This article discusses the Generalized Scheme of Preferences plus (GSP+) which is a special incentive arrangement granted by the European Union to vulnerable developing countries for sustainable development and good governance. Some key points: - GSP+ provides full removal of tariffs on over 66% of EU tariff lines for countries that ratify and implement 27 international conventions on human rights, labor rights, environmental protection and governance. - To qualify for GSP+, countries must meet vulnerability and sustainable development criteria assessed by the EU through monitoring of UN reports. - Beneficiary countries commit to maintaining convention ratification and effective implementation, and accept EU monitoring to retain GSP+ status. The EU can withdraw status for non-compliance

1. MONTHLY BUSINESS REVIEW
VOLUME: 09 ISSUE: 02
FEBRUARY 2018
Generalized Scheme of Preferences plusGeneralized Scheme of Preferences plus

3. Contents
MONTHLY BUSINESS REVIEW
VOLUME: 09 ISSUE: 02
FEBRUARY 2018
MTBiz
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Article of the month 02
National News
The Central Bank 07
Business & Economy 09
MTB News & Events 12
Industry Appointments 17
Dashboard 18
International News
Economic Forecast 21
Wells Fargo Monthly Outlook 23
Financial Glossary 24 Generalized Scheme of Preferences plusGeneralized Scheme of Preferences plus

4. 02 MTBiz
ARTICLE OF THE MONTH
GSP PLUS
Scheme for Sustainable Development and Good Governance
GSP Plus, a special
incentive arrangement
for Sustainable
Development and
Good Governance,
grants full removal of
tariffs on over 66% of EU tariff lines. It provides
additional preferences to countries which ratify and
implement a number of international conventions on
core human and labor rights, the environment and
good governance. The current GSP PLUS scheme is in
place until the end of 2023.
A country’s GSP Plus status is dependent upon its
ratification and implementation of 27 international
conventions on human and labor rights, environmental
protection, and good governance. The scheme helps
vulnerable countries “assume the special burdens and
responsibilities resulting from the ratification of these
conventions”.
ELIGIBILITY FOR GSP PLUS
To be eligible for GSP Plus, the country must lodge an
application and fulfill the Standard GSP conditions and
the following two additional criteria:
i. Vulnerability criteria
In order to qualify for GSP Plus, a beneficiary country
has to fulfil the vulnerability criteria. This consists of the
import share criterion and the diversification criterion.
The import share is the three-year average share of
GSP-covered imports of the specific beneficiary
country, relative to the GSP-covered imports of all GSP
countries. This average has to be lower than 6.5% in
order to qualify for GSP Plus. A country fulfils the
diversification criterion if the seven largest sections of
the GSP-covered imports represent 75% of total GSP
imports by that country over a three-year period.
ii. Sustainable development criteria
The country must have ratified the 27 GSP Plus relevant
international conventions on human- and labor rights,
environmental protection and good governance. The
applicant must not have formulated reservations which
are prohibited by these conventions. The most recent
conclusions of the monitoring bodies under those
conventions must not identify any serious failure to
effectively implement them. If the applicant meets all
criteria, it is added to the list of GSP Plus countries
through a delegated act.
Standard GSP
Standard GSP reduces EU import duties for
about 66% of all product tariff lines.
Conditions
Any developing country will benefit from
Standard GSP unless:
- It has another type of special trade access
to the EU granting the same tariff preferences as
the scheme, or better, for substantially all trade
- it has achieved a high- or upper-middle
income economy status during three consecutive
years according to the World Bank classification
Countries do not need to apply to benefit from
Standard GSP; the EU adds them to or removes
them from the relevant list through a delegated
regulation.
The EU can withdraw Standard GSP in
exceptional circumstances, notably serious and
systematic violation of fundamental human
rights and labor rights conventions.
European
Commission
HOW THE COUNTRY’S BASELINE IS ASSESSED
To start its GSP Plus assessment of a country, the EU
looks to reports prepared by the UN monitoring bodies
and special rapporteurs for the relevant conventions.
Recommendations laid out in these reports are the key
source for a country’s initial Scorecard.
UN Monitoring
Bodies’reports
Scorecards Dialogue EU report

5. 03 MTBiz
ARTICLE OF THE MONTH
COMMITMENTS TO BE ABIDED BY GSP PLUS
BENEFICIARY COUNTRIES
Once a country is granted GSP Plus, the EU monitors
that the beneficiary country abides by its
commitments, namely to:
• maintain ratification of the international
conventions covered by GSP Plus
• ensure their effective implementation
• comply with reporting requirements
• accept regular monitoring in accordance with the
conventions
• cooperate with the Commission and provide all
necessary information
GSP PLUS MONITORING
The EU conducts a continuous dialogue on GSP Plus
compliance with the authorities of the beneficiary
countries. That dialogue is based on a list of issues
('scorecard') drawn up for each GSP PLUS beneficiary
based on information received from the beneficiary
countries and international monitoring bodies and
from other sources, including civil society, social
partners, businesses, the European Parliament and the
Council. The EU organizes regular GSP Plus monitoring
visits to each beneficiary countries to meet all
stakeholders. The beneficiaries are expected to
demonstrate that they make serious efforts towards
tackling the issues set out in the scorecards. The GSP
Plus dialogue feeds into the public GSP report, which
the Commission must present to the European
Parliament and to the Council every two years. The
report contains a detailed assessment of each
beneficiary's situation under the 27 conventions.
BROAD AREAS FOR CONVENTIONS UNDER
THE GSP PLUS SCHEME
Table: A list of countries benefiting from GSP PLUS
Africa
Cape Verde
Armenia
Kyrgyzstan
Mongolia
Pakistan
Philippines
Sri Lanka
Bolivia
Paraguay
Europe/Asia Asia South America
Source: European Commission
A Scorecard is a list of issues that the European
Commission prepares for each GSP+ country. It is a
large but clearly structured document that
highlights 1) progress and 2) relevant shortcomings
that should be addressed by the country in order to
effectively implement the 27 conventions. It
facilitates annual exchange of information on the
GSP Plus commitments between the European
Commission and the country.
Core human and labor rights
i. Prevention and Punishment of the Crime of Genocide (1948)
ii. Elimination of All Forms of Racial Discrimination (1965)
iii. Civil and Political Rights (1966)
iv. Economic Social and Cultural Rights (1966)
v. Elimination of All Forms of Discrimination against Women (1979)
vi. Against Torture and other Cruel, Inhuman or Degrading
Treatment or Punishment (1984)
vii. Rights of the Child (1989)
viii. Forced or Compulsory Labor, No 29 (1930)
ix. Freedom of Association and Protection of the Right to
Organize, No 87 (1948)
x. Application of the Principles of the Right to Organize and
to Bargain Collectively, No 98 (1949)
xi. Equal Remuneration of Men and Women Workers for
Work of Equal Value, No 100 (1951)
xii. Abolition of Forced Labor, No 105 (1957)
xiii. Discrimination in Respect of Employment and Occupation,
No 111 (1958)
xiv. Minimum Age for Admission to Employment, No 138 (1973)
xv. Prohibition and Immediate Action for the Elimination of
the Worst Forms of Child Labor, No 182 (1999)
Environment and to governance principles
xvi. International Trade in Endangered Species of Wild Fauna
and Flora (1973)
xvii. Montreal Protocol on Substances that Deplete the Ozone
Layer (1987)
xviii. Control of Transboundary Movements of Hazardous
Wastes and Their Disposal (1989)
xix. Biological Diversity (1992)
xx. Climate Change (1992)
xxi. Cartagena Protocol on Biosafety (2000)
xxii. Persistent Organic Pollutants (2001)
xxiii. Climate Change (1998)
xxiv. Narcotic Drugs (1961)
xxv. Psychotropic Substances (1971
xxvi. Against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances (1988)
xxvii. Against Corruption (2004)

