PM woos Kuwaiti entrepreneurs

KUWAIT CITY, Feb 8: Prime Minister Sheikh Hasina urged Kuwaiti business leaders and entrepreneurs to import world-class products from Bangladesh and make investment in the country’s promising sectors under an attractive package of incentives, reports UNB.
“In fact, there is ample scope for diversifying and increasing our two-way trade. We only need to work together to identify areas of cooperation to harness the existing potential,” she told her audience at a luncheon meeting hosted by Kuwait Chamber of Commerce in her honour.
The Prime Minister arrived here Sunday on a three-day state visit to the oil-rich Gulf state with a wide range of matters of bilateral cooperation on her agenda, especially development assistance, investment and labour issues.
Chairman of the apex trade body Ali Mohammad Thunayan Al-Ganim delivered the welcome address.
The Prime Minister said Kuwait could import from Bangladesh high-quality garments, ceramics and pharmaceuticals, which have been established as popular items in the developed world.
The other items she put on offer, which also have equal recognition in an increasingly environment-conscious world, are finished leather and leather products, furniture, handicrafts, and, particularly, jute and jute products.
Hasina said another important area of immense possibility is investment by the State of Kuwait in Bangladesh. “Our government has been successful in creating an attractive investment climate with liberal fiscal and financial policies.”
She listed the significant facilities on stake for investment, like tax holiday, concessionary duty on imported machinery, avoidance of double taxation, remittance of royalty, technical know-how, technical assistance fee, allowing 100 percent foreign equity, unrestricted exit policy, and full repatriation of capital and capital gains in the event of exit. A huge domestic market of 150 million people, abundant skilled labor, the presence of homegrown entrepreneur class, supportive legal regime, and, above all, commitment of the government are added attractions for foreign investors, the PM told the leading Kuwaiti businesspeople.
She said Kuwaiti investors could seriously consider investing in power, telecommunications, infrastructure development, pharmaceutical, textiles, ICT, real estate, gas and energy, leather, furniture, and agro-based industry sectors.
“I invite you to come forward with investments in Bangladesh, which would be lucrative, as well as assist in strengthening even further our countries’ relations.”
She assured that her government would provide all possible assistance and cooperation in doing business.
“I hope my invitation to you all for expansion of trade with and enhancement of investment in Bangladesh would receive your favorable response.”
On a note of confidence, the Prime Minister said: “With your cooperation in the fields of trade, commerce and investment, both the State of Kuwait and Bangladesh would mutually be benefited bringing greater prosperity to our countries and peoples.”
She said that the two states are bound by brotherly ties based on common faith, culture and tradition.
“Moreover, our countries’ special relations have been consolidated by the enviable friendship enjoyed by the great rulers of the State of Kuwait and Bangabandhu Sheikh Mujibur Rahman, Father of the Nation and my father, since our independence in 1971,” Sheikh Hasina told the Kuwaiti business leaders.
“Thus, our two countries became historically linked in cooperation, both bilateral and multilateral, for the common good of our peoples.”
She noted that the Gulf State has now established itself as a regional economic hub and Bangladesh would very much like to closely engage with Kuwait for a more meaningful cooperation. “An important area is, of course, by way of enhancing our bilateral trade,” she said, adding that, at present, the balance of trade is very much in favor of Kuwait.
In 2007 to 2008, Bangladesh’s exports to Kuwait stood at a mere US$ 9.69 million while the corresponding import figure was many times higher.
In his speech the KCCI chief highly praised Sheikh Hasina’s leadership, especially in dealing with the challenges of security and development. Sheikh Hasina, not only in her capacity as Prime Minister of the friendly and great country but also as a shining example of the ambition and competence of the Muslim woman and as a good example of the intelligence and diplomacy of the politician, faces, with great courage and skill, the challenges of security and development, he said.
He wouldn’t deny that the size of trade exchange and the level of economic cooperation between two countries by far fall short of reflecting the depth of the Islamic bonds of two nations and brotherly relations among the leaders of both countries. “Neither do I deny that the responsibility of changing it is a matter of our joint interest. It is our sincere hope that your visit will mark an encouraging start for all of us to bear out responsibilities,” the Kuwaiti business leader said.
He mentioned that the meeting held today gave a very valuable opportunity for both countries to identify and communicate with the highest positions of information and decision in the friendly Bangladesh and the key milestones toward cooperation in the fields of trade and investment in the best interests of both the countries.
Labour and Expatriate Welfare Minister Engineer Mosharraf Hossain, Foreign Minister Dr Dipu Moni, State Minister for Environment Dr Hasan Mahmud, Ambassador-at-Large Ziauddin, Principle Secretary MA KArim, Press Secretary to the Prime Minister Abul Kalam Azad and other high officials from Bangladesh side and business leaders from Kuwait were present among others at the function.

