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EU under fire for spendthrift trillion-euro budget

Europe's austerity-driven governments rounded on Thursday on the European Commission's proposals for a record, more than trillion-euro, EU budget as 'unrealistic' and 'irresponsible'.

Almost immediately after being unveiled late on Wednesday, the draft budget for the next 2014-2020 period came under strong fire from two of the bloc's 'big three' powers — Britain and Germany — for a five-per cent rise geared to send spending soaring to 1,083 billion euros ($1,570 billion).

German foreign minister Guido Westerwelle, deeming it 'irresponsibly high', reminded the European Union's executive arm that 'in times of general budgetary consolidation Brussels must also send a message to frugally and sustainably economise.'

London issued the same message, demanding Brussels 'take the same tough measures as national governments are taking across Europe' and recalling that the union's top players had demanded zero budgetary growth for the future.

'We will stick to that,' said a British government spokesman.

The European parliament, which was clamouring for a five per cent increase to cover new needs and fresh policies, applauded the proposals.

Westerwelle said Germany saw one per cent of EU economic output — forecast as one trillion euros ($1.4 billion) for the period — as sufficient to cover EU spending during that time.

With a slight sleight of hand, commission officials put the budget at a total 1,025 billion euros, or 1.05 per cent of the 27-nation bloc's gross national income, while omitting 58.3 billion of emergency funds set aside for emergencies such as aid or farm crises.

Overall, the budget redefines EU priorities, reducing funds for farmers to invest instead in infrastructure and the greening of Europe — with a strong focus on building cross-border energy, telecoms and transport grids aimed at streamlining economic integration in the world's biggest market.

It also proposes the introduction of an EU sales tax and financial services tax to allow the bloc to raise its own funds rather than depend so heavily on funding from the EU member states.

While the commission has until late 2012 to hammer through a deal on its bombshell budget, the fiery immediate responses presage months of heated debate.

The Netherlands slapped down the idea of taxes, saying 'taxation is a national competence', while Britain warned against the introduction of a financial services tax in Europe that could send firms running for cover elsewhere.

'We think this should be done on a global level,' said a British diplomat.

Monies raised directly through an EU VAT — representing one or two percentage points of national sales tax — and a financial transactions tax worth some 30 billion euros a year, would bring in more than 40 per cent of EU revenue, said budget commissioner Janusz Lewandowski.

Stepping onto contentious ground, the commission also suggested a sweeping reform of EU 'rebates', a system of yearly paybacks to certain member states who claim excessive contributions into the EU coffer — and which notably includes a huge rebate to London negotiated decades back by Margaret Thatcher.

EU officials said complex routine haggling over the rebates — to Britain, Germany, the Netherlands and Sweden — could be replaced by a fixed lump sum in the interest of 'something very simple'.

Admitting the lump payments would be 'a little under current amounts', officials suggested 3.5 billion euros yearly to Britain, 2.5 billion to Germany, 1.05 billion to the Netherlands and 350 million to Sweden.

Sweden said that would 'substantially increase' its contribution to the EU budget while in Copenhagen, Denmark demanded its own rebate, saying: 'it is not reasonable that Denmark should have to finance the rebates of other wealthy countries without getting one itself.'

London 'will continue to protect the rebate', a government spokesman said.

'Without it, the UK's net contribution as a percentage of national income would be the largest across the EU, twice as large as France's and Italy's, and almost one and a half times bigger than Germany's.'

Italy said it had set itself a priority of obtaining a reduction of its contribution and would not accept that some countries should have a privileged position.

But also said that in general it accepted that the EU should have a budget to match its ambitions.

Source : New Age

S&P to deeply cut US ratings if debt payment missed

The United States would immediately have its top-notch credit rating slashed to 'selective default' if it misses a debt payment on August 4, Standard & Poor's managing director John Chambers told Reuters.

Chambers, who is also the chairman of S&P's sovereign ratings committee, said on Tuesday that US treasury bills maturing on August 4 would be rated 'D' if the government fails to honour them. Unaffected treasuries would be downgraded as well, but not as sharply, he said.

'If the US government misses a payment, it goes to D,' Chambers said. 'That would happen right after August 4, when the bills mature, because they don't have a grace period.'

Fears of a technical default have been rising after budget negotiations between Democrats and Republicans fell apart in Washington earlier this week. Even a brief default by the United States would immediately increase the country's borrowing costs, weighing on the fragile economic recovery and eroding the dollar's status as a reserve currency.

On August 4, the treasury department is due to pay off $30 billion in maturing short-term debt.

With the debt talks stalled, new ideas are surfacing such as prioritising debt payments. But treasury secretary Timothy Geithner warned lawmakers on Wednesday that such a move would still cause investors to shun treasury securities.

Geithner said that because the United States now borrows roughly 40 cents of every dollar it spends, prioritising payments with no debt limit increase would require cutting 40 per cent of all government expenditures.

S&P is not the first agency to say it will downgrade the United States if a payment is missed. Rival credit rater Moody's on June 2 was the first to say it would downgrade the United States shortly after a possible ceiling-related default to the Aa range.

Moody's on Wednesday said a US credit downgrade would also affect the ratings of some states and municipalities with strong credit links to the federal government.

Chambers insisted that the likelihood of a US default is 'extremely low,' as S&P expects a last-minute increase to the country's debt ceiling just like it has happened more than 70 times since the 1960s.

He also noted a default on US treasuries — a benchmark against which all other debt is measured — would dwarf any worries about US credit ratings as global markets would crumble.

Chambers made clear, however, that S&P is more worried about the ability of the government to meaningfully cut its deficit over the next two years, with presidential elections in 2012 making a bipartisan agreement much tougher.

Source : New Age

Beijing-Shanghai high-speed train makes debut

High-speed trains linking Beijing and Shanghai made their passenger debut Thursday on a $33 billion track China hopes will help ease its overloaded transport system.

Premier Wen Jiabao declared the link 'in operation' at Beijing South rail station before boarding the first sleek-nosed white train that will take passengers to Shanghai, the country's commercial hub, in less than five hours.

He said the high-speed line — launched on the eve of celebrations to mark the 90th birthday of China's communist party — would be key to 'improving the modern transport system... and satisfying people's travelling needs.'

The line, which has been operating on a trial basis since mid-May, halves the journey time between the country's two main cities and could hurt airlines on the busy route plagued by delays and cancellations.

'The high-speed train is fast and more convenient than a plane,' 38-year-old Xu Yuhua told the AFP as she waited with her 10-year-old daughter to board the first train for Shanghai, which left promptly at 3:00pm (0700 GMT).

Source : New Age

British public sector workers strike in pension row

Hundreds of thousands of British public sector workers went on strike Thursday to defend their pensions, causing widespread school closures in a major challenge to the year-old government.

Jobcentres, tax offices and museums were also closed across the country as four unions called out up to 6,00,000 workers to protest against plans to make them work longer and pay more into their pensions.

However, airport operator BAA said fears of delays at London Heathrow from a walkout by immigration and customs staff had failed to materialise on Thursday morning.

Prime minister David Cameron said the strike was premature as the changes were still being negotiated, and warned that with an ageing population reform was inevitable because 'the pension system is in danger of going broke'.

Action by three education unions caused the closure of about a third of schools in England and the disruption of another third, according to the Department for Education. There was also widespread disruption in Wales.

Picket lines were also set up outside government buildings, law courts and even the British Museum, and several thousand people gathered for a march in London, brandishing banners calling for 'Fair pensions for all'.

'I will lose £60,000 (66,000 euros, $96,000), I'll pay an extra £60 a month and I'll have to work seven or eight years longer' under the reforms, said Richard Jones, a 39-year-old civil servant on the march.

It looks set to be the largest public sector strike since one million local government workers walked out in March 2006, and some union leaders have warned it may only be the beginning of months of industrial unrest over pensions.

Cameron's Conservative-Liberal Democrat coalition has been the focal point of public sector anger after it announced a two-year pay freeze and 3,30,000 job losses by 2015 in an attempt to rein in a record budget deficit.

Source : New Age

Euro up after Greek vote on austerity package

The euro rose to a three-week high against the dollar in Asia on Thursday, as concern over Greece's debt problems eased after its parliament passed an austerity package that will help it avoid a default.

The euro rose to $1.4511 in Tokyo afternoon trading from $1.4429 in New York late Wednesday, topping $1.45 while the European unit edged up to 116.63 yen from 116.61 yen.

The dollar fell to 80.34 yen from 80.80 yen.

Greek lawmakers on Wednesday approved 28.4 billion euros package of spending cuts, unlocking a 12-billion-euro payout from the European Union and the International Monetary Fund.

The funds represent the fifth tranche of a 110-billion-euro aid package agreed last year with the EU and IMF, and are needed for Greece to pay off its mammoth debts.

Markets are still closely watching a second vote on the detail behind the measures that will take place later Thursday.

'Although the vote outcome came in line with expectation, the market is confirming risks to the euro stemming from the Greek debt problem are diminishing step by step,' said Dai Sato, dealer at Mizuho Corporate Bank.

'Upbeat stock markets are also helping improve risk sentiment, lifting the euro against the dollar,' Sato said.

Source : New Age

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty or squally wind is likely at most places over the Barisal, Chittagong and Sylhet divisions and at many places over the Rajshahi, Khulna and Dhaka divisions till 6:00pm today.

Moderately heavy to heavy falls are also likely at places over the country, the Meteorology Office said in a forecast on Thursday.

Day temperature may remain nearly unchanged over the country.

The sun sets in Dhaka today at 6:50pm and rises tomorrow at 5:15am.

The country's highest temperature, 33.8 degrees Celsius, was recorded on Thursday in Jessore and the lowest, 23.9 degrees Celsius, in Feni.