6. 04 MTBiz
ARTICLE OF THE MONTH
SPECIAL ARRANGEMENT FOR THE
LEAST-DEVELOPED COUNTRIES
An eligible country shall benefit from the tariff
preferences provided under the special arrangement
for the least-developed countries referred to in point (c)
of Article 1(2), if that country is identified by the UN as
a least-developed country.
GLIMPSE OF THE CIRCUMSTANCES WHERE
GSP PLUS PREFERENCES CAN BE
WITHDRAWN
1) The special incentive arrangement for sustainable
development and good governance shall be withdrawn
temporarily, in respect of all or of certain products
originating in a GSP Plus beneficiary country, where in
practice that country does not respect its binding
undertakings as referred in the regulation, or the GSP
Plus beneficiary country has formulated a reservation
which is prohibited by any of the relevant conventions
or which is incompatible with the object and purpose of
that convention.
2) Within three months after expiry of the period
specified in the notice, the Commission shall decide:
a) to terminate the temporary withdrawal procedure;
or
b) to temporarily withdraw the tariff preferences
provided under the special incentive arrangement for
sustainable development and good governance.
3) Where the Commission decides on temporary
withdrawal, such delegated act shall take effect six
months after its adoption.
4) Where the reasons justifying temporary withdrawal
no longer apply before the delegated act referred to in
paragraph 9 of Article 15 takes effect, the Commission
shall be empowered to repeal the adopted act to
temporarily withdraw tariff preferences in accordance
with the urgency procedure referred to in Article 37.
5) The Commission shall be empowered to adopt
delegated acts, in accordance with Article 36, to
establish rules related to the procedure for temporary
withdrawal of the special incentive arrangement for
sustainable development and good governance in
particular with respect to deadlines, rights of parties,
confidentiality and review.
GLIMPSE OF TEMPORARY WITHDRAWAL
PROVISIONS COMMON TO ALL
ARRANGEMENTS
The preferential arrangements referred to in Article
1(2) may be withdrawn temporarily, in respect of all or
of certain products originating in a beneficiary country,
for any of the following reasons:
a) serious and systematic violation of principles laid
down in the conventions listed in Part A of Annex VIII;
b) export of goods made by prison labor;
c) serious shortcomings in customs controls on the
export or transit of drugs (illicit substances or
precursors), or failure to comply with international
conventions on anti-terrorism and money laundering;
d) serious and systematic unfair trading practices
including those affecting the supply of raw materials,
which have an adverse effect on the Union industry and
which have not been addressed by the beneficiary
country. For those unfair trading practices, which are
prohibited or actionable under the WTO Agreements,
the application of this Article shall be based on a
previous determination to that effect by the competent
WTO body;
e) serious and systematic infringement of the
objectives adopted by Regional Fishery Organizations
or any international arrangements to which the Union
is a party concerning the conservation and
management of fishery resources.
GSP PLUS, BANGLADESH AND BEYOND
Bangladesh has been enjoying zero-duty benefit to the
EU under its Everything but Arms scheme since 1971.
But once it becomes a middle-income country,
Bangladesh will no longer be eligible for the trade
facility. Commerce Minister Tofail Ahmed said the
government aims on achieving the middle-income
status by 2021, implies that there will be no GSP facility
in the post-2021 EU market. He articulated that
Bangladesh will be able to meet the eligibility criteria
for GSP Plus facility in the EU markets after achieving
the middle-income status by 2021.
Bernd Lange, a delegate representing European
Parliament’s International Trade Affairs (INTA), said the
conditions are related to establishing democracy and
good governance, ensuring workers’ rights and
compliance at factories. The European Union advised
Bangladesh to improve labor standards, security,
democracy, environment standards and freedom of
expression to qualify for the GSP Plus status.

7. 05 MTBiz
ARTICLE OF THE MONTH
Gaining, Losing and Regaining GSP Plus - A case of Sri Lanka
Sri Lanka has been a beneficiary of the EU’s standard GSP since the scheme’s inception, and it began to
benefit from GSP Plus on 15 July 2005. However, on 15 August 2010, the EU suspended Sri Lanka’s GSP Plus
status.
The decision to withdraw GSP Plus from Sri Lanka is based on the findings of an exhaustive Commission
investigation launched in October 2008 and completed in October 2009. This investigation relied heavily on
reports and statements by UN Special Rapporteurs and Representatives, other UN bodies and reputable
human rights NGOs and identified significant shortcomings in respect of Sri Lanka's implementation of
three UN human rights conventions – the International Covenant on Civil and Political Rights (ICCPR), the
Convention against Torture (CAT) and the Convention on the Rights of the Child (CRC) – effective
implementation of which forms part of the substantive qualifying criteria for GSP Plus.
Initially this withdrawal was only for period of six months. As this period was not sufficient, it was further
extended to enable to identify and address the issues faced. EU has opened a dialogue with the
Government of Sri Lanka hopeful of necessary measures taken to resolve matters involving human rights
issue, the situation of which was being monitored and re-evaluated by the EU. Unfortunately, there was no
significant interest displayed by Sri Lanka since 2010. The new Government has immediately continued
dialogue in positive manner with high hopes of getting GSP Plus restored. However from 2009, Sri Lankan
exports have been offered to revert to standard GSP preferences as provided for in the current GSP
Regulation.
Sri Lanka regained its GSP Plus benefits with effect from May 19, 2017 after an official publication of the
re-entry to the scheme in its Official Journal, said the EU Ambassador. The restoration of GSP PLUS means
the full removal of 66 percent of tariff lines for over 6,000 products. Seven years since losing the preferential
trade scheme, Sri Lanka has regained it following two votes; first at the EU Parliament and then at the EU
Council of Ministers. This is an important victory for the country at a time when overall exports have been
performing poorly.

8. 06 MTBiz

9. 07 MTBiz
THE CENTRAL BANK
NATIONAL NEWS
Agent banking spreads like wildfire in remote areas
Agent banking
logged in stellar
growth figures in
2017, just two
years after
full-fledged roll-out
of the service, as
people in remote
areas embrace this innovative form of financial service.
For instance, deposit collection through agent banking
soared more than 5 times to BDT 2,000 crore and
remittance disbursement more than 6 times to BDT
1,982 crore last year. The total number of accounts
more than doubled to 12.14 lakh in 2017 from a year
earlier, according to data from the Bangladesh Bank. At
the end of 2017, the total number of agents stood at
2,577, up from 1,646 a year earlier. And from last year,
banks have started to disburse loans at most BDT
50,000 per person through this channel. A total of BDT
109 crore of loans were disbursed through agent
banking last year. A total of 14 banks are now running
agent banking services: Dutch-Bangla, Bank Asia,
Al-Arafah Islami, Social Islami, Modhumoti, Mutual
Trust, NRB Commercial, Standard, Agrani, Midland, City,
Islami Bank Bangladesh, First Security Islami and
Premier.
BB to calculate house price index
The central bank has started work on calculating the
country’s House Price Index (HPI) on a regular basis. In
March 2016, the research department of the central
bank has taken the initiative to construct ‘Residential
Property Price Index (RPPI)’ for Bangladesh with the
technical assistance of the International Monetary
Fund (IMF). Thereafter, Bangladesh Bank (BB) will
calculate HPI on regular basis by applying Laspeyeres
and Hedonic method by using information/data from
authentic sources, the central bank said in its latest
annual report. It was of the view that HPI is an
important indicator for the policymakers in framing
fiscal and monetary policies. The central bank
mentioned that the house price indices can be used as
a macroeconomic indicator of economic growth, an
input to estimate the value of housing as a component
of wealth, a financial stability or soundness indicator to
measure risk exposure, a deflator of the national
accounts and an input for the consumer prices, among
a number of important ones.
BB appoints 24 PFIs for Japan FDI project
Bangladesh Bank (BB)
has selected 24 banks
and financial
institutions as
participating financial
institutions (PFIs) for
providing 7,033 million
Japanese Yen
(equivalent to BDT 5,445 million) in loans under a
foreign direct investment (FDI) promotion project. A
signing ceremony with 19 banks and five FIs was held at
the central bank headquarters in the city, in presence of
BB Governor Fazle Kabir. JICA Chief Representative
Takatoshi Nishikata, BB Deputy Governor Abu Hena
Mohammad Razi and Association of Bankers
Bangladesh (ABB) Chairman Syed Mahbubur Rahman
addressed the function. The FEID is implementing the
FDI promotion project, funded by the Japan
International Cooperation Agency (JICA), to facilitate
Japanese FDIs in special economic zone, industrial
park/estate etc. Under the JICA-funded project signed
on December 13 in 2015, a soft loan provision of 7,033
million Japanese Yen was kept for Japanese investors,
Japan-Bangladesh joint ventures or Bangladesh firms
having significant business relation with Japan. The
concessional loan bears 7.0 per cent interest.
Downloaded forms can be used for NSC purchase
Bangladesh Bank has allowed the buyers of national
savings certificates for using the downloaded
purchasing form of the tools provided on the respective
web sites. The central bank made the decision to
reduce hassles of the customers in getting the forms
from respective offices considering increased number
of customers. Bangladesh Bank’s Debt Management
Department issued a circular lifting the bar on using
only the official forms for buying the savings tools.
Under the approval, the buyers can use the
downloaded form given on the official web sites of
Bangladesh Bank and Department of National Savings.
The central bank also directed all the scheduled banks
to sync their websites with the websites of BB and
national savings department or to upload all kinds of
savings forms on their websites so that the customers
can easily get the forms. BB also asked all the scheduled
banks to inform their branch offices about the decision.
Savings instruments became lucrative due to high rate
of interest offered by the government when the banks
have been lowering interest on deposits.
2016 2017 Growth
Agent 1,646 2,577 57%
Outlet 2,601 4,157 60%
Account 544,536 1,214,367 123%
Deposit Tk 381cr Tk 1,399cr 268%
Credit 0 Tk 109cr
Remittance Tk 310cr Tk 1,982cr 540%
INDICATIORS OF AGENT BANKING
SHOW RAPID GROWTH

