B a ngl ad esh c an att ract big in ve stme nt · M ar ch 2013 B a ngl ad esh c an att ract big in ve stme nt S ee page 7-8 K. M. Kh a le d e le cte d Pr esid ent of CanC ham S ee

March 2013

Bangladesh can attract big investmentSee page 7-8

K. M. Khaled elected President of CanChamSee page 4

Bangladeshi Diaspora can attract more Canadian investmentSee page 26

Record remittance in 2012See page 20

Volume -VIII

I am delighted to bring out the8th issue of CanCham Reviewaiming at flourishing the bilateraltrade and investment opportuni-ties between Canada andBangladesh. Primarily it is anuseful tool for disseminatingvital information on differentsectors of Canada Bangladeshbilateral relationship.

The current issue coversCanCham Annual General

Meeting, networking event, seminars, presentations, artexhibition of Canadian artist, different articles andinterviews of former President of CanCham and HighCommissioner of Canada in Bangladesh. Pictorial viewof CanCham activities will substantially enrich the cur-rent issue and generate interest to the valued readers.Our aim is to prepare ourselves to meet the challengesof the twenty-first century in the arena of business inright earnest. Our priority areas are to increase peopleto people contact, export diversification, IT and IT out-sourcing access to Canada and North America andinvolving Bangladeshi diaspora in Canada for invest-ment in Bangladesh.

CanCham will also emphasize on capacity buildingprograms for the exporters of Canada and Bangladeshby organizing trade show, seminar, symposium, work-shop, research etc. One of the focuses of the Chamberwill be to assist Bangladeshi companies to get exposedto the high technology available in Canada and to takeadvantage as such.

I am confident that CanCham's efforts will bring sig-nificant benefits for the economic development inBangladesh as well as in Canada.

We solicit cooperation of all concerned to strengthenCanada Bangladesh bilateral relations to still a greaterheight.

I thank all including Chairman of Review AdvisoryBoard, entities that provided advertisement andCanCham officials and others related to the publicationto this issue.

I wish a very prosperous year ahead for all!With kindest regards

CanCham : Vision and Mission= Accelerate economic prosperity of

Canada and Bangladesh through trade andinvestment.

= With the valuable expertise of thehonorable members from differentbusiness field from the two countries,CanCham is committed to serve thebusiness community of Canada and that ofBangladesh.

Review Advisory BoardMasud Rahman, ChairmanMr. Zulfiquar Rahman, MemberMr. Niaz Rahim, MemberMr. Mustafa Rafiqul Islam, Member

From President's Desk

K.M. KhaledPresident, CanCham

Canada Bangladesh Chamber of Commerce and Industry (CanCham) Concord Tower, Suite# 504 (5th Floor) 113 Kazi Nazrul Islam Avenue, Dhaka-1000, BangladeshTel: +88-02-9359359, 9351427 Fax: +88-02-9359407e-mail: [email protected]

C O N T E N T S

= Office Bearers and Board of Directors, CanCham 04

= CanCham 4th Networking Reception 05

= Farewell and Reception program of theCanCham Board of Directors 06

= Seminars 07 - 10

= Annual General Meeting 2012 11

= Education 12

= Art and Culture 13

= Diaspora News 14

= Bangladesh IT and IT Outsourcing 15-17

= Bangladesh Economy 18-25

= Exclusive Interviews: 26-33

2 CanCham Review, March 2013

Office Bearers and Board of Directors, CanCham 2012-13

Syed Mastafizur RahmanTreasurer

Junaed Ibna AliDirector

Saiful IslamDirector

Zulfiquar RahmanVice-President

M. A. SalamDirector

Ali Bakhtiar MahmoodDirector

Mustafa Rafiqul IslamDirector

Mostafa Quamrus SobhanDirector

K. M. Khaled,Chairman of GETCOGroup of Companieswas born inBangladesh. He gradu-ated in MechanicalEngineering with FirstClass in 1962 from theBangladesh Universityof Engineering &Technology (BUET).After graduation, hejoined the then Water

and Power DevelopmentAuthority (WAPDA).

Having served in BWDB for 13 years, he chose to starthis own business in 1975 and established GreenlandEngineers & Tractors Company Ltd (GETCO) in part-nership with his engineer friends.

GETCO Group, a multi-sector national conglomeratecompany, operates in diversified areas. The owningcompanies of GETCO Group are:

Greenland Engineers & Tractors Co. Ltd. GETCO Elevators Ltd. GETCO Telecommunications Ltd. GETCO Business Solutions Ltd. HRC Technologies Ltd. GETCO Technolabs Ltd. Prime Asia University, Bangladesh.

Mr. Khaled is also involved with some financialinstitutions of Bangladesh: They are:

Sponsor Director and a former Chairman of Prime BankLtd., Nominee Director of Prime Finance & InvestmentLtd., Shareholder & Director of Fareast Islami LifeInsurance Co., Shareholder of Fareast FinanceInvestment Ltd. and Director of PFI Properties Ltd.

K. M. KhaledPresident

K.M. Khaled Elected President of CanCham 2012-13

3CanCham Review, March 2013

CanCham 4th Networking Reception

M Ehsanul Haque MD & CEO of Mercantile BankLimited sharing his view during the Q&A session.

Kjersti Thoen CFO GPIT is also seen.

H.E. Heather Cruden High Commissioner of Canadaseen addressing at the guests

Syed Afsor H Uddin CEO, Public Private Partnership(PPP) Prime Minister’s Office sharing his views at the

networking.

CanCham 4th Networking Reception” was held onThursday, 6th September 2012 at the Canadian Club,Baridhara, Dhaka.

CIDA (Canadian International Development Agency)made a presentation on the reception.

High Commissioner of Canada, business personalitiesfrom local and international business hubs,consultants of varied fields, academicians, NGObodies, Chamber leaders, journalists etc were presentat the networking reception.

Janet Durno, Country Director & Head, CIDA inBangladesh giving her speech at the networking

Nicolas Simard, Deputy Director, Planning(Development) High Commission of Canada giving

his remarks at the networking


Farewell and Reception program of the CanCham Board of Directors

Mahbubur Rahman, President of InternationalChamber of Commerce in Bangladesh discussing with

H.E. Heather Cruden. Ms. M. Teresa Kho, CountryDirector, ADB is also seen (middle).

Newly elected Vice President CanCham BangladeshZulfiquar Rahman shares a light moment with the

High Commissioner of Canada H.E. Heather Cruden

H.E Heather Cruden is seen receiving bouquet fromformer President, CanCham Bangladesh, Masud Rahman. Treasurer, CanCham Bangladesh, Syed Mastafizur Rahman

is also seen

H.E. Heather Cruden receiving Aftab ul Islam, President of AmCham Bangladesh

A Farewell and Reception program of CanCham washeld at the Canadian High Commissioner’s officialresidence on the evening of 13th September 2012.

High Commissioner of Canada H.E HeatherCruden hosted the reception in honor of the outgoing

and new elected board of directors of CanChamBangladesh.

Ambassadors, Ex Ambassadors, Local andInternational business entities, chamber leaders were

present at the networking program.

Newly elected President CanCham Bangladesh Mr. K.M.Khaled presenting bouquet to H.E Heather Cruden


Seminars

Bangladesh Can Attract Big InvestmentsPrivate sector Development: Role of ADB

Canada Bangladesh Chamber ofCommerce and Industry (CanCham,Bangladesh) in association with theAsian Development Bank (ADB)jointly organized a presentation pro-gram titled “Private SectorDevelopment: Role of ADB” onAugust 30, 2012 at the MarbleRoom of the Hotel Ruposhi Bangla,Dhaka. Eastern Bank Limited spon-sored the seminar.

H.E. Ghulam Muhammed Quader,MP, Honourable Minister, Ministryof Commerce, Government of thePeople’s Republic of Bangladeshgraced the occasion as the chiefguest. H.E. Heather Cruden, HighCommissioner of Canada toBangladesh, was present as specialguest. President CanCham Mr.Masud Rahman, Mr. Juan Miranda,Director General, South AsianRegional Department (SARD),ADB, Mr. Grant Hauber, ADBPrincipal Private Sector

Development Specialist, SARD andMs. Sujata Gupta, PrincipalInvestment Specialist, ADB alsospoke during the program. Ms. M.Teresa Kho, Country Director,ADB, Bangladesh Resident Missionwas also present in the program.

The moot point of the program wasthe need and importance of thePrivate Sector Development inBangladesh where ADB is playing avital role and expressed their futurefocus regarding the development ofthe private sector.

Former President of CanChamMasud Rahman mentioned theprivate sector needs the right policyand regulatory frameworks to secureinvestments and to spur privatesector investment for sustainabledevelopment. He also mentionedthat businessmen in Bangladeshwant to invest further inBangladesh’s priority sectors if they

can get various fiscal and non-fiscalsupports. He urged AsianDevelopment Bank to look in tothese areas and work more with theprivate sector."

Mr. Miranda, DG ADB said thatBangladesh has become a part andparcel of the global economythroughout significant progress interms of economic and social devel-opment; still Bangladesh needs togrow more rapidly and reducepoverty faster. He also added thatBangladesh has the potential forhigher growth because of its strate-gic location in a fast-growing regionand it has a large number of cheaplabor. He remarked that ADB willseek to prioritize private sectordevelopment to help accelerate eco-nomic growth.

Mr. Grant Hauber focused howBangladesh has set up a remarkablemilestone of progress and development

(From right to left) Ms. Sujata Gupta, PPP Expert ADB; H. E. Heather Cruden, High Commissioner of Canadato Bangladesh; H.E. Ghulam Muhammed Quader, MP, Honourable Minister, Ministry of Commerce, Government

of the People’s Republic of Bangladesh; Masud Rahman, former President CanCham; Juan Miranda, DirectorGeneral, SARD, Asian Development Band (ADB); M. Teresa Kho, Country Director, ADB Bangladesh and Grant

Hauber PPP Expert, SARD, ADB.


Seminars in the private sector in recent years.He urged to learn from past and tofocus on future for further develop-ment. ADB highly appreciate ideas,plan and initiatives from the privatesectors therefore he asked to contactADB’s PPP department for suchissues.

Ms. Sujata Gupta showed somerecent examples of ADB’s invest-ment in Bangladesh such as PranAgro, Lafarge Surma Cement,Meghnaghat Power Plant etc. Shealso added that as a developmentbank ADB highly support the pri-vate sector and the capital market.

ADB offers middle or long termloan to the private sector therefore,the long term financial supportwould help flourishing of the privatesector.

H.E. Heather Cruden mentioned thatBangladesh has adequate humanresources which needed to betrained up to make the private sectorstronger. She added that CIDA isalso helping in capacity buildingissues which would help flourishingthe private sector and also intends toknow how Canada’s developmentwork could help Bangladesh privatesectors.

