Bangladesh’s consumers’ price index (CPI) inflation rose to 9.06 percent in February 2010, up from 8.99 percent of the previous month,
The rate of inflation went up by 0.07 percentage point in February, over that of the previous month, mainly because of the increase in prices of food items.

“The inflationary pressures on economy has slightly gone up during the period due mainly to the increase in prices of food items in the local market as well as in the global markets,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told gurumia in Dhaka.

The official also said the existing upward trend of inflation might continue in the third quarters but it particularly in food inflationary pressure would decline in the fourth quarters of the current fiscal year due to arrival of new ?Boro? rice crop along with the government?s market intervention.

Food price inflation rose to 10.93 percent in February from 10.56 percent in January this year on the point-to-point basis due mainly to raise the prices of essential items including rice and sugar during the period.

Despite good domestic output of the ?Aman? rice crop, a recent surge in domestic prices of essential commodities including rice, sugar, edible oil, pulses, onion, garlic and vegetables is the reason for higher inflation during the period under review, the central bank officials said.

The inflation rate moved up to 5.95 percent in February from 5.67 percent of the previous month on the annual average basis, according to the state-run Bangladesh Bureau of Statistics (BBS) data, released on Monday.

The central bank in its latest monetary policy projected a further rise in the country’s CPI inflation on a point-to-point basis in the coming months. However, it expressed hope that the 12-month average CPI would be within a 6.5 percent range by the end of the fiscal year 2009-10, as earlier projected by the BB

…BAck Story:(February2010)
Bangladesh’s consumers’ price index (CPI) inflation rose to 7.24 percent on the point-to-point basis in November 2009, up?from 6.71 percent of the previous month, officials told AHN Media on Tuesday.

The rate of inflation went up by 0.53 percentage point in November, over that of the previous month,?mainly because of the increase in prices of both food and non-food items.

And?that marked an upward trend since the inflation rate moved up to 5.21 percent in November 2009 from 5.11 percent in the previous month on annual average basis, they added.

Food prices rose by 7.84 percent in November from 7.78 percent in October 2009 while non-food items’ prices rose by 6.44 percent from 5.07 percent, the Bangladesh Bureau of Statistics (BBS) said.

“The inflationary pressures on [the] economy has slightly gone up during the period due mainly to the increase in prices of food and non-food items in the local market as well as in the global markets,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told AHN in Dhaka.

He also said the existing upward trend of inflation might continue in the near future because of the?recovery of major economies from the global meltdown with a rising trend of prices of commodities in the international market that would also?push inflationary expectations in the country.

The central bank of Bangladesh in its monetary policy projected a further rise in the country’s CPI inflation on a point-to-point basis in the coming months of the fiscal 2009-10 (FY10). However, it expressed the hope that the 12-month average CPI would be within the budgetary target by the end of FY10.

Food and non-food commodity prices in the global market have firmed up with an up-trend in many cases, according to a report by the?monetary policy, released on Jan. 19. That is why the domestic prices of food grains are holding firm even in the harvesting seasons, it added.

Accordingly, the 12-month average CPI inflation instead of declining is expected to?creep up in the second half of this fiscal year. But it is expected to remain within a?6.5 percent range by the end of FY10, as earlier projected by the central bank of Bangladesh.

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Source :The UK will press world leaders to agree to an ambitious action plan to get the Millennium Development Goals back on track for 2015. The plan is to target six countries?including Bangladesh?which are home to half of all undernourished children in the world.

International development secretary Douglas Alexander launched the new strategy at a conference in London on Friday.

The meeting took place ahead of the publication of an international assessment of what is needed to achieve the MDGs of the UNDP. The report is expected to lay out in stark terms the areas where progress has been weak and set out concrete action to achieve the goals by 2015.

The conference organised by the Department for International Development is aimed at tackling the most off-track MDGs ? agreed in 2000 – including hunger and nutrition, maternal and child mortality and education. It is estimated that up to two-thirds of countries could fail to meet these crucial targets.

Alexander used the gathering of development experts to put forward a number of bold proposals that will be incorporated into the international negotiations ahead of a key UN summit in September.

“There has been some real progress towards the Millennium Development Goals but we must accelerate progress if we are to realise them by 2015″, Alexander told the conference.

“Business as usual is not enough. We need leaders from all countries around the table to endorse a global action plan which will benefit hundreds of millions of people in the developing world.

“We are now just five years from meeting the MDGs ? it’s not too late but time is short”.