Govt in deal with China cos for 300MW power

Govt in deal with Chinese co for 300 MW power Bangladesh Power Development Board (BPDB) signed Monday separate contracts with two Chinese companies for setting up an equal number of power plants with a total generation capacity of 300-MW, reports BSS.
The names of the projects are Chandpur 150-MW combined CYCLE Power Plant and Sylhet 150-MW Combined Cycle Power Plant while the companies are China Chengda Engineering Co. Ltd and Shaghai Electric Group Ltd.
Of the two, one contract was signed between the BPDB and China Chengda Engineering Co. Ltd for Chandpur Combined Cycle Power Plant and the other between the BPDB and Chinese company Shaghai Electric Group Ltd.
BPDB Secretary Md Eskendar Ali, chairman of Board of China Chengda Engineering Co. Ltd Cao Guang and vice president of Power Generation Group of Shaghai Electric Group Ltd. Zhu Denian signed the agreements on behalf of their respective organizations.
Finance Minister Abul Mal Abdul Muhith, Adviser to the Prime Minister for Power and Energy Dr Toufiq-E-Elahi Chowdhury, Bir Bikram, State Minister for Power Brig Gen(retd) Md Enamul Haque, Power Secretary Md. Abul Kalam Azad and chairman of BPDB ASM Alamgir Kabir, among others, were present at the signing ceremony.
The cost of Chandpur power plant has been fixed at Tk about 1248 crore and the foreign exchange component of the outlay is Tk around 902 crore.
The Sylhet power plant will be set up at a cost Tk of 940 with a foreign exchange component of Tk 718 crore.
According to the contracts, production at Chandpur power plant would begin after 15 to 20 months from now on while at Sylhet power plant after 18 months.
Muhith said power is the foundation for overall development of a country and in view of this the present government is giving highest priority to the sector for accelerating economic progress.
He said nobody would invest money in the country, if sufficient energy is not available.
“We had to give top priority to the development of the power sector for achieving a desired progress of the country. But in the past, the energy sector was plunged into an abysmal gorge due to widespread corruption,” he added.
As power is the most important demand of the people, the finance minister said and added that the government is firmly committed to removing all irregularities from the sector.
He said the two agreements at this moment can be deemed as the highest deals during the one-year period of the present government, but to fulfil the growing demand for energy we have to set up more big power plats within a very short time.
Toufiq said the contracts signed today will be treated as a milestone in the progress of power sector. He said, “It is a very good beginning in fulfilling our election pledge to add more power to the national grid.”
Theses two agreements on the plants could not be accomplished in the last five years, but the present government has been able to sign the deals within a very short time after assuming power.
“Our economic growth is being hampered due to shortage of enough power and energy,” the adviser said adding, “We should ensure energy security for a smooth economic growth.”
Terming China as a development partner of Bangladesh, Toufiq said, “These contracts are not mere successes, but also signs of excellent relationship between the two countries.”
Brig. Gen. Enamul said, “I am happy for signing the agreements to set up big power plants in the country, but I would be happier if the power plants are completed within stimulated time.”
He urged the concerned authorities to complete the projects within specific timeframe to reach power the people.

Foreign cos to bring low-price mobile, laptop

Six foreign companies have expressed their interests in manufacturing mobile set and laptop with the joint venture of state owned Bangladesh Telephone Shilpa Sangstha (Teshish), reports BSS.
Managing director of Teshish Ismail Hossain told the news agency that the letters of their expression of interest were sent to head of the Electric and Electronic Department of BUET for scrutiny.
The government floated international tender in December 2009 inviting the entrepreneurs as the Ministry of Post of Telecommunications has taken initiative to make the Teshish full operative after long time.
For the first time the government has undertaken the initiative for a joint venture of the state owned Teshish with foreign company to produce mobile set and laptop.

Dhaka Bank opens branch at Comilla

News Report

Dhaka Bank Limited has expanded its service for clients by opening a new branch in Comilla on Sunday.
Khondker Fazle Rashid, managing director of Dhaka Bank Limited inaugurated the branch at a ceremony as chief guest
Among others, Tanweer Rahim, deputy managing director, Haikal Hashmi, senior executive vice president, Md. Sirajul Hoque, regional manager of Chittagong, divisional heads of Head Office, branch manager and prospective clients were present on the occasion.

Australia to raise trade with Dhaka

Australia hopes that its trade with Bangladesh will soon reach the one billion US dollar mark, as the bilateral trade has been increasing, reports UNB.
Australian High Commissioner in Dhaka Dr Justin Lee voiced the optimism during a meeting with Commerce Minister Faruk Khan at the latter’s secretariat office on Monday.
They discussed bilateral issues particularly expansion of trade between the two countries.
The Commerce Minister urged the Australian envoy to import more readymade garments, jute and jute products from Bangladesh with a view to reducing the country’s trade deficit.
He also requested the envoy to encourage Australian entrepreneurs to invest in the country’s textile, power and IT sectors.
Mentioning export of small and medium sized ships from Bangladesh to some European countries, Faruk Khan said Australia also can export ships from the country’s burgeoning ship-building sector.

