03 June, 2016

FRIDAY, JUNE 3, 2016 | Jyoishtha 20, 1423, Shaban 26, 1437 | Regd No DA 6238, Vol 4, No 41 | www.dhakatribune.com | 32 pages plus 24-page Weekend supplement | Price: Tk10

It talks the talk, but must walk the walk BUDGET FY2017 n Kayes Sohel Finance Minister AMA Muhith promised to transform the economy through inclusive growth and investment when he opened his black briefcase yesterday in parliament.

For the financial plan of 2016-17, the minister listed some pillars to help transform the country. These include tax reforms, ensuring fiscal discipline, infrastructure investment, promoting private investment, agriculture, social sector, education and job creation.

Yes, the programmes incorporated in the budget are pleasing to the ear, but few seem to be downto-earth practicable plans.

As has been the norm with Muhith, the proposed budget shows ambitious targets with respect to revenue collection and deficit financing.  PAGE 2 COLUMN 1

New VAT law from July 2017

n Tribune Desk

n Syed Samiul Basher Anik

The government aims to achieve a growth of over 7% in the 2016-17 fiscal year. Finance Minister AMA Muhith presented a Tk340, 605 crore budget in Parliament yesterday.

Justifying the target, he said he believed government efforts to develop infrastructure would help improve private sector investment.

He said both ADP size and implementation would be increased.

Public servants will get paid more, helping increase consumption.

He expected export to rise and hoped the stable political atmosphere at home would continue. A rise in foreign remittance inflows and gradual decline in inflation will boost personal consumption. l

For the time being, the new VAT law will not come into effect as there is not enough preparation to fully implement the change, the government has decided.

However, some changes will be brought to the existing laws to prepare taxpayers for the inevitable switch to the controversial Value Added Tax and Supplementary Duty Act 2012 on July 1, 2017.

The new law has drawn widespread criticism as it will impose a flat 15% VAT for all sectors and emphasise on proper account keeping of transactions at every stage of supply of goods and services by both manufacturers and service providers.

“Unfortunately, the necessary preparation for achieving the above objectives is far from satisfactory.

Under the above circumstances, the government has decided not to fully implement the new act from the next financial year. Rather, the government has decided to fully implement the new act from July 1, 2017,” Finance Minister AMA Muhith said while unveiling the proposed budget for fiscal year 2016-17 in parliament yesterday.

Clarifying his position, Muhith said the government’s objective to implement the new act has not changed, rather the government will only implement the new act after one year.

The minister said taxpayers would be able sit in their own offices

Transport gets top ADP slot

No bar to demolishing BGMEA building

INSIDE

Growth target 7.2%

Package VAT stays but rates double

The government has finally caved to the widespread protest from businesses as it has decided to continue with the package VAT system for the small traders in the next FY 2016-17.  PAGE 3

The transport and communication sector has received the biggest share of development allocation, around Tk30,088 crore, under the proposed FY2016-17 budget.  PAGE 4

There is no legal bar to demolish the 15-storey BGMEA building in Hatirjheel area of Dhaka, as the Supreme Court yesterday upheld a High Court ruling that asked for its demolition.  PAGE 7

and make registrations, file returns, pay taxes, and get refunds without needing to visit any VAT office.

He called upon the business community to improve their accounting practices to help taxpayers pay less amount of tax, even though revenue collection is expected to increase significantly when proper records of business transaction are kept.

“I urge the business community to come forward and maintain proper books of accounts at every stage of their transaction and use this additional one year time to get themselves acquainted with the new system,” Muhith said.

This would create a win-win situation for all, the octogenarian minister added.

Changes to existing VAT rules

As part of the transition to the new law, Muhith proposed changes to the existing Value Added Tax 1991 and Value Added Tax Rules 1991 to ease some procedural issues.

Muhith suggested abolition of the present value approval system by the VAT authority as “determination of price of any goods is absolutely a strategic business decision of the concerned manufacturer” under free economy.

If the new system is introduced, taxpayers would be at liberty to fix the price of goods and pay the tax accordingly, the minister said, adding that taxpayers would not require to visit VAT offices to obtain price approval which will play a  PAGE 2 COLUMN 1

Mobile phone use to get costlier for duty on services

Finance Minister AMA Muhith has proposed a 5% supplementary duty (SD) on services provided through mobile phones in the national budget for the 2016-17 fiscal year.  PAGE 32

DT

BUDGET FY2016-17

2

FRIDAY, JUNE 3, 2016

AIT removed from vehicles owned by govt, foreign missions n Tribune Desk

Thurday’s budget proposed the removal of advance income tax (AIT) on Motor vehicles owned by the government and local government on the renewal of fitness certificates and registration fees.

In addition, vehicles owned by projects, programme or activity under government and local government will enjoy the same benefits.

The government has also offered the benefits to UN, foreign missions and freedom fighters with the finance bill 2016.

Motor cars owned by foreign diplomats, a diplomatic mission, United Nations and its offices, de-

velopment partner of Bangladesh and its affiliated offices, educational institution under the Monthly Payment Order of the government, public universities, a gazetted war wounded freedom fighter and institutions that has obtained a certificate from the board will fall under the new proposal of exemptions from AIT. Currently, the rates of AIT on renewal of fitness certificates and registration of the motor vehicles are Tk1.25 lakh for sedans and SUVs above 3500cc (cylinder capacity).

The other rates are Tk1 lakh for sedans and SUVs with the engine capacity of 3000cc-3500cc and Tk75,000 for sedans and SUVs with

TOP TEN ALLOCATIONS IN FISCAL YEAR 2016-17 Tk84,133 Tk91,446

Finance Division

the engine capacity of 2500cc3000cc.

People having 2000cc-2500cc cars are paying Tk50,000 while it is Tk30,000 for car or jeep between 1500cc-2000cc and Tk15000 for car and jeep exceeding 1500cc. The AIT rate on microbus is Tk20,000.

Owners of sedans, SUVs or microbuses also needs to pay an extra 50% advance income tax (AIT) on renewal of fitness certificates and registration fees, along with regular tax payable, if they possess more than one vehicle.

On behalf of the revenue authority, the Bangladesh Road Transport Authority (BRTA) will collect the AIT for registration and renewal of fitness certificates. l

Tk26,855 Tk17,112

Ministry of Education Ministry of Primary and Mass Education

Tk22,160 Tk14,502

Ministry of Defense

Tk22,115 Tk18,377 Tk21,326

Local Government Division

Tk18,872 Tk19,282 Tk12,400

Ministry of Home Affairs

Tk17,516 Tk12,725

Ministry of Health and Family Welfare

Tk13,678 Tk12,703

Ministry of Agriculture

Tk13,063 Tk16,504

Power Division

Tk11,975 Tk7,751

Ministry of Railway (Taka in Crores)

FY2016-17 FY2015-16

0

20,000

40,000

60,000

80,000

100,000

CONTINUED FROM PAGE 1

It talks the talk, but must walk the walk For the new fiscal year, the 83year old minister has proposed a Tk340,605 crore budget, which is 15% higher than the outgoing budget and 29% higher than the revised version.

As we all know, fiscal targets were set, then revised and finally failed to actualise, as financing and expenditure were always a mess.

Analysts say the proposed fiscal charter is unnecessarily ambitious, as it sounds more like a bundle of desires and wants, rather than an implementable plan of action.

For FY17, Finance Minister AMA Muhith has proposed a budget titled “Marching towards Growth, Development, and Equitable Society”, setting a growth target of 7.2%.

Spelling out the government’s revenue plans, the minister said,”I firmly believe our revenue collection target is attainable.”

His boldness is laudable but it is hard to believe him when one looks at the dismal revenue collection picture over the last four years.

Muhith proposed to set the revenue income for the next fiscal

year at Tk242,752 crore, which is more than 35% higher than the previous year’s. He himself is in doubt of achieving this target. ”This is really a highly ambitious target,” was his remark during the speech.

Putting VAT law on hold for another year could also be a stumbling block to boost revenue income.

He said the budget deficit will be Tk97,853 crore, of which, Tk36,305 crore will be financed from external sources and Tk61,548 crore from domestic sources.

Of domestic financing, Tk38,938 crore will come from the banking system and Tk22,610 crore from savings certificates and other non-banking sources.

Presently, in the case of financing, the government has become relatively more dependent on domestic borrowing, particularly on receipts from national savings certificates.

“If this trend continues, ballooning interest payment may hamper project financing in future,” said Muhith.

These pessimistic words from the minister also cast a doubt on the implementation of big infrastructure projects which are deemed the key for attracting private investment.

For a nation to progress, the government should invest in productive assets (capital expenditure).

Education and health are the two major areas where the government has tried to give attention this time round. Allocations have gone up by 57% and 37% respectively.

Enhancement of public investment alone cannot guarantee capital accumulation. Ensuring the quality of spending is equally important, as annual development spending for the welfare of citizens is very poor.

In this context, the minister said:“We are trying to raise public investment each year, but execution of annual development programme falls short of expectation due to lack of implementation capacity. Particularly, foreign aid utilisation rate is fairly low.”

But at the heart of the budget is a gamble — a relaxation of the fis-

cal deficit to create space for more public investment and boost private investment.

The minister frankly admitted the fact that private investment had remained a bit stagnant. However, he said: “Investment has gathered momentum, though not at the expected rate.”

The main challenge is to generate adequate employment. Answer to this problem is ensuring higher growth and in tandem, ascertaining fair distribution of income growth to establish an equitable society, he said.

“This is by no means an easy task,” said the minister.

Initiatives taken for the development of physical infrastructure sector including the power, energy and transport sectors, may give a slight fillip to entrepreneurs.

But the budget has not given any indication of reducing corporate tax rates, which was a long-cherished demand of entrepreneurs.

The framework of the budget is built around a massive cut of subsidies, mostly in energy. Falling oil

prices positively impact fuel-importing countries like Bangladesh, in terms of lowering the subsidy burden and improving the available fiscal space for public investments or enhanced social spending.

Despite the fact that the macro environment is very positive at the moment and there are no fires to be put out, good governance prospect still remains bleak. However, Muhith promises to undertake initiatives this year to strengthen good governance.

In countries under economic transition like Bangladesh, growth is accompanied by a marked increase in income inequality.

In this respect, the minister said, “In addition to pursuing an increasingly progressive tax policy, we are implementing various transfer programmes for the backward and disadvantaged sections of the society.”

However, the budget is clearly a well intentioned plan. Whether it can be implemented properly remains the question. l

pivotal role in reducing harassment from tax officials.

Muhith also proposed incorporating provisions into the existing act to reduce the discretionary power of the VAT authority and ensure taxpayers’ opportunity of being heard before cancellation or adjustment of the input tax credit taken by them.

The minister also recommended having a single registration for different business units situated on adjoining plots under a single ownership, in a bid to reduce the unnecessary sufferings of taxpayers and to simplify the procedure.

Although the law will come under full implementation from next year, the minister in the meantime has in-

creased VAT on some products.

Talking about the new VAT law, Muhith said the new act stands for imposition of VAT and taking of input tax credit at every stage of the transaction.

This mechanism uniformly spreads the tax burden on every single transaction and does not create unnecessary tax burden on any particular transaction. It allows the taxpayers to pay the VAT only on the value addition they make at their end, he said.

to withdraw VAT exemption from different items including travel agents and meditation service; fabrics woven by power loom; and classified advertisement except condolence messages.

In the upcoming fiscal year, package VAT rate will be doubled.

However, for traders willing to pay VAT on actual value addition, a standard VAT at the rate of 15% would be applicable.

“For them, input tax credit and adjustment facility on easy terms would be available,” said Muhith.

ue-based VAT rate, which is in place for 22 services, Muhith said net VAT on services obtained from motorcar garage and workshops, and dockyard services would be raised to 10% from the existing 7.5%, while VAT on services from construction firms would be raised to 6% from the existing 5.5%.

He also recommended to hike the net VAT rates on immigration advisory services from 7.5% to 15%, office space and installations services from 9% to 15%, and sponsorship services from 7.5% to 15%.

Muhith also recommended to bring all manufacturing units within the territorial jurisdiction of Dhaka South, Dhaka North and Chittagong

city corporations under the VAT regime irrespective of their turnover.

New VAT law from July 2017

VAT net widened as exemption withdrawn on some products

To come out from the existing exemption culture, Muhith proposed

Truncated value-based VAT rate hiked Regarding

the

truncated

val-

ECR use mandatory in district towns

In order to make sure that VAT paid by consumers is being deposited to government exchequer, Muhith recommended compulsory use of Electronic Cash Registrar (ECR) and Point of Sales (POS) machines for shops, hotels, resorts and other trading units in district towns.

Meanwhile, for effective enactment of new VAT law, and to establish a standard VAT system, the minister emphasised on gradually moving away from the existing tariff value-based taxation system for some products. l

FRIDAY, JUNE 3, 2016

Climate fund gets Tk100cr

The Money Flow Where is the money coming from and where is it going?

If Tk3.4 trillion was equivalent to Tk100, this is what the money flow would look like Non-tax

VAT

Income & Profit

rom

Import Duty

Rapid Review by IID www.iidbd.org

o

f ing

Other NBR Tax

2 11

Mon ey c

m

Non-NBR Tax

9

7 21

21

Budget 2016-17 Tk

2

Foreign grant

9

Foreign borrowing

7

non-Bank borrowing

11

Bank borrowing

3.4 Trillion = Tk 100 33

12 Interest payments

15

Subsidies & Current transfers

22

Non-dev capital

8

Other non-dev

9

2

Package VAT stays but rates double n Syed Samiul Basher Anik The government has finally caved to the widespread protest from businesses as it has decided to continue with the package VAT (Value Added Tax) system for the small traders in the next fiscal year 2016-17.

However, the existing rates were proposed to be doubled, according to the budget speech by Finance Minister AMA Muhith, that he placed in the parliament on Thursday.

Package VAT is a square footbased rate which the small stores enjoy by paying VAT annually

9 6 5 4 8

Transport and Comm.

LGRD Education Fuel and Energy Others

M

on

ey

go

in g

to

Pay & allowance

DT

3

BUDGET FY2016-17

based on their shops’ locations and sizes, fixed by the National Board of Revenue.

During his budget speech, the finance minister proposed to hike the package VAT rate for Dhaka and Chittagong city corporations to Tk28,000 from existing Tk14,000, while the rate would be Tk20,000 from existing Tk12,000 for those in other city corporations.

He also proposed to set the package VAT at Tk14,000 from existing Tk7,200 for municipalities, and Tk7,000 from existing Tk3,600 for other areas of the country.

Earlier, the government planned to impose 15% uniform VAT rate for all traders, with implementation of new Value Added Tax and Supplementary Duty Act. However, they had to backtrack from implementation of the new law due to widespread criticism from different quarters and from the business community.

The minister however said that those traders, who will be interested to pay their VAT based on actual value addition, can pay 15% VAT on standard rate and can enjoy rebate facilities. l

n Abu Bakar Siddique The government has proposed earmarking Tk100 core for the Bangladesh Climate Change Trust Fund (BCCTF) to reduce the negative impacts of global warming in the new budget.

Finance Minister AMA Muhith yesterday proposed the allocation for the climate fund formed with own resources in 2009.

“We have allocated Tk3,000 crore to the Climate Change Trust Fund during the last seven years.

Another Tk100 crore has been allocated to this fund for the next fiscal year,” he said in his budget speech.

In 2009, the government undertook a policy – Bangladesh Climate Change Strategy and Action Plan (BCCSAP) – to combat negative impacts of climate change. Several projects have been taken under it.

Apart from BCCTF, Bangladesh Climate Change Resilience Fund (BCCRF) was set up in 2010 with assistance from development partners to address climate change impacts.

The coordinated financing mechanism enables Bangladesh to channel in over $188 million grant funds.

The government has adopted a road map for National Adaptation Plan (NAP) to mitigate climate change risks. Separate road maps are being formulated for Nationally Appropriate Mitigation Actions (NAMA) and Third National Communication (TNC).

Minister Muhith said the government would undertake and implement adaptation and mitigation activities in a concerted manner for addressing climate change risks under these work plans.

Along with national level efforts, to mitigate climate change risks, Bangladesh will continue to play a strong role at the international stage, he added. l

Agro gets even less n Abu Bakar Siddique

Allocation for the agriculture sector has seen steady decline in recent years and the latest proposed budget is no exception.

Finance Minister AMA Muhith proposed allocating Tk13,675 crore or 4.01% of the total budget, for the sector. In the current revised budget, the allocation is Tk11,139 crore or 4.21% of the budget.

Muhith expressed confidence in the sector’s progress. He said Bangladesh had achieved food autarky thanks to the incumbent government’s agriculture-friendly policies.

He proposed allocating Tk9,000 crore as subsidy to facilitate fertiliser and irrigation in FY17, same as the current fiscal.

The minister highlighted government initiatives taken for the sector’s development. These include strengthening agriculture subsidy, providing low-cost credit and high quality seeds, ensuring fertiliser availability, distributing agricultural input assistance cards, establishing agricultural processing, marketing centres and diversifying crops.

As a result, agricultural production has increased in real term by 2.6% compared to last fiscal, he claimed.

At the beginning of 2016, storage capacity of food grains at government level has been increased to 20.4 lakh tonnes. Several development projects to turn the food deficit regions into surplus ones are being implemented. l

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4

BUDGET FY2016-17

FRIDAY, JUNE 3, 2016

Transport gets top ADP slot n Shohel Mamun

The transport and communication sector has received the biggest share of development allocation, around Tk30,088 crore, under the proposed FY2016-17 budget.

The amount is around 26.7% of the Tk112,526 crore annual development plan (ADP) for the upcoming fiscal year. The amount has increased 3% from the current fiscal year’s allocation.

