Jakarta faces $3 billion traffic nightmare

Jakarta's traffic chaos costs Indonesia billions of dollars a year in a depressing reminder of the gap between the country's ambitions for growth and its daily realities, analysts said.

The Indonesian capital ranked last of all in a global survey of commuter satisfaction in 23 cities published last month by business research firm Frost & Sullivan.

The Journey of Experience Index poll of almost 15,000 people around the world found that travellers in Jakarta were the most miserable of all, gloomier even than those in Rio de Janeiro and Cairo — notorious for its dire gridlock.

Respondents in Copenhagen, Seattle and Sydney were most satisfied with their commuting experience, based on criteria such as speed, cost and overall comfort.

But Jakarta scored less than half the marks of New Delhi.

One traveller who recently learnt the hard way how frustrating and costly Jakarta's traffic can be was Australian songstress Kylie Minogue, who had to delay a concert by 30 minutes because her crew were late.

Minogue herself avoided the traffic by flying to her June 27 gig in a helicopter, an expense that would be unnecessary in a city with a coherent transport system.

'The economic loss from traffic congestion problems in Jakarta is 28.1 trillion rupiah ($3.25 billion) per year, based on a study I made in 2007,' University of Indonesia environmental engineering expert Firdaus Ali told the AFP.

So what went wrong? Officials say they have been unable to keep up with the city's huge growth over the past three decades and the daily influx of millions of workers from the surrounding urban sprawl.

The challenges are indeed immense.

National annual growth of private vehicle ownership has averaged 11 to 13 per cent for the past decade, well above similar rates in developed countries, according to data from the University of Gadjah Mada.

But Institute of Transportation Studies chairman Darmaningtyas said successive Jakarta administrations needed to shoulder the blame for ignoring warning signs and failing to build public transport infrastructure.

'What they did was just facilitate the private vehicle industry. The Jakarta administration has to build a good mass transportation system, bike paths and pedestrian walkways,' he said.

Parts of the city are still studded with grimy concrete pillars — the remnants of a plan to build an inner-city monorail that stalled due to mismanagement and funding problems.

Haphazard commercial property development makes matters worse, leaving office blocks and shopping malls in places they never should have been, analysts said.

'The Jakarta administration still issues permits for commercial buildings such as malls in areas where they are no longer suitable, creating more congestion,' Indonesia Transportation Society expert Muslich Asikin said.

'The average speed of vehicles in the city is now about 20 kilometres (12.5 miles) per hour. From the business perspective, that's not acceptable.'

Indonesia has one of the fastest-growing economies in the world, with output expansion expected to top six per cent this year and next.

Yet its ports, roads and airports are hopelessly inadequate for the pace of growth it hopes to sustain, according to investors and analysts.

The government has announced plans to spend $140 billion on infrastructure until 2014, more than half of which will have to come from the private sector.

That is the year some experts predict Jakarta will reach 'total gridlock', the point at which every main road and back street is almost permanently clogged with barely moving, pollution-spewing cars.

Source : New Age

New IMF chief faces challenges first day on the job

The International Monetary Fund's new managing director, Christine Lagarde, will make her debut under intense pressure this week, as Greece's financial woes pose an urgent challenge.

The French executive is expected to land in Washington on Monday, the Independence Day holiday for the United States. She will officially begin work on Tuesday morning and hold a press conference Wednesday.

A 'busy work agenda awaits,' declared the IMF in its internal online magazine, while it stressed one of Lagarde's most pressing items includes the 'difficult policy choices needed to help global recovery (and) address the euro area crisis.'

'The global economy is being buffeted by continued uncertainty in Europe, uprisings in the Middle East, signs of overheating in some fast-growing emerging market economies, and rising commodity prices that pose a particular challenge for low-income countries,' the publication added.

But the Greek economic crisis eclipses all other priorities.

In the immediate term, Greece is expected to receive 12 billion euros ($17.4 billion) from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.

This round the IMF's share includes 3.3 billion euros ($4.7 billion), according to the schedule of payments laid out in May 2010.

As part of a longer term strategy, the IMF must find a way to finance a country that in all likelihood will not be able to return to the markets for long-term borrowing in early 2012, as expected.

In the Greek crisis, Lagarde transitions to the IMF zone from her eurozone duties as France's former finance minister.

Before securing the job, she promised she would hold the eurozone countries to the same standards as other member states.

'The IMF does not belong to anybody. It belongs to the 187 members of the Fund, and the management of the Fund does not belong to any particular nation or region. We can't effectively represent the world's economic balance of power if certain economies are under-represented,' she said.

Lagarde has said that Greeks must make difficult but necessary adjustments to restore viability in their public finance sector and competitiveness to their country.

'This is about a country's fate, its security. And I believe at that point, we have to ignore the small and big political differences for the service of the country,' she said.

In addition she said she wants to ensure some continuity from her predecessor, Dominique Strauss-Kahn.

But the two do not hail from the same schools of thought. Strauss-Kahn is a Social Democrat while Lagarde is a 'moderate liberal.'

The 2008 Nobel Prize-winning economist Paul Krugman said the 'serious, responsible, and judicious' Lagarde was still a mystery.

Source : New Age

Samsung drops lawsuit against Apple

Samsung Electronics Co has dropped a lawsuit against Apple Inc that claimed Apple copied many of Samsung's innovations, according to a report from Bloomberg on Saturday.

Samsung dropped the suit on Thursday, Bloomberg said. The news service quoted Nam Ki Yung, a spokesman for the Suwon, South Korea-based company as saying the company wanted to 'streamline' the legal proceedings.

Spokespersons from Samsung and Apple did not immediately reply to requests for comment.