H.E. Ghulam Muhammed Quader,MP expressed his deep gratitude andthanks for arranging such program.He remarked that Bangladesh hasbecome an important member of theglobal economy and the private sec-tor here is moving forward. He men-tioned that every country has itsown specialty which cannot becopied. Despite of some constraintsBangladesh’s economy is movingahead each year where Governmentof Bangladesh is acting as a facilita-tor for the betterment of the privatesector.

He also added that GOB has devel-oped PPP model and always readyto give support to the private sector.

Juan Miranda, Director General, SARD, AsianDevelopment Bank (ADB) delivering his speech

at the seminar

H.E. Ghulam Muhammed Quader, MP, HonourableMinister, Ministry of Commerce addressing at the

seminar

Invited guests at the seminarCanCham Treasurer Mr. Syed Mastafizur Rahman,Janet Durno Country Director & Head CIDA in

Bangladesh and Meaghan Byers First Secretary CIDA


Seminars

A seminar on bioequivalence studiesin Bangladesh -- opportunity forinvestment co-organised byCanadian High Commission inDhaka, Canada BangladeshChamber of Commerce and Industryand ICDDR,B was held at RuposhiBangla Hotel on 29th August 2012.

The seminar disclosed that a newinternational clinical research insti-tute will be set up in Bangladeshwithin a year, paving the way forfurther research in medical scienceand increased exports of pharma-ceuticals.

Bangladesh Clinical ResearchOrganisation (BCRG) will helpdevelop innovative life-saving drugsand give globally-accepted certifica-tion to exportable medicines.Bangladesh currently exports drugsafter paying for expensive certifica-tion abroad.

The BCRG that will cost $50 mil-lion in four years promises to ensurethe quality of generic health prod-ucts manufactured locally.

GHE, an initiative of McGillUniversity in Canada andCentennial Group International inthe US, will be a major shareholderin the new organization. TheInternational Centre for DiarrhoealResearch, Bangladesh (ICDDR,B),an international health researchinstitution located in Dhaka, will bea partner in the project.

We want to set up the clinicalresearch organisation (CRO) inBangladesh as it has tremendouspotential, said Dr Moshe Szyf, aglobally renowned scientist and asenior faculty member of McGillUniversity. There are several ele-ments for clinical research to flour-ish in the country. These includedense health care infrastructure, acadre of trained health profession-als, educated young people and alarge population base. The globalmarket for clinical research wasestimated at more than $20 billion in2011 and will expand to more than$50 billion in 2020, Szyf said.

A CRO performs clinical research asa service for pharmaceuticals. Theseservices involve clinical trials suchas testing whether new drugs areefficacious and safe or generic drugsby examining whether they areequivalent to the "brand" namedrugs.

The CROs also do early research ondrug development as a service forthe pharma industry including ani-mal studies and laboratoryexperiments. In the last decade therehas been a rapid expansion in theCROs in Asia, particularly in Chinaand India, but Bangladesh has notbeen present in this area. The coun-try, however, has the potential tograb at least 5 percent of the totalCRO market by 2020, said Szyf.

He said there has been a worldwidegrowth in the CRO industry as phar-maceutical companies outsource agreat fraction of their research anddevelopment activities from theCROs.

(From left) Former President CanCham Masud Rahman, Ahmed Nasuruddin Mahmud, Executive member BOI,H.E. Heather Cruden, High Commissioner of Canada, Dr. A. F. M Ruhul Haque, Honorable Minister,

Ministry of Health and Family Welfare, McGill University Professor Dr Moshe Szyf and Dr. Shames El Arifeen, Acting Interim Executive Director, icddr, b

New Horizon Opens for Drug Makers


Seminars Once the organization is launched inBangladesh, it will also help thecountry to enter more advancedcountries with pharmaceutical prod-ucts. Though Bangladeshi compa-nies have produced an impressivenumber of generic drugs, most areconsumed domestically.

Bangladesh's exports are stuntedbecause of a lack of world-classCROs and standards for genericdrug bioequivalence in the country.The global market is huge andBangladesh is well positioned totake a share of this market, said theprofessor of McGill University. Theworld's total generic drugs market isestimated at $170 billion in 2010and it is projected at $246 billion in2017, citing a market research in

2011. In 2011, about 39 Bangladeshicompanies exported pharmaceuticalproducts worth more than $50 mil-lion.So there is a huge potential forBangladesh to increase productionand export of generic drugs for reg-ulated markets, said the scientist.

The sites of clinical studies willinclude excellent hospitals acrossBangladesh that will be critical pub-lic partners of this enterprise. GHEwill take advantage of its interna-tional network in academia andindustry and will be responsible forglobal marketing and businessdevelopment. The organization willbe an independent public-privatepartnership with finance from localand foreign investors. It will be aworld-class provider of clinical

products and services to the rapidlyexpanding health, medicine andpharmaceutical markets, bothdomestic and global.

The annual market of pharma-ceuti-cals in Bangladesh is Tk 6,000crore, and local companies hold 97percent of the market share.

Health Minister AFM Ruhal Haquehas lauded the initiative, saying thegovernment will provide all-outsupport.

Heather Cruden, Canadian highcommissioner to Bangladesh, andMasud Rahman, former President ofCanada Bangladesh Chamber ofCommerce and Industry, also spoke.

Courtesy: The Daily Star

H.E. Heather Cruden High Commissioner of Canadaaddressing at the audience

Dr. A. F. M Ruhul Haque Honorable Minister, Ministry ofHealth and Family Welfare speaking at the seminar

Chief Advisor/Immediate Past President CanChamMasud Rahman speaking at the seminar

Dr. Shames El Arifeen, Acting Interim ExecutiveDirector, icddr, b speaking at the seminar


Annual General Meeting 2012

K.M. Khaled has been elected as President of CanadaBangladesh Chamber of Commerce and Industry(CanCham) for the term 2012-2013.

It was declared and confirmed at the CanCham AGM,held on 10th September, 2012 at the Dhaka Club Ltd.Mr. Khaled is the Chairman of M/S. Getco Limited. Hewas also former Vice-President of Canada BangladeshChamber of Commerce and Industry (CanCham) for theterm 2010-2011.

The other Office Bearers are Mr. Zulfiquar Rahman(Managing Director of M/S. Greenland Garments Ltd.)Vice-President; Syed Mastafizur Rahman (Managing

Director M/S. Novo Cargo Services Ltd.) Treasurer. Therest of the Directors are Mr. Saiful Islam, Mr. Md.Junaed Ibna Ali, Mr. Ali Bakhtiar Mahmood, Mr. M. A.Salam, Mr. Mustafa Rafiqul Islam & Mr. MostafaQuamrus Sobhan.

The election was followed by the 7th Annual GeneralMeeting (AGM) of Canada Bangladesh Chamber ofCommerce and Industry (CanCham).

The well-attended AGM briefly described the road mapof Canada-Bangladesh trade relations for the next twoyears and highlighted different activities of CanCham inpromoting inter-trade between Canada and Bangladesh.

Immediate Past President Masud Rahman receivingcrest from President CanCham K.M. Khaled

Niaz Rahim former Vice President CanCham receivingcrest from Immediate Past President Masud Rahman

(From left) Former Treasurer CanCham Manzur-ur-Rahman Ruskin, President CanChamK.M.Khaled, Immediate Past President CanCham Masud Rahman, Chairman Election

Board CanCham M. Shahjahan Khan and Former Vice-President CanCham Niaz Rahim.


Education

Canadian International SchoolDhaka is association with CanadaBangladesh Chamber of Commerceand Industry (CanChamBangladesh) organized a receptionceremony in honor of AssistantDeputy Minister Manitoba DivisionSchool Program, Canada.

The gala reception took place at theRadisson BLU Water Garden Hotel,Dhaka on the 1st December 2012 inhonor of Ms. Aileen MargaretNajduch, Assistant Deputy Minister,Manitoba Education SchoolProgram Division, Canada, Mr.Darryl Jules Gervais, Director,Manitoba Education SchoolsProgram Division and Mrs. BrendaLynn Gervais who are visiting theCanadian International School (CIS)for accreditation by the Ministry ofManitoba Education. The reception

was also attended by many specialguests. A large gathering of distin-guished people from Education,Government Officers, Business,Parents and Students from CISthoroughly enjoyed the function.

As CIS grows, the future plansinclude a large modern EnglishMedium School campus on a largesector of land in the Purbachal EastWood City Development areaapproximately 12 kilometers outsidethe city of Dhaka.

Reception ceremony in honor of Assistant Deputy Minister Manitoba DivisionSchool Program, Canada

Chairman Canadian International School Dhaka Mohammad Kamal Uddin (middle) with Masud Rahman Chief Advisor/Immediate Past President CanCham (extreme right) are seen at the program

Masud Rahman, Chief Advisor/Immediate Past President CanChamaddressing at the reception ceremony


Art & CultureSolo Art Exhibition by the Canadian Artist

Institute of Art andCulture (IAC) organ-ized a solo exhibitiontitled ‘NAP’ by theCanadian Artist MikeWoodcock. The exhibi-tion took place at theIAC, House 2, Gulshan1, Dhaka from Nov15th to Nov 30th 2012.H/C Heather Cruden,High Commissioner ofCanada to Bangladeshwas present to inaugu-rate the exhibition.

Forty eight artworksrepresented nature andthe forest.

Working with Acrylic and Oil onCanvas, Mike has depicted the treesin a way that calms the soul withforest life. As an undertone of eachartwork, leaves an open interpreta-tion for the viewers to think aboutthe silent depth of nature and thevulnerable situation of the environ-ment during this age of rapid urbandevelopment. Exploring the beauti-

ful relationship between nature andmankind, the exhibition broughthappiness conspicuously to thoseliving close to nature. Born in 1966in Vancouver B.C. Canada, MikeWoodcock has had over sixteen soloand numerous group showings indifferent countries and regions. TheCanadian artist has also had severalexhibitions in Bangladesh expand-ing the cultural alliance between thetwo countries.

H. E Heather Crudensaid in her inauguralspeech that promotingarti tic exchanges are avital part of the pro-jection of Canadian soci-ety refling multiple cul-tures including firstnations and both ourofficial languages.Artists have the abilityto convey a sense of ourshared and distinct val-ues. Art can add depthand mutual appreciationto relations between ourtwo countries while giv-ing expression to univer-sal truths.

Although Bengali culture has deep-er roots than Canada’s, I see similar-ities in historical exposure andacceptance of a wide range of inter-national influences, and a deepattachment to the land and sea.Landscape is a prevailing theme inboth Canadian and Bangladeshi artand is an essential element in defin-ing our respective identities despitethe very different geography.