10. 08 MTBiz
THE CENTRAL BANK
Banks asked to lower their loan-deposit ratio
The central bank recently
instructed banks to lower their
loan-deposit ratio to within
83.5 percent by June 30 in a
move to reining in the banks'
aggressive lending practices.
The Shariah-compliant banks
will have to lower their ratio to 89
percent from 90 percent. The runaway private
sector credit growth has compelled the Bangladesh
Bank to take this stand. The private sector credit growth
stood at 18.13 percent in December last year, which is
way past the target of 16.2 percent set by the BB for the
first half of the fiscal year. While unveiling the monetary
policy for the second half of fiscal 2017-18, BB governor
Fazle Kabir said that the central bank will slash the
loan-deposit ratio with the view to ensuring the quality
of credit. The banks will have to follow the
asset-liabilities and foreign exchange risk management.
Strict measure will be taken against banks that indulge
in excessive lending beyond the limit, he said. The
private sector credit growth target for the second half
of the fiscal year is 16.8 percent.
BB drafts law bringing NBFI depositors, like bank,
under insurance scheme
Bangladesh Bank has
framed a draft of
‘Deposit Protection Act
2017’ bringing
non-bank financial
institutions, like the
banks, under the
deposit insurance scheme to protect the interest of
depositors. The proposed act will replace the existing
‘Bank Deposit Insurance Act 2000’ under which only
bank depositors get insurance coverage of their deposit
in case of a scheduled bank goes into liquidation. Like
banks, NBFIs will also face a ban on collection of
deposits for a time being for failure of depositing
premium on deposits of a client, according to the draft.
According to the law, banks and NBFIs will have to bring
the deposits of their clients under insurance coverage
with the Deposit Protection Trust Fund of the central
bank. The BB, however, will determine the portion of
deposits for the insurance coverage and the rate of
premium through official gazette in time to time. Like
the existing act, a depositor will get up to BDT 1 lakh
from the fund under the proposed law if a bank or
NBFIs go into liquidation.

11. Govt earns BDT 5,268cr from 4G auction, tech
neutrality
The government has earned
a large amount of BDT
5,268.51 crore from a 4G
spectrum auction and
conversion fees for
technology neutrality.
Bangladesh Telecommunication Regulatory
Commission (BTRC) sold 15.6 megahertz of spectrum to
Grameenphone Ltd and Banglalink Digital at a 4G
auction recently. Market leader Grameenphone has
bought 5 MHz of 1800 band at a price of BDT 1,284
crore. Banglalink has bought a total of 10.6 MHz
spectrum 5MHz of 2100 band and 5.6 MHz of 1800
band at a price of BDT 2,558 crore. Besides, a sum of
BDT 850 crore has come as spectrum conversion fees
for technology neutrality while the remaining amount
from VAT. The first-ever 3G spectrum auction was held
in the country in September 8, 2013. Robi, the second
largest mobile operator, will be offering 4G services
thought their existing spectrum (36.4 MHz). The
acquisition fee of 4G license is BDT 10 crore. In case of
the conversion in one go, the charge will be USD 4
million for each 900 MHz and 1,800 MHz, while it will
be USD 7.5 million for converting partly.
Bangladesh among top 5 growth achievers of 45 LDCs
in 2017: UNCTAD
The United Nations Conference
on Trade and Development
(UNCTAD) has said only five
countries, including
Bangladesh of the 45 least
developed countries (LDCs), achieved economic growth
at 7 percent or higher in 2017. The four other countries
are Djibouti (+7pc), Ethiopia (+8.5pc), Myanmar
(+7.2pc), and Nepal (+7.5pc) while Bangladesh
achieved +7.1pc growth in 2017. The analysis contends
that too many LDCs remain dependent on primary
commodity exports. All other LDCs recorded current
account deficits of varying sizes, ranging from less than
one percentage point of GDP - Bangladesh and Nepal -
to more than 25 percent in the cases of Bhutan, Guinea,
Liberia, Mozambique, and Tuvalu. Resources sent by
individuals to LDCs as a group (remittances) totalled
USD 36.9 billion in 2017, down by 2.6 percent
compared to the peak of USD 37.9 billion in 2016. In
absolute terms, the largest recipients of remittances
among LDCs included Bangladesh (USD 13.6 billion in
2016), Nepal (USD 6.6 billion), Yemen (USD 3.4 billion),
Haiti (USD 2.4 billion), Senegal (USD 2 billion) and
Uganda (USD 1 billion), according to UNCTAD.
Bangladesh improves in economic freedom index
B a n g l a d e s h ’ s
economic freedom
score is 55.1, making
its economy the 128th
freest in the Economic
Freedom Index-2018
released by the
Heritage Foundation. Bangladesh is ranked 29th among
43 countries in the Asia-Pacific region, and its rank is
ahead of India (30th), Pakistan (31st), Nepal (32nd) and
Vietnam (35th). Its overall score of Bangladesh has
increased by 0.1 point, with improvements in the scores
for judicial effectiveness and government integrity
outpacing declines in property rights, trade freedom,
and labour freedom, said the US-based conservative
Heritage Foundation. The report said Bangladesh’s
economy has grown by approximately six percent
annually for two decades despite prolonged political
instability, poor infrastructure, endemic corruption,
insufficient power supplies, and slow implementation
of economic reforms. The index uses four broad
categories for measurement: rule of law, government
size, regulatory efficiency and open markets.
ADB okays USD 503m credit for Reliance Bangladesh
projects
The Asian Development
Bank (ADB) has approved
USD 503 million credit
and risk guarantees in
favour of Indian power
giant Reliance for setting
up an LNG terminal and power plant in Bangladesh. The
Liquefied Natural Gas (LNG) terminal will be set up at
Moheshkahi in Cox’s Bazar while the 718MW combined
cycle power plant will be at Meghnaghat in
Narayanganj. The projects, officials said, will
significantly increase power generation as well as
improve energy infrastructure in Bangladesh. The
multilateral lending agency has already urged the
government for its approval for disbursement of loans
and guarantees in this regard. The ADB very recently
requested the Economic Relations Division (ERD) for
no-objection note in regard to disbursement of the
proposed loan and guarantees. In a letter to ERD
Secretary, ADB Country Director Manmohan Parkash
said that ADB, under its non-sovereign operations, is
considering the loans and guarantee under two entities
-- Reliance Bangladesh Liquefied Natural Gas and Power
Project and sought government’s no-objection by
January 30, 2018.
NATIONAL NEWS
09 MTBiz
BUSINESS & ECONOMY