The Padma Bridge project, a high-priority fast-track project of the government, would alone get around Tk6,026 crore – the highest allocation for a single project for FY2016-17. The Padma Bridge rail link project will get Tk4,102 crore the second highest.

The government plans to build Padma Bridge by December 2018 and start the rail by 2022.

The allocation for the metro rail for Dhaka is proposed at Tk2,227crore for the 2016-17 Fiscal year.

Finance Minister AMA Muhith said in his budget speech yesterday that the government was woring to strengthen the highway network.

“We are working towards easing traffic congestion in different important cities including Dhaka city.”

He told the Parliament the work for construction of Bus Rapid Transit (BRT) Depot had begun and con-

Transport, Communication Infrastructure Ü Completion of feasibility study and formulation of design for Dhaka- Chittagong expressway Ü Construction/reconstruction of 118 bridges in the eastern region Ü Construction of three major bridges in the southern region and completion of the feasibility study Ü Designing of proposed four-lane highway from Dhaka to Sylhet Ü Construction of 2nd Kanchpur, 2nd Meghna, 2nd Gumti bridges Ü Construction of roads connecting the borders of Bangladesh and Myanmar struction of dedicated lanes would soon follow.

“We have plans to construct 3-layer circular routes, five MRT lines and two BRT lines by updating the Strategic Transport Plan.

Transport, Communication Infrastructure 4% 3.5% 3%

1.5%

The government aims to keep the country's economic growth “green” - in other words, environment-friendly, while also seeking exemption of tax on coal import in the newly proposed FY2016-17 national budget.

Finance Minister AMA Muhith placed the budget for the new fiscal year in parliament yesterday, where he proposed to withdraw the existing 5% import tax on coal.

He stressed the importance of coal-based power plants such as Rampal and Matarbari projects be-

cause “these plants are essential for the country's economic development.”

“We are laying emphasis on coal, furnace oil, nuclear energy and renewable energy-based power generation. We have already finalised a plan to install a power plant with coal as the main fuel,” he said.

At the same time, he emphasised the importance of climate risk reduction and said the government plans to launch several initiatives to combat climate change, including afforestation.

“We are actively pursuing issues like environmental pollution, af-

0.5%

3.4

40%

of total deficit to come from bank borrowing

In Chittagong city, construction of outer ring road, U-loop and flyover is in progress to ease traffic congestion,” he added.

“We will continue our efforts to transform the Bangladesh Railway

forestation and biodiversity preservation. We have finalised the draft of National Environmental Policy 2016.”

Muhith expressed the government's eagerness on keeping the environment clean. “We have introduced modern technology in 4,000 brick fields to reduce air pollution. Effluent treatment plants (ETP) have been installed in more than 1,000 industries and are being set up in 500 more.”

He also mentioned the government's plan for generating 3,100MW of electricity from renewable energy sources within 2021. l

14.4% to education

goes

(2.49%) Tk5550cr

(2.54%) Tk6359cr

Tk7911cr (2.68%) (2.62%) Tk7717cr

(3.2%) Tk10910cr (2.73%) Tk9289cr

(1.5%) Tk3020cr

Tk1121cr (0.5%)

Tk1182cr (0.47%)

Tk2316cr (0.59%)

Tk2603cr (0.76%)

(0.61%) Tk1161cr

0%

5 numbers to remember Tk tn proposed for Budget FY2016-17

(2.21%) Tk4244cr

Tk8953cr (3.03%)

(2.74%) Tk5589cr Tk6858cr (2.51%)

Tk4900cr (2.56%)

1%

Govt for 'green' growth, lifts coal import tax n Abu Bakar Siddique

Tk7000cr (3.15%)

2.5% 2%

Tk11950cr (3.51%)

Tk8737cr (3.49%)

BIGSTOCK

Mohammad Razon / Dhaka Tribune into a reliable, cost-effective and environment-friendly public transport system,” the finance minister said.

Transport expert Prof Mehedi Ahmed Ansary told the Dhaka Trib-

une that it was reasonable for the government to invest on transport and communication infrastructure.

“Without a smooth network no work can be done properly,” he said. l

DEVELOPMENT EXPENDITURE GETS 34.4% OF FY17 BUDGET

35%

140,000 120,000

34%

100,000 80,000

33%

60,000 40,000

FY14

FY15

FY16

FY17

32%

20,000 31%

-

Total development expenditure in Cr Tk (Le -side axis) As % of total budget expenditure (Right-side axis)

Total development expenditure is set at Tk1.2tn in the proposed budget

1.1

Tk tn earmarked for development

7.2%

is the GDP growth target

DT

5

BUDGET FY2016-17

FRIDAY, JUNE 3, 2016

Govt sets sub6% inflation target n Tribune Desk

The government aims to keep inflation below 6% in the new fiscal year.

Finance Minister AMA Muhith presented a Tk340,605 crore budget in Parliament on Thursday.

He reasoned that there were possibilities of a decline in prices of commodities, including oil, in the international market next year.

The government has already cut oil prices at home, that will help reduce non-food inflation, he said.

On the other hand, prospects of persistent agricultural growth and improvement in domestic distribution system will help keep food inflation within tolerable limit.

Apart from these, for macroeconomic management, Muhith said the government would ensure continued harmonisation of fiscal and monetary policies.

Based on these expectations, the government has fixed a target to contain inflation at 5.8%, he said. l

Finance Minister AMA Muhith delivers his budget speech at parliament yesterday

FOCUS BANGLA

Revised revenue target cut by 8% fearing shortfall n Tribune Report The revenue target for the National Board of Revenue was cut down by 8% for the 2015-16 fiscal year as the government feared a shortfall in revenue collection, Finance Minister AMA Muhith has said. “You are aware that we set

Bangladesh stares at huge budget deficit n Tribune Desk Deficit in the new budget stands at Tk97,853 crore, higher than the last fiscal, will certainly create some concerns.

The amount is 5% of the GDP. Finance Minister AMA Muhith presented a Tk340,605 crore budget in Parliament on Thursday.

He said the government plans to meet the deficit by borrowing Tk61,548 crore from domestic sources, which is 3.1% of the GDP. Of the amount, Tk38,938 crore (2% of GDP) will come from the banking sector. Tk22,610 crore (1.1% of GDP) will be collected from government savings instruments and other non-banking sources.

The rest of the deficit – Tk36,305 crore or 1.9% of the GDP – will be financed from external sources. l

National Board of Revenue revenue collection target taking into account the ongoing reforms in tax policy and administration.

The target, I am afraid, will not be achieved this year due to lower than expected success in the implementation of reforms,� the minister said during his budget

speech yesterday.

Against this backdrop, the revenue target for the NBR has been revised with a reduction of around 8%, Muhith said.

The government earlier set the overall revenue target at Tk208,443 crore for fiscal year 2015-16. Among the amount, NBR tax was set at

Tk176,370 crore, non-NBR tax at Tk5,874 and non-tax receipt was set at Tk26,199 crore.

However, the government later downsized the revenue target to Tk177,400 crore where NBR tax was set at Tk150,000 crore, nonNBR tax at Tk5,400 crore and nontax receipt at Tk22,000 crore.

Import duty on wireless tech reduced

DEFICIT AS % OF TOTAL BUDGET DECLINES MARGINALLY TO 28.7% IN FY17 BUDGET 120,000

30% 29%

100,000

28%

80,000

27%

60,000

26% 25%

40,000

24%

20,000 -

23% FY14

FY15

FY16

“In terms of NBR revenue, actual collection from income and profit taxes and local level ValueAdded Tax has been less than satisfactory,� Muhith said.

According to official data as of March this year, the government has mobilised Tk119,324 as total revenue including Tk101,211cr by the NBR. l

FY17

Total deficit in Cr Tk (Le -side axis) As % of total budget expenditure (Right-side axis)

Total deficit is set at Tk0.97tn in the proposed budget

22%

n Ishtiaq Husain

Finance Minister AMA Muhith proposed to reduce import duty on WiFi and Wimax LAN card and access point related products to 15% from 25%. “We have been providing duty tax exemptions and concessions to most items in the information technology sector in order to establish a digital Bangladesh� said Muhith during his budget speech yesterday.

Duty reduction on some of the components used to manufacture SIM cards, scratch cards, credit cards and other smart cards was also proposed in order to support the sector.

The finance minister also proposed an increase of import duty on biometric finger print scanner to 5% from the existing 2%.

Optical fibre cables import duty was proposed to be increased to 15% from existing 10%. l

DT

6

BUDGET FY2016-17

FRIDAY, JUNE 3, 2016

Fast-track projects get Tk18,727.36cr n Shohel Mamun The government has proposed Tk18,727.36cr for fast track projects in Fiscal Year (FY) 2016-17.

The 10 top priority projects are listed under the Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina.

The projects – Padma Bridge, Padma rail link, metro rail, Payra seaport, Dohagary-Ramu-Cox’s Bazar-Ramu-Gundum rail link,

Rooppur nuclear power plant, Moitree super thermal power plant and Matarbari ultra super coal-fired power plant received allocations in the proposed budget.

Two other listed fast track projects – LNG terminal in Maheshkhali and deep-sea port in Sonadia – are at the primary stage.

The government has proposed to allocate Tk6,026cr for the next fiscal year to build Padma Bridge.

The Padma Bridge is expected to

be completed by December 2018 at a total cost of Tk28,793cr.

The allocation for 2016-17 fiscal year is Tk4,102 crore for the Padma Bridge rail link project. This project will be implemented at a cost of Tk34,988.86cr in aims to connect the southern parts of the country with Dhaka by 2022.

The Mass Rapid Transit (MRT) project, known as the metro rail, is another big one set to be completed by December 2019 at a cost of

Power gets massive cuts Ü Gas, power prices likely to soar to minimise subsidies Ü Special allocation for proposed gas pipeline in Bhola Ü Special allocation for proposed petrochemicals factory in the coastal region Ü Installation of 29 power plants with a capacity of 7,296MW capacity Ü Construction of 8 power plants with a capacity of 4,435MW. Ü There is a plan for generating 3,100 MW electricity from renewable energy Ü Implementing the plan for importing 6,500MW electricity by 2030 from neighbouring countries under sub-regional cooperation framework and initiative to import from India additional 500MW. Ü BAPEX plans to dig 53 exploration wells, 35 development wells and 20 workover wells by 2021. It is expected that 943 to 1,105 million cubic feet gas per day can be produced from these wells Ü Initiatives have been taken to construct a Floating Storage

Power and energy sector

for Bangladesh Power Development Board (PDB) was proposed at Tk6,000 crore. In FY16 the subsidy was Tk8,000 crore. But because of fall in fuel prices the allocation will come down to Tk6,000 crore in the upcoming fiscal year.

In total, the government has allocated Tk15,036 crore, which is 4.41% of its total expenditure, to the power and energy sector for FY17, significantly smaller than outgoing fiscal year's Tk18,541 crore.

Power generation capacity has increased to 14,539MW, Muhith said. At present, 76% of the population enjoy electricity facilities. l

investors by 2016. Steps have been taken to build a Tier-4 data centre at Kaliakoir in Gazipur with a view to making the national database ICT-based,” said Muhith.

The finance minister said the government is working towards the development of National Enterprise Architecture (NEA) to solve the problem of interoperability and simplify the process for the smooth operation of e-governance activities. The setting up of a cable landing station at Kuakata in Patu-

akhali district for the second submarine cable named SEA-ME-WE-5 is underway.

The finance minister said the government plans to set up a monitoring and regulatory framework, the “Internet Safety Solution,” to ensure the security of all information, including monitoring and prevention of internet-based cyber crimes.

He said: “After becoming the victim of repeated cyber crime attacks, we have no other alternative

to strengthening the ICT system.”

In addition, with a view to upgrading customer services and protecting customers’ mobile numbers, the government plans to issue Mobile Number Portability (MNP) licenses. In this context, a guideline has recently been approved.”

“Till now, we have made significant progress in developing and expanding information-technology infrastructure and improving the quality of internet services.

The number of mobile and internet

% of total budget expenditure

duced in the FY16 revised budget to Tk1,120 crore from Tk2,037 crore.

In the next fiscal year the government has allocated Tk1,973 crore for the division, which is Tk853 crore higher than the revised allocation.

For the first time in 12 years, state owned Bangladesh Petroleum Corporation (BPC) has received no subsidy, mainly because of globally falling prices of fuel oil.

In the FY16 budget, about Tk800 crore was allocated as subsidy for BPC but the corporation did not have to spend the entire amount because of reduced prices and it also returned a profit.

For FY17, the subsidy allocation

Giving more priority to law enforcement activities, Finance Minister AMA Muhith has proposed that Home Ministry’s allocation be increased to 55.5% more than the previous fiscal year.

Under the proposed annual budget for the 2016-17 fiscal year, the Home Ministry would get Tk19,282 crore – which is Tk6,882 crore more than the outgoing fiscal year’s Tk12,400 crore allocation.

The budget proposal comes just a day after the government decided to split the Ministry of Home Affairs into two divisions – the Public Security Division and the Security Services Division, a move that is awaiting approval from high ups.

Of the proposed total allocation for FY2016-17, Tk4,357 crore would go to district police force, Tk3,658 crore to Bangladesh Police Directorate, Tk2,569 crore to Border Guard Bangladesh, Tk1,952 crore to metropolitan police, Tk1,763 crore to Home Ministry Secretariat, Tk1,223 crore to Ansar, and Tk1,109 crore to Coast Guard.

From the rest of the amount, Tk865 crore will go to the jail authority, Tk686 crore to Fire Service and Civil Department, Tk315 crore to Department of Passport and Immigration, Tk165 crore to Criminal Investigation Department, Tk97

Tk7969cr (5.23%)

a capacity o 1.38lakh cubic meter at Moheshkhali in Cox’s Bazar to store the imported LNG.

Tk10504cr (5.58%) Tk11540cr (4.61%)

Tk15036cr (4.41%)

BIGSTOCK

Mohammad Razon / Dhaka Tribune

n Aminur Rahman Rasel The government has proposed to bring down the allocation for Power Division for next fiscal year by around Tk3,500 crore, a 20% cut, mainly due to zero development in 25 of its 74 projects.

The government had allocated Tk16,503 crore for Power Division in the outgoing fiscal year, but the budget has gone down to Tk13,062 crore in FY17.

The revised budget for Power Division in the outgoing fiscal year is Tk15,494crore.

The allocation for Energy and Mineral Resources Division was re-

Budget backs Digital Bangladesh n Ishtiaq Husain

To build “Digital Bangladesh” under “Vision 2021,” the government has underlined support for ICT infrastructure development.

In his budget speech, Finance Minister AMA Muhith said a wide range of programmes to establish high-tech parks, a software technology park and an IT village have been undertaken.

“We expect to open up the Jessore Software Technology Park to

The government will complete Rooppur nuclear power plant by 2017. It’s allocation is set at Tk618cr for FY2016-17. The Matarbari ultra super coal-fired power plant is the largest government project, for which Tk2,400cr has been proposed in the upcoming budget.

The Moitree super thermal power plant is another much-talked about project to be implemented by 2023. The government has proposed Tk2,540cr for it in FY17. l

Home Ministry to get 55.5% more n Mohammad Jamil Khan

Tk18540cr (6.28%)

Tk10820cr (5.85%)

Tk7233cr (5.64%)

Tk21,985cr. The allocation for the metro rail is proposed at Tk2,227cr for the 2016-17 fiscal year.

The government has begun constructing the Payra seaport in aims of running its activities on a limited scale at an estimated cost of Tk1,128cr. The proposed allocation for the seaport is fixed at Tk200cr.

The proposed allocation for the Dohagary-Ramu-Cox’s Bazar-Ramu-Gundum rail link is fixed at Tk613.75cr.

crore to Department of Narcotic Control, Tk80 crore to Upazila and Railway police, Tk70 crore to international organisations and Tk63 crore to the Passport and Visa Wing.

Some of the major projects planned for the upcoming fiscal year include a burn unit hospital for the Fire Service, establishment of five RAB complexes and training schools, DNC complex in divisional cities, improvement of over-crowded prisons, procurement of sea boats for the Coast Guard, development of anti-trafficking mechanism, and modernisation of fire service.

However, the proposed budget did not mention any special project or budget allocation for combating terrorism.

Finance Minister Muhith, however, told parliament that Bangladesh has been playing, as always, a leading role in framing regional strategies and action plans to combat terrorism and terror financing.

Muhith also said the government has started the process of creating 50,000 new posts in the police force, adding that the recruitment process was in progress.

Mentioning that 100 female members were for the first time recruited to BGB this year, the minister said more female BGB members will be added gradually. l

subscribers has increased respectively to approximately 13.2 crores and 6.2 crores respectively by the end of April 2016,” he also said.

International internet bandwidth has also been raised to 180GB. On the other hand, till now 5,275 digital centres have been established across the country. More than 25,000 websites, including those of upazilas, districts, divisions, departments and directorates, have been added to the national web portal. l

7

FRIDAY, JUNE 3, 2016

No bar to demolishing BGMEA building n Ashif Islam Shaon There is no legal bar to demolish the 15-storey BGMEA building in Hatirjheel area of Dhaka, as the Supreme Court yesterday upheld a High Court ruling that asked for its demolition.

A four-member bench of the Appellate Division headed by Chief Justice Surendra Kumar Sinha passed the order dismissing a petition filed by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The building has to be demolished following the order of the court, Manzill Murshid, an amicus curie (friend of court), and Barrister Rafique-Ul Huq, counsel of BGMEA, a trade organisation for export-oriented apparel and fashion manufacturers in Bangladesh, he said.

He also apprehended that the demolition of the building might place adverse impact on the country’s economy, as the garment sector was the main source of earning foreign currencies.

BGMEA will take a decision over filing a review petition at its board meeting against the Supreme Court verdict.