Navana Pharma holds scientific seminar

News Report

Navana Pharmaceuticals Limited organised a scientific seminar on the management of Oedema due to renal failure, congestive heart failure and liver disease at Nachole Thana Health Complex in Chapainawabganj recently.
Dr Sreedhar Kumar Barman, ex divisional director of health, Barisal and principal of MATS presided over the session while all medical officers of the Thana Health Complex were present at the function.

Substantial production of potato seed can save huge forex

RAJSHAHI, Feb 8: Most of the domestic seed-potato demands could be fulfilled through boosting local production after the best uses of the modern technology and the existing natural resources that could be the effective means of saving huge hard-earned foreign currency, reports BSS.
Scientists and researchers revealed this at a huge farmers gathering organized by Seed-Potato Growers Association at Gheepara under Paba upazila of the district today.
At present, they said the country requires around six lakh metric tons seed- potato per year but produces only 12 percent of the demand through both public and private initiatives and the lion-portion demand are met with the imported seeds.
They, however, the present revolutionary trend in the potato farming of the region would supplement the reduction of import pressure and said government level support is very essential in this regard.
Chaired by Prof Dr Monzur Hossain of Botany Department of Rajshahi University the ceremony was addressed, among others, by Prof Dr Rafiul Islam of the same department, former Additional Director of DAE Rabindra Kumar Mazumder, Departmental Head of Bangladesh Institute of Nuclear Agriculture Dr Ali Azam, Chief Scientific Officer of Bangladesh Center for Science and Industrial Research Dr Mijanur Rahman, Deputy General Manger of Bangladesh Bank Nasiruzzaman and Regional Manager of National Bank Limited Farhad Ahmed Chowdhury.
Speaking on the occasion Prof Monzur Hossain, who is pioneer in tissue-culture seed-potato innovation and farmers-level dissemination in the country, stated that substantial boosting of tissue culture seed- potato could be the effective means of solving the seed crisis of potato.
He said the existing crisis of breeder and foundation seed could be solved easily through successful expansion of tissue culture technology at the grassroots.
There has been a bright prospect of enhancing the production of breeder seed through best uses of the innovated technology and the farmers have a vital role to make the prospect into realistic.
Prof Monzur said “We had started developing technology of the tissue culture method to produce seed of potato in 1987 and subsequently attained success in this regard”. Since then, he said, we are disseminating the developed technology among both the private and public level seed producing farms significantly.
In addition to comparatively higher production and hygienic, the tissue culture seed is 100 percent virus and disease free, healthy, high quality and along with environment-riendly, Dr Monzur said.
Depicting the salient features of the technology, he mentioned that potato production could be enhanced at least 50 percent more on the existing acreage if only the quality seed are ensured among the growers.
He said, since the qualitative and quantitative production completely depends on quality seed, therefore importance should be given on encouraging the farmers on the best uses of the developed technology to enhance the quality seed production side by side with the state level efforts.
To meet-up the local demands, the nation has to depend on import from abroad through spending huge hard-earned foreign currencies.
“We can reduce dependence on import enhancing domestic production through proper and best uses of the modern technologies in the farming,” he said adding that the tissue culture is one of the potential and proven technologies.
He, however, said due importance should be given on more production of the seed along with easy availability among the farmers and urged the successful farmers to disseminate their acquired knowledge among the fellow farmers.
Around 800 seed-potato growers and other farmers attended the rally discussing the constraints and prospects of the cash crop farming.

‘Domestic helps need to be reduced in Kuwait’

KUWAIT, Feb 8: The Director of the Immigration Directorate, Brigadier Kamel Al-Awadhi announced that there are too many domestic helpers in the country. The estimated number, about 600,000 is too large and needs to be reduced in order to maintain a balanced population formula, he added, reported Kuwait Times on Monday.
Al-Awadhi said that the number needs to be reduced in order to refute accusations of human trafficking and establish a national shareholding company for laborers to work in Kuwait. “We have to take these accusations seriously in order to protect and defend Kuwait’s reputation,” he said.
He responded to questions regarding the need for expatriates to provide certificates of clear criminal records before working in Kuwait. He said that this measure would be mandatory for those coming to live and get a residency visa in Kuwait but not necessary for those just visiting.
He also noted that permission to stay out of Kuwait for more than six months without cancelling residency visas is usually given to students who study abroad, holders of Egyptian travel documents with article 22 visas, sick people and the domestic helpers of diplomats.
He said that expats need a minimum salary of KD 250 in order to earn a residency visa. Women who are expats are not allowed to sponsor their husbands but can sponsor their children if they are divorced or widowed, he added.
Meanwhile another report adds: The agreements signed by Kuwait are binding, and the State is committed to respecting basic labor rights and is keen on keeping in line with labor legislations, said Social Affairs and Labor Undersecretary Mohammad Al-Kandari Sunday. Speaking at the opening of a workshop on how to respond to international reports on agreements and recommendations regarding Kuwait’s accession to the International Labor Organization (ILO), Al-Kandari said his country’s membership in the ILO came before its membership in the UN, as it ratified a total of 19 agreements.
He also pointed out that Kuwait absorbed more than two million incoming expatriate labor workers, adding that it was namely a market that attracting labor thanks to the stability of labor market, the soaring wages compared with some other countries, the tax-exempted wages and the stringent measures applied against the employers who violated work regulations.
He expressed confidence in the ILO’s ability to cope with future challenges and its continuing success in devising, upgrading and developing the international labor criteria.