Apple and Samsung are part of a wider web of litigation among phone makers and software firms over who owns the patents used in smartphones and tablets, as rivals aggressively rush into a market in which Apple jumpstarted with iPhone and iPad.

Samsung had launched the suit in April as a counter-claim against Apple, which has sued Samsung previously, saying Samsung's Galaxy line of mobile phones and tablets 'slavishly' copies the iPhone and iPad.

Source : New Age

Europe clears urgent aid to save Greece from default

Eurozone finance ministers cleared the way Saturday for Greece to receive urgent funds to avoid imminent bankruptcy, but warned it would take weeks to conclude a new bailout for the debt-hit nation.

Greece is expected to receive 12 billion euros from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.

The IMF is due to clear its slice of the next instalment, 3.3 billion euros, next week. The eurozone's share amounts to 8.7 billion euros.

Following a more than two-hour conference call, the ministers said in a statement they would also determine the details of a second bailout for Greece, including the scale of private sector participation, in the 'coming weeks.'

German finance minister Wolfgang Schaeuble indicated that Greece may have to wait until autumn for a new rescue package as Berlin wants Athens to follow through with its commitments, including privatisations 'that should begin immediately.'

The IMF welcomed Europe's move Saturday.

'We welcome the eurogroup's commitment to a financing strategy that ensures the Greek economic program is fully covered,' chief International Monetary Fund spokeswoman Caroline Atkinson said in a statement.

'This commitment — together with the recent parliamentary passage of the necessary fiscal measures in Greece — will enable the IMF's executive board to consider the completion of the fourth review and the release of the next tranche under the current stand-by arrangement with Greece.'

Source : New Age

Japan officials draw up Tepco break-up plan

A group of Japanese government heavyweights have written a secret proposal to break up Tokyo Electric Power Co and nationalise its nuclear operations, a newspaper said on Sunday.

The plan, drawn up by deputy chief cabinet secretary Yoshito Sengoku, would force Tokyo Electric sell its power distribution business and bring its nuclear power operations under state control, leaving the company with power generation operations using thermal and hydraulic power plants.

It would leave Tokyo Electric, better known as Tepco, with only 1.6 trillion yen ($19.85 billion) in power business assets compared with 7 trillion yen at present, the Mainichi daily said, citing informed sources.

The proposal has been kept under wraps as the government focuses on a taxpayer bailout for the utility to soothe market worries.

Sengoku, who has held meetings with Tepco chairman Tsunehisa Katsumata several times, has notified Katsumata about the internal document, the report said.

In June, the government approved a draft law to help Tepco pay billions of dollars in compensation to refugees from around its crippled Fukushima Daiichi nuclear plant.

The nuclear crisis began with the March 11 earthquake and tsunami, which knocked out reactor cooling systems at the plant, triggering meltdowns and radiation leaks that have yet to be brought under control.

For years Tepco has resisted any attempt to end its monopoly on power in Tokyo and the surrounding region. The disaster has given its opponents a chance to break up Asia's biggest power company.

Source : New Age

London investors to focus on BoE interest rate call this week

British investors will focus this week on an interest rate decision from the Bank of England amid a smattering of economic data and a dearth of company earnings news.

London's FTSE 100 index advanced 5.13 per cent over the past week to finish at 5,989.76 points on Friday — a massive jump on the back of easing fears over the Greek and eurozone debt crises.

The British central bank will announce its latest decision on Thursday after a two-day gathering of the nine-member monetary policy committee, with most economists expecting no change.

Policymakers kept the BoE's key interest rate in June at a record low 0.50 per cent, where it has stood since March 2009, as worries over weak economic growth offset high inflation.

Britain's manufacturing sector barely expanded in June, when the purchasing managers' index dropped to 51.3 compared with 52.0 in May, according to data from research group Markit on Friday. Any score above 50 indicates growth.

'The UK manufacturing PMI fell to 51.3 in June. The outcome marked the lowest reading since September 2009 and the index is now more than 10 points below its peak of 61.6 in January,' ABN Amro economist Joost Beaumont said.

Source : New Age

China IPOs slow in H1

China's IPO market slowed by a fifth in the first half of 2011 amid a lack of mega deals that hit the market the year before, with fundraisings dominated by small businesses, a trend that analysts said could last for a few more months.

In the first six months, only about one tenth of companies seeking a listing had chosen to do so on the Shanghai Stock Exchange while the rest had gone to the smaller Shenzhen bourse, which houses the Nasdaq-style ChiNext market.

Shanghai's sluggish IPO market had pushed down total IPO proceeds raised in mainland China by 20 per cent from a year ago to $24 billion in the first half of the year, data complied by Thomson Reuters showed.

The trend may last for a while longer pending the launch of the long-awaited international board to allow top-quality multinationals such as HSBC and Coca Cola to sell shares to domestic investors, analysts said.

'There will be larger IPOs coming to the market, especially if you take into consideration the international board, which we believe will be launched in the next six to 12 months,' said Cao Xuefeng, head of research at Huaxi Securities in the south western city of Chengdu. The two biggest IPOs in Shanghai this year were the $1.4 billion Sinovel Wind IPO and the $710 million IPO of Pangda Automotive Trade.

That pales when compared to the Hong Kong Stock Exchange which had seen a string of high-profile IPOs this year, including commodities trader Glencore's $10 billion deal and Italian fashion house Prada's $2.1 billion offering.