“I firmly believe there is more the international community can do and that is why I am using today’s conference to identify how best we can work together to get the goals back on track.”

He proposed doubling of aid for basic education and health services for mothers and children. He also underlined Britain’s commitment to playing its part to achieve the goals with funding for new vaccines that will protect children from pneumonia and diarrhoea in over 40 countries, saving 800,000 lives over the next five years.

The new strategy will address the devastating impact that malnutrition has on life-expectancy, health and long-term productivity, and will have a direct impact on the life chances of 12 million children by 2015.

Under the new strategy, efforts will be focused on Bangladesh, Ethiopia, India, Nepal, Nigeria and Zimbabwe. Each country will draft an action plan to address the particular challenges of local conditions. The efforts will first focus on India, a country which is home to 40 percent of the world’s malnourished children.

DFID will invest an additional ?110 million over the next five years in the states of Madhya Pradesh and Orissa, where every second child is underweight. The plan will set out how to save two million children from malnutrition.

Douglas Alexander said at the conference that the UN Summit in September must be used as a turning point towards achieving the MDGs.

This conference will set out proposals for:
-International partners to double aid for basic education in low-income countries from $3 billion to $6 billion per year;

? a global programme to tackle malnutrition;

? the global community to increase levels of aid to fragile countries from the current 30 percent to 50 percent by 2015; and,

? a doubling of global aid for maternal, newborn and child health from $4 billion to $8 billion per year.

Alexander said that the UK would continue to identify new and innovative programmes that would maximise aid efforts.

He announced a package of measures to help developing countries tackle issues such as immunisation, climate change, lack of access to financial services, malnutrition and maternal health:

The package includes:

? New vaccines against pneumococcus in 42 countries and a vaccine against rotavirus in 44 countries, potentially saving 800,000 children’s lives by 2015 from the biggest child killers ? pneumonia and diarrhoea. An amount of ?150 million would go to the GAVI Alliance (formally the Global Alliance for Vaccines and Immunisation) for the purpose.

? To fight global malnutrition, a new strategy will target 12 million undernourished children, whose lives would otherwise be blighted by physical stunting, reduced mental ability, and poorer prospects in education and employment. Measures to swiftly address malnutrition will include vitamin and mineral supplements for pregnant women and infants; promotion of breast feeding for newborns; providing zinc to combat the effects of diarrhoea and promoting better hygiene.

? A push for more free healthcare in the developing world, by providing financial support and expert advice to help countries to deliver free healthcare for women through a new (?5m) Centre for Progressive Health Financing. Through UK support, Sierra Leone will launch free health care next month.

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In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money ? a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.
Inflation can have many effects that can simultaneously have positive and negative effects on an economy. Negative effects of inflation include a decrease in the real value of money and other monetary items over time; uncertainty about future inflation may discourage investment and saving, or may lead to reductions in investment of productive capital and increase savings in non-producing assets. e.g. selling stocks and buying gold. This can reduce overall economic productivity rates, as the capital required to retool companies becomes more elusive or expensive. High inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Positive effects include a mitigation of economic recessions,] and debt relief by reducing the real level of debt.
Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to growth in the money supply. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.
Today, most mainstream economists favor a low steady rate of inflation. Low (as opposed to zero or negative) inflation may reduce
As price indices largely remained high, Finance Minister AMA Muhith Thursday said that inflation is one of the major concerns for the government in the ongoing fiscal year. Belying government projection that the overall inflation rate would not cross 6.5 percent in the current fiscal, the overall inflation on a point-to-point basis in December last year shot up to 8.51 percent.

In the urban areas food inflation climbed a double-digit high after 14 months, mainly on account of rising price of rice. The inflation rate was 7.24 percent last November.

“The progress on the PPP (Public-Private Partnership) is less, inflation is a major concern. We will have to be aware of inflation,” he told reporters after a delegation of Dhaka Chamber of Commerce and Industry (DDCI), led by its president Abul Kasem Khan, called on him at his ministry office.

Notwithstanding his concern over inflation, the Finance Minister was optimistic about the investment situation in the country. “Domestic investment is now high and the trend of export order is also good,” he said about the balancing factors that could spur economic growth and job creation to cushion the pressure of inflation.

Muhith termed the budget-implementation performance of his government in the current fiscal year “best in the history of the country”.

Answering to a question, the Finance Minister said that he would place the statement on the half-yearly budget-implementation performance in parliament on March 16. He was earlier scheduled to place the budget review on March 9.

