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Volume 2  Issue 173  Thursday  November 29 2001

 
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Webbangladesh Business News
Webbangladesh>>Wbd News>>Business News


Mosharraf tells New Nation
Expert's bodies to assess gas reserve, export prospect

The government is likely to announce the formation of two separate committees of experts this week with a view to assessing the natural gas reserve available in the country as well as the financial viability of exporting gas to India. This was disclosed by State Minister for Energy and Mineral Resources AKM Mosharraf Hossain while talking to this correspondent on Monday.Any future decision by the present government to export gas to India would depend on the outcome of the study by these two committees. The State Minister said his ministry was going to constitute the committees, comprising local experts within the next two to three days.

Both the committees--one on technical aspects of gas reserve and the other on financial feasibility of exporting gas--will be formed with the local experts who are "acceptable to all," he said, without elaborating.Mosharraf Hossain said the technical committee would be constituted with experts, mainly from the Bangladesh University of Engineering and Technology (BUET) which will evaluate the actual reserve position of gas as well as its demand and supply situation while the financial committee would comprise the leading economists of the country to determine how to get maximum economic return by utilising the gas resources.

"We have already finalised the list of experts to constitute these two committees....now we are talking with experts who will lead these two committees," he said. "If the experts accept our proposals, we will formally announce the formation of the committees."Replying to a query, the State Minister said the government was expecting that both the committees would submit their reports within the next two months. "We will decide to export gas if the committees find that the country has surplus gas reserve after meeting the domestic requirements," he said.

After receiving the reports, the State Minister said the government will hold a national-level dialogue inviting all concerned, including politicians, academics and experts. "Then the issue will be raised at the parliament for debate, and on the basis of the discussion, the government will decide whether the country will export gas to India or not," he said. However, Mosharraf Hossain declined to disclose the names of experts of the committees or who were going to lead these committees.

More Business News

30 pc drop in order for RMG
4 lakh workers jobless, 1237 factories closed

Orders for ready-made garments, country's principal source of foreign exchange earning, dropped by about 30 percent in over two and a half months since the September 11 tragedy in America followed by US economic recession, according to a highly placed BGMEA source.The plummeting situation forced closure of 1237 garment factories all over the country so far throwing over four lakh skilled and semi-skilled workers, eighty percent of whom are female ranging in age group between 16 and 35 years, out of employment, the source said.

Bangladesh continue to pursue US authorities for duty and quota free entry of ready-made garments since long back, particularly soon after the previous Clinton Administration allowed 72 sub-Saharan, African and Caribbean countries duty and quota free access of their commodities including garments under contracts like TDA - 2000, NAFTA, SSA, CBI, etc. to US markets. The facility has thrown Bangladesh into an uneven competition shrinking its garments market in USA.

BGMEA fears unless corrective steps were taken right now Bangladesh market for readymade apparels would continue to shrink.BGMEA second Vice-President Qazi Moniruzzaman told the New Nation because of current economic turmoil followed by international events, orders for non-quota items from US buyers declined drastically forcing manufacturers and exporters to close their units and declaring lay-offs.

Asked about the fate of the jobless workers and their possible rehabilitation, Mr Moniruzzaman said BRAC, one of the leading NGOs, has undertaken a programme for imparting training to jobless garment workers in accordance with their respective qualifications and experiences. BRAC has recently issued a circular urging workers for enlistment of their names with it. Further details about their rehabilitation were not immediately known, he said.The present government soon after taking over responsibility prioritised readymade garment export issue with the US authorities.

Former Foreign Minister AQM Badruddoza Chowdhury, now President of the country, visited the United States leading a delegation and held talks with US officials seeking quota and duty free of ready-made garments to US markets. His visit was followed by recent tour of Commerce Minister Amir Khashru Mahmoud leading a delegation comprising government officials and private sector representatives.Mr Moniruzzman is skeptical about US positive response towards Bangladesh request for duty and quota free access of apparels to US markets.

