan reported on February 14 a record 19.84 trillion yen (163.6 billion dollars) current account surplus for 2006, highlighting lopsided global trade flows that are fueling tensions over the weak yen. The surplus in the current account, the broadest measure of trade in goods and services, was up 8.7 per cent in 2006, the first rise in two years. The major contributor was the income account surplus which grew 20.8 per cent to 13.75 trillion yen due to solid returns on investments by firms and households and repatriated profits. Exports increased 14.3 per cent to an all time high 71.62 trillion yen, helped by the declining value of the Japanese currency.

Singapore on February 14 raised its economic growth forecast after the economy expanded at a better than expected 7.9 percent in 2006, one of the fastest rates in Asia. The expansion in gross domestic product (GDP), the value of all goods and services produced in the country, exceeded the 7.7 percent previously estimated by the Ministry of Trade and Industry.

China’s economic growth is expected to fall to 9.6 percent this year from 10.7 percent last year amid a mild slowdown in exports, the World Bank said on February 14. Export growth is likely to decline to 20 percent this year, in real terms, from 24 percent in 2006, the World Bank said in its 21page quarterly update on China.

Export Promotion Bureau (EPB) and German Technical Cooperation (GTZ) jointly opened a new Trade Information Centre (TIC) at the EPBs Kawran bazar office on February 14.Secretary of the Ministry of Commerce Feroz Ahmed inaugurated the centre as the chief guest. Recognising the crucial role of the export industries in domestic job sector, the renovation and up-gradation of the TIC was a long felt demand and as such EPB approached the German Technical Cooperation (GTZ) for its technical assistance in setting up the centre. The GTZ supported the renovation work of the centre as a part of its private sector development programme named PROGRESS.

Malaysia drew a record 20.2 billion ringgit (5.78 billion dollars) in foreign investments in its manufacturing sector in 2006, but is facing more competition for funds. Trade Minister Rafidah Aziz last years 12.8 percent increase in foreign direct investment from 17.9 billion ringgit in 2005 was the highest level recorded to date. Despite the increasing global competition, Malaysia continues to attract global foreign investment outflow, reflecting the countrys costcompetitiveness as a manufacturing and export base.

China suffers the most severe brain drain of any country, raising fears there may not be enough talent and skill around to manage the worlds fourth largest economy. Out of about one million Chinese that have studied abroad since the 1980s, two thirds have chosen to stay overseas after graduation, the highest ratio of any economy. It has been a great loss for China to see welleducated professionals leave after the country has invested a lot in them.

Sri Lankas trade deficit widened by nearly a third to 3.37 billion dollars in 2006, as the country spent more to import petroleum. Sri Lankas imports jumped 15.7 per cent in 2006 to 10.25 billion dollars while exports climbed 8.4 per cent to 6.88 billion dollars. The deficit was 2.52 billion dollars in 2005. The Indian Ocean nation, which imports all of its petroleum needs, said oil imports rose 25 per cent to 2.07 billion dollars as global prices reached record levels.

Halal food market volume throughout the world has reached $150 billion while its market in nonMuslim world is also expanding fast. Current value of Halal food market throughout the world is estimated at $150 billion. Due to price increases and consumer market expansion, the market volume would reach $500 billion by the year 2010.

The Indian High Commissioner in Bangladesh on February 13 placed before the Finance Adviser a package of proposals aiming to boost trade between the two countries. India will set up new land ports and renovate the existing ones at seven points along the IndoBangla border to facilitate export and import. India would like Bangladesh to take similar measures.

Dhaka is the most business-friendly city in Bangladesh, according to a study by the World Bank (WB) and the International Finance Corporation (IFC). Bogra imposes the most complex and costly administrative barriers, while Chittagong and Khulna rank in the middle, said the study that covered only four cities of the country. The study report, titled Doing Business in South Asia 2007 that included subnational data from Bangladesh for the first time, was released in Washington DC on February 13.