SHORT NOTE

CAMEL Rating System

The CAMEL Rating System is an international rating system that bank regulators use in evaluating
the overall financial performance of banks and financial institutions. CAMEL stands for C-Capital,
A-Assets, M-Management, E-Profits, L-Liquidity. The CAMEL rating system is adopted in the
United States; financial institutions are evaluated based on the five parameters listed above in
addition to the Sensitivity of these financial institutions. The rating system is on a scale of one to
five, with one being the best rating and five being the worst rating. The strength of the CAMEL
lies in its ability to identify financial institutions that will survive and those that will fail. The
concept was initially adopted in 1979 by the Federal Financial Institutions Examination Council
(FFIEC) under the name Uniform Financial Institutions Rating System (UFIRS).

Alternative Credit Scoring

Alternative Credit Scoring refers to the use of data from digital platforms and applications on
consumer behavior for credit risk assessment. In the past, credit bureaus were the sole source of
consumer credit information, which lending institutions use to reduce bad Debt and market risk. It
demonstrates the potential strength of combining data from multiple sources, like rent, utility,
cable and/or cell phones payments, checking account data, shopping history, property record, e-
commerce, social media usage etc.

It is based on three factors: ability, stability, willingness. lender use applicants social and digital
data to ascertain above three factors to ensure complete payment. The biggest advantage to
alternative credit scoring is that more borrowers can qualify for loans. For young individuals with
no credit history or adults with thin or state traditional credit scores, in particular, this could help
them qualify for loans better terms. Other benefits like improved assessment, increased market
reach, enhanced customer experience, better deals for exiting borrowers. It has drawback is
concern over privacy. Some of the information is to lenders, not every borrower wants to share
details about their shopping habits and occupation history when applying for a loan. It is already a
well-accepted model in the US and has helped both finch-powered lenders and new borrowers a
lot by making credit accessible.

Real Time Gross Settlement (RTGS)

Real-Time Gross Settlement (RTGS) is a real-time interbank large value electronic funds transfer
mechanism for both local and foreign currency transactions operated and organized by a country’s
central bank. Participating banks will be able to transfer funds on 'real time' and on 'gross' basis.
Settlement in real-time, it means the settlement happens as soon as it is received. RTGS does not
require an actual physical exchange of funds. A central bank will often adjust the accounts of the
sending and receiving bank in electronic form. For example, sender Bank A's balance will be
reduced by Taka 1 Crore, while recipient institution Bank B’s balance will be increased by Taka
1 crore. RTGS went live on October 29, 2015 in Bangladesh.
Benefits of RTGS:
 Safe and secure- As RTGS is maintained by the central bank of the country, it is a risk-
free method of funds.
 Speed- Since transactions are carried out on a real-time basis, there is no room for delay.
 Wider boundaries – There are no geographical limitations to use RTGS.
 Convenient - Transfer of funds from home or office.
Threats to RTGS systems:
 Data corruption.
 Cyber-attacks.
 Unavailability of staff
 Component malfunction.

Shadow Banking System

Shadow banking is a term used to describe bank-like activities that take place outside the
traditional banking sector. It is now commonly referred to internationally as non-bank financial
intermediation or market-based finance. Shadow bank lending has a similar function to traditional
bank lending.

In traditional lending, the volume of lending by a bank is linked to the volume of deposits the bank
receives and what it can borrow on the markets. Shadow banking works on the same principle. So,
for example, an investment fund takes in money from investors, issuing shares in the fund in return.
In order to earn a return on the investment for its investors the fund uses this money to buy
securities. Just as the bank acts as the "middleman" between savers and borrowers to earn a
specified interest rate, the investment fund acts as the channel linking investors and
countries/companies to earn an investment return. By raising funds from investors and then lending
this money to countries/companies, shadow banking entities act like banks.

An advantage to shadow banking is that it reduces the dependency on traditional banks as a source
of credit. This is a positive benefit for the economy because it acts as an additional source of
lending, and provides diversification in the financial system. On the other hand, there is the risk
that shadow banking can contribute to too much lending in the economy. This has the potential to
lead to a harmful downturn.