“The trend of revenue collection and revenue expenditure, the trend of development expenditure, trend of import-export, revenue, overall macroeconomic performance will be highlighted,” he added.

After placing the review, they would be able to project where they would be able to go in the last three months of the current fiscal.

Asked about the Asian Development Bank’s recent projection that GDP growth could slip to 5.5 percent from 5.9 percent in fiscal 2009- 10, he declined to make any specific comment. “I don’t want to make any comment. We have earlier said that the GDP growth will be six percent and I will mention this while making the budget review in parliament.”

The custodian of government exchequer, however, observed that the domestic demand is very good and the prospect of agriculture is also bright as there has been a bumper production of aman paddy.

“People are moving towards investment. Indicators are all good and the price of petrol and edible oils didn’t skyrocket,” he said.

According to the ADB, the industrial sector continued to be affected by power and gas shortages. Subdued trade, transport, and real-estate activities affected the performance of the services sector during the same period.

The donor agency’s prediction is based on appraisal of the country’s economic performance up to December 2009-halfway through the fiscal year.

About the demands placed by the DCCI delegation, Muhith said there should be diversified use of jute like in pulp industry.

He also said that the DCCI would raise their proposal about income-tax card.

The Finance Minister also said that the government would look into the allegation raised by the DCCI that there is no guideline or motivation for the investors to enter the market.

Regarding the complexities in submission of income tax under self- assessment system, he said, “We don’t want to give opportunity to whiten black money, but those who want to make investment must get equal opportunity.”

Responding to their request, he also emphasized the need for collecting more taxes instead of giving tax concessions.

Muhith also assured the DCC delegation of considering their suggestion that the customs remain open round the clock to facilitate trade between Bangladesh and India.

During the meeting, the chamber leaders apprised the Finance Minister of the slow pace of investment mainly due to present energy and power crises, delay in finalization of the PPP guidelines for fast-pace implementation of projects under the PPP model, especially for infrastructure, finalization of the national coal policy as a long-term strategy for the country’s economic development

They also vented concern about the discretionary powers of NBR officials as the revenue board declared that 22 categories of files of both individuals and companies under universal self-assessment system will be examined by the tax officials, which may cause unnecessary harassment to taxpayers.

The chamber proposed implementation of a new concept introducing ‘Tax Card System’ providing direct incentives and services to taxpayers in the country, promoting the diversified use of jute, particularly pulp and paper making as Bangladesh has the potential to become a major pulp and paper producer from green jute.

Measures

Annual inflation rates in the United States from 1666 to 2004.

Inflation is usually estimated by calculating the inflation rate of a price index, usually the Consumer Price Index.The Consumer Price Index measures prices of a selection of goods and services purchased by a “typical consumer”.The inflation rate is the percentage rate of change of a price index over time.

For instance, in January 2007, the U.S. Consumer Price Index was 202.416, and in January 2008 it was 211.080. The formula for calculating the annual percentage rate inflation in the CPI over the course of 2007 is

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Dhaka Elevated Expressway is going to be practicale!!! through receiving the proposal from local and foreign companies Dhaka Elevated Expressway project is blooming to reality soon.

Ministry of Communications of Present govment initiated Dhaka Elevated Expressway of 32km . Through cabinet meeting held 17 june 2009 passed the proposal of the project considering as Public Private Partnership (PPP) project. in the mean time the ministry took all the prework to develop the project in reality.

In part of this project development 20-21 ?November 2009 published through newspaper for Pre-qualification Statement from the interested parties to submit proposal . As per decision 1st called last date was marked till 22 February2010 next it was marked till 4 th March 2010.

Today till 4th March 2010,? 9 companies have submitted their proposal .Companies are :

????????? Soma Enterprise Ltd. (India), Sino-Global (USA), AR Track Hawai Rocket Rahmat (Bangladesh), Italian-Thai Development Public Coampany Ltd., (Italy-Thailand), Sikder Real Estate-KCC JV Consortium (Korea-Bangladesh), Gammon Infrastruture Projects Ltd-Bouygus Travaux Publics SA Consortium (India-France), BPHB-BCC JV (Malaysia-Bangladesh),M/S. Simplex Infrastructures Ltd ,M/S. Sri Infrastructure Finance Ltd (India) , China Railway International Ltd., (China)

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Eart quake is a massive distructive natural disaster. japan faces the nature for long time with tecnical upgradation of earth quake registance tecnology. Source
The Japanese government will actively consider providing financial support to Bangladesh for retrofitting its all public buildings with seismic resistance, as the country is under immense thereat of devastating tremor.