12. Man-made fibres getting popular among RMG makers
The import of man-made
fibres such as polyester
staple, viscose, and tencel is
on the rise as a substitute for
cotton as their demand is
increasing amid changes in
global fashion trend.
Bangladesh imported 78,208
tonnes of polyester staple
fibre in 2016, up 11.39
percent from 70,209 tonnes
in 2015 and 35.72 percent from 51,729 tonnes in 2014,
according to data from Bangladesh Textile Mills
Association (BTMA). From January to June of 2017, the
volume was 16,063 tonnes, the data showed. In 2014,
Bangladesh imported 18,115 tonnes of viscose staple
fibre. Imports of tencel, a fibre made of trees and
leaves, stood at 5,034 tonnes in 2016 and 6,199 tonnes
the previous year. The number of factories producing
artificial fibres also went up. Alone the polyester fibre
production units rose to 52 from 10 to 12 seven years
ago. There are 45 viscose staple fibre mills and 10
tencel factories. The ratio of the cotton-made yarn and
the artificial one rose to nearly 80:20, whereas it was
90:10 even five years ago. In 2016-17, Bangladesh
imported about 10 million tonnes of cotton to feed its
vast garment sector.
ADP spending up 37pc in Jul-Jan
The government's development spending rose 36.88
percent year-on-year to BDT 54,718 crore in the first
seven months of the current fiscal year on the back of
an increased use of foreign aid. Project aid utilisation
went up by 120 percent to BDT 23,336 crore during the
period, according to the Implementation Monitoring
and Evaluation Division. In comparison, the use of the
government's own funds rose 10.72 percent. From July
to January, the ministries and divisions spent 33.35
percent of the total outlay, slightly up from 32.41
percent in the same period a year ago. Project aid
utilisation stood at 38.63 percent of the allocation while
it was 26.52 percent in the same period last fiscal year.
The spending, however, rose in terms of amount during
the period, to BDT 28,677 crore against BDT 25,899
crore a year earlier. State-owned enterprises utilised
only BDT 2,706 crore, or 33.19 percent, against their
allocation of BDT 8,154 crore. They had spent 27.40
percent of their allocation during the same period last
fiscal. Of the 15 large ministries and divisions that
account for 80.83 percent of the allocation, seven spent
a higher amount than the average.
Self-sufficient in fish, meat
Riding on the recent
revolution in fish and
livestock farming,
Bangladesh for the first
time achieved
self-sufficiency in animal
protein, according to a
government report. Against
a demand of 40.50 lakh
tonnes of fish, Bangladesh recorded surplus fish
production with an annual output of 41.34 lakh tonnes
in 2016-17, according to the latest report of the
Department of Fisheries. In 2016-17, a total of 71.50
lakh tonnes of meat were produced against a demand
of 71.35 lakh tonnes, according to Department of
Livestock Services. Fish accounts for almost 60 percent
of Bangladesh's intake of animal protein and over the
last three decades, fish production increased over five
times, according to the report. In 1983-84, the total fish
production was only 7.54 tonnes and it grew at an
average 6.60 percent over the last 10 years.
ICT exporters get 10pc cash incentive
The government has
granted 10 percent
cash incentive to the
ICT industry against
their exports – a move
that could be a
game-changer for the
country's export
scenario. Bangladesh
Bank issued a circular
to this effect on
Thursday, and the incentive will be retrospectively
effective from July 2017. The measure meets a
long-time demand of the entire information
communication technology sector of Bangladesh.
Industry people said this would help attain the target of
export earnings of USD 5 billion from the ICT sector by
2021. The minister said the incentive would boost
Bangladesh's IT industry's competitiveness further.
Previously, the government had given cash benefit to
exporters in the garments and food sector and they
have utilised the support and got the industries to
flourish. Today, Bangladesh is the second largest
garment exporter in the world and the labour-intensive
sector accounts for more than 80 percent of the
country's export earnings. According to the circular,
ITES products such as digital content development and
management, both 2D and 3D animations, geographic
information services, IT support and software
maintenance services, website services, graphics
design, search engine optimisation, and web listing will
get 10 percent cash back on export earnings.
FISH PRODUCTION
IN 2016-2017
NATIVE
28% FARM
56%
MARINE
16%
GROWTH
11.01% 1.75% 5.89%
KEY POINTS
The sector now enjoys tax holiday
Most ICT Products to get 10pc cash incentive
Exporters to get it retrospectively from July 2017
Companies in EPZ and hi-tech parks not eligible
Govt aims to earn $5b by 2021 from ICT exports,
create 2lakh jobs
Export earnings were $800m last year
AT A GLANCE
Global ratio of cotton and man-made
fibre use is
In 2016, Bangladesh imported
tonners of polyester staple
fibre, a rise by pc
In 2016-17, Bangladesh imported
million bales of cotton
28:72
78,208
11.39
6.7
10 MTBiz
BUSINESS & ECONOMY

13. NATIONAL NEWS
LTU-VAT collection marks 19pc growth in 6 months
Collection of revenue
under Large Taxpayer
Unit (LTU) of Value Added
Tax (VAT) has witnessed a
staggering 19 per cent
growth in first six months
of fiscal 2017-18. LTU collection reached BDT 198.74
billion, up BDT 31.36 billion from the same period of
the previous fiscal year (2016-17), during the
July-December period of FY18. The hefty collection in
the government exchequer said to have removed fear
for a fall in revenue mobilisation due to
non-implementation of the new VAT law. The large
taxpayer unit usually collects 56 per cent of the total
revenue target. He thinks achieving higher growth in
revenue collection has been possible as authorities
concerned have taken time-befitting strategy and
intensified supervision, VAT auditing and recovery of
arrears. LTU currently looks after VAT, supplementary
duty and excise duty of 170 larger taxpaying
establishments. FY17 witnessed mobilisation of
revenue worth BDT 369.83 billion under LTU. In FY18,
the government has a target to mobilise BDT 912.54
billion as VAT.
Two e-commerce sites get USD 5m investment
Zero Gravity Ventures Limited
an e-commerce incubator from
one of the country’s leading
conglomerates, Ananta Group
has secured Series A funding
from Frontier Bangladesh, a Bangladesh-focused
private equity fund. Zero Gravity Ventures currently
operates two e-commerce sites sindabad.com and
kiksha.com. sindabad.com is the country’s first B2B
online shop where offices, factories or any business
organizations can purchase their regular consumptions
online in a transparent, seamless way. Orders are
delivered at their offices or factory premises by
sindabad.com on time. kiksha.com is a B2C online shop
for fashion, lifestyle products, mobiles, gadgets,
electronic appliances and home décor items. Both
ventures have been launched in 2016. With both
companies combined, Zero Gravity has an employee
strength of nearly 150 and it is fast expanding with
warehouses in Dhaka and Chittagong. Frontier
Bangladesh, a Bangladesh-focused private equity fund,
has invested in Zero Gravity.
Biscuits bring bucks
With net export earnings
of USD 80.41 million in
the first six months
(July-December) of the
2017-18 financial year,
biscuit manufacturers
have started playing a significant role in the national
economy. The sector’s importance is manifest from the
fact that its export earnings were just USD 43.09 million
in the 2016-17 financial year. According to information
provided by the president of the Bangladesh Auto
Biscuits and Bread Manufacturers’ Association,
Shafiqur Rahman Bhuiyan, the local market is growing
at a faster rate a 12–15 per cent growth rate per year.
He added that this sector contributed 1.66 per cent of
Bangladesh’s total gross domestic product (GDP) in
2009–10, with total annual production of more than
65,000 metric tonnes (MT) in the country at present.
Today 4,500 to 5,000 biscuit and bread manufacturers
and/or organisations linked to them in this industry.
Among them, some 100 factories operate
automatically. These include 10 to 15 mega factories,
35 large factories and 50 medium-sized factories.
Around 15 to 17 lakh people are currently working in
this sector. The size of the local market is worth roughly
Tk. 4,000 crore.
Agro machinery mkt reaches USD 1.2b in 2017: BAU
study
Bangladesh imports roughly 68 per cent of
agro-machinery amounting to BDT 65.28 billion
annually out of its demand, a study by the Bangladesh
Agricultural University (BAU) recently revealed.
Tractors, power tillers, reapers, shallow machines are
among 200 farm machinery imported from India, China
and Taiwan, said the study. The report was based on
data of financial year 2016-17 (FY'17). The agro
machinery market reached USD 1.2 billion or BDT 96
billion in 2017, of which local manufacturers had 32 per
cent share. Imports from India, Taiwan, China, Korea,
Japan, and Germany meet 68 per cent of the demand
for which the country counted BDT 65.28 billion in
expenses. Growth of farm machinery sales is 20 per
cent year-on-year, according to the report. The report
also said local manufacturers are dominating the spare
parts market with more than 60 per cent of share. The
report showed farmers in the country now use 35,000
tractors, 0.7 million units of power tiller, 0.35 million
units of drum thrasher and 1.7 million units of irrigation
pumps.
11 MTBiz
BUSINESS & ECONOMY

