Local bankers apprehended that they would suffer more difficulty from the second phase of the global recession likely to hit next year when the banks would face capital shortfall coupled with less income from exports and imports.
   A recent report of US-based high-profile global rating agency has raised questions over the strength of the country’s banking sector.
   The common belief, promoted by the Bangladesh Bank recently, is that the country’s banking sector has enough strength to weather the impact of the global financial crisis that is likely to hit the country next year in its second phase of shocking waves.
   However, the recent report of the US-based rating agency, Fitch, has revealed some grievous weaknesses of the country’s banking sector, raising questions and concern on how the banks would tackle a crisis period without addressing these syndromes.
   Fitch Ratings, one of the three large global credit rating agencies rates 6,000 financial institutions, including some 3,200 banks and 2,400 insurance companies, more than 1,700 corporate and 100 sovereigns as well as public finance, sub-sovereigns and structured finance transactions.
   K Mahmood Sattar, managing director and chief executive officer of City Bank Limited and chairman of the Association of Banks in Bangladesh, said the local commercial banking sectors were still in a vulnerable situation as the exporters were yet to overcome the risk of the global recession.
   ‘We have concerns over raising the capital of the commercial banks and the reduction of the international market demands of the country’s export items in the next calendar,’ he added.
   Sattar also said the local bankers were observing the activities of the small exporters as they would be more vulnerable in the second phase of the global recession.
   ‘The local commercial banks could be fallen in deep trouble, if the small exporters would come down like a house of cards in the global recession.
   Sattar said most of the commercial banks gave the exporters of garment, information technologies and fisheries loans against their imported machineries.
   In this regard, Muhammad Ali, managing director of Shahjalal Islami Bank Limited, told New Age the second phase of global recession might cause harm to the local commercial banks as the country’s export and remittance might be reduced sharply from the beginning of the next year.
   ‘Global recession could affect the country’s commercial banks badly if the government would not take necessary step to help banking sector face the economic meltdown,’ he added.
   Muhammad Ali said the government had already given some relief to the local commercial banks as it had reduced the bank’s corporate tax.
   Syed Abu Naser Bukhtear, Agrani Bank managing director and chief executive officer, told New Age that the commercial banks had some responsibilities about selecting the potential exporters in case of loan disbursement in the wake of global recession.
   ‘Commercial banks will have to reduce their non-performing loan as they would be vulnerable to the second phase of global recession’ he added.