Credit information bureau (CIB)

Credit information bureau (CIB) was set up in Bangladesh Bank on 18 August, 1992 with the
objective of minimizing the extent of default loans. CIB has been providing its online services
since July, 2011. The new CIB online solution developed by BB's internal resources, started its
live operation of highly sophisticated ICT facilities the performance of the CIB services has been
improved significantly in terms of efficiency and quality. Its Mission is Formulating Monetary and
Credit Policies, Managing Currency Issue and Regulating Payment System, Managing Foreign
Exchange Reserves and Regulating the Foreign Exchange Market.
Functions:
 Collection of credit information having outstanding balance of 1tk and above from all
scheduled banks and non-bank financial institutions.
 Prepare a database after validating and processing of that credit information.
 Update credit information of borrowers according to the demand by Bank and NBFIs.
 Correct credit information of borrowers according to the demand by Banks and NBFIs.
 Provide credit information to the national parliament, different ministries, different
government bodies and different departments of BB.

Whistle blowing
Whistle blowing is the act of drawing public attention, or the attention of an authority figure, to
perceived wrongdoing, misconduct, unethical activity within public, private or third-sector
organizations. Corruption, fraud, bullying, health and safety violation, cover-ups and
discrimination are common activities highlighted by whistle blowers.

A whistle blower is anyone who has and reports insider knowledge of illegal activities occurring
in an organization. Whistle blowers can be employees, suppliers, contractors, clients, or any
individual who becomes aware of illegal business activities. Whistle blower, an individual who,
without authorization, reveals private or classified information about an organization, usually
related to wrongdoing or misconduct. Whistle blowers generally state that such actions are
motivated by a commitment to the public interest.

Intellectual Property Rights (IPRs)

Intellectual Property Rights (IPRs) are legal rights that provide creators protection for original
works, inventions, appearance of products, scientific developments and so on. IPR has a great
potential to turn an innovation into services and products which can be commercially profitable
and viable. Apart from this, IPR helps in boosting up business growth and enhancing business
value with greater export opportunities.

In Bangladesh, five types of intellectual property rights are apparent. These are trademark, patent,
industrial design, copyright, and geographical indication. Trademark represents recognizable sign
or symbol for company's product. Patent is an exclusive right to use or sell invention through
government authority. Industrial design denotes the ornamental aspect of an article. Copyright
demonstrates exclusive right to publish original pieces of work and Geographical Indicators (GI)
is a sign used on products that have specific geographical origin.

Recently, Bangladesh Cabinet approved a patent bill 2021 to bring the country's IP protection in
compliance with its obligations before World Trade Organization (WTO) and the bill awaits
parliamentary approval. Bangladesh has now got the ownership of a total of 11 GI products where
no other country or individual in the world can claim the ownership of these nine products.
Lately, China has strengthened the protection of intellectual property rights for upcoming Beijing
2022 winter Olympics aiming to attract the protection of Olympic symbols.
 Bangladesh Financial Intelligence Unit (BFIU)
Bangladesh Financial Intelligence Unit (BFIU) is the central agency of Bangladesh responsible for
analyzing Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs) &
information related to money laundering (ML) /financing of terrorism (TF) received from
reporting agencies & other sources and disseminating information/intelligence thereon to relevant
law enforcement agencies which works under Bangladesh bank. BFIU was established in June
2002, in Bangladesh Bank (Central bank of Bangladesh) named as 'Anti Money Laundering
Department'. To enforce and ensure the operational independence of FIU, Anti Money Laundering
Department has been transformed as the Bangladesh Financial Intelligence Unit (BFIU) in 25
January, 2012 under the provision of Money Laundering Prevention Act, 2012 and has been
bestowed with operational independence. In 2016 Bangladesh Bank confirmed the unit has been
made autonomous.

The main objective of the BFIU is to establish an effective system/robust financial System for
prevention of/ deterring money laundering, combating financing of terrorism and proliferation of
weapons of mass destruction.

The Financial Times Stock Exchange (FTSE)

The Financial Times Stock Exchange (FTSE) Russell Group is an organization owned by the
London Stock Exchange (LSE). It specialized in Managing Stock Exchange and creating indices.
An Index is usually made up of a range of company Shares, or Stocks and represent the
performance of particular market. It reflects the ups and down of each company’s Share prices.
In the UK, The FTSE 100 is probably the most well Known index. It Measures the performance
of the 100 largest companies traded on the LSE. There are a variety of other indices though. There
also the FTSE 250 which makes up the 250 next biggest Companies. These companies often carry
out more of their business in UK compared with these on the FTSE 100, which often earn more of
their revenue overseas. FTSE Russell's most familiar indexes are FTSE 100, FTSE 250, FTSE 350,
and the FTSE All-Share.

