$600m loan deal to be signed with Japan tomorrow
Tuesday, 17 May 2011
FE Report
Finance Minister AMA Muhith Monday said the government will sign a loan agreement worth over US$ 600 million with Japan Wednesday for three major projects including that of Padma Multipurpose Bridge (PMB). Mr Muhith said the fund will include $ 400 million for Padma Bridge, $ 160 million for Khulna Water Supply Project and $ 65 million for the SMEs (small and medium enterprises). The finance minister was speaking as the chief guest at a meeting organised by Metropolitan Chamber of Commerce and Industry (MCCI) held at its city office. The MCCI organised the meeting to mark the unveiling of a research paper on 'The Impact of War and Political Tensions in the Middle-East and North Africa (MENA) and Japan Crises on the Bangladesh Economy: Evidence from Macroeconomic Review and Call Reports'. "As far as Japanese assistance to Bangladesh is concerned, there is no question of their wavering from what they (Japan) have committed," said Muhith. The finance minister said negotiations for the Asian Development Fund (ADF) to Bangladesh is in the final stage and it is expected that the amount would be 50 per cent larger than that of the previous year. Mr Muhith also said after the Japan crisis, there may not be any problem in exports, but as far as import is concerned there could be some problems. The present global prices of fuel and commodities may also affect the situation. Labour, Employment and Expatriates Welfare Minister Engineer Khandaker Mosharraf Hossain attended the function as the special guest which was chaired by MCCI President Maj Gen (retd) Amjad Khan Chowdhury. Professor and Director of BRAC Business School Mamun Rashid presented the research paper while Centre for Policy Dialogue (CPD) Executive Director Prof Mustafizur Rahman, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Shafiul Islam Mohiuddin and Bangladesh Association of International Recruiting Agencies (BAIRA) Secretary General Ali Haider Chowdhury attended the programme as panel discussants. Khandaker Mosharraf Hossain said the manpower export during January-April period of this year increased by 14 per cent over the same period in 2010 despite the Middle-East and Japan crises. He said manpower export was 153,000 during the first four months of this year against 134,000 in the previous year. Mr Mosharraf said establishment of the Expatriate Welfare Bank will go a long way in meeting the migration cost as well as channelling of the remittances. The minister said Bangladesh and Malaysia governments have agreed to raise the job period up to five years with provision for extension of another five years instead of the existing two years. He said the government will ensure better and more welfare-oriented projects through Colombo process. He said the government has taken a move to set up 36 technical training centres in addition to the existing 30 centres. "The centres will train 50,000 more workers in 46 different trades every year," the minister added. It will ensure at least 100,000 skilled workforce every year, he said. Prof Mustafizur Rahman said tsunami in Japan has created some opportunity for Bangladesh's export market. He also said there is a very strong demand for bringing discipline in the manpower export sector as well as safeguarding the interests of the workers. Shafiul Islam Mohiuddin said around 25-30 per cent skilled labour forces always remain idle in the ready-made garment (RMG) sector. "So, we need to have a rigorous campaign for skill development." Mr Mohiuddin said the RMG sector is ready to hire skilled manpower repatriated from the crisis-torn countries. FBCCI Director Abdul Momen said Bangladesh's raw material import has become costlier following the Middle-East and Japan crises. He said China, the prime supplier of Bangladesh's industrial raw materials, had increased the prices of the import items leading to rise in the prices of finished products. Ali Haider Chowdhury said the government should declare the manpower business as an industry and a thrust sector. Earlier in his presentation, Mamun Rashid suggested some short-term, mid-term, and long-term measures that included attaching the highest priority by the government to working together with the private sector to overcome the manpower export crisis. The government should train up workers to help them meet the market demand before sending them to new destinations, he said. He also maintained that the ministry concerned needed to actively search for alternative job markets in Europe, Australia, East Asia and Africa. Mr Mamun said the government needs to take steps for opening up the closed markets. The commercial banks need to come up with assistance for the returnees, reducing migration costs and providing some cash support for adjusting initial cost of resettlement, he added. International Chamber of Commerce-Bangladesh President Mahbubur Rahman and Dhaka Chamber of Commerce and Industry President Asif Ibrahim were present, among others, in the function. MCCI Vice-President Barrister Nihad Kabir gave the vote of thanks.