Efforts are needed to include ready made garments in the trade deals like South Asian Free Trade Agreement for reducing country’s huge trade gap with India and China especially when large global retailers are rapidly expanding their business in these countries, a top HSBC banker has said.
   ‘With India we have approximately $2.6 billion trade deficit while with China the deficit is around $2.7 billion. I personally believe that to bridge this trade gap we must make good use of the regional trade agreements such as SAFTA by promoting greater preferential access for our products in other member countries’, Mahbub-ur-Rahman, corporate banking head of HSBC Bangladesh, told a group of reporters.
   He said that innovative supply chain model could also be explored to gain competitive trade advantages.
   For example, Mahbub said, ‘Large global retailers are increasingly expanding their businesses in Asia through opening new outlets. These chains are also big RMG buyers of Bangladesh. It is now important to engage with these buyers to adjudge if a unique supply chain model can be developed taking advantage of the regional proximity.’ He informed that in China, Hong Kong and Macau, Wal Mart has 146, Tesco has 58, Carrefour has 137, Tomy has 29 and M&S has 8 outlets while India Wal Mart has 1, Tomy has 11 and M&S has 12 stores. Tesco and Carrefour are planning to open stores in India, he added.
   Mahbub said RMG export accounts for over 75 per cent of the total exports of the country.
   He said that since HSBC has significant presence in these countries it could bridge buyers and sellers of the country.
   Replying to a question, he said that exporters would have to raise the issue before the government, as the issue of trade gap has to be dealt at state level.
   The HSBC official said the export value of RMG is officially estimated at over US$ 10 billion, but if the retail value of the products is considered Bangladesh actually contributes approximately over US$ 60 billion to the global apparel market.
   ‘It is quite a size. It can not be ignored,’ he said.
   In this regard, Mahbub said that during July-April period of 2008-09 fiscal, 37 per cent of HSBC Commercial Bank’s portfolio was composed of RMG and textile and it could go as high as 45 per cent.
   He said that during the same period, country’s total export was US$ 12.82 billion of which HSBC Bangladesh catered 9 per cent. Of RMG export of US$ 10.13 billion, which is about 79 per cent of total country export, 9 per cent was routed through HSBC Bangladesh.
   The HSBC corporate head said that apart from RMG, Bangladesh is also increasingly marking robust footprints in the non-traditional export sectors.
   Citing cycle industry, he said that half a million bi-cycles were exported from Bangladesh and this number is annually growing at the rate of 12 per cent.
   ‘This has been possible due to persistent efforts of our exporters who have always remained keen to explore new market opportunities and make unique offerings. This is an inspiring success story for all the Bangladeshi businesses aspiring to go international with their products and services,’ Mahbub said.
   He said that his bank recognizes that desire for success is common amongst all our customers, but that success can mean very different things to different businesses.
   ‘At HSBC, we seek to understand customers’ vision and strategic objectives, work with them and facilitate their flight to success leveraging our local market expertise and global capabilities, Mahbub said.
   ‘Our brand campaign has thus been themed as “CMB Success Campaign”, where we have celebrated unique success stories of Bangladesh in the arena of international trade,’ he added.
   HSBC has robust presence in the countries that are major trade partners of Bangladesh, Mahbub said, adding, ‘We are thus well positioned to leverage our global network to create robust linkage between Bangladesh and its global trade partners.’

The Initial Public Offering of the country’s prime cellphone operator, Grameenphone, will increase the supply of good shares, bring in large investment and raise the confidence of the investors, stock market experts said on Saturday.
   They also believe that the IPO will encourage some other big companies to offload their shares, which will reduce the gap between supply and demand for good primary shares and will eventually make the market more stable.
   Talking to BSS, they further said that this kind of IPO would establish strong relation between corporate and public that would ultimately benefit the both sides.
   Grameenphone on Thursday got nod from the Securities and Exchange Commission (SEC) to enter the share market with IPO of Taka over 486 crore, the biggest ever public offer in the country’s share market.
   The investors will have to pay Taka 70 for a share with a face value of Taka 10 as the IPO will be offered with a premium of Taka 60.
   ‘Approval of Grameen IPO will not only help the supply side constraints, it will invite more similar companies getting listed and improve capacity of the local market operators’, Mamun Rashid, a leading banker and financial analyst said.
   Rashid, also the CEO of the US-based Citibank NA in Bangladesh, said the IPO would also ensure more transparency and governance in the market, which in return would make the entire market more attractive’.
   Mamun said the country’s stock market was getting overheated, as some investors were not aware enough in making their investment decision. ‘The corporate governance is also relatively poor when flow of blue chips is far below the demand,’ he added.
   He said big IPO like GP’s one would help shimmer off the market when a good number of investors would shift their investment focus on good primary shares from the overpriced secondary market.
   ‘The GP IPO will certainly bring some good impact on the market, but there is no reason to be over ambitious,’ said Syed Mahbubur Rashid, a share market analyst.
   He pointed out that the mobile phone market is now highly competitive and any company should make innovative offer to have its strong footing at the market and make good profit.
   He admitted that the biggest ever IPO of the country would stable the market, bringing balance in between the demand and supply of primary shares.
   Yawer Sayeed, Managing Director and CEO of a leading asset and investment management company, AIMS of Bangladesh, also expressed high hope on the positive impact of the GP IPO.
   ‘Share investors have been waiting for a long time for a IPO like Grameenphone. This will increase inflow of good primary shares and thus will meet the demand for good primary shares’, Sayeed, also a share analyst said.
   He believes that the IPO would take share market one-step ahead as this would help increase investors’ confidence.
   ‘This IPO will also absorb the pressure of the high demand, which the country’s secondary market has been experiencing for a while in absence of good primary offer,’ he said.
   The other mobile phone operators of the country, however, want to observe the offer of the Grameen phone before making their decision on entering into the share market.
   ‘The five other mobile phone operators of the country are not in a position to enter the share market, but we hope the government will take further steps to create a situation so that they can offer shares like Grameenphone,’ said Zakiul Islam,
   President of Association of Mobile Telecom Operators of Bangladesh.
   Like the analysts, small share investors are also hopeful about the GP IPO.
   ‘We want good primary shares like GP,’ Kazi Razwan Faysal, a share investor said. Faysal, who also works at the research department of an investment company, said the country’s share market would really be a strong one if some other company like Grameen Phone would offer their shares.