Source : New Age

Portugal delays high speed rail link as part of austerity

Portugal's new centre-right government sacrificed on Tuesday the completion a high-speed rail link with Spain as part of efforts to beat austerity targets agreed in its EU-IMF bailout.

The suspension of the construction of the Lisbon-Madrid high speed rail link that was due to be completed by 2013 was included in the government's four-year programme which it submitted to parliament.

The programme of Portuguese Prime Minister Pedro Passos Coelho vowed to 'apply scrupulously the measures negotiated with the International Monetary Fund and the European Union.'

Under Portugal's 78-billion-euro ($112 billion) bailout Lisbon must implement tough measures to control public finances and introduce reforms and sell-off state assets to improve the weak structure of the economy.

However, the government signalled it wants to be 'more ambitious in the adjustment process for the Portuguese economy' in order to 'prevent against possible external and internal risks.'

There have been increasing concerns that a Greek default could spread a new wave of contagion throughout the eurozone, further damaging weaker economies such as Portugal.

Source : New Age

Compromise unblocks US trade deals

The White House and top lawmakers have finally reached a deal to allow long-stalled trade pacts with South Korea, Colombia and Panama to move ahead in Congress, officials said Tuesday.

The deal will allow a Senate panel to start work this week on the pacts, worth billions of dollars, which slash tariffs and are designed to boost exports and speed up slow US jobs growth, Capitol Hill officials said.

The White House said the breakthrough resulted from an agreement with lawmakers to fund Trade Adjustment Assistance, which offers health care and retraining for US workers who lose jobs to overseas markets through 2014.

The White House had insisted on renewing TAA as a condition for moving forward on the deals, drawing Republican fire that it was loading down the pacts with unrelated legislation and blocking vital trade deals.

'As a result of extensive negotiations, we now have an agreement on the underlying terms for a meaningful renewal of a strengthened TAA,' White House spokesman Jay Carney said in a statement.

'President Obama has fought for an ambitious trade agenda that doubles exports in five years, levels the playing field for American workers, and reflects American values,' he said.

Trade organizations and free trade advocates had been cranking up pressure on the White House to move on the deals before campaigning for the 2012 election further poisons the political atmosphere.

The deals may offer a boost to Obama's efforts to double US exports and create jobs in a sluggish economy with unemployment pegged at 9.1 per cent, a perilous political reality for the president.

Trade groups, which have mounted a vocal campaign for action on the pacts, welcomed the breakthrough.

'With our economic recovery stalling, the time is now for Congress to act on these deals,' said Thomas Donohue, president and CEO of the US Chamber of Commerce.

'For members of Congress who care about American jobs, this is a moment of truth,' he said.

Mitch McConnell, who leads the Republican minority in the Senate, however, suggested the ratification of the deals remained in doubt, saying the expansion of TAA in the South Korea pact was opposed by his party.

'I would strongly urge the Administration to re-think this action, and urge them to send up all three pending trade agreements without delay and without extraneous poison pills included,' he said.

But Democratic Senator Max Baucus said the TAA deal had been put together in talks which included top House of Representatives Republicans, adding his finance committee would begin to consider the deals on Thursday.

And a senior Obama administration official said on condition of anonymity that the White House was confident there was sufficient support in Congress to ratify the three deals and pass the extension of TAA.

Lori Wallach, Director of the global trade watch for Public Citizen, a consumer advocacy group, warned though that ratifying the deals could come at a political price.

'Given that polls show most Americans oppose more... trade pacts because they are job-killers, announcing that three more such agreements are ready to move... sure will make them mad.'

The Colombia trade pact, a fulcrum of US policy towards Latin America, was signed with Washington in 2006, but has languished in Congress ever since amid fierce debate among pro and -anti free traders.

In April, US president Barack Obama said the United States and Colombia had agreed a plan to boost labour rights in the Latin American nation and unblock a free trade agreement between their countries.

Source : New Age

Inflation fears give active managers new chance

Rising inflation is giving active fund managers a chance to claw back business lost to low-cost funds after the market crisis cast doubts over their ability to make money for clients.

With low interest rates and rising inflation making cash-like products unappealing and market volatility diminishing the allure of cheap index tracking funds, many investors are being forced back into active funds.

'There is a tremendous opportunity for investment managers to provide propositions — for a fee — to deal with that risk. In a high and rising inflation scenario, active management ought to be really key,' said Tom Brown, head of investment management for the EMEA region at KPMG.

Research house Cerulli Associates estimated while global assets recovered to pre-crisis levels last year, revenues were still $10 billion short of 2007, partly because of a reallocation to passive from active management.

'Institutional investors are moving again to ... very high conviction portfolios. That is because of their need for returns and that includes inflation (rises),' said Bernhard Langer, chief investment officer of global quantitative equity at Invesco.

Langer, who oversees $25 billion, told Reuters he was seeing especially strong demand for high conviction equity products in the United States.

Products aiming to deliver returns above markets while managing downside risks were in demand, said Elizabeth Corley, Europe chief executive of Allianz Global Investors and a speaker at the Fund Forum industry conference in Monaco.

'That is what clients like, and that is growing faster than any other part of our business,' she said.

Rick Lacaille, global CIO at State Street Global Advisors said on the sidelines of the conference on Monday that while index-tracking investments remained popular, demand for more sophisticated funds offering potentially market beating returns was on the rise.

'There is still great appetite for indexed funds but that much more concentrated, high-return portfolio is also growing,' Lacaille said.

There is still plenty of criticism of active fund management which charges relatively high fees for a premium service that can fail to deliver.

A separate Cerulli study conducted earlier this year revealed that out of a sample of 69 European absolute return funds — meant to deliver returns in any market condition — with more than five years track record, only six posted positive annual returns since inception.

The respondents told Cerulli that absolute return was 'more an aspiration' than something they would necessarily deliver every year said Yoon Ng, the report's author.

In a rare acknowledgement of the industry's limits, Bill Gross, co-CIO at PIMCO, the Allianz fixed income subsidiary, recently said fund managers sold 'hope' in exchange for generous fees.

But despite the criticism, Fund Forum attendees said they have seen no significant fee pressure.

'I would almost go as far as saying that in the last three years the prices were constant,' Langer said.

Allan Polack, chief executive of Nordea Asset Management, said the largest Scandinavian asset manager had seen no big challenges in defending fee levels, while SSgA's Lacaille said fees for the active management range were stable.

Source : New Age

Same method, same result: France keeps IMF job

Despite pledges of new transparency, the IMF again gave its top job to a French candidate Tuesday, assuring continued ire from developing countries at Europe's hold on the job.

To the surprise of few, the global crisis lender's executive board named French finance minister Christine Lagarde as managing director, replacing her countryman Dominique Strauss-Kahn, who resigned on May 18 to fight charges of sexual assault in New York.

That made her the 11th European to hold the job since 1946, and the fifth from France—a record that comes thanks to a gentleman's agreement dating to their creation at the end of World War II that an American would be president of the World Bank and a European would lead the International Monetary Fund.

Despite a challenge by Mexico's central bank chief Agustin Carstens, few had doubted Lagarde's chances: Europe aggressively declared itself united behind her days after Strauss-Kahn departed and before any other candidates had a chance to surface.

A top European official at the time called it a 'done deal.'

Carstens persevered, while others—including the respected South African Trevor Manuel—stayed out, saying Lagarde already had the job sewn up.

'I think a lot more could be done, a lot more should have been done to persuade Europeans that this birthright is not a birthright that should find a resonance in an institution as important as the International Monetary Fund,' Carstens said at the time.

When Strauss-Kahn was chosen in 2007, Jean-Claude Juncker, who chaired the Eurogroup of countries, predicted that would be the last time a European got the job.

'The next director will certainly not be a European' he said.

That came after more than a decade of anger at the IMF's hectoring approach to developing country members, especially in the 1997 Asian crisis when it dictated reforms based on a developed country ideology that has since been partially jettisoned—especially its then-rejection of capital controls.

But the 'consensus' choice of Lagarde proved Juncker wrong, even though the same developed countries that dominate the fund plunged into their own financial crises beginning in 2007.

'The process is rigged,' said Arvind Subramanian, a former IMF economist.

'Fundamentally, the system must be made fairer by ensuring that no one group of countries gets an unfair advantage in the race to become the managing director of the IMF.'

Sarah Wynn-Williams, head of IMF relations at global poverty fighting group Oxfam, said ahead of the decision that the managing director nominee is 'not even decided by the board, it's not even decided in Washington.'

Source : New Age

Panel to decide on rice, wheat exports: Indian food minister

The food ministry is not against grains exports and a panel of ministers will decide on rice and wheat exports, food minister KV Thomas said on Wednesday,

without specifying any time frame. 'Food ministry is not negative to exports, but we will have to look at the demand in view of the Food Security Bill. We will place the issue before EGoM (Empowered Group of Ministers),' Thomas told reporters.

India could decide soon to allow exports of a million tonnes each of wheat and common rice as government stocks hit a record 65.6 million tonnes, well above targets, two government sources said on Tuesday.

India, one of the world's biggest producers and consumers of wheat and

rice, has kept a tight control over grain exports since 2007, allowing only overseas sales of aromatic basmati rice, to ensure it can provide cheap food grains to the poor.

Farm minister Sharad Pawar has called for grain exports with stocks overflowing after three years of bumper harvests and the onset of the monsoon has raised concerns stocks

outside could be

damaged, adding to pressure for sales.

Source : New Age

Migrant workers should not be charged for jobs: HR activists

Local and international human rights defenders on Wednesday fixed ten principles on the rights and dignity of migrant workers saying the recruiting agents should not charge workers any fees and all costs should be borne by the employers.

The other principles include — job contracts should be made available in migrants workers' language, recruiting agency or employer must not retain migrant workers passport, migrants workers are remunerated fairly in line with local wages and the employers facilitate safe return of migrant workers at the end of the contract with all benefits.

