The government is considering a special package for the SME sector

bangladesh-commerce-ministerDetermining the economy growth govt innitiating to develop SME .

The government considers a further cut in bank interest rates, especially for small and medium enterprises (SMEs) to help the sector grow faster, said the commerce minister yesterday.

?We have already brought down the interest rate to support the country’s entrepreneurs. We are considering reducing the rate further to help different sectors, especially the SMEs, grow faster,? said Faruk Khan.

?The government is also considering a special package for the SME sector in the next budget for fiscal 2009-10,? he added.

He was speaking at the inaugural ceremony of the fourth SME fair organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Bangladesh-China Friendship Conference Centre in Dhaka.

The government fixed the ceiling of the bank interest rate at up to 13 percent in April.

?We are hopeful of reducing the rate soon. We are discussing the rate cut at several levels in the government to help new entrepreneurs source capital at a lower interest rate and start a new venture,? the minister added.

He said the government is working to ensure capital sourcing at lower interest rate for SME sector and help improve its infrastructure further.

?We have to develop our local industries and boost domestic economy to fight the affects of the global financial meltdown. So, developing sectors including SME are very important to us,? he added.

?The government is prioritising the SME sector in the industrial policy that we are framing now. Simultaneously, we will take necessary measures to ensure market for locally produced goods,? said Khan.

He said the SME sector plays an important role in export and employment generation, as the country’s 98 percent enterprises fall in SME category, and so the government is giving an extra attention to the sector.

FBCCI President Annisul Huq urged the government to implement the federation proposals through the upcoming budget.

?We want to see the implementation of our proposals in the budget. Increasing number of loan defaulters indicates that the impact of global financial meltdown has already started hitting Bangladesh. So, the budget should have a specific solution to this,? he said.

Huq said the government should pay special attention to the SME sector, as it is the key component of vibrant economy of the country.

The FBCCI chief said the government should give necessary support for the growth of internal economy and the budget should have a reflection of ?our proposals.?

?We’re going through a tough time because of global recession,? he said, urging the government to cut duty on import of raw materials for the SME sector.

?The sector has a great potential and the government needs to nourish it further,? he said.

?Although the local entrepreneurs have the ability to produce international standard products, they fail to introduce their products to domestic and global markets due to absence of proper campaign,? said the FBCCI chief.

?A lack of funding, high interest rate, erratic power supply and unavailability of raw materials hold back the growth of the sector,? he added.

He also identified reluctance of the private banks to give loans to SMEs as a major barrier to flourishing the sector.

A total of 86 local companies are displaying their products at 108 stalls at the four-day show that will remain open to visitors from 10am to 8pm with a Tk 10 entry fee.

The products on display include textile, frozen foods, leather and leather goods, plastic products, surgical equipment, medical machinery, sanitary products, agro-based machinery, bicycle, ceramic and melamine products, software, cosmetics, furniture and jewellery.

Khalil Bin Abdullah Bin Mohammad Al-Khonji, chairman of Oman Chamber of Commerce and Industry, and Abul Kashem Ahmed, first vice president of FBCCI, were also present at the ceremony.

Turkish interest on investing in Bangladesh

The international relation between Bangladesh and Turkey is going to gear up,

Turkish businessmen have shown an interest in investing $1-2 billion USD to setup an export processing zone (EPZ) in Bangladesh.

A three-member business delegation of Turkey-Bangladesh Chamber of Commerce and Industry, led by its President Fikret Cicek, conveyed the Turkish interest at a meeting with Commerce Minister Faruk Khan at his office in Dhaka on Sunday.

The commerce minister proposed the delegation to think about setting up a special Turkish industrial zone outside capital, Dhaka.

He also assured the delegation of all necessary support from Bangladesh government to implement the special industrial zone.

The meeting was informed about bumper production of pulses in Turkey and the possibilities of its import to Bangladesh, an official press statement said.

Explore Cox,s Bazar Tourism Opportunity.

jhau-bonkolatoli-road-coxs-bazarl-at-coxs-bazarhotel-at-coxs-bazarb
afford-hotel-at-coxs-bazar?Last week i visited Cox,s Bazar to see the possibility of development of tourism infrustucture!