A newspaper report published on October 2, 2010 said the building was constructed without the approval of the plan of construction from Rajdhani Unnayan Kartripakkha (Rajuk), on land acquired through forgery and earth-filled illegally.

After the article was brought to notice, the High Court had issued a suo-moto rule the next day asking why the building would not be demolished.

The court also had appointed several amicus curies who opined that the building should be demolished. It heard opinions from amici curiae Fida M Kamal, Anisul Huq,

A view of Bangladesh Garment Manufacturers and Exporters Association building FILE PHOTO

hindering the water flow of Begunbari canal and hampering the Hatirjheel project.

The High Court also asked the tenants to vacate the building and move their belongings within 90 days from the date of receiving the copy of the verdict.

Syeda Rizwana Hasan, Manzill Murshid and Iqbal Kabir.

On April 3, 2011, the High Court in its final verdict had asked to demolish it on finding that the building was constructed violating laws meant to protect wetlands.

The court said the building was

DT

News The full verdict was available two years later, when the BGMEA filed a leave-to-appeal petition against the ruling. The plea was heard and scrapped yesterday by the Appellate Division.

The HC in its judgment had said the BGMEA authorities have to demolish the building at their own cost.

The land was acquired for the East Bengal Railway in 1910, and it was in the possession of Bangladesh Railway till 2006. The railway authorities handed over the land to Export Promotion Bureau (EPB) in 2006.

But BGMEA in its sale deed showed it had purchased the land from the EPB in 2001.

The High Court observed that the forgery in handing over the land to the BGMEA is tantamount to land grabbing with a gang of frauds involved in the process.

Investors in the building did so knowing fully it was constructed illegally, and they have only to blame themselves.

It said the acquired land must be used for public welfare, and it cannot be handed over to any private organisation like the BGMEA. Even Rajuk cannot approve the construction of any structure by the BGMEA on the land which is not owned by it (BGMEA).

The HC said people who have invested money to purchase flats and some parts of this building can take legal steps against the BGMEA as per the Contract Act and Tort Act for remedy in this regard.

The court directed the authorities to restore the water bodies in Begunbari-Hatirjheel area after demolishing the building.

The foundation of the building was laid by the then prime minister Sheikh Hasina in 1998, and it was opened by the then premier Khaleda Zia in 2006. l

1,400 nurses sued over clash with police n Arifur Rahman Rabbi

At least 1,400 unidentified nurses were sued yesterday for allegedly attacking law enforcers and preventing them to do their duties.

Sources said the case was filed with Dhanmondi police station in the morning.

Dhanmondi police station Officer-in-Charge Nure Azam confirmed the case.

He told the Dhaka Tribune that two people were arrested for attacking police. They had been sent to jail.

Meanwhile, unemployed nurses besieged in-front of the Dhaka Nursing College.

They urged all the nurses not to sit for the BPSC exam on Friday, said Faruq Hossain, secretary general of Bangladesh Diploma Unemployed Nurses Association.

The protesting unemployed nurses said the unemployed nursing graduates have been demonstrating since March 30 after a circular issued by the Public Service Commission (PSC) sought to recruit 3,616 senior nurses through exams.

The nursing graduates were hoping to be recruited on the basis of year of graduation, merit and seniority.

The health minister assured he would discuss it with the Prime Minister, but he didn’t take any initiative until.

So we took position on Dhanmondi Road No 28 around 6pm on Wednesday as part of plan to besiege the house peacefully, they added.

But the police along with the leaders and activists of Bangladesh Chhatra League and Shechchhasebok League launched the attack on the nurses, they alleged. l

US President Obama writes to Xulhaz’s family n Mohammad Jamil Khan US President Barack Obama has written to the family members of slain LGBT magazine editor Xulhaz Mannan extending his condolences over the killing.

The letter was handed over to family members of Xulhaz on Thursday morning from the director of USAID mission in Bangladesh, Minhaz Mannan, the elder brother of Xulhaz, told the Dhaka

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and loved him, and in all who are inspired by the difference he made now and for generations to come.

“During this extraordinarily difficult time, please know I am holding you in my thoughts,” added President Obama in the letter.

Xulhaz Mannan, an employee of the US Agency for International Development (USAID), also a former official of US Embassy in Dhaka, was killed along with friend Mahbub Tonoy at his residence in Kola-

and I join in heartbreak and grief and we extend our deepest condolences.

The pain of a loss like this is indescribable. Guided by this commitment to shaping a more just and equal future across Bangladesh, Xulhaz devoted his life to service.

I hope it brings you some measures of solace to know that his courages, compassionate spirit will endure through all who knew

Tribune.

Minhaz said the letter was dated on May 5 but it took some time to reach our hand for some formal procedure and we were not in a position to receive the letter till date.

“However, we have received it now and are thankful for his feelings,” added Minahz.

In the letter, a copy of which the Dhaka Tribune has obtained, President Obama said Michelle

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YESTERDAY’S HIGH AND LOW

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bagan area of Dhaka on April 25.

Police so far arrested one for his involvement of providing gun and support in the killing missions.

However, none of the killers who directly took part in it still remain traceless.

Regarding the killing, AKM Shahidul Hoque, inspector general of police (IGP), said they had already identified the perpetrators of the killings and drive was underway to arrest them. l

Sylhet

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Fajr: 4:40am | Jumma: 1:15pm Asr: 5:15pm | Magrib: 6:50pm Esha: 8:45pm Source: Islamic Foundation

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DT

BUDGET FY2016-17

8

FRIDAY, JUNE 3, 2016

Budget 2016-17: The Context National and per capita income GDP

The Bangladeshi economy has been experiencing over 6 percent GDP growth for the last decade, indicating rapid economic growth.

7.05%

The FY2015-16 GDP growth rate stands at 7.05 percent

Agriculture Industry (other than manufacturing) Industry (Manufacturing) Services FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

Service sector has been the biggest contributor to GDP, with steady complementary contribution from industry sector Along with GDP, the national per capita income has increased from Tk 102236 in FY2015-16 to

114547

TK in FY2016-17

in other words, per capita income

$1466

in FY2016-17

per capita GNI FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

If you lined up all the people of the country from the poorest to richest, this is how their income distribution will look like2.00

0.78 Lowest 5%

4.10

3.22

7.32

6.01

5.00

9.06

Nevertheless, prevailing income inequalities remain a concern.

The graph shows that the poorest 10 percent of the population owns about 2 percent of earnings whereas the richest 10 percent own 35 percent.

15.94

35.85

24.61 Top 5%

11.50

Budget Priorities Currently there are three main priority areas for Bangladesh, namely, employment, education and the Padma bridge. First, government spending needs to be geared toward

creating employment opportunities, especially for the youth. CPD recently argued that rising youth unemployment indicates

underutilization of the youth labor force. This relates to the second priority area – improving the education system. It must be

acknowledged that the education sector also entails skill development and there is an urgent need for skill training besides improving the

literacy rate. The third priority is the Padma bridge financing.

Budget Deficit: The Balancing Game The Budget Critique Each year, budget is deemed too big for Bangladesh’s implementation capacity, and too small for the demands of the country’s economy.

1. Shortfall in Revenue Earnings Among all the sources, borrowing from local banks is the only source that the government has control over. Therefore, it uses borrowing from banks as a major source of deficit financing.

2. Low Foreign Resources 3. Results in High Bank Borrowing

The Double-Edged Sword The government must make a tradeoff between greater expenditure and greater deficit. If it wants to address the implementation failures then it must increase expenditure on different project, which means greater borrowing from domestic banks.

Despite these concerns, the government manages to balance the expenditures and revenues.

How does it do it?

The government manages the budget deficit in two ways –

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

How will it play out this year?

borrowing from banks & budget cuts • Budgeted allocation tends to have a certain amount of inflated expenditure, meaning that the full budgeted amount will not be implemented. Budget cuts also occur due to a lack of implementation capacity. So, the government can cut the budget during revision as a means of decreasing the fiscal deficit.

FY2017

Given the recent trend in deficit financing, the government is most likely to once again borrow funds from domestic banks to finance the majority of its fiscal deficit. It will further opt for budget cuts based on implementation constraints and foreseen inflated expenditure. Therefore, although the deficit is projected to increase by 12.9%, the government still has available measures to manage it.

Actual Budget Proposed Budget

4. Expenditure shortfall also helps budget balancing

DT

9

BUDGET FY2016-17

FRIDAY, JUNE 3, 2016

Promises kept in education 49010

Amount in Crore Taka Actual Budget

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

31605

29213

28001

25093

25088

21408

20747

19806

18736

17927

18383

14006

15550

11996

11869

Proposed Budget

2014-15

2015-16

2016-17

Proposed and actual expenditure in education sector

Education sector (the Ministry of Education and the Ministry of Primary and Mass Education) has received a total allocation of Tk. 49,010 crore which is 55% higher than last year’s budget. It represents 14.4% of the budget for FY2016-17 and 2.5% of the GDP. This is a drastic improvement from last year’s allocation which was only 1.8% of the GDP and 10.7% of the budget.

Share of ADP allocation in quality improvement related projects in FY2014

1% Promoting science education

Low allocation for education has received much criticism as the quality of education seems to be falling. Despite the education budget increasing in absolute terms, its percentage of the budget has been dwindling in recent years. Other South Asian countries allocate a much higher percentage of GDP. But this year’s allocation is a huge step towards attaining the target of an education allocation that is 6% of the GDP. Furthermore, the per capita expenditure on education (calculated for the age group 05-29 years old) has also increased to Tk. 7,619 from Tk. 4,907.

Nevertheless, increased allocation itself will not ensure that the development of the education sector, but rather the focus should be on two things – whether the right items are getting the allocation and if the budget can be implemented. However, for the Ministry of Education and Ministry of Primary and Mass Education has actually spent more than the budgeted amount in the last few years. This indicates that the education sector can indeed invest the amount that has been allocated. But the concern remains over the quality of implementation.

8%

Teaching methods/training

0%

Education research

91%

System upgradation

Share of ADP allocation in equity ensuring projects in FY2014

A large portion of the allocation for education is taken up by general expenditure such as salaries for the teachers. In a previous study IID found that the share of ADP allocation in quality improvement related projects is only 8% for investing in teaching methods or training for teachers. Furthermore, promotion of science education and education research is very negligible.

0%

Children with special need

4.4%

Similarly, ADP allocation in equity ensuring projects only allocated 4.4% towards gender equity. These are some of the problem areas that future development projects need to concentrate on.

Gender equity

The budget for FY2016-17 does address some of these focus areas. It looks to create a better primary education environment by providing training for teachers. It also promotes the usage and training of ICT for quality secondary education. There is also a strong focus on rebuilding school buildings and Tk. 200 crore of the education allocation has been dedicated to such renovation projects.

Indigenous population

In the end, it’s not the size of the budget, rather the implementation plan that is critical for development. So it’s how well the allocation is structured within the education sector that should get priority.

0%

95.6% Source: IID, 2013

General support

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10

World

FRIDAY, JUNE 3, 2016

SOUTH ASIA

17 members of Afghanistan’s Hazara community kidnapped Gunmen have kidnapped 17 members of Afghanistan’s Hazara community, officials said on Thursday, the latest incident involving members of the Shia Muslim minority highlighting the risk of sectarian violence. The men were abducted on Wednesday afternoon from a bus in the northern province of Sar-i-Pul, with officials blaming Taliban militants.

-REUTERS

INDIA

Traffickers in India force 300,000 children to beg in streets At least 300,000 children across India are drugged, beaten and forced to beg every day, in what has become a multi million rupee industry controlled by human trafficking cartels, police and trafficking experts said. According to the Indian National Human Rights Commission, up to 40,000 children are abducted in India every year.

-REUTERS

CHINA

China: US shouldn’t let allies set S China Sea policy The US should not decide its policy on the South China Sea based on what its allies think, and should stick to its promises not to take sides in the dispute, a senior Chinese diplomat said on Thursday ahead of Sino-US security talks. China has been angered by what it views as provocative US military patrols close to islands China controls in the South China Sea. -REUTERS

ASIA PACIFIC

US pushes UN to condemn North Korea missile launch The US on Wednesday pushed the UN to condemn North Korea’s latest attempted missile launch, and for world governments to ramp up efforts to slap sanctions on Pyongyang. A draft statement circulated by the US to the 14 other members of the Security Council strongly denounces a series of failed missile launches on Tuesday and on April 27 and 28.

-AFP

MIDDLE EAST

US-backed forces open major front in Syria war Thousands of US-backed fighters opened a major new front in Syria’s war, launching an offensive to drive Islamic State out of a swathe of northern Syria it uses as a logistics base and appearing to make swift initial battlefield advances.

The operation, which began on Tuesday after weeks of quiet preparations, aims to choke off the group’s access to Syrian land along the Turkish border.

-AP

24 convicted over 2002 Gujarat massacre n AFP, Ahmedabad An Indian court convicted two dozen on Thursday over a massacre during religious riots 14 years ago when incumbent Prime Minister Narendra Modi was chief minister of Gujarat state.

69 Muslims were hacked and burnt to death as they took shelter at a residential complex in Ahmedabad, in one of the single worst massacres of the weeklong violence.

The riots that left more than 1,000 people dead in total have long dogged Modi who was accused by human rights groups of turning a blind eye to the violence as head of Gujarat.

But the latest verdicts are unlikely to have an impact on the Hindu nationalist premier who was cleared in 2012 by a Supreme Court-ordered investigation of any wrongdoing.

Celebrations erupted in the courtroom in Ahmedabad amid tight security after the verdicts were read out, but some victims and their families were left disappointed.

Judge PB Desai found 11 of the Hindus guilty of murder and 13 of lesser charges, with all of them set to be sentenced on Monday.

Donald Trump stepped up his assault on the US media Tuesday, branding the political press “dishonest,” calling one journalist “a sleaze” and promising more such attacks if elected US president.

The former reality TV star, prolific on Twitter with two million more followers than Democratic frontrunner Hillary Clinton, has dominated coverage of the 2016 presidential cycle like no other by calling personally into television shows and frequently holding court at press conferences broadcast live nationwide.

The New York tycoon, who was dismissed as a joke when he launched his campaign, annihilated 16 rivals in the race to sew up the Republican nomination and is trailing Clinton by just a few percentage points in recent polls.

But on Tuesday, he laid into the press at Trump Tower in New

Clinton to attack Trump on foreign policy Hillary Clinton is set to unleash a major foreign policy attack on Donald Trump, using a speech in San Diego to cast the Republican as unqualified and dangerous. The former secretary of state, who has repeatedly called Trump a loose cannon, will seek Thursday to contrast her foreign policy experience with Trump’s.

-THE GUARDIAN

THE AMERICAS

Venezuela opposition warns unrest on horizon A relative of one of those convicted in connection with a riot in Gujarat in 2002, cries outside a court after the ruling in Ahmedabad REUTERS But Desai acquitted another 36 people for lack of evidence including a former local police inspector on negligence charges and a local organiser of ruling Bharatiya Janata Party.

The judge also stated the massacre was a spontaneous attack, not a pre-planned criminal conspiracy against the Muslim minority as victims have alleged.

More than 300 witnesses have been deposed during the yearslong trial that began in 2009 but was delayed by legal challenges and several of the original accused died.

Pleas for help

Among those killed was former opposition Congress party lawmaker Ehsan Jafri whose wife,

Zakia, claims that he repeatedly called police for help but none came.

Zakia is fighting a separate legal battle demanding that Modi and others be held responsible for failing to stop the riots.

The violence was triggered by the death of 59 Hindu pilgrims in a train fire in the state's Godhra on February 27, 2002, which was initially blamed on Muslims.

Hindus bent on revenge rampaged through Muslim neighbourhoods in some of India’s worst religious riots since independence from Britain and partition in 1947.

More than 100 people have already been convicted over the riots, including one of Modi’s former state ministers who was jailed for instigating some of the killings. l

Trump attacks US media, calls journalists dishonest, sleazy n AFP, New York

USA

York for questioning his claim to have raised $6m for veteran charities on one night in Iowa last January after skipping a Fox News Republican debate.

The presumptive Republican nominee announced that he had given $5.6m, reading out the names of more than 40 charities who received funds, including $1 million he donated personally to the Marine Corps - Law Enforcement Foundation.

Trump attacked the media for appearing intent on finding fault rather than gushing over his apparent generosity, and said he expected additional donations to tip the figure over $6m.

“The press should be ashamed,” he hectored. “I have never received such bad publicity for doing such a good job.”

He addressed a male CNN political journalist as a “real beauty” and pointed to Tom Llamas, who covers the Republican race for ABC News, saying: “You’re a sleaze because you know the facts and you know the facts well.”

“Should be an interesting week,” Llamas tweeted in response.

The presumptive Republican nominee also called Bill Kristol, editor of neoconservative magazine “The Weekly Standard” and fierce critic “a loser.”

A problem in November?

When asked if this is what it would be like covering a Trump White House, the candidate fired back: “Yeah, it is,” having batted aside any suggestion that he needed a thicker skin to become commander-in-chief.

“I’m going to continue to attack the press,” said the 69-yearold. “I find the political press to be unbelievably dishonest.”

Trump has routinely attacked reporters on Twitter he considers biased, most notably Fox News anchor Megyn Kelly, until they reconciled with a face-to-face interview, broadcast earlier this month.

But stepping up his attacks may also see independents or moderates increasingly question his temperament to be president. l

Venezuelan opposition lawmakers warned Wednesday the country risks exploding into unrest if officials delay a referendum on removing President Nicolas Maduro, whom they blame for severe shortages and economic collapse.

7 members of the opposition-led congress met electoral authorities to urge them to accelerate a recall referendum.

-AFP

UK

UK referendum: EU nationals have wrongly received polling cards David Cameron has been urged to stop EU nationals voting in the referendum in a letter from Iain Duncan Smith complaining of deeply disturbing reports that some have wrongly received polling cards. Writing jointly with the Tory MP Bernard Jenkin, he said the campaign to leave the EU had been contacted by a number of concerned electors saying ineligible EU citizens have been told they have a vote on 23 June.