The principles were set on the concluding day of the two-day roundtable discussion tilted 'Bangladeshi migrant workers: responsible recruitment, responsible return', jointly organised by Refugee and Migratory Movement Research Unit and the London-based Institute for Human Right and Business at a city hotel.

Representatives from different human rights bodies, international brands, workers' organisations, migrant organisations, Bangladeshi recruiting agencies, government officials and trade unions took part in the discussion.

'A migrant worker is at the end of the chain, he or she should not have to bear the cost of recruitment,' member of the board of advisors of IHRB and former chief of Amnesty

International Irene Khan told a press briefing at the end of the roundtable.

She said manpower business is responsible not only for safe recruitment, but also for safe return. 'If people are not recruited properly, they will not return properly,' she added.

Expatriate welfare and overseas employment secretary Zafar Ahmed Khan, IHRB executive director John Morrison, representative of manpower ltd, a global manpower recruitment company David Arkless and director of RMMRU CR Abrar also spoke at the briefing.

Jafar said the government was working to make bilateral agreements with the manpower receiving countries to reduce the migration costs as well as protect the workers abroad.

He said presently the government was consulting with recruiting agencies and other stakeholders to fix the maximum migration cost. 'We will be able to declare a logical migration cost with the consent of all parties soon,' he said.

Source : New Age

Less durable umbrella import takes a toll on local manufacturers

Local umbrella manufacturers, who dominate the rural markets, claimed that their business is being hampered due to the indiscriminate import of less durable but fancier umbrellas.

Urban people prefer the foreign umbrellas, in spite of the fact that they are less durable and more costly, as they are easier to carry, said Mohammad Alauddin, manager of Sharif Umbrellas, on Wednesday.

The imported umbrellas, that usually last for one rainy season only, are sold in the local market for more than Tk 200 each, while the more durable local umbrellas cost about Tk 160 each, said Alauddin.

Last year the price of imported Chinese umbrellas was nearly half of this year's price, whereas the price of the locally manufactured umbrellas has grown by only Tk 30 to Tk 40 each due to increase in the cost of materials, he added.

The government should stop allowing import of foreign umbrellas to promote the local brands which are strong enough to withstand windy weather in the monsoon, he added.

Umbrellas of three other local reputed brands — Alam, Alauddin and Sanowar — are also available at almost similar prices, he said.

Mesbahuddin Bablu, manufacturer of Boishakhi Umbrellas, said the money with which they imported 26,000 umbrellas from China would suffice to make only half the number of local umbrellas.

The demand for local umbrellas is decreasing every year, said Bablu, adding that he manufactures nearly 13,000 umbrellas every year, apart from importing them.

He said China has the technology which Bangladesh lacks, which is the main reason that these types of umbrella cannot be fabricated locally. Local manufacturers need the latest technology to compete with foreign brands.

Government employee Moqbul, who had used local Alam brand of umbrella for 11 years and lost it recently, came to New Market to buy another of the same brand as he had found it to be quite durable.

Housewife Rabeya, who came to New Market to buy 3 umbrellas for her school-going children, said she was looking for the Chinese 'Dove' brand which she had bought for Tk 120 last year.

Shopkeeper Shahjahan, who demanded Tk 200 for each umbrella, said that the price of foreign umbrellas varies, depending on the quality of the materials used.

The Indian Shankar brand costs more than Tk 600, he added.

Brightly coloured umbrellas for kids cost about Tk 100 each, he said.

Some local companies copy popular Chinese umbrellas like Cherry and Atlas and sell them at lower prices, said Shahjahan.

Source : New Age

Undisclosed money investment decision propels stocks

Turnover of the Dhaka Stock Exchange on Wednesday hit a two-and-a-half month high and the stocks extended gains for the third day on buying spree after the government allowed legalisation of undisclosed money by investing in the capital market, market operators said.

The Finance Bill 2011 passed on Tuesday included a provision of investment of undisclosed money in the stock market by paying a 10 per cent tax.

The benchmark general index of the DSE gained 68.18 points, or 1.14 per cent, to close at 6,038.66 points on Wednesday.

Turnover rose to Tk 937.66 crore from that of Tk 771.52 crore on Tuesday. Wednesday's figure of the turnover was the highest since April 11 when it was Tk 1,224.16 crore.

Market operators said both individual and institutional investors went for a buying binge following the government's move.

Out of the 257 issues traded on Wednesday, 205 advanced, 47 declined, and five remained unchanged.  

Prices of the bank and textile shares made significant gains on the day. All but two banks gained heavily and only one textile issue went red.

The DSE general index had gained 352 points over the previous nine trading days, riding on the hope that the government might finally include a provision in the budget for fiscal 2011-2012 allowing legalisation of undisclosed money invested in the capital market.

The DGEN had shed 213 points in a week after the finance minister in his proposed budget placed in the house on June 9 allowed legalisation of undisclosed money by investing it in government treasury bonds and infrastructure development fund by paying a 10 per cent tax ignoring calls from stock market stakeholders to allow such provision in the market.

Mahmood Osman Imam, who teaches finance at Dhaka University, said, 'The government's move may boost the general investors for a short period but would not bring any substantial positive change in the capital market in the long run.'

'So, it would not be justified to say that allowing undisclosed money for capital market investment will help the market.'

On Tuesday finance minister AMA Muhith said that the facility for legalising undisclosed money did not bring much benefit in the past. 'In 2009-2010 at total of Tk

922 crore was legalised and only Tk 121 crore was realised as income tax,' he said adding that the best way to reduce the size of undisclosed money was to invest it in real economy.

Source : New Age

More banks, insurance cos to get govt nod

The government will invite applications for setting up new private commercial banks and life insurance companies next month, finance minister Abul Maal Abdul Muhith said on Wednesday.

Muhith, while discussing on a cut motion by independent lawmaker Fazlul Azim, informed parliament that the new banks and insurance companies would help increase liquidity in the money market.

Azim criticised the finance minister for his handling of the share market issue and said that there was liquidity crisis in the country while the banks were charging exorbitant interest.

'When the general index [price index of bourses] went up, the finance minister took the credit. But when the index fell, he claimed the market was a 'fatkabzaar',' said Azim adding that the minister should take steps to increase liquidity supply in the share market.

In reply, Muhith claimed that there was no liquidity crisis in the country and there was no relation between liquidity crisis and the stock market debacle.

'The share market is now stable. We did not have any negligence towards the stock market. Our only lapse was that we could not check the over pricing of shares. There is nothing to be worried as the market has been stable for the last two months,' he said.

'We will invite applications for new commercial banks next month. Applications for new life insurance companies will also invited,' said the minister.

At present there are 49 commercial, specialised and multinational banks in the country. Of the total, 31 banks are listed with the Dhaka Stock Exchange.

The number of insurance companies in the country is 62, of which 18 are life insurance companies.

Source : New Age

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty or squally wind is likely at most places over the Rajshahi, Rangpur, Dhaka, Khulna, Barisal, Chittagong and Sylhet divisions till 6:00pm today.

Moderately heavy to heavy falls are also likely at places over the country, Met Office said.

Day temperature may remain nearly unchanged over the country.

The sun sets in the capital today at 6:50pm and rises tomorrow at 5:15am.

The country's highest temperature, 31.6 degrees Celsius, was recorded on Wednesday in Khulna and the lowest, 23.6 degrees, in Feni.

Source : New Age

RU students lock admin building TSCC opening

The students of Rajshahi University on Wednesday locked the main gate of its administrative building in continuance of their movement for opening the Teachers -Students Cultural Centre.

At about noon around 200 students and cultural activists brought out a procession that marched through the campus to end in front of the administrative building, where they staged street dramas and songs and later locked its gate.

Witnesses said that vice-chancellor Abdus Sobhan went to the spot with the proctorial body and pressurised the agitators to withdraw the movement.

The VC also threatened to take punitive action against the agitators and got them mass arrested, they said. 

They also blamed the RU syndicate for their failure to reach any concrete decision about opening the TSCC at its June 27th meeting.

Source : New Age

Greece hit by 48-hr strike against austerity cuts

Greece ground to a halt Tuesday as a 48-hour general strike began to bite while the bankruptcy-threatened government attempted to push through sweeping austerity cuts.

Apart from the metro, no public transport was operating in Athens and the streets were relatively empty, with many people deciding to stay away from work to join the fourth general strike called this year by the country's two biggest unions.

Subway employees decided not to strike so as to allow Athenians to join planned protests in the capital.

But banks were closed and hospitals were functioning on reduced staffing while at airports, dozens of domestic flights by Greek airlines Olympic Air and Aegean were cancelled as air traffic controllers went on strike.

In the port of Pireus, near Athens, which links most Greek islands with the mainland, the main seamen's union was not officially on strike, as the tourist season is just getting under way.

Nevertheless around 200 militants from a communist union and a port employees' union picketed to prevent ferries from leaving the port.

A string of rallies are planned for Tuesday, focused on Syntagma Square — home to the Greek parliament and a magnet for tens of thousands of protesters who see the international community as imposing tough conditions for their bailouts.

'We think these measures and government policy are bad for workers in general. They are cutting salaries, they are cutting pensions and cutting social services. In fact they are taking money off workers to give it to banks and big business,' a port employee and unionist told the AFP.

Parliament is scheduled to vote Wednesday and Thursday a package of austerity measures aimed at slicing 28.6 billion euros from government spending by 2015, and raising what international partners hope can reach 50 billion in privatisation receipts.

The EU and IMF have demanded the cuts and sell-offs in order provide the latest tranche of funding under last year's 110-billion-euro bailout package.

Approval of the austerity measures by lawmakers would also allow work to proceed on a second bailout of a similar size.

Meanwhile the Greek press on Tuesday welcomed a French initiative to come up with a long-term rescue plan for debt-ridden Greece.

