Bhutan, one of the four LDCs from South Asia, is also expected to grow by 7.1 percent in 2018 by taking benefits from infrastructure investments.

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1 DSEX 6, Gold (Ounce) $1, Dollar (Buy) (Sell) REPO Rate (12/12/2017) 3.67% CSCX 11, Oil (Barrel) $57.36 Euro (Buy) (Sell) REPO Rate (11/12/2017) 3.75% Source: DSE and CSE Source: Yahoo Finance Source: One Bank Limited Source: Bangladesh Bank (W AV) National News Bangladesh to be among fastest growing LDCs in 2018: UN ADB keeps BD's growth projection unchanged Current account deficit widens Revenue target daydreams continue Private bank MDs grappling with board interference Demand for laptop defies dim forecasts Trade volume rises sharply at DSE, CSE Sustainable development must be financed from domestic resources Fund raising through IPO drops DSE foreign trade turnover doubles in November BSEC approves UCB bond, fines two brokerage houses দ দককক ম থ য বক ক ন আবদ হ ই ব চ চ ম এ ম ক এখন আম ফ য ন ফয কচ ম কক ম প মন International News Bitcoin hits new record high as warnings grow louder France, Germany to unveil eurozone reforms in March Britain, China speed up bid to link stock markets National News Bangladesh to be among fastest growing LDCs in 2018: UN Bangladesh is projected to be among the fastest growing least developed countries in 2018 with the expected GDP growth of 7.1 percent, supported by vigorous domestic demand, according to a new report of the United Nations. The UN's World Economic Situation and Prospects 2018 Report launched yesterday said: The Bangladesh economy is set to continue expanding at a rapid pace, underpinned by strong domestic demand, especially large infrastructure projects and new initiatives in the energy sector. In Bangladesh, the growth of gross domestic product is expected to remain above 7.1 percent in 2018 and 7.2 percent in 2019, according to the UN's flagship publication on expected trends in the global economy. Bhutan, one of the four LDCs from South Asia, is also expected to grow by 7.1 percent in 2018 by taking benefits from infrastructure investments. The UN report said growth in the LDCs is expected to rise modestly from an estimated 4.8 percent in 2017 to 5.4 percent in 2018 and 5.5 percent in the next year. The acceleration is due mostly to more favourable external economic conditions and, in particular, firming commodity prices, which support trade, financial flows and investment in natural resource projects and infrastructure, the report said. Despite having better prospects, the LDCs as a group will not be able to achieve the Sustainable Development Goal target of 8.1 percent this year, which calls for at least 7 percent GDP growth per annum. 1 P a g e

2 Nonetheless, some countries in the group will achieve average growth above or close to 7 percent in and the majority will grow at 5 percent or higher by the end of 2019, the report said. In 2017, inflation declined to record lows in India and Nepal, while it remained relatively muted in comparison to historical figures in Pakistan, Bangladesh and Iran. Inflation is expected to be 5.4 percent in 2018 and 5.5 percent in 2019 in Bangladesh. According to the report, fiscal deficit continues to be moderately high in Bangladesh, at about 5 percent of GDP. The report also said East and South Asia will remain the world's most dynamic and fastest-growing regions, supported by robust domestic demand and accommodative fiscal measures. In 2017, regional GDP expanded by 6 percent, outpacing the rest of the world. The economy is projected to remain relatively steady at 5.8 percent in 2018 and 5.9 percent in In South Asia, the economic outlook remains steady and favourable, driven by robust private consumption and sound macroeconomic policies. The positive outlook will contribute to further gradual progress in labour market indicators and a reduction in poverty rates. Monetary policy stances are moderately accommodative, while fiscal policies maintain a strong emphasis on infrastructure investment. Despite the improved short-term outlook, the global economy continues to face risks, including changes in trade policy, a sudden deterioration in global financial conditions and rising geopolitical tensions. The world economy also faces longer-term challenges. The report highlighted four areas where the improved macroeconomic situation opens the way for policy to address these challenges: increasing economic diversification, reducing inequality, supporting long-term investment and tackling institutional deficiencies. The report noted that reorienting policy to address these challenges can generate stronger investment and productivity, higher job creation and more sustainable medium-term economic growth. In South Asia, the reform agenda might experience some setbacks, while political instabilities could dampen investment prospects. The current macroeconomic environment in the region is conducive for policymakers to address longer-term issues and achieve greater progress on structural reforms, the report said. Source: ADB keeps BD's growth projection unchanged The Asian Development Bank (ADB) in its latest outlook supplement repeated its pared-down growth projection at 6.9 per cent for Bangladesh in the current fiscal year. In September last, the Bank in its Asian Development Outlook (ADO) 2017 Update had scaled down Bangladesh's economic growth to 6.9 per cent from the government-projected 7.4 per cent for the FY The Manila-based multilateral lending agency in its latest publication noted that Bangladesh's economic growth, as calculated by the government, surpassed ADB's forecast. "In Bangladesh, official national account figures for FY2017, ended 30 June 2017, released after the Update showed higher GDP (gross domestic product) growth than was estimated in September," said the Asian Development Outlook Supplement, released Wednesday. 2 P a g e