Taka Bond
After launching Bangla Bond in London in 2019, the International Finance Corporation (IFC) has
now taken an initiative to release Taka Bond in Bangladesh with a view to collecting the money
to invest in various local industries. The IFC plans to collect the bond money through releasing
initial public offering (IPO) in the country’s stock markets.

According to reports, the IFC first collected $9.5 million at 6.03 per cent interest and then another
$10 million at 7.10 per cent interest. Foreign institutional investors poured money into the bond
through Bank of America and Standard Chartered. The main facility of the bond was that payment
of capital and interest money could be made in local currencies. The Economic Relations Division
(ERD) gave its primary approval to the IFC’s Taka Bond on 17 October,2021.
Once the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC)
approve, the IFC’s Taka Bond will now take a final form. However, IFC is yet to determine how
much money will be collected from releasing the bond. The coupon rate for investors and the
interest on financing has also not been decided as yet. PRAN- RFL group received Taka 800
million in at 9.42 percent interest with a term ending in July 2022 and Taka 800 million in at
interest at 11.5 percent interest with a term ending in February 2025. Though they are paying
interest at a rate higher than the Bank rate, they are not worried about it because it is receiving
finance for 5-6 years’ term thorough taka bond.

Digital Mapping
Digital mapping also known as digital cartography has been introduced to civil world at 1960.
Though it was used earlier for GIS research purpose but nowadays it has become a handy tool for
maximizing the effectiveness of our daily life. By definition, it is an electronic map, a collective
form of digital information of graphic elements that is performed by some electronic interface
typically in a computer system. It collects data from satellite images as well as street level
information. Google map is the lively example of digital map.

One can get the advantage from using digital map only if he can afford a smartphone with internet
connection. By using it one can find one’s destination with proper geographical and visual details
within a short time. It makes someone confident and save lot of time. Moreover, it is scalable,
more accurate and always up-to-date. Thus, we do not need to buy a paper based outdated map
from which we can be misguided. We are optimistic that, in near future, digital map will work in
offline and that would be a new dimension of technological achievement in digital mapping.

Bangladesh Automated Clearing House

Bangladesh Automated clearing house, the first ever electronic clearing house of Bangladesh, has
two components-the Automated Cheque Processing System (ACPS) and the electronic funds
transfer (EFT). Both the systems operate in batch processing mode-transactions received from the
banks during the day are processed at a prefixed time and settled through a single multilateral
netting figure on each individual bank's respective books main tend with the Bangladesh Bank.

A state of the art data center(DC) and a disaster recovery site(DRS) have been established
comprising of most modern software and hardware for dealing with the operations of BACH. A
Virtual Private Network (VPN) has been created between the participating commercial banks and
Data Center (DC) & Disaster Recovery Site (DRS) for communicating necessary information
related to BACH. Digital Certificate has been formulated for the first time in Bangladesh for
secured data communication.

The use of the BACH to facilitate electronic transfers of money has also increased the efficiency
and timeliness of government and business transactions.
 Trade and Investment Framework Agreements (TIFAs)
A Trade and Investment Framework Agreement (TIFAs) is a trade pact that establishes a
framework for expanding trade and resolving outstanding disputes between countries. TIFAs are
often seen as an important step towards establishing Free Trade Agreements.

On 15th September, 2021 Bangladesh and Australia have signed a Trade and Investment
Framework Arrangement (TIFA) agreement, the first of its kind to attract investment and remove
trade barriers between the two countries. A Joint Working Group will be formed under TIFA, with
due representations from relevant sectors and sub-sectors. The JWG is expected to offer a
mechanism to take forward discussion to realize fuller potentials of trade and investment.

The agreement would address all relevant questions including retention of duty-free and quota-
free treatment for Bangladesh after it graduates from being a least developed country, or LDC.
Australia has suggested hosting the working group's first meeting in early 2022.Over the last
decade, bilateral commerce between Bangladesh and Australia has increased six times, reaching
$1.90 billion (A$2.6 billion) last year, Services in RMG, agriculture, food, and education.