H.E. Heather Cruden High Commissioner of Canadaflanked by Canadian Artist Mike Woodcock (extreme right)

and Ms. Ishrat Akhond Director & Founding Trustee ofInstitute of Art & Culture (2nd from left) are seen at the

inauguration of the Solo Art Exhibition

Mike Woodcock with one of his creations(From right) Artist Mike Woodcock and KuhuPlamondon with Masud Rahman


Diaspora News

NRBs to invest directly in Bangladesh FundThe non-resident Bangladeshis can directly invest in theBangladesh Fund, which was floated last year followingthe stockmarket debacle. The NRBs can buy the units ofthe fund by using their Non-Resident Investors TakaAccount (NITA).

The permission came at a meeting of the Securities andExchange Commission on November 20, 2012 with itsChairman M Khairul Hossain in the chair, according toa press statement. Earlier, ICB Asset ManagementCompany, the issue manager of the fund, requested theregulator to allow investments from the NRBs in thefund.

Before the permission was given, the NRBs wereallowed to invest in the open-ended fund asforeign investors.The governmentlaunched the Tk 5,000-crore BangladeshFund after the market debacle early lastyear with the Investment Corporation ofBangladesh (ICB) as the lead sponsor.Seven other sponsors were Sonali Bank,Janata Bank, Agrani Bank, Rupali Bank,Bangladesh Development Bank, SadharanBima Corporation and Jibon BimaCorporation.

The sponsors contributed Tk 1,500 crore tothe fund, while the rest Tk 3,500 crore arekept for public. The open-ended mutualfund, a professionally managed collectiveinvestment scheme with unlimited lifetimeand size, was approved by the SEC on May 4 last yearand the public subscription started in October the sameyear.

The fund manager pools money from many sponsors orinvestors through its selling agents and invests it instocks, bonds and short-term money market instru-ments, and pays out dividends to the unit holders annu-ally. At 20 Nov, 12 meeting, the SEC formed two sepa-rate committees to modify public issue and rights issuerules. The panels will advise the commission within thenext one month which changes should be brought to therules.

The two-member committee on public issue rules com-prises the commission's Executive Director M HasanMahmud and Director Mohammad Rejaul Karim, while

the two-member committee on rights issue rules com-prises directors Kamrul Anam Khan and Prodip KumarBasak. The stockmarket regulator also formed anothertwo-member panel on formulation of a guideline onasset revaluation of listed companies.

The committee, comprising SEC directors MahbubulAlam and Abul Kalam, will submit a set of recommen-dations on the guideline to the commission within thenext one month. The SEC also formed a two-memberinquiry committee to investigate the irregularities ofNBL Securities. Earlier, the Dhaka Stock Exchangethrough an investigation found irregularities in the NBLSecurities and sent a probe report to the commission.

At the meeting, the regulator also imposeda Tk 1 lakh fine on each managing direc-tors and each directors of Bangla ProcessIndustries and Mita Textile for failing tosubmit audited financial reports for theyear that ended in June 2011 to the com-mission. The SEC also gave permission toBaizid Steel Industries, Kores(Bangladesh) and Popular Pharmaceuticalsto raise their paid-up capital.

Baizid Steel Industries will issue threecrore ordinary shares of Tk 10 each to raiseits paid-up capital by Tk 30 crore to Tk 40crore, while Kores (Bangladesh) will issue1.3 crore ordinary shares of Tk 10 each toincrease its paid-up capital by Tk 13 crore

to Tk 23 crore.Popular Pharmaceuticals will issue 64.61 lakh ordinaryshares of Tk 100 each to raise its paid-up capital by Tk64.61 crore to Tk 119.71 crore.

The SEC also gave a go-ahead to Sk Akijuddin to raiseTk 100 crore through issuing subordinated non-convert-ible unsecured bond. With a two-year time for fullredemption, only banks and non-banking financial insti-tutions can buy the bond through private placement.Face value of each unit of the bond will be Tk 1 crore.Race Portfolio and Issue Management is the sole leadarranger of the bond. At 20 Nov 12, the SEC alsoextended the subscription period of MTB Unit Fund toJanuary 31 next year.

Courtesy: The Daily Star


Bangladesh IT and IT Outsourcing

Outsourcing, offshoring, freelancing---these are notnew words to the tech-thirsty students, common peopleand business world. The rapid advancement of technol-ogy not only surrounds us in a circle but also influencesus to adapt to recent trends. And the business, within thetech-savvy world, tends to be more cost optimized tosustain through the recent global economic crisis.However, now-a-days outsourcing has been regarded ascost optimization solution for an organization and amatter of great hope for many students.

It is fact that some of the countries are already makingtheir position in global outsourcing market. Still, noway to consider Bangladesh as a crawler among thembut recognised already as a serious player with strongcredentials. As an emerging Information Technology(IT) and Information TechnologyEnabled Services (ITES) out-sourcing destination, this smallSouth-Asian country of 160 mil-lion people has great success sto-ries, endorsed by internationalrenowned bodies like GoldmanSachs, JP Morgan, Gartner etc.The main catch for you is thatBangladesh offers 40% lower cost than that of India andthe Philippines. I will show you some more interestingdata later but for now doesn't it sound interesting toyou? As an added advantage, you are getting a vast poolof 7 million resources who are able to speak in Englishas a second language.

The overall Bangladesh IT and ITES market size hasreached USD 57 million in 2011-12 (July-April) andshowing 54% growth from the same period of the pre-vious fiscal year, as reported by BASIS- the leading ITtrade body in Bangladesh. It is expected that the exportsof outsourcing services may hit USD 70 million this fis-cal year.

Interestingly, the above export figures do not includeUSD 25 million of remittances earned by a 15000-strong freelance community. Their task was not so easyto sustain in the global competition without any backupincluding financial and infrastructure. Despite difficul-ties, these young, talented resources do this odd job and

add value to the exports of Bangladesh. Noteworthy thatBangladesh has been ranked number 3 in oDesk recent-ly, just behind the Philippines and Indian freelancers.The day is not so far when the Bangladeshi freelancerswould be able to dominate these virtual workplaces.What actually drives them? I should say their naturalpassion to making things happen. Demographically,Bangladesh is a place of young population. 56 millionpeople are under the age of 18, 34% of populations arein age group of 15 -34 years and the number is going upwhile the number is going down in some of the devel-oped countries like Europe. No doubt, this young gener-ation, many of whom are students, can be used for ITOor BPO industries if right scope is created.

About 185,000 students are graduating every year from80 universities of Bangladesh,among them more than 14,500 pos-sessing graduate and post-graduatedegree in IT. Though little behind,Bangladesh ranked 85 out of 142 interms of quality of education sys-tem and scored same as Argentina,Chile, Russia etc. Noteworthy thatthe quality of Bangladeshi gradu-

ates are better than that of some other developed coun-tries. For engaging this quality resource pool, some ofthe global giants like Samsung, VizRT, WPP etc. haveset up their operation in Bangladesh. For example,Samsung already setup R&D Centre in Bangladesh with250 persons and having master plan to recruit more.Some of the leading talent development corporations,like NIIT, having operation in over 38 countries, alreadyshowed interest to setup their operations in Bangladeshwith state-of-the-art education centre. Recently, BASISalso launched BASIS Institute of Technology andManagement (BITM) to provide different IT industry-ready programmes for Bangladeshi young resources.

Bangladeshi IT and ITES companies have already madetheir footprint in global outsourcing market and areexporting to Europe, North America and East Asiancountries. Right now, they are ready to offer high-endengineering and product development services rangingfrom web and mobile application development to cus-tomised enterprise software.

Why Bangladesh is right choice for IT outsourcing


Bangladesh IT and IT Outsourcing Most importantly, the industry is led by 800 companies,mostly SMEs. So as a potential buyer, you will certain-ly be on a cost advantageous position for doing businesswith them.

Firstly, labour cost - in this area, Bangladesh has a com-petitive advantage compared to some of the leading out-sourcing countries like the Philippines, India, Brazil,China, Russia etc. As per KPMG Pay Scale Analysisreport, the entry level IT personnel average salary isover 50% cheaper than that of other Asia-Pacific coun-tries like India, the Philippines, Malaysia, Sri Lanka,Thailand and Vietnam etc. Moreover, the salary is evencheaper by 75% to 80% than that of Eastern Europeancountries like Poland, Hungary, Russia, Ukraine, Czech,Romania and Latin American countries like Brazil,Chile, Mexico etc. Most importantly, the average infla-tion rate in Bangladesh has been ranging from 6% to 8%for the last decade which is quite steady in nature.

Secondly, the infrastructure cost which is an importantfactor prior to setting up any business also givesBangladesh an advantage. Most of the IT firms arebased in the capital city Dhaka where rental cost is rel-atively higher than other parts of the country. But stillthe commercial rental in business zone, like Motijheel,Gulshan, Banani etc., is cheaper than that of Delhi by20% and Manila by 40% (Source: Crushman &Wakefield Research, 2011). It is reported that some ITfirms already decentralized their setup at surroundingsof Dhaka city to optimize their operation cost evenmore.

The Government of Bangladesh is willing to support ITinvestment and has declared the first software technolo-gy park, Janata Tower, located in central Dhaka, toreduce the business startup cost, time and to save infra-structure cost as well. Also, land has been acquired fordeveloping a larger High-Tech Park very near atGazipur.Now coming to the internet bandwidth cost,still higher around USD80 per MBPS, it is expected tocome down significantly very soon. Recently,Bangladesh got connected with back-up for the loneundersea cable by way of terrestrial fiber connectivityfrom India. So this is good news for those who wouldlike to start BPO or call centre operations but are stuckfor lack of high speed, resilient connectivity.

The Government of Bangladesh, with its vision of"Digital Bangladesh by 2021", is trying to create ITinvestor-friendly environment. Along with some capac-

ity development programmes, the government willinglypromotes export oriented IT business with cheaperbandwidth, alternate internet connection, tax holidaysetc. Also the government has taken several initiativesthrough legalizing e-Commerce platform. According toThe Global Information Technology Report 2012 pre-pared by the World Economic Forum, the governmentof Bangladesh scored 5 out of 7 for GovernmentPrioritization for ICT and 4.1 out of 7 for Importance ofICT to Government Vision.

Yet, some challenges persist for the situation to improvesignificantly, like IP Rights, electricity shortage, infra-structure development, and lack of marketing andbranding effort for outsourcing industry. Also there issome negative perception you may hear aboutBangladesh like poverty, corruption, natural disaster.But I think these are common problems faced by mostof the developing countries though one might considerthose as a major barrier for business environment.Indeed, these are the areas to be improved to attract theinvestors for the sake of the country's economy.