3 "For most of the rest of South Asia (including Bangladesh), growth projections are in line with those in the (ADO) Update," it said. Latest official figures have put Bangladesh's economy growth at 7.28 per cent for the FY , a 0.04 percentage points up from the provisional data, released six months ago. According to final calculation by the Bangladesh Bureau of Statistics (BSS), the GDP growth at constant price swelled by 0.14 percentage points to 7.28 per cent in the last FY2017 from 7.11 per cent in the previous FY2016. Meanwhile, growth outlook for developing Asia this year is upgraded to 6.0 per cent or 0.1 percentage points higher than the rate envisaged in September in the Asian Development Outlook 2017 Update, as unexpectedly strong expansion in Central, East, and Southeast Asia more than offsets a downward adjustment to growth forecasts for South Asia. In 2018, regional growth is expected to slow slightly to 5.8 per cent as predicted in the Update, it said. Excluding the newly industrialised economies of the Republic of Korea (ROK), Singapore, Taipei China, and Hong Kong, China, the growth outlook for the region is revised up to 6.5 per cent from 6.4 per cent for 2017 but unchanged at 6.3 per cent for The collective growth forecasts in the major industrial economies -the United States, the euro area, and Japan-are revised up to 2.2 per cent from 2.0 per cent for 2017 and to 2.1 per cent from 2.0 per cent for 2018, according to it. The upgrade reflects the third-quarter stronger-than-expected growth in the euro area, supported by domestic demand, and in Japan by private investment and net exports, it said. Source: Current account deficit widens The current account deficit further widened in the first four months of the fiscal year on the back of sluggish export earnings and higher import payments. At the end of October, the deficit stood at $3.31 billion, which was $44 million in the same period a year earlier, according to data from the central bank. Strong import growth coupled with a moderate rise in exports contributed to the current account deficit, said a Bangladesh Bank official. Between July and October, imports rose percent year-on-year and exports 7.63 percent. The government should take up initiatives to boost export earnings to tackle the large current account deficit, said Salehuddin Ahmed, a former governor of the BB. A moderate growth in remittance also left an adverse impact on the current account, he said. Bangladeshis living abroad sent home $5.76 billion in the first five months of the fiscal year, up percent from a year earlier. The growth of inward remittance in the July-November period was good but it has yet to reach the optimum level considering the lower remittance received last fiscal year. Expatriate Bangladeshis sent home $12.77 billion in fiscal , down percent year-on-year. Both the central bank and the government should take effective measures to give a boost to remittance flow, said the former governor. 3 P a g e

4 The central bank should also beef up its monitoring on the import process to see whether the goods brought in match the payments made against them. The local currency has been depreciating against the US dollar in the last few months due to higher import payments. The average taka-dollar exchange rate stood at Tk yesterday, which was Tk a year ago, according to central bank statistics. The trade deficit also widened percent year-on-year to $5.79 billion in the four months to October, BB data showed. Source: Revenue target daydreams continue Finance Minister AMA Muhith recently approved Internal Resources Division s proposal of Tk3,40,774cr revenue collection target. The Finance Division has once again set overly ambitious revenue targets for next fiscal, despite the revenue board s repeated failures to achieve set targets in the last several years. Finance Minister AMA Muhith recently approved Internal Resources Division s proposal of Tk3,40,774cr revenue collection target at the Fiscal Coordination Council meeting. This is 18% bigger than the current fiscal year s budget outlay in money terms Tk52,784cr higher. Muhith told reporters after the meeting that the final target will be settled in February next year. According to Finance Division sources, in October revenue collection fell short by Tk6,665cr in terms of four-month target. Revenue Board s target for October was Tk65,459cr. Total target for fiscal year is Tk2,87,990cr. This revenue target is equal to 13% of GDP. Economic think tank Center for Policy Dialogue (CPD) predicts that revenue collection will fall short by a margin of Tk43,000cr to Tk55,000cr in this fiscal, because of the government s failure to implement the new VAT law. According to the National Board of Revenue, the target will be Tk2,96,200cr while this fiscal it is Tk2,56,812cr. In the coming fiscal, non-nbr tax revenue will be Tk11,462cr, compared to this fiscal s Tk8,622cr. Revenue target from nontax sectors is Tk33,011cr next fiscal year, while this fiscal it is Tk31,179cr. NBR wants to collect Tk1,20,000cr from Value Added Tax in the coming fiscal year, which if met would make VAT the single biggest source of tax. The second highest sector in NBR s projection is income tax and profit, of about Tk94,000cr. In the current fiscal year, the government s budget is Tk4,00,266cr. This is equal to 18% of the GDP. The estimated budget for the next fiscal year is Tk4,68,200 crore, which is Tk67,934cr higher than the current fiscal year. Source: Private bank MDs grappling with board interference 'We are sued, interrogated and removed when an allegation of scams surfaces. But, we are not solely responsible for such misdeeds; rather, boards coerce us into doing things' 4 P a g e

5 Not so long ago, being a managing director of a bank was a sought-after job and one to which most bankers aspired. But the once prestigious position is increasingly losing its lustre among bankers due to the undue interference of banks board of directors in day-to-day activities of the management. Bank officials said an MD can grant a loan of up to Tk4-5 crore, and a proposal has to be tabled at board meetings for approval to disburse amounts bigger than this. Seeking anonymity, the MD of a private bank told the Dhaka Tribune: In the name of monitoring and supervision, board wants the management to place proposals for big amounts of loans at board meetings. But their motive behind this is to interfere in managerial activities. A former vice chairman of a leading private bank admitted that the interference was one of the main sources of tension between the board and the bank executives. We, the directors and shareholders, invest huge amounts of money in launching and running a banking business. For this reason, we sometimes have to intervene in loan disbursement issues, he said, asking to be anonymous. He, however, denied the allegations of gross interference. The MD of one of the nine newly launched banks said MDs are often made scapegoats for the shady actions of boards. Boards coerce MDs into sanctioning dubious loans, but in the end, they deny their wrongdoings when the loans go bad, he alleged. We are sued, interrogated and removed when an allegation of scams surfaces. But, we are not solely responsible for such misdeeds; rather, boards coerce us into doing things, he claimed. Describing the interference as a malpractice in corporate governance, Dr Toufic Ahmad Choudhury, director general of the Bangladesh Institute of Bank Management, said that ensuring transparency and accountability in the sector has become a challenging task due to such interference by boards. Causes and effects Unauthorised interference of boards in regular managerial activities is severely disrupting the smooth running of banks, insiders say. A former MD of a private bank said: Along with the recruitment process, boards interfere in a wide range of issues ranging from disbursement of bad loans to illicit financial flows, preventing MDs from properly discharging their duties. Experts said the central bank s deviation from its rules and failure to effectively monitor commercial banks activities, the ever increasing number of banks, manipulation of corporate governance, lack of measures to increase the retirement age of MDs, and bankers involvement in anomalies are among the factors that allow boards to get in the way of MDs responsibilities. The situation may take a turn for the worse if the current malaise continues to prevail, they warned. MDs being made scapegoats Bangladesh Bank has recently removed Dewan Mujibur Rahman from the posts of managing director and chief executive officer at NRB Commercial Bank following loan scams involving around Tk701 crore. A Bangladesh Bank investigation found that Mujibur was not the only person involved in the scams, but a number of directors of the bank and former Mercantile Bank chairman Md Shahidul Ahsan were also found responsible. The central bank is yet to take action against board chairman Engr Farasath Ali, who is a leader of the ruling Awami League and has strong connections with the party s top brass. In response to yet another incident of gross violation of banking rules, the apex regulatory body for the country s monetary and financial systems ordered removal of Farmers Bank MD AKM Shameem. On December 13, while presenting his side of the story before a central bank body, the beleaguered MD blamed the bank s board of directors for its current precarious financial situation, saying they used the management as pawns in executing their agenda of corruption. 5 P a g e