President Nicolas Sarkozy announced Monday that France was working with private lenders on a 30-year scheme to give Greece time to get on top of its debt mountain.

The economic daily Naftemporiki carried a front page photo of Sarkozy while the pro-government daily Ta Nea had a headline hailing the French 'solution'.

Source : New Age

Germany, China ink $15b deals

Germany and China held their first joint cabinet meeting Tuesday and inked more than $15 billion in business deals but Chinese premier Wen Jiabao warned Europe against interfering in its internal affairs.

The new contracts, including one for the purchase of 62 A320s from European aircraft manufacturer Airbus, were signed at a press conference with Wen and Chancellor Angela Merkel after a meeting of 23 German and Chinese ministers.

Berlin rolled out the red carpet during the two-day stay of the Chinese delegation, starting with an informal dinner for Wen and his inner circle hosted by Merkel at a lakeside villa Monday.

But Wen insisted Tuesday that despite 'growing and deepening ties,' he would not accept lectures on human rights or the rule of law from European partners.

'China respects the political system and the development model chosen by the citizens of the EU,' he told a conference of German and Chinese business leaders at a Berlin hotel.

'In exchange, we expect from the EU respect of our sovereignty, our territorial integrity and the autonomous choices of the Chinese people.'

At the press conference, Merkel welcomed the release of prominent Chinese dissident Hu Jia and outspoken artist Ai Weiwei from custody amid a government crackdown on dissent.

But she said that Germany expected Ai's case and others like it to receive a 'transparent' handling by Chinese authorities.

Western nations including Germany had repeatedly urged Ai's immediate release. But Berlin has expressed serious concerns about apparent restrictions on Hu and Ai including their freedom to speak to the media.

Human Rights Watch had urged Berlin to place the issue front-and-centre at the talks, saying that Ai's release showed 'that political pressure on the Chinese government works.'

While Merkel welcomed Wen to her chancellery with military honours, a few dozen demonstrators waved Tibetan flags and shouted 'Freedom for Tibet!' in German.

And at the end of the press conference, a German protester held up a golden-coloured, waving cat figure emblazoned with Chinese characters and a club in its paw, which he called a 'prize' for Wen.

'For the economy, for billions in deals,' he shouted.

Relations between China and Germany hit a low point in September 2007 when Merkel welcomed the Dalai Lama, Tibet's exiled spiritual leader whom Beijing brands a dangerous separatist.

Wen told reporters in London Monday that China would not accept 'finger-wagging' over human rights.

No financial details were given on the Airbus deal but press reports in Germany said the framework agreement was worth more than seven billion euros ($10 billion).

Source : New Age

TEPCO braced for furious shareholder meeting

Already battered by the world's worst nuclear crisis in 25 years, Tokyo Electric Power Co on Tuesday faces furious shareholders whose investments have evaporated after the March 11 disasters.

TEPCO shares have lost around 85 per cent of their value since a 9.0 magnitude earthquake triggered a tsunami that crippled cooling systems at the Fukushima Daiichi nuclear plant, with three reactors suffering meltdowns.

The company faces huge costs amid anger at its handling of the crisis and the prospect of public funds being used as part of a public-private government scheme to ensure TEPCO can meet trillions of yen in compensation.

Around 85,000 people have been evacuated from their homes, farms and businesses in a 20-kilometre (12-mile) zone around the radiation-spewing plant, with evacuation pockets also further afield.

Riot squads and around 150 police officers will be deployed around the hotel in Tokyo where the annual meeting of shareholders is to take place Tuesday with protests planned by residents of Fukushima and anti-nuclear activists.

'My anger for TEPCO is beyond words. I want to tell them to take all responsibilities,' Toshiko Furusho, a 72-year-old shareholder pushing for TEPCO to abandon nuclear power, told AFP.

'There is no way our tax money should be used to cover compensation.'

Analysts say the event will see fiery debate on the fate of TEPCO's nuclear power business, while attendance is expected to be higher than last year's 3,342.

A proposal for the company to abandon nuclear power will be presented to the company's 746,927 shareholders with voting rights, but is highly unlikely to be adopted, according to Japanese media.

Source : New Age

Austerity only way to avoid Greek default: EU

European Union economic affairs chief Olli Rehn pressed the Greek parliament on Tuesday to adopt a tough austerity programme, saying it was the 'only way to avoid immediate default.'

'This week Greece faces a critical juncture. Both the future of the country and financial stability in Europe are at stake,' Rehn said in a statement.

'I trust that the Greek political leaders are fully aware of the responsibility that lies on their shoulders to avoid default,' he said.

'The only way to avoid immediate default is for Parliament to endorse the revised economic programme.'

Rehn slapped down speculation that Europe was working on a contingency plan in case Greek lawmakers this week reject 28.6 billion euros in budget cuts and tax rises as well as a 50-billion-euro privatisation programme.

'To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default,' he said.

A high-ranking European official, speaking on condition of anonymity, has said that a Plan B was in the works, stressing that 'the next step is not a default of Greece.'

German finance minister Wolfgang Schaeuble said in a newspaper interview published on Sunday that the eurozone must be 'prepared for the worst' and would cope even if Athens defaulted on its debt.

Rehn reiterated that passing the austerity measures was a pre-condition for the EU and IMF to release 12 billion euros from last year's 110-billion-euro bailout, which Athens needs by July to avoid financial collapse.

'They must be approved if the next tranche of financial assistance is to be released,' he said.

'The European Union continues to be ready to support Greece. But Europe can only help Greece if Greece helps itself,' he said.

Source : New Age

Wal-Mart to set up e-commerce HQ in Shanghai

US retail giant Wal-Mart has said it signed an agreement with the Shanghai government to set up a China e-commerce headquarters in the city to boost its presence in the fast-growing market.

Under a memorandum of understanding signed on Monday, the company will strengthen collaboration with the city government on training of personnel and offer Chinese consumers 'a wider selection' of products online.

'The scale of online sales in China is expanding rapidly and is projected to match US online sales in the next few years,' Wan Ling Martello, Wal-Mart's executive vice-president of Global eCommerce, said in a statement.

'We are very optimistic about China's e-commerce market and its growth potential,' she said.

Wal-Mart announced last month it had agreed to buy a minority stake in Chinese online grocery store Yihaodian, or 'number one store' in Chinese. It did not provide financial details of the deal.

Consumer online spending in China nearly doubled to 513.1 billion yuan ($79.3 billion) in 2010 from a year earlier, accounting for around three per cent of total retail sales in the country, according to the China e-Business Research Centre.

That figure could exceed one trillion yuan in the next two years, the institute said in a report released early this year.

Highlighting the growing appeal of China's Internet market, foreign companies such as Adidas, Gap and Wal-Mart have opened online stores in the country, which has the world's largest web population at 477 million.

Wal-Mart's first quarter net profit rose three per cent to $3.4 billion as strong international sales offset weakness in its home market in the United States.

Source : New Age

Euro holds firm on Greek hopes in Asia

The euro held steady against major currencies in Asian trade Tuesday as investors were lifted by reports that officials were close to approving austerity measures key to Greece avoiding a debt default.

The single currency was flat at $1.4277 in Tokyo afternoon trade from New York late Monday. It eased slightly to 115.32 yen from 115.51.

The dollar eased to 80.78 yen from 80.90 yen.

On Monday Greek prime minister George Papandreou begged parliament in Athens to pass drastic austerity measures and keep the country 'on its feet'.

Dealers in Tokyo said investors are cautiously watching Wednesday's vote, which must be passed for Athens to receive the next 12 billion euro tranche of a bailout package from the European Union and IMF and pay its debts next month.

'Positive news regarding Greece overnight and a rebound in the stock market is making it tough to sell the euro against the dollar,' said Kuniyuki Hirai, manager at the foreign exchange trading department of Bank of Tokyo-Mitsubishi UFJ.

However, he cautioned: 'Many people in the market probably think the vote will pass, although uncertainty remains. But even after Greece approves the bill, it isn't certain whether the euro will show a strong rally,' he said.

Source : New Age

Oil turns lower in Asian trade

Oil turned lower in Asian trade on Tuesday as Greek workers launched general strikes in protest over tough austerity measures lawmakers are due to vote on this week.

The strike, intended to last 48 hours, paralysed transport and public services as legislators debated the measures tied to the country's receiving rescue loans to avert bankruptcy.

Analysts have warned that a Greek default risks sparking a contagion across the rest of Europe that many fear this could again shake the global financial system.

New York's main contract, West Texas Intermediate for delivery in August, was down five cents to $90.56 a barrel in the afternoon, and Brent North Sea crude also for August dipped 31 cents to $105.68.

'Generally, prices are reflective of the economic condition of the world such as the debt issue in Greece,' said Shailaja Nair, an analyst with energy information provider Platts.

Greek prime minister George Papandreou begged his parliament late Monday to do its 'patriotic duty' and vote to keep the country 'on its feet.'

Source : New Age

market Disclosures

Shahjalal Islami Bank
Nasima Akter, one of the sponsors/directors of the bank, has reported her intention to sell 1,00,000 shares out of her total holdings of 61,34,460 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Delta Spinners
Trading of the shares of the company will be allowed only in the spot market and block/odd lot transactions will also be settled as per spot settlement cycle from June 29 to July 3. Trading of the shares of the company will remain suspended on record date on July 4 for EGM.

Popular Life Insurance Co
Mohammad Akhtarul Haque, one of the sponsors/directors of the company, has reported his intention to sell 15,000 shares out of his total holdings of 2,76,180 shares of the company at prevailing market price through the stock exchange within next 30 working days.