FIFA World Cup 2022

The only sporting event that rivals the Olympics is FIFA World Cup, the most prestigious
tournament in the world, held every four years. FIFA world cup 2022 is scheduled to take place in
Qatar from 21 November to 18 December 2022.This will be first world cup ever to be held in the
Arab world and it will be the second world cup held entirely in Asia after the 2002 tournament
held in south Korea and japan.

There are 211 countries which are playing qualifying round now. In this tournament 32 team will
be participate. Total eight venue selected in most 5 cities. The opening match featuring the host
Qatar will be played on 21 November 2022. During the group stage four matches will be played
each day. Daily Two matches will be played for last round and for kick out stage matches the third
place match will be played on 17 December 2022 at the Khalifa International stadium and the final
will be played on 18 December 2022 at the lusail Iconic stadium.

There are eight renowned company which will be sponsor of this tournament. These are Adidas,
Coca-Cola, Hyundai kia, Qatar Airways, Visa, Wanda Group, Anheuser and Vivo. Even though
Qatar has faced strong criticism due to the foreign workers involved in preparation for the world
cup but whole world expect this will be a great world cup ever. We are eagerly waiting for this
world cup.

Coupon Bonds
A coupon bond is a debt instrument that has detachable slips of paper that can be removed from
the bond contract itself and brought to a bank or broker for interest payments. These detachable
slips of paper are called coupons and represent the interest payment due to the bondholder.
Each coupon has its maturity date printed on it. When a coupon matures, the bond holder can bring
it to a bank or broker and collect the interest payment. Also, coupon bonds are often bearer bonds.
This means that there is no registered owner listed on the bond. Through the life of the bond, the
bond holder detaches the interest coupon one-by-one on the interest dates.

For example, a 5 years bond that pays interest monthly would have 60 coupons attached to the
actual bond. As the five years passes, the bond coupons are removed and presented for payment.
The coupon rate is calculated by taking the sum of all the coupons paid per year and dividing it
with the bond's face value. Coupon rate may change any time.

Convertible bond
Convertible bond is a fixed- income corporate debt security that yields interest payments. The
main feature of Convertible bond is debt instrument that can be converted into equity share of the
company at a future date. At the time of redemption of Bond investor can choose to receive share
of the company instead of cash. It pays periodic coupon interest just like any other debt instrument.

Examples -The BSEC gave the go ahead to Pubali banks perpetual bond worth taka 500 crore.
The bond would be unsecured, contingent, convertible, noncumulative and Basel III complaint. Of
the taka 500 crore, taka 450 crore would be issued through private placement and the rest taka 50
through public offer. Face value of each bond is taka 5000. its coupon rate ranges from 6 to 10 %.
Zero coupon bond
Zero coupon bond is a bond that pays no interest and trades at a discount to its face value. It is also
called pure discount Bond or deep discount Bond. The main are features of zero coupon Bond are
it is issued at discount and redeemed at full face value, more volatile than regular bonds.

Examples- Nagad, which acts as the main agent for mobile financial services(MFs), Bangladesh
Postal Office (BPO) plans to raise taka 500 Crore zero coupon Bond to pay its loans, develop
network and buy IT equipment for business expansion.

Lanka Bangla Finance Limited, a leading and NBFI of the country, has received consent from
Bangladesh stock exchange Commission(BSEC) to raise zero coupon Bond taka 300 crore.

Cottage, Micro, Small and Medium Enterprises (CMSMEC)

Cottage, micro, small and medium enterprises are particularly suitable for the densely populated
Countries like Bangladesh where CMSMEC sector can provide huge employment opportunity
with much lower investment. definition of cottage, micro, small and medium enterprises are the
following-

 Cottage- (employees -highest 15, manufacturing - less than 10 lakhs.)

 Micro- (employees -16-30 or less, manufacturing-taka 10 lakh to 75 lakhs.)
 Small-( employees -31-120, manufacturing - taka 75 lakhs to 15 crores.)
 Medium – (employees - 121-300 but garments or labor intensive industry highest 1000,
Manufacturing - 15 crore - 50 crore.)
The CMSMEC aims to promote the growth and development of entrepreneurs. There are green
shoots everywhere save for the cottage, micro, small and medium enterprise sector which has been
walloped the hardest by the pandemic. This sector contributes about 25 % to Bangladesh gross
domestic product. The contribution of this sector to the economy is still negligible as the sector
has not developed fully for some challenges like scarcity of fiscal incentives, management problem
and access to finance and bureaucracy. This sector is yet to be fully utilized in Bangladesh although
they have the ability to create numerous jobs and increase contribution to the GDP.