6 Earlier, in 2014, Bangladesh Bank removed Kazi Faqurul Islam from the position of managing director at scam-hit BASIC Bank. The MD of Meghna Bank Mohammed Nurul Amin was allegedly forced to resign. At the National Bank, three MDs were replaced in a span of just three years. For the last eleven months, the bank has been running without a managing director. Even after the scams were widely reported across different media outlets, none of the board members in the above cases was sued or fired, leaving a bad impression on bankers and thus discouraging them to apply for the post of managing director at private banks. Source also said MDs are fired outright when they are found to be disagreeing with boards on disbursement of bad loans and other illegal issues. Khondkar Ibrahim Khaled, a former deputy governor of Bangladesh Bank, said: Bank owners may find and recruit an MD with higher salaries, but they would not be able to find a skilled one to smoothly run their banks, if the current situation continues to prevail. And those who are in the position will be more like a servitor than a professional managing director. Are MDs innocent? Some MDs and CEOs confessed to their limitations, saying some of them join the board and other vested quarters in carrying out illegal activities. When an MD gets into an illicit activity, he or she is coerced into assisting the board in their scams and irregularities, said a former MD of a scam-hit bank. A bleak, uncertain future ahead Currently, 57 banks are in operation in the country. Whereas a majority of them are in turmoil and riddled with numerous crises and anomalies, the government has decided to give the nod to another three banks. Raising questions over the necessity of new commercial banks, experts said the number of banks in the country is already higher than actually needed. At least 10 MDs at private banks will go into retirement by next year, while many are being terminated as some of the banks are facing hostile takeovers. In recent times, Islami Bank Bangladesh Ltd (IBBL) and Social Islami Bank Ltd (SIBL) faced such takeovers. Regulator playing a dubious role The central bank was supposed to play a strong role in addressing the anomalies, but its policy and initiatives in this regard have failed to address the situation, experts said. According to Bangladesh Bank guidelines, an MD is required to submit a letter to the central bank a month before his or her resignation, detailing the reasons for resignation. But, the MDs of the IBBL and SIBL were apparently forced to resign in a day, and Bangladesh Bank, too, accepted their resignations. Whom will we raise our issues with, if the central bank, despite being a regulator, deviates from its policy, the MD of a bank said, expressing deep concerns over the central bank s apparently dubious role. Asked, Bangladesh Bank Executive Director and Spokesman Subhankar Saha said: The central bank has set specific guidelines that permit the management board to resist unauthorized interference and work independently. He, however, declined to make any comment on allegations that the central bank supported boards in removing MDs of some of the banks. Policy prescription To address the prevailing mess, former Bangladesh Bank governor Dr Salehuddin Ahmed stressed ensuring good governance, transparency and accountability in the banking sector. He also highlighted the need for a strong and independent central bank with focus on core banking issues as well as for a system of prompt corrective and administrative actions to deal with these irregularities. 6 P a g e

7 Former SIBL MD and CEO Md Shafiqur Rahman said: As per the current law, the retirement age for an MD is 65. The age limit should be increased so that those who are still physically and psychologically capable of discharging their duties can lead the banks. This may help address the prevailing crisis over MDs. He urged the Association of Bankers, Bangladesh to come forward to safeguard the interests of those employed in top managerial positions at the banks. Source: Demand for laptop defies dim forecasts Some 4.01 lakh units of laptops were imported in the first nine months of the year, up about 60 percent year-on-year, as people's appetite for computing solutions on the go continues to grow. During the period, about 80,000 units of desktop computers were brought into Bangladesh, which is more or less the same as a year earlier, according to the International Data Corporation, a US-based market intelligence firm. The average laptop price in Bangladesh is Tk 40,000, meaning the market value of the imported laptops is about Tk 1,600 crore. Globally, the demand for laptops is on the wane, but in Bangladesh it is the opposite, said ASM Abdul Fattah, chairman of Global Brand (Pvt.) Limited, one of the leading laptop and desktop computer importers in the country. The growth has been about percent in recent years and it will certainly continue over the next few years. I have no doubt that over the next five years our market will grow at this rate as we have just started to embrace the digital world -- we have huge untapped market left. A large number of laptop buyers are now from the rural areas, said Fattah, whose company distributes Dell, Lenovo and Asus-branded notebooks. In the first nine months, HP accounted for 36 percent of the laptop imports, followed by Dell at 26 percent, Lenovo 17 percent, Asus 14 percent, Acer 4 percent and other brands 18 percent, according to IDC. Dell's projected laptop shipment for 2017 is 5.60 lakh, according to M Atiqur Rahman, country manager of the American computer technology company. This number might be achieved, so it will be the highest yet for Dell in Bangladesh. Of the total imports, 60 percent are notebooks, which the students prefer. We found huge potential in this segment, so we have doubled the manpower in 2017 than last year, he added. A few years ago, IDC had predicted that from 2017 the laptop market will go through degrowth even in third-world countries like Bangladesh as tablets will take over. But that has been proven wrong for this market, said the country manager of a top brand. The country manager of another brand operating in Bangladesh has shared the IDC report with The Daily Star but requested not to mention his or his company's names as a nondisclosure agreement was signed with the global research firm. We had planned to reshape our business but the Bangladeshi people prove that prediction wrong. In the first nine months of 2017, the government has purchased about 60,000 laptops from the company and next year it has commissioned another 2.50 lakh laptops for use in various projects, he added. 7 P a g e