One Bank
Hefazatur Rahman, one of the sponsors/directors of the bank, has reported his intention to sell 30,000 shares out of his total holdings of 6,23,907 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Standard Bank
Harun Rashid Chowdhury, one of the sponsors/directors of the bank, has reported his intention to sell 10,000 shares out of his total holdings of 3,59,930 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Peoples Insurance
Md Farhad Ahmed Akanda, one of the sponsors/directors of the company, has reported his intention to sell 2,33,990 shares out of his total holdings of 17,07,037 shares of the company at prevailing market price through the stock exchange within next 30 working days.

Pragati Life Insurance
The board of directors has recommended 12 per cent stock dividend for the year ended on December 31, 2010. The AGM will be held on September 15 at 12:00pm at Jumuna Resort Ltd at Bhuapur in Tangail. Record date will be on August 25.
    Source: DSE
Source : New Age

Mercantile Insurance elects new chairman

Abdul Haque has recently been elected chairman of Mercantile Insurance Company Limited for the eighth time. He was elected at the 15th annual general meeting of the company held in Dhaka on Monday, said a news release.

He is a sponsor director of Mercantile Insurance Company. He is also the founder chairman of Shamol Bangla Media Limited, owner of Bangla Vision, a satellite TV channel company.

Source : New Age

Afghan central bank chief flees to US

Afghanistan's central bank governor has resigned and fled to the United States, saying his life is in danger over a corruption probe targeting influential figures connected to the government.

President Hamid Karzai's government on Tuesday dismissed the claims made by Abdul Qadir Fitrat, chairman of Da Afghanistan Bank, insisting his life was not under threat and calling him a 'runaway governor'.

'I announce my resignation from the position of governor of the central bank of Afghanistan immediately,' Fitrat said in a statement issued as he visited the United States, where he reportedly has permanent residency.

'Unfortunately, central bank's independence on regulatory and supervisory matters has recently been undermined by the repeated interference of high-level political authorities,' he said.

The governor has claimed his role in an investigation into the near-collapse last year of Kabul Bank, the war-torn country's largest private lender, had put him in peril.

'My life was completely in danger and this was particularly true after I spoke to the parliament and exposed some people who are responsible for the crisis of Kabul Bank,' he was quoted as saying by the BBC.

In April, Fitrat named in parliament high-profile figures who were allegedly involved in corruption scandal amounting to nearly $1 billion at Kabul Bank, which handles the pay of thousands of Afghan civil servants.

The bank was founded in 2004 by Sherkhan Farnood, a leading international poker player. Its co-owners included Mahmood Karzai, a brother of president Hamid Karzai, and a brother of vice-president Mohammad Qasim Fahim.

The scandal has highlighted chaos and corruption in Afghanistan's financial system at a time when US-led combat troops are due to start leaving the country, a decade after ousting the fundamentalist Taliban regime.

Some foreign troop withdrawals are due to start next month, with 10,000 United States forces scheduled to leave by the end of this year.

President Karzai's spokesman Waheed Omer angrily dismissed Fitrat's claims.

Source : New Age

India growth depends on reform, says Geithner

US treasury secretary Timothy Geithner on Monday urged India to open up its financial sector, warning that future growth in the rapidly emerging economy depended on new reforms.

But in key annual talks, Geithner and Indian finance minister Pranab Mukherjee struck a largely conciliatory tone and said that the world's two largest democracies shared common interests.

Geithner said that India was still 'reaping the benefits' of reforms in the 1990s when prime minister Manmohan Singh, then the finance minister, ended decades of socialist-style state planning of the economy.

'But I think India is at the point where future growth will depend on the success in this next wave of reforms,' Geithner told a forum.

'I think in many ways, the Indian economy is outgrowing its financial system,' he said. Geithner said India will have 'huge needs' for new capital to start businesses and that the United States hoped to play a 'significant' role.

India opened up its banking sector since the 1990s, but state-owned institutions — often with archaic infrastructures — still play a dominant role. Much of the 1.2 billion-strong population lacks access to modern banking.

Mukherjee said Singh's government hoped to move ahead on reforms in three key areas — banking, insurance and pension funds — but needed first to bring onboard other political parties.

'The talks to build a consensus are going on and I do hope it will be possible, with the help of parties concerned, (to) be able to get these legislations passed,' Mukherjee said.

The planned start of India's parliament has been delayed due to controversy over the separate issue of an anti-corruption bill.

India has also been considering other controversial reforms including opening up its retail sector. International giants such as Walmart are eager to enter India but face opposition in a country where mom-and-pop stores dominate.

India's economy grew 7.8 per cent in the three months to March, a dip from recent quarters as output and investment are hit by aggressive hikes in interest rates, which are meant to tame inflation.

Mukherjee said that India's annual inflation rate would ideally be between 5.0 and 6.0 per cent but that 'we can deal with' up to 6.5 per cent. Inflation soared to 9.06 per cent in May, aggravating misery for India's millions of poor.

But Geithner, who spent part of his childhood in India, praised the overall direction of the South Asian nation, saying it has pursued a 'more balanced' form of growth.

'India is in some ways a model for how to produce broad-based income growth,' Geithner said. 'It's a good, positive example for the rest of the world.'

The talks with Mukherjee had none of the friction that characterise US ties with China, Asia's other billion-plus nation. While India's growth is largely domestic-driven, China has run up a giant trade surplus with the United States and other developed nations through an economy based on exports.

'I think if you look at this relationship, one of the things that's so encouraging about it is the relative absence of drama,' Geithner said of relations with India.

Geithner welcomed Mukherjee to a dinner on Monday evening. On Tuesday, Mukherjee was to meet Secretary of State Hillary Clinton who is expected to visit India in the near future.

Relations between India and the United States were rocky in the Cold War but have rapidly improved since the 1990s.

Source : New Age

Dhaka bourse suspends Lafarge Surma trading

The Dhaka Stock Exchange on Tuesday suspended the trading of the shares of Lafarge Surma Cement Ltd for an indefinite period due to unusual rise in its share price, an official of the bourse said.

In the previous two trading days, the bourse kept the trading of the shares of the company halted on the same ground for certain periods.

'The trading of the company's shares was suspended as the price of its shares was rising abnormally,' said Md Shafiqur Rahman, deputy general manager of the DSE.

'The DSE management will conduct an investigation into the price hike,' he said adding that the trading of the company's shares would resume after completion of the enquiry.

The price of the

scrip rose to Tk 488 on Tuesday from Tk 390.50 on June 19.

The company did not give any dividend to shareholders for 2010 while its accumulated loss stood at Tk 381.64 crore on Mach 31.

The DSE on Tuesday also kept halted the trading of the shares of National Life Insurance Company Ltd and Karnaphuli Insurance Company Ltd for the day for unusual rise in the prices of their shares.

Source : New Age

Remove red tape to boost S Asian trade: Faruk Khan

Commerce minister Faruk Khan on Tuesday held the bureaucratic tangle responsible for the snags in the way of removing all sorts of tariff, non-tariff and other barriers to boosting trade in the region.

Nexus between bureaucrats and politicians is indispensable in the interest of the people, he said urging the bureaucrats to take a fresh vow to work for the common regional interests.

'Either bureaucrats in the region are inefficient or politicians have failed to give correct directives to prepare a list of regional trade barriers and remedies for the economic development. That should be our agenda in the region,' Faruk added.

He was inaugurating a daylong regional meeting on 'Economic Non-Cooperation to Consumers in South Asia' as chief guest at BRAC Inn in the city.

Prime minister's international affairs adviser Gowher Rizvi, who spoke at the meeting as the special guest, pointed out that poor infrastructure, state of transport and related services and tense political relations between SAARC states were slowing down the economic integration process in the region.

Institute for Policy Advocacy and Governance, Bangladesh arranged the seminar in cooperation with Consumer Unity and Trust Society of India.

Syed Munir Khasru of Institute of Business Administration of Dhaka University and country representative of the Asia Foundation, Bangladesh M Mazumdar and research coordinator of CUTS Geveva Resource Centre Rashid S Kaukab also spoke on the occasion.

Faruk said increasing the trade tie with South Asian countries means creating a competitive business environment in the region leading to higher standards of living, new investment opportunities, infrastructure development, access to quality products and highly paid jobs.

Source : New Age

DSE maintains gains on speculative buying

Dhaka stocks gained for the second day on Tuesday with the increase in investors' participation in the trading as the speculation intensified that the government might allow legalisation of undisclosed money by investing in the capital market, market operators said.

The DGEN, the benchmark index of Dhaka Stock Exchange, advanced by 36.30 points, or 0.61 per cent, to close at 5,970.48 points. The index had gained 92.92 points in the previous day after a marginal fall on Sunday.

Turnover of the bourse, however, dropped to Tk 771.52 crore on Tuesday from Tk 831.91 crore in the previous day.

Market operators said both individual and institutional investors remained active as a number of newspapers reported that the government might finally include a provision in the budget for fiscal 2011-2012 allowing legalisation of undisclosed money invested in the capital market.

Business leaders at a meeting on Sunday had requested the prime minister, Sheikh Hasina, to include the provision and she had assured them that the government would consider the demand.

Last week, the parliamentary standing committee on finance ministry also suggested the finance ministry to include the provision.

A DSE stockbroker said, 'Investors are buying shares as they expect that the market will grow further.'

Out of the 255 issues traded on the day, 191 advanced, 57 declined, and seven remained unchanged.

The stockbroker said bank issues dropped on Tuesday after a jump in share prices in the previous day as investors took profits.

United Commercial Bank topped the turnover leaders on the day with Tk 34.19 crore. Other turnover leaders were Aftab Automobiles, One Bank, MI Cements, LankaBangla Finance, Southeast Bank, Beximco, City Bank, National Bank, and Grameenphone.

Source : New Age

BPC wants to borrow $250m from 3 multinational banks

The Energy Division has forwarded a proposal of the Bangladesh Petroleum Corporation to the government's Hard-Term Loan Committee to allow it to borrow $250 million from three multinational banks for import of fuel.