14. Mutual Trust Bank Ltd. (MTB) held its Annual Business Conference 2018 (MABC 2018) on Saturday,
January 27, 2018 at Bangabandhu International Conference Center (BICC), Dhaka 1207. MTB Chairman,
M. A. Rouf, JP, MTB Directors, Rashed A. Chowdhury and Khwaja Nargis Hossain, Managing Director &
CEO, Anis A. Khan, Additional Managing Director & Chief Operating Officer (COO), Md. Hashem
Chowdhury, Deputy Managing Directors, Md. Zakir Hussain, Syed Rafiqul Haq and Goutam Prosad Das
attended the day-long session with all branch managers and heads of divisions and departments including
Chief Executive Officers of two subsidiary companies - MTB Securities Ltd. and MTB Capital Ltd.
“MTB Resurgent”, the theme for 2018 was unveiled at the conference.
The MTB Chairman appreciated the hard work put in by all the MTBians
for bringing about significant progress in 2017 in terms of the network,
infrastructure, products and services. Anis A. Khan, MTB Managing
Director & CEO thanked the MTBians for taking the leap in becoming
one of the best governed and highly equipped banks in the country. He
stressed on reinforcing the commitments and realizing the bank’s
expanded capabilities in achieving the corporate vision – MTB3V.
12 MTBiz
MTB NEWS & EVENTS
MTB HOLDS ANNUAL BUSINESS CONFERENCE 2018

15. 13 MTBiz
MTB NEWS & EVENTS
MTB SIGNS PFI AGREEMENT WITH BANGLADESH BANK
MTB has recently signed an agreement with Bangladesh Bank (BB) under JICA-assisted
‘Foreign Direct Investment Promotion Project (FDIPP)’ at a ceremony held at Bangladesh
Bank head office, Motijheel, Dhaka 1000, on Wednesday, Febuary 14, 2018. This
Participatory Financial Institution (PFI) agreement is aimed at accelerating the country's
economy through increasing FDI from Japan.
Anis A. Khan, Managing Director & CEO, MTB and Md. Rezaul Islam, General Manager, Foreign Exchange
Investment Department, Bangladesh Bank signed the agreement on behalf of their respective organizations.
Fazle Kabir, the Governor, Bangladesh Bank was present on the occasion as the Chief Guest. Takatoshi
Nishikata, Chief Representative, JICA Mission Bangladesh and Abu Hena Mohd. Razee Hassan, Deputy
Governor, Bangladesh Bank, along with other senior officials from all the concerned organizations were also
present at the event.
Under the PFI agreements, as of date,19 banks and 05 NBFIs will borrow in foreign currency only at 3
percent interest rate and will distribute loans to private companies at 7 percent interest rate for a tenure of
maximum 10 years.

16. 14 MTBiz
MTB NEWS & EVENTS
MTB organized a “Branch Anti Money Laundering Compliance Officers’ (BAMLCO) Conference 2018” on
Saturday, February 10, 2018 at BRAC-CDM, Savar, Dhaka 1340. The bank’s performance of 2017 in terms
of compliance with Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) was
evaluated and strategy for AML & CFT for 2018 was formulated during the conference.
Muhammad Mijanur Rahman Joddar, Executive Director, Bangladesh Bank and Deputy Head of
Bangladesh Financial Intelligence Unit (BFIU) graced the conference as the Chief Guests. A K M Ramizul
Islam and Syed Kamrul Islam, Joint Directors of BFIU, Md. Hashem Chowdhury, Additional Managing
Director & Chief Operating Officer, Syed Rafiqul Haq and Goutam Prosad Das, Deputy Managing Directors
and Swapan Kumar Biswas, Chief Anti Money Laundering Compliance Officer (CAMLCO), MTB also
attended the day-long conference.
MTB ORGANIZES BAMLCO CONFERENCE 2018
MTB INKS DEAL WITH LIC BANGLADESH
MTB has signed an agreement with LIC Bangladesh
Ltd. (LIC) at a simple ceremony held at bank’s
Corporate Head Office, MTB Centre, Gulshan 1,
Dhaka 1212 on December 18, 2017. Under this
agreement, policy holders of LIC would be able to
deposit premiums at any of 112 MTB branches.
Arup Dasgupta, Managing Director & Chief
Executive Officer, LIC and Syed Rafiqul Haq, Deputy
Managing Director & Chief Business Officer, MTB
signed the agreement on behalf of their respective
organizations. Abhijit Roy, Chief Marketing Officer,
Ajoy Kumar Byahut, Chief Financial Officer, LIC and Tarek Reaz Khan, Head of SME & Retail Banking, MTB
along with other senior officials from both the organizations were also present at the ceremony.

17. 15 MTBiz
MTB NEWS & EVENTS
MTB INAUGURATES ITS MAWNA BRANCH
INAUGURATION OF MTB SMART BANKING KIOSK AT
GANGRA BAZAR, COMILLA
MTB has opened its 112th branch at Mawna on
Tuesday, February 13, 2018 at Marfat Ali Fakir Tower,
Mawna Bazar Road, Sreepur, Gazipur 1740. MTB
Chairman M. A. Rouf, JP inaugurated the branch as the
Chief Guest, at a ceremony held at the branch premises.
Anis A. Khan, Managing Director & CEO, Syed Rafiqul
Hossain, SEVP & Head of Dhaka division branches,
Md. Sanwar Hossain, SEVP & Chief Engineer, Azam
Khan, Group Chief Communications Officer,
Mohammad Ikramul Ghani Khan, Group Chief Security
Officer, MTB and Md. Shakhawat Hossain Shamim,
General Secretary, Mawna Bazar Businessman Association, Md. Shafiqul Azam, President, Jatiyo
Manobadhikar Council, Sreepur, along with managers of nearby MTB branches, other MTB senior
officials,dignitaries, existing and prospective customers and people from different strata were present at the
ceremony.
Later on, as part of corporate social responsibility (CSR), MTB distributed bicycles amongst 20 students
from different schools of the locality under its own project named “Swapna Sarathi”. The Bank also awarded
meritorious students of the area with scholarships in the form of MTB Gift Cheques.
MTB inaugurated its 10th Smart Banking Kiosk having
one modern Automated Teller Machine (ATM) and
Cash Deposit Machine (CDM) at Gangra Bazar,
Chauddagram, Comilla 3550 on Friday, February 02,
2018. MTB Additional Managing Director & Chief
Operating Officer (COO), Md. Hashem Chowdhury
inaugurated the Kiosk.
Azam Khan, Group Chief Communications Officer
along with managers of nearby MTB branches,
members of local business associations, dignitaries,
existing and prospective customers and people from
different strata were present at the inauguration ceremony.
MTB SIGNS AGREEMENT WITH ARTISAN OUTFITTERS LTD
MTB has recently signed an agreement with ARTISAN
Outfitters Ltd. (ARTISAN) at a simple ceremony held at
bank’s Corporate Head Office, MTB Centre, Gulshan
1, Dhaka 1212 on Tuesday, January 23, 2018. Under
this agreement, MTB Privilege Customers,
Cardholders and Employees will enjoy 10% discount
on all products of ARTISAN.
Ali Ahammad Rasel, Managing Director, ARTISAN &
Mohammad Anwar Hossain, Head of Cards, MTB
signed the agreement on behalf of their respective
organizations. Shameem Alam, Chief Operating
Officer, ARTISAN, Tarek Reaz Khan, Head of Retail & SME Division, Azam Khan, Group Chief
Communications Officer, MTB along with other senior officials from both the organizations were also present
at the ceremony.