Finance Minister AMA Muhith Monday said the government will sign a loan agreement worth over US$ 600 million with Japan Wednesday for three major projects including that of Padma Multipurpose Bridge (PMB). Mr Muhith said the fund will include $ 400 million for Padma Bridge, $ 160 million for Khulna Water Supply Project and $ 65 million for the SMEs (small and medium enterprises). The finance minister was speaking as the chief guest at a meeting organised by Metropolitan Chamber of Commerce and Industry (MCCI) held at its city office. The MCCI organised the meeting to mark the unveiling of a research paper on 'The Impact of War and Political Tensions in the Middle-East and North Africa (MENA) and Japan Crises on the Bangladesh Economy: Evidence from Macroeconomic Review and Call Reports'. "As far as Japanese assistance to Bangladesh is concerned, there is no question of their wavering from what they (Japan) have committed," said Muhith. The finance minister said negotiations for the Asian Development Fund (ADF) to Bangladesh is in the final stage and it is expected that the amount would be 50 per cent larger than that of the previous year. Mr Muhith also said after the Japan crisis, there may not be any problem in exports, but as far as import is concerned there could be some problems. The present global prices of fuel and commodities may also affect the situation. Labour, Employment and Expatriates Welfare Minister Engineer Khandaker Mosharraf Hossain attended the function as the special guest which was chaired by MCCI President Maj Gen (retd) Amjad Khan Chowdhury. Professor and Director of BRAC Business School Mamun Rashid presented the research paper while Centre for Policy Dialogue (CPD) Executive Director Prof Mustafizur Rahman, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Shafiul Islam Mohiuddin and Bangladesh Association of International Recruiting Agencies (BAIRA) Secretary General Ali Haider Chowdhury attended the programme as panel discussants. Khandaker Mosharraf Hossain said the manpower export during January-April period of this year increased by 14 per cent over the same period in 2010 despite the Middle-East and Japan crises. He said manpower export was 153,000 during the first four months of this year against 134,000 in the previous year. Mr Mosharraf said establishment of the Expatriate Welfare Bank will go a long way in meeting the migration cost as well as channelling of the remittances. The minister said Bangladesh and Malaysia governments have agreed to raise the job period up to five years with provision for extension of another five years instead of the existing two years. He said the government will ensure better and more welfare-oriented projects through Colombo process. He said the government has taken a move to set up 36 technical training centres in addition to the existing 30 centres. "The centres will train 50,000 more workers in 46 different trades every year," the minister added. It will ensure at least 100,000 skilled workforce every year, he said. Prof Mustafizur Rahman said tsunami in Japan has created some opportunity for Bangladesh's export market. He also said there is a very strong demand for bringing discipline in the manpower export sector as well as safeguarding the interests of the workers. Shafiul Islam Mohiuddin said around 25-30 per cent skilled labour forces always remain idle in the ready-made garment (RMG) sector. "So, we need to have a rigorous campaign for skill development." Mr Mohiuddin said the RMG sector is ready to hire skilled manpower repatriated from the crisis-torn countries. FBCCI Director Abdul Momen said Bangladesh's raw material import has become costlier following the Middle-East and Japan crises. He said China, the prime supplier of Bangladesh's industrial raw materials, had increased the prices of the import items leading to rise in the prices of finished products. Ali Haider Chowdhury said the government should declare the manpower business as an industry and a thrust sector. Earlier in his presentation, Mamun Rashid suggested some short-term, mid-term, and long-term measures that included attaching the highest priority by the government to working together with the private sector to overcome the manpower export crisis. The government should train up workers to help them meet the market demand before sending them to new destinations, he said. He also maintained that the ministry concerned needed to actively search for alternative job markets in Europe, Australia, East Asia and Africa. Mr Mamun said the government needs to take steps for opening up the closed markets. The commercial banks need to come up with assistance for the returnees, reducing migration costs and providing some cash support for adjusting initial cost of resettlement, he added. International Chamber of Commerce-Bangladesh President Mahbubur Rahman and Dhaka Chamber of Commerce and Industry President Asif Ibrahim were present, among others, in the function. MCCI Vice-President Barrister Nihad Kabir gave the vote of thanks.