“We will soon transfer our retrofitting technology to local engineers by retrofitting some public buildings here on pilot basis,” Project Formulation Officer of Disaster Mitigation and Climate Change wing of Japan International Cooperation Agency (Jica) Hideki Katayama told BSS.

After the pilot project, Katayama said, Jica can consider formulating a project to provide financial support for re-strengthening all important public buildings, if the Bangladesh government shows their interest in this regard.

Retrofitting is such a kind of technique, which is applied to a building as an extra protection with additional support of by wall or steel.

Katayama said all important buildings in Japan, one of the most tremor-prone countries in the world, are retrofitted, a modification technique of existing structures to make them more resistant to seismic activity, ground motion or soil failure due to earthquakes.

Bangladesh must take prompt steps to re-strengthen its important public buildings, including hospitals, fire stations and schools with seismic resistance, he said.

Jica Disaster Management and Climate Change Programme officer M Anisuzzaman Chowdhury said a memorandum of understanding (MoU) has already been signed between Jica and Public Works Department to transfer the technology.

A Jica expert team will be deployed here soon to retrofit one building of secretariat and Dhaka Medical College Hospital building on pilot basis, he said.

“During the pilot programme, the Japanese experts will provide theoretical and practical training to the local engineers about the technique,” he said.

Bangladesh Earthquake Society President Prof Jamilur Reza Choudhury told BSS that the government needs to ensure strict implementation of building codes as well as identify and retrofit the vulnerable buildings.

“The government should retrofit all public buildings as soon as possible and can offer soft loan to the people to retrofit their old buildings,” he said.

Prof Jamilur Reza also said an earthquake preparedness master plan must be prepared for the cities and towns of Dhaka, Chittagong, Sylhet, Mymensingh and Rangpur districts, as about 100 million people of this areas are living under huge threat of devastating tremor.

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To develop the trasportation infrustucture .Prime Minister Sheikh Hasina yesterday in parliament unveiled her government’s massive plans to develop and modernise all sea, river and land ports of the country in addition to setting up a deep-sea port to boost Bangladesh’s economy.

She said Chittagong and Mongla ports will be prepared for the use of neighbouring countries by implementing various plans including construction of new container terminal, purchasing modern equipment for the two ports and carrying out capital dredging from Sadarghat to the third Karnaphuli Bridge.

The government also plans to construct new river ports at Noapara, Bhairab-Ashuganj and Barguna and a new inland container terminal at Pangaon. Besides, land ports at Teknaf, Hili, Banglabandha and Bibirbazar will be made operative after development work, Hasina said in her scripted answer to a query.

“Only 40 percent capacity of Chittagong port and 10 percent of Mongla port is being currently used. Revenue earning will be more than double when the usage is increased,” she said, adding that the earning will be increased further when neighbouring countries will be allowed to use the two seaports. This will also generate new employment opportunities.

On setting up a deep-sea port at Sonadia Island, Hasina said in light of a cabinet decision work is on to prepare detailed design of the port and explore foreign fund.

The premier said her government plans to introduce computerised container terminal management system at Chittagong Port, construct backward linkage at terminals 4 and 5 at New Mooring container terminal, appoint private global operator for running the terminal.

She said two vessels, one for oily waste reception and another for solid waste, will be purchased to improve environment management of Chittagong Port.

“Radiation detection equipment will be installed at Chittagong Port under the US Megaports Initiative to prevent smuggling of nuclear and radioactive goods through global maritime system,” the premier said.

The Karnaphuli container terminal will be constructed replacing expired jetties 11-13 at Chittagong Port. A multi-storey car-parking shed will be built at the port, she said.

Hasina said the government has planned for bank protection and capital dredging from Sadarghat to the third Karanphuli Bridge to protect important establishments at Chittagong Port from possible risk, and ensure discipline berthing of ships and navigability in Karanphuli channel.

On the development of Mongla Port, Hasina said her government plans to collect cargo handling equipment, cutter suction dredger, dispatch boat, and carry out dredging at outer bar of the Pashur channel and harbour area of the port.

She said activities of Benapole land port will be brought under automation to bring dynamism and transparency in its functions. The port will also have its own cargo handling equipment. Besides, a project to modernise the port will be implemented in two phases, she said.