-THE GUARDIAN

EUROPE

Turkey recalls German ambassador over Bundestag's motion Turkey has recalled its ambassador from Berlin after German MPs approved a motion describing the massacre of Armenians by Ottoman forces a century ago as genocide. The German chancellor, Angela Merkel, had voted in favour of the resolution during a test vote at a party meeting on Tuesday, but was absent from the actual vote on Thursday.

-AFP

AFRICA

8 killed at Mauritania Ramadan aid event for poor 8 women were trampled to death in a stampede to receive alms being distributed by a charity in Mauritania ahead of the Muslim holy month of Ramadan. A large crowd had gathered on Wednesday to receive the equivalent of around $30 per person that was to be handed out by wealthy businessman Zeine Abidine Ould Cheikh Ahmed in the capital Nouakchott.

-REUTERS

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FRIDAY, JUNE 3, 2016

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FRIDAY, JUNE 3, 2016

TOP STORIES

Interest rate cut on savings instruments likely n Jebun Nesa Alo Tk4,500cr allocated for export, market diversification The government has proposed Tk4,500 crore as incentives for encouraging export and market diversification. PAGE 13

Tax at source for export raised by 1.5% The government has proposed to raise the tax at source on exports, including that of the garment sector, to 1.5% from 0.60% for the fiscal year 2016-17. PAGE 13

Fed, China fears force investors to check out of Asia Having dumped Asian shares on resurgent worries about China’s economy, the specter of more aggressive US interest rate rises is now forcing global investors to sell the region’s bonds and currencies. PAGE 14

Capital market snapshot: Thursday DSE Broad Index

4,446.1

0.5% ▲

Index

1,097.0

0.5% ▲

30 Index

1,761.2

0.9% ▲

Turnover in Mn Tk

4,935.3

37.8% ▲

Turnover in Mn Vol

151.9

22.3% ▲

All Share Index 13,691.3

0.5% ▲

30 Index

0.5% ▲

CSE

Selected Index

12,563.1 8,329.7

0.6% ▲

Turnover in Mn Tk

387.2

54.3% ▲

Turnover in Mn Vol

13.0

5.0% ▲

Finance Minister AMA Muhith has hinted at cutting interest rates on savings instruments to reduce the expenditure cost. ‘’The government will reduce its dependency on domestic financing by putting more efforts on the use of foreign financing that remained in the pipeline,’’ said Muhith while presenting his budget proposal for the fiscal year 2016-17 yesterday at parliament.

He said: “We have become more dependent on domestic sources for financing mostly savings instruments. If it continues further, financing to development projects will be interrupted due to sore in interest expenditures.

Against this backdrop, the government will enhance its effort to get multilateral loan at soft conditions, the minister continued. ‘’If the government wants to reduce the borrowing from savings instrument, it needs to cut interest rates on the schemes,’’ said M Farid Uddin, managing director of Rupali Bank.

Slide in interest rate on savings instrument will reduce government expenditures as well as expedite the bank borrowing. Moreover, the move to cut interest rate on savings instrument will accelerate credit growth in the banking sector, the minister hoped.

The government has set the borrowing target from National Savings Schemes at Tk19,610 crore at the proposed budget for the fiscal year 2016-17, higher from Tk15,000 crore in the current fiscal year.

Though the proposed estimate is higher from previous actual budget, the amount is lower from the revised financing of Tk28,000 crore from savings instruments.

On the other hand, the government has set borrowing target from banking system at Tk38,938 crore in the proposed budget, slightly higher from Tk38,523 crore targeted for current fiscal year. Howev-

Finance Minister AMA Muhith delivers budget speech yesterday er, the real borrowing was around Tk25,000 crore, far below from the revised target of Tk31,675 crore for fiscal year 2015-16.

Bank borrowing was sluggish as government was getting financing more from savings instrument than the target due to high interest rate. Currently, the interest rates on savings schemes are around 12% while deposit rates are hovering in between 6% and 7%.

Demand increased from all the authorities concerned to cut interest rate on savings instruments to bring balance in interest rate in the market. But, the government was against the demand considering the pensionaries.

Farid Uddin said: “The bank borrowing target set by the government will not crowd the banking sector as financial market still awash with

Bank recap fund Tk2,000cr n Jebun Nesa Alo State-owned banks have got an allocation of Tk2,000 crore for their recapitalisation in the proposed budget.

The allocation was cut to Tk1,800 crore in the revised budget this fiscal from Tk5,000 crore.

Of the eight state-owned commercial banks, six have capital

shortfall of around Tk10,000 crore as of December last year.

The government has lowered the allocation after criticism against the use of public money to recapitalise banks.

The state banks will face difficulties to comply with the capital requirement as per Basel-2, the regulatory capital framework, said M Farid Uddin, MD of Rupali Bank. l

BSS

huge liquidity. In fact bank borrowing will benefit the banks because they will get more return from lending to government than investing in treasury bills, he said.

He said: “Lower bank borrowing in last couple of years eroded bank’s profit as banks were burdened with huge excess liquidity amid sluggish investment climate.

So, high bank borrowing target will be blessing for the banks.” ‘’We have been able to reduce the interest rate spread as well as lending and deposit interest rates to some extent by reducing policy rates and increasing efficiency and competition in the financial sector’’ explained Muhith in his speech. ‘’I believe this downward trend of lending interest rate will expedite private investment’’, he said. l

RMG corporate tax cut, but ‘still high’ n Ibrahim Hossain Ovi

In the proposed budget, corporate tax on the export-oriented readymade garment industry has been reduced to 20%.

“As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35% to 20%,” said Finance Minister AMA Muhith in his budget speech yesterday.

However, the garment exporters’ demand was to cut the rate to the FY2014-15 level which was 10% as high corporate tax “discourages new investment.”

“The proposed 20% rate is still high. We asked for 10% as high corporate tax discourages new investment into the industry,” BGMEA Vice-President Mohammad Nasir told the Dhaka Tribune in an immediate reaction after the rate was proposed.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanded a 10% rate as corporate tax for the industry which makes up more than 80% of the country’s total export earnings.

“New investment will still be hindered if 20% rate is implemented. It should be cut further as new investment is key for new employments, which is a must to achieve the Vision 2021,” Nasir said.

He said the sector had to invest a lot to improve safety standards in the factories. “We are under pressure as one has to spend at least Tk5 crore on safety improvement.”

“We have set an annual export target of $50bn for the RMG industry by 2021. It will not be possible, if the production capacity of the sector is not increased as per demand,” said BGMEA vice-president calling on the government to keep corporate tax at 10% for the industry.

The garment industry, which earned $25.5bn from exports last fiscal year, currently employs over 4m workers, of which 80% are women mostly from rural areas.

Muhith said the government is providing “substantial tax benefits” to the apparel sector acknowledging its contribution to the economy. l

FRIDAY, JUNE 3, 2016

Tk4,500cr allocated for export, market diversification n Ibrahim Hossain Ovi The government has proposed Tk4,500 crore as incentives for encouraging export and market diversification.

“Despite sluggish global market, exports so far posted satisfactory growth and we continue to provide incentives for encouraging export and market diversification,” Muhith said in his budget speech yesterday.

“I propose to allocate a total of Tk4,500 crore as incentives for exports including Tk500 crore for jute goods,” Muhith told the Parliament while dressing the National Budget for the fiscal year 2016-17.

However, in an immediate reaction, the export-oriented business people urged the government to increase the allocation to Tk6,000 crore.

Bangladesh Frozen Foods Exporters Association president SM Amzad Hossain thanked the finance minister and called for a hike in the allocation to help new market exploration.

“We have undertaken an array of activities such as formulation of laws, rules and policies including amending and updating outdated laws in order to create a viable environment for the industry,” said the finance minister.

He added that the National Industry Policy 2015 and Trademarks

Bangladesh export products like frozen foods have been going to some traditional market for long Rules 2015 have already been framed.

“We are establishing Women Entrepreneurs Development Unit in all banks and non-bank financial institutions including Bangladesh Bank for accelerating development of women entrepreneurship.”

“For that purpose, I propose a token allocation of Tk100 crore in the next year’s budget. We will also form a challenge fund to make sure that rural women and underprivileged entrepreneurs can access loans.”

Besides, plans are underway to

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DHAKA TRIBUNE

initiate credit guarantee schemes for small entrepreneurs so that they are not denied bank loans for lack of collateral.

The government is also working to enhance productivity, generate employment opportunities and boost exports, said Muhith. l

Tourism sector gets Tk100cr allocation n Ishtiaq Husain Finance Minister AMA Muhith yesterday in his budget speech proposed Tk100 crore for tourism sector as the government declared 2016 as Tourism Year.

“We are planning to undertake a project with a view to promoting our tourism sector, creating awareness about it at local level and developing tourist sites across the country,” he said.

“As the prime minister declared 2016 Tourism Year, I propose to allocate Tk100 crore initially for this purpose in this budget.”

Muhith said the government is also considering building tourist and entertainment village in Cox’s Bazar, an international-standard tourism complex and a five-star hotel in Sylhet under Public-Private Partnership (PPP).

Though the government on December 31, 2015 declared 2016 the Tourism Year, the ministry is going to get the allocation in July next.

Civil Aviation and Tourism Minister Rashed Khan Menon expressed his dissatisfaction in an exclusive interview with Dhaka Tribune recently over the delayed budget allocation for the tourism sector.

Earlier Menon announced that steps would be taken to revitalise the sector, and at least 10 lakh foreign tourists would visit Bangladesh in 2016. l

AFD to give 5m euros for DWASA Tax at source for n export raised by 1.5% Tribune Desk Report

French Development Agency (AFD) will provide Bangladesh with five million euros in grants to develop water connections for Low Income Communities (LICs) and provide technical assistance to Dhaka Water Supply and Sewerage Authority An agreement in this regard has been signed between AFD (Agence Française de Développement – French Development Agency) and the government of Bangladesh at the annual consultation meeting held in Dhaka on June 1-2.

The meeting focused on the project titled “Development of Dhaka WASA Activities in Low-Income Communities – Capacity Building and Financial Modelling”.

Of the five million euros, four million will be invested for enabling additional water connection for LICs, and the rest for providing technical assistance for DWASA. The new intervention confirms AFD’s further significant engagement in Dhaka water sector as evidenced last year when a 47-mil-

lion euro loan was signed for the project, Gandharbpur Water Treatment Plant, plus the agency’s likely funding for the Saidabad Phase-3 Water Treatment Plant Project.

A high-level delegation from AFD visited Dhaka on June 1 and 2 to attend the meeting which was hosted by the External Relations Division (ERD) of the Ministry of Finance.

The Bangladesh delegation was headed by Mr Abul Mansur Md Faizullah, additional secretary to the ERD, while the French delegation by Sophie Aubert, French ambassador to Bangladesh, and AFD senior officials including Mr Pascal Pacaut, director of Asia Department at AFD headquarters in Paris.

Other ministries and government entities such as Road Transport and Highways Division, Local Government Division, DWASA, DPDC and other key partners of AFD also took part in the discussion.

The French Development Agency (AFD) is a public development finance institution working in more

than 70 countries on a mission to execute the aid policy of French government. In 2015, AFD committed a total of 8.3 billion euros for development projects across the world.

The relatively new Development Partner in Bangladesh started its operations in 2013 on a mission to promote green and inclusive growth.

Meanwhile, AFD has approved a total of eight projects worth 367 million euros in favour of Bangladesh through concessional loans and grants.

It has so far signed four agreements with the government of Bangladesh for a total amount of about 190 million euros.

The projects currently supported by AFD include Dhaka Bus Rapid Transit (BRT) for northern corridor (Gazipur to Airport), Gandharbpur Water Treatment Plant, capacity building for Dhaka Power Distribution Company (DPDC) and a technical assistance programme for Dhaka Transport Coordination Authority. l

n Ibrahim Hossain Ovi The government has proposed to raise the tax at source on exports, including that of the garment sector, to 1.5% from 0.60% for the fiscal year 2016-17.

Currently, the apparel makers and other export-oriented sectors pay 0.60% tax at source.

In the last budget, the government increased it to 1%, but later it was reduced to 0.60% following demand from the clothing product exporters.

Finance Minister AMA Muhith made the proposal in his budget speech in the Parliament yesterday.

“It will hurt the business of small entrepreneurs and they have to shut factories, thus discouraging new investments,” BGMEA Vice-President Mahmud Hassan Khan Babu told the Dhaka Tribune.

If the government wants that, there will be no small entrepre-

neurs and no new investment, he added.

The rate of tax at source should be for a certain period, as it would help investors take decision in making investment, Babu said.

“I think the ratio should be at least for three years.”

Most export-oriented sectors failed to achieve the export target and it would not be timely decision to increase tax burden, Exporters Association of Bangladesh (EAB) president Abdus Salam Murshedy told the Dhaka Tribune.

The export-oriented sector, especially RMG, is turning around to build image and enhance capacity.

That is why the government should reinstate the previous rate to help overcome the situation, he added.

He added: “We are losing competitive edge while our competitors are becoming strong as they are getting policy support from the government which we lack.” l

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Factories stuck in low gear on sluggish demand n Reuters, London Global manufacturing activity remained stuck in a rut last month with factory output from Asia to Europe barely improving as producers struggled to bring in new orders, surveys released Wednesday showed.

Speculation has hardened in recent weeks that the US Federal Reserve will raise interest rates in the next few months which, coupled with concerns about China and a possible British exit from the European Union, has knocked confidence.

The world economy will meander along at its slowest pace since the financial crisis for a second year in a row in 2016 as it is ensnared in a “low-growth trap”, the OECD said yesterday, urging governments to boost spending.

Having fired another salvo in its battle to drive up growth and inflation in the euro zone earlier this year, European Central Bank President Mario Draghi in April called on governments to help get the region’s sluggish economy on a more solid footing.

Yet, despite the ultra-loose monetary policy, euro zone manufacturing activity remained lacklustre in May, supporting the view that strong economic growth in the first quarter did not carry through to the second.

“This reinforces the idea things are going okay; it’s not a disaster, but clearly there are no obvious signs that the big lift we saw in Q1 is going to be sustained,” said Ben May at Oxford Economics.

“Industry will be a bigger drag on growth in Q2 so we will see a slow down in GDP growth in the euro zone.”

British factory growth was minimal at best in May and activity in Asia also failed to speed up as the region’s export-driven businesses struggled for new orders from an overall lacklustre global economy.

“The picture is pretty muted in Asia, both in terms of exports and factory activity,” said Su Sian Lim, Southeast Asia economist at HSBC in Singapore.

Similarly, US factory activity grew only marginally last month, Institute for Supply Management data due later on Wednesday are expected to show.

Fed, China fears force investors to check out of Asia n Reuters, Singapore Having dumped Asian shares on resurgent worries about China’s economy, the specter of more aggressive US interest rate rises is now forcing global investors to sell the region’s bonds and currencies.

A net $3.2bn left Asian equity markets, excluding Japan, during the period May 1 to 24, the largest outflow since January, data from HSBC showed. Indonesia’s and South Korea’s bond markets, heavy recipients of foreign investment until March, are now seeing chunks of inflows reverse while Asia’s currencies have also fallen quite sharply.

Some market participants see foreign investment outflows across Asian asset classes as an overreaction, given the strides policymakers have made in shoring up capital flight defenses since the “Fed taper tantrum” in 2013.

But for others, the unease around the Fed’s policy deliberations twins increasing concerns around currency volatility with broader worries about the health of the China’s real economy.

“If the Fed hikes rates in June, it might come at a time when the Chinese economy weakens, and that could also mean that the Chi-

People cross a junction in front of an electronics retailer in a business district in Tokyo REUTERS nese currency starts to weaken again,” said Herald van der Linde, head of Asia-Pacific equity strategy at HSBC in Hong Kong.

“And that could lead to a scenario where everybody’s up and down and markets fall five to 10%.”

MSCI’s Asia Pacific ex-Japan index rose 19% between late January and end-April on the tailwinds of a dovish Fed, stabilization in commodity prices and hopes China’s economy will recover.

The fall - the index is down 5%

since and touched a 12-week low on May 24 - is reminiscent of the selloff that followed the Fed’s firstrate rise in a decade in December.

It also comes as a surprise for some, given the relative health of Asia’s economies compared with other emerging market blocs, such as Latin America.

And the downside could be limited given the broad dollar trade-weighted index has climbed 20% over the past two years, suggesting Asian currencies may have

already priced in higher US rates.

Despite this, plenty of asset managers expect further weakness in emerging markets and are positioned accordingly.

Deutsche Asset Management, for instance, expects another dip in emerging markets in the second half of the year and is holding off buying Asia.

“The market is split between those who think it’s time to buy emerging markets and those who think the China data is not sustainable and US rates will go up and emerging markets are overvalued,” said Sean Taylor, chief investment officer at Deutsche Asset Management. Deutsche had $846bn of assets under management at the end of December.

Soft Chinese economic data in April has raised doubts about the effectiveness and sustainability of the fiscal stimulus being doled out in the world’s second-largest economy.

Chinese stocks .SSEC, the region’s worst performers, are down almost 20% this year.