Source : New Age

market Disclosures

Nurul Islam , one of the sponsors/directors of the bank, has reported his intention to sell 10,00,000 shares out of his total holdings of 68,42,958 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Shahjalal Islami Bank
Khandoker Sakib Ahmed, one of the sponsors/directors of the bank, has reported his intention to sell 1,30,000 shares out of his total holdings of 62,67,701 shares of the bank at prevailing market price through the stock exchange within next 30 working days.

Delta Spinners
Trading of the shares of the company will remain suspended on record date today for EGM.

ICB mutual funds
On the close of operation on June 28, 2011, the ICB mutual funds have reported net asset value for First ICB MF of Tk 10,615.83, Second ICB MF of Tk 2,529.86, Third ICB MF of Tk 1,894.61, Fourth ICB MF of Tk 2,204.02, Fifth ICB MF of Tk 1,918.43, Sixth ICB MF of Tk 732.02, Seventh ICB MF of Tk 1,134.37 and Eighth ICB MF of Tk 828.86 per unit on current market price basis against face value of Tk 100 each. Whereas, on the basis of cost price, NAV per unit of the said eight ICB mutual funds were Tk 1,173.41, Tk 780.59, Tk 592.67, Tk 587.86, Tk 427.55, Tk 240.77, Tk 320.74 and Tk 277.71 respectively against face value of Tk 100 each.
    Source: DSE
Source : New Age

Northern General insurance re-elects chairman

Nasiruddin has been re-elected chairman of the board of directors of Northern General Insurance Co Ltd.

The board at its 129th meeting re-elected Nasiruddin as the chairman, said a news release.

Nasiruddin is a sponsor director and chairman of executive committee of Social Islami Bank. He is the owner of Nasim Trading Company and Nams Trade Corporation.

Source : New Age

Caviar makes itself at home in UAE desert

Far away from the Caspian Sea, sturgeon are raised in ponds cooled in the heart of the Gulf desert of Abu Dhabi, carrying in their wombs a form of black gold strange to these countries — caviar.

Production of the desert-grown caviar will begin later this year and by 2012, consumers in the oil-rich Gulf region will begin savouring the 'food of the kings'.

'Abu Dhabi is an ideal location for distribution of the world's growing markets for high-quality caviar and sturgeon fillet. In fact, in the UAE alone, demand is around 14 tonnes per year,' said Robert Harper, group commercial director at the Royal Caviar Company.

The first stock of fish was brought in to the United Arab Emirates from Germany and the factory, which will breed its own fish in future, aims eventually to produce 35 tonnes of caviar per year.

In the 50,000-square-metre (5,38,000 square feet) factory, in the Abu Dhabi's industrial zone, special equipment is used to clean water using a biological filtration system with a semi-automated feeding system.

The group also plans to finally produce its own fish food.

In another room, technicians in lab coats in carefully place the anaesthetised female fish on a marble slab, where she undergoes an ultrasound test to check for the presence of caviar, the results of which could either show no eggs, white eggs or the precious black caviar eggs.

'In this micro-environment, the sturgeon has no natural predators, and its mortality rate is extremely low,' says Harper. 'Caviar lovers can enjoy legally and ethically produced caviar.'

Meanwhile, Ahmad al-Dhaheri, chief executive officer of Bin Salem Holding group, which owns the The Royal Caviar Company, told reporters: 'The sturgeon are threatened with extinction in its natural habitat in the Caspian Sea and by producing it here, we are helping protect this species of fish.'

The waste water will be used to water green areas in the desert emirate of Abu Dhabi, said Dhaheri.

The project costs $115 million, according to the chief financial officer of the parent company, Michel Nassour.

The UAE-made caviar will be sold at prices between four and six dollars per gram, said Harper, similar to the prices of Caspian Sea caviar.

The factory will also produce up to 700 tonnes of fresh and smoked sturgeon meat every year.

'Genuine' caviar is prized worldwide as a luxurious and highly expensive product due to the scarcity of the sturgeon and the long time it takes to the fish to carry the sought-after black eggs.

A sturgeon does not yield caviar until after four-and-a-half years, when its weight reaches around 10 kilogrammes, one-tenth of which would be pure caviar, said Christoph Hartung, chairman of United Food Technologies, the German partner in the project.

'The caviar of the desert will be excellent,' said Hartung.

The finest caviar comes from the Caspian Sea, where Iran is a leading producer.

Russia, the world's second-largest official producer of caviar, banned the harvest of sturgeon caviar in 2006 to help fight overfishing. Caviar production resumed in specially designed farms in 2010.

The Abu Dhabi-based factory, which began operations in 2008, currently has nearly 18 tonnes of fish with 124 more tonnes to arrive this year.

They will give birth to what the company says is the 'first generation of local' sturgeon in the Emirati capital, which sits on almost eight per cent of the world's reserves of oil — the country's other black gold.

Source : New Age

MA Halim Chy new AMD of Pubali Bank

The board of directors of Pubali Bank Limited recently appointed MA Halim Chowdhury as additional managing director of the bank on contractual basis.

Prior to the new assignment, he was deputy managing director of the bank, said a news release.

He was promoted to general manager of the bank in 2006. He joined Pubali Bank as principal officer in 1988.

Source : New Age

Tapan Chy new chairman of Pioneer Insurance Company

Tapan Chowdhury has recently been elected as the chairman of Pioneer Insurance Company Limited.

He was elected in the 158th board meeting of the company held on Thursday, said a news release.

Former adviser to the caretaker government, Chowdhury is the managing director of Square Pharmaceuticals, Square Textiles and Square Hospitals. He is also an executive committee member of board of governors of Bangladesh Enterprise Institute and board of directors of the Bangladesh Textile Mills Association.