Fifth Generation (5G)

In telecommunication, 5G is the fifth generation technology standard for broadband cellular
networks, which cellular phone companies began deploying worldwide in 2019. The main
advantage of the new networks is that they will have greater bandwidth, giving higher download
speeds, eventually up to 10 gigabits per second. Beyond mobile operator networks, 5G is also
expected to be used for private networks with applications in industrial IoT, enterprise networking,
and critical communications.
South Korea is the country which deployed the first 5G network and is expected to stay in the lead
as far as penetration of the technology goes. According to GSA report, 58 countries had 5G
networks as of June 2021, up from 38 about a year ago. Bangladesh enters the 5G era via state
owned mobile operator 'Teletalk' on 12 December, 2021.It is said that 5G networks will be 20
times faster than the 4G networks.

Cloud Financing
The cloud refers to software and services that run on the internet, instead of locally on the user's
computer. On a more technical scale, cloud computing is the availability of computer system
resources, especially data storage and computing power, without direct active management by the
user. Cloud financing an application of the cloud computing model for financial services.

Cloud financing is driving transformation across banking, capital markets, insurance and payments
to support data-driven innovation, customer expectations and security and compliance needs. The
four key areas of cloud financing are: Cost savings, Staff productivity, Operational resilience,
Business agility.

The benefits cloud financing provides are many. Some of the benefits are:
 Enhanced security.
 Increased compliance.
 Better data management.
 Advanced scalability.
 Improved sustainability.
 Quicker service.
 Savings in operational cost.
 The Group of Seven (G7)
The Group of Seven (G7) is an inter-governmental political forum consisting of Canada, France,
Germany, Italy, Japan, the United Kingdom and the United States. The G7 is not based on a treaty
and has no permanent secretariat or office; its presidency rotates annually among the member
states, with the presiding nation setting the group's priorities, and hosting and organizing its
summit. The G7 nations account for close to 60 percent of global net wealth.
The UK hosted the G7 Summit as part of its 2021 G7 Presidency on 11-13 June, 2021. How to get
rid of Corona Pandemic, Equal Vaccine Distribution, World's Peace & Orders were among the
issues discussed during this summit. On 11-12 December, 2021, Foreign ministers from the
world’s richest nations have held a two-day meeting in Liverpool, northwest England, seeking to
present a strong, united front against global threats. Iran Nuclear Agreement and possible invasion
of Ukraine by Russia were the main issues discussed during this meeting and they warned Russia
about the serious consequences if they were to invade Ukraine. Britain handed over the G7
presidency to Germany for 2022.

It is worth mentioning that Russia was a part of G-8 but the other leaders decided to scrap
membership from the group after Russia's Annexation of Crimea in 2014.

J Curve Effect
The "J-curve effect" is an economic term to describe the way that a country’s balance of trade
initially worsens following a devaluation of its currency, then quickly recovers and finally
surpasses its previous performance. In economics, a J Curve refers to a change in the country’s
balance of trade, often following a currency devaluation or depreciation.

A weak currency means that imports will be costly, while it will be more profitable to export
commodities. The imbalance leads to a fall in the current account. Immediately after the
devaluation of a currency, there will be a lag in changing the consumption of imports. The demand
for expensive imports and the demand for cheaper exports will be unchanged in the short run, as
consumers look for cheaper alternatives.

The long-term implication of currency devaluation or depreciation is that local consumers will
switch to comparably cheaper locally-produced products. Also, foreign traders will purchase more
products that are being exported to their country. The products exported to their country are
relatively cheaper due to the weakened currency value. At this stage, the country experiences the
desired outcome of improving the current account balance.

Core Banking System (CBS)

Core banking system is a centralized back end system designed to process and support transaction
across branches of bank. It is the sum of all IT components that allow a financial institution to
develop, process and manage its basic financial product and service effectively. It aimed at
empowering customer to have a greater freedom of their account transaction.
Elements of core banking includes- basic client data, deposited accounts, maintaining records,
payment and cards, loans and mortgage, Customer relationship management (CRM) activists. The
main features are-reliability, availability, scalability, manageability and security.

There are multidimensional benefit of using CBS like-

 One stop fulfilment.
 Reduce operating cost.
 Better risk management capabilities.
 Improve customer intimacy and
 Increase management control.