India has allowed the export of 900,000 tonnes of wheat by state-run firms and 650,000 tonnes of wheat products by private trade as monsoon rains revived after a dry spell.
   The government rejected demands of an export subsidy, making shipments viable only to neighbouring Bangladesh, traders said.
   The Directorate General of Foreign Trade, an arm of the commerce ministry, said late on Friday that export of the grain has been allowed up to March next year through MMTC Ltd, STC Ltd and PEC Ltd.
   One trader with an international firm said Indian wheat would cost more than $240 a tonne in Southeast Asia and the Middle East, or $20-$30 more than Black Sea and U.S. wheat.
   ‘The price does not favour exports without subsidy. Export is possible only to neighbouring Bangladesh, not beyond,’ said a Mumbai-based trader working with an international company.
   An official of the Roller Flour Millers Federation of India said the export of wheat products was viable but the government had to give details of how it would monitor exports. Analysts said the move had been anticipated by the market as a panel of federal ministers decided early this year to allow exports of two million tonnes of wheat and wheat products.
   India has accumulated a huge surplus of wheat after banning exports two years ago. Soaring stocks after a bumper harvest encouraged the government to say earlier this year that exports would eventually be allowed.

Chittagong Chamber of Commerce and Industry on Saturday decided to form a committee to monitor prices of essential commodities during the month of Ramadan.
   ‘We should form a committee and initiate monitoring the market one week ahead of Ramadan,’ said the CCCI president, MA Latif, while presiding over a meeting with the importers.
   CCCI senior vice-president MA Salam, vice-president SM Shafiul Hoque, convener of Khatunganj Merchants’ Association Mohammed Shamsuddoha, chairman of Mashud and Brothers’ Abul Bashar Chowdhury, director of Bangal Traders MA Maleque and former CCCI director Nurul Alam addressed the meeting held at the CCCI auditorium in the afternoon.
   The CCCI president said, ‘Prices of essential commodities are curtailed in different countries of the world during any religious occasion, but unfortunately the situation is quite opposite in our country.’
   ‘The government or any other agency alone will not be able to keep the prices tolerable,’ he said, urging the business people to shun the tendency of making a quick buck seizing the opportunity of increased demand during Ramadan.
   The importers, however, shifted the responsibilities of price hike on to the retailers saying a huge gap persisted between the wholesale and retail prices during Ramadan. They said the wholesalers did not make any extra profit targeting Ramadan. But, the retailers want to keep a huge margin during the period.
   They also said sometimes price of any specific commodity shot up due to short supply in comparison with the demand adding that unusual increase in the demand of few items caused the short supply.
   They also demanded that the government should lift the embargo on plying of trucks on the city roads during Ramadan. Otherwise, they believe, the prices would mark an abnormal increase if any item fall short of supply.

India plans to raise 18.54 billion rupees ($386 million) via sale of shares in two state-owned companies in the current fiscal year, the government said on Friday.
   Namo Narayan Meena, a junior finance minister, told parliament the government would sell a portion of its stake in power producer NHPC Ltd and explorer Oil India Ltd.
   ‘The public offering of NHPC Ltd and Oil India Ltd are likely to be completed in the current financial year,’ he said.
   On Thursday, the finance ministry said in a review of the economy India needed to raise 250 billion rupees every year from divestments and called for selling a minimum of 10 per cent equity to the public in all unlisted state companies.
   An updated budget for the fiscal year 2009/10 ending March scheduled on Monday is expected to announce detailed divestment plans.
   Meena said a public offering of Rail India Technical and Economic Services Ltd, an engineering, consultancy and project management company, has been deferred due to change in its capital requirement.