8 However, Rahman from Dell said next year might be crucial as it will be an election year. Describing customers' behaviour, Fattah said traditionally Bangladeshi customers like high-value products and sometimes they do not even calculate the value for money. Even for entertainment purposes some buy laptops with high configuration. Most of the imported laptops are coming from China, Singapore and Malaysia, he said. Considering the high import volume, the government is also encouraging local assembling and has invited both local and international entrepreneurs to take up this opportunity. Local brand Walton has already started assembling notebooks in its hi-tech park at Gazipur. But both Fattah and the top officials of other leading global brands said the interest is scant. No doubt Bangladesh is a big market but the ecosystem for assembling is not ready yet, he added. Mustafa Jabbar, president of Bangladesh Computer Samity, said the country will have more than five crore students in the next five years and half of them will use laptops. It means all the potential of the market is still left, he said, adding that the zero duty on importing computer parts presents a glorious opportunity for investors. There is no duty on importing laptops either, according to Jabbar, also the president of the Bangladesh Association of Software and Information Services. Subsequently, he urged the government to impose tax on laptop imports to encourage local assembly. Source: Trade volume rises sharply at DSE, CSE Trade volume at the Dhaka Stock Exchange increased percent year-on-year from July to September this year. During the period, 1,941 crore shares were traded, up from 661 crore shares during the same period a year ago, Bangladesh Bank data showed. The figure was percent higher than the preceding quarter of April to June when 1,113 crore shares changed hands. Total turnover was Tk 60,463 crore in July to September, up percent from the same quarter a year ago. In 2010, Bangladesh Securities and Exchange Commission took a package of reform programme to bring back the confidence of investors to the stockmarket. As a result, the markets have become stable, said former DSE president Ahsanul Islam Titu yesterday. He said the government organises 'Investor Day' every year and has launched financial literacy programme to build a strong capital market. "Due to the government's time-befitting initiatives, the stockmarket is gradually becoming a lucrative position for both local and foreign investors. Now investors are showing keenness to invest in the market," Ahmed Kabir Majumder, managing director of Azam Securities Ltd. According to BB data, both stock markets exhibited upward trend in terms of index and turnover compared to the previous quarter. The DSEX, the key index of the DSE, increased to 6, points at the end of September, which was 4, points in September last year. At the Chittagong Stock Exchange, crore shares were traded from July to September against crore shares during the same period the previous year. 8 P a g e

9 All share price index of the CSE stood at 18, points at the end of September, which was percent higher than that of September last year. Source: Sustainable development must be financed from domestic resources Bangladesh faces a significant challenge attempting to achieve and sustain high growth while ensuring environmental degradation is kept to a minimum. As global climate negotiations attempt to elicit commitments from rich countries towards the climate finance pots, countries such as Bangladesh must not forget that the key to long-term environmental sustainability rests largely on their own ability to focus policy attention and allocate sufficient financial resources towards it. Research done for the Perspective Plan 2041 (PP2041) exercise suggests that in order for Bangladesh to implement a green growth strategy to ensure consistency of growth and poverty reduction targets with environmental protection, Bangladesh needs to increase its spending on environmental protection and climate change related programmes from 1 percent of GDP now to 3 percent of GDP by FY2031 and to 3.5 percent of GDP by FY2041. As compared to this huge funding requirement, from 2009 to 2016, donor funds directed towards environmental protection or climate change have amounted to around $800 million, which is a mere $100 million per year (0.04 percent of GDP). Bangladesh played a leading role in helping set up the global Green Climate Fund (GCF) with an ambitious agenda to mobilise $100 billion per year from rich countries by 2020 to finance climate change initiatives in developing countries. As of November 2017, the GCF had raised $10.3 billion equivalent in pledges from 43 governments. So far the GCF has authorised some $2.6 billion in projects globally. Bangladesh got only one project approved so far, the Climate Resilient Infrastructure Mainstreaming (CRIM) project, worth $40 million. Apart from the very slow progress in mobilising funding, the GCF has reached a road block. The largest donor USA has announced its intention to withdraw from the Paris global environmental accord including the GCF. Additionally, cumbersome procedures in accessing GCF funds remain a major hurdle. In any case, while all efforts must be made to benefit from the GCF, the quantum of funds that Bangladesh will be able to access from the GCF in the near future is uncertain. So an undue reliance on external funds could mean that the scale of funds Bangladesh requires for sustainable development will never be mobilised. To achieve the development targets of Vision 2041 Bangladesh must make strong efforts to unlock domestic resources towards environmental management and sustainable development. Reliance on domestic funds will provide a reliable basis on which long-term initiatives can be planned and executed. Deploying domestic resources is also the best mechanism to get citizens involved in holding the government to account, as they know that the money being spent comes from the taxes they pay, and not from external sources. Environmental management suffers from poor resourcing Direct spending by the coordinating environmental ministry, the Ministry of Environment and Forests (MoEF), is very limited, increasing from 0.05 percent of GDP in FY2000 to 0.06 percent of GDP in The lack of a substantial allocation from the national budget indicates, most importantly, absence of a strategic vision and roadmap towards sustainable development. If the MoEF has to be the true custodian of environmental management and protection activities in Bangladesh, the first step is to invest in its capabilities and increase its budget allocation to at least 0.5 percent of GDP by FY2041. Beyond the MoEF, there are arms of the government that carry out functions critical to sustainable development. Overall public spending of core ministries dealing with water and environment-related services and the water and sanitation component of the local government division (LGD) and local government institutions (LGIs) constitute 1 9 P a g e