Officials said that the Energy Division on Monday sent the committee the BPC's proposal to get permission to take loans from the HSBC, Standard Chartered and Citi Bank at an interest rate of 5.3 per cent.

If the Hard-Term Loan Committee, headed by finance minister AMA Muhith, approves the proposal, the banks will arrange a road show to collect the fund which will be loaned to BPC for six months, said a high official.

'The interest rate of the banks will be at par with the rate of the Islamic Development Bank, which is the major supplier of funds to the BPC,' he said.

BPC officials said that they were finding it difficult to arrange funds to import fuel oils, including diesel and kerosene, because of increased bills.

The annual oil bill will be increased to around $4-$5 billion in the next fiscal year because of the installation of a large number of oil-based power plants.

'The IDB will provide us around $700 million in the July-December period. We will also get the proceeds from selling fuel oils. But as their prices at the consumer end are lower than the import cost, BPC will need additional fund for continuing the import of fuel oils,' said the official.

The import of fuel oils will rise to around 6 million tonnes a year from around 4 million because of the oil-based power plants.

The BPC took loans worth $250 from the Standard Chartered Bank in FY2006-07 when the country's oil import bill was around $2 billion.

Source : New Age

Trade deficit to cross $8b: CPD

The country's trade deficit in the current financial year will cross $8 billion, Centre for Policy Dialogue executive director Mustafizur Rahman has said.

Reviewing the latest updates of export-import data, he told the news agency on Monday that the trade deficit stood at $6.43 billion in the first 10 months of the 2010-11 fiscal.

'This figure is much higher than any whole-year deficit in the past. The deficit will cross $8 billion mark if the accounts of the last two months are added,' he said.

The trade deficit was $4.5 billion in the first 10 months of 2009-10 fiscal year and $5.152 billion in the year.

According to the central bank statistics, Bangladesh imported goods worth $24.745 billion while exported products valued at $18.315 in the first 10 months of the current fiscal year.

Most of the export earnings, $14.17 billion, came from readymade garment sector.

Bangladesh Bank statistics suggest that import expenditure outpaced the export earnings during the period.

According to the statistics, export earnings increased by 41.13 per cent while import cost increased by 41.51 per cent.

In 2009-10 fiscal year, export earning went up by 4.11 per cent and import expenditure by 5.47 per cent.

The CPD executive director said: 'Trade deficit is always there in our country. But this time the deficit will be higher than any other past period. Basically, the rise in import expenditure led to the trade deficit.'

'Prices of food, fuel, oil and every other thing increased in the global market. Import of these goods also rose due to higher demand. So the import expenditure also went up,' he explained.

Mustafizur also said: 'Fuel import rose due to establishment of rental power plants. Import of fabrics and yarns also increased as export of garments rose. A large amount of money was spent on these heads.'

Trade deficit registered a record high in 2007-08 fiscal year as the country had to import a large amount of food following Sidr, a devastating storm that hit Bangladesh in November 2007 destroying crops of its southern areas.

The deficit was $5.33 billion that fiscal year and $4.71 in the following one.

It was $2.21 billion, $2.31 billion, $3.29 billion, $2.88 billion and $3.45 billion in the fiscal years from 2002-03 to 2006-07 respectively.

In his budget speech for 2011-12 fiscal year, finance minister AMA Muhith said: 'We've taken a number of programmes to develop the investment condition by improving power, infrastructures and other sectors.'

'Trade deficit has increased due to the rise in fuel price and fuel import volume and import of machinery for power plants that we are constructing,' he added.

The finance minister also said the situation would improve soon.

'A foreign-investment-friendly field will be created by improving power sector and infrastructures. It'll help decrease trade deficit,' he said.

Source : New Age

Divisional tree fair launched in Khulna

Khulna divisional tree plantation and fair 2011, jointly organised by the Khulna district administration and Sundarban West Zone of the Forest Department, began in the Khulna city Tuesday.

Khulna mayor Talukder Abdul Khaleque inaugurated the programme at

the Shaheed Hadis Prak as the chief guest of the ceremony.

The speakers at the programme called on the general public to plant more trees and present their relatives with plants of local species and friends on special occasions.

Earlier, a colourful procession was brought out from the Khulna Circuit House premises to end at the fair ground at Shaheed Hadis Park after parading the main city roads.

Representatives from the government departments, non-governmental organisations and different civic groups, students of different schools and journalists attended the programme.

The fair has 42 stalls and a nursery pavilion with a number of nurseries, showcasing a range of medicinal, garden, forest and fruit-bearing species, said the organisers.

The 15-day fair will be open from 10:00am to 8:00pm every day and end on July 12.

Chaired by Khulna deputy commissioner Jomsher Ahmmad Khandokar, the inauguration was addressed, among others, by Khulna divisional commissioner Mohammad Moshiur Rahman, Khulna Superinten-dent of Police Tanvir Hayder Chowdhury, Khulna circle conservator of forest Mohammad Akbar Hossain and Sundarban West Zone divisional forest officer Johir Uddin Ahmed.

Source : New Age

Demo continues at SAU

The Sylhet Agricultural University students continued their agitation on Tuesday, demanding adjustment in the existing credit system for evaluation.

Campus sources said no academic activities, including classes and scheduled examinations, were held on the day as the students locked the administrative and academic buildings.

The vice-chancellor and other officials and employees could not enter their offices as the students locked the two entrances of the administrative building at about 8:30am.

Students of the fisheries department said two scheduled examinations of the level 3 students were postponed as the authorities could not enter the administrative building to collect the question papers.

Being contacted, fisheries faculty dean Matiar Rahman Hawladar told New Age in the afternoon that new schedule of the postponed examinations would be announced later.

The campus sources said the students at first locked the entrances of the administrative building and then all faculty buildings on the campus.

The students also set fire to tyres in front of the university buildings and at all the roundabouts, brought out processions and held rallies on the campus in protest at the authorities' decision not to allow a student's promotion if he/she fails in more than 20 per cent examinations of the credit courses in a semester.

They students, however, unlocked the faculty buildings after 1:00pm, but kept the administrative building locked till 5:00pm.

The university proctor, Anwar Hossein, told New Age that they should not support the students' demand, because the quality of education system of the university would fall if the demand was met.

'The authorities will rather take a sterner position in this regard,' he added.

The first and second batches' students of SAU began the movement on Wednesday last, demanding the credit limit at 40 per cent.

Source : New Age

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty wind is likely at most places over Rajshahi, Rangpur, Dhaka, Khulna, Barisal, Chittagong and Sylhet divisions till 6:00pm today.

Moderately heavy to heavy falls are also likely at places, Met Office said.

Day temperature may remain nearly unchanged over the country.

The sun sets in the capital today at 6:50pm and rises tomorrow at 5:15am.

The country's highest temperature, 36.0 degrees Celsius, was recorded on Tuesday in Jessore and the lowest, 24.4 degrees, in Feni.

Source : New Age

RU to form committee for TSCC

The Rajshahi University authorities will form a 15-member committee for taking steps to open its Teachers Students Cultural Centre as soon as possible.

The decision to set up the committee came out at a RU syndicate meeting, presided over by vice-chancellor Abdus Sobhan, at his residence on Monday night.

The VC, however, could not say when exactly the committee would be formed. 

Meanwhile, the students, in continuance of their movement, brought out a procession and staged songs and dramas on the campus Tuesday morning.

Source : New Age

JnU discloses 2011-12FY budget

The Jagannath University authorities on Tuesday announced Tk 29.98 crore budget for the fiscal year 2010-11

The 39th syndicate meeting of the university approved the annual budget for the university on Monday.

JnU treasurer Professor Shawokat Jahangir disclosed the budget at a news briefing in the university vice-chancellor's conference room at about 1:00pm where vice-chancellor Professor Mesbahuddin Ahmed was present.

Of the total budget, the University Grants Commission will give Tk 21.68 crore and the university would manage Tk 8.30 crore from its own income.

Like every year, the lion part of the budget, which is about 67 per cent, will be spent for salary and allowances of the teachers and officials.

This year 13.30 per cent of the total budget will be spent in education-related areas while 12.3 per cent will be spent in general services.

Tk 25 lakh will be spent for central library renovation, Tk 7 lakh on research work and 8.80 per cent of total budget will be spent for repair, collecting resources and transport. 

University registrar Mohammad Ohiduzzaman, acting proctor Asoke Kumar Saha, public relations officer Sayed Faruk Hossain and publication officer Md Saiful Islam were present on the conference.

Source : New Age

KCC places Tk 179.64cr budget

The Khulna City Corporation on Tuesday announced Tk 179.64 crore budget for 2011-2012 financial year, imposing no additional taxes.

The mayor, Talukder Abdul Khaleque, declared the budget at Shaheed Altaf Auditorium of Nagar Bhaban in the city He announced the revised budget of Tk 150.28 crore for 2010-2011 financial year against the proposed budgetof 159.19 crore andsaid inadequate tax collection and government allocation were responsible for it.

In the proposed budget, Tk 54.83 crore would be spent from KCC's own income and the rest Tk 124.81 crore from government allocation for development projects.

Marking the 2011-2012 fiscal year as the year of development of the city, the mayor declared that no new holding and business taxes would be imposed this year.

He said Tk 19.60 crore would be spent for public works, Tk 2 crorer for emergency water sector, Tk 3.40 crorer for public health sector and Tk 5.05 crore for conservancy sector from the government's annual development projects. Besides, if the corporation gets Tk 10 crore, it would be spent for public works, he added. 

He said Tk 77.26 crore would be spent in government approved seven projects including road and footpath extension, infrastructure development, establishing sanitary landfill, establishing linier park by the side of River Moyur,  urban public and environmental health sector development and Bangladesh municipal development fund.

