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In December, Bangladesh receives $1.7 billion in remittance
RTV News
01 Jan 2023, 18:24
Last December, Bangladesh achieved $1.7 billion in remittances, which is 4.29% higher than the same period of the previous year.
On Sunday, january 01, this information is known from the Central Bank data.
In December previous year (2021), Bangladeshi migrant workers sent home $1.63 billion.
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India Lifts Rice Export Ban After 14 Months
India has lifted the ban on rice exports after 14 months. In a statement issued by the country's central government on Friday, it was announced that exporters are now allowed to export all types of rice, except Basmati.
The export duty on rice has also been reduced. Previously set at 20%, the rate has now been lowered to 10%.
India's rice exporters are naturally elated by this decision. Suraj Agarwal, the CEO of one of India’s leading rice export companies, Rice Villa, told Indian media outlet NDTV, "This decision by the government will be a game-changer for India's domestic agriculture sector as well as the international rice market. On one hand, rice prices in the global market will decrease, while on the other, farmers will also benefit."
Key Stats:
Duration of Rice Export Ban: 14 months.
Export Duty Reduction: Previously 20%, now reduced to 10%.
Global Impact of India’s Rice Export Ban:
Rice prices in the international market increased by 11.7%.
This was the highest price surge in 11 years.
India’s Share in Global Rice Trade:
40% of the rice traded globally comes from India.
Top Rice-Producing Countries:
Bangladesh, China, India, Indonesia, Thailand, and Vietnam.
Rice is primarily produced in India’s eastern, northeastern, and southern states. Last year, production in these regions was affected due to insufficient rainfall. In response, on July 20, 2023, the central government of India imposed a ban on rice exports to stabilize the domestic market.
Rice is the staple food for more than 3 billion people worldwide. According to the U.S. Department of Agriculture, six countries—Bangladesh, China, India, Indonesia, Thailand, and Vietnam—are currently the top rice producers in the world.
However, India remains the leading exporter of rice. About 40% of the rice traded in the global market comes from India.
Following India's ban on rice exports, the international market saw a rise in rice prices. According to Reuters, the price of all types of rice increased by 11.7%, marking the highest price surge in 11 years.
$2.40 Billion Remittance Received in September
In September, expatriates sent $2.40 billion in remittances to Bangladesh. Converted to local currency (at a rate of 120 BDT per USD), this amounts to approximately 28,856.40 crore BDT. On average, the country received $80.2 million per day during the month.
This information was revealed in an updated report from the Bangladesh Bank on Tuesday (October 1).
The report states that $2.40 billion in remittances were received in September, compared to $2.22 billion in August, indicating an increase in remittance inflow.
Key Highlights:
Total Remittance: $2.40 billion (approx. 28,856.40 crore BDT)
Daily Average: $80.2 million
Increase from August: Up from $2.22 billion in August
Previous Highs:
June: $2.53 billion
July: $1.91 billion (lowest in 10 months)
August: $2.22 billion
In September, $638.25 million was received through state-owned banks, $109.98 million through specialized banks, $1.65 billion through private banks, and $6.21 million through foreign commercial banks.
Additionally, between September 29 and 30, expatriates sent $291.68 million in remittances. Between September 22 and 28, the country received $478.89 million, while from September 15 to 21, $467.03 million in remittances were received. During the second week of September (September 8 to 14), the remittance inflow was $582.66 million, and in the first week, expatriates sent $584.54 million.
Earlier, in June, remittance inflows stood at $2.53 billion, while in the first month of the current fiscal year (July), remittances dropped to around $1.91 billion—the lowest in the past 10 months.
In August, remittances increased again, with expatriates sending $2.22 billion.
Bankers note that since the beginning of the new government, expatriates have reduced their use of informal remittance channels (like hundi) and are now sending remittances through official banking channels, even if they have to wait in line. This shift has led to a significant increase in the country's remittance earnings.
Online Income Tax Return Filing Number Exceeded 50,000
From this system, taxpayers can pay taxes through Internet banking, card payment (debit or credit card), and mobile banking and get the facility of downloading and printing copies of submitted returns, receipts, income tax certificates, and TIN certificates. You can also download and print the e-return filed for the previous year.
Spontaneous and motivated taxpayers have already used the e-return option on the National Board of Revenue (NBR) portal till October 2 due to its ease and convenience. As a result, the number of online income tax return filings has crossed 50,000.