Southeast Bank holds workshop

News Report

Southeast Bank Limited (SEBL) held a workshop on ‘Implementation of Supervisory Review Process under Pillar two of Basel two at its training institute in the city recently.
Syed Imtiaz Hasib, deputy managing director of the bank, inaugurated the workshop.
He highlighted the rationale for introduction of Basel two as a risk based regulatory capital framework incorporating three pillars and covering credit risk, market risk and operational risk in the system to comply with international best practices and to make the Bank’s capital more risk sensitive.
He also emphasized the need for appropriate introduction and implementation models in the Internal Capital Adequacy Assessment Process (ICAAP) of the bank to adequately mitigate supervisory risk factors for successful implementation of Basel -two in the bank from 2010.
The workshop was organized for the officers which are responsible for Basel-two implementation at the head office and branches. Sabbir Ahmed, FCA of M/s Hoda Vasi Chowdhury and Co made the keynote presentation in the workshop.
Mohammed Gofran, SEVP of Southeast Bank Limited and SM Mainuddin Chowdhury, head of credit and head of IT, Giash Uddin Ahmed, SEVP and head of principal branch of Gulshan branch also took part in the discussion.

MTB disburses loans to soya bean cultivators

News Report

Mutual Trust Bank Limited (MTB) has recently distributed loans to Soya bean cultivators of Haidergonj in the district of Laxmipur.
Md. Ahsan-uz Zaman, deputy managing director of MTB, distributed sanction letters to soya bean cultivators at a ceremony held at the Gazi Super Market at Haiderganj.
Among others, Mohammad Iqbal, head of MTB SME Banking and Muhammed Abdus Sahid, in-charge of the banks Haidergonj SME Service Center, were also present on the occasion.
Md. Ahsan-uz Zaman, in his speech said that MTB is committed to contribute to the development of agriculture and rural sectors of the country. To support the sectors, it has introduced an array of lending products for agriculture including renewable energy projects, SME and women entrepreneurs.
He also informed that MTB would introduce more products for agriculture and rural sectors in near future and extend agri-loans to farmers at competitive interest rates, which is one of the lowest in the market.

Euro trades above eight-month low

LONDON, Feb 8: The European single currency held above an eight-month low today after eurozone finance chiefs reassured their Group of Seven counterparts on Greece’s deepening debt troubles, dealers said, reports AFP.
In morning London trade, the euro firmed to 1.3695 dollars compared with 1.3673 dollars late in New York on Friday, when it had tumbled to 1.3586 dollars — the lowest level since May 20, 2009.
Against the Japanese currency on Monday, the dollar rose to 89.43 yen from 89.20 late Friday.
“As a new week dawns, the euro continues to remain under pressure after the weekend’s G7 meeting failed to deliver little more than rhetoric with respect to measures to deal with the ongoing problems of how to tackle European sovereign debt issues,” said CMC Markets analyst Michael Hewson.
“The European finance ministers merely confirmed the substance and significance of Greece’s attempts to deal with its deficit on its own without outside interference, amid market fears that politicians are sleep walking into a full-blown debt crisis,” he added.
The euro received only a slight lift from remarks by eurozone finance officials at the G7 talks in Canada on Greece’s efforts to rein in its public debt of more than 294 billion euros (412 billion dollars).
“The European members of the G7 have confirmed to the other partners of the G7 the substance and the significance of the (debt-reduction) plan put together by Greece, and that they are confident that it will be managed,” French Economy Minister Christine Lagarde said.
In recent weeks, the euro has been hammered by worries that debt-ridden countries such as Greece, Spain and Portugal may be unable to restore stability to their public finances, having spent heavily to combat recession.