Core banking system helps to keep pace with fast evolving market, simplify banking process, make
it convenient and expand the outreach of bank to remote place.

Digital currency
Digital currency is a form of currency that is available only in digital or electronic form. It is also
called digital money, electronic money, electronic currency. Transactions involving digital
currencies are made using computers or electronic wallets connected to the internet or designated
networks. Types of digital currencies include cryptocurrency, virtual currency and central bank
digital currency. Digital currency may be recorded on a distributed database on the internet, a
centralized electronic computer database owned by a company or bank, within digital files or even
on a stored-value card.

Typical digital currencies do not require intermediaries and are often the cheapest method for
trading currencies. The main advantages and disadvantage of Digital currency are -
 Fast transfer and smooth transaction times.
 Ease implementation of monetary policy.
 Make the transaction cost cheaper.
Disadvantages -
 They are volatile in value.
 Susceptible to hacking.
General Agreement on Trade in Services (GATS)
The General Agreement on Trade in Services (GATS) is the first multilateral agreement covering
trade in services. It was negotiated during the last round of multilateral trade negotiations, called
the Uruguay Round, and came into force in 1995. The treaty was created to extend the multilateral
trading system to service sector. All the members of WTO are signatories to the GATS.

The general agreement of trade in services is bundle of framework for future liberalization of
services trade. The main aim of GATS is to ensure progressive market liberalization and non-
discrimination between members. The services area mainly focused on the following service
sectors like Business services; Communication; Construction and Engineering; Distribution;
Education; Environment; Financial services; Health; Tourism and Travel; Recreation, Cultural,
and Sporting; Transport; and Other sectors. The General obligations and disciplines are based on
Most -Favored Nations (MFN) treatment and transparency.
Call Money Crisis
Call money is any type of short-term, interest-earning financial loan that the borrower has to pay
back immediately whenever the lender demands it. Call money allows banks to earn interest,
known as the call loan rate, on their surplus funds. Call money is an important component of the
money markets. It has several special features, as an extremely short period funds management
vehicle, as an easily reversible transaction, and as a means to manage the balance sheet.

Recently, call money crisis occurred on Banking industry. This rate is increasing a lot and the
highest on 13th December,2021. Sudden increased demand of cash in banks as investment has
risen in various sectors after the Covid-19 epidemic situation improved recently.
Concerned parties say that after fixing the minimum interest rate on bank deposits, many banks
are not able to pay interest on the deposit. At the same time, although the deposits of many banks
have decreased, the amount of loans remained the same. Yet, banks have to save Advance Deposit
Ratio (ADR) and Statutory Liquidity Ratio (SLR) against deposits and loans. That is why banks
are relying on the money market and its rates are rising sharply.

Shadow Economy
Shadow Economy refers to the underground, informal, or parallel economy, the shadow economy
includes not only illegal activities but also unreported income from the production of legal goods
and services, either from monetary or barter transactions.

The main causes of shadow economy are excessive tax burden, government over-regulation of
business, and poor performance by government bodies (tax, judiciary, police, and other
authorities). Shadow economies present a major problem for governments worldwide, particularly
in developing countries.

The important way to curb the shadow economy, therefore, is not only to increase the burden on
illegal activities, but also to render legal operation more attractive by creating clear and reasonable
rules and reducing the applicable costs of taxation and regulations.

Carbon pricing
Carbon Pricing is an instrument that captures the external cost of greenhouse gas emissions. This
cost is applied in order to encourage the top emitters to reduce the combustion of coal, oil and gas
and thus to keep the global temperature within 1.5degree centigrade. There are two types of carbon
pricing namely Emission trading system(EMS) and Carbon taxes. The former one acts an indicator
to determine the level of greenhouse gas emissions and allow the industries to sell their extra
allowances to large emitters; whereas, the latter one directly sets the price of carbon.
On the whole, this carbon pricing method is widely agreed and considered to be efficient
internationally. At present, 40 countries and more than 20 states and provinces globally have
acknowledged this mechanism as the more efficient one and many more are on the way to accept.
While the eminent researchers, scholars and fellows of home and abroad are observing their views,
they are offering a piece of loopholes as well like policy inconsistency, carbon leakage, ineffective
use of revenues etc. However, turning back all of these, the nitty gritty is that the benefits of carbon
pricing are very significant. It is one of the strongest policy mechanism for tackling the climate
change.