18. MTB SIGNS AGREEMENT WITH REGENT AIRWAYS
MTB SIGNS AGREEMENT WITH INTERLINKAGES (HONG KONG) LTD
MTB AND DELTEX LIMITED SIGN PAYROLL BANKING AGREEMENT
MTB has recently signed an agreement with Regent
Airways (Regent) at a simple ceremony held at the
bank’s Corporate Head Office, MTB Centre, Gulshan
1, Dhaka 1212 on Wednesday, January 24, 2018.
Under this agreement, MTB credit cardholders will
enjoy up to 6 months FlexiPay installment facility (EMI
@ zero%) from Regent Airways on purchase of air
tickets and different tour packages.
Hanif Zakaria, Chief Operation Officer, Regent and
Syed Rafiqul Haq, Deputy Managing Director & Chief
Business Officer (CBO), MTB signed the agreement
on behalf of their respective organizations. Kazi Ahmed Ullah, AGM, Marketing, Regent, Mohammad Anwar
Hossain, Head of Cards, Azam Khan, Group Chief Communications Officer, MTB along with other senior
officials from both the organizations were also present at the signing ceremony.
MTB has signed an agreement with Interlinkages
(Hong Kong) Ltd. at a simple ceremony held at the
bank’s Corporate Head Office, MTB Centre, Gulshan
1, Dhaka 1212 on January 18, 2018. Under this
agreement, MTB will be a subscriber member of
Interlinkages (Hong Kong) Ltd., which will enable
MTB to enhance its capability in reaching out foreign
financial member institutions on the platform
(Interlinkages) instantly and to execute trade finance
related transactions.
Md. Shafiqul Islam, Chief Executive Officer,
Interlinkages (Hong Kong), Bangladesh and Md. Bakhteyer Hossain, Head of MTB International Trade
Services Division (MITS) signed the agreement on behalf of their respective organizations. Anindita Ghose,
Chief Executive Officer, Interlinkages (Hong Kong) and Anis A. Khan, Managing Director & CEO, MTB along
with other senior officials from both the organizations were also present at the ceremony.
MTB has recently signed an agreement with Deltex
Limited (Deltex) at a simple ceremony held at bank’s
Corporate Head Office, MTB Centre, Gulshan 1,
Dhaka 1212 on December 18, 2017 for providing
exclusive payroll banking services to the employees of
Deltex.
Md. Shakawat Hossen, Country Director, Deltex and
Syed Rafiqul Haq, Deputy Managing Director & Chief
Business Officer, MTB signed the agreement on behalf
of their respective organizations. Sultan Mahmud
Sohal, Country Manager-Sustainability, Deltex and
Tarek Reaz Khan, Head of SME & Retail Banking, Md. Bakhteyer Hossain, Head of International Trade
Services Division, MTB along with other senior officials from both the organizations were also present at the
ceremony.
16 MTBiz
MTB NEWS & EVENTS

19. 17 MTBiz
INDUSTRY APPOINTMENTS
NATIONAL NEWS
Trust Bank gets new AMD
Humaira Azam has recently been
appointed as Additional Managing
Director of Trust Bank Limited.
Prior to the appointment, she held
the position of Deputy Managing
Director & Chief Risk Officer of
Bank Asia Limited. Humaira
started her career with ANZ
Grindlays Bank as a management trainee in 1990. She is
the first woman to head a private commercial financial
institution in Bangladesh while she was Managing
Director of IPDC Finance. She also served HSBC and
Standard Chartered Bank in various capacities.
Trust Bank gets new DMD
Junaid Masroor joined Trust Bank
Limited as Deputy Managing
Director. Prior to his new
assignment, he held the position
of Senior Executive Vice President
(SEVP) and Head of International
Banking of Bank Asia Limited. He
started his career with erstwhile
BCCI (Overseas) Limited as management trainee officer
in 1989. Masroor worked as head of transaction
banking in Eastern Bank Ltd. He also served in the Bank
of Nova Scotia, ANZ Grindlays Bank and Standard
Chartered Bank in different capacities for several years.
SJIBL gets new DMD
Mustaque Ahmed was promoted
to Deputy Managing Director
(DMD) of Shahjalal Islami Bank
Limited (SJIBL) recently. Prior to
his promotion Mustaque Ahmed
was Senior Executive Vice
President (SEVP) & Head of
Internal Control & Compliance
Division of the Bank. Ahmed started his banking career
as Probationary Officer in United Commercial Bank
Limited (UCB) in 1985.
New DMD for Bank Asia
Md Sazzad Hossain has recently
been promoted to the post of
Deputy Managing Director of
Bank Asia Limited. Prior to the
new role, he was the Senior
Executive Vice President (SEVP) &
Head of Internal Control &
Compliance Division of the bank.
Hossain joined the bank as Vice President in 2003. He
started his banking career with Pubali Bank Limited as a
probationary officer in 1987. Hossain also served
Eastern Bank Limited and NCC Bank Limited.
SK Sur Chowdhury made BB advisor
SK Sur Chowdhury has been
appointed Banking Reform
Advisor of Bangladesh Bank after
completion of his tenure as
Deputy Governor of the Bank. Sur
Chowdhury joined Bangladesh
Bank in May 1981 as Assistant
Director and served the bank with the zeal of his
expertise since then. His long journey of more than 36
years of banking service has been enriched with
in-depth knowledge on financial sector supervision and
regulation.
BKB gets new MD
Ali Hossain Prodhania has been
appointed Managing Director of
Bangladesh Krishi Bank (BKB).
Prior to his promotion he held the
position of Deputy Managing
Director of Agrani Bank Limited.
Earlier, he served the bank in
various important positions including General Manager,
Head of International Trade, Treasury, CAMLCO and
Public Relations.
Islami Bank Ltd gets new MD
The board of directors of Islami
Bank Bangladesh Limited (IBBL)
has nominated Md Mahbub ul
Alam as it new Managing Director.
Earlier, Md Mahbub ul Alam
performed as Additional
Managing Director and head of
investment (Credit) Committee of the bank. Md
Mahbub ul Alam joined Islami Bank as a probationary
officer in 1984.
Pubali Bank reappoints MD
Md Abdul Halim Chowdhury has
recently been reappointed as the
Managing director and Chief
Executive Officer (CEO) of Pubali
Bank Limited for a three-year
term. He has been serving the
bank as Managing Director and
CEO since December 2014. Chowdhury was also
Additional Managing Director of the bank. He joined in
the bank as a principal officer in 1988.

20. 18 MTBiz
DASHBOARD
Source: Bangladesh Bank, Dec 2017; BTRC, Jan 2018
Digital Payments 147.00 million
75.40 million
75.05 million
Number of Subscribers
Mobile phone
Mobile Internet
Internet
Plastic
cards (number)
12.70 million
Credit Debit Prepaid
0.9 million 11.7 million 0.1 million
E-commerce
Transaction
BDT 755.9
million
E-commerce
Transaction
BDT 282.5
million
7% 92% 1%
Scheduled Banks
Branch Network
Apr-Jun 2017
RANGPUR
661
RAJSHAHI
1021
MYMENSINGH
409
SYLHET
745
DHAKA
3238
KHULNA
928
BARISAL
493
CHITTAGONG
2228
Industry Rates
Deposit - Advance - Spread
Source: Bangladesh Bank
Advance Deposit Spread
Dec 2017Nov 2017Oct 2017
15%
10%
5%
0%
9.3
4.9 4.91
4.4 4.44
9.39 9.35
4.89
4.5
Total number of branches: 9724
Debit
cards
Credit
cards
No. of ATM
9,522
No. of POS
37,379
POS
4,781.40
ATM
100,468.10
ATM
1,058.20
POS
7,532.30
1.74 million
1.21 million
58.79 millionMobile Banking
Internet Banking
Agent Banking
Subscribers
Transactions
(BDT in million)