IT & ITES Outsourcing Industry in Bangladesh hasbeen considered as one of the top promising sector afterRMG. But this sector still suffers from effective market-ing and branding effort. It is not unusual that SMElabelled as IT and ITES firms struggle hard to organizerobust marketing activities individually. But a collectivemarketing and branding effort backed up with the rightpolicy may graduate the industry to the next level ofsuccess. With this spirit of mission, BASIS has been try-ing to promote outsourcing its industry brand"BangladeshNEXT". I think a good directives andbranding roadmap may accelerate Bangladesh positioneven stronger within global outsourcing market.Industry may learn from the other country success sto-ries implementing business friendly ICT policy. Themedia, NRB communities and educational instituresshould play a vital role to promote the brand, for thesuccess of outsourcing to Bangladesh.

Undoubtedly, the significant growth in software exportalready made Bangladesh position stronger in globaloutsourcing market.

The writer Mahfuzul Quader is the Country ProjectCoordinator at UN/WTO International Trade Centre.

Courtesy: The Financial ExpressWednesday, 16 January 2013


Bangladesh IT and IT Outsourcing

Since 2005 I have beenprivileged to visitBangladesh six times –most recently earlier thismonth. A small softwareindustry in a big country(population about 150 mil-lion, three times that of theUK and with a muchyounger age profile) withambitions to become a seri-ous player in the globalsoftware and services mar-ket place. I have had the

opportunity to see progress being made as an advisor, paidby the International Trade Centre (ITC), a joint venture ofthe WTO and UN trade and development body UNCTAD.

My 2005 visit was as the guest of BASIS, the trade asso-ciation of the software & services sector. Their nascentbranding was ‘Bangladesh – the Next India’.

But the reality was that while Bangladesh was emergingas a competitive challenge to India in terms of its costs forquality English-speaking ICT professionals (set at abouthalf of India’s), its business model was very different.

India’s great success is its world players – the Wipros andTCSs who recruit tens of thousands of engineers a year.The emerging Bangladesh model is the SME – smaller,focused and potentially more agile. BASIS is home towell over 800 such SMEs and I argued in 2005 that itsbranding should be focused on them.

The rapid development of the cloud underwrites thisinsight. This December I visited software developer BrainStation-23. The founding CEO, Raisul Kabir, started lifefreelancing internationally online in 2005. Success drovehim to start recruiting friends – and then to launch hiscompany in 2006.

It is now 70-strong and growing fast. His focus is web andmobile bespoke ERP development services for the smallenterprise. He has customers in the Americas, Europe andAsia. From Dhaka he can exploit the Apple App Platformin the USA to create and market apps for clients across theglobe, although he also works on Windows, Linux, andAndroid platforms. The Atos Foundation now providesconsultants to train his staff in contemporary process andmethods. His offices are in the back streets of Dhaka, in a

rough old industrial building that once housed the garmenttrade. But arrive at his floor and all is smart, crisp, design-er-shaped and contemporary.

And he is not alone. Service Engine is a larger venturenurtured by the multi-faceted Abdul Monem Ltd Group.In their downtown offices the main focus for the 75 staffis on software and mobile apps testing: in a second set ofoffices near the airport, BPO operations gather andprocess data relevant to individual credit control on aglobal basis.

At the heart of my visit was a two-day industry/govern-ment conference entitled ‘Positioning Bangladesh –Branding for Business’. As a country Bangladesh has aserious image problem – 49 per cent of people live belowthe poverty line in this politically unstable, rural statewhich is prone to flooding and at risk from global warm-ing – and the conference set out to create conditions for aserious business rebranding of Bangladesh.

I chaired a panel one of whose members was RaihanShamsi, CEO of the software operations arm of GrameenTelecoms, GPIT. He leads a 500-strong venture that is par-laying its experience as the in-house software servicesprovider to Grameen Telecom’s mobile operations intofast growing exports. And I have met with GraphicPeople,a Bangladesh graphics/media venture which partneredwith the Danish company AdPeople.I have written previ-ously of the quality and competitiveness of theBangladesh ICT talent pool – the success of ventures suchas oDesk and Elance in mobilising thousands of local free-lancers into global employment. I estimate that the aggre-gate value of the ‘export sales’ of these freelancers isalready approaching 25-30 per cent of the value of theexport sales of Bangladesh’s software companies.

This is the good news of Brand Bangladesh. But to placeit in a wider context, read this year’s InformationEconomy Report issued by UNCTAD. Focused on theworld software and services economy, it suggests thatBangladesh has to be realistic. For example, despite itslarge and young population (‘promise and potential’) itstill has a very small industrial and commercial base. Lessthan one tenth of a percent of its total employment is incomputer software and services – compared to three-to-five times that percentage in the Philippines or Thailand.Bangladesh will have to box clever. I am sure it will, butthen I have seen the promise and I am impressed.

Courtesy: CIO UKPublished: 04:30 GMT, 03 January 13

Dr. Richard Sykes

Bangladesh is promising big things from a growing small software industry


Bangladesh Economy

The first quarter of fiscal 2012-13 saw a rise in garmentexports to non-traditional markets, an encouraging signfor the sector hurt by economic crises at its traditionalmarkets.

Exports to 11 new destinations stood at $527.61 millionin the first quarter of the current fiscal year, up 28.6 per-cent from the last fiscal year's $410.12 million, accord-ing to data from the Export Promotion Bureau.Following the onset of financial crisis in 2007,Bangladesh started looking for new destinations to off-set the fall in exports to the traditional markets in theUS, European Union and Canada.

Australia, Brazil, Chile, China, India, Japan, SouthKorea, Mexico, Russia, South Africa and Turkey arelooking to be the more promising markets, followed byMalaysia, New Zealand, Norway, Saudi Arabia andThailand.

Of the total export to the new markets, woven items reg-istered a 30.76 percent rise to $280.61 million, whileknitwear, at $247 million, was 26.32 percent higher thanlast year.

The Russian market, which raked in $16.26 million ofexports during the quarter, showed the highest growth.

Turkey, on the other hand, registered a negative growthof 9.21 percent on the back of the 17.5 percent dutyimposed by the Turkish government this year onimports from Bangladesh. Exports to the EU,

Bangladesh's largest garment export destination, fell0.38 percent year-on-year to $2.89 billion in the threemonths to September.

Mustafizur Rahman, executive director of Centre forPolicy Dialogue, said besides the ongoing financial cri-sis in the EU, the declining price of cotton and the short-ening of the winter period are also responsible for theslowdown of exports to the region.

The worrying matter is that, Rahman said, exports to thefour main markets of the EU -- Germany, UK, Franceand Italy -- have also been affected this time.

“Any slowdown in the EU will have a negative impacton all exports of the country,” the trade analyst said,adding the current export condition brings into focus theneed for continued exploration of new destinations.

Additionally, Bangladesh must increase its competitive-ness via increased productivity to grab a bigger pie ofthe Eurozone market from China, who is on the backfoot due to rising costs of production, he said.

“Not least, Bangladesh enjoys a zero-duty access to theEU.” If the EU debt crisis prolongs, the country's shareof the pie will shrink further, said Faruque Hassan, vice-president of Bangladesh Garment Manufacturers andExporters Association.

“But we will continue to perform well in the new desti-nations as we have managed to penetrate them.

Courtesy: The Daily StarMonday, November 19, 2012

New markets brighten hope for RMG


Bangladesh Economy

Bangladesh could be 'next China'Bangladesh must actsoon to take advantageof its low-cost edge tobecome the "nextChina" before Dhaka'scompetitors take themarkets the world's sec-ond largest economy isleaving, according tothe World Bank.

In a report, the lendersaid Bangladesh canbecome the alternativeto China with its labour-intensive exports grow-ing at double digits if itcan address infrastruc-ture bottleneck and takeadvantage of its largepool of underemployed labour-force.

"If Bangladesh could improve the business environmenthalf way to the level of India's, it could increase its tradeby about 38 percent," said the report styled"Bangladesh: Towards Accelerated, Inclusive andSustainable Growth-Opportunities and Challenges". IfBangladesh fails to act soon, others will take themarkets China is vacating, it said.

The report, unveiled at the Westin Hotel in Dhaka onNov 13, 2012, said the average monthly wage inBangladesh is $43, while it is $61 in Cambodia, $87 inIndia, $63 to $90 in Vietnam and $150 to $250 in China.

It said Bangladesh's competitors are becomingexpensive places. In the next three to four years China'sexports of labour-intensive manufactures is projected todecline. It will no longer have one-third of the worldmarket in areas such as garments, textiles, shoes,furniture, toys, electrical goods, car parts, plastic andkitchen wares. Capturing just 1 percent of China's man-ufacturing export markets would almost doubleBangladesh's manufactured exports, said the WB report.

The WB also stressed expanding the manufacturingactivities for exportable products outside Dhaka andChittagong.

Speaking at theevent, Ahsan HMansur, executivedirector of PolicyResearch Institute,Bangladesh, said thecountry would haveto capitalise on itsdemographic div-idend in the next 30years. "If we fail tocash in on it, it willnot come again in thenext several millenni-ums." The wobblyinfrastructure, a lackof good governanceand corruption con-tributed to a flow ofless-than-expectedinvestment in the last

five years, he said. Mansur also said the central bank'smonetary policies in the last three years have not helpedstimulate real investment. "We saw money flowing tomainly speculative sectors. We have to work hard towoo investment. There is no easy way," he said. Mansuralso said Bangladesh should strive for the higher ormiddle level of the middle-income nation, not the lowerlevel.

Syed Nasim Manzur, managing director of ApexAdelchi Footwear Ltd, said Bangladesh should notchase every country on the planet to bring investment.He also called for adequate attention to skills develop-ment. The entrepreneur also said Bangladesh needs tohave a managed migration policy, as the country alsoneeds skilled workers. There is also scope to sendskilled women workers abroad.

Manzur said the country must improve connectivitybetween the capital and other regions in the country, tohelp businesses move out of the highly congested city.

Finance Minister AMA Muhith said the government'sachievement in sorting out infrastructure deficit has notbeen as much as they had wanted to have. "We havesubstantially reduced electricity and gas deficit. Thesupply is much better now. Still, there is deficit." Healso said his government has invested in the roads andrailway sectors, which were not seen in the decide

(From left) Ahsan H Mansur, Executive Director of PolicyResearch Institure; Zahid Hussain, Senior Economist of World

Bank in Bangladesh; AMA Muhith, Finance Minister, Ministry ofFinance Government of Peoples Republic of Bangladesh,

Ellen Goldstein, World Bank Country Director in Bangladesh,Debapriya Bhattacharya, Distinguished Fellow of the Centre forPolicy Dialogue and Salman Zaidi, World Bank lead economist

in Dhaka.


Bangladesh Economybefore the present government came to power over threeyears ago. "This is a big change." Muhith said there isalso a failure in achieving as much success in the skilldevelopment as the government had wanted. He alsosaid the country's domestic demand could not be under-mined. "The domestic demand has been growing. Thecountry is a market of 50 million, which is one-third ofthe country's total population. "This is going to be aforce." The minister said Bangladesh has immensepotential in achieving higher export growth. "The $26-billion export for an economy like Bangladesh isabsolutely unacceptable." He hopes the country'sexports should be about $100 billion in next five years.