The budget also allocated Tk 7.50 crore in a project for development of slum dwellers' socio-economic development funded by World Bank and different donor agencies.

The budget declaration ceremony, chaired by KCC finance and establishment standing committee chairman Memori Sufia Rahman Sunu, was also attended by KCC panel mayors – Ajmol Ahmed Tapan, and Ruma Khatun and chief executive officer Tapan Kumar Ghosh.

Source : New Age

CCC proposes Tk 915cr budget for 2011-12FY

Chittagong mayor M Manjur Alam proposed a budget of 915.16 crore for the fiscal year 2011-12 on Tuesday.

He had announced this at a budget session held at the Theatre Institute of the Chittagong city.

Allocations under six major heads in the proposed budget are Tk 446.64 crore for development works, Tk 126.59 crore for staff salary and allowance, Tk 118.45 crore for immovable properties, Tk 103.60 crore for paying dues, Tk 25.45 crore for maintenance and repairs, and Tk 27 crore for power, fuel and water bills.

Allocations under three smaller heads are Tk 6.16 crore for welfare activities, Tk 3.15 crore for rents and taxes and Tk 2.8 crore for advertisement and publicity.

Besides, Tk 34 crore has been allocated for some other minor items while the rest Tk 21.30 crore has been kept under the head of other expenditure.

The CCC expects to draw Tk 640.87 crore of the total budget from its own sources while Tk 274 crore as assistance and donation.

The major sources of its revenues will be Tk 352.90 crore as outstanding holding taxes, 135.40 crore as current holding taxes, Tk 73.18 crore as other taxes, 29.16 crore as rents of different establishments and Tk 18.12 crore as different fees.

The rest of the revenues will come from different smaller sources.

A revised budget of Tk 325.69 crore was also approved against the proposed budget of Tk 741.52 crore for the 2010-11 financial year at the meeting.

The mayor, while presenting the budget, said that they had sent three projects to the local government ministry for approvals.

The biggest of these is a coordinated project involving Tk 344 crore to construct, repair and maintain the roads, footpaths and parks.

The rest two projects are for enhancing tourism facilities at the Patenga sea beach involving Tk 100 crore and setting up garbage disposal plant with a budget of Tk 25 crore.

The mayor also revealed a Tk 1,500 crore plan to construct a flyover stretching from Dewanhat to Shah Amanat International Airport and Tk 2,500 crore plan to set up a 500MW power plant.

He, however, mentioned that the projects were not included in the proposed budget as their sources of funding were not certain yet, adding that they had thought to implement the projects under the public-private partnership.

Source : New Age

CNG auto-rickshaw strike withdrawn

Owners and drivers of CNG-run auto-rickshaws on Tuesday called off the indefinite strike they had earlier announced from July 3 after the government's assurance for extending 'economic life' of the three-wheelers by two years.

The government, however, has decided not to further raise the fare and deposit of the Compressed Natural Gas-run auto-rickshaws operating in Dhaka and Chittagong as demanded by the owners and the drivers.

'We have decided to extend the economic life of a CNG-run auto-rickshaw by two years on the recommendation of BUET and the owners and workers of the three-wheelers have agreed to withdraw their strike,' secretary to the Roads and Highways Division Mozammel Haque Khan told reporters after a meeting with representatives of the CNG-run auto-rickshaw owners and workers at the secretariat.

The drivers complained to the government that many of the owners realise Tk 800 to Tk 1000 for each auto-rickshaw although the daily deposit was fixed at Tk 600. They also alleged that police very often harass the drivers to realise 'kickbacks' from them.

There has been a common allegation against the drivers that they were always unwilling to go on meter. The drivers on the other hand say they have to pay more than the government-fixed rate to the owners for the three-wheelers.

'We will take stern measures against the owners if they realise from any driver more than Tk 600 set by the government,' Mozammel warned.

He said that the errant owners would not be allowed to replace their old three-wheelers whenever these vehicles would expire their economic life.

Senior officials from the Bangladesh Road Transport Authority, police and the roads and highways division attended the meeting, among others.

The meeting also decided that the police would be more active to remove harassments of passengers by the CNG drivers.

The Bangladesh University of Engineering and Technology earlier recommended extension of the auto-rickshaws' 'economic life' from nine years to 11 years.

The CNG-run auto-rickshaws were introduced in 2003 when the daily deposit against one auto-rickshaw was fixed at Tk 300 which been revised to Tk 600 in 2011 and fare for fist two kilometres was Tk 12 in 2003 which was revised to Tk 25 following price hike of fuel and spare parts in 2011.

The Dhaka District Auto-rickshaw Workers' Union had demanded that the minimum fare be raised by Tk 10 and fare for the next every kilometre by Tk 2 in Dhaka and Chittagong cities.

Dhaka Metropolitan CNG Auto-Rickshaw Owners' Association had demanded the daily deposit be increased to Tk 750. 

'We have agreed to withdraw the strike as the government has extended the economic life of the auto-rickshaws by two years. The fare and the deposit will remain the same,' the association's president Barkat Ullah Bhulu told New Age.

CNG-run auto-rickshaw drivers at a rally on Saturday called for an indefinite strike from July 3 to press home their 10-point demand which included an increase in the fare in keeping with the of CNG price hike.

Their demands also included punitive measures against the auto-rickshaw owners who collect extra money from drivers ignoring the government-fixed deposit, end to police harassment in the name of checking driver's licence, a new hassle-free system of obtaining drivers' licence and parking space for auto-rickshaws at different places.

Source : New Age

Divisional tree fair launched in Khulna

Khulna divisional tree plantation and fair 2011, jointly organised by the Khulna district administration and Sundarban West Zone of the Forest Department, began in the Khulna city Tuesday.

Khulna mayor Talukder Abdul Khaleque inaugurated the programme at

the Shaheed Hadis Prak as the chief guest of the ceremony.

The speakers at the programme called on the general public to plant more trees and present their relatives with plants of local species and friends on special occasions.

Earlier, a colourful procession was brought out from the Khulna Circuit House premises to end at the fair ground at Shaheed Hadis Park after parading the main city roads.

Representatives from the government departments, non-governmental organisations and different civic groups, students of different schools and journalists attended the programme.

The fair has 42 stalls and a nursery pavilion with a number of nurseries, showcasing a range of medicinal, garden, forest and fruit-bearing species, said the organisers.

The 15-day fair will be open from 10:00am to 8:00pm every day and end on July 12.

Chaired by Khulna deputy commissioner Jomsher Ahmmad Khandokar, the inauguration was addressed, among others, by Khulna divisional commissioner Mohammad Moshiur Rahman, Khulna Superinten-dent of Police Tanvir Hayder Chowdhury, Khulna circle conservator of forest Mohammad Akbar Hossain and Sundarban West Zone divisional forest officer Johir Uddin Ahmed.

Source : New Age

Demo continues at SAU

The Sylhet Agricultural University students continued their agitation on Tuesday, demanding adjustment in the existing credit system for evaluation.

Campus sources said no academic activities, including classes and scheduled examinations, were held on the day as the students locked the administrative and academic buildings.

The vice-chancellor and other officials and employees could not enter their offices as the students locked the two entrances of the administrative building at about 8:30am.

Students of the fisheries department said two scheduled examinations of the level 3 students were postponed as the authorities could not enter the administrative building to collect the question papers.

Being contacted, fisheries faculty dean Matiar Rahman Hawladar told New Age in the afternoon that new schedule of the postponed examinations would be announced later.

The campus sources said the students at first locked the entrances of the administrative building and then all faculty buildings on the campus.

The students also set fire to tyres in front of the university buildings and at all the roundabouts, brought out processions and held rallies on the campus in protest at the authorities' decision not to allow a student's promotion if he/she fails in more than 20 per cent examinations of the credit courses in a semester.

They students, however, unlocked the faculty buildings after 1:00pm, but kept the administrative building locked till 5:00pm.

The university proctor, Anwar Hossein, told New Age that they should not support the students' demand, because the quality of education system of the university would fall if the demand was met.

'The authorities will rather take a sterner position in this regard,' he added.

The first and second batches' students of SAU began the movement on Wednesday last, demanding the credit limit at 40 per cent.

Source : New Age

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty wind is likely at most places over Rajshahi, Rangpur, Dhaka, Khulna, Barisal, Chittagong and Sylhet divisions till 6:00pm today.

Moderately heavy to heavy falls are also likely at places, Met Office said.

Day temperature may remain nearly unchanged over the country.

The sun sets in the capital today at 6:50pm and rises tomorrow at 5:15am.

The country's highest temperature, 36.0 degrees Celsius, was recorded on Tuesday in Jessore and the lowest, 24.4 degrees, in Feni.

Source : New Age

Second Int’l Bangabidya Confce in Dec

The prime minister, Sheikh Hasina, will be the chief guest at the Second International Bangabidya Conference 2011 to be held in December on the Dhaka University campus.

She agreed to inaugurate the conference when a delegation of the Bangabidya Conference led by Dhaka University vice-chancellor professor AAMS Arefin Siddique invited the prime minister during a meeting with her at the Prime Minister's Office on Tuesday morning.

Prime minister's press secretary Abul Kalam Azad briefed newsmen after the meeting.

The 3-day conference will be held December 18-20 at the Senate Bhaban of Dhaka University.

Addressing the delegation, the prime minister asked the authorities of the country's universities to maintain congenial atmosphere on the campuses.

She said the situation on the campuses needs to be made more peaceful and congenial for the greater interests of the nation.

Principal secretary to the prime minister MA Karim, director general of Bangla Academy Shamsuzzaman Khan and Nazrul Researcher Rafiqul Islam were, among others, present.

The first International Bangabidya Conference was held on February in 2010 at the Delhi University.

Researchers, teachers and students of various universities at home and abroad are expected to attend the 2nd international conference.