Seven Rings Cement has started export to West Bengal in India. In the previous years the cement brand was exporting products to different parts of India.
   Initially, eight thousand bags of cement have been exported, a news release said.
   Seven Rings Cement chief executive officer Sheikh Raihan Ahmed, general manager (marketing) Asadul Haque Sufyani and assistant general manager (business development and export) MS Mojibur Rahman were present in the unloading function held recently.
   Along with the Seven Rings Cement team, high officials from Indian customs, CIWTC representatives and West Bengal cement traders were also present, the release added.

Golam Mustafa, general manager (Tea Estates) MM Ispahani Limited, has been elected uncontested as a director of National Tea Company Limited.
   NTCL shareholders elected him at the AGM held in Dhaka recently, a news release said.
   Mustafa started his career with James Finlay (UK) Ltd in early 1975 and subsequently joined MM Ispahani Limited as a senior manager and later promoted to general manager.
   Mustafa attended various management training courses at home and abroad. A widely travelled person Golam Mustafa is associated with lot of social organisations, the release added.

Galileo Bangladesh Ltd has become the title sponsor of the three-day ‘Galileo Chittagong Travel Mart 2009’ which will be held in Chittagong from July 30.
   Galileo Bangladesh general manager Tofael lbna Solaiman and Bangladesh Monitor executive director Farhad Kamal signed a memorandum of understanding in this regard at the latter’s office in Dhaka on Thursday.
   Galileo Bangladesh head of subscriber services Sharif U Chowdhury was also present on the occasion, a news release said.
   Airlines, tour operators, travel agents, hotels resorts and organisations, at home and abroad, related with the tourism industry will take part in the mart which will be open from 10:00am to 8:00pm on the three days.

The dollar climbed against the euro Friday after eurozone retail figures slipped back into a rut and as fresh worries about the health of the US economy supported the ‘safe-haven’ greenback.
   In late afternoon trading here, the European single currency weakened to 1.3987 dollars from 1.3997 dollars in New York late on Thursday.
   Against the Japanese currency, the dollar also edged up to 96.00 yen from 95.94 yen on Thursday while the euro rose to 134.44 yen from 134.30 previously.
   Trading activity was limited however because US currency markets were closed for a public holiday ahead of the July 4 Independence Day celebrations.
    ‘The June US jobs report provoked disappointment and a subsequent sell-off in risk assets,’ said Mitul Kotecha, an analyst with French bank Calyon. referring to weaker-than-expected unemployment data released on Thursday.
   Investors bought the dollar after US job losses surged to 467,000 in June, lifting the unemployment rate to a 26-year high of 9.5 per cent.
   The greenback is seen as a relatively safe bet in times of turmoil.
   The disappointing data suggest ‘unemployment will continue to rise, creating a mood of distrust over the green shoots of recovery,’ said Daisuke Uno, a market strategist at Sumitomo Mitsui Banking Corp.
   The jobs report, seen as one of the best indicators of economic momentum, was worse than market forecasts for 365,000 job losses in June. The previous month, the number of layoffs had fallen to 322,000.
   Adding to the disappointing economic outlook, official EU data showed retailers in the 16 nations using the euro saw their sales fall in May, renewing a slump that was broken in April by a short-lived improvement.
   The volume of retail sales in the eurozone dipped 0.4 per cent in May over one month and 3.3 per cent over one year, the Eurostat data agency said.
   The result wiped out a minor improvement booked in April when retail sales finally rose after months of steady decline, edging up 0.1 per cent over one month and reducing the fall over one year to 2.5 per cent.
   The retail report balanced out more optimistic figures from Europe last week that showed business and consumer confidence in the 16-member eurozone jumped to a six-month high in May while German unemployment declined.
   On Thursday, the European Central Bank kept its main interest rate steady at a record low of 1.0 per cent as ECB chief Jean-Claude Trichet downplayed the threat of deflation in the eurozone in the face of a fall in prices.
   In trading here on Friday, the euro was changing hands at 1.3987 dollars against 1.3997 dollars late on Thursday, 134.44 yen (134.30), 0.8573 pounds (0.8538) and 1.5208 Swiss francs (1.5182).
   The dollar stood at 96.00 yen (95.94) and 1.0860 Swiss francs (1.0844).
   The pound was at 1.6336 dollars (1.6390).
   On the London Bullion Market, the price of gold rose to 932.50 dollars an ounce at the fixing from 929.50 dollars an ounce late on Thursday.