Source : New Age

BlackBerry under attack in corporate cradle

The BlackBerry, once ubiquitous in business, faces deep challenges in that market as more companies allow employees to pick their own smartphones and add third-party security applications.

One of the BlackBerry's main selling points has been Research in Motion's top-tier security and management features, which appeal to IT managers eager to control what workers do with corporate information and protect business systems from cyber attacks.

But with companies such as Good Technology and MobileIron offering applications that could untether IT managers from their BlackBerrys, analysts say that consumer-market pressures could intrude into RIM's mainstay corporate market.

Only two of nine major US companies contacted by Reuters said they exclusively use the BlackBerry, namely Boeing and Exxon Mobil.

The remaining seven—Alcoa, Caterpillar, DuPont, Kraft Foods, PepsiCo, Microsoft and Verizon Communications — support at least one other brand, such as Apple's iPhone or phones that run Google's Android or Microsoft Windows.

'I would say their enterprise base has been besieged really, first by Apple, then by Android,' John Jackson, a mobile device analyst at CCS Insight, said of RIM. 'What's happening in the consumer market is repeating itself in the enterprise market. They've been materially hurt in their core enterprise market.'

RIM's share of the US smartphone market stood at 25 per cent in April, down from 35 per cent in October last year, pushing BlackBerry to third place from first place in the market, according to research firm comScore.

Source : New Age

Majority feel British economy getting worse

Two thirds of British voters think the economy is getting worse, according to a survey out Sunday, while an even bigger majority think public spending cuts are inevitable.

The ICM poll in the News of the World newspaper found that 66 per cent thought the British economy was worsening and 23 per cent thought it was improving.

Some 66 per cent said they had cut back on spending, with a majority of those who had done so saying they were eating out less, giving up luxuries, sacrificing holidays and only buying sale items.

Thirty-eight per cent said they could never imagine having the money they wanted to meet their needs, while 52 per cent said they had less hope for the future, and felt much poorer than they did two years ago.

The News of the World said the results showed Britain's resilience was being tested and scared citizens were crying out for leadership and a bit of hope.

When asked who they would rather have tackling Britain's budget deficit, 41 per cent said Prime Minister David Cameron and finance minister George Osborne, compared to 25 per cent for the opposition Labour Party.

Cameron's Conservative-Liberal coalition government has embarked on an austerity package of spending cuts in a bid to rein in Britain's record deficit.

Some 82 per cent thought the government's cuts programme was inevitable after bailing out Britain's stricken banks during the financial crisis.

While 77 per cent supported reining in spending, two-thirds of voters said the cuts were being imposed too fast.

Source : New Age

ECB set to unveil 2nd rate rise

The European Central Bank is set to unveil its second rate rise since April on Thursday, but might then pause to assess the eurozone's economic prospects as Greece grapples with its debt crisis.

ECB president Jean-Claude Trichet repeated last week that the ECB governing council was 'in a state of strong vigilance' regarding inflation, a code phrase for a rate hike announcement.

'A 25bp (basis points) hike to 1.5 per cent therefore looks like a done deal,' said Capital Economics senior European economist Jennifer McKeown, a view shared by essentially all others.

The ECB wants to bring eurozone inflation that now stands at 2.7 per cent back towards its target of just below 2.0 per cent.

It will also consider the broader macro-economic picture, which includes unemployment that remained at 9.9 per cent for the third month in a row in May amid signs the 17-nation economy was cooling down.

The latest purchasing managers index published by the research group Market showed in addition a widening gap between core eurozone members and several on its periphery.

In London meanwhile, the Bank of England is expected to keep its main rate at a record low level of 0.50 per cent on Thursday.

Source : New Age

Greece wary anti-austerity riots may impact tourism

With television images of anti-austerity rioters clashing with police in Athens, the Greek government hopes the pictures will not affect one of the country's main moneymakers — tourism.

'Fortunately we do not see many cancellations, but we must be very careful to safeguard tourism and promote Greece's strong points,' Yiorgos Telonis, chairman of the Hellenic association of travel and tourist agencies (Hatta), told the AFP on Sunday.

But Telonis warned of the long-term effects the riots may have and would not rule out more cancellations, especially for hotels located around Syntagma, the capital's main square where most of the clashes took place last week.

Greek lawmakers on Wednesday voted a massive austerity package demanded by international creditors as an angry mob protested against the measures outside the parliament building which overlooks the square.

Protestors shattered the marble stairs of the front entrances of three luxury hotels located around Syntagma square using the rubble as ammunition against the police.

The rioting prompted the high-end King George hotel to evacuate the building.

The Association of Athens-Attika Hotel Owners said it supported the decision as well as steps taken by other affected businesses.

'The association stands by the hotel that was forced to take extraordinary measures for the protection of its guests and employees,' the association said on Thursday.

'Some foreign visitors are afraid of what they see on TV, but this only affects Athens, not the islands,' a travel agent who would not give her name told the AFP.

'That's why more and more planes fly directly to the islands, bypassing Athens,' she added.

The Greek government is trying hard to persuade foreign tourists that Greece is a safe destination.

'These events, although unfortunate, were local and do not represent in any way everyday life in the city. Visitors in Athens continue to enjoy a secure and tranquil environment and a very vibrant cultural experience,' minister of culture and tourism Pavlos Yeroulanos said.

'Greece is a country that provides an excellent tourism product which must not be tarnished in any way. We must now turn the page.'

Yeroulanos told private television channel Skai that a 'collective effort' had been undertaken to lure clients from countries like Israel, Russia and Turkey to Greece.

'But honestly we don't get a second chance. What happened the other day was the beginning of a very dangerous situation,' the minister said.

