Morning Briefings

Tuesday, February, 2016

Macro
FBCCI demands VAT rate at 7pc
The Federation of Bangladesh Chambers of Commerce and Industry on Monday demanded
that the National Board of Revenue set value-added tax rate at 7 per cent lowering from the
uniform 15 per cent proposed at the new VAT and Supplementary Act-2012. At a seminar in
Dhaka on business process under the new VAT and supplementary act to be implemented
from July 2016, FBCCI president Abdul Matlub Ahmad said that 15 per cent VAT was very
high for the poor people of the country.

Link: http://newagebd.net/198816/fbcci-demands-vat-rate-at-7pc/
IMF cuts Bangladesh growth outlook to 6.3%
The International Monetary Fund (IMF) has cut economic growth to 6.3% for this fiscal year
from 6.8% as foretasted in October last year. The projection is much lower than the
governments target of 7% for the current fiscal year. In FY16, real GDP growth is projected at
6.3%, supported by higher public sector wages and public investment, according to IMFs
midterm review, which was released yesterday after the meeting of its executive board that
concluded 2015 Article IV Consultation with Bangladesh. IMF said tax revenue performance
has been weak, with revenues increasing more slowly than GDP. Also, private domestic
demand, particularly private investment, has been subdued, partly contributing to a
slowdown in credit to the private sector, it added.Various economic activity indicators
suggest a slower-than-expected start to the current fiscal year, said the IMF.
Link:
http://www.dhakatribune.com/business/2016/feb/02/muhith-hints-job-contractextension-3-dgs

Govt to prepare inspection checklist for all factories

A file photo shows employees working inside an iron factory in Dhaka. The government has
prepared a draft checklist for inspecting all of the industrial sectors in the country with the
aim of developing an effective inspection system in line with the labour act. The government
has prepared a draft checklist for inspecting all of the industrial sectors in the country with
the aim of developing an effective inspection system in line with the labour act.
Link:http://newagebd.net/198810/govt-to-prepare-inspection-checklist-for-all-

factories/

Overall Market
Stocks end 8-day bear run
Dhaka stocks returned to the positive territory on Monday after an eight-day fall amid
bargain hunting by investors. DSEX, the key index of Dhaka Stock Exchange, closed at
4,560.42 points, adding 0.43 per cent or 19.53 points.The DSEX had lost 157 points in the
previous eight trading sessions as investors became shaky after Board of Investment
executive chairman SA Samad at a meeting on January 24 had made some negative
remarks about the countrys capital market, stockbrokers said.
Universal Financial Solutions Limited
Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com

Morning Briefings
Tuesday, February, 2016

Link: http://newagebd.net/198798/stocks-end-8-day-bear-run/

Stock
NBL
National Bank moves to sell SA Oil Refinery's mortgaged assets
National Bank Ltd has put up advertisements to sell off the mortgaged properties of SA Oil
Refinery that failed to repay the lender about Tk 215 crore. We have run advertisements to
sell the mortgaged properties after the client failed to repay the loans despite several notices,
said SM Sajjad Hossain, head of NBL's law and recovery division. The auction notice is a first
in recent memory for big business groups from Chittagong, where many conglomerates have
failed to pay back loans citing bad business conditions that began in 2007.
Link: http://www.thedailystar.net/business/banking/national-bank-moves-sell-sa-oilrefinerys-mortgaged-assets-211126

BANK
UNSETTLED IMPORTS BILLS : Central bank warns BCBL of more financial penalty
Bangladesh Commerce Bank will have to count Tk 5,000 in fine for each single-day delay in
paying its overdue bills of $1.32 million for local and foreign imports from March 2 if it fails
to pay the bills by February 29. Bangladesh Bank has gone for the hard-line measure as the
BCBL is yet to repay the local and foreign import bills despite facing Tk 50,000 in penalty
imposed by the central bank on July 6, 2015. The BB issued a letter to the managing
director and chief executive officer of the BCBL on January 28 asking the bank to repay its
overdue local and foreign import bills by February 29. The BB is going to impose the financial
penalty on the bank in line with the Article 109 (7) of Bank Company Act 1991. The total
unsettled local and foreign imports bills of the BCBL stood at 53 as of February 1, 2016,
according to the central bank data.
Source:http://newagebd.net/198808/unsettled-imports-bills-central-bank-warns-bcbl-ofmore-financial-penalty/

HSBC to arrange $333m loans for Power Development Board

HSBC Bangladesh will arrange a $333 million credit facility for Bangladesh Power
Development Board. The BPDB will use the funds to implement its 416-megawatt Ghorasal
Third Unit Repowering Power Plant Project in Narsingdi, HSBC said in a statement
yesterday.Md Zahurul Haque, secretary of BPDB, and Arnaud Cachard, head of export
finance in Asia Pacific for HSBC, signed the agreement.
Link: http://www.thedailystar.net/business/hsbc-arrange-333m-loans-power-developmentboard-211135

Telecommunication
Post and Telecommunication Division fears revenue shortfall
The Post and Telecommunication Division will miss the revenue target in this fiscal year as
BTRC fails to sell its unused 15 MHz 3G spectrum in 2,100 band and 10.6 MHz in 1,800
band, official sources said. But Bangladesh Telecommunication Regulatory Commission
hoped that it would be able to achieve the revenue target in the next fiscal year from one time
spectrum assignment fee for 4G from six mobile phone operators. The Post and
Universal Financial Solutions Limited
Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com

Morning Briefings
Tuesday, February, 2016

Telecommunication Division recently made the observation in a letter addressed to Senior

Finance Secretary Mahbub Ahmed. BTRC Chairman Dr Shahjahan Mahmood yesterday told
the Dhaka Tribune that revenue earning would decline in this fiscal year as the regulatory
body could not sell its unused spectrum on time.
Link: http://www.dhakatribune.com/business/2016/feb/02/post-and-telecommunicationdivision-fears-revenue-shortfall

Muhith against making reduced call rate for IGWs permanent

The ministry of finance has opposed a proposal aimed at making the existing temporary rates
of the international incoming call termination and revenue sharing with the private operators
permanent saying those caused losses worth Tk 2.1 crore daily.Officials said the ministry of
post and telecommunications, which had been maintaining the existing rates temporarily
since September 2014, made the proposal to the ministry of finance. According to BTRC
statistics, there is a market of something between 100 million and 200 million minutes of
international call terminations in Bangladesh daily.
Link:http://newagebd.net/198812/muhith-against-making-reduced-call-rate-for-

igws-permanent/

DISCLAIMER:
This report has been prepared by Universal Financial Solutions Ltd. and represents unfiltered news and information
from various sources at the Dhaka Stock Exchange and is provided ONLY for informational purposes. The information
and data on which this report is based are obtained from sources which we believe to be reliable but do not guarantee
that it is accurate or complete. Universal Financial Solutions Limited accepts no responsibility whatsoever for any direct
or indirect consequential loss arising from any use of this report or its contents. Investors are advised to take
professional advice before making investments and Universal Financial Solutions Limited does not take any
responsibility and shall not be held liable for undue reliance on this report. This report may not be reproduced,
distributed or published by any recipient for purpose.

Universal Financial Solutions Limited

Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com