For bond investors, Asia’s weakening currencies aren’t the only concern: subdued inflation and already low central bank rates mean the scope for gains is more limited than it is in other emerging markets. l

CORPORATE NEWS

Social Islami Bank Limited has recently opened its 119th branch at Charfassion in Bhola, said a press release. The bank’s MD and CEO, Md Shafiqur Rahman inaugurated the branch as chief guest

AB Bank Limited has recently signed a payroll management agreement with a PRAN-RFL Group, said a press release. The bank’s MD, Shamim Ahmed Chaudhury and Uzma Chowdhury, director (finance) of PRAN-RFL Group have signed the agreement

City Bank has recently held an extraordinary general meeting in order to accommodate subscription of IFC into the equity shares of the bank, said a press release. The bank’s chairperson, Rubel Aziz presided the meeting

Islami Bank Bangladesh Limited has recently held its 33rd annual general meeting, said a press release. The bank’s chairperson, Engr Mustafa Anwar presided over the meeting

Holding pattern

Markit’s final manufacturing Purchasing Managers’ Index (PMI) for the euro zone dipped to a threemonth low of 51.5 from April’s 51.7, in line with a flash reading. Anything above 50 indicates growth.

A sub-index measuring output, which feeds into a composite PMI due Friday that is seen as good guide to growth, also fell. l

Saudis pledge not to shock oil market as OPEC debates policy n Reuters, Vienna Saudi Arabia promised yesterday not to flood the oil market with extra barrels as OPEC entered a heated debate about production policy, with Iran insisting on the right to raise output steeply.

Tensions between the Sunni-led kingdom and the Shiite Islamic Republic have been the highlights of several previous OPEC meetings, including in December 2015 when the group failed to agree on a formal output target for the first time in years.

Several OPEC sources said Saudi Arabia and its Gulf allies would propose to set a new collective ceiling in an attempt to repair OPEC’s waning importance and end a market-share battle that has sapped prices and cut investment.

Failure to reach any deal would revive market fears that OPEC’s largest producer Saudi Arabia, already pumping near record highs, may raise production further to punish rivals and gain additional market share.

“We will be very gentle in our approach and make sure we don’t shock the market in any way,” new Saudi Energy Minister Khalid al-Falih told reporters ahead of the meeting.

“There is no reason to expect that Saudi Arabia is going to go on a flooding campaign,” Falih said when asked whether Saudi Arabia could add more barrels to the market.

Answering a question on whether Riyadh would propose setting a collective output ceiling, he said: “We will do that when necessary‎.” He added that he would listen to anything Iran brings to the table.

Any agreement between Riyadh and Tehran would be seen as a big surprise by the market, which in the past two years has grown increasingly used to clashes between the political foes as they fight proxy wars in Syria and Yemen.

Saudi Arabia effectively scuppered plans for a global production freeze - aimed at stabilising oil markets - in April. It said then

that it would join the deal, which would also have involved non-OPEC Russia, only if Iran agreed to freeze output.

Tehran has been the main stumbling block for the Organization of the Petroleum Exporting Countries to agree on output policy over the past year as the country boosted supplies despite calls from other members for a production freeze.

Tehran argues it should be allowed to raise production to levels seen before the imposition of now-ended Western sanctions over Iran’s nuclear program.

Iranian Oil Minister Bijan Zanganeh said Tehran would not support any new collective output ceiling and wanted the debate to focus on individual country production quotas.

“Without country quotas, OPEC cannot control anything,” Zanganeh told reporters.

He insisted Tehran deserved a quota - based on historic output levels - of 14.5% of OPEC’s overall production.

OPEC is pumping 32.5 million barrels per day (bpd), which would give Iran a quota of 4.7 million bpd - well above its current output of 3.8 million, according to Tehran’s estimates, and 3.5 million, based on market estimates.

Zanganeh said he supported a candidate from Nigeria for the post of OPEC secretary-general, which could emerge as a rare compromise within the organization if Riyadh also backs the appointment.

Country quotas

Falih was the first OPEC minister to arrive in Vienna this week, signaling he takes the organization seriously despite fears among fellow members that Riyadh is no longer keen to have OPEC set output.

“There could be shorter-term situations in which, in our view, OPEC might intervene and yet other situations — such as long-term growth of marginal barrels — in which case it should not,” Falih told Argus Media ahead of the meeting. l

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Event

FRIDAY, JUNE 3, 2016

Top five startups meet investors at Demo Day

A

fter four months with the GP Accelerator program, five startups got the opportunity to present their businesses in front of more than 100 attendees including investors and professionals on Demo Day on May 31 at GPHOUSE. Rajeev Sethi, CEO of Grameenphone launched the event by reiterating the journey of the Grameenphone Accelerator program. Before the speeches of an introductory session titled “Startup Bazaar” was organised.

During that session, the attendees were able to meet and chat with the five startups from the GP Accelerator team.

Kazi Mahboob Hassan, head of transformation said, "Demo day is a showcase of the exciting startups that has now gone through four months of rigorous curricula and experienced mentorship in a highly competitive environment. It is a program, meant to keep energy high, investors intrigued, and to build towards an unbelievable startup eco system in Bangladesh that sustains itself. If successful, these companies have the potential to change the way things work around us. We celebrate not just the success part of their cycle but also the inevitable downturns.

Today Grameenphone has reached another milestone to clearly demonstrate its commitment with the vision of “empowering societies.’’

In October 2015, Grameenphone partnered with SD ASIA to launch

the “GP Accelerator” in search for five talented tech startups in Bangladesh. After a rigorous process of reading through hundreds of startup applications, face-to-face interviews, and demo presentations, the GP Accelerator team unveiled the top five startups to participate in the announcement program, on February 7 at GP House.

The top five startups (Ennovision, Sheba, Repto, Kandy, and Share) received a seed funding of more than BDT. 10 lakh each, and got the opportunity to work inside GPHouse – with full logistical support and the teams were also mentored by SD Asia’s panel of start-up ecosystem experts.

Samad Miraly, co-founder of SD Asia expressed his excitement

about the Demo Day. “Demo day is about the showcasing of progress. I think the teams are best placed to talk about how much improvement they have seen in last four months. In case they are being humble, I can say that I am truly impressed by the level of commitment dedication, persistence, and leadership they have shown,” he said.

Grameenphone provided business related full logistics support for the top starters at the office space of GPHOUSE. Faisal Kabir, project head of GP Accelerator, said, “We are very happy that the first batch of the GP Accelerator program has graduated. While joining the program Demo Day was the end goal for the startups, we believe each startup has put more than

Ennovision Limited is a web design company that serves as the onestop solution for businesses looking to create a solid online presence through their websites.

Kandy is an intelligent personalisation mobile advertising application that puts delightful content on users’ lock screens, and time-saving tools, giving a useful lock screen experience.

Share is a carpooling application, looking to disrupt the way people commute around Dhaka city.

SHEBA is a service platform for solving day-to-day household problems.

REPTO Education Center is an online course marketplace, where you can create courses with state-of-the-art web tools and sell your courses online.

100% to come up to where are they today. Partnership our partnership with SD Asia has helped ensure that the startups are on track and being guided to scale up faster.

We had a lot of new learning and unplanned scenario management during the last four months.

Hopefully, the lessons learnt will be helpful in supporting the business development of GP Accelerator second batch better than before.”

SD ASIA arranged several mentorship sessions, pitching seasons for the Top five. Every week the five startups from the Grameenphone Accelerator attended sessions on crucial business topics. Relevant experts and mentors were invited to be the guest speakers for these learning sessions.

Mustafizur Rahman Khan, CEO and founder of SD Asia, sees the demo Demo Day as an opportunity for the startups. “SD ASIA is very fortunate to have Grameenphone as a partner in starting the accelerator program. We believe the program has not only help the startups to become better but also help GP to understand the potential of data-driven companies in Bangladesh. With the current program finishing, we look forward to welcoming next batch in August”.

GP Accelerator Demo Day was an event where Bangladeshi startups found exposure with investors, both local and international.

Investors, entrepreneurs, and social media specialists from over the world attended the event and

Demo day is a showcase of the exciting startups that has now gone through four months of rigorous curricula and experienced mentorship in a highly competitive environment brought the Bangladesh startup ecosystem to their attention.

SD ASIA is a content and event platform that connects local tech startup with investors. The company was founded in 2014 by venture builders Mustafizur Rahman Khan, Fayaz Taher and Samad Miraly. SD ASIA’s main objective is to promote and encourage tech entrepreneurs who work to solve local or global problems. It has hosted tech-meet-ups, workshops, and large tech conferences to bring Bangladesh forward as a viable foreign investment destination.

The company advocates founderfriendly startup policies, particularly with its latest project, the Grameenphone Accelerator (powered by SD ASIA). l

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FRIDAY, JUNE 3, 2016

| toy |

| colouring |

Spirograph: Imagination kit n Syed Azraf Zaman A Spirograph is a stationery kit that you can use to draw a lot of shapes, curves, and other interesting designs.

The kit has been around since 1965. The main kit hasn’t changed much, but parts were improved with time.

Spiro-putty has been introduced recently; it stops you from making holes in your paper while keeping your Spirograph pieces in place.

The Spirograph set includes pens, Spirograph wheels, rings, and racks.

There is also a guide book and even design paper, so that you can go crazy with your imagination. This kit is available at Lavender in Dhaka.

| book review |

| diy |

What Does the Firefly Have?

Easy Cabinet

Once there lived in a forest a little firefly, and it would look around and think, “What do I have?”

It looked around and saw how the grasshopper hides behind the grass just as green, and the butterflies have beautiful and colourful wings. How the birds make happy homes for themselves, and how the spider makes its own web. How the bees collect honey from flowers and the little firefly feels sad and wonders, “What do I have?”

But she has something special too! Can you guess what it is? Read the Bengali book “What does the Firefly Have?” by Syeda Farzana Zaman Rumpa and beautifully drawn by Mahbubur Rahman to find out! l

Tired of getting scolded by your mom to clean up your room?

Well here’s an easy solution.

What you’ll need: - Paint and brushes - Tape - Ruler - Pencil - Craft knife - Bottle caps - Cardboard Paint the cardboard boxes and put them on top of each other.

Use tape to hold them together.

On each box, measure and cut out a door. The cut should be one inch away from the sides; do this on three sides, the remaining side will become your hinge for the door. If the door seems weak to

the touch, tape a smaller piece of cardboard on the inside to make it stronger. On each door, punch a hole and place bottle caps or anything that can be used as a handle. Make small holes in the bottle caps and put strings through them, tie a knot to hold the caps in place. Decorate as you want and then keep all your small things in your new easy cabinet. l

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FRIDAY, JUNE 3, 2016

Fun Science

Poking Potatoes with straws

Meet the Artist

You need • Stiff plastic Straws • Potato Confused with the title? How is it actually possible to poke potatoes with straws? Well it’s easy, here’s your trick.

You hold a straw by its sides and poke the potato. What will happen? The straw goes through a small part of the potato.

Try again, but this time, cover the top part of the straw with your thumb and you can see the straw go through a bigger part.

What happens here? When you cover the top with your thumb, the air is trapped inside the straw, which makes it stronger, unlike the first attempt which pushes the air out.

Have fun poking potatoes!

Garfield Who doesn’t love pizza? Almost everyone does, including cats!

Especially one cat, this fat, fluffy, black and orange tabby. His name is Garfield, and he is one of the coolest cartoon cats ever. All he ever does is eat, sleep, and breath, which he says is great exercise.

And the person who drew this

Photo of the week

lazy bum is also an awesome cartoonist. His name is Jim Davis.

Jim is famous for drawing kitties. When he was young, Jim and his brother had twenty-five cats!

He loves them, but funny thing is, his wife is allergic to cats. But that didn’t stop him from keeping one in his home anyway!

Trivia

All about bats

n Khatidja Hussein Ignoring the scorching sun, children turn bathing into a game. This photo was taken on the bank of the Jamuna River, Shirajganj.

Photo: Sajib Kumar Ghosh

Bat Facts: • Bats are flying mammals.

• Other flying animals can only glide but bats are able to fly.

• Bats have the ability to see in the dark. This is known as “echolocation.”

• Bats are very active at night.

• Vampire bats are a type of bats that feed on blood.

• Female bats give birth only once a year.

• Some species of bats are at a risk of dying out.

• The newborn bat is known as a pup.

• Some bats prefer to live alone, while others choose to live with thousands of other bats in caves.

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Biz Info

FRIDAY, JUNE 3, 2016

| art |

| competition |

The Milkshake Collective

Inception: Business Plan Competition Grand Finale held at ULAB

Just the little guys making some art The Milkshake Collective, a blend of 22 local artists, held their first exhibit yesterday, June 2nd, at the stunning new venue by Cityscape, in the heart of Gulshan.

The three day exhibit will showcase the different styles, mediums, and methods of these artists who’ve come together to display their work. Starting from contemporary and pop to modern and graphic, the styles of each artist varies from the next. Canvas, paper, digital, and sculptural works will be on display alongside

art prints, textile, decor and other merchandise.

Aside from diversity, The Milkshake Collective promises to be one of most exciting underground exhibit, being completely run by the artists themselves without links to sponsors and galleries. The first of many, it gives platform to many established as well as upcoming artists.

The radio partner for the event is Radio ABC 89.2 FM, and the opening night will be catered by The Flourist.

Schedule: 2nd June - Opening at 5:30 pm 3rd June - 12 pm - 8:30 pm 4th June - 12 pm - 8:30 pm Participating Artists: Alia Kamal, Dibarah Mahboob, Farah Khandaker, Gazi Nafi, Ismail Ferdous, Istela Imam, Kabir Ava, Liza Hasan, Mahenaz Chowdhury, Maleena Dhrity Gomez, Manik N Ratan, Nuhash Humayun, Nuzhat Tabassum, Saiqa S Chowdhury, Saria Saguaro, Sayeef Mahmud, Shevi Vee, Syed Rashad Imam Tanmoy, Tanzia Haq, Tausif Sabir, Wasi Ahmed and Waseka Nahar. l

| tech |

Huawei Y3 II hits Bangladeshi market Huawei recently launched the Y3 II in Bangladeshi market. Huawei’s latest device, Y3 II has already gone out of stock. The entry level device, priced at Tk6,190, was so high in demand that it outstrip Huawei’s available supply within an unexpectedly short time. The device attracted buyers because of its useful features coupled with a compact design.

The 4.5 inch device, boasting an IPS display with high pixel count, is powered by a 1.3Ghz Quad Core processor, and 1GB RAM coupled with 8GB ROM. The phone has a 5 Megapixel camera on the back, and a 2 Megapixel front camera which makes sure its users do not miss any moment. Huawei Y3 II runs Android™ 5.1, and under the hood there is a huge 2100mAh battery ensuring enough juice to survive hours of web browsing, music, and video play. It has Bluetooth 4.0 connectivity, Wi-Fi Direct, Wi-Fi Hotspot, Micro USB 2.0, G-sensor, L-sensor, and proximity-sensor electronic.

There are a couple of special features too including Rainbow Light and Easy Key. Rainbow light is an eye-catching light which will

| meals | glow for music, and can be set to different colours for three special contacts and caller group. It also functions as a notification light for low battery, charging, unread SMS, and missed call.

On the left side of the handset, there is an access key which can be set as a shortcut to any application. Unlike its market competitors, Y3 II packs dual LED flash on the back which is 30% brighter than average phones in this price range.

Huawei launched the device on the local market on May 30, and sold out its first stock of 3,000 devices in an hour. l

Savour the spirit of Ramadan Platinum Hotels is offering delicious ways to celebrate the month of Ramadan.

They have created a festive menu by fusing old favourites with new delicacies for Iftar, followed by dinner and sehri.

Zizzi Banquet at Platinum Suites, will be open for reservation for special events and gatherings. For reservation, please call 01975284686 or 01959901301. l

The grand finale of ‘Inception: Business Plan Competition’ was held at ULAB auditorium on Tuesday, May 31, 2016.

The event was hosted by ULAB Business Club with the help of Enroute. The business plan competition was developed under Swiss Agency for Development and Cooperation (SDC) funded project ‘Ashshash: For men and women who have escaped trafficking.’ The project was implemented by International Organization for Migration (IOM) – the largest intergovernmental organisation for migration in the world.

The program’s objective was to involve university students in designing practical out-ofthe-box business plans from a pre-selected small-scale service oriented business trade list, for people who have escaped trafficking in the recent past.

A Total of 20 teams from ULAB participated in the competition. The grand finale saw the top 5 teams of the competing for the top prize.

Team Green Thinkers, consisting

of the members: Ibrahim Mishal Fauzy, Seheli Chemon Muna, and Mohedul Alam, came out on top as the champions of the competition. The 1st and 2nd runners up positions were taken by ‘The Musketeers’ and ‘Team Brain Qube.’ Cash rewards of Tk30,000, 20,000 and 10,000, were given to these top 3 teams respectively.

ULAB Business Club advisor assistant professor, Niaz Patwary gave the opening speech and officially inaugurated the final competition. The event was graced with the presence of special guest Pro-Vice Chancellor of ULAB, Professor H M Jahirul Haque. Jahan Ara Begum, Joint Secretary; Ministry of Women and Children Affairs (MoWCA); Rasha Elamin, Deputy Chief of Mission, IOM; Asma Khatun, National Programme Officer, IOM; Asif Uddin Ahmed, assistant professor, ULAB; Abu Daud Khan, CEO, Enroute International Limited were present in the event, and enlightened the judging panel of the competition. l

DT

20 Editorial

FRIDAY, JUNE 3, 2016

TODAY

The amazing presidential race The biggest surprise was not what Trump said, but how his popularity increased with each shocking utterance.

The more reckless he became with his rhetoric, the more his supporters loved him PAGE 21

Underestimating the value of women’s work McKinsey and Co estimates the value the time women spend on unpaid care work at a staggering $10 trillion a year PAGE 22

Financial literacy for children Thankfully, some mobile apps which instill smart money management habits, aimed at kids (and their parents), have come up in several countries PAGE 23

Be heard Write to Dhaka Tribune FR Tower, 8/C Panthapath, Shukrabad, Dhaka-1207 Send us your Op-Ed articles: opinion.dt@dhakatribune.com www.dhakatribune.com Join our Facebook community: https://www.facebook.com/ DhakaTribune.