NBR Director (Public Relations) Syed A Mu'men told the media that the e-return registration process has already been made more tax-payer-friendly. A biometric SIM registered with a taxpayer's national identity card is required for successful registration. To verify whether the number used by the taxpayer is biometrically registered or not, dial *16001#.
NBR Chairman Abdur Rahman Khan said that all transactions of NBR will be converted into digital form so that taxpayers can get fast and quality services. That is why our activities are ongoing.
He further said that NBR will work towards digital transformation in the coming months, e-return service center is a part of that.
NBR congratulates those taxpayers who have already successfully filed their income tax returns online. Besides, the organization has humbly requested other individual taxpayers to file income tax returns online using the portal on time.
Incidentally, the National Board of Revenue has set up a call center to assist taxpayers with any issues related to e-returns. Last September 12, taxpayers got immediate solutions to e-return-related queries by calling call center number 09643717171. Besides, taxpayers can report any problem related to e-return in writing and get solutions from the e-tax service option of www.etaxnbr.gov.bd.
All Jewellery Shops to be Closed on 11 October: BAJUS
On the occasion of Durga Puja, all jewellery shops in the country will be closed on Friday (October 11).
Bangladesh Jewelers Association (BAJUS) informed this in a circular on Tuesday (October 8).
It is said that as usual on the occasion of Autumn Durga Puja, BAJUS has decided to close all jewellery establishments across the country including the capital Dhaka, on Ashtami Puja on October 11.
According to the announcement of BAJUS, all jewellery associations in the country will be closed on October 11.
Incidentally, the country's market is currently selling 22-carat gold at Tk1,37,449. Tk1,31,197 per 21 carat, Tk1,12,453 per 18 carat, and Tk92,286 per traditional method gold.
Apart from this, the selling price of gold has to be compulsorily added with a government-mandated 5 percent VAT and BAJUS-mandated minimum wage of 6 percent. However, the wages may vary depending on the design and quality of the jewellery.
The price of gold has been adjusted 42 times in the country's market so far this year. Where the price has been increased 25 times, and reduced 17 times. In 2023, the price was adjusted 29 times.
Trade Deficit Shrinks by 10% in July-August
Major Highlights:
Trade Deficit Decreases by 10%: The trade deficit in July-August of the 2024-25 fiscal year fell to 2.75 billion USD, down from 3.04 billion USD last year.
Export Growth and Reduced Imports: Export earnings rose by 2.5%, while import costs decreased by 1.2%, contributing to the reduced deficit.
Positive Current Account Balance: A rise in remittances helped turn the current account balance positive, with a surplus of 111 million USD, compared to a 610 million USD deficit last year.
In the first two months of the current fiscal year, the country's trade deficit has decreased by nearly 10% compared to the same period of the previous fiscal year.
According to the latest data from the central bank, the trade deficit in July-August of the ongoing 2024-25 fiscal year stood at 2.75 billion USD. In the same period of the previous fiscal year, the deficit was 3.04 billion USD. In other words, the trade deficit decreased by 290 million USD this year.
The Bangladesh Bank reported that this was made possible due to reduced import costs along with an increase in exports.
According to the Bangladesh Bank's data, compared to the same period of the previous year, import costs have decreased by 1.2% to 9.91 billion USD. Meanwhile, export earnings have increased by 2.5% to 7.16 billion USD in the first two months of the current fiscal year, compared to the same period last year.
Another significant factor balancing import costs is the increase in remittances over the past two months, which has led to a positive current account balance for the country.
Moreover, from July to August, the current account surplus reached 111 million USD. In the same period of the previous fiscal year, there was a deficit of 610 million USD.
However, the financial account remains negative. The deficit decreased to 145 million USD in July-August, compared to 1.33 billion USD during the same period last year.
Global Oil Prices Plunge Sharply
Global oil prices have fallen by more than 4%.
On Tuesday (October 15), the price of West Texas Intermediate (WTI) dropped by $3.33, or 4.5%, settling at $70.50 per barrel. Meanwhile, Brent crude fell by $3.28, or 4.2%, to $74.18 per barrel.
Both benchmarks hit their lowest levels earlier in the day, with prices dropping by at least $4.
The decline in oil prices is attributed to Israel’s announcement not to strike Iran’s oil facilities, along with forecasts of weak demand.