A 47-member conference preparatory committee headed by DU VC Arefin Siddique has been working to make the conference a success.  The committee has so far received over 300 articles/proposals for presentation at the conference.

Professor Emeritus Anisuzzaman is the academic president of the conference.

Source : New Age

National budget of 2011-12 FY did not reflect farmers’ interest: UBINIG

Policy advocacy and research organization Unnayan Bikalper Nitinirdharoni Gobeshona (UBINIG) on Tuesday said the national budget for 2011-12 fiscal year did not reflect the farmers' interest.

They made the observation at a press conference on the proposed budget for FY2011-12 at the National Press Club.

UBINIG leader MA Sobhan, who read out an article at the conference, said that the agriculture sector was given an allocation of 5.4 per cent of the total budget in FY2010-11, but the allocation has been reduced to 4.7 per cent in the proposed budget for FY2011-12.

He said that the budget emphasized the supplying hybrid and modified seeds to the farmers in the name of providing developed varieties though hybrid and modified seeds were yet to be proved to be seeds of higher quality.

'The farmers do not want to cultivate hybrid seeds as their production is affected if there is any environmental problem in the season,' Sobhan said.

He said that agricultural production cost had increased in recent times and the farmers needed more help for production, suggesting that agricultural subsidy should be given to the farmers directly.

He opined that applying granular urea for increasing soil fertility would not bring any positive result and suggested for  using organic fertilizers.

The proposed budget did not have any practical measure to solve the problems of jute, he alleged, adding that the country needed 5,000 to 5,500 tonnes of jute seeds of which more than half is imported from India.

The imported Indian seeds are of low quality and hence the country is producing low quality jute which means that it is only giving India the opportunity to continue their seed business in Bangladesh, he alleged.

UBINIG demanded for stopping introduction of hybrid paddy, encouraging local varieties that can tolerate local weather and climate change impacts, considering agricultural research as a priority sector and preserving environment and saving arable land by discouraging tobacco cultivation.

UBINIG executive director Farida Akhter and senior researcher Jahangir Alam Jony also spoke at the press conference.

Source : New Age

Yangon keen to open air link with Dhaka soon

Myanmar has expressed its keen interest to open direct air link with Bangladesh shortly as part of further improving mutual cooperation between the two countries.

This was conveyed by chief of army staff General Abdul Mubeen, who visited Myanmar recently, when he called on the president at Bangabhaban on Tuesday.

Gen Abdul Mubeen, who visited Myanmar from May 23-27, informed the president that Myanmar has also shown interest to work jointly with Bangladesh on road connectivity and fighting counter-terrorism.

He said that Myanmar has offered Bangladesh to explore the natural resources and utilise their unused cultivable lands for food production on partnership basis.

The army chief, who is also the president of Bangladesh Olympic Association, informed the president that he would join the Asian Olympic Committee conference to be held in Tokyo on July 14-16.

Source : New Age

Nine acquitted BGB men released from Kashimpur jail

Nine members of Border Guard Bangladesh, who were acquitted from the charges of BDR Mutiny of February 25-26, 2009, were released from Kashimpur jail on Tuesday, officials said.

'They were set free and reinstated in the paramilitary force in the afternoon,' the 24 BG Battalion commanding officer, Major Khan Mohammad Alauddin, told New Age.

Of the acquitted, only three pleaded guilty and four were not present at Pilkhana during the mutiny, the BGB officials said.

Subash Chandra Ghosh, the jailor of Kashimpur Central Jail unit-2, said that they were released in the afternoon following a special court order issued on June 27.

On Monday, the special court-7 chaired by the BGB director general, Major General Rafiqul Islam, acquitted nine out of 666 accused of the mutiny.

The acquitted BGB soldiers are : Havildar Abdul Khalek, Nayek Tapan Kumar Devnath, Lance Nayek Abul Kalam Azad, Sepoys Sheikh Md Shamim Reza, Mohammad Reazul Islam, Shaheen Farazi, Rabiul Islam, Emran Miah and Habibur Rahman.

So far, 72 BGB soldiers have been acquitted of the mutiny charges by different specials courts.

Source : New Age

London terrorist linked to Bangladeshis

Shabaaz Hussain, the suspected terrorist fundraiser who appeared in London's Westminster Magistrate court on Monday, was linked back to Bangladeshi men in Somalia.

He was accused of sending money to three Bangladeshi nationals in the east African country between January 1 and October 22 last year. It was said the money was used for 'al-Qaeda-inspired' terrorism training.

Shabaaz, 27, from Jamaica Street, Stepney in Tower Hamlets, east London, spoke only to confirm his name, address and date of birth at the City of Westminster Magistrates' Court in central London.

The charge stated that between January 1, 2009 and October 22 last year, he was engaged in the criminal conduct with the intention of committing an act of terrorism, or advising, coaching and helping others to engage for such an act. He was remanded in custody to appear before the Old Bailey Court in London on July 15.

Source : New Age

MA Kashem re-elected NSUF chairman, Yasmin Kamal treasurer

MA Kashem and Yasmin Kamal, both founder and lifetime members of the North South University Foundation, have been re-elected chairman and treasurer respectively of the endowment committee of the foundation.

The NSUF endowment committee re-elected them for another term of one year in its 19th general meeting on June 23, said a press release.

An industrialist, MA Kashem was a former president of the Federation of Bangladesh Chambers of Commerce and Industries, founder chairman of Southeast Bank Limited and former chairman of the Association of the Private Universities of Bangladesh.

He also served as the member of the syndicate of Jahangirnagar University of Bangladesh and Bangladesh Open University in two consecutive terms, the press release said.

Yasmin Kamal, also an industrialist, is a director of National Credit and Comm-erce Bank Limited, it added.

Source : New Age

Amu says there is still scope for discussion on constitution amendment

Senior Awami League lawmaker Amir Hossain Amu on Tuesday said there is still chance for discussion on the caretaker government issue and it could take place in parliament or anywhere.

Amu said that discussion was the only means to bring something positive which would be accepted by all.

He criticised the opposition BNP for not responding to the government's call for discussion on the caretaker and constitution amendment issues.

'They are eager to take the country on a different track,' he said while discussing on proposed budget in parliament.

Amu lamented at BNP's absence in the special committee on constitution amendment.

On the constitution amendment issue, he blamed the subsequent governments after 1975 for changing the constitution frequently.

Amu urged the opposition to shun their negative politics and come for a dialogue for reaching a consensus on the important national issues.

On the court's authority to amend the constitution, Amu said there were instances of accepting the court's ruling on constitution amendment in the past.

'If the court can be the guardian and interpreter of the constitution, it has the authority to cancel any provision which is contradictory to the basic principles of the constitution,' he said.

Source : New Age

Dhaka calls advancing peace among OIC states

The foreign minister, Dipu Moni, has called for advancing peace and development through greater cooperation among OIC member states based on the ideals of compassion, justice, dignity, tolerance and unity.

She made the call when she was addressing the Council of Foreign Ministers of the 57-member Organisation of the Islamic Conference, re-named as Organisation for Islamic Cooperation, in Astana, the capital of Kazakhstan on Tuesday.

The minister, during her statement at the 38th session of the council, also stressed on the need for enhancing intra-OIC trade and reducing resource gap between developed and developing countries, said a message received in Dhaka.

In the context of the ongoing political turmoil in some of the OIC members in the Middle-East and North Africa, she emphasised on meeting the legitimate needs of the people by ensuring good governance and socio-economic development.

She also urged the international community, particularly the Quartet, to force Israel to stop its unlawful practices and create conditions for the establishment of an independent Palestinian State in its pre-1967 borders, with Jerusalem as its capital in the interests of world peace and security.

During the meeting, Dipu Moni handed over the Instrument of Ratification of the TPS-OIC Rules of Origin to the secretary general.  The Trade Preferential System of the OIC came into force with Bangladesh's ratification of this protocol. With the Trade Preferential System and related protocols in force, the intra-OIC trade is now expected to receive new momentum.

Source : New Age

Ethnic languages need government patronage to survive

Academics, students, poets and rights activists on Tuesday called upon the government to patronise the languages of ethnic communities to prevent them from becoming extinct.

'Everyday in the world 14 languages are becoming extinct, mainly for the lack of patronage, particularly by the governments,' said speakers at a recitation programme.

The recitation programme, titled 'Recitation of mother languages of the indigenous communities', was jointly organised by the Jum Literature Young Society and Kapaeeng Foundation.

The poets of the ethnic communities expressed their concern over insufficient patronage of the ethnic cultures, languages and literature by the government.

Speakers pointed out that in Bangladesh there are more than 45 languages as more than 75 ethnic communities are living in the country.

Lawmaker Jatindra Lal Tripura, who is also chairman of the Taskforce for Repatriation of Tribal Refugees and the Rehabilitation of Internally Displaced People, said that this diversity of languages and cultures in the country needs to be preserved and necessary steps need to be taken to nurture the languages and cultures of ethnic communities.

Poet AK Sheram, who is a member of the Monipuri ethnic community, said, 'Sufficient steps need to be taken at the national level, otherwise these colourful languages will be lost. I believe that would be quite regrettable, irrespective of the communities' identity.'

Dhaka University's Professor Robayet Ferdous said that the recognition of 21 February as International Mother Language Day did not only mean the patronisation of the Bangla language. Such recognition also demands that the government understands and shows love and respect for the languages of other communities also.

Stressing the need for ensuring the cultural rights of the ethnic communities, Abhilash Tripura of ILO said, 'As we all believe in unity in diversity, the government needs to take the necessary steps to prevent these ethnic languages from becoming extinct.'

Poets Muhammad Samad and Sarat Jyoti Chakma, and rights activist Lina Jesmin Lushai also took part in the discussion, along with others.

Later on, more than 25 poems in 15 different ethnic languages, including Bangla, were recited in the programme.

Source : New Age