The views expressed in Opinion articles are those of the authors alone. They do not purport to be the official view of Dhaka Tribune or its publisher.

BIGSTOCK

A participatory budget, but implementation is key

T

he national budget for FY2016-17 has finally been unveiled, and there is reason to be hopeful. The finance minister, in his speech, mentioned the participatory approach in engaging various stakeholders in creating the budget and this has been highlighted in several budget measures.

For one, the government has decided not to impose a universal 15% VAT for all trades after protests and instead is maintaining the package VAT system for small traders. It should be noted that the package VAT has been doubled, which may be a burden on small businesses.

The educator sector received a boost with an allocation increase of 57% to Tk26,847 crore from last year’s Tk17,103 crore. While this has increased the potential for more educational activities, we still have challenges of matching UNESCO’s recommendations for the education sector. Based on last year’s protests, the government has decided not to impose any VAT on university education.

Mega-projects and infrastructural development are wellsupported.

Much thought and ambition has gone into this budget, but the key, as ever, is in the implementation, and we trust that the government will leave no stone unturned in its efforts to hit the budget’s targets and ensure that its development goals are reached.

The government must take appropriate measure to reduce any inefficiencies that prevent the budget from being properly implemented. Let us hope as the budget is implemented throughout the year, the government continues to be participatory and engage stakeholders for proper implementation.

The key, as ever, is in the implementation, and we trust that the government will leave no stone unturned in its efforts to hit the budget’s targets

DT

21

Opinion

FRIDAY, JUNE 3, 2016

The amazing presidential race Despite early predictions, Trump has triumphed among the Republicans

n Ziauddin Choudhury

A

bout a year ago, when Donald Trump declared his presidential candidacy seeking the Republican Party nomination, to most people, it was a pie-in-thesky kind of dream.

But bursting the highfloating speculative balloons of all political soothsayers and media Nostradamuses, Trump has already achieved the coveted minimum number of delegates required for the party’s nomination with five more state primaries still left.

For all intents and purposes, he is the presumptive Republican presidential nominee for the November elections. Will he keep up his winning streak in the ultimate run for presidency?

Trump’s “triumph” so far has been pivoted on his relentless pursuit of some staple ideas and concerns dear to him and his supporters. These are illegal immigration, job flights out of the US, the falling economic status of the white middle class, an adverse trade relationship with China, the fight against terrorism, and Muslim-bashing.

He has been not only outspoken on all of these, but also has made outrageous comments against Mexican immigrants, calling them rapists and murderers, has called for a ban on Muslim entry into the US, and has threatened trade wars with China.

His foreign policy statements have astounded politicians and political analysts, both home and abroad, when he suggested that NATO was obsolete and UN was a political game. He deeply offended US allies when he commented that the US should withdraw military support for Japan and South Korea unless they paid for it.

But the biggest surprise was not what Trump said, but how his popularity increased with each such shocking utterance. The more reckless he became with his rhetoric, the more his supporters loved him. Nothing could daunt his forward march, not even the daring confrontation of his rallies by his detractors.

While he became an anathema to the more gentle and civil part of society, including the minorities, he became a hero and an idol of a large section in the country which blamed their own party and current government (President Obama, more specifically) for the failings in the country.

This section believed that

they had fallen behind because of the very problems Trump was articulating. They liked Trump’s coarse rhetoric and his macho image to stand up to US’s enemies, political or economic.

No one among Trump’s 16 other contenders for Republican nomination could stand beside him; they fell one by one.

For Trump, there is one final obstacle to his incredible race for presidency: The elections in November. His Democratic opponent, yet undeclared, is most likely going to be Hillary Clinton, barring any last minute change in the political spectrum of this country.

Foremost in this probable game-changing scenario would be the fallout from the email controversy (her using a private email server for official business), and the decision of the Justice Department on whether a felony was committed by her in that regard.

Hillary’s contender, Bernie Sanders, has not left the nomination race yet, and would like to go up to the Democratic

Is Trump about to laugh his way to the White House?

The biggest surprise was not what Trump said, but how his popularity increased with each shocking utterance. The more reckless he became with his rhetoric, the more his supporters loved him

National Convention in July, keeping the race alive, even though the likelihood of his nomination is slim to none. And that is what makes this year’s presidential race more dramatic, apart from the theatrics that Trump puts up daily.

The November election is not just crucial for the two major parties (there will be at least one more -- the Libertarian Party) in the race, but also for the future direction of the US. On one hand is a maverick candidate with no political experience but a lot of machismo and personal wealth, and on the other, is a seasoned politician with more than 25 years of direct and indirect experience of handling state affairs. But therein lies the rub.

What Donald Trump presents before the public is avowed distance from old politics because he was never a part of it. His followers devour his open disgust

for establishment politics, his rejection of political correctness, his ability to trash his opponents with insults, and his disregard for civil discourse.

He tops it all with his remarkable ability to change positions on any issue suiting the flavour of the day. Yet, the great paradox of his candidacy is that, despite his abominable behaviour, he has not only retained his following but has increased it, including those who had rejected his candidacy only months ago.

Nothing succeeds like success, and no Republican worth his salt would like to miss the Trump train.

Now, contrast this to Hillary’s campaign. Less than a year ago, Bernie Sanders was a mere straw in the Democratic presidential nomination field. A lifelong independent, Bernie never had a ghost of a chance of outracing Hillary, let alone getting the Democratic nomination.

A declared socialist, Bernie presented himself not just as an outsider, but a dissident contender seeking to reform the country’s tax system, financial institutions, and health and social welfare to the benefit of the poor.

In a country that is known for being the bastion of capitalism, it was unthinkable that Bernie would turn the democratic nomination race on its head and give Hillary a serious contest with his economic and social ideas.

Even though, to date, Bernie has an insurmountable delegates gap in winning the nomination, his outsized following has caused serious fissure in the Democratic Party itself.

While Trump seems to have brought many of his Republican critics and detractors already under his coat-tail, Hillary is facing an uphill task in bridging the gap between her supporters and Bernie’s.

It is possible that the bridge

REUTERS

between the Bernie and Hillary supporters will be built before the July convention, but the dust may not be settled until there is a closure on the Hillary email controversy, and Bernie calls for unity within the party.

What is still not clear is if even a united Democratic Party will be able to derail the Trump train in the upcoming presidential election. Donald Trump has defied all predictions about his early demise in the nomination race.

He has not proven to be a likeable candidate, nor a trustworthy person.

Unfortunately, the same image dogs Hillary Clinton. So, who will it be? Trump will keep on selling what he sells best: Feeding people’s anxiety and fear, and promising Utopia in his reign while trashing Hillary for her political “mistakes.”

Hillary will fight hard to defend her reputation and promise to be a better leader. Who will people believe? At this time of the game, all we can say is that more drama is to come before the curtains are drawn.

Who knows, a Trump presidency may be the final curtain. l Ziauddin Choudhury has worked in the higher civil service of Bangladesh early in his career, and later for the World Bank in the USA.

22

DT

Opinion

FRIDAY, JUNE 3, 2016

Underestimating the value of women’s work Women’s emancipation is the true test of Asia’s economic miracle

South Asia doesn’t exactly have the best track record when it comes to women and work conditions

McKinsey and Co estimates the value the time women spend on unpaid care work at a staggering $10 trillion a year

n Trini Leung

T

he growth of Asia is such that it has attracted praise, including the sensational “economic miracle.” And the numbers seem to tell the truth: Asia grew at an average of 6% a year between 1990 and 2015, based on data from the International Monetary Fund (IMF).

But this growth has a dark secret: It was built on the backs of poor women labouring under abysmal working conditions for wages which were low by themselves, and were lower compared to men’s. Women had become to multinationals a means to an end, in the words of feminist

Gita Sen. Government and business leaders meeting this week at the World Economic Forum on ASEAN (Association of Southeast Asian Nations), in Malaysia, must get behind policies that spur inclusive economic growth without leaving women behind.

Oxfam’s new report, “Underpaid and undervalued: How inequality defines women’s work in Asia,” recommends two policies that will promote the equality of men and women and help crush economic inequality between the poor and the rich -- adopting the idea of the living wage, and redistributing women’s care work.

A living wage provides for

MEHEDI HASAN

expenses for housing, education, food, transportation, and health -expenses which present minimum wage average rates across Asia barely cover.

The minimum wage has remained dormant all through these years while the cost of living has climbed sharply.

A living wage is adjusted for inflation.

The minimum wage is also blind to disasters, a living wage gives workers the ability to plan for and bounce back from catastrophe.

Governments and business must make the shift from minimum wage to living wage, and offer women (and men) a way out of poverty. Otherwise, as Oxfam’s research has found, women will continue to be poor, however hard they work.

Governments and corporations should also venture into unfamiliar, but not unknown, territory: The economics of care work, or running a household.

Care work covers a range of activities, from cooking to

cleaning, to bringing kids to school and tending small vegetable plots, which economists do not assign an economic value. Care work is taken as a given, as an obligation, as part of the DNA of women.

But this ideological bias has consequences on the lives of poor women: Care work typically adds between two and four hours to a woman’s day, resulting in the so-called women’s double day, or time poverty.

McKinsey and Co estimates the value the time women spend on unpaid care work at a staggering $10 trillion a year.

According to UN Special Rapporteur on Extreme Poverty and Human Rights M Sepulveda Carmona, accessible, gendersensitive public services are “the most direct and effective way to redistribute (the poorest women’s) heavy unpaid care workload, and reduce its drudgery and intensity.”

Governments can impose progressive taxes on corporations and individuals to fund these essential services, which include universal access to education, health, drinking water, and sanitation, according to the Institute of Development Studies.

Investing government resources in the care economy will create more jobs for women, improve their livelihood and even put them in the same economic standing as men, and eventually contribute to inclusive growth.

Only inclusive growth, paired with the tenets of sustainable development, has the potential to lay claim to the aphorism that a rising tide lifts all boats, which stand-alone economic growth has so far proved to be wildly untrue.

In Asia, between 1990 and 2010, the share of income of the bottom 70% of the population has decreased while the top 10% has seen large gains, based on IMF findings.

This is part of a scandalous global pattern of extreme economic inequality where wealth is concentrated in a handful of individuals and poverty in a majority of the world’s population.

To improve the situation of women, businesses need to pay them a living wage, and governments need to circle back, to end it, to where women’s subjugation starts -- the home.

In the two worlds of work and home, women’s emancipation is the test of Asia’s economic miracle. l Trini Leung is the Director General of Oxfam Hong Kong.

DT

23

Opinion

FRIDAY, JUNE 3, 2016

Financial literacy for children Make your children smarter in money matters

It’s never too early to start learning money management

BIGSTOCK

Thankfully, some mobile apps which instill smart money management habits, aimed at kids (and their parents), have come up in several countries

n Sourajit Aiyer

M

ost parents aspire for their children to achieve more than them. One area is better money management. But how do parents ensure that their kids turn out smarter in money management than them?

Today’s children have to understand this skill more than ever for their own good. In this age of rampant consumerism

and peer-group pressure wherein children increasingly want to spend “as they like,” any foolish spending can end up causing strain to the family. Children will also carry forward such habits as they grow up.

Thankfully, some mobile apps which instill smart money management habits, aimed at kids (and their parents), have come up in several countries. Slonkit is one such app that has become immensely popular in India

among children and parents alike.

PlayMoolah is a similar platform that has gained popularity in Singapore. Where these apps differ from Bankaroo, the original child-focused financial literacy app, is their real-life platforms that help teach good money habits in a realistic and practical manner.

For example, Slonkit teamed up with Visa and India-based DCB Bank to provide a real pre-paid reloadable card which the child can use, backed by the mobile app

which the child and his parents use to monitor and manage the spending. Bankaroo, on the other hand, provides just a pretend environment.

What such apps do is “virtualise” the child’s pocket money. The child is the actual user, while the parent is the enabler, as they provide the pocket money in the app. Together, they engage on the app through the spending and saving process.

The app’s platform provides the basics of financial literacy as a foundation. It gives information on various offers on food, shopping, transport, and so on.

By doing so, the child learns the importance of searching for valuefor-money deals, instead of blindly spending on the first option that comes his way.

It also rewards the child for

good spending behaviour. While some parents may say that handing out rewards for good behaviour is not advisable, it is still better than the alternative where children grow up with irresponsible money management habits.

Slonkit controls the risk of spending beyond one’s limits in three ways.

First, the card it provides is prepaid, not on credit; second, it is not linked to the parents’ debit or credit card so that the child does not intentionally use his parents’ money for any foolish spending; and third, since the parent is also part of the mobile app, he or she gets regular alerts whenever the child spends on the card.

The child gets updates on how to better use his money, along with insights on his spending. The card can be used online or in stores, and can be reloaded at an instant.

It also provides the convenience of signing in through social media accounts.

PlayMoolah’s WhyMoolah simulator goes a step further. It includes life-stage decisions till one’s mid-30s, like marriage, first home, and so on. Users learn about budgeting, costing, and managing money for such important lifestage goals.

Such mobile apps give a degree of freedom to the child who wants to spend as he likes, yet provide an institutionalised platform to inculcate some degree of financial responsibility. They provide an excellent platform to develop smart money management habits in children in a controlled, yet practical environment.

Feedback from existing users has been positive -- in terms of how much they have learned about money management by using such platforms.

As such, parents who are nervous about how to inculcate good money management habits in their children can take solace in such utility apps.

They can become a part of the child’s life as he grows up, which should augur well for him as he grows into a financially responsible adult -- way smarter in money habits than his parents ever were. l Sourajit Aiyer has written in over 30 publications globally and is the author of the e-book “Flying with the Winged Elephant: Niche themes that may emerge in India for global businesses.”

This article was previously publishd in Straits Times, Singapore and has been reprinted with the author’s permission.

DT

24 Sport

FRIDAY, JUNE 3, 2016

TOP STORIES

Let’s not crowd Mustafiz so soon

Fizz should go to Sussex, says Hathurusingha n Minhaz Uddin Khan

‘Next few years golden era for Tigers’ Tigers head coach Chandika Hathurusingha believes Bangladesh cricket is on the threshold of greatness. He said the presence of senior players at their prime will only benefit the team in the coming days. PAGE 25

Messi targets drought as Copa kicks off Lionel Messi and Argentina will be targeting the country’s 23-year title drought when the Copa Centenario kicks off today after a troubled build-up marred by corruption allegations which threatened to derail the event. PAGE 26

City sign Guendogan from Dortmund German midfielder Ilkay Guendogan has joined Manchester City from Bundesliga side Borussia Dortmund on a four-year deal.

He is the club’s first signing since they confirmed Spanish coach Pep Guardiola as head coach. PAGE 26

Nolito, Morata fire Spain to easy win European Champions Spain produced a dominant display to thrash South Korea 6-1 in Salzburg, Austria on Wednesday in their penultimate friendly before Euro 2016. Celta Vigo forward Nolito staked a claim for a starting berth in the opening group game. PAGE 28

Mustafizur Rahman receives a cheque from the Satkhira Zila Krira Sangstha in Satkhira yesterday

n Fazley Rabbi Moon “I will tell you about my childhood later. Yo guys, let’s go.”

This is how Bangladesh’s pace sensation Mustafizur Rahman finished an interview with renowned journalist Munni Saha just before he left for Satkhira on Tuesday. Predictably, the video has already gone viral on the internet though the channel has shown the interview a few times.

The whole nation reacted remarkably throughout Mustafizur’s maiden Indian Premier League campaign with Sunrisers Hyderabad, and the madness went unbound when he returned home earlier this week.

The seven-minute interview was a continuation of that craze.

Saha, despite her lack of relevant cricket knowledge, utilised every bit of Mustafizur’s innocence to attract her audience who would easily gobble up any airtime with him. But during the interview, it was Mustafizur who informed her of the most mundane updates about his recent success with the camera running. He looked outright humiliated as these are common knowledge.

When a journalist goes to interview a person, he or she should spend at least some time to research the subject. In this case, asking Mustafizur - “How

long were you there?” or “Is that your team’s first ever win in eight years?” indicated that there was no consideration for a Google search, let alone research.

For the record, he was in India for five days short of two months and the city of Hyderabad has had a team that won the IPL in 2009, called the Deccan Chargers. This current Hyderabad franchise is playing the IPL since 2013.

A journalist as experienced as Saha should have understood Mustafizur’s nervousness in front of the camera. But she hung on to the glow of Mustafizur’s limelight, just as Arif Khan Joy, the Deputy Minister for Youth and Sports, did on Monday evening. Joy, standing next to Mustafizur, took up the duty to receive him at Hazrat Shahjalal International Airport, adorning him with what looked like a royal crown. Joy called him a “Bir”, a valiant.

Now, there would be few to argue that Mustafizur was brilliant at the IPL, but to give him such an honour crossed any line of decency. For starters, he was an important cog of a domestic Twenty20 tournament; there are many valiant individuals in Bangladesh who deserve one-tenth of this attention.

Since Joy is in sports, he can’t be faulted for seeing Mustafizur that way. But the girls who won

COURTESY

the AFC Under-14 Championship twice hardly had any visitors when they arrived home from Tajikistan last month. How many Bangladesh teams come back home with a trophy anyway?

And in this melee, what message is being sent to young Mustafizur? That he will be celebrated after doing well in the IPL though it won’t be happening in the same manner when he wins something for his nation?

This would also be a wrong message to young cricketers across the country who dream of playing for Bangladesh. What if they now think that a berth in the IPL would be enough?

Someone as talented as Mustafizur will now have to be at his best behaviour on every occasion, on and off the field.

His form may waver at times, but with cameras trained on him regularly, Mustafizur will be asked to have his feet on the ground, be modest and take success as it comes constantly. He may falter there at times too, and that would see him being hounded the same way he is being celebrated.