India’s stock market will eye reforms to be announced by the Congress-led government in the federal budget next Monday for future trends, dealers said Friday.
   Investors will also track first quarter earnings data from Indian firms, for the three months ended June, which starts with software giant Infosys Technologies on July 10.
   On Thursday, India’s finance ministry presented the Economic Survey that forecast economic growth of more than 7.0 per cent this year.
   The government said the expansion would rely on a recovery in the United States and the global economy as a whole.
   India’s 1.2 trillion dollar economy expanded 6.7 per cent in the year ended March 31, the slowest rate since 2003.
   The budget is expected to focus on boosting growth — even at the risk of a wider fiscal deficit.
   For the week to July 3, the benchmark 30-share Sensex index rose one per cent or 148.41 points to 14,913.05. Investors have bet on reforms to help spur investments in the financial and infrastructure sectors.
   They expect aid for exporters and a further lowering of interest rates.
   This week overseas funds bought equities worth 387 million rupees and local institutional funds also bought sporadically, which led to a small recovery.
   At its recent intra-day peak of 15,600 points, the Sensex was up more than 90 per cent from a low of 8,047.17 in early March, before slipping on profit taking.
   Foreign funds have bought equities worth 5.19 billion dollars so far this year after selling shares worth 6.25 billion dollars during the same period last year.

The dollar’s status as the top global reserve currency is unlikely to be mentioned explicitly in the final communiqué at next week’s Group of Eight summit, a European G8 source involved in preparations for the meeting said on Friday.
   ‘It is expected to be mentioned and discussed remotely. But the discussions have not yet reached the level of putting it in writing in the communiques,’ the source, who asked not to be identified, told Reuters.
   G8 sources said earlier this week that China had asked for discussion of proposals for a new global reserve currency at next week’s G8 meeting in Italy.
   One source said Beijing made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L’Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt.
   This forum, the so-called ‘G14,’ meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement.
   ‘China can bring this up and they have said they would like to mention it,’ the European G8 source told Reuters on Friday.
   ‘There may be some vague or ambiguous wording in the statement on the general issue of reserve currencies and SDRs (special drawing rights). But this (China’s request) will be something more for the G20,’ he added.
   The source was referring to the meeting of the world’s Group of 20 industrialized and developing countries in the US city of Pittsburgh in September.
   Canadian Finance Minister Jim Flaherty told reporters on Friday that he did not know whether the dollar’s role as the top global reserve currency would be included in the final G8 communique.
   He also defended the US dollar’s role as the global reserve currency of choice, and said it had been a stabilizing force during the current financial crisis.
   The reserve currency debate centers on proposals by some emerging powers that an alternative should be found to the dollar as the main global reserve currency, to reflect the shifting balance of power in the globalized economy.
   China has been particularly vocal. It holds more US Treasury debt than any other country and has expressed fears that Washington’s huge spending on economic stimulus programs could spark inflation, hurting the value of China’s dollar-denominated reserves.