Government efforts to boost tourism in the wake of the political and social upheaval in North Africa that left thousands of tourists to seek other destinations such as Greece seem to be paying off.

'There is a five to six per cent increase in the number of visitors from last year, with the figure expected to rise to eight per cent in the coming months,' the chairman of the association of travel and tourist agencies told the AFP.

'Only through tourism will Greece achieve growth and reverse the recession troubling the country,' Telonis added.

Greece's tourism industry generates 18 per cent of gross domestic product.

Protests last year against the socialist government's austerity measures aimed at overcoming a severe debt crisis had specifically targeted key tourism infrastructure including hotels, Greece's main port of Piraeus and the Acropolis.

At the time, the government offered to compensate travellers stranded because of strikes. Price cuts by operators limited the damage to the industry but caused a fall in revenue.

Source : New Age

Chittagong Customs earns Tk 20,363cr in revenue

The Chittagong Customs House, the country's major revenue earning station, realised a record amount of revenue from import section totalling Tk 20,363 crore in the last fiscal (2010-2011) which is 21.18 per cent more than fiscal 2009-2010.

The amount realised in the just ended fiscal exceeded by Tk 1,098 crore against the target of Tk 19,265 crore. In fiscal 2009-2010, the CCH earned Tk 16,052 crore.

Official sources said the record revenue realisation was possible due to upgraded and transparent monitoring system in the delivery of imported goods, strong drives to realise outstanding tax and duties from the public and private organisations, and effective steps for disposing of pending tax disputes and cases.

Proper utilisation of poor manpower and technology in tax assessment process, and preventive measures to check tax evasion were also some of the steps that resulted in huge earnings in the last fiscal, CCH sources added.

Source : New Age

Energy crisis leaves Pakistan textiles in tatters

Spinning yarn into cloth used to be a path to fortune in Pakistan, but a story of decline encapsulates how far a crippling energy crisis and rocketing inflation are suffocating the economy.

Power cuts sometimes lasting more than 12 hours a day have forced factory owners in the country's cloth capital Faisalabad to switch off the lights and sell their looms for scrap, leaving tens of thousands of workers jobless.

The country is the world's fourth-largest producer of cloth and the industry accounts for 60 per cent of export revenue according to official data. But the shortages are heaping pressure on Pakistan's crippled and debt-ridden economy.

Malik Ammanullah Mani, 31, used to be a leading light on the party circuit. As manager of his family's textile factory, he belonged to a small, rich cabal that regularly graced private members' clubs and dined at five-star hotels.

But in the three years since Pakistan returned to elected rule, the energy crisis has steadily worsened amid poor investment and rampant theft from the grid, causing daily cuts and a sharp rise in the cost of power.

Inflation has also hit the price of thread — leaving Mani no option but to sell most of his family's weaving looms.

'Electricity and yarn prices have become unaffordable, for most of the time there is no power to run our looms, so we had to sell half of them to a scrap dealer,' Mani told the AFP as other workers sat idle in his closed factory.

The former rich kid now works a loom in his father's factory and says he gets by on pocket money of just 500 rupees ($6) a week.

'In good times, I was manager and distributing wages among my workers. Now I myself work on the looms we have left because I have nothing to pay workers,' said Mani, kitted out in a black t-shirt and jeans covered in chemical marks.

Faisalabad's textile district has now become a haven for metal dealers who buy looms from closing factories and sell them as scrap.

Those dealers' warehouses are filled with broken machinery while workers wait idle in weaving factories, plunged into darkness until the power resumes.

Industry leaders in Faisalabad, which is situated in Pakistan's most populous province of Punjab, say the shortage of electricity and gas has forced hundreds of units to shut down, with unknown numbers more in line to fall.

'Almost 800 units of a total of around 2,000 factories in Punjab province have closed down and many more are likely to be shut,' said Sheikh Abdul Qayyum, former head of the city's chamber of commerce and a factory owner.

'Around 5,00,000 workers lost their jobs in the province — about 1,00,000 in Faisalabad alone due to the closure of the factories,' he said.

The country faced a total shortfall of 7,739 megawatts of electricity in the peak summer month of June, before monsoon season, while the overall shortfall in the gas supply to industry is around 400 million cubic feet per day.

The authorities manage the shortages by cutting supply for hours at a time to industrial and domestic users.

Towns and cities across Pakistan are rocked by daily summer protests against the crisis and the government's perceived inaction, sometimes leading to violent clashes with riot police.

Despite a wealth of natural resources, Pakistan produces only 80 per cent of its electricity needs and even some of that comes from imported fuel.

'Lack of political will, bad governance and administrative inabilities pushed us into the crisis. If the situation stays the same, I have no hope things will improve,' said Fazlullah Qureshi, former top bureaucrat at the country's planning commission.

Punjab's industrialists blame politicians for exacerbating the crisis, accusing the government of giving preferential treatment to the textile industry in southern province of Sindh, the home of President Asif Ali Zardari.

A constitutional clause approved by parliament last year gives each province first right to use the natural resources they produce, putting Sindh ahead of Punjab in the queue for gas, which in turns fuels electricity generation.

'We want a uniform policy in the country as everybody should share the burden and opportunities,' said Shabbir Ahmed, a senior member of Faisalabad's chamber of commerce.

But the prospect of respite is so remote the Water and Power Development Authority acknowledged last week that power cuts would continue for at least another seven years.

Source : New Age

ADB team to visit Dhaka this month to examine solar funding scope

A consultation mission of Asian Development Bank will arrive in Dhaka this month to examine scope of the installation of 500MW capacity solar energy system in Bangladesh.