Toyota readies global Prius recall

TOKYO, Feb 8: Toyota Motor Corp is preparing a recall of its new Prius hybrid car in Japan as early as Tuesday, followed by similar steps in the United States, Europe and other markets, a source familiar with its plans said, reports Reuters.
Toyota, which has earned a reputation as the green-vehicle front-runner with the fuel-sipping Prius, has said it is discussing with safety authorities worldwide how to fix a software glitch that delays braking on the model in certain road conditions.
Toyota President Akio Toyoda apologized on Friday for a separate series of recalls covering more than 8 million vehicles, saying the company was rushing to reach a decision on the Prius as it seeks to restore consumers’ confidence in the brand.
Toyota has come under intense scrutiny, with U.S. safety authorities and members of the Obama administration accusing it of responding too slowly on problems related to uncontrolled acceleration that have been linked to up to 19 crash deaths in the United States over the past decade.
An announcement to recall the Prius, cumulative global sales of which total more than 300,000 units, will likely come from a filing with Japan’s Transport Ministry on Tuesday, followed by plans elsewhere, the source said.
The Prius was Japan’s top-selling car in 2009 and is arguably Toyota’s most important model, as car makers around the globe prepare for a new era in low-emission vehicles.
“We think (Toyota’s) start of efforts to resolve quality problems is a step forward in terms of regaining investor confidence,” JPMorgan auto analyst Kohei Takahashi said in a report, referring to Toyota’s announcement on Friday to set up a committee to review its quality controls.
Toyota will likely announce a recall of the 2010 Prius as early as Tuesday, said the source, who asked not to be identified before an official announcement.
The recall could also include the Toyota Sai and its sister model under the premium Lexus brand, HS250h, which debuted last year and use the same brake system as the third-generation Prius.
A Toyota spokeswoman said the company was still discussing plans with safety authorities in the United States and Japan. The new Prius model is sold in some 60 countries.
The Sai sedan is the second hybrid-only model under the Toyota brand, and the HS250h is the automaker’s first dedicated hybrid model under the Lexus brand.
As of the end of December, Toyota sold 15,500 HS250h cars globally since its release in July. Sales of Sai, a Japan-only model released in December, came to 3,800 units in the first month, Toyota said.
U.S. competitor Ford Motor Co said last week it was fixing up to 17,600 hybrid sedans for similar braking problems.
Toyota shares fared better on Monday than other Japanese auto stocks, which were hit by a stronger yen. The stock fell 1.1 percent, compared with a 2.1 percent drop in Honda Motor shares and a 2.6 percent loss in Nissan Motor. The broader Tokyo market fell 1 percent.
On Friday, Toyota’s U.S.-listed shares jumped 4 percent following the news conference by the President Toyoda.
The stock has lost more than a fifth of its value since the world’s biggest automaker expanded a recall related to unintended acceleration to millions of vehicles globally.
In addition to the cost of repairing the vehicles, Toyota faces a rise in indirect spending, including from a likely rise in lawsuits.
At least 30 class-action lawsuits have been filed against the Japanese automaker in the United States, as law firms across the nation call out to consumers to capitalize on Toyota’s vehicle defects.
San Diego law firm Steiner & Associates, for one, has a website up and running (http://www.ustoyotalaw.com) that asks: “Have You or Loved One Been Injured or Killed in an Accident Due to a Defective Gas Pedal or Floor Mat? You may be entitled to substantial compensation!”
Toyota had skirted a full investigation into unintended acceleration of its vehicles and faced a risk of more recalls, according to a consumer advocate set to testify this week in a U.S. congressional probe over safety issues.
“I suspect that we are going to see a series of recalls appear over a period of time here, certainly over the next year, and they are going to address varying issues and varying vehicles,” said Sean Kane, founder of the Safety Research & Strategies Inc, a consumer safety group.
Toyota has said it found no evidence of any safety problems beyond those covered by recalls under way.

Asian stocks mostly down on European debt woes

HONG KONG, Feb 8: Concerns over Europe’s debts woes continued to weigh on most Asian markets today while weaker- than-expected US jobs data also led to fears over the pace of recovery in the world’s biggest economy, reports AFP.
The euro was off last week’s eight-month lows in Asian trade but was still being sold in favour of the dollar as the European fiscal problems continue to burden dealers.
Fears have grown that debt-ridden countries such as Greece, Spain and Portugal may be unable to restore stability to their public finances, having spent heavily to combat recession during the global meltdown. The euro stood at 1.3647 dollars in Tokyo morning trade, after sliding to as low as 1.3586 in New York late on Friday.
The euro dropped to 121.91 yen from 122.01. The dollar climbed to 89.35 yen from 89.20.
Tokyo fell 0.49 percent to 10,007.98 by the lunch break after slipping below the key 10,000 level for a brief period.
However Toyota, which is reeling from a series of safety issues rose 0.45 percent to 3,330 yen, having plunged from above 4,000 yen in just a few weeks due to a series safety issues.
Reports said Sunday the world’s biggest car maker will recall 300,000 Prius hybrid vehicles because of brake flaws, just over a week after it called back almost eight million other cars over problems with the accelerator.
Hong Kong was 0.27 percent down in morning trade and Shanghai dropped 0.13 percent. Both markets were suffering from a lack of buying interest before the week-long Lunar New Year holiday, which starts at the end of the week, dealers said. Seoul shed 0.25 percent.
Doubts about a recovery of the US job market increased after Washington said the world’s largest economy shed 20,000 jobs in January, offering mixed signals about a sustainable economic recovery.
However, profit-taking following Friday’s heavy losses helped some markets to claw back some ground.
Sydney was 0.71 percent higher, taking heart from the 0.10 percent lift on Wall Street on Friday.
Singapore was up 0.25 percent, dealers said.
Players are now looking ahead to the European reports on economic growth, due for release later this week.
Oil was lifted as dealers moved in to pick up bargains, with New York’s main futures contract, light sweet crude for delivery in March, rising 64 cents to 71.83 dollars. London’s Brent North Sea crude was up 66 cents to 70.25 dollars a barrel.