Sri Lanka’s central bank chief said Saturday that the island could live without a major IMF bailout that had been delayed by the final stages of the government’s fight with Tamil Tiger rebels.
   The government had requested the 1.9-billion-dollar loan in March to help stave off its first balance of payments deficit in four years after foreign currency reserves fell to around six weeks’ worth of imports.
   The loan was delayed under political pressure from the United States, Britain and other countries who felt the government was not doing enough to avoid civilian casualties as it closed in on the remnants of the once-powerful Tamil Tiger army.
   Central Bank of Sri Lanka Governor Nivard Cabraal said the final defeat of the Tigers had helped alleviate the island’s balance of payments concerns.
   ‘Things are looking good after the war. The urgency for an IMF loan is not there anymore,’ Cabraal told AFP.
   ‘We have over 1.6 billion dollars in reserves, enough to pay for over two months of imports. And the figures are steadily climbing,’ Cabraal said.
   Foreign reserves, which fell by more than two thirds when the central bank sold dollars to defend the local rupee last year, had climbed to 1.3 billion dollars by the end of April, according to central bank figures.
   Cabraal said inflows had come from higher remittances, donor funds and foreign investors buying rupee-denominated treasury bills and bonds. The bank has also raised cash by selling dollar debt.
   But he said some investors would still be more comfortable with an IMF loan.
   ‘If the IMF funds come, it will give us a comfortable buffer stock. I hope we get it. But we are otherwise in a comfortable position right now,’ he said.
   The IMF on Thursday said Sri Lanka’s loan was still pending before the executive board which has yet to set a date to consider the application.
   ‘Discussions are continuing,’ IMF spokesperson Caroline Atkinson told reporters in Washington, adding: ‘We don’t have a date for an executive board meeting at present on Sri Lanka.’
   Sri Lanka crushed the militant Tamil Tigers—who had been fighting to carve out a separate state for minority Tamils since 1972 — in mid-May by killing the leadership of the rebels, including supremo Velupillai Prabhakaran.

World commodity markets were rocked this week by weak data in the United States, a leading consumer of raw materials, which cast doubt on the prospect of a global economic recovery.
   Data released Thursday showed US job losses surged to 467,000 in June, pushing the unemployment rate to a 26-year high of 9.5 per cent.
   Since the recession began in the United States in December 2007, the world’s biggest energy user has lost 6.5 million jobs and the jobless rate has risen 4.6 per centage points.
   Crude oil hit eight-month peaks on Tuesday, before tumbling lower as weak US jobs data quashed hopes of a speedy economic recovery.
   The market was also pulled lower by the strengthening greenback which makes dollar-priced commodities — like oil — more expensive for buyers using weaker currencies, which in turn dampens demand and pulls prices lower.
   The dollar rose in value as fresh worries about the health of the US economy supported the ‘safe-haven’ greenback, dealers said.
   Oil prices are likely to remain under pressure until economic data point to a firm turnaround in US fortunes, which will in turn lead to stronger energy demand, analysts said.
   Meanwhile oil market officials here launched a probe into an alleged rogue trader who earlier this week helped push prices to eight-month peaks, costing his company nearly 10 million dollars (7.15 million euros).
   ICE Futures Europe, London’s oil market, is investigating Tuesday’s unauthorised trade, after which crude futures surged above 73 dollars a barrel.
   An oil brokerage, PVM Oil Associates, said on Friday that it was investigating suspected unauthorised trading within its company.
   PVM was forced to unwind the series of unauthorised trades — a move that in turn contributed to a sharp drop in prices, analysts said.
   In early morning trade on Tuesday, London’s Brent oil had spiked to 73.50 dollars — the highest level so far this year and an eight-month peak.
   New York crude had soared early Tuesday to 73.38 dollars — which was also last seen in October.
   Oil prices had also jumped at the start of the week on tensions in crude producing Nigeria and China’s reported plans to rapidly increase its strategic crude oil reserves.
   By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in August dropped to 66.26 dollars a barrel from 69.29 dollars a barrel one week earlier.
   On London’s InterContinental Exchange (ICE), Brent North Sea crude for August delivery slid to 66.13 dollars from 68.92 dollars a week earlier.
   Prices mostly fell in line with the stronger dollar ahead of the US Independence Day holiday weekend.
   By late Friday on the London Bullion Market, gold dipped to 932.50 dollars an ounce from 942 dollars a week earlier.
   Silver fell to 13.44 dollars an ounce from 14.26 dollars.
   On the London Platinum and Palladium Market, platinum sank to 1,185 dollars an ounce at the late fixing on Friday from 1,203 dollars.
   Palladium firmed to 250 dollars an ounce from 245 dollars.
   Base metals prices declined, with the exception of nickel which found support on supply-side mining problems in Australia.
    ‘Prices were lower... as weaker-than-expected US employment data weighed on general market sentiment,’ said Barclays Capital analysts.
   By Friday on the London Metal Exchange, copper for delivery in three months dipped to 5,005 dollars a tonne from 5,115 dollars a week earlier.
   Malaysian rubber prices firmed after a decision by the world’s top three producers to cut their exports in a bid to boost the market, dealers said.
   Thailand and Indonesia agreed on Wednesday to remove about 900,000 tonnes (900 million kilos) of rubber from the export market this year.
   On Friday, the Malaysian Rubber Board’s benchmark SMR20 rose to 160.95 US cents per kilo, from 159.80 cents last week.