10 percent of GDP. Much of the resources come from spending on water, sewerage and waste management funded by the LGD and own resources of LGIs (0.54 percent of GDP in FY2016). Yet, a spending level of 1 percent of GDP for a country with 160 million people, with a huge environmental protection problem, and rated as the fifth most natural-hazard prone country in the world, speaks volumes about the relative neglect of the environmental protection agenda. Stepping up domestic financing is feasible Public financing policies: The public finance constraint on the budget in Bangladesh is well-known. Most public programmes are under-funded. Large infrastructure and human development needs regularly overshadow financing requirements of other programmes. As noted, successful implementation of the green growth strategy calls for a sharp increase in public funding for environmental services from the current level of 1 percent of GDP to 3.5 percent of GDP by FY2041. How can this level of public funding be mobilised? A suggested financing plan is shown in the table. Overall, some 2 percent of GDP of additional financing will need to come from tax resource mobilisation. Bangladesh has one of the lowest tax-to-gdp ratios in the world and the 2041 PP Macroeconomic Framework allows for an additional tax-gdp ratio increase of 5 percent that can accommodate this additional financing. The remaining 0.5 percent of GDP domestic financing can be mobilised through the application of the beneficiary pays principle (cost recovery) and the polluter pays principle (green taxes). Presently, there is minimal cost recovery from water and sewerage services provided by Wasa and municipalities. This imposes a serious financing constraint on the public agencies that in turn limits the quality and quantity of supply. This pricing policy must change, both to mobilise funding for new investments as well as to ensure efficient use of water. The water and sewerage pricing policy must move to full operating cost recovery by FY2020 and 100 percent capital cost recovery by FY2031. Regarding green taxes, the combination of fossil fuel tax and pollution tax on industries polluting air and water and households polluting water should generate adequate revenues to finance environmental protection and other important transport sector programmes. Emission taxes may be imposed, if legal limits are exceeded, on highly polluting products and sectors. By the same token, incentives must be offered to the use of materials and consumer goods that are eco-friendly. These taxes will be politically tough, but a start has to be made if the government is serious about protecting the environment. This is also one area where external support in the form of funds to partially subsidise technology adoption, and technical assistance to facilitate technology transfer, and in the design of tax instruments, can be beneficial to Bangladesh. Private financing options: There are three main instruments for boosting private financing for environment. First, in a number of areas, such forestry for timber, fisheries, eco-tourism, water supply and waste management, private supply can be encouraged with proper regulatory and pricing policies. These are commercial components of the environmental services and many good-practice international experiences exist for boosting private supply in a framework that is consistent with environmental protection. Bangladesh can learn from these experiences and develop proper policies and institutions to attract private investment. Second, legal and regulatory policies can be used to encourage proper adoption of measures that include private investment in protection of the environment. Important examples include adoption of clean air technology in industries, installation of effluent treatment plants (ETPs) in industries and private hospitals, and prevention of land degradation through proper farming practices including the banning of jhum cultivation while providing alternative livelihoods to the affected population. Third, the public sector can enter into co-financing arrangements of a range of environmental services through publicprivate partnerships including partnerships with communities. For example, programmes for clean rural water supply and sanitation, clean-up of rural ponds used for bathing and household cleaning, public toilet and public bathing 10 P a g e

11 facilities can all be implemented through public subsidy to private suppliers as well as through cost-sharing arrangements with the community. Source: Fund raising through IPO drops Fund raising from the capital market through initial public offering declined to the bottom in 2017 with seven entities pooling just Tk crore from the market. Due to the poor number of IPO approval, the companies which issued IPOs in the year got overwhelming subscriptions by the investors. Officials of the stock exchanges and Bangladesh Securities and Exchange Commission said stricter public issue rules that were amended in December 2015 was the main reason behind the fall in fund raising from the capital market through IPO. It took time for the companies to fulfill the requirements of the newly-amended public issue rules and submit fresh proposals to the stock exchanges and to the commission as well, they said. As per the securities rules, observations of the stock exchanges were made mandatory in getting IPO approval. Besides, companies which would claim premium on shares in addition to its face value will have to follow book building method, the amended public issue rules, they said. It takes almost a year to complete the whole procedure under the book building method, stockbrokers said. In June 2015, the commission exempted foreign companies and joint venture companies with foreign investment from mandatory enlistment with stock exchanges that was another reason for the decline in the number of IPOs, they said. Moreover, the companies get funds from the banks easily with lower rate that was another reason behind fewer IPOs, they said. Since the number of IPOs declined in the year, the demand for their shares increased in the capital market. All the issues approved to raise fund from the capital market got enormous number of investors attention. Shepherd Industries subscribed by 55 times while BBS Cables 48 times, Oimex Electrode 42 times and Nahee Aluminum 37 times during their public subscription period. Share prices of these start-ups shoot up from the opening day of trading. Share prices of Oimex Electrode rocketed by 1040 per cent and BBS Cables by 450 per cent at its debut day creating instability in the capital market. Market operators said lack of IPO approval created overwhelming subscription in the primary market and caused to shot up on their debut day. According to Dhaka Stock Exchange data, only six companies raised Tk crore from the capital market in the outgoing year, while in 2016 eight companies raised Tk crore from the market. Of the six companies, only one company got premium, while the rest five issued shares at par, DSE data showed. Aamra Networks Limited raised the highest Tk crore from the capital market including Tk crore premium by floating the entity s 1.5 crore ordinary shares while Nurani Dying, BBS Cables, Shepherd Industries, Oimex Electrode and Nahee Aluminum followed the chart. In 2009, fundraising by 10 companies and seven MFs was worth Tk 1272 crore from the capital market. Fund raising from capital market was Tk 1186 crore in 2010, Tk 1208 crore in 2012, Tk 830 crore in 2013, Tk 830 crore in 2015 and Tk 849 crore in Source: DSE foreign trade turnover doubles in November The total turnover of foreign trade in Dhaka Stock Exchange (DSE) almost doubled to Tk billion in November. The amount is Tk 6.11 billion higher than the amount in the previous month. 11 P a g e