Yes i get this?, as an ultimate opportunity option to develop which can role as a vital economy development of Bangladesh.a

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Minister for civil aviation and tourism G M Qader? said, the government is going to set up a ‘tourism development authority’ to replace the existing Parjatan Development Corporation.
Speaking as the chief guest at a seminar at Dhaka Chamber of Commerce and Industry (DCCI), he said, the government is reformulating the existing tourism policies and going to set up a ‘master plan’ to develop Cox’s Bazar as an attractive tourist hub.
He said, once the tourism development authority would be in place, the Parjatan Corporation of Bangladesh would be abolished.? The government would also set up a tourism board comprising stakeholders such as representatives of hotel, motels tour operator agencies to promote the industry and develop new infrastructure and other facilities to serve the tourists.
The seminar titled as ‘development and potentials of tourism industry in Bangladesh’ was jointly organised by DCCI and Association of Travel Agents of Bangladesh (ATAB) at the conference room of the chamber. Prof Ashraful Islam Chowdhury of the department of marketing and founder chairman of department of tourism and hospitality presented the keynote paper in the seminar.
DCCI president Zafar Osman was in the chair. ATAB President of Muhaimin Saleh and other directors of the chamber took part in the discussion.
The minister said, the government is taking a new look to all aspects to develop the industry by restructuring existing facilities and adding new dimensions to it.
As part of it, he said, policies are being reviewed. Biman is going under restructuring and work is going on to make it tourism supportive carrier although more time would be required to promote the services like other regional carriers offering lucrative packages.
Qader said, his ministry has already asked district deputy commissioners to identify tourist spots within the district and provide particulars about them to the ministry.
He said, the government would hand over responsibility to local government authorities where such spots may be promoted locally. The national authorities may take up bigger projects. Referring to government seriousness to promote tourism not only in cities and urban centers but also in rural areas such as eco- tourism, he said, the forthcoming budget may allow investment of ‘unaccounted money’ in this sector without questioning about sources.
Qader said, it may not be possible to create a whole lot of tourist infrastructure in the country in public sector. So the government is planning to pass more of the activities in the private sector under a supportive policy regime.
He said, the government is having many proposals from foreign investors aimed at developing exclusive tourists spots and hotels with all modern facilities.

3G- 3rd Generation service in Bangladesh

3gEricsson (ERICb.ST), the world’s biggest mobile network maker, called on Bangladesh on Wednesday to issue 3G licences so operators can launch mobile broadband services there.

Mobile broadband services, which require the licensing of the 2100 MHz spectrum band for third-generation (3G) services, would give many more people access to the Internet as Bangladesh has a high number of mobile phones and comparatively few fixed lines.

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“If the government releases appropriate spectrum for 3G, which is the proven global mainstream for the mobile broadband, then we are confident that it will contribute significantly to the country’s GDP (gross domestic prodcut) growth,” Arun Bansal, managing director of the Ericsson Bangladesh, told a news confrence.

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The mobile phone sector contributed 6.2 percent of Bangladesh’s GDP in 2007. Research firm Deloitte & Touche have estimated that mobile communication has raised GDP growth in Bangladesh by 0.12 percent for each 1 percent increase in penetration.

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“It is estimated that there are over 6 million mobile internet users and already today 15 percent of the mobile handsets used in Bangladesh market are 3G enabled,” Bansal said.

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Bangladesh’s mobile sector has grown rapidly, with the number of users reaching around 46 million at the end of March from 200,000 in 2001, compared with only 1.37 million fixed-line phones.

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Analysts have predicted that by 2011 the number of mobile subscribers could top 70 million, which is nearly half the country’s population.

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There are six cellphone carriers in Bangladesh, of which five are foreign operators. Grameenphone, controlled by Norway’s Telenor (TEL.OL) leads the market with 21 million subscribers followed by Egyptian Orascom Telecom’s (ORTE.CA) Banglalink.

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Although nearly half of the country’s population is still below the poverty line, the country has been one of the world’s fastest growing cellular markets.

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Telecom analysts have said that the 3G broadband services would enable people to get easy access to information on health, education, agriculture and job opportunities

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About 3?G

3G is the third generation of telecommunication hardware standards and general technology for mobile networking, superseding 2.5G. It is based on the International Telecommunication Union (ITU) family of standards under the IMT-2000.[1]

3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. Services include wide-area wireless voice telephone, video calls, and broadband wireless data, all in a mobile environment. Additional features also include HSPA data transmission capabilities able to deliver data rates up to 14.4 Mbit/s on the downlink and 5.8 Mbit/s on the uplink.

Unlike IEEE 802.11 networks, which are commonly called Wi-Fi or WLAN networks, 3G networks are wide-area cellular telephone networks that evolved to incorporate high-speed Internet access and video telephony. IEEE 802.11 networks are short range, high-bandwidth networks primarily developed for data