21. 19 MTBiz
DASHBOARD
Domestic (coarse) Domestic (fine) Global
1.11%
Monthly Increase
Jan - Feb 2018
3.17%
Monthly Increase
Jan - Feb 2018
8.87%
Monthly Increase
Jan - Feb 2018
Monthly Price Change (%)
Weekly Rice BDT/KG
Rice
USD 442.00 / metric ton
January 2018
Palm Oil
USD 679.25 metric ton
January 2018
Sugar
USD 586.21 / metric ton
January 2018
Soybean Oil
USD 865.25 / metric ton
January 2018
Source: TCB (Average of max and min price), The World Bank
Source: The World Bank
Source: Bangladesh Bank
(in million)
Rate (Avg.) 45.00 45.00 45.00
Feb 24Feb 22 Feb 23
45.00
Feb 25
45.00
Feb 26
45.00
Feb 27
45.00
Feb 28Year 2017
Global
Domestic
Import L/C
Opened
USD 495.99 USD 517.28
(during July 2017-
Nov 2017)
(during July 2017-
Nov 2017
(as on Nov 30, 2017)
Outstanding
USD 551.26
(as on Nov 30, 2017)
OutstandingOpened
USD 703.59
(during July 2016-
Nov 2017)
(as on Nov 310, 2017)
Opened Outstanding
USD 172.5 USD 101.48
Bangladesh
SugarRice
Pulse
Rice (fine)
BDT 63.30 per kg
February 2018
Palm Oil
BDT 71.00 per kg
February 2018
Sugar
BDT 54.39 per kg
February 2018
Rice (coarse)
BDT 45.04 per kg
February 2018
Soybean Oil
BDT 86.50 per kg
February 2018
Source: TCB (Average of max and min price)
Call Money Market
14
12
10
8
6
4
2
0
2012 2013 2014 2015 2016 Jun
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jul 17

22. 20 MTBiz
DASHBOARD
Natural Gas Reserve & Production at a glance, October 2017
Bcf
Gas Initially in Place (GIIP) 35,796.19
Recoverable (2P) 28,523.40
Gas Production in November 2017 80.56
National Oil Company (NOC’s) production 39.98%
International Oil Company (IOC’s) production 61.02%
(Billion cubic feet)
Cumulative Production as of November 2017 15,331.45
Remaining Reserve upto November 2017 13,191.95
Source: Ministry of Energy and Mineral Resources
Generation Capacity
Public Sector 56%
Private Sector
Per Capita
Generation
433 KWh
Distribution Line
4,20,000 km
Distribution Loss
9.98%
(June 2017)
Access to
Electricity
90%
Transmission Line
10,622
Circuit Kilometer
Generation Capacity
16,046 MW
POWER SECTOR OF BANGLADESH
AT A GLANCE (Feb 2018)
44%
Liquefied petroleum gas (LPG) 2015 2014
Import (in million BDT ) 2016-17 2015-16 Growth
LPG Production (BPC) 18000
14,053 6,755 108%
18000 Metric Ton
Petroleum gases & other
gaseous hydrocarbons
LPG
Bcf
Source: United Nations; Bangladesh Bank

23. 21 MTBiz
ECONOMIC FORECAST
INTERNATIONAL NEWS
Brighter Prospects, Optimistic Markets, Challenges Ahead: IMF
• Global economic activity continues to firm up. Global
output is estimated to have grown by 3.7 percent in
2017, which is 0.1 percentage point faster than
projected in the fall and ½ percentage point higher than
in 2016. The pickup in growth has been broad based,
with notable upside surprises in Europe and Asia.
Global growth forecasts for 2018 and 2019 have been
revised upward by 0.2 percentage point to 3.9 percent.
The revision reflects increased global growth
momentum and the expected impact of the recently
approved U.S. tax policy changes.
• The U.S. tax policy changes are expected to stimulate
activity, with the short-term impact in the United States
mostly driven by the investment response to the
corporate income tax cuts. The effect on U.S. growth is
estimated to be positive through 2020, cumulating to
1.2 percent through that year, with a range of
uncertainty around this central scenario. Due to the
temporary nature of some of its provisions, the tax
policy package is projected to lower growth for a few
years from 2022 onwards. The effects of the package on
output in the United States and its trading partners
contribute about half of the cumulative revision to
global growth over 2018–19.
• The current cyclical upswing provides an ideal
opportunity for reforms. Shared priorities across all
economies include implementing structural reforms to
boost potential output and making growth more
inclusive. In an environment of financial market
optimism, ensuring financial resilience is imperative.
Weak inflation suggests that slack remains in many
advanced economies and monetary policy should
continue to remain accommodative. However, the
improved growth momentum means that fiscal policy
should increasingly be designed with an eye on
medium-term goals—ensuring fiscal sustainability and
bolstering potential output. Multilateral cooperation
remains vital for securing the global recovery.
Global Growth Forecast to Rise Further in 2018 and
2019
Global growth for 2017 is now estimated at 3.7 percent,
0.1 percentage point higher than projected in the fall.
Upside growth surprises were particularly pronounced
in Europe and Asia but broad based, with outturns for
both the advanced and the emerging market and
developing economy groups exceeding the fall
forecasts by 0.1 percentage point. The stronger
momentum experienced in 2017 is expected to carry
into 2018 and 2019, with global growth revised up to
3.9 percent for both years (0.2 percentage point higher
relative to the fall forecasts).
For the two-year forecast horizon, the upward revisions
to the global outlook result mainly from advanced
economies, where growth is now expected to exceed 2
percent in 2018 and 2019. The expected global
macroeconomic effects account for around one-half of
the cumulative upward revision to the global growth
forecast for 2018 and 2019, with a range of uncertainty
around this baseline projection.
The growth forecast for 2018 and 2019 has also been
revised up for other advanced economies, reflecting in
particular stronger growth in advanced Asian
economies, which are especially sensitive to the
outlook for global trade and investment. The growth
forecast for Japan has been revised up for 2018 and
2019, reflecting upward revisions to external demand,
the supplementary budget for 2018, and carryover
from stronger-than-expected recent activity.
The aggregate growth forecast for the emerging
markets and developing economies for 2018 and 2019
is unchanged, with marked differences in the outlook
across regions. Emerging and developing Asia will grow
at around 6.5 percent over 2018–19, broadly the same
pace as in 2017. Growth is expected to moderate
gradually in China (though with a slight upward revision
to the forecast for 2018 and 2019 relative to the fall
forecasts, reflecting stronger external demand), pick up
in India, and remain broadly stable in the ASEAN-5
region.
In emerging and developing Europe, where growth in
2017 is now estimated to have exceeded 5 percent,
activity in 2018 and 2019 is projected to remain
stronger than previously anticipated, lifted by a higher
growth forecast for Poland and especially Turkey. In
Latin America, the recovery is expected to strengthen,
with growth of 1.9 percent in 2018 (as projected in the
fall) and 2.6 percent in 2019 (a 0.2 percentage point
upward revision). Growth in the Middle East, North
Africa, Afghanistan, and Pakistan region is also
expected to pick up in 2018 and 2019, but remains
subdued at around 3½ percent.
BRIGHTER PROSPECTS
Global economic activity continues to firm up.
2017 2018 2019
Global
Economy
Emerging Markets &
Developing Economies
2017 2018 2019
4.7
4.9 5.0
2017 2018 2019
Advanced
Economies
2.22.32.3
3.9 3.9
3.7