Ellen Goldstein, country director of the World Bank,said Bangladesh needs to embark on long-term planningon infrastructure, investment, economic governance andurban management, as the country strives to become amiddle income country by 2021. Goldstein said thecountry must fix problems regarding Dhaka and to someextent in Chittagong, which is the second largest city inthe country. Goldstein said Bangladesh needs to contin-ue to tap the global migrant market and promote safe

migration in order to accelerate growth and reducepoverty at home.

Debapriya Bhattacharya, a distinguished fellow of theCentre for Policy Dialogue, was critical of the WBreport for downplaying the importance of the domestic-economy.

"It is exclusively talking about export-led growth," shesaid, adding that there is an annual market of $44 billionin 2012 for the middle class.

Zahid Hussain, a senior economist of World Bank inBangladesh, who made a presentation on the report, saidskilled labour shortage outside Dhaka and Chittagong isthe main impediment to dispersion of economic activi-ties. He said even targeted incentives have not attractedfirms to distant places. As a result, export processingzones in Dhaka and Chittagong have higher export den-sity and employment density than that of the EPZs out-side of the two cities.

Courtesy: The Daily StarWednesday, November 14, 2012

Bangladesh earned a record amount in remittance, morethan $14 billion, and exported the second highest num-ber of workers last year despite the Middle East crisis,said researchers.

The remittance earning of the country was around $ 13billion in 2011.

Last year, Bangladesh exported more than six lakhworkers. The largest number of workers, more thaneight lakh, was exported in 2008, said sources of theMinistry of Expatriates' Welfare and OverseasEmployment.

Although the migration rate increased by around 6 per-cent in 2012 over 2011, the growth rate began to declinefrom September owing to the United Arab Emirates'(UAE) sudden ban on manpower recruitment on variousgrounds, including allegations of malpractices inrecruitment, said a report of Refugee and MigratoryMovements Research Unit (RMMRU).

The RMMRU, a non-government organisation thatworks with migrants, said the UAE had received thelargest number of workers, around 44 percent of thetotal Bangladeshi migrants, last year. The rate was 50percent in the previous year.

Oman is in the second place for recruiting 25 percentwhile Singapore third for receiving 9 percentBangladeshi workers last year, said the NGO.

The manpower sector might face a big jolt as some othermajor recruiting countries of the Middle East, includingSaudi Arabia, Kuwait, Libya and Iraq, were not recruit-ing Bangladeshi workers on a regular basis, saidexperts.

Bangladesh Association of International RecruitingAgencies (Baira) is worried because the Middle Easternlabour market is gradually being closed for the country.

Baira President M Shahjalal Majumder said the-

Record remittance despite ME crisisBangladesh earned $14b in 2012


Bangladesh Economy

remittance inflow would be impacted negatively if thegovernment failed to send workers to the Middle Eastcountries on a regular basis.

“If migrant workers start returning home in largenumbers and the flow of outbound workers is put onhold, the inflow of remittance will be hit hard and thenational economy will suffer heavy losses”.

Expatriates' Welfare and Overseas EmploymentMinister Khandaker Mosharraf Hossain, however, ruledout the apprehension.

“Earlier, Bangladeshi workers used to go to only 77destinations but now the door is open in 157 countries.So, no major problem will emerge in the sector due tothe UAE ban,” he said.

Currently, more than 60 lakh Bangladeshis work abroadand the majority of them are in Saudi Arabia, the UnitedArab Emirates, Kuwait, Oman, Qatar, Bahrain,Malaysia, Singapore, and Libya.

Kuwait stopped hiring from Bangladesh in 2006, citingmalpractices in recruitment. Since early 2008, SaudiArabia significantly reduced the number of Bangladeshiworkers it used to hire. A report of the TransparencyInternational Bangladesh (TIB) said “the labour

migration sector tops the list in corruption rate” lastyear. But Khandaker Mosharraf disagreed with it.

The TIB report said around 77 percent job seekers in themigration sector has to pay a good amount for briberyand irregularities.

Meanwhile, Bangladeshi household helps are nowbeing recruited in Middle Eastern countries, which is asilver lining. Lebanon happens to be a prospectivedestination for them.

The government has also succeeded in sending workersin Malaysia under state arrangements, as thegovernment of that country decided to recruitBangladeshi workers again in the plantation sectorlifting a four-year ban.

In the first phase, it will take 10,000 Bangladeshiworkers under a Memorandum of Understanding(MoU) between Dhaka and Kuala Lumpur. The countryhad imposed the ban in 2009 on the allegation ofirregularities in recruitment.

Courtesy: The Daily StarSaturday, January 12, 2013


Bangladesh Economy

Bangladesh keeps up growth momentum: Citi

Bangladesh has maintained its growth momentum aver-aging over 6 percent GDP growth since fiscal year2009, in spite of the persisting global economic slow-down, Citibank NA said in its Annual Market Updatefor 2012. Following is the first part of the report.

Provisional data from the Bangladesh Bureau ofStatistics (BBS) shows a GDP growth rate of 6.32 per-cent in fiscal year 2012, which was impressive in thecontext. Global growth was expected to be 2.50 percentwhile the average for developing countries was project-ed at 5.30 percent. GDP growth, however, moderatedfrom last fiscal year's 6.7 percent mainly due to a slow-down in agricultural sector, which fell to 2.53 percentfrom 5.13 percent in the previous fiscal.

The government has set a real GDP growth target of 7.2percent for fiscal year 2013. This growth expectationhinges on a sharp rise in investments, improvement ininfrastructure and power situation as well as global eco-nomic scenario.

The year-on-year inflation rate remained in single digitssince April 2012, while the annual average rate of infla-tion dropped to single digits in September 2012. Point-to-point inflation declined from a peak of 11.59 percentin January 2012 to 7.41 percent in November 2012.

This decline has largely been due to lower food priceinflation which fell from 10.90 percent in January 2012to 6.45 percent in November 2012 due to reasonablefood production and a slowdown in international foodprices.

Following successive hikes in fuel and power prices,non-food inflation shot up to 13.96 percent in March2012. However, since April 2012, non-food inflationstarted to decline, recording a point-to-point value of9.31 percent in November 2012.

Annual average food inflation dropped to single digitsin July 2012 and stands at 7.68 percent as of November2012. Annual average non-food inflation is still in dou-ble digits of 11.71 percent as of November 2012.

Export earnings marked a rise of 5.93 percent in 2011-12 which was well below the export growth target set bythe government at about 15.6 percent for the period.

Eurozone financial crisis coupled with the EuropeanUnion's single-step GSP facility which gave an edge toBangladesh's competitors (Laos and Cambodia) result-ed in sluggish growth in exports.

Export earnings in the first five months (July-November) of 2012-13 stood at about $10,133.57 mil-lion, which is 4.36 percent higher than that of the sameperiod in the previous fiscal.

On the other hand, import growth also reduced signifi-cantly to 5.30 percent in 2011-12 as opposed to 41.79percent reported in 2010-11, leading to lessening ofpressure on the Balance of Payment (BOP) position.

Import LCs opened in 2011-12 declined by 4.01 percentcompared to the growth of 34.04 percent observed in2010-11. Import payments during July-October 2012stand lower by 4.07 percent to $10,750.00 millionagainst the amount of the same period of the previousfiscal.

Sluggish growth of import payments in the current fis-cal year can be attributable to lower food grain importsdue to existing high food stocks, excellent domestic har-vests and restrained monetary policy.

Fresh opening of import LCs during July-October 2012decreased by 11.54 percent to $11,525.17 million com-pared to the same period of the previous fiscal. Negativegrowth in LC opening indicates that import paymentmay not shoot up in near future to put pressure on BOPand exchange rate.

Sharp slowdown in import growth and large inflow ofworkers' remittances in the period contributed to a cur-rent account surplus of $464 million during July-October 2012.

Total workers' remittance receipts during 2011-12increased by 10.24 per cent to $12,843.42 millionagainst $11,650.32 million in 2010-11.

Remittance receipts in the first five months (July-November) of 2012-13 increased by 24.17 percent to$6,110.57 million compared to the growth of 7.41 per-cent during the same period of 2011.


Bangladesh EconomyLarge outflows of Bangladeshi workers to middle-east-ern countries in 2011 and increase in the use of officialchannels contributed to high growth in worker remit-tances in recent times.

Gross foreign exchange reserves of Bangladesh Bankstood at $11,753.96 million (around four months ofimport coverage) at the end of November 2012, whichremains higher than the same period in the previous fis-cal ($9,285.2 million).

The government had earlier taken a number of steps tomaintain reserves, and BOP stability, including the con-firmation of a $987 million IMF-ECF support.

According to the Bangladesh Bank data, the forexreserves hit a record high of $12.65 billion on December20th, 2012, breaking all past records, because ofincreased remittances and foreign assistance, lowimport costs and steady export earnings.

Bangladesh Bank's (BB) monetary policy stance in thefirst half of 2012-13 continues earlier restrictive mone-tary stance to curb inflationary pressures and to preserve

external sector stability, while ensuring adequate privatesector credit to stimulate inclusive growth.

With an aim to contain inflation to single digits andstem foreign reserve depletion, a prudent fiscal stancewas adhered to through ensuring government borrowingfrom the banking system did not crowd out availableliquidity for commercial banks.

Reserve money growth is targeted at 14.50 percent andbroad money growth at 16 percent by December 2012.Credit growth to the private sector to remain at a healthy18 percent -- just enough to accommodate the 2012-13GDP growth target.

This monetary policy stance also aims at ensuringaccess to credit for productive sectors, primarily SMEand agriculture, while reducing share of consumer cred-it and implementation of new loan classification andprovisioning guidelines in order to strengthen the finan-cial sector.

Courtesy: The Daily StarFriday, December 28, 2012

Economic prospects for Bangladesh and Sri Lanka, incontrast to the rest of South Asia, remained favourabledespite a moderate slowdown last year, says a UnitedNations report.

Strong growth in private investment and consumption,backed by a steady increase in remittances, contributedto economic expansion in the two countries.

Titled “World Economic Situation and Prospects 2013(WESP)”, the report was unveiled on Thursday in sevencities across the world. Its first chapter was pre-releasedin New York in December last year.

It says Bangladesh's GDP grew by 6.2 percent in 2012.The rate was second to Sri Lanka's, which was thefastest in the region at 6.5 percent.

According to WESP, Bangladesh will post a 6.3 percentgrowth in 2013 and 6.4 percent in 2014.

India's economy, which represents almost three quartersof the region's GDP, slowed markedly in the past two

years. Annual growth declined from more than 9 percentin 2010 to 5.5 percent in 2012.

