CPD RMG Study Stitching a better future for Bangladesh
Every day, CPD RMG Study team reveals what’s on our economic and apparel radar and curates a selection of the best reports, opinion, and analysis you may have missed.
Bangladesh signs $260m deal with ADB for infrastructural investments
Bangladesh will sign a US$260 million agreement with the Asian Development Bank (ADB) today for sustaining and increasing its infrastructural investments, especially for public-private partnership (PPP) projects as well as renewable energy interventions. The ADB fund will provide for long-term debt financing and catalysing private sector participation through the implementing agency Infrastructure Development Company Limited (IDCOL).
After successful implementation of earlier phases, the project will serve to catalyze commercial financing for PPP projects, thereby reducing the pressure of direct financing on the public budget.
Gas rationing will increase woes for industries
The government has started introducing gas rationing in the power and fertilizer sectors to make more gas available in Dhaka city. As the household gas demand is increasing ahead of winter, around 70MMCF (million cubic feet) of gas has already been diverted to household and industrial zones in Savar and Tongi to meet the demand.
The country is far behind the gas demand since 2012 and the winter demand adds a requirement of more than 300MMCF per day to meet household needs.
Global trade in goods may moderate in the fourth quarter
The World Trade Organisation (WTO) has unveiled the latest World Trade Outlook Indicator (WTOI), which shows that the global trade growth may moderate in Q4 of 2017. The reading stands at 102.2 signalling continued trade expansion in terms of volume, according to a press statement of the organisation. From the signal it can be assumed that the pace of growth should be slower than earlier in the year, when trade recorded strong increases.
In the third quarter, a comparable index of world merchandise trade volumes is in line with the indicator, signalling stable trade growth for the period.