If we are telling this kid to be humble, so should we. Letting him be his own man would certainly free his mind. After all, those in the IPL just called him the man with the beautiful brain.l

Bangladesh head coach Chandika Hathurusingha wants pace sensation Mustafizur Rahman to meet his deal with Sussex, but only if he is fully fit.

Mustafizur, who was expected to join the English county side next Friday for the one-day and Twenty20 competitions, is apparently in two minds after a taxing campaign in the Indian Premier League where he was named the Emerging Player of the season.

However, Hathurusingha is of the opinion that the left-arm paceman should join Sussex as it will not only help him to improve but also aid the Bangladesh team’s prospects before they head there for the 2017 Champions Trophy.

“If you want to improve performance, you have to play in those conditions. You don’t go there, you don’t know. Bangladesh cricket will be benefited if Mustafizur develops quickly and performs well. So if it is not going to harm his health, I think it is a good thing for him to go and play,” Hathurusingha told the media yesterday.

“It is rare opportunity for Bangladesh players to play there. If I can send four players, I will send them all. It is the best way to do it,” he added.

Including the recently concluded IPL, Mustafizur has been sensational in the limited-over formats ever since his international bow but is yet to develop in Tests, considered the pinnacle of cricket.

Hathurusingha expects the southpaw to be a key part of the Bangladesh bowling attack in the longer version but said there are a couple of challenges awaiting him.

According to the former Sri Lankan cricketer, his first challenge will be to develop his intelligence as his “mystery action”, especially the cutters, will be found out by the opponents soon.

“He has played two Test matches and became man of the match in one with four wickets. It is going to be a challenge. He has to be fit, we have to look after him. We all know that his mystery is going to be found out very soon so I am looking forward to his intelligent cricket. We will find ways for him to be competitive. Our challenge is to look after him, develop him and keep him in the pack to play for Bangladesh,” he said.

Mustafizur is currently nursing a right hamstring injury while there is also a slight concern regarding the heel of the same leg. l

25

DT

Sport

FRIDAY, JUNE 3, 2016

‘Next few years golden era for Bangladesh cricket’ n Minhaz Uddin Khan Tigers head coach Chandika Hathurusingha believes Bangladesh cricket is on the threshold of greatness.

The former Sri Lankan cricketer, who returned to Dhaka last Wednesday, said the presence of senior players at their prime will only benefit the team in the coming days.

“I think the next two-three years will be Bangladesh’s golden era. Players of the calibre of Tamim [Iqbal], Shakib [al Hasan], Mashrafe [bin Mortaza], Mushfiqur [Rahim] and [Mahmudullah] Riyad are all at their peak now. This is the time they have to use their experience and consistently perform in international cricket,” Hathurusingha explained to the media at Mirpur’s Sher-e-Bangla National Stadium yesterday.

The 47-year old however, said the next couple of years will also pose a strong test of their credentials as the Tigers will play away

from home more often than not.

“That is going to be an exciting era for Bangladesh cricket as well as challenging because next two years we play more cricket overseas. In my last two years, we played a lot of cricket at home. So, it is going to be a challenge as well,” added Hathurusingha, who recently inked a two-year extension to his contract with the Bangladesh Cricket Board.

“We have not played outside Bangladesh for a long time. It will be a challenge for the team. To win matches we need a good bowling unit to take 20 wickets. That is the biggest challenge I am looking forward to.”

One of the Tigers’ most challenging foreign assignments is likely to come in the shape of the 2017 Champions Trophy where they have been grouped together with hosts England and Trans-Tasman rivals Australia and New Zealand.

Regarding the Champions Trophy grouping, Hathurusingha said, “It is tough because we are playing the host country and then Austral-

ia and New Zealand. They (Australia and New Zealand) are the best, I think [ranked] one and two in ODI cricket. So it is the toughest group we are in.

“We have to prepare thoroughly. We have plans prepared for that.

We are going early to Ireland to be prepared with the condition and playing a tri-nation with Ireland and New Zealand prior to that.”

A lot has been said in recent times regarding the inclusion of Hathurusingha in the national selection process. And Hathurusingha believes the new policy, which is likely to get approved by the board in the next meeting, will make the job easy for him.

“They are going to speak to me in the next couple of days about the plan they have. I think it is a good concept. I will be responsible for the outcome. If I have a say in selection, it will make things easier for everyone - the players as well as the selectors. The communication will be much better,” said Hathurusingha.l

Bangladesh head coach Chandika Hathurusingha addresses the media in Mirpur yesterday BCB

Djokovic escapes disqualification, faces Thiem for final spot n AFP, Paris

Serbia's Novak Djokovic throws his racket during his men's quarter-final against Czech Republic's Tomas Berdych at Roland Garros yesterday AFP

Novak Djokovic reached his 30th Grand Slam semi-final yesterday but his quest for a first French Open title was almost scuppered by disqualification.

The world number one, a threetime runner-up and seeking a maiden Roland Garros crown to complete the career Grand Slam, defeated Czech seventh seed Tomas Berdych 6-3, 7-5, 6-3, claiming a place in an eighth French Open semi-final and sixth in succession.

But the 29-year-old Serb, who will face Dominic Thiem of Austria today for a spot in the final, admitted he was lucky to escape being kicked out of the tournament in the second game of the third set.

Frustrated at missing a break point, Djokovic went to smash his racquet into the ground but it slipped out of his grasp before it flew into the backwall on Philippe Chatrier Court. Had it hit the nearby line judge, who was forced to take evasive action, Djokovic would have been disqualified.

Not surprisingly, he offered a speedy apology to chair umpire Eva Asderaki Moore and escaped

with a warning for racquet abuse.

“I was lucky there,” admitted Djokovic. “I apologised to the people that have been in this particular situation with me and that could have been hurt by my racquet.

“But, you know, it was never the intention. It was just some unfortunate bounce, but fortunate ending of that scenario. That’s all I can say.”

Yesterday’s quarter-final was played out in a damp chill where temperatures nosedived to 12 degrees. But it didn’t stop the Serb from claiming a 24th win in 26 meetings against Berdych and his 11th in a row.

Djokovic raced through the first set with breaks in the seventh and ninth games before stretching out to a 4-2 lead in the second.

Berdych broke for the first time to get to 3-4 but Djokovic restored his advantage in the 12th game for a two sets lead.

The two men exchanged breaks in the first two games of the third before Berdych became angry over the deteriorating wet conditions.

“It’s a circus, just one big circus,” he fumed at tournament referee Wayne McKewen who took the players off for a brief stoppage to allow the rain to pass.l

Bengal Tigers suffer 5-0 loss n Tribune Report Temporary Dutch head coach Lodewijk de Kruif’s second tenure as the Bangladesh tactician got off to the worst possible start as his charges succumbed to a 5-0 thrashing at the hands of Tajikistan in the AFC Asian Cup Qualifiers play-off in Dushanbe yesterday.

The game also marked Mamunul Islam's return to the national side following his suspension.

The hosts went ahead in the 19th minute through forward Jahangir Ergash, who glided past a couple of defenders before placing home.

Ergash made it 2-0 at the halfhour mark with a brilliant goal from an Umer Jaan Saribhov cross.

Just three minutes later, Umer Boyev added another from a corner in the face of some desperate, lastditch defending from the Bangladesh back-line.

The home side went into the break 3-0 ahead.

Four minutes after resumption, Dabrajov scored Tajikistan’s fourth before Umedjav Saribhov completed the rout in the 71st minute.

The Bengal Tigers will face an uphill task in qualifying for the next round when they entertain the Persian Lions in the second leg, scheduled for this Tuesday at Bangabandhu National Stadium. l

DT

26

Sport

FRIDAY, JUNE 3, 2016

COPA AMERICA CENTENARIO USA 2016 FIXTURE Group

A

Group

USA Colombia Costa Rica Paraguay

16

TEAMS

B

Group

Brazil Ecuador Haiti Peru

C

Group

Mexico Uruguay Jamaica Venezuela

10 CONMEBOL 6 CONCACAF region region

368

Players

32

Matches

D

Argentina Chile Panama Bolivia

10

Ticket prices for the final

$135-1,165

Cities

Messi targets drought as Copa Centenario kicks off n AFP, Los Angeles Lionel Messi and Argentina will be targeting the country’s 23-year title drought when the Copa America Centenario kicks off today after a troubled build-up marred by corruption allegations which threatened to derail the event.

One hundred years after Uruguay clinched the inaugu-

aiming to win the country’s first major title since the 1993 Copa America after a series of recent near-misses.

The Argentines lost both the 2014 World Cup final and the 2015 Copa America in Chile.

Messi, due in Spain this week to attend his trial for tax fraud, says it is time Argentina’s talented players delivered.

“It has been a very long time since Argentina has won anything, and this group came very close in the World Cup and at the last Copa America,” he told Sports Illustrated on the eve of the tournament.

“I think we deserve to be champions of an important competition.”

Argentina open their campaign against Chile in Santa Clara next Monday. Panama and Bolivia complete Group D. The United States meanwhile will aim to build on their encouraging performance at the 2014 World Cup, when they reached the knockout round, by progressing from a “Group of Death” which includes Colombia, Costa Rica and Paraguay.

Five-time World Cup winners Brazil will be favored to safely navigate Group B, where they face Ecuador, Haiti and Peru.

The Brazilians open against Ecuador at Pasadena’s Rose Bowl tomorrow - scene of their victory at the 1994 World Cup final. Mexico and Uruguay will be expected to progress from Group C, with Jamaica and Venezuela completing the field. l

ral four-team South American championship in Argentina, 16 teams from across the Americas are gathered in the United States for a special one-off edition of the tournament.

The sleazy background to the competition threatened to take the shine off an event which will bring together some of the world’s best players.

Messi and Argentina will be

GROUP ROUND DATE

MATCH

June 3 June 4

USA v Colombia (A) San Francisco Costa Rica v Paraguay (A) Orlando Haiti v Peru (B) Seattle Brazil v Ecuador (B) Los Angeles Jamaica v Venezuela (C) Chicago Mexico v Uruguay (C) Phoenix Panama v Bolivia (D) Orlando Argentina v Chile (D) San Francisco USA v Costa Rica (A) Chicago Colombia v Paraguay (A) Los Angeles Brazil v Haiti (B) Orlando Ecuador v Peru (B) Phoenix Uruguay v Venezuela (C) Philadelphia Mexico v Jamaica (C) Los Angeles Chile v Bolivia (D) Boston Argentina v Panama (D) Chicago USA v Paraguay (A) Philadelphia Colombia v Costa Rica (A) Houston Ecuador v Haiti (B) New York Brazil v Peru (B) Boston Mexico v Venezuela (C) Houston Uruguay v Jamaica (C) San Francisco Chile v Panama (D) Philadelphia Argentina v Bolivia (D) Seattle

June 5 June 6 June 7 June 8 June 9 June 10 June 11 June 12 June 13 June 14

VENUE

EST

BST

9:30PM 5:00PM 7:30PM 10:00PM 5:00PM 8:00PM 7:00PM 10:00PM 8:00PM 7:30PM 7:30PM 10:00PM 7:30PM 10:00PM 7:00PM 9:30PM 7:00PM 9:00PM 6:30PM 8:30PM 8:00PM 10:00PM 8:00PM 10:00PM

7:30AM 3:00AM 5:30PM 8:00AM 3:00AM 6:00AM 5:00AM 8:00AM 6:00AM 8:30AM 5:30PM 8:00AM 5:30PM 8:00AM 5:00AM 7:30AM 5:00AM 7:00AM 4:30AM 6:30AM 6:00AM 8:00AM 6:00AM 8:00AM

QUARTERFINALS June 16 June 17 June 18

QF1: 1A v 2B QF2: 2A v 1B QF3: 1D v 2C QF4: 2D v 1C

Seattle New York Boston San Francisco

9:30PM 7:30AM 8:00PM 6:00AM 7:00PM 5:00AM 10:00PM 8:00AM

SEMIFINALS June 21 June 22

SF1: WQF1 v WQF3 SF2: WQF2 v WQF4

Houston Chicago

9:00PM 8:00PM

7:00AM 6:00AM

THIRD PLACE June 25

Loser SF1 v Loser SF2

Phoenix

8:00PM

6:00AM

FINAL June 26

Winner SF1 v Winner SF2

New York

8:00PM

6:00AM

* All the matches will be telecast a day later in Bangladesh

In this July 4, 2015 file photo, Argentina's Lionel Messi walks past the Copa America trophy after receiving the silver medal following the final in Santiago, Chile AP

US fans set for football feast n Reuters

United States soccer audiences can turn their attention to the skills of Latin American players this month after a year of watching dozens of FIFA officials from the region parade before U.S. law enforcement officers.

Argentina captain Lionel Messi, Chile playmaker Arturo Vidal and Colombia midfielder James Rodriguez are among the leading players expected to light up the Copa America Centenario from June 3-26 in 10 U.S. cities.

The tournament was organised to mark the 100th anniversary of the Copa America, the world’s oldest continental competition first played in Buenos Aires in 1916. It has been boosted to a 16-team format for the first time with the inclusion of six teams from CONCACAF, which governs soccer in North and Cen-

Latin American soccer officials in the so-called Fifagate scandal is remarkable, though holding it in the United States is less of a surprise.l

tral America and the Caribbean.

That the plan to stage the tournament outside of South America for the first time has survived the massive cull of top

Stadiums hosting the Copa America 2016

The tournament will run from June 3-26 in 10 cities across the United States Group phase

1

Quarter finals

Seattle, WA

CenturyLink Field

67,000 capacity

5

2

Semi finals

Third place

3

Chicago, IL Soldier Field

61,500 capacity

Philadelphia, PA

Gillette Stadium

68,756 capacity

6

Lincoln Financial Field 2 9

NRG Stadium

7

71,054 capacity

8

Glendale, AZ University of Phoenix

63,400 capacity

5

East Rutherford, NJ MetLife Stadium

4

3

Orlando, FL Citrus Bowl

8

68,532 capacity

Houston, TX

4

82,500 capacity

1

10

7

Final

Foxborough, MA

6

9

Pasadena, CA Rose Bowl Stadium

92,542 capacity

61,348 capacity

10 Santa Clara, CA Levi’s Stadium

68,500 capacity

27

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Sport

FRIDAY, JUNE 3, 2016

QUICK BYTES Mohammedan, Usha share spoils

The remainder of the Green Delta Premier Division Hockey League game between Mohammedan Sporting Club and Usha Krira Chakra concluded in a 3-3 draw at Maulana Bhasani National Hockey Stadium yesterday. The tie came to a premature conclusion last Wednesday due to bad light with the score locked at 2-2 in the 50th minute. And yesterday, both the teams scored one apiece in what was billed as a high-voltage match between the two powerhouses of Bangladesh hockey. Old Dhaka outfit Usha took the lead through Aleem Belal but star Mohammedan forward Russel Mahmud Jimmy brought parity just two minutes before the final whistle. Tabletoppers Usha have 16 points from six matches while the Black and Whites have 14 points from the same number of games.

–TRIBUNE REPORT

Tangail district council commissioner Fazlul Rahman Khan distributes certificates among the winners of the ‘Search for the best swimmers in Bangladesh’ contest in Tangail yesterday COURTESY

Argentina top FIFA rankings before Copa Argentina remain top of FIFA’s rankings ahead of Belgium and Colombia with continental championships in Europe and Latin America about to begin. The Centenary Copa America gets underway on Friday in the United States with holders Chile ranked fifth, Brazil seventh and Uruguay ninth. Argentina are also hot favourites with the bookmakers after sending goalscoring trident Lionel Messi, Sergio Aguero and Gonzalo Higuain to the event.

FIFA RANKINGS AS AT JUNE 2: 1. Argentina 2. Belgium

7. Brazil 8. Portugal 9. Uruguay 10. Austria (+1)

3. Colombia (+1) 4. Germany (+1) 5. Chile (-2) 6. Spain

–AFP

ICC chief backs Amir to tour England International Cricket Council chief executive David Richardson expects Pakistan quick bowler Mohammad Amir to tour England next month, saying the former spot-fixer’s return is a “good thing” for the sport.

Amir, 24, featured in two one-day internationals against New Zealand in January and the Pakistan Cricket Board have approached their English counterparts for help in securing a visa for the talented leftarmer. He was given a six-month prison sentence, of which he served half in a UK young offenders’ institute, on charges of conspiracy to accept corrupt payments and conspiracy to cheat at gambling after bowling deliberate no-balls during the Lord’s Test in August 2010.

–AFP

Injury ends Kaka’s Copa dream Brazil’s Copa America injury crisis deepened on Wednesday after veteran striker Kaka withdrew from the squad with a hamstring injury three days before the team’s tournament opener against Ecuador.

The 34-year-old Orlando City attacking midfielder had been looking forward to competing in his first Copa America but saw his dream dashed after suffering an injury at Brazil’s Los Angeles training base.

“Kaka has had discomfort in training and safety will be auditioned MRI, which showed a small problem. Doctors indicate between 15 and 20 days of recovery,” said Brazilian Football Confederation official Gilmar Rinaldi.

–AFP

City sign Guendogan from Dortmund German midfielder Ilkay Guendogan has joined Manchester City from Bundesliga side Borussia Dortmund on a four-year deal, the Premier League club announced yesterday. The 25-year-old, who had a year remaining on his Dortmund contract, is the club’s first signing since they confirmed Spanish coach Pep Guardiola would take over at the Etihad from Manuel Pellegrini prior to the start of next season.

City did not disclose financial details of the deal but British media reported that Guendogan would cost the Premier League club around 20 million pounds ($29 million).