The ADB also plans to take an initiative to organise an investors' meeting in Dhaka by September to ensure donors' support in the project, a top official of the Power Division told the news agency on Sunday.

'The consultation mission will oversee the financial and technical viability of the Bangladesh's plans to install 500MW capacity solar energy system and arrange an investors' meeting here,' additional secretary of the power division Taposh Kumar Roy said.

A Bangladeshi high level official team led by adviser to the prime minister Tawfiq-e-Elahi Chowdhury attended a international conference on solar energy sponsored by the Asian Development Bank in Bangkok on May 29 and placed its plea on the issue.

Following the ADB's strategy to promote renewable energy in Asia, the power division has chalked out its plan to set up a solar energy system and projected its plan to negotiate for the fund with the donor agencies to implement the mega solar power project.

'We need three billion US dollars to implement the plan,' Taposh Kumur Roy said.

According to the power division, government sought 60 per cent of the fund as grant money from the donors.

The ADB is discussing with European countries about an investment fund of $500 million for solar projects in developing countries like Bangladesh, official sources said.

The additional secretary said the authorities had identified nine ministries which would implement the solar energy plan in coordination with the power division, official sources said.

The ministries are — power ministry, communications ministry, local government ministry, housing and public works ministry, health and family welfare ministry, religious affairs ministry, education ministry, industries ministry and agriculture ministry.

Source : New Age

BB taking measures to tackle risks to economy: Atiur

Bangladesh Bank is taking different measures to tackle persisting and emerging risks to the country's economy and to ensure inclusive growth, BB governor Atiur Rahman told a programme on Sunday.

The governor was speaking about the role of the central bank at the concluding session of a six-month foundation training programme of the newly-appointed officers of the BB, held at the Bangladesh Bank Training Academy at Mirpur in Dhaka.

Referring to the persisting pressure on the economy mainly from rising inflation, sliding remittance, balance of payment and unstable exchange rate, he said the central bank was working on establishing an effective financial system to deal with the challenges.

He said the BB had already taken some effective measures in its monetary policy to manage inflation when it increased credit flow to agriculture, small and medium enterprises and some other development sectors to expedite growth prospect.

Besides, Atiur said the central bank had also playing a role beyond its traditional trajectory to encourage banks and financial institutions develop eco-friendly and ICT-based industry for achieving sustainable growth.

Source : New Age

Indo-Bangla border markets open July 16

Two border markets between Bangladesh and India will start operations on July 16, said commerce minister Faruk Khan on Sunday.

'We are expected to inaugurate a border market between Lauwaghar in Sunamganj and Balat in Meghalaya on July 16 as the Indian commerce minister [Anand Sharma] assured that he would also participate in the inauguration ceremony,' Faruk told New Age on Sunday.

He said another border market between Baliamari in Kurigram and Kalaichar in Meghalaya would also start operations the same day.

People from the two countries will be able to trade at the markets with their national currencies, Faruk said. The markets will also have currency conversion facilities.

The agreement between India and Bangladesh on border markets has become operational, reported the Press Trust of India on Sunday. The two nations signed the agreement in October 2010.

Locally produced vegetables, food items, fruits, spices, minor local forest produces like bamboos, bamboo grass, and broom sticks can be traded at these markets, said the PTI report.

People from the two sides will be allowed to move across the border to the markets on specific days and time as decided by the authorities.

The Directorate General of Foreign Trade in the Indian Commerce Ministry, which notified the arrangement, said sale of locally produced agriculture and household implements – hatchet, plough, axe, spade and chisel will also be allowed to be traded at these bazaars.

Vendors selling products at the markets will have to be residents of the area within five kilometre radius, the PTI report added.

Commerce ministry sources said more border markets would be set up on a pilot basis, if the two markets brought benefits for the two next-door neighbours.

The two nations first launched border trading in April 1972, just months after Bangladesh had come into existence, but the trading stopped one year later due to rampant smuggling in the border areas.

Source : New Age

DSE turnover tops Tk 1,100cr after two and a half months

Turnover of the Dhaka Stock Exchange on Sunday crossed the Tk 1,100-crore mark again after two and a half months while the bourse's general index continued to rise for the fifth consequent day as both individual and institutional investors went on a buying binge on the hope that the market would rally further.

Market operators said the turnover of the bourse rose to Tk 1,139.45 crore on Sunday from Tk 954.84 on the previous trading day as investors' confidence in the market was on the rise following the government decision to allow undisclosed money to be invested in the equities market.

DGEN, the benchmark general index of the DSE, added 40.28 points, or 0.65 per cent, to close the day at 6,157.51 points.

The bourse's turnover hit an all-time high of Tk 3,249.57 crore on December 5, when the market witnessed a boom, but plunged to Tk 206.41 crore on January 25 following a series of huge stock crashes that discouraged the investors from trading.

A liquidity crisis also hit the market that time as most of the banks as well as other large investors withdrew their overinvestment in December pocketing huge profits.

After the dull period of January-March, the market began to get back on track in April, when the turnover crossed the Tk 1,000 crore mark for the first time after the market debacle. The turnover of the DSE amounted to Tk 1,224.16 crore on April 11.

But, the market started to slip again as investors became panicked once more following uncertainty over implementation of the recommendations of the probe committee on January's stocks scam.

As institutional and large investors remained almost inactive, a fresh liquidity crisis seized

the market, with the turnover of the bourse plunging to Tk 296.49 crore on May 26.

Investors, who lost most of their investment in the latest stock market debacle, took to the streets time and again to protest the relentless fall in share prices. They also demanded government action to address the situation.

Several government attempts including the launching of the Tk 5,000 crore open-ended Bangladesh Fund during the period to stabilise the market and ease the liquidity crisis failed.