World Peace conference - 2021

The World Peace Conference 2021 was held on 4-5 December,2021 at Dhaka inaugurated by
President that would bring together global thinkers, writers, poets, singers and political
personalities to promote a culture of peace and tolerance. The conference was looked back on
Father of the Nation Bangabandhu Sheikh Mujibur Rahman’s vision and political struggle for
peace.
In this conference, where delegates from more than 50 countries participated both in-person and
virtually. Among the guests, former UN secretary general Ban Ki-moon attended virtually. While
inaugurating the "world peace conference - 2021" President Abdul Hamid urged the world leaders
to work for ending discriminations based on race, faith, color, religion and ethnicity and ensuring
equal opportunities for all.

In Prime minister speech, Sheikh Hasina urged the global community to use resources for universal
and sustainable development, not for arms, in the critical juncture of the covid-19 pandemic. The
conference ended with the adoption of a 16 point Dhaka peace Declaration, emphasizing the
importance of democracy, good governance and the rule of law as critical factors for global peace
and stability.

Light Engineering Industry Sector

The light engineering industry (LEI) sector as ‘the mother of all sectors,’ provides backup support
to cement, paper, jute, textile, sugar, food processing, railway, shipping, garments capital
machineries by repairing and maintaining those. This sector has been fueling the growth and
advancement of many other industries by supplying various types of machinery and spare parts
and by providing repair services.

Current Situation: According to the Bangladesh Chamber of Industry (BCI) -domestic demand
for Light Engineering Products (LEPs) in Bangladesh is around $8.2 billion. Which is met by both
local industries (40%) and through import (60%).The light engineering industry currently
contributing more than the foreign aid to GDP, which is around 2.2%. Currently, 60,000
enterprises in Bangladesh working in this sector, employing approximately 1 million people.

Prospects of Light Engineering Industry (LEI) Sector are Increasing contribution to GDP,
Growth of Local Industry, Increasing Export Opportunity, Reducing Import of LE product,
Increasing Export Opportunity etc.
Challenges of Light Engineering Industry (LEI) are Lack of Quality Raw Materials and Poor,
Quality of Product, Shortage of Work Force, Imported LE Products with low Price, Lack of
Communication, Lack of Marketing etc.
Bangladesh Trade Fair 2021
When the coronavirus pandemic hit Bangladesh last year, it upended many socio-economic
activities. One victim was the Dhaka International Trade Fair 2021. The 26th edition of the month-
long Dhaka International Trade Fair is scheduled to be held at the newly inaugurated Bangladesh
China Friendship Exhibition Centre at Purbachal in the capital on January 1, 2022.

The Export Promotion Bureau and the commerce ministry have been arranging the annual event
to showcase domestic and international products at Sher-E-Bangla Nagar in the capital with the
aim to promote the country’s domestic products on the international market since 1995. The DITF
2021 was cancelled due to the Covid crisis. Drawing huge crowds, the fair always causes heavy
traffic congestion in Dhaka. To avoid the inconvenience, the Bangladesh China Friendship
Exhibition Centre was built at Purbachal, a short distance from the heart of the capital, to hold the
fair and similar events.

Bangladesh Investment Summit 2021

The two-day International Investment Summit 2021 was held at Radisson Blue Water Garden
Hotel, Dhaka on 28 November to brand new Bangladesh among the investors of the world. The
main objective of the summit was to brand new Bangladesh among the investors of the world.

A large number of delegates such as Saudi Arabia's Transport and Logistics Minister, Vice
Minister of their Ministry of Investments, Turkish investors' community, alongside those from the
United States, Europe, and Asian countries joined the summit. Prime Minister Sheikh Hasina
formally inaugurated virtually the curtain of the two-day investment summit hosted by the
Bangladesh Investment Development Authority (BIDA). The summit with the tagline
"Bangladesh: Discover Limitless Opportunities", had 14 separate sessions, of which 11 was
dedicated to different sectors that included blue economy, healthcare and pharmaceuticals,
transport and logistics, capital market, power and energy, the fourth industrial revolution, financial
services, agribusiness, leather and leather goods, apparel, electrical and electronics manufacturing.

The country's increasing investment competitiveness, improving business environment, the

opportunities the 100 special economic zones are creating would be communicated with the
potential investors alongside the great rise story of the Bangladesh economy.