Troubled British Airways said Friday that it would slash capital expenditure by one fifth in the current financial year after posting another sharp drop in monthly passenger numbers.
   ‘Market conditions continue to be very challenging with trading at levels well below last year,’ the struggling airline said in a trading update.
   ‘In response to the challenging economic conditions British Airways has reviewed its business plan.
   ‘Forecast capital expenditure has been reduced from 725 million pounds to 580 million pounds for 2009-2010 and is likely to remain at that level in 2010-2011.’
   The airline also announced it carried 2.93 million passengers last month, 4.9 per cent fewer than in June 2008. And BA repeated that it wanted to slash 3,700 jobs in the current financial year, which runs until March 2010. It has already axed 2,500 jobs worldwide over the past year.
   BA also revealed that it would delay the delivery of its fleet of Airbus A380 superjumbos and announced more reductions to its summer 2009 and winter 2009-2010 flight schedules.
   ‘The delivery schedule for the first six Airbus A380 aircraft has been extended by an average of five months with the first delivery still due in 2012,’ the carrier said.
   ‘The schedule for the remaining six A380s has been extended by an average of two years with the final aircraft arriving in 2016.’
   In May, BA had reported an annual loss of 375 million pounds, blamed on plummeting demand for tickets as well as high fuel costs.
   After diving into a financial loss, BA asked staff to work for free, while promising that chief executive Willie Walsh and finance director Keith Williams would forgo their July salaries.

The voyage of RAK Pharmaceuticals Pvt Ltd began with launching of 13 products. The launching ceremony was held in a city hotel on Friday.
   Health minister AFM Ruhal Haque was present as chief guest, a news release said.
   RAK Pharmaceuticals chairman Khater Massaad and chief executive officer AHM Zaker, and Bangladesh Association of Pharmaceuticals advisers Mizanur Rahman Sinha and Professor ANM Zaher spoke on the occasion.
   RAK Pharmaceuticals factory is situated in Sripur of Gazipur with total area of 5.3 acres. The company plans to market 13 more products soon.
   With the slogan ‘Towards Better Life,’ the company will ensure best quality of products. All the raw materials are imported from FDA and WHO-accredited companies of Europe, USA and Asia, the release added.

First Security Islami Bank held its half-yearly managers’ conference in a city hotel on Saturday.
   FSIB managing director AAM Zakaria presided over the conference, a news release said
   Deputy managing directors Abdul Quddus and Md Sayedul Hasan, and head of the branches and executives of head office attended the conference.
   The conference reviewed the operational performance of individual branches and divisions of the head office for the period from January to June.
   The position of deposits, investment and recovery against classified loans, export and import business and profit and loss were also discussed in details.
   The managing director emphasised on recovery of classified loans, extending investment to SME, agriculture sector and women enterprises.