Economic growth in South Asia during 2012 fell to itsslowest pace in a decade, but it is projected to recover in2013, the report says.

Gross domestic product in the region expanded by only4.4 percent last year, after growing by 5.8 percent in theyear before. Going forward, growth is projected toaccelerate to 5.0 percent next year and 5.7 percent in2014, led by a gradual recovery in India.

“Persistent high inflation, political uncertainties, andtransport and energy constraints weighed on householdconsumption and business investment in 2012. At thesame time, the exports of most countries in the regionwere hit by the slowdown in developed and emergingeconomies,” the report adds.

GDP growth in India will accelerate in 2013 and 2014,because of stronger growth of exports and capitalinvestment, notes WESP.

Bangladesh fared better than most of South Asia


Bangladesh Economy

Nepal and Pakistan continued to experience subduedgrowth as ongoing political instability and security con-cerns weighed on domestic demand, the report says. InPakistan, total investment has fallen for four consecu-tive years.

Consumer price inflation averaged 11.6 percent in theregion in 2012, slightly up from 11.2 percent in 2011.The report attributes the renewed rise in inflation to sev-eral factors: droughts in parts of the region; higherworld food prices; significant depreciation of local cur-rencies; and increases in administered fuel and electric-ity prices.

However, Bangladesh and Pakistan experienced moder-ate declines in inflation in 2012.

In the outlook, consumer price inflation is projected todecline slightly in most economies, averaging 10.6 per-cent in 2013 and 9.9 percent in 2014 for the region.More stable local currencies, lower global food pricesand slower money supply growth are expected to reduceprice pressures. However, persistently high inflationexpectations, severe supply bottlenecks and the need tofurther raise administered energy prices will limitprogress in reducing inflation.

Workers' remittance flows to Bangladesh, Pakistan andSri Lanka continued to increase rapidly in 2012, partial-ly offsetting the large trade deficits.

The report notes that South Asia struggled with deep-rooted structural challenges in its labour markets. Thesechallenges include the dominance of low-productivityjobs in the large informal sector, high shares of workingpoor, low female participation rates and high youthunemployment.

According to WESP, downside risks to the economicoutlook for South Asia were related to continued globalweakness and to regional or domestic vulnerabilities. Afurther economic downturn in the US or Europe or ahard landing of China's economy would further weakenSouth Asia's exports, while also reducing inflows fromworkers' remittances. Widening current-accountdeficits, coupled with lower portfolio capital inflows,could add pressure on the balance of payments, possiblyrequiring contractionary policy adjustment. Politicalinstability and deteriorating security conditions repre-sent downside risks for several countries, notably theIslamic Republic of Iran, Nepal and Pakistan.

The report -- jointly produced by Development Policyand Analysis Division, the UN Conference on Trade andDevelopment (UNCTAD) and the five United NationsRegional Commissions -- is one of the most highlyanticipated economic reports from the UN. It providesan overview of recent global economic performance andshort-term prospects for the world economy.

Courtesy: The Daily StarSaturday, January 19, 2013


Bangladesh Economy

The leather industry aims to cross the $1-billion mark inexport earnings this fiscal year as the sector is witness-ing a robust demand for leather and leather goods in theglobal market.

The manufacturers said they will reach the export targetat $1.04 billion set by the government for this year.

Their earnings fell short by only 3.58 percent of the lastyear's target at $792.34 million.

The industry earned $451 million by exporting leather,leather products and footwear during July-Decemberthis fiscal year, up by 20 percent compared to the sameperiod last year.

“We are very optimistic about the export growth ofleather goods during the current fiscal year as many newbuyers from the US are showing interest in our prod-ucts,” said Tipu Sultan, managing director of BengalLeather Complex.

The rising labour costs in China have forced the USbuyers to come to Bangladesh, he said. Though theBangladeshi workers have lower productivity comparedto the international standards, they are still competitive.“We need to pay $180-$200 for two workers a month,

while the amount is $400-$450 for each worker inChina,” said Sultan.

The exports of leather products made by Bengal LeatherComplex rose by 6 percent to Tk 140 crore in fiscal2011-12. The company aims a 15 percent growth thisyear, said Sultan, who is also a former chairman ofBangladesh Finished Leather, Leather Goods &Footwear Exporters Association.

Improved quality has helped win confidence of morebuyers, said Saiful Islam, a former president ofLeathergoods and Footwear Manufacturers andExporters Association of Bangladesh.

“We are receiving an increasing number of queries fromJapan as we maintain higher product standards,” saidIslam.

Bangladesh exported leather goods worth $73 millionduring the July-December period, up by 107 percentcompared to the same period last year, according toExport Promotion Bureau.

Belal Hossain, chairman of Bangladesh FinishedLeather said the country registered a higher exportgrowth in leather goods as the companies are nowfocusing more on value-added products.

“We are optimistic about reaching the export target setby the EPB for the leather sector,” said Shaheen Ahmed,a former president of Bangladesh Tanners Association.He said their competitive prices and higher standards ofproducts have attracted the international buyers.

Bangladesh exports leather products mainly to Italy,New Zealand, Poland, the UK, Belgium, France,Germany, the US, Canada and Spain.

Also, India, Nepal, Australia and some other countriesare emerging as the potential importers of Bangladeshileather goods. Proper policy support and skills develop-ment of the workforce can fuel the growth in exports ofleather goods, Islam said.

Courtesy: The Daily StarFriday, January 18, 2013

Leather industry aims to cross $1b exports


Exclusive Interviews:

Bangladeshi Diaspora can attract more Canadian investmentBangladesh has enormous potentialto attract more Canadian invest-ment, particularly in readymade gar-ment, IT, outsourcing, power andinfrastructure projects, said a tradebody leader.

So the government has to maintain agood connection with theBangladeshi diaspora inCanada to lure prospectiveinvestors to Bangladesh, saidMasud Rahman, outgoingPresident of Canada-Bangladesh Chamber ofCommerce and Industry(CanCham).

Trade between Bangladeshand Canada has been growingover the last five years. Thetwo countries now trade goodsand services worth more than$1.63 billion annually whereBangladesh enjoys a trade surplus,he said.

The two-way trade has the potentialto reach the $4 billion mark by thenext three years, Rahman told TheDaily Star in an interview at thechamber's office in Dhaka recently.Around 1.5 million Bangladeshisnow live in Canada and the diasporais growing fast, he said.

We need to leverage their presencein Canada and encourage them toget involved in trade and investmentin Bangladesh. Bangladesh's ready-made garment has already emergedas a success story for the world, saidRahman, who served CanCham aspresident for six consecutive years.So we can easily attract Canadianinvestment in the apparel sector.

He said Bangladesh can also attractCanadian investment in other sec-tors such as IT and outsourcing,

power and energy, cutting and pol-ishing of diamond thanks to theavailability of cheap workforce.

Most of our business is donethrough companies based in Torontoand Montreal. We need to lookbeyond these two cities as Canada is

a vast country.

"The best way to address this issueis to set up consulates in cities in dif-ferent regions, like Toronto,Vancouver and Saskatchewan, andengage with and involve the mem-bers of the Bangladeshi diasporascattered there." He said Bangladeshhas to participate in more roadshowsin different provinces, likeSaskatchewan, Manitoba, Alberta,

British Columbia, NorthernTerritories and Yukon, to depictBangladeshi success stories andexplain its potential.

We need to take initiatives to attractmore Canadian trade and invest-ment. We have to work hard to con-

vince them to look beyondIndia and China and show theworld what we have inBangladesh.

He said a little policy supportcan help boost the develop-ment of infrastructure projectsin Bangladesh.

We can use the resources ofExport Development Canada(EDC) and the expertise ofCanadian CommercialCorporation (CCC) for thedevelopment of infrastructure

projects in Bangladesh.

EDC is an export credit agency ofCanada and CCC is the country'sinternational contracting andprocurement agency.

Necessary policy support from theBangladesh government can makethese two organisations work aspartners for development ofBangladesh, he said.

Masud Rahman



The chamber chief also stressed for-mation of a partnership for coopera-tion in the energy sector between thetwo countries.

We can focus on Alberta in energycooperation and oil and gas explo-ration.Energy is Alberta's mostimportant export sector whichaccounted for 71 percent of the totalvalue of the Canadian province'sexports in 2010, he said. So, we canutilise their expertise and know-howto develop our energy sector.

Bangladesh can also focus onManitoba for small hydro projectsas this Canadian province has thestate-of-the-art technology,. Thesouth Asian country of cheap labourcan also attract huge Canadianinvestment for rough diamond cut-ting and polishing. We can establishbusinesses partnering with thenorthwest territories of Canada forcutting and polishing of rough dia-monds.

It is an employment intensive sector.India now holds around 80 percentof the diamond cutting and polish-ing business in the world. So, thecountry should take initiatives toconvince Canadian investors to setup diamond cutting and polishingfactories in Bangladesh and reapattractive cost advantage, he added.

Most minerals and metals producedin Yukon are gold. We can explorethe possibilities of working with thegold of Yukon.

In 2007, Bangladesh's exports toCanada were $506 million, whichrose to $611 million in 2008, $706million in 2009, $813 million in2010 and $1.078 billion in 2011.Canada's exports to Bangladesh alsoincreased from $275 million in 2008to $555 million in 2011.

Bangladesh is currently the largestCanadian agri-commodity buyer inSouth Asia. The main Canadianexports to Bangladesh include cere-als, legumes, oilseeds, iron andsteel. Canada's primary importsfrom Bangladesh include knit appar-el, woven apparel, textile article,headgear and seafood.

Bangladesh imported wheat worth$300 million in 2011 while theamount was zero before 2004.

The bilateral trade between the twowas estimated at $624 million evenin 2006. But the growth marked aturning point in 2008 when localexporters launched a drive to grabmore share of the Canadian marketriding on duty- and quota-free bene-fits. Previously, the trade volumewas low as many of the Bangladeshibusinessmen did not know about themarket, Rahman said.

Now, many Bangladeshi business-men are going to Canada to explorethe market. Bangladesh enjoys duty-and quota-free benefits in Canadianmarket since 2003, he said, addingthat more than $300 millionCanadian investments have been sofar made in Bangladesh. Now, ourtarget is to diversify Bangladesh'sexports as currently 95 percentproducts exported to Canada aregarment items.

There is an ample opportunity toexport pharmaceuticals, softwareand IT services, plastic products,footwear and leather goods, ceram-ics, furniture and bicycles toCanada. We should not depend onlyon garments. We have the opportu-nity to export other products also.

Like other western countries,Canada is also shifting its focus to

other destinations as its longtimetrade partner China has becomeexpensive for Canadian consumers.

