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.

The interim government resolved that to restore industry regularity, the Government will examine worker wages through the minimum wage board. Following a meeting at the ministry with seven advisors, AHM Shafiquzzaman, secretary to the Ministry of Labour and Employment, announced that the door will be open for debate on wage review for workers through the minimum wage board. Now a new Government is in charge. Tripartite consultation meetings involving the government, factory owners, and labor unions will be called to discuss the wage, the secretary told the local media. Although the current minimum salary went into force in December of last year, officials stated that the interim administration will examine the minimum pay in light of inflation and rising costs for necessities. The Government also decided to take action to ensure that workers receive their arrears payments as soon as possible and to enhance communication between workers and representatives of the Department of Inspection for Factories and Establishments and the Ministry of Labor Advisor Asif Mahmud Shojib Bhuiyan, who chaired the meeting on Wednesday (September 11). The meeting also decided on updating and reforming the tripartite committee, making the labor-related complaint committees functional, and holding hearings on the complaints. Labor unrest will be addressed as soon as possible through measures based on the information collected daily. The interim Government's advisors also resolved to lend Beximco money as quickly as possible to compensate its employees. According to Shafiquzzaman, Beximco has so far received a loan of Taka 70 crore so that it may pay the employees. Some factories also laid off their workers amid the crisis.  

The interim government led by Nobel Prize-winning economist Dr. Muhammad Yunus is facing a significant challenge due to ongoing labor unrest in various industries, including the ready-made garment sector. Workers, frustrated by issues such as wages and benefits, have been staging daily protests, halting production as they take to the streets. In key industrial zones like Ashulia in Savar and Gazipur, hundreds of factories shut down regularly, with some reports even indicating instances of vandalism in certain factories. 219 factories have been reported to be closed in Ashulia today, Thursday (September 12).  In this situation, to protect the country's economy, the workers, owners, and the government have called for the quick opening of the closed garment factories. Hafizur Rahman, the administrator of Bangladesh Chambers of Commerce and Industry (FBCCI), the top organization of businessmen, made this call. On Thursday (September 12), he joined as administrator of the organization at Capital's Motijheel Chamber building and made this call. Hafizur Rahman said many garment factories are closed due to worker dissatisfaction. To sustain the country's economy, these closed garment factories must be opened quickly. A joint initiative of workers, employers, and government is required in this regard. At that time, the businessmen complained to the newly appointed administrator that government agents were always appointed to the FBCCI board. They took advantage. There are about 2,000 members in the General Assembly and 400 members in the Chamber Group. General Board members did not see their pros and cons. Big traders used to get various benefits, while small traders were deprived. The businessmen demanded reforms in all discriminatory matters including the cancellation of the auto director system, demanding the election of the president and directors by direct vote of the general assembly. In response, the administrator expressed his commitment to hand over the responsibility of FBCCI to the elected representatives through fair and acceptable voting within the stipulated time. He said, "Businessmen are the life of the country's economy. I will try to organize the election within the stipulated time. For this, we want everyone's cooperation, so that we can quickly hand over the responsibility to the elected representatives." Meanwhile, among 219 factories closed in Savar's Ashulia industrial zone, 86 factories have remained closed indefinitely due to labor unrest and unstable situation. However, on Wednesday (September 11), after the call of various local political parties and BGMEA leaders, it was decided that all factories would be opened. Experts say that nearly 4 million workers are directly engaged in the country's garment industry. At least two crore people are indirectly benefited. If this industry is in danger, a large population will be in danger, and the country's economy will be extremely damaged.

Attempts are being made to destabilize the garment industry to embarrass the interim government.  For this, there is a plot to hand over this industry to other countries. Such is the demand of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the apex organization of knit industry owners. In this situation, economists advise to stop the conspiracy for their own interests and focus on the work of the workers. It is only a month since the interim government came to power. Meanwhile, the garment industry areas of Savar, Ashulia, Gazipur, and Narayanganj became unstable towards last month. BKMEA, the top association of knitwear industry owners, says that the unrest is being created to destroy the garment industry in Bangladesh.  The president of the organization Mohammad Hatem assured to accept the logical demands of the workers on the negotiation table and not on the streets. He said that BKMEA always stands by the fair demands of the workers. All problems will be solved. Economists say that if the conspiracy is implemented, the workers will be in trouble. So they have to stand against the evil forces. Economist Mahfuz Kabir said, that if workers are not aware of the future of employment and investment in their industry, then this sector will be at risk. So we have to be aware of ourselves without stepping on anyone's provocation. Meanwhile, The workers' tiffin bill and attendance bonus were increased through negotiations in the face of their demands on Monday (September 9).

Raymond CMD Gautam Singhania expects a large chunk of garment manufacturing to move India in the coming years due to the political turmoil in Bangladesh and believes his company is ready to tap into the opportunity with the investment it had made to supply to global players. "We sell fabrics to Bangladesh, all that business is coming back here after the crisis. Once the business shifts here, it won't go back. They don't have a fabric base. You will succeed when you are integrated - we have fabric base and garment base (in India). Today, the ball has been thrown, we have to catch it," he said. Raymond had invested around Rs 200 crore to expand its garment manufacturing capacity, which Singhania expects will come handy given that the company is already supplying to large buyers. "We are the third largest garment manufacturer in the world; we do 10 million pieces a year. Two Chinese players are bigger; they have higher volumes, but they sell cheaper stuff. Today, all the marquee customers are with us. For example, Hugo Boss, CK, Macy's, JCPenney. Out of Rs 7,000 crore (revenue), Rs 1,200 crore will come from there, 95% of that is exported," he said. While Raymond is seeking to expand its portfolio with sleepwear, inner-wear, and bolstering Ethinix, Singhania ruled out a re-entry into womenswear. "It's as different for me (as it is) to make cement and steel. We did a market survey and it showed that the male took very strong objection to Raymond extending it to womenswear," he said. Source: TOI  

Prices of essential commodities are increasing rapidly ahead of Ramadan. The prices of essential commodities started rising for various reasons two months before Ramadan begins. The price of dates has increased the most. The prices of almost all types of pulses, including chickpeas, have increased. Local traders blame importers and big traders for price hike. A wholesaler said that chickpeas are not being imported. On the other hand, Syndicates are making obstructions in the supply of chickpeas in the market. Some Market analysts said that  oil, rice, pulses, chickpeas and dates will be sold at fixed prices through family cards among one crore families from the second week of March. However, the law should be enforced against irregularities to make the price tolerable.

Ambassador Yao Wen Attends Inauguration Ceremony of Chinese Economic and Idustrial Zone and Signing Ceremony of Enterprises Intending to Invest in CEIZ. Mr. Yao Wen, Ambassador of China to Bangladesh, attended the inauguration ceremony of Chinese Economic and Industrial Zone (CEIZ) and the signing ceremony of the enterprises intending to invest in CEIZ in Chattogram. Dr. Shaikh Mohammad Jobayed Hossain, Joint Secretary of BEZA, Mr. Li Changgui, Vice President of CRBC, Mr. Song Yang, Counsellor of Chinese Embassy in Bangladesh attended the ceremonies. Ambassador Yao highlighted the pioneering significance of CEIZ, and urged CRBC to formulate more favorable investment policies and complete the construction of CEIZ at an early date. He noted that Chinese enterprises will build more industrial zones in the future, which will serve as a platform for the high-quality Belt and Road cooperation and enhance China-Bangladesh economic cooperation.