The premier said Bhomra land port and Barisal river port will also be developed.

Besides, railway network will be set up across the country as well as the network from Dhaka to Cox’s Bazar will be expanded.

Hasina said the number of lanes on Dhaka-Chittagong Highway will be increased to six in phases as the process for upgrading the highway into a four-lane one has begu

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Bangladesh is a contry which is full of natural wealth ,only need to develop the infrustucture .

The Bangladesh Government is seeking international bids for a number of big-ticket infrastructure projects, which could collectively be valued at around $8 to $10 billion.

These include an eight-lane express highway between Dhaka, the country’s political capital, and Chittagong ? the commercial capital and the main trade gateway.

“This could be worth anywhere from $3 billion to $4 billion,” Abul Maal Abdul Muhith, Bangladesh’s Fin-ance Minister told Gulf News in an interview.

Besides, tenders for a large deep-sea port will be invited soon, which could help the economies of India’s seven landlocked states and the two Himalayan states of Nepal and Bhutan.

“But, we have made substantial progress in finalizing the plans to build the largest bridge ? over the river Padma,” he said. “This could cost potentially $2.6 to $2.8 billion. Bids will be invited in a few months.”

The deep-sea port project will be carried out in two phases with the first having seven jetties and the second phase could see nine. This would be the South Asian country’s first sea port, although Chittagong and Mongla ports serve as gateways to its economy.

Dubai’s DP World has expressed an interest in Chittagong Port and subsequent development of the sea port.

Muhith welcomed their intention.

“We welcome bids by the UAE companies. These will be international competitive bids and we will choose the winner on the basis of the merits and pricing.

The country is also fin-alising a public-private partnership for physical infrastructure projects, where foreign developers and contractors could build, operate and transfer roads, highways, bridges, etc. The government could allow them to collect tolls that will help these investors get solid returns.

Power and energy

In addition to this, Bangladesh is seeking massive investment in energy and power sector. The entire country has been divided into 22 energy blocks for exploration of oil and gas.

Bangladesh is known to be gas-rich and power-hungry as it requires massive power supply for economic growth.

Muhith, a long-time bureaucrat and economist-turned-politician, is spearheading the country’s economic growth engine that had remained stagnant for some time.

His government came to power last January with a massive mandate, winning 263 seats in a 300-member legislature with a promise to deliver 3,000 to 4,000 megawatts of power.

“We have already added 900 MW power to the national grid so far,” he said.

“We sought bids for additional 900 megawatt power on rental. However, we have received bids four times higher. Once the pricing is finalized, we could award tenders and the country could see additional 700 MW added to the grid.

Tenders

“However, in 2010-11, we are going to float tenders for large power plants ? 350 to 500 MW each to raise power output by a few thousand megawatts by 2014,” he said.

“The Bangladesh economy is looking up as we have managed to reduce the impact of the global economic crisis by supporting the local agricultural sector through subsidies and by offering agricultural inputs at a cheaper price and in time to the farmers. As a result, the country has witnessed bumper crops during the first two production seasons.”

As the economic prospects look up, so are investment prospects in the country, he said.

Muhith earlier tabled a record budget with the highest domestic investment in the country’s 38-year history that has been greeted by economists as ambitious.

The government has already spent 10 per cent of the annual development programme in four months or 22 per cent of the country’s revenue – to spur domestic consumption and growth ? a move that could see an upturn in economy.

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Goverment has initiated to raise fund with Development Vision

The Bangladesh government will issue $500 million worth of bonds for sale to residents and to non-resident Bangladeshis to help pay for the construction of a $1.9 billion bridge, a senior official said on Tuesday.

The bonds would be issued in taka to buyers in Bangladesh and in dollars to non-resident Bangladeshis, the official said.

The World Bank, Asian Development Bank and Jeddah-based Islamic Development Bank are the major financiers for the 6.15 kilometers (3.84 miles) bridge on the River Padma, south of Dhaka.

“As the cost of the bridge rose 46 percent to $1.9 billion, the deficit will be met by issuing government bonds,” said Musharraf Hussain Bhuiyan, secretary of the finance ministry’s economic relations division.

Nearly 6 million non-resident nationals provide the country’s second-biggest source of foreign exchange income. They sent home about $10 billion in the last fiscal year to end June 2009.

The construction of the bridge will start at the beginning of next year and take four years to complete, the official said.

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