Karachi violence blow to Pakistan economy

KARACHI, Feb 8: A wave of political and sectarian violence sweeping Karachi threatens heavy financial losses in the country’s economic hub, where analysts fear Islamists are bent on fanning maximum instability, reports AFP.
Bomb attacks targeting Shiite Muslims have killed 76 people in six weeks, devastating riots and a surge in political shootings have sparked fears that after relative quiet, Karachi
is returning to the eye of the storm.
Pakistan’s richest city has been spared the worst of a two- year Islamist bombing campaign but is plagued by crime and kidnappings, which some analysts say militant groups use to bankroll campaigns in the northwest and Afghanistan.
“Karachi accounts for nearly 45 per cent of Pakistan’s GDP,” independent economist A.B. Shahid told the news agency.
“It translates into roughly 15 billion rupees (180 million dollars) per day and tax revenues of one billion rupees per day,” he said.
The city is a national headquarters for industry and the service sector, a bustling port city on the Arabian sea with a teeming population of 16 million.
“If the collapse of Pakistan’s economy is the intention of its adversaries, then the easiest route to follow is ensure that Karachi’s activity comes to a complete standstill,” said Shahid.
Pakistan recorded two percent gross domestic product growth last fiscal year, which ended on June 30, the worst-recorded economic growth since the financial year 1997-1998.
Ashfaq Hasan Khan, once economic advisor to former president Pervez Musharraf, said violence in Karachi was aimed at crippling Pakistan’s economy.
“Karachi has been spared of terrorism and violence for a long time and was contributing massively to the country’s weak economy, but now the plotters want to completely cripple Pakistan’s economy by attacking our port city,” he said.
It is largely impossible to calculate exact losses caused by violence and closures, such as for mourning after December 28 and February 5 bomb attacks on Shiite Muslims.
“We can’t calculate the exact loss to the country’s economy in case of violence or terror attacks on Karachi because it involves many factors. But any day Karachi closes, it loses many billions of rupees,” said Khan.
The shutdown of the city Saturday, when thousands attended funerals for the 33 people killed on February 5, cost 12 to 15 billion rupees, he estimated.
Officials say growing security concerns and targeted killings, which have exposed political tensions, tarnish Karachi’s attraction for foreign investors.
“We are painstakingly convincing foreign investors to come here and many of them do agree but one incident forces them to pull back,” Zubair Motiwala, an investment advisor in the provincial government, told the news agency.
“Militancy in the northwest is dangerous for Karachi as well, as foreign investors take a general view of the whole country,” Motiwala said.
The situation also bodes ill for the stock market, still recovering from an abysmal 2008, when it suffered heavily from political turmoil, militancy and the global recession.
“Violence in Karachi affects market sentiments and results in a slowdown in foreign investment,” said Mohammad Sohail, chief of Topline Securities.
The government paid around two billion rupees (24 million dollars) to traders and shopkeepers whose shops and commodities went up in smoke when arsonists and rioters went on the rampage after the December 28 attack.
“Violence after the blast on Ashura damaged around 1,500 shops in 30 markets in Karachi, which damaged confidence of investors a great deal,” said Motiwala.
Hundreds of workers are still out of work, waiting for their businesses to be rebuilt.
They experienced further problems from political violence, which officials say has killed around 85 people, mainly activists from Awami National Party (ANP) and Muttahida Qaumi Movement (MQM) so far this year.
Both ANP and MQM are coalition partners of the ruling Pakistan Peoples Party (PPP) in Sindh province, of which Karachi is the capital.
“I am father of four surviving on daily wages,” said 31- year-old Mohammad Asghar, who said for four days he could not go out to work in his western Orangi neighbourhood, where many of the killings were concentrated.
“My pocket feeds my children. When it is empty my kids go hungry,” he said.