Moreover, China now opts for high-end technological gadgets, ratherthan garments, he said. As a result,Bangladeshi businessmen can noweasily grab a little more of theCanadian market, Rahman said.

The chamber leader also urged thegovernment to appoint an honoraryconsul general in Saskatchewanprovince."This province is impor-tant for Bangladesh as we importmany agricultural commoditiesfrom Saskatchewan." RecentlyBangladesh started importing fer-tiliser from Saskatchewan. So, weshould seek their direct assistance toexplore this sector further.

Rahman said CanCham plans toopen a Diaspora Cell in CanChamBangladesh to help the investorsstart SME business, set up companyand invest in Bangladesh by provid-ing assistance in legal and regulato-ry matters.

Moreover, Bangladesh-Canadabilateral relationship marks its 40thanniversary this year.

The outgoing president said therecent closure of the Canadian visi-tor visa processing office in Dhakaleft a negative impact on the traderelation between the two countries.Rahman urged the Canadian gov-ernment to re-open the visa office asit will help business grow furtherbetween the two friendly nations.

http://www.thedailystar.net/newDesign/news-details.php?nid=250111

Courtesy: The Daily StarMonday, September 17, 2012


Exclusive Interviews:Canadian firms exploring new avenues for investment

Envoy Heather Cruden shares her plan in Bangladesh during her tenure

Canadian companies are active inexploring new avenues for invest-ment in Bangladesh's healthcare andother potential manufacturing sec-tors, said Canadian high commis-sioner in Dhaka.

Trades between Canada andBangladesh are primarily focusedon readymade garments, agro-processed food items and ICT-basedproducts. Canada has investments inthe ICT, textile and energy sectors inBangladesh.

When asked about the key cri-teria for Canadian investors inselecting an investment destination,she said Canadian investors evaluatefactors such as cost of production,political and economic stability, reg-ulatory and legal framework, andgood governance.

The envoy said the government ofCanada granted quota- and duty-freeaccess to almost all Bangladeshiproducts (except three) to theCanadian market in January 1, 2003.

This has led to a significant increasein Bangladesh's exports to Canada.The bilateral trade between Canada

and Bangladesh reached more than$1.6 billion in 2011 and is growing.

“In 2011, Canadian exports toBangladesh were worth $555 mil-lion and Bangladesh's exports were$1.07 billion. Bangladesh hasbecome the second largest exporterof merchandise to Canada fromSouth Asia, after India,”. The envoysaid Saskatchewan, a westernCanadian province, leads Canada'sexports to Bangladesh and they havetaken several initiatives to furtherstrengthen their trading relationshipwith Bangladesh. During the visit ofSaskatchewan's Prime MinisterBrad Wall to Bangladesh last year,several deals were signed betweendifferent institutes of the Canadianprovince and their Bangladeshicounterparts, she said.

Some of the objectives of thesedeals were to promote iron fortifica-tion in pulses, develop researchprojects and strengthen the relation-ship between Bangladesh andSaskatchewan. Products and servic-es of a number of Canadian flagshipcompanies such as Research inMotion, Bombardier, IMW, AllianceGrains, and Eyeball Networks, aremarketed in Bangladesh.

The HOM said the CanadaBangladesh Chamber of Commerceand Industry hosted a successfulshow -- Canada 2012 -- which wasattended by a total of 31 Canadianand Bangladeshi companies. Theshow registered sales orders worthmore than $1.2 million. She said herpriorities cover the full spectrum ofCanada's relationship withBangladesh. The scope and direc-tion of the Canadian engagement inBangladesh has been to support

Bangladesh and its people.“Specifically, I hope our bilateraltrade relationship continues to flour-ish and that we can reach $2.0 bil-lion Canadian dollars during mytime here,” she added.

Canada is committed to ensuringthat development partnershipbetween the two countries remainsstrong and that Canada can continueto invest in Bangladesh by creatingopportunities for children andyouth. She said, as India and Chinahave moved to the middle-incomestatus, Bangladesh has benefittedfrom opportunities in the garmentsector.

"I am sure there are other sectorswhere Bangladesh has potential."“I believe Bangladesh's potential isenormous. For example, China isone of the largest importers of rawmaterials. If Bangladesh canbecome a supplier to the Chineseindustry, Bangladesh could easilygrow with the Chinese economy."

Regional trade integration will beimportant and so will be the traderelationships with Canada, the USand Europe, said the high commis-sioner.

Canada can help developBangladesh's trade capacity, tradefacilitation and diversificationarea.Transfer of appropriate tech-nologies, investment in infrastruc-tures and energy projects are theother areas where Canada can workwith Bangladesh. On Canada'sdevelopment priorities inBangladesh, the envoy saidBangladesh has been one of theirlargest aid recipients for the last fourdecades.

H.E Heather Cruden


Exclusive Interviews:From 1972 to 2011, the country has

provided $4.3 billion Canadian dol-lars in assistance to Bangladesh.

The objective of CanadianInternational DevelopmentAgency's (CIDA) programmes inBangladesh is to secure the future ofchildren and youth and ensure sus-tainable growth.

When asked whether a cut in theCanadian development budget willaffect their aid flow to Bangladesh,she said their international develop-ment assistance will continue.

The CIDA's investments in educa-

tion have helped ensure increasedaccess to quality primary education.In health, CIDA investments inmaternal, newborn and child healthhave contributed to a 40 percentdecline in maternal mortalitybetween 2001 and 2010. Theagency's investments in publicfinancial management are improv-ing the environment for businessdevelopment and employmentopportunities, while strengtheningaccountability and transparency inthe management and use of publicfunds.

“We are supporting a project with

the Office of the Comptroller andAuditor General in Bangladesh toeffectively fulfil its constitutionalmandate to conduct independentaudits and evaluations," Crudensaid.

The scheme also provides reliableand objective information to parlia-ment on the government's financialmanagement, compliance, and per-formance practices, she added.


Courtesy: The Daily StarTuesday, September 25, 2012

Bangladesh seeks growth, more trade

Want an idea of the potential ofCanada's trade with Bangladesh?Look in your closet. Or in aSaskatchewan farmer's field.

They help make each other possible.The labels on your clothes illustratethe huge volume of textiles - shirtsand Tshirts, notably - that the southAsian republic ships to Canada. andthe second will show you some ofwhat Canada sells back to

Bangladesh, which sits betweenIndia and Burma. The latter is alsowhat brought Masud Rahman toSask-Can Pulse Trading's process-ing acility on the east side ofRegina, where sacks of lentils forexport to Bangladesh were beingfilled Friday.

Rahman, President (former) of theCanada-Bangladesh Chamber ofCommerce and Industry, said two

way trade last year hit $1.6 billion,with about $1 billion of that comingfrom Bangladesh, mostly in textiles."We expect this to grow more andmore ... and we would like to see $2billion in trade soon,"

He said in an interview at the near-by office of Sask-Can's parent,Alliance Grain Traders, which lastyear recorded $760 million in salesto 100 countries. Tim Marshall,Alliance's senior director of interna-tional operations, said the tradeimbalance in favour of Bangladeshhad been raising eyebrows inOttawa until Saskatchewn steppedto the fore with steadily rising salesof agricultural products, notablywheat, peas, canola and lentils. Aswell, potash is starting to flow to it.

The Saskatchewan Trade and ExportPartnership figures this provincealone last year sold $229 million inagricultural products to Bangladeshwhich packs about 160 million peo-ple into an area one-quarter the sizeof Saskatchewan.

Masud Rahman


Exclusive Interviews:It's a market important enough thatPremier Brad Wall and a gaggle ofSaskatchewan business people tooka highprofile side trip to Dhaka dur-ing their visit to South Asia in 2011.

Rahman, who visited a potash mineThursday, said he sees "huge poten-tial" for trade growth betweenCanada and his country, which hasbeen picking up China's former mar-kets for textiles as the latter movesinto making electronic products.Marhsall offers an interesting angle

to the idea of two-way trade: on arecent trip to Dhaka, he rose earlyand saw huge numbers of femaleworkers heading every morning forjobs in textile plants. He also notedthat Saskatchewan's trade has risenin lockstep with the Bangladeshitextile industry, as jobs like thesemeant workers' families had moremoney for imported food. Rahmanalso sees Bangladesh, the economyof which recently has been growingat around six or seven per cent annu-ally, to soon move into IT services

like call centres. He'd also like to seeCanadian government agencies orprivate firms invest in improving hiscountry's infrastructure, particularlyelectrical power generation."Bangladesh," he says, "can growlike China."

http://www.leaderpost.com/life/Bangladesh+seeks+growth+more+trade/6968344/story.html#ixzz26nwzF6Jo

Courtesy: The Leader-Post, ReginaSaturday July 21, 2012

Closure of visa office in Dhaka affects business with Canada

Bangladesh needs to take necessarysteps to diversify its export basket toCanadian market. "We have hugepotential in IT, plastic products,pharmaceuticals, bi-cycle, leatherproducts, furniture, ceramics andfootwear in the Canadian marketand we should explore the opportu-nities very quickly," MasudRahman, the outgoing president ofCanada-Bangladesh Chamber ofCommerce and Industry (CanCham)told The FE in an interview recently.He said Bangladesh has alreadygrabbed a good position in export-

ing RMG in the Canadian marketwith a duty-free access to Canadasince 2003. Bangladesh exportedover $1.00 billion products, mostlyRMG in 2011.

"However there is a barrier for busi-ness development between Canadaand Bangladesh having no Canadianvisa office in Bangladesh. The visaoffice is now in the Singapore whichis slowing down the process of busi-ness development,".He said bothway trade between Canada andBangladesh would be $ 2.00 billionat the end of 2012 while in 2011, thebilateral trade was $1.6 billion."Many developed nations now thinkBangladesh could be the nexthotspot for business, provided wecan ensure proper support in power,energy and infrastructure.According to the feedback,Canadian garments buyers are liklyto increase their business inBangladesh. We think garmentsbusiness could be several billiondollars in the next few years," theCanCham founder president assert-ed. He said Canadian province ofSaskatchewan alone sold $229 mil-lion agricultural products to

Bangladesh. Saskatchewan privatesector and government wants toextend business with Bangladeshand stepped up steadily rising insales of agricultural products mainlyin wheat, peas, canola and lentils.

"Moreover recently we are import-ing Potash from Saskatchewan,".Highlighting the huge potentialitiesof closer and better business expan-sion in the areas of informationtechnology (IT) between the twocountries, Mr Masud said thatCanCham is working hard alongwith Bangladesh Association of CallCentre and Outsourcing (BACCO),Bangladesh Association of Softwareand Information Services (BASIS)and GPIT, the first offshoot compa-ny of Grameenphone.