12 In October, the total turnover of the foreign trade was Tk 6.42 billion, reports BSS using DSE data. "Due to the government's time befitting initiatives, stock markets are gradually becoming a lucrative position for the both local and foreign investors. Now the foreign investors are showing keenness to invest in the Bangladesh stock markets, " said Azam Securities Limited Managing Director Ahmed Kabir Majumder on Thursday. He expressed the hope that the foreign trade in the Bangladesh stock markets will increase further in future. The foreign trade turnover in November 2017 was Tk 5.90 billion more than the amount in corresponding period of the previous year. In November 2016, the total turnover of the foreign trade was Tk 6.64 billion. Foreign investors are keen to invest in the market as the overseas investors bought shares worth Tk 6.36 billion and sold shares of Tk 6.17 billion in November, In this month, the buy value was Tk million higher than the sell value. The total turnover was Tk billion in January, 2017, Tk 6.33 billion in February, Tk billion in March, Tk 8.66 billion in April, Tk 897 billion in May, Tk billion in June, Tk billion in July, Tk 8.33 billion in August and Tk 9.47 billion in September in the current year. Source: BSEC approves UCB bond, fines two brokerage houses The securities regulator imposed on Thursday an aggregate amount of penalty worth Tk 4.0 million on two brokerage firms as they opened BO (beneficiary owner) accounts and disbursed margin loans in breach of securities rules. Officially named Bangladesh Securities and Exchange Commission (BSEC), it slapped the fine on the firms at a meeting at its office in Dhaka city. BSEC also approved a Tk 7.0 billion non-convertible subordinated bond to be issued by United Commercial Bank (UCB). The securities regulator decided to issue a warning letter to two merchant banks which failed to raise their paid-up capital to Tk 250 million as per BSEC notification. As per the DSE findings, Saad Securities breached the securities rules providing margin loans to its directors and their family members and authorised representatives. The company, having a shortage of fund in its consolidated customer account, also provided margin loans against the non-margin accounts. As per the BSEC decision, the Saad Securities will have to pay a penalty worth Tk 2.0 million. Another brokerage firm A N F Management Company will have to pay a fine to the tune of Tk 2.0 million as the company provided margin loans against the accounts opened in the name of dealer, managing director, chief executive officer and their family members and authorised representatives. This company also falls short of fund in its consolidated customer account. The tenure of the Tk 7.0 billion non-convertible subordinated bond of United Commercial Bank will be seven years. The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements. NDB Capital and Cosmopolitan Finance have failed to lift their paid-up capital to Tk 250 million as per the notification of the securities regulator. BSEC will issue a warning letter to these two merchant banks for breaching its order. 12 P a g e

13 It will also warningly write to United Airways (BD) for not publishing price sensitive information as a board decision. As for this, the decision was taken at a board meeting held on April 23, In Thursday's meeting, the securities regulator imposed a penalty worth Tk 0.1 million on BD Autocars too, as it failed to prepare its audited financial statement for the year ended on June 30, 2014 in accordance with account standards. Source: দ দককক ম থ য বক ক ন আবদ হ ই ব চ চ বযবসৎ পন পর ষদ কথ কক কক কন প রস বই য য়মন ত প ও ৪৩ট ঋণপ রস ব অন ক দন কক ক ক খ আবদ হ ই ব চ চ কনত ক কবম ক বয কক তত ক ন পর ষদ ক ম ট কম ট কনমতব চক ত ত ক ও অস ব ভ মবক দ র তত য় অন ক দন ক হকয়ক ১৮৭ট ঋণপ রস ব ঋণ অন ক দন কপকয়ক ন কখ মপ গ র হকও যমদও দ ন মত দ ন কম কন (দ দক) দ ই দফ ম জ ঞ ব কদ মনক কক কদ র -ত র ট ঊকবষ ত ক ধ কচষ ট কক ক ন আবদ হ ই ব চ চ ব দ য় মতমন চ মপকয়ক ন বযবসৎ পন কত ষ পক ওপ দ ন মত দ ন কম ন কয ব আ ত গ রহ কক ক, ত কত মনকয় গ-পকদ নৎমতকতও মবস অমনয়ক প র ণ কয়ক ক ষকতষ ও ক ষচ মনকয় গ- পকদ নৎমত মনয় ন মত ন দ ক কব ধ কক নমন কবম ক বয কক তত ক ন কচয় য ন ঋণ অমনয়ক কত এক ক ও দ দক ক ষকতষ কদ ম থ য তথ য মদকয়ক ন আবদ হ ই ব চ চ ম জ ঞ ব কদ তথ য-প র ণ কন এক একপযষ কয় বক ক ন, আম ম গ ইক হকয়ম তকব কবম ক বয ক ককক ঙ ক ম কত ক উকক ড় কদয় কক কন কয গ কনই বক মনকয়ক ন দ দক কচয় য ন ইকব হ দ আবদ হ ই ব চ চ মবর কয় নকত চ ইক বমণক ব তষ কক মতমন বক ন, কবম ক বয কক ঋণ ম য় মত তদন ত চ ক কব মক তদক বয কট কবক কচয় য নকক ম জ ঞ ব দ ক হকয়ক তদ ক ষকতষ যমদ কন কক ন ত কক আক ম জ ঞ ব দ ক প রকয় ন, ক স ব ধ নত ও ত কদ আক অনয নয তদক ত কক আব ক ক হকত প ক দ দকক ম ষ ট ক ষকতষ মবর য়ট মনকয় প ক প ম ওয় মকবহ কখন কক নট ক কত হকব, ত ক ট ভ ক কত ই কনন কবম ক বয ক ককক ঙ ক ম কত দ কয় ক ৫৬ট কধয ১৫ট মবর কয় আবদ হ ই ব চ চ কক এ ই কধয দ ই দফ ম জ ঞ ব দ কক ক দ দক ম জ ঞ ব কদ তদ ক ষকতষ কদ মতমন বক ন, ঋকণ ন ক কনয় অথ ষ ম য় মত ধযক হ মতকয় কনয় হকব ত মতমন নকতন ন তত ক ন বযবসৎ পন কত ষ প ত কক মবভ র কক ক আবদ হ ই ব চ চ কয তয বক নমন, ত প র ণ মদক দ দকক গ হ ত আ ত দ দক গ ক ব ক, বয কক প রধ ন ক যষ কয় ক ম ট কম ট কনমতব চক ত ত কদয় প ও আবদ হ ই ব চ চ কনত ক পর ষদ ১৮৭ গ র হকক অন ক ক প র য় ৫ হ ৯৯৫ কক ট ট ক ঋণ অন ক দন কক অমধক ক ক ই ঋণপ রস বগ ক অন ক দন ক হয় অস ব ভ মবক দ র তত য়, এক-দ মদকন কধয মদয় কহ কট অয ন ড ম ক টষ ২০১২ ক ২৭ র চ বয কক গ ন খ য় মহ ব কখ ক আ ঋণ অন ক দন হয় প মদন ২৮ চষ মহ ব কখ আকগই ঋণ অন ক দন কদয় হয় ক ষ অকট ম ফ ইকন অন ক ক ২০১০ ক ৩ নকভম ব মহ ব খ ক ও অকট ম ফ ইকন ঋণপ রস বট আবদ হ ই ব চ চ কনত ধ ন পর ষদ অন ক দন কক একমদন আকগই ২ নকভম ব আবদ হ ই ব চ চ অস ব ক ক ক ও এ দ য় ম প ণষর কপ কবম ক বয কক তত ক ন পর ষকদ র ষ কনত ক বক কন ক ক ন দ দক ক ষকতষ পর ষদ কত ষ ক বষ ম মতভ কব প রতয খয ত হকয়ক, এ ন ঋণপ রস বও আবদ হ ই ব চ চ অন ক দন কক ম ক ন দ দকক নমথ অন য য়, মব আ ম মপ ইনক ঋণপ রস বট বষ ম মতভ কব প রতয খয ত হক ও ২০১৪ ক ৮ ক অন ম ত ভ ক যষমবব ণ কত ত অন ক মদত বক কদখ কন হয় 13 P a g e