24. 22 MTBiz
ECONOMIC FORECAST
The growth pickup in Sub-Saharan Africa (from 2.7
percent in 2017 to 3.3 percent in 2018 and 3.5 percent
in 2019) is broadly as anticipated in the fall, with a
modest upgrade to the growth forecast for Nigeria but
more subdued growth prospects in South Africa, where
growth is now expected to remain below 1 percent in
2018–19, as increased political uncertainty weighs on
confidence and investment.
Growth this year and next is projected to remain above
2 percent in the Commonwealth of Independent States,
supported by a slight upward revision to growth
prospects for Russia in 2018.
Policies
Two common policy objectives tie advanced, emerging,
and developing economies together. First, the need to
raise potential output growth—through structural
reforms to lift productivity and, especially in advanced
economies with aging populations, enhance labor force
participation rates—while making sure that the gains
from growth are shared widely. Second, the imperative
to increase resilience, including through proactive
financial regulation and, where needed, balance sheet
repair and strengthening fiscal buffers. Action is
particularly important in a low-interest-rate,
low-volatility environment with potential for disruptive
portfolio adjustments and capital flow reversals. The
current cyclical upswing provides a unique opportunity
for structural and governance reforms.
Against a backdrop of common priorities, the optimal
policy mix differs across countries depending on cyclical
considerations and available policy space:
• In advanced economies where output is close to
potential, still-muted wage and price pressures call for a
cautious and data-dependent monetary policy
normalization path. However, where unemployment is
low and projected to decline further, such as in the
United States, a faster pace of policy normalization may
be required if inflation were to pick up more than
currently anticipated. In advanced economies where
output gaps persist and inflation remains below the
central bank target, continued monetary
accommodation is desirable. Fiscal policy in both cases
should focus on medium-term objectives —including
public investment to boost potential output and
initiatives to raise labor force participation rates where
gaps exist—while ensuring that public debt dynamics
are sustainable and excessive external imbalances are
reduced.
• In emerging market economies, improved
monetary policy frameworks have helped lower core
inflation, which provides scope for using monetary
policy to support demand should activity weaken. Fiscal
policy is generally more constrained by the need to
gradually rebuild buffers, especially in
commodity-dependent emerging market and
developing economies.
• The policy challenges for low-income countries
are particularly complex, as they involve multiple,
sometimes conflicting goals. Policy initiatives should
continue to focus on broadening the tax base,
mobilizing revenue, improving debt management,
reducing poorly targeted subsidies, and channeling
spending into areas that lift potential growth and
improve the livelihoods of all (infrastructure, health,
and education). Efforts to strengthen macroprudential
frameworks and greater exchange rate flexibility would
improve resource allocation, reduce vulnerabilities, and
boost resilience.
Cooperative multilateral effort remains vital to
safeguard recent momentum in global activity,
strengthen medium-term prospects, and ensure the
benefits from technological progress and global
economic integration are shared more widely. Priority
areas include continuing the financial regulatory reform
agenda; avoiding competitive races to the bottom in
taxes, labor, and environmental standards; modernizing
the rules-based multilateral trade framework;
strengthening the global financial safety net; preserving
correspondent banking relationships; curbing
cross-border money laundering, organized crime, and
terrorism; and mitigating and adapting to climate
change.
PRIORITIES FOR POLICYMAKERS
Common policy objectives: (1) raise potential growth,
(2) Proactively increase resilience, (3) ensure more inclusive growth
Low-Income
Countries
Diversity economies
and build
resilience-enhancing
buffers
Emerging Markets
When needed, use
monetary policy to
support demand; avoid
deferring reforms and
budgetary
adjustmentsAdvanced Economies
Monitor inflation and
carefully adjust
monetary policy;
Structural reforms
to boost potential
growth
Promote global
cooperation
and free & fair
trade

25. 23 MTBiz
WELLS FARGO MONTHLY OUTLOOK
INTERNATIONAL NEWS WELLS
SECURITIES
FARGO
Moving Point A to Point B: Economic Implications
When fly fishing in the streams in Wyoming, one quickly
learns that moving from point A to point B is often
further and bumpier than the line of vision. In the
economy, the dynamics of moving from 2.3 percent
growth in 2017 towards 3 percent in 2018 enhances the
“cautious tale” Wells Fargo highlighted in Annual
Outlook for 2018. What Wells Fargo has witnessed so
far is that small increases in market expectations for
growth (see real final sales below), inflation and
interest rates have altered the “optimistic outlook” and
led to large adjustments in the financial markets. Wells
Fargo remains cautious also on the seasonality problem
that has plagued first quarter GDP estimates.
Sector Performance: Solid
Recently enacted tax changes have created upside
opportunities for consumer spending, business
investment and residential investment all stronger in
2018 relative to 2017—while the increase in growth is
now accompanied by a rise in inflation estimates for the
PCE deflator. Better growth and higher inflation
expectations, along with a recent jump in labor
compensation, have moved market expectations to
three fed funds rate increases, and may present risks for
the economy in the near term—Wells Fargo was already
at three hikes. Long-term rates have moved as the
additional problem of Treasury debt supply and demand
confronts the market going forward. Despite the rise in
interest rates, our outlook remains for a weaker
trade-weighted dollar in 2018. Any Fed tightening
appears to be less supportive than earlier in the cycle. In
terms of corporate profits, a rising interest rate
environment and a tight labor market cause to project
trend like growth into 2019.
Global Economy Came into 2018 with Momentum
A synchronous economic upswing appears to be
underway in the global economy at present. The rate of
growth in global industrial production strengthened to
a six-year high last year, and Wells Fargo estimate that
global GDP grew more or less in line with its long-run
average in 2017. Wells Fargo looks for the global
economy to expand at roughly similar rates in 2018 and
2019.
With growth picking up and the threat of deflation
receding in most economies, central banks are
removing policy accommodation. The Fed has hiked
rates by 125 bps over the past two years, and Wells
Fargo look for 75 bps of further tightening by the FOMC
in 2018. The ECB has been dialing back its bond buying,
and Wells Fargo look for it to end its quantitative easing
program late this year before beginning a slow process
of rate hikes next year. The Bank of Canada and the
Bank of England hiked rates last year, and Wells Fargo
expect that both central banks will tighten further this
year. Wells Fargo looks for the downward trend in the
dollar to continue as ongoing Fed tightening starts to
become less supportive of the dollar and as foreign
central banks start to catch up to the Fed with their own
removal of policy accommodation.
There clearly are a number of geopolitical events that, if
they were to come to pass, could raise risk aversion
among investors and businesses, thereby weakening
growth prospects. Growth could also weaken if central
banks become too aggressive in their removal of policy
accommodation. But if these risks do not come to pass,
then the global economy should continue to expand
this year at a solid pace.
U.S. Overview International Overview
Source: International Monetary fund, U.S Department of commverce and Wells Fargo Securities
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real Global GDP Growth
Year-Over-Year Percent Change, PPP Weights
7.5%
6.0%
4.5%
3.0%
1.5%
0.0%
-1.5%
7.5%
6.0%
4.5%
3.0%
1.5%
0.0%
-1.5%
1980 1985 1990 1995 2000 2005 2010 2015
WF
Forecast
U.S. Real GDP
Bars CAGR Line Yr/Yr Percent Change
Yr/Yr Percent Change : Q3 @ 2.3%
GDP
GDP
CAGR: Q3 @ 3.2%
Period Average

26. 24 MTBiz
FINANCIAL GLOSSARY
Churning: Churning is the unjustified overtrading by
a stockbroker or fund manager. A broker or manager
that earns a commission whenever a trade is carried
out has an incentive to carry out as many trades as
possible, hence the risk of churning.
Cyclical stock: Cyclical stock is the stock of a company
whose profits tend to move in a cyclical manner in
phase with the overall economy. If the economy is
doing well, profits increase. If the economy is doing
poorly, profits decrease. Many manufacturing
companies are cyclical stock companies since they
will sell more products in a prosperous economy and
less products during recessions. A popular investment
strategy is to purchase cyclical stock just before the
economy starts to rise again after a low-period. Of
course, detecting this spot is notoriously difficult.
Chartered Business Valuator (CBV): Is a certification
offered to financial professionals by The Canadian
Institute of Chartered Business Valuators. Certified
members are able to evaluate the value of a company
using assets, cash flow, and different economic
conditions. Candidates must pass courses, an exam,
and earn a certain number of hours of business and
securities valuation work experience.
Directors dealings: When directors of a publicly
quoted company buy or sell shares of that company, it
is known as directors dealings. Most jurisdictions and
stock exchanges have specific rules governing
directors dealings. It is for instance not unusual to
prohibit directors dealings during the two months
leading up to an announcement of company results.
Dual purpose fund: In the United States, this term will
typically denote a closed-end fund with a limited life
and two main classes of shares: income shares
(preferred shares) and capital shares (common
shares). All the income goes to the holders of income
shares. When the fund expires, holders of income
shares are paid a fixed redemption price for their
shares, and any assets remaining in the fund after
that go to the holders of capital shares. In the United
Kingdom, a similar solution is the Split Capital
Investment Trust.
Entitlement offer: An entitlement offer is a
time-limited offer to purchase a security or other
asset that cannot be transferred to another party. An
entitlement offer is offered at a set price. If there was
no transfer ban, the offer would be called a rights
offer, not an entitlement offer.
G O S S A R Y Y
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