The market had become upbeat again before the proposed budget for the current fiscal year was tabled in the parliament on the speculation that the government might allow legalisation of undisclosed money for investment in the capital market for easing the liquidity crisis.

But, when the proposed budget was announced on June 9 without any such provision, the market again turned red, shedding 213 points in a week.

The market, however, had been in an uptrend before the passage of the finance bill with the investors anticipating that the government would finally allow investment of undisclosed money in the capital market. The average daily turnover rose to Tk 800.55 crore and the DGEN added 269.97 points in the past week, when the parliament passed the budget with a provision for allowing investment of undisclosed money in the share market by paying a 10 per cent tax.

Market operators said the extension of the deadline for the banks to bring their exposure in the capital market within the limit and reassess their credit-deposit ratio on source fundoffered by the Bangladesh Bank also brought the institutional investors to the trading floor.  

Turnover increased significantly on Sunday, the first trading day of the current fiscal year.

Of the 256 issues traded on the day, 204 advanced, 49 declined, and three remained unchanged.

Most of the bank issues lost values as investors went for profit selling of the shares.

Insurance and financial institutions sectors were upbeat on the day, while most of the issues in textile and pharmaceuticals sectors also ended in the positive territory.

Salahuddin Ahmed Khan, a professor of finance at Dhaka University, said, 'Turnover made a significant rise recently mainly due to over-enthusiasm of the investors about allowing investment of undisclosed money in stocks.'

'The BB's move on commercial banks pulled them out of the negative zone but it is difficult to say whether they will able to contribute to the capital market in the current fiscal,' he said.

'If the banks do not contribute as before, which they probably will not be able to do, according to the budgetary measures, the positive streak in the market will not sustain for long,' he argued.

Source : New Age

Sylhet Agri University students continue demo for flexible rules

Sylhet Agricultural University students on Sunday formed a human chain in the Sylhet city as a part of their continued movement, demanding more flexible rules to pass a semester.

Some 300 first and second semester students of the university, boycotting their classes and examinations, participated in the human chain held in front of the Central Shaheed Minar at about 3:00pm.

The speakers at the programme called on their vice-chancellor to take steps to meet their demands.

SAU student-affairs adviser Jamal Uddin Bhuiyan told New Age that a meeting was scheduled to be held between the authorities and the student representatives in the evening to discuss the situation.

The students said that the four-year Bachelor of Science (honours) programme of the university was divided into eight academic semesters and each semester had 16 credit-course on average assigned to it.

According to the credit-course system, which the university introduced from its 2009-10 session, one does not pass a semester if one fails in more than 20 per cent credit-course, a provision the agitating students called too rigorous for them.

They had demanded that the authorities double the limit, enabling the students to pass the semester even if they fail up to 40 per cent credit-course assigned to it.

The students launched the movement on June 22.

Source : New Age

Birth registration stressed for future planning

The local government, rural development and cooperatives minister Syed Ashraful Islam on Sunday emphasised birth registration for successful future planning of the country.

He was addressing a discussion marking 5th Birth Registration Day 2011 at the public library auditorium in Dhaka.

The minister said that at present about 95 per cent people of the country had received birth registrations as the government had started the birth and death registration projects since 2001 with the financial help of UNICEF.

Without adequate birth information of the citizens, a nation could not go further for future planning, like education and healthcare, he observed.

Syed Ashraful Islam told the discussion that the government would gradually digitalised every service sector of the country, including voting, with a view to making difficult tusks easy.

He illustrated the examples of the difficult tasks as property inheritance and prevention of child marriages.

'Now the government had started online birth registration and information on more than 1.8 crore people was saved in a database,' he said, adding that the online registration was going on in 29 districts and would be started at the rest of the districts soon.

He said the government also took initiatives for the expatriate Bangladeshis so that they could obtain birth registration.

He also said the Bio-metric registration would be started afterward.

Syed Mahbub Hasan, additional secretary of local government division, expressed his dissatisfaction over differences in certificate and real birth dates of most of the people.

UNICEF Bangladesh country director Carel de Rooy said marginal children were yet to get the birth certificates without any fee.

Source : New Age

Safia, Afia recover from mental illness

The mentally imbalanced young girls who, along with their father, were rescued from a Sylhet city residence on Saturday, were shifted to a cabin from the surgery ward at Sylhet Osmani Medical College Hospital on Sunday to ward off the flocking visitors.

The hospital sources said the two girls and their father were under the supervision of medicine specialist Ismail Patwari of the hospital.

Their condition — both physical and mental — has started to improve after they were admitted to the hospital on Saturday, the sources said.

The kotwali police rescued the two sister — Safia Begum, 33, and Afia Begum, 28, who were students of a local private college, and their father Abdul Noor, an United Kingdom expatiate, from their residence at Housing Estate in the city in a mentally imbalanced condition.

Relatives said Abdul Noor had been living along with his daughters in the residence, having no power and gas supply, for more than 18 months since the death of his wife Rokeya Begum.

The daughters were never allowed to go out and Abdul Noor himself hardly went out during the period, the sources said.

Masud Ahmad, an on-duty doctor at SOMCH, told New Age that positive changes were taking place in the behavior of two girls after they were admitted to the hospital.

He said their father also seemed to recover from the mental disorder gradually.

'They are schizophrenic genetically,' he added.

SOMCH assistant director Ehteshamul Haque Chowdhury told New Age that they hoped the girls would be able to come back to normal life within the next 15 days.

Source : New Age

Change in temperature unlikely

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

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

Day temperature may remain nearly unchanged over the country.