14 বয ক কক ম প মন আইন অন য য়, কক কন কখ মপ গ র হকক অন ক ক ঋণ অন ক দকন কয গ কনই এ মনয় ও কননমন আবদ হ ই ব চ চ কখ মপ হওয় প ও এ ধ কন এক মধক গ র হকক অন ক ক ঋণ অন ক দন কক ন তত ক ন কচয় য ন গ র ত এ ব অমনয়ক মবর কয় ম জ ঞ ব কদ নয আবদ হ ই ব চ চ কক ম গমগ ই আব ক ত ব ক হকব বক ন ন দ দকক তদ ম ষ ট এক মধক ক ষকতষ ন প রক ন ক কতষ ত বক ন, কবম ক বয কক ঋণ ম য় মত ঘটন য় আক প র য় ত মধক দ কয়ক প রম য় চ ন কয়ক আবদ হ ই ব চ চ ককও এ ব য় আ ম ক হকত প ক আবদ হ ই ব চ চ ক কফ কন গতক কয গ কয গ ক হক মতমন হ প ত ক ভমতষ মনকয় কথ ব কত অপ গত প রক কক ন কবম ক বয কক দ ন মত মনকয় মপ র কক টষ কথ কক পযষকব ণ আ প ম প রমত বয কট কবক কচয় য ন আবদ হ ই ব চ চ কক ম জ ঞ ব কদ উকদয গ কনয় দ দক এ আকগ বয কট তত ক ন ১০ পম চ কককও ম জ ঞ ব দ ক হয় ঋণ ম য় মতকত ২০১৫ ক ২১, ২২ ও ২৩ ক ক ম ব মতনমদকন ক ট ৫৬ট কক ন দ দকক অন ন ন দক দ য ধ ন মতম, পল টন ও গ ন থ ন য় এ ব য় ক ট আ ম ক হয় ১৫৬ নকক য় আ ম কদ কধয কবম ক বয কক ক ষকতষ কয়ক ন ২৬ ন ব মক ১৩০ ন আ ম ঋণগ রহ ত ৫৪ প রমত কন স ব মধক ও কভষ প রমত ন বয ক ও ঋণগ রহ ত কদ অকনককই এক মধক য় আ ম হকয়ক ন তকব কক কন য় বয কক কবক কচয় য ন আবদ হ ই ব চ চ হ পম চ ন পর ষকদ ক উকক আ ম ক হয়মন আবদ হ ই ব চ চ কক ২০০৯ ক কবম ক বয কক কচয় য ন পকদ মনকয় গ কদয় ক ২০১২ ক ত মনকয় গ নব য়নও হয় মকন ত ঋণ ককক ঙ ক ম অমভকয গ উঠক ২০১৪ ক বয কট বযবসৎ পন পম চ ক ক ফখর ই কক অপ ণ ক প চ কপ কখ পদতয গ কক ন মতমন উক খয, কবম ক বয ক আন মনকভ কব ক যষ শ র কক ১৯৮৯ ক ২১ ন য় ম কথ কক তভ গ ষ ট র য় ম ক ন ধ ন ব মণম যক এ বয কট ২০০৯ পযষ স ব ও ভ নক প রমত ন মহক কব পম মচমত অ ষ ন কক ২০০৯ পযষ কবম ক বয ক ক কক ৫৩ কক ট ৮০ খ ট ক নগদ ম মভক ন ড কদয় এ প কথ ককই বয কট মবপযষয় শ র Source: ম এ ম ক এখন আম ফ য ন ফয কচ ম কক ম প মন প ম ব ক ত ম ক ভ ক ত কক ম প মন ম এ ম ক কটক সট ই ম ম ম কটক ন ও ক ম কক পম বতষ ন ক হকয়ক ক ব কথ কক স টক এক সকচক কক ম প মনট আম ফ য ন ফয কচ ম কক ম প মন ম ম কট ন ক ক নকদন ক কব কক ম প মন নত ন ক ম কক হকব আম ফ ঢ ক স টক এক সকচক (ম এ ই) পম চ ন পর ষকদ ভ য় কক ম প মন ন ও ক ম কক পম বতষ কন প রস ব অন ক দন ক হকয়ক এ ড় অনয নয মবর য় অপম বমতষ ত থ ককব বক ন কগক ৩০ ন প ত ২০১৭ মহ ব ব ক মন ম ত আমথ ষক প রমতকবদন পযষ ক চন কক ১১ ত নগদ ভয প ম কক ক ম এ ম ক ক পম চ ন পর ষদ এক ব ক কক ম প মনট ক য় প রমত আয় (ইমপএ ) হকয়ক ১ ট ক ৯২ পয় ৩০ ন কক ম প মন ক য় প রমত মনট ম পদ য (এনএমভমপএ ) দ ড় য় ১৯ ট ক ২ পয় য় মন ম ত আমথ ষক প রমতকবদন, ভয ও অনয নয এক ন ড অন ক দকন নয ৩১ ম ক ম ব ব মর ষক ধ ণ ভ (এম এ ) আকয় ন ক কব বস ত র খ কত কক ম প মন ম এ ম ক ওইমদন দ প ১২ট য় ধ ন গ কন অবমসৎত কহ কট ক ক ম ক এম এ ট অন ম ত হকব ক ক ষ ক ট ১৭ ম ক ম ব এমদকক চ মত মহ ব ব ক প রথ প র ম কক ( ই-ক ক ম ব ) ৪৫ পয় ইমপএ কদমখকয়ক ম এ ম ক আকগ ব একই কয় ত ম ৩৭ পয় ৩০ ক ক ম ব এ এনএমভমপএ দ ড় য় ১৯ ট ক ৪৫ পয় য় ২০১৬ ক ৩০ ন ১৮ ক প ত মহ ব ব ক নয ১৩ ত স টক ভয মদকয়ক কক ম প মনট ন কল ম কয় ব ধযব ধকত য় ক ব ১৮ ক মহ ব ব গণন কক ক ম এ ম ক ৩০ ন পযষ ১৮ ক বস ত র খ কত কক ম প মনট ইমপএ হকয়ক ২ ট ক ৫ পয় 14 P a g e

