The global business and political elite gathered on January 24 in the Swiss mountain resort of Davos for their annual festival of schmooze and serious debate at the World Economic Forum (WEF). Climate change, tensions in the Middle East and global energy security were all high on the agenda of the fourday, highaltitude huddle of top movers and shakers.

Political unrest in Bangladesh during the fag end of last year made some foreign buyers divert their orders to Pakistan. Readymade garment (RMG) export from Pakistan in December 2006 was up by 15 per cent against the same period of the previous year and 32 per cent over the previous month, Karachis daily Business Recorder reported on January, 23.

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka has urged the SAFTA Ministerial Council (SMC) to make a thorough review of the implementation of the SAFTA agreement with a view to assessing its role in expanding trade among the SAARC countries. The chamber said this through a press release as the SMC is due to hold its second meeting shortly.

The interim government is reviving the process of privatisation of the New Mooring Container Terminal (NCT) aiming to make it operational soon and ease container congestion at the countrys premier Chittagong seaport. The Ministry of Shipping held a brief discussion on the NCT privatisation process on January 24 at the ministry and decided to go for a detailed discussion in the next four to five days.

As unemployment levels in Asia is rising slightly in 2006, a report of ILO said that everyone is not benefiting from Chinas phenomenal economic growth. Global Employment Trends report of The International Labour Organisation (ILO) said that despite economic growth of 8.0 percent in East Asia last year, the highest in the world, unemployment rose 0.1 percent to 3.6 percent.

Top WTO trade ministers should agree to step up stalled multilateral trade talks at their upcoming meeting in the Swiss Alps, WTO Director General Pascal Lamy said on January, 23. About 30 key trade ministers, including top officials from the EU, United States, Brazil and India, are to hold a meeting with World Trade Organisation chief Lamy on January 20 on the sidelines of the World Economic Forum in Davos. While the talks are not intended to be a negotiating session, Lamy said they would provide an opportunity for the ministers to sound each other out on their positions.

The government will extend all possible cooperation to private sector entrepreneurs for setting up industrial ventures that will manufacture goods to substitute for the countrys imports of such items like mobile handset. Special assistance will also be provided to small and medium enterprises (SMEs) in the use of new technology for importsubstituting or exportbase expanding areas.

Long delays at the Chittagong Port cause huge financial losses to ship operators, which add to cost of business and raise prices for consumers. Most of the ships at the countrys premier port have to spend 24 to 99 hours whereas in Singapore and Malaysian ports, ships stay only for around 12 hours.

The interim government has revived the process to make three nationalised commercial banks (NCBs) – Sonali, Janata and Agrani – public limited companies during its tenure. It is expected that the finance ministry would soon submit a proposal for the corporatisation of these three NCBs to the Cabinet Division, which would forward it to the council of advisers to the interim government for approval.

Pharmaceutical products of Bangladesh can enter into Australias off patented and generic medicine market subject to fulfillment of certain procedural requirements by the exporters. This was mentioned by Chief Executive Officer Ian Chalmers of Medicines Australia, the leading association of exporters and importers of medicine in Australia, during his discussion with the Bangladesh High Commissioner to Australia M Humayun Kabir in Canberra on January 23.

Congenial and conducive political environment is a precondition for sustained economic growth. With the drastic change in the world economy as a result of intense activities of globalization, it is vital that the objectives of politics should take a forward looking approach for achieving macroeconomic stability, encouraging private sector development, promoting good governance, investing in social development, accelerating trade liberalization, and strengthening financial sectors to meet the 2015 MDGs. Experience has shown the importance of sustainable growth as a necessary condition for poverty reduction.

Bangladesh Bank is actively considering tougher legal steps against bank loan defaulters. The central bank is seeking cooperation of the finance ministry to amend the Representation of the People Order (RPO) 1972. The RPO that bars bank loan defaulters from contesting any election is needed to be amended as its arm does not reach the loan defaulters of financial institutions.

Sri Lanka is expected to raise US$200 million by selling government bonds to overseas portfolio investors this year to help fund a sharp jump in the budget, the central bank chief said on January 22.
The central bank partially liberalised foreign currency investment rules in November to allow funds to buy up to five percent of Sri Lanka government bonds outstanding in the market in an effort to bring more liquidity into the market.

Bangladesh is increasingly becoming an attractive location for investment of the International Finance Corporation (IFC), with the global financial institutions lending commitment showing a 45 per cent rise since the fiscal 2005. The IFC, the private sector arm of the World Bank, approved loans worth US$161 million in the fiscal 2006, up from the last fiscals $111 million, for the promotion of the countrys private sector, according to official figures.

Bangladesh’s lone meat-processing company said on January, 21 it was in line to launch the country’s first-ever meat exports, sending halal or Islamic-certified products to the Middle East. The Bengal Meat Company said it was expecting clearance for export to Dubai in the next few weeks as it looks for a share of the global market in halal products, estimated at 1.2 trillion dollars annually. Initially, the export will be approximately 50,000 dollars worth of meat every day

Foreign investors are driving a boom in Malaysia’s luxury condominium market, lured by the relaxation of purchasing rules, a strong economy and low prices compared to other Asian capitals. There is a feeling that there is value in Malaysia. People recognise that over a reasonable period of time, values are likely to go up.

China Development Bank (CDB), one of China’s three policy banks, will take the lead in commencing commercial operations, according to the Third National Financial Work Conference. This is the first time China has officially announced the reform of policy banks, which also include the Export-Import Bank of China and the Agricultural Development Bank of China.

The non-performing loan ratio of nationalised commercial banks(NCBs) of Bangladesh experienced improvement but was at ‘unsustainably’ high in the first quarter of the current fiscal,2006-07 due to lower recovery rate, revealed Bangladesh Bank Quarterly released recently. The gross NPL ratio was 25.04 per cent for July-September period while in April-June period it was 31.38 per cent. Net NPL of the NCBs was at 15.79 per cent, the quarterly said.

The chief adviser to the interim government, Fakhruddin Ahmed, in his address to the nation on Sunday, January21 laid down an ambitious agenda of sweeping reforms of the state’s institutions, a streamlining of the electoral process, and a crackdown on corruption and political muscle, but stopped short of providing a timeline of when his military-backed government would end its tenure.

Speakers at a seminar held in Dhaka on January 21 urged the representatives of Bangladesh to safeguard the interests of the LDCs in World Economic Forum. Bangladesh will attend the meeting as the coordinator of the least developed countries (LDCs). The speakers also stressed the need for upholding the interests of the 32 LDCs through a combined approach. The demands of the LDCs should be for full agricultural and labour market access.