The sun sets in Dhaka today at 6:50pm and rises tomorrow at 5:16am.

The country's highest temperature, 31.0 degrees Celsius, was recorded on Sunday in Rajshahi and the lowest, 23.2 degrees Celsius, in Sandwip.

Source : New Age

Fake doctor held at Dhaka Medical College Hospital

The Shahbagh police in Dhaka on Sunday arrested a young man impersonating a doctor at Dhaka Medical College Hospital.

The police said Moshiur Rahman Samrat, 24, from Patuakhali was primarily caught by on duty Ansar members when he was trying to treat some patients at ward number 212 in the hospital.

Later, the Ansar handed him over to the police.

The witnesses said that on-duty intern Mamun challenged Moshiur's identity as a doctor.

Moshiur showed his apron, stethoscope and a students' identity card of K66 batch of the medical college, but claimed that he was a student of K61 batch.

As confusion mounted, Mamum, brought the incident to the authorities' notice and called Ansar members.

Later, the authorities identified Moshiur fake.

The police said Moshiur, who used to live in Mitford area in the capital, admitted that he had been doing such works for last four weeks and also collected fees from the patients.

Source : New Age

Accommodation crisis leads to subhuman life at Barisal jail

The Barisal Central Jail is crammed with prisoners more than double its capacity, pushing the inmates to lead a subhuman life.

Crises of solitary cells for the death row inmates, separate ward for children and juveniles and shortage of jail guards have become acute recently.

Colonial rulers set up the jail in 1829 on 21 acres of land in the district town and it was upgraded as central jail on July 1, 1997.

The jail is designed to accommodate 633 prisoners, while currently it houses 1,240, with the number most often reaching 1,600.

Of the current prisoners, 657 are convicted (Koyedi) and 583 under trial prisoners (Hajati).

Of them, 45 were death-sentenced prisoners, including a woman, 49 had been serving life term, 34 were female, 40 were children and juvenile, 8 were militant suspects.

At present, the jail has a one-storey, a three-storey, and 2 two-storey buildings, a tin-shed building and a 34-bed two-storey jail hospital building.

According to the normal procedure, death row inmates have to be confined in solitary cells for psychological and security causes. But 45 death-sentenced prisoners, including the female one, and 8 extremists and militants are detained in 12 condemned cells, ignoring safety and security standards of the prisons.

The children and juvenile prisoners are kept in a vulnerable situation with the convicted criminals in the jail.

The Barisal Central Jail has six-bed two prison cells at Barisal Sher-e-Bangla Medical College Hospital.

The contingent of about 200 jail guards, deployed for maintaining discipline and security in the prison, was not extended to cover the increased number of prisoners.

About fifteen per cent of them are engaged as domestic helps at different residential quarters of the jail officials, sources said.

Md Sagir Mia, senior jail superintendent in-charge of the Barisal Central Jail, said as per jail code at least 36 square feet space is required for each non-criminal prisoner, 24 square feet space for each convicted and under trial prisoner, 54 square feet separate condemned or solitary cell should be allotted for every death-sentenced prisoner.

Condition of the jail hospital is beggar description as over 80 prisoners stay here without any permanent doctor.

Well-off prisoners occupy the beds with the help of the corrupt jail officials, while the poor prisoners often lie on the floor to treat different types of skin, stomach and other infectious diseases.

Due to the space shortage, in one of the 2 two-storey buildings, 120 prisoners are kept in each floor with the capacity for detaining 40 prisoners per floor and 60 prisoners are detained per floor in another two-storey building with the capacity of keeping  only 30 prisoners.

A jail source, on condition of anonymity, said the number of the arrested is increasing every day but number of the released is fewer than the arrested.

On the other hand, prisoners who are convicted for over 14 years, militants and seriously sick prisoners have been sent to the central jail from other five district jails including Barguna, Bhola, Pirojpur, Patuakhali and Jhalakathi district of the division.

Beside the accommodation problem, the prisoners are beset with nutrition, health, sanitation, sports facility and amusement crises, and are facing corruption, inhuman behaviour and torture, absence of legal aid and other basic humanitarian problems and deficiencies.

About the security and space crisis, the jail officer said, the authorities have taken steps to increase the number of security guards and build more buildings.

However, the upgraded status of the central jail is not yet maintained with full facilities and appointment of higher officials like deputy inspector general of police (prison).

DIG prison of Khulna is in-charge of the Barisal Central Jail and it created complexity in maintaining administration in Barisal, he acknowledged.

'We heard that project for constructing two multi-storey buildings in Barisal Central Jail compound has been approved by the authorities concerned last month,' the jail superintendent said.

Source : New Age

Aspirant job seekers in Korea begins fast unto death in capital

Aspirant job seekers in Korea began their fast unto death binding white cloths around their heads in front of the National Press Club in the capital on Sunday demanding to be sent to Korea immediately.

Around 60 job seekers began the hunger strike on behalf of some 404 people who failed to go to Korea allegedly for negligence of Bangladesh Overseas Employment Services Limited.

The striking job seekers said they had passed the Korean language test in 2008 and 2009 as required under the Korean Employment Permit System and completed all necessary formalities including medical check up and submitted all the needed documents to the BOESL.

They alleged that as BOESL did not send their information to Korea correctly, the Korean authorities deleted their names from the list of the persons they wanted to take.

Talking to newsmen, one of the striking job seekers, Md Delwar Hossain, said earlier in June they had arranged a press conference at the National Press Club, sent letters to different ministries and departments and lastly observed hunger strike in front of BOESL to press home their demands.

'As all our earlier efforts went in vain, we began the fast unto death and would continue it until our demands are met,' he said.

Source : New Age