‘Dear John’ bumps ‘Avatar’ with $32.4m debut

LOS ANGELES, Feb 8: A sci-fi love story has given way to an earthbound romance at the box office, livening up typically slow times at theaters over Super Bowl weekend, reports AP.
Released by Sony’s Screen Gems banner, “Dear John” debuted as the No. 1 movie with $32.4 million, knocking off “Avatar” after seven weekends in first place, according to studio estimates Sunday.
“It is very cool to know that it was our movie that audiences just totally embraced and made No. 1 for the weekend,” said Rory Bruer, head of distribution at Sony. As for runaway blockbuster “Avatar,” he quipped, “I think they’re going to be fine in the long run.”
“Avatar” slipped to No. 2 with $23.6 million, raising its domestic total to $630.1 million. Directed by James Cameron, 20th Century Fox’s “Avatar” surpassed his own “Titanic,” which had held the domestic revenue record at $600.8 million.
With a record $2.2 billion worldwide, “Avatar” also has soared past the $1.8 billion “Titanic” took in globally.
Factoring in today’s higher admission prices, however, “Avatar” has sold fewer tickets than “Titanic.”
“Avatar” had been No. 1 domestically longer than any movie since 1997’s “Titanic,” which held on at first place for 15 weekends. The studio was unconcerned that “Avatar” finally fell out of the top spot.
“It had to happen sometime,” said 20th Century Fox distribution executive Bert Livingston. “There’s nothing that could disappoint me with this movie.”
By the eighth weekend, most Hollywood movies have long since dropped out of the top 10 rankings.
“Avatar” still is going strong after eight weeks, with the added luster of a monthlong buildup to the Academy Awards on March 7. Following the example of Oscar champ “Titanic,” “Avatar” tied for the lead at the Academy Awards with nine nominations and is a front-runner to win best picture.
Fox executives would not speculate what number “Avatar” eventually might hit at the box office.
“Who knows what that is? It just keeps on going,” Livingston said.
The weekend’s other new wide release, Lionsgate’s spy story “From Paris With Love,” opened at No. 3 with $8.1 million. The movie stars John Travolta and Jonathan Rhys Meyers as CIA men trying to crack a terrorist plot.
Fox Searchlight’s acclaimed country-music tale “Crazy Heart” expanded from narrow release and broke into the top 10, coming in at No. 8 with $3.7 million. Jeff Bridges and Maggie Gyllenhaal have acting Oscar nominations for the film, which follows a boozy country star trying to turn his life around.
While “Avatar” features a human-alien romance light-years away, “Dear John” centers on a long-distance love story between a soldier (Channing Tatum) and his sweetheart (Amanda Seyfried) back home.
“Dear John” had a record opening for Super Bowl weekend, topping the $31.1 million debut for “Hannah Montana & Miley Cyrus: Best of Both Worlds Concert” in 2008.
The movie was based on the novel by Nicholas Sparks, whose Hollywood adaptations such as “The Notebook” and “A Walk to Remember” have been steady draws for women. Female crowds made up 84 percent of the audience for “Dear John,” according to Sony.
Sparks “creates these stories that really pull at your heartstrings, and certainly that may be first and foremost for women rather than men, though I think a few of us have hearts, too,” Bruer said. “But his stories really resonate and are very compelling for women.”
That bodes well for the movie over Valentine’s Day weekend, said Geoffrey Ammer, head of marketing for Relativity Media, which produced “Dear John.” Valentine’s weekend draws big date crowds, with women often picking which film to see.
Business on Sunday was predictably slow as football fans watched the Super Bowl instead of going to the movies. But “Dear John” already exceeded industry expectations with $26.2 million on Friday and Saturday.
“Super Bowl weekend isn’t about men. It’s about women,” said Paul Dergarabedian, box-office analyst for Hollywood.com. “This counter-programming strategy just absolutely works, the female audience propelling a movie to unprecedented heights.”
Hollywood could use more fresh hits like “Dear John” if it hopes to match 2009’s record box office pace. The first couple of weeks this year, “Avatar” had revenue and attendance running well ahead of last year.
But revenues have now declined for four straight weekends. So far in 2010, domestic revenues are at $1.2 billion, 1.5 percent ahead of last year’s, according to Hollywood.com.
Factoring in higher ticket prices this year, though, movie attendance is down 0.5 percent.
Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Final figures will be released Monday.