CanCham Bangladesh has strategicpartnership agreements withBACCO, BASIS and GPIT to flour-ish country's IT business at bothhome and abroad.http://www.thefinancialexpress-bd.com/more.php?news_id=144022&date=2012-09-20

Courtesy: The Financial ExpressThursday, September 20 2012

Masud Rahman



High Commissioner of Canada to Bangladesh speaks with the Daily Star on Canada-Bangladesh 40 years of diplomatic ties and bilateral cooperation in various fields

THE Daily Star (TDS): This is the40th year of diplomatic ties betweenBangladesh and Canada. How doyou foresee this relation developingfurther?

Heather Cruden (HC): I am hon-oured to be Canada's HighCommissioner to Bangladesh duringthe 40th anniversary of our bilateralrelationship. Our relationshipincludes development coopera-tion, commercial growth, coop-eration in peace-keeping, sup-port to democratic institutions aswell as the beneficial influenceof the up to 100,000Bangladeshis living in Canada.

To celebrate the 40th anniver-sary, we have been organisingseveral events in collaborationwith local partners throughoutthe year; we want the people ofthis country to be part of thiscelebration.

TDS: What are the priorities youplan to emphasise during yourassignment in this country?

HC: My priorities cover the fullspectrum of our relationship. I hopeour bilateral trade can reach Can$ 2billion. I would also like to see ourtrade relationship balance out as it isheavily weighed in Bangladesh'sfavour now. I am committed toensuring that our development part-nership remains strong and that wecan continue to invest inBangladesh's future by creatingopportunities for children and youthand stimulating sustainable econom-ic growth. I believe Bangladesh canfind a way to hold a free, fair, credi-ble, transparent, and inclusive elec-tion However, it is also important to

continue work towards a function-ing parliament, vibrant civil society,freedom of speech and independentfunctioning institutions. I look for-ward to fostering our relationshipthrough both government-to-gov-ernment and person-to-person rela-tionships and continued partnershipbetween our two nations now and inthe future.

TDS: What are the major develop-ments since Prime Minister SheikhHasina's visit to Canada in May2011?

HC: Canada is committed toCommonwealth renewal and thestrengthening of relationships basedon shared values in theCommonwealth, and we look for-ward to continuing to work withBangladesh to this end. Canada andBangladesh's bilateral trade hasgrown since 2011 helped in part bya successful Canada Showcase exhi-bition held in March 2012.

TDS: Many Bangladeshi immi-grants don't get jobs matching theirqualifications and work experience.What can be done to enhance theiremployability?

HC: The best approach for anypotential immigrants should be toobtain Canadian qualifications.People interested in finding more

about credential recognitionmay visit a government ofCanada website which is set upto assist potential immigrants.

The website address is:www.credentials.gc.ca

TDS: The Canadian develop-ment cooperation budget hasundergone significant cuts. Willthis affect aid to Bangladesh?

HC: I would like to stress thatCanada's Budget 2012 con-firmed that Canada's interna-tional development assistancewill continue.

CIDA will maintain sufficientfunding to reach our develop-ment objectives. CIDA is also

continuing to deliver on ourMuskoka Initiative commitment toimprove the health of mothers andchildren.

I understand that the aid budget forBangladesh this year is expected toremain at current levels.

TDS: What can Canada do to assistBangladesh in technology transferand supporting research by localorganisations?

HC: In 2011, Canada signed fourmemorandums of understandingwith different universities in

H.E. Heather Cruden


Exclusive Interviews:Bangladesh on various researchprojects. For example, one project isspecifically working on pulse cropresearch and development. Anotherproject is dealing with breast cancerresearch in Bagerhat district.

TDS: Why is Canada not sendingback Nur Chowdhury, the convictedkiller of Bangabandhu SheikhMujibur Rahman?

HC: I have to stress that Canadaunderstands Bangladesh's interest inrepatriating individuals convicted ofcrimes under Bangladeshi law.However, Canadian privacy lawsprohibit the discussion of individualcases.

TDS: What are the major achieve-ments of Bangladesh?

HC: Even though Bangladesh con-tinues to face a range of challenges,the country has made importantgains. Population growth rate andthe incidence of poverty havesteadily declined and the grossdomestic product growth rate hasaveraged 6% per year. Considerableprogress has also been made towardachieving the MillenniumDevelopment Goals, notably inhealth and education.

TDS: How can we reduce maternalmortality rate?

HC: On June 25, 2010 under theleadership of Prime MinisterStephen Harper, the leaders of theG-8 nations endorsed the MuskokaInitiative. Canada has committed $1.1 billion in new funding between2010 and 2015 under the Initiative,and will maintain the existing pro-gramme.

In Bangladesh, CIDA currently sup-ports several projects in this sector.For example, the Can$ 19.7 million

Human Resources for HealthProject aims to improve maternaland neonatal health status of poorwomen, girls and boys. This initia-tive provides technical assistance,equipment, and teaching and learn-ing aids to the Ministry of Healthand Family Welfare to improve thequality of education for nurse mid-wives and community skilled birthattendants. It also provides supportto the ministry to rationalise therules for recruiting, posting, promot-ing and training nurse midwives.

TDS: How is Canada working forgood governance in Bangladesh?

HC: This is a really good question.Governance encompasses the val-ues, rules, institutions, and process-es through which people and organ-isations attempt to work towardscommon objectives, make deci-sions, generate authority and legiti-macy, and exercise power.

The recent trend towards democra-cy, a critical element in good gover-nance, has affected nearly everynation. Many countries have madesignificant gains in democratisationand are now working to establishstable and effective institutions,improve public sector management,reform legal and judicial systems,protect human rights, strengthenlocal civil society, and carry outpeace building after armed conflict.Despite this progress, conflict, cor-ruption, lack of respect for humanrights (especially for women), andinadequate public services continueto challenge many countries.

There is a consensus internationallythat the Millennium DevelopmentGoals cannot be reached withoutgood governance, which Canada hasidentified as a cross cutting theme inits development cooperation pro-gramme. CIDA supports its partner

countries' efforts -- includingBangladesh -- to create the condi-tions for secure, equitable develop-ment by promoting good gover-nance.

In Bangladesh, CIDA's assistanceincludes key initiative such asstrengthening Public ExpenditureManagement Program. This is anumbrella reform programmedesigned to enhance efficiency,effectiveness and accountability inthe management and use of publicfunds in order to accelerate theimplementation of national develop-ment priorities leading to greaterpoverty reduction and sustainableeconomic growth in Bangladesh. Itis a five-year programme financedthrough a multi-donor trust fundadministered by the World Bank.

Strengthening Comptrollership andOversight of Public Expenditure:The purpose of this initiative is toincrease the capacity of theComptroller and Auditor General'sOffice in Bangladesh. We are help-ing them to fulfill their constitution-al mandate to conduct independentaudits and evaluations of public sec-tor operations and provide reliableand objective information toParliament on the government'sfinancial management, compliance,and performance practices.

Parliamentary and Media Support:This is a collaborative project whichpromotes democratic governancebased on an effective Parliament,professional media, and effectivecitizenship. The purpose is tostrengthen institutions and processesthat contribute to the free flow ofinformation and allow direct andindirect interaction between citi-zens, elected representatives, andgovernment officials.


Exclusive Interviews:It helps create a framework for pro-moting active citizenship and publicadvocacy for effective and account-able government. In the last generalelection, Canada contributed to theTransparent Ballot Boxes project.The boxes were one of the keydemands of the major political par-ties and general population to ensureacceptance of fair elections.

In addition, through the FairElections and Institutional Reformsproject, CIDA contributed to anenabling environment for a free,fair, and non-violent parliamentaryelection, in collaboration with theAsia Foundation, local civil societypartner organisations (including the34 member Election WorkingGroup, the Bangladesh ElectionCommission, and other bilateralagencies).

TDS: How does the Canadian gov-ernment ensure gender equity in itsprogrammes?

HC: This is a priority for the govern-ment of Canada. For us, genderequality includes promoting theequal participation of women andmen in making decisions; support-ing women and girls so that they canfully exercise their rights; andreducing the gap between women'sand men's access to and control ofresources and the benefits of devel-opment. If equitable and sustainableprogress is to be achieved, women'sstatus must be improved, their rightsmust be respected, and their contri-butions must be recognised.

Gender equality results are system-atically and explicitly integratedacross all CIDA programmes. A keyinitiative in this area in Bangladeshwas the Policy Leadership andAdvocacy for Gender Equality

(PLAGE) project, which strength-ened the institutional frameworkand operational mechanisms thatenhance the gender responsivenessof government policies and pro-grammes, including by "engender-ing" the budget process.

TDS: A large number of students gofor higher education in Canada.Does that make any difference tous?

HC: I think it is very exciting thatCanada is a destination of choice forso many Bangladeshis for highereducation. The ties betweenBangladesh and Canada are alsostrengthened as we increasinglyvisit each other's countries.

Bangladeshi students who havecompleted studies in Canada havebeen exposed to the global economyin a new country, with a differentculture, environment and lifestyle.They are also able to choose from awide variety of programmes offeredby Canadian educational institu-tions. All of this helps these gradu-ates to contribute to the Bangladesheconomy when they return. Whenyouth are exposed to the richness ofthe cultural diversity, both countriesbenefit.

If you want more information, Iwould encourage you to visit theHigh Commission web site:www.bangladesh.gc.ca

TDS: What is your opinion aboutjournalism and freedom of expres-sion in Bangladesh?

HC: I am so glad you asked me thisquestion. Canada values freedom ofexpression, which calls for a robustand independent media. Qualityjournalism has made major contri-

butions to countries around theworld and particularly to the growthof democracy and freedom.Journalists are friends of democra-cy.

For the last five years the HighCommission and the BangladeshCentre for Development, Journalismand Communication jointly organ-ised "Canadian Awards forExcellence in BangladeshJournalism" to recognise profes-sional, high quality reporting. 42journalists from the print, televisionand news agencies have receivedthis award. I am so impressed by thenumber of news outlets -- print,radio or electronic -- that exist inBangladesh.

TDS: Briefly, what impressions ofBangladesh will you take back withyou?

HC: I have been personallyimpressed by how warm and wel-coming Bangladeshis are. For me, ithas been a wonderful posting to dateas it has been very easy to meet andget to know a broad range of peoplewho are passionate about their coun-try and its potential. Bangladeshisare incredibly resilient and despitethe challenges faced I think we allhave great hope for Bangladesh'sfuture. I should also highlight againthat I believe it is a country of enor-mous potential particularly sinceone-third of its population are under25. As we all know, youths are oneof the agents of change. My term is3 years in total and I am very muchlooking forward to the next 2 years.


Courtesy: The Daily StarFriday, November 23, 2012

Documents

B a ngl ad esh c an att ract big in ve stme nt · M ar ch 2013 B a ngl ad esh c an att ract big in ve stme nt S ee page 7-8 K. M. Kh a le d e le cte d Pr esid ent of CanC ham S ee