Mass Business Shutdowns Spark Nationwide Alarm
The news is alarming. Over the past two months (August and September), around 150 companies from both domestic and international groups, including City Group, BSRM, and US-Bangla, have decided to shut down their operations. This will put the jobs of hundreds of thousands of people at risk, while also damaging the national economy.
According to information from the companies, they are closing permanently based on decisions by their boards of directors. Around 160 companies are already in the process of shutting down. The list of closures includes both small enterprises and large corporations. These companies, registered with the Registrar of Joint Stock Companies and Firms (RJSC), come from both product and service sectors. Additionally, some companies that registered with plans for new investments are now on the closure list.
Data from the RJSC shows that 128 companies closed down in the last five months (May to September). Of these, a record 46 companies shut their doors in August alone, followed by 26 in September. Between July and September, a total of 83 companies ceased operations.
It has been reported that the number of closures began to rise in July, the first month of the current fiscal year. Government data indicates that 16 private companies closed in June, followed by 21 in July.
Recently, political instability and the impact of floods have caused severe damage across various sectors, particularly in industry, tourism, agriculture, and services. In addition, labor unrest in the ready-made garment (RMG) sector—one of the country's top exports—is causing further instability. If the situation does not improve, business owners may face even more difficulties.
Companies Closing Permanently
According to the information provided by the companies, based on board decisions, many businesses are shutting down permanently. Around 160 companies are already in the process of closure. These include both small businesses and large corporate entities, spanning both product and service sectors. Some companies that had recently registered for new investments are also shutting down.
The Registrar of Joint Stock Companies and Firms (RJSC) reports that 128 companies closed in the last five months (May to September), with August alone witnessing a record 46 closures, followed by 26 in September. During July-September, 83 companies ceased operations.
The trend began in July when 21 companies closed, compared to 16 in June.
Causes of Business Shutdowns
Political instability and floods have severely affected various sectors, particularly industry, tourism, agriculture, and services. Additionally, labor unrest in the ready-made garment (RMG) sector—one of the country’s top exports—has created further uncertainty. If the situation does not improve, businesses will face even greater challenges.
Domestic Companies Shutting Down
City Group: Shutting down 30 companies, including City Hair Oil, City Seed Crushing Industries, City Condensed Milk, Shampa Sugar Industries, City Biscuit, and several oil mills. The group has appointed a liquidator, G.K. Rajbongshi, who called for an Extraordinary General Meeting (EGM) in September for closure proceedings.
US-Bangla Group: Closing five companies, including US-BD Security Services, US-Bangla Furniture, and US-Bangla Pharmaceuticals. Liquidators have been appointed following their EGM in September.
BSRM Group: Appointed a liquidator for its Recycling Industries division.
Other Companies: Hospitals like Asmat Ali Khan Central Hospital, healthcare companies such as Lab Quest, and paper manufacturers like Hosendi Paper Mills are also shutting down. Additionally, firms from diverse sectors—including Esquire Holdings, Intek Greenpack, and Urban Fit Properties—are winding up operations.
Foreign Companies Closing Operations
Taiwan-based Maryland Engineering and Singapore-based Weeding Private Company are among those shutting down operations.
South Korea’s Bride Medical & Education Services and India’s Shipcard Marine Bangladesh Ltd. have decided to close voluntarily.
Kite Tech International has also approved its closure during a recent EGM.
Economic and Business Outlook
Mir Nasir Hossain, former FBCCI president, noted that many companies are struggling to recover from pre-existing economic crises. While some businesses have managed to survive, others couldn’t overcome the current challenges. He expressed hope that the business environment will improve soon.
Abul Kasem Khan, vice-chairman of A.K. Khan Group, explained that registering new companies or closing existing ones is a regular part of business. Some companies are shut down to avoid taxes or losses, while others close to reinvest elsewhere. He emphasized that the current economic challenges began three years ago but expressed optimism about future domestic and foreign investments.
Analysts' Perspective
Analysts attribute the closures to inflation, rising production costs, reduced sales, high-interest rates, labor unrest, technical and logistical issues, raw material shortages due to dollar crises, and global conflicts. Political shifts have also limited business opportunities for some companies. However, they believe that the situation will not persist for long and expect improvements in the near future.
This report reflects the growing trend of business closures, driven by both internal and external challenges. October is expected to continue this pattern, with more companies planning EGMs to formalize their shutdowns.