–REUTERS

DAY’S WATCH BASKETBALL SONY SIX

7:00AM NBA Finals: Game 1 Cleveland Cavaliers v Golden State Warriors

CRICKET

STAR SPORTS 1

11:30PM Natwest T20 Blast 2016 Lancashire v Yorkshire

TEN 3 10:30PM Tri-Nation (WI, AUS, SA) 2016 1st ODI West Indies v South Africa

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Sport

FRIDAY, JUNE 3, 2016

Nolito, Morata fire Spain to easy win n Reuters European Champions Spain produced a dominant display to thrash South Korea 6-1 in Salzburg, Austria on Wednesday in their penultimate friendly before Euro 2016.

Celta Vigo forward Nolito staked a claim for a starting berth in the opening group game against the Czech Republic by netting twice after David Silva and Cesc Fabregas had given Spain a two-goal lead around the half hour.

Juventus forward Alvaro Morata also scored twice, either side of Nolito’s sec-

ond-half strike, to round off Spain’s biggest win since they thrashed Tahiti 10-0 in 2013.

Substitute Ju Se-jong got a consolation goal for South Korea.

Spain coach Vicente del Bosque made four changes to the team that comfortably beaten Bosnia 3-1 last Sunday, recalling Iker Casillas, Andres Iniesta, Gerard Pique and Morata.

Silva and Nolito were Spain’s liveliest performers in the first half, and it was the mercurial Manchester City midfielder who opened the scoring with a stunning free kick.l

Messi says ‘knew nothing’ at trial n AFP, Barcelona Argentina football star Lionel Messi said yesterday he trusted his father with his finances and “knew nothing” about how his wealth was managed as he took the stand at his tax fraud trial.

“I was playing football. I had no idea about anything,” the five-time World Player of the Year told the Barcelona court hearing the case.

“I trusted my dad and my lawyers,” the 28-year-old, who wore a black suit and tie, added on the third day of the trial.

Messi and his father Jorge Horacio Messi are accused of using a chain of fake companies in Belize and Uruguay to avoid paying taxes on 4.16 million euros ($4.6 million) of Messi’s income earned

through the sale of his image rights from 2007-09.

The income related to Messi’s image rights that was allegedly hidden and includes endorsement deals with Banco Sabadell, Danone, Adidas, Pepsi-Cola, Procter & Gamble and the Kuwait Food Company.

“All I knew was that we signed agreements with certain sponsors, for ‘X’ amount of money and that I had to do adverts, photos and those things but about the money and where it went I knew nothing,” Messi told the court.

The Barcelona forward and his defence team have long argued that Messi’s father handled the footballer’s finances without reporting to him, and the striker was not aware of any wrongdoing.l

Lionel Messi sits in court with his father Jorge Horacio Messi during their trial for tax fraud in Barcelona yesterday REUTERS

Belgium's Eden Hazard in action with Finland's Joona Toivio (L) and Kari Arkivuo during their friendly game in Brussels, Belgium on Wednesday.

The game ended 1-1 REUTERS

CROSSWORD ACROSS 1 Employer (4) 5 Coarse files (5) 9 Tempt (6) 10 Falsehood (3) 11 Tidy (4) 12 Stratum (5) 14 Kingly (5) 16 Copies (4) 19 Headwear (4) 21 Lustre (5) 24 Got up (5) 27 Tibetan holy man (4) 29 Slender stick (3) 30 Corroded (6) 31 Prophets (5) 32 Consumes (4)

DOWN 1 Curve (4) 2 United (3) 3 Laundry item (6) 4 Location (4) 5 Backslide (7) 6 Arch (3) 7 Filled pastry (3) 8 Liquid part of blood (5) 13 Beer (3) 15 Collects (7) 17 Musical composition (6) 18 Carries (5) 20 Donkey (3) 22 Otherwise (4) 23 Bundles of notes (4) 25 Fish eggs (3) 26 Lyric poem (3) 28 Encountered (3)

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Downtime

FRIDAY, JUNE 3, 2016

CODE-CRACKER How to solve: Each number in our CODECRACKER grid represents a different letter of the alphabet. For example, today 13 represents H so fill H every time the figure 13 appears.

You have two letters in the control grid to start you off. Enter them in the appropriate squares in the main grid, then use your knowledge of words to work out which letters go in the missing squares.

Some letters of the alphabet may not be used.

As you get the letters, fill in the other squares with the same number in the main grid, and the control grid. Check off the list of alphabetical letters as you identify them.

A B C DE FG H I J K L MN O P Q RST UVWXYZ

CALVIN AND HOBBES

SUDOKU How to solve: Fill in the blank spaces with the numbers 1 – 9. Every row, column and 3 x 3 box must contain all nine digits with no number repeating.

PEANUTS

YESTERDAY’S SOLUTIONS CODE-CRACKER

CROSSWORD

DILBERT

SUDOKU

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Showtime

FRIDAY, JUNE 3, 2016

Renaissance and Arnob to perform at charity concert n Showtime Desk Rock band Renaissance and Arnob & Friends are set to perform at a charity concert which aims to raise funds to support marginalised children. The concert titled Orion UTSHO Concert 2016 will be held today at the Krishibid Institute Auditorium, Farmgate at 7:00pm in the capital.

Arnob urged his fans to attend the concert by posting this message on his Facebook: “Please join in to support these kids. Buy the ticket. We will give our best to play and sing for you. Love you all. You guys are my biggest strength.”

UTSHO Bangladesh, a grassroots community-based organisation enabling access to basic human rights for marginalised women and children, has organised the concert. The funds raised from the concert will be used in ensuring modern house facilities and education for the marginalised children they work with. l

Alice Through the Looking Glass is in Dhaka n Showtime Desk Star Cineplex, Bashundhara is releasing Alice Through the Looking Glass today. This fantasy movie has just been released worldwide and has now come to Dhaka.

Alice Through the Looking Glass is a 2016 American fantasy adventure film directed by James Bobin, written by Linda Woolverton and produced by Tim Burton. It is loosely based on Through the Looking-Glass

by Lewis Carroll, and is the sequel to the 2010 film Alice

in Wonderland. The film stars Johnny Depp, Anne Hathaway, Mia Wasikowska, Rhys Ifans, Matt Lucas, Helena Bonham Carter and Sacha Baron Cohen, and features the voices of Stephen Fry, Michael Sheen, Timothy Spall and Alan Rickman in his final film role.

The film tells the story about of how after slipping through a mirror, Alice (Mia Wasikowska) finds herself back in Wonderland with the White Queen (Anne Hathaway), the Cheshire Cat, the White Rabbit, Tweedledee and Tweedledum. Her friends tell her that the Mad Hatter (Johnny

Depp) is in a funk over the loss of his family. Hoping to save his loved ones, Alice steals the Chronosphere from Time (Sacha Baron Cohen) to travel into the past. While there, she encounters the younger Hatter and the evil Red Queen (Helena Bonham Carter).

Alice Through the Looking Glass was released by Walt Disney Pictures on May 27, 2016. It received negative reviews from critics and has grossed over $105 million. l

Taylor Swift and Calvin Harris split n Showtime Desk Taylor Swift and Calvin Harris, who just this time last year went swan-floatie official on Instagram, have broken up, multiple sources confirm.

The pop superstar, 26, and DJ-producer, 32, dated for 15 months.

It allegedly ended last week, another source told E!. “Taylor and Adam [Calvin’s real name] had no big blowout fight, but the romance just was not there anymore for them. Adam is the one that ended it. It was all done in a very mature fashion. Taylor is pretty upset, but they are still in communication. Taylor was there for Adam with his accident and supportive.”

The news comes shortly

after the duo celebrated their one year anniversary with a tropical getaway. The two started dating last March, and over the last year went to awards shows, London, and Coachella together. “I’m in a magical relationship right now,” Swift gushed in Vogue’s April 2016 issue.

On May 20, Harris was involved in a scary car accident in Las Vegas. “She was worried,” another source told Us of Swift, who rushed to his aid. “Then she was relieved he was OK.” Swift and Harris were last photographed driving together in Los Angeles on May 5. Swift has previously been linked to Harry Styles, Jake Gyllenhaal, Joe Jonas and Taylor Lautner. Harris previously dated Rita Ora. l

Bappa sets example

n Rumpa Farzana Zaman Popular singer Bappa Mazumder has set an example for all Bangladeshi musicians. Recently, he performed at a concert in Dhaka, after which he asked Sheik Rana, the lyricist of the famous song “Pori”, to join him on stage.

Then, Bappa handed over the

royalty money for the song to him. It was the second time that Rana received royalty for “Pori” from Bappa and his band.

For a few years now, musicians in Bangladesh have been sound about royalty issues. They have had meetings with companies and with other vendors about this. But the result was never up

Three rock albums released

n Showtime Desk Three brand new rock albums produced by Aajob Records have been released recently. One of the albums, ROCKoholic 3 is the third instalment in a series of mixed albums which this time around features twelve bands from Dhaka and Kolkata. The bands are Nirjhor, Dreek, Ashes, Venomous, Delete, Ghunpoka, Corals, Nxl, Doshomik, Miliputs, Cycle and Mahan with 6 Strings.

Eclipse, the third place titleholder of D’Rock Star, released their debut album Prithibir Prohor while guitarist Sazzad Arefin brought out his debut instrumental album Operation Angry Machine.

The launching of these three albums took place at the EMK Center, Wednesday. Singer Joy Shahriar and Nabid Salehin unveiled the albums with the

presence of the respective bands and musicians. Followed by the launching, the bands also performed songs from their new albums.

Joy Shahriar of Aajob Records promised that “the producing company will bring more such albums out in the future.”

“The record company is on the verge of producing some new albums marking the forthcoming Eid-ul-Fitr,” he added. l

to the mark. Singer Elita Karim talked about musician royalty in various platforms. Bappa Mazumder has also always been an avid spokesperson for musician’s rights in Bangladesh, and has not been one to wait for others to come to a decision. He, along with his band, have been honouring lyricists from 2012, by handing over music royalty to them.

Another similar gesture by Bappa recently got lyricist Shahan Kabandha quite emotional at an event and he expressed his gratitude on social media: “If lyricists receive royalty in this way then they can also have a relaxed life and can be more dedicated towards writing good songs. Most of us are unable to be adequately creative as we are constantly under the pressures of earning a proper income. But why should we? Lyricist also have the right to live a good life if their songs gain popularity. All we need to think about is that to be further inspired. Especially by artists

31

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Showtime

FRIDAY, JUNE 3, 2016

WHAT TO WATCH who are involved in this industry.

Thanks to Bappa Mazumder, Dalchut and Bappa Mazumder and Friends (band) who have taken up such a great initiative to save the creativity of lyricists.”

Lyricist Sheikh Rana also expressed his thoughts: “Royalty is like an honour to the lyricist.

A song is obviously team work.

When any song gets popular the person behind the lyrics also has the right to share the royalty. It’s a healthy practice worldwide.

Thanks to Bappa Mazumder who has taken this issue seriously and has also taken a step forward.

We should not forget that while money isn’t everything, there is no doubt that it helps to make life easy and should be given where it’s due, so that so that you can continue to work and be creative in the field you’re passionate about.”

He also added that royalty should be given, not just to lyricists, but to every musician in the industry. l

Crank: High Voltage HBO, 5:01pm Chelios faces a Chinese mobster who has stolen his nearly indestructible heart and replaced it with a batterypowered ticker that requires regular jolts of electricity to keep working.

Cast: Jason Statham, Amy Smart, Clifton Collins Jr, Efren Ramirez, Bai Ling

A tragic loss n Showtime Desk Popularly known for his role of Manikhchand in the film Baadshah, actor Razzak Khan tragically passed away yesterday.

After suffering a massive heart attack around 12:30am, the actor was rushed to the Holy Family hospital in Bandra and was declared dead on arrival by the doctors.

The legendary actor made his Bollywood debut with Roop Ki Rani Choron Ka Raja back in 1993. Fans enjoyed seeing him in more than 90 films throughout the span of his illustrious career. Back in 2014, he appeared on Kapil Sharma’s show Comedy Nights with Kapil.

His most memorable work includes films like Hello Brother, Joru Ka Ghulam, Kyaa Kool Hain Hum, and many more.

Razzak Khan’s son, Azad Khan, works in Croatia and caught the first flight back home to say his goodbyes. His funeral is scheduled to be held in Mumbai today after 4pm. l Source: The Indian Express

Fast and Furious 6 Movies Now, 9:30pm Hobbs has Dominic and Brian reassemble their crew to take down a team of mercenaries: Dominic unexpectedly gets convoluted also facing his presumed deceased girlfriend, Letty.

Cast: Vin Diesel, Paul Walker, Dwayne Johnson, Jordana Brewster, Michelle Rodriguez, Tyrese Gibson

30 Days of Night Zee Studio, 3:05pm After an Alaskan town is plunged into darkness for a month, it is attacked by a bloodthirsty gang of vampires.

Cast: Josh Hartnett, Melissa George, Danny Huston, Ben Foster, Mark Boone Junior l

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Back Page

FRIDAY, JUNE 3, 2016

LET’S NOT CROWD FIZZ SO SOON PAGE 24

INTEREST RATE CUT ON SAVINGS INSTRUMENTS LIKELY PAGE 12

BAPPA SETS EXAMPLE PAGE 31 Health sector gets 37.75% raise n Abid Azad

HOW THE BUDGET AFFECTS YOU TOYS Price of toys will not increase MI LK

CAMERA Prices of camera and photography related products will remain same

MOTORCYCLE Existing 45% Supplementary Duty is proposed for reduction to 20% for the next two years

Prices of kids’ drawing books, text books to rise n Syed Samiul Basher Anik Parents may have to pay more for imported children’s books as the government has proposed to raise import duty on textbooks and drawing books for primary and secondary students in the FY2016-17.

The import duty was proposed to be raised to 25% from the current 10% to protect the interest of local publishers, stated Finance Minister AMA Muhith in his budget speech yesterday.

Import duty on children’s picture books, drawing books and colouring books was proposed to be raised to 10% from the current 5% from the upcoming fiscal year.

Importers bring in printed magazines, manuals, reference books, English-medium textbooks, novels, storybooks and works of literature for the country’s students. l

MILK Supplementary Duty on stabilizer for dairy products is proposed to be reduced to 10% from existing 20%

COMPUTER Prices of WIFI routers may decrease

TOBACCO Prices of all tobacco products are increasing

TEA Prices of imported tea will increase

CAR Hybrid cars and microbus to enjoy duty concession

GOLD Gold will not be getting cheaper this year

MOBILE SIM Supplementary duty hiked to 5% from existing 3%

JUICE Prices of imported juice will remain same

MOBILE PHONE Prices of mobile devices will remain unchanged

Mobile phone use to get costlier for duty on services BUDGET FY2017 n Ishtiaq Husain Finance Minister AMA Muhith has proposed a 5% supplementary duty (SD) on services provided through mobile phones in the national budget for the 2016-17 fiscal year.

In the FY2015-16, Muhith had placed the same proposal, but later revised it, fixing the SD at 3% after protest from the subscribers’ end.

The proposal drew criticism from the high-ups of mobile phone operators.

“Increasing the supplementary duty from 3% to 5% will put further financial burden on our customers.

Currently a customer has to pay Tk121.75 for Tk100 talk time. The mobile phone industry in Bangla-

desh is highly taxed; taxing it further will disrupt its role in building Digital Bangladesh,” said Mahmud Hossain, chief corporate affairs officer of Grameenphone.

TIM Nurul Kabir, secretary general of the Association of Mobile Telecom Operators of Bangladesh (AMTOB), said: “The telecommunication sector is one of the highest revenue-generating industries in the country. Considering that facts, the government should not impose more duty on it.”

Ekram Kabir, vice-president of communications and corporate responsibility at Robi Axiata Ltd, said: “Bangladesh remains the lowest ARPU (average revenue per user) country in the world. With the increased levy, mobile phone usage cost will increase, which will affect our subscribers. We think the overall revenue generation will decline as voice and data usage will decrease if the tax is increased. We

request the government not to implement this proposal.”

Earlier, at a pre-budget meeting with revenue authorities, AMTOB leaders also urged the National Board of Revenue (NBR) to withdraw value-added tax (VAT) on mobile internet services as well as on modem sales.

Currently, there is a 15% VAT on internet usage and on the sales of internet modems.

“If the government withdraws the VAT, it will not only reduce the cost of internet usage but also significantly improve the volume of internet usage,” said AMTOB Secretary General TIM Nurul Kabir.

The number of active internet subscribers in Bangladesh is 61.3 million as of March 2016, and around 94% of them are mobile internet subscribers, according to Bangladesh Telecommunication Regulatory Commission (BTRC). l

Finance Minister AMA Muhith has proposed to allocate some Tk17,487 crore for the country’s health and family planning sector in the newly proposed national budget for the 2016-17 fiscal year.

The new allocation is around 37.74% higher than the revised FY2015-16 allocation, which is Tk14,811 crore.

However, the FY2016-17 allocation, which is roughly 5.13% of the total budget is 0.47% less than the FY2015-16 allocation.

About making healthcare services more accessible, the finance minister said the government plans to set up more community clinics.

“There are already 13,126 community clinics in place. In order to take health care services to the doorsteps of rural poor and marginalised people, we plan to set up another 235 community clinics in phases.”

He further said: “There is an allegation against pharmaceutical companies that they are somewhat exploiting the benefits that the government have provided to them to encourage local production of medicines. At the same time, people are raising demand for control pricing of medicines. We are aware of these issues and will take necessary actions as per legal provisions.” l

Muhith: Country’s airports being modernised and developed n Ishtiaq Husain Finance Minister AMA Muhith said steps have been taken to develop and modernise airports in Bangladesh, including the three international ones, in consideration of the importance of passenger and cargo transportation in international communication.

Muhith made the disclosure while delivering his budget speech at Jatiya Sangsad yesterday.

The modernisation of Cox’s Bazar airport and upgrades in the safety and security system of all the airports have begun.

Preparatory work on the construction of an international airport, namely Bangabandhu Airport in Madaripur, Dohar or Munshiganj have also started, said Muhith. l

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