About the complicity regarding implementation of SAARC cumulation as proposed by the European Union (EU), Mr Moniruzzman said manufacturers and exporters have been facing great difficulty in the strict adherence to rules of origin, particularly from economic point of view. In fact, 51 per cent value retention by Bangladeshi exporters as proposed in the SAARC cumulation to avail duty free access to EU would not be possible since the manufacturers largely depend on the import of 82 percent fabrics under back to back L/c, he said.

Local textile industries which can only meet 18 percent demand strongly oppose implementation of SAARC cumulation, it is learnt.He further said the BGMEA has urged EU for relaxation of rules of origin since value retention by exporters cannot be more than 20 to 28 percent under existing scenario.

More Business News

Bangla-Pak talk to expand economic ties

The government is likely to hold trade talks with Pakistan at the ministerial levels with the objective of exploring expanded economic relations between the two countries in the backdrop of widening trade gap unfavourable to the country. The Pakistani Commerce Minister has already expressed their willingness to visit Dhaka and open trade talks with his counterpart at the end of January next year, according to sources close to Commerce Ministry.The trade gap with Pakistan was around Tk 342 crore in the last financial year marking increase from about Tk 259 crore in the previous year. The trade gap with Pakistan was about Tk 161 crore in the financial year of 1996-97, sources confirmed.

They said, the policy makers in the government are interested in exploring the possibilities of the free entrance facility provided to Pakistan by the European and other developed countries through enhancing trade relations with Pakistan. The country might reap benefits if trade relations could be established with Pakistan strategically to achieve the objectives. The Pakistani side has already pointed to the potentials of utilising the free entrance facility for mutual benefits of the two countries, sources hinted.

They further said, the agreement for economic relations between the two countries was first signed in 1996 and it was a three-year agreement. They provision of the agreement commanded that it would be automatically expanded for three years after its expiry if there were no changes in the terms and conditions of the agreement. As such, the last renewal date passed in last May.Sources said, the proposed talks between the commerce ministers of the two countries call for the renewal of the agreement with changes in the contents and adding provisions for exploring new trade benefits. Preparatory works in the context are going on, they added.

More Business News

AL govt leaves fragile economy, says Mannan

LGRD minister and BNP secretary general Abdul Mannan Bhuiyan on Monday alleged that before departing from the state power Awami League government had left highly fragile economy, chaotic law and order situation and broken chain of command in the administration.

"Country's economic situation during the departure of Awami League from the state power was so poor that the government even had to borrow from the banks to pay salaries of the civil servants. The state of the foreign currency reserve was so low that the new BNP government is facing strong turbulence as it is trying to normalise the situation," the minister said while addressing a discussion organised to observe the 5th death anniversary of founder of Bangladesh Jatiyatabadi Sramik Dal (JSD) Iskandar Ali at BCIC auditorium in Dhaka.

The discussion was addressed, among others, by Housing and Public Works Minister Mirja Abbas, Fisheries and Livestock Minister Sadek Hossain Khoka, president of Jatiya Sramik Party Shah Mohammad Abu Jafar and JSD leader Nazrul Islam Khan while labour leader Abul Kashem Chowdhury was in the chair.Mannan Bhuiyan said Awami League wrongly claims that they had left a "robust economy" before departure from the power. Reports of different banks never supported the assertions (relating to economy) of the previous government.

The minister said Awami League has also blamed the four- party alliance, former president Justice Shahabuddin Ahmed, the Election Commission, members of Bangladesh Army and lobbyists of America and India responsible for its massive failure in the general elections on October 1.He said Awami League announced that the voting process was unfair when the whole world and voters across Bangladesh said that the election was peaceful and conducted in a free and fair way.

"After the election, Awami League tried to flare up the communal issues in the country. But their endeavours have been foiled as major political parties and forces in Bangladesh are highly non-communal in nature and they never possess any communal sentiment," the minister said.

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