JAL to stay with AA

TOKYO, Feb 8: Japan Airlines has decided to maintain its current tie-up with American Airlines (AA) and will end talks with Delta Air Lines, local media reported today, reports AFP.
American Airlines and Delta Air Lines are competing to take a stake in JAL despite its bankruptcy filing last month with 26 billion dollars of debt — one of Japan’s biggest ever corporate failures.
Japanese media had previously said JAL planned to switch to Delta and its SkyTeam airline alliance from American Airlines’ Oneworld alliance as part of its recovery plan.
But JAL’s new management and the government-run Enterprise Turnaround Initiative of Japan, which supervises the airline’s revival, have concluded that the switch would be costly and risky for JAL, the Asahi Shimbun and other news reports said on their web sites.
A JAL spokesman would not confirm the report, saying: “Nothing is decided on this issue and the reports are based on speculation.”
Earlier this month, Japan Airlines’ new management team said it was starting from scratch in its talks with foreign rivals about a possible tie-up, part of efforts to revive the stricken carrier.
Both US carriers are offering financial assistance to JAL — which is slashing more than 15,600 jobs and axing unprofitable routes — in return for cooperation in areas such as joint flight operations through code-sharing.

Oil rises

SINGAPORE, Feb 8: Oil rose in Asian trade today as investors returned to the market after a massive selloff triggered by weak US jobs data and debt woes in the eurozone,
analysts said, reports AFP.
New York’s main futures contract, light sweet crude for delivery in March, climbed 16 cents to 71.35 dollars a barrel.
London’s Brent North Sea crude for March was up 25 cents to 69.84 dollars per barrel.
“What we’re seeing is a technical rebound. Investors are taking the opportunity to buy into the market after the massive selloff last week,” said Serene Lim, a Singapore-based oil analyst with the ANZ bank.
The markets digested news Friday that the US economy lost 20,000 jobs in January.
The non-farm payrolls data fell short of expectations for a gain of 15,000 jobs that would have been a clear sign of a turnaround in the troubled labour market and overall economy after a massive stimulus effort by the government.
The report showed the jobless rate eased to 9.7 per cent from 10.0 per cent in December, based on a household survey that appeared to contradict the payrolls data, but partly reflected how discouraged workers are leaving the labour force.

Taiwan export growth highest

TAIPEI, Feb 8: Taiwan’s exports last month registered their strongest growth in nearly 34 years due to a recovery in global demand for the island’s high-tech goods, the
government said today, reports AFP.
January shipments totalled 21.75 billion US dollars, marking year-on-year growth of 75.8 percent, the best performance since August 1976, the finance ministry said.
Imports in January were 19.25 billion dollars, up 114.7 percent from a year earlier, the best since September 1974 as the nation’s recovery form the global slump picks up speed. The month’s trade surplus fell 26.8 percent from a year earlier to 2.49 billion dollars.
In January, exports of electronic goods rose 106.0 per cent from a year earlier to 6.11 billion dollars, while sales of optical products grew 233.1 per cent to 1.75 billion dollars.
Taiwan sold 9.54 billion dollars worth of goods to China and Hong Kong last month, up 157.5 percent from a year earlier, while exports to the US rose 13.7 percent from a year ago to 2.22 billion dollars.

TRADE NOTES

Aktel chief arrives today

News Report
Tan Sri Ghazzali Sheikh Abdul Khalid, chairman of Axiata (Bangladesh) Limited, will arrive in the city this (Tuesday) morning on a three-days official visit.
During his stay, Ghazzali will meet senior government officials as well as and management and senior officials of Aktel.
Ghazzali started his career as a diplomat since 1971 and became the Ambassador of Malaysia to the United States in March 1999.
Before his appointment to Washington, D.C., he served as the deputy secretary-general at the ministry of foreign affairs, Malaysia.
Over the years, his overseas appointments have included postings to Hong Kong, Germany, Austria, Thailand, the United Kingdom, Zimbabwe and with the permanent mission of Malaysia to the United Nations.
Ghazzali, an economics graduate of University of La Trobe in Australia, has been a director of Axiata (Bangladesh) Limited (former TM International) since March 24,2008.

Canadian trade delegation to visit Bangladesh

An eight-member Canadian trade delegation will visit Bangladesh from February 13 to 17 to promote the export of Canadian agricultural products to Bangladesh, reports BSS.
The team comprising members of the Ministry of Agriculture of the government of Saskatchewan and the Saskatchewan Trade & Export Partnership (STEP) is expected to meet with senior government officials and members of the Bangladesh business community.
It will also hold seminars on Canadian agricultural products in Dhaka and Chittagong.
Canada is a global leader in the production and export of many agricultural products, including wheat, peas, lentils, chickpeas, mustard seed and canola, and Saskatchewan is the country’s largest producer of these products.
Saskatchewan, which has 53% of Canada’s arable land, produces approximately 60% of Canada’s wheat (winter wheat, spring wheat and durum) and 44% of Canada’s canola.
Canada exported a record Tk 3900 crore food and other agricultural products to Bangladesh in the first 11 months of 2009.
The objective of the current mission is to develop opportunities in agri-food products, meet local agri commodity companies and promote Canada’s pulse producers and processors as reliable sources of quality pulses, the release said.
STEP is a non-profit, membership- based organization designed to promote the growth of Saskatchewan’s export industry. It assists provincial businesses to realize global marketing opportunities through specially-tailored services and programs.