15 ১৯৯৭ ক ক য় ব ক আ ম এ ম ক ক অন ক মদত ধন ৫০০ কক ট ও পম ক মধত ধন ১০৯ কক ট ৩৯ খ ৭০ হ ট ক ম ভষ ৫০ কক ট ৬১ খ ট ক কক ম প মন ক ট ক য় ক কধয উকদয ক ত -পম চ ক ৩১ দ ম ক ৩৫ ত, প র মত মনক মবমনকয় গক ১১ দ ম ক ৭১ ত ও ধ ণ মবমনকয় গক কদ হ কত কয়ক ব মক ৫৬ দ ম ক ৯৪ ত ক য় ম এ ইকত বষক র ২৮ ট ক ৩০ পয় য় ম এ ম ক কটক সট ইক ক য় হ তবদ হয় গত এক ব ক ক য় ট বষমনম ন দ ম ১৮ ট ক ৬০ পয় ও কবষ চ চ ৩০ ট ক ১০ পয় কব ন ক য় ন বকয় প বষক র মন ম ত ন ফ ও ব দক মভম কত এ ক য় ক য আয় (মপই) অন প ত ১৫ দ ম ক ৫৮, হ ন গ দ অমন ম ত ন ফ মভম কত য ১৫ দ ম ক ৬৭ Source: International News Bitcoin hits new record high as warnings grow louder Bitcoin blasted to another all-time high of almost $18,000 on the Bitstamp exchange on Friday, up 9 percent on the day, as warnings grew over the risks of investing in the highly volatile and speculative instrument. The cryptocurrency's staggering recent price rises -- more than 1,700 percent since the start of the year -- have driven worries that the market is a bubble that could burst in spectacular fashion. Bitcoin has climbed almost 80 percent so far in December alone, putting it on track for its best month in percentage terms since December On Friday it reached as high as $17,900 on the Luxembourg-based Bitstamp exchange. While bitcoin has added another fifth to its value since Monday, trading has been slightly calmer than the wild price swings the market has seen in recent weeks, with volatility lower since the launch of bitcoin futures from Cboe Global Markets on Sunday. Market-watchers said bitcoin's price was being lifted by the launch of rival CME Group's bitcoin futures contracts on Sunday. The hope (is) that futures signal the unlocking of institutional money into the digital arena and (that there will be) a rapid demand increase and ratification of the technology and its principles, said Charles Hayter, founder of industry website Cryptocompare. But outside of the crypto market, worries continue to grow about the amount of money piling into the space. A study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets. Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble, said Larisa Yarovaya, one of the report's authors and a lecturer at Anglia Ruskin University. Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets. Others, however, say bitcoin's total market size -- around $300 billion -- mean the impact of any future price collapse would not be large enough to have a knock-on effect on financial stability. The BBC reported late on Thursday that the head of Britain's Financial Conduct Authority, Andrew Bailey, had warned that bitcoin buyers should be prepared for the possibility that they could lose all their money. Outages on some of the world's biggest exchanges this week, which left millions of investors unable to access their funds during periods when trading volumes are high, have also fuelled concerns about the fragility of the market's infrastructure. Source: 15 P a g e