Investor Presentaiton

ANNUAL REPORT 2018-2019 24 | ANNUAL REPORT 2018-2019 Directors' Report For the year ended 30 June 2019 Bismillahir Rahmanir Rahim Honorable Shareholders, The Board of Directors of Khulna Power Company Ltd. (KPCL) welcomes you to the 21st Annual General Meeting of the Company. We are pleased to submit before you the operational activities and audited financial statements of the Company for the year, which ended on 30 June 2019. The Directors' Report is prepared in compliance with Section 184 of the Companies Act 1994, Listing Rules of Dhaka & Chittagong Stock Exchange Ltd (DSE&CSE) and Bangladesh Securities & Exchange Commission's (BSEC) notification no- BSEC/ CMRRCD/2006-158/207/Admin/80 dated 03rd June 2018. Global Economic Outlook "Global growth has continued to soften this year. Momentum remains weak and policy space is limited. A subdued recovery in investment growth in emerging market and developing economies (EMDES) dampens potential growth prospects and hampers progress toward achieving the Sustainable Development Goals. Risks remain firmly on the downside, including the possibility of escalating trade tensions, sharper-than- expected slowdowns in major economies, and renewed financial stress in EMDES." - Global Economic Prospects, WB Report Global economic activity experienced slow-down in the second half of the year 2018 reflecting a confluence of factors affecting major economies. This contrasting scenario followed strong growth in 2017 and early 2018. Trade tensions increasingly took a toll on business confidence and, so, financial market sentiment worsened, with financial conditions tightening for vulnerable emerging markets initially and then in advanced economies later in the year, weighing on global demand. China's growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The euro area economy lost more momentum than expected as consumer and business confidence weakened. Elsewhere, natural disasters hurt activity in Japan. Conditions have eased in 2019 as the US Federal Reserve signaled a more accommodative monetary policy stance and markets became more optimistic about a US-China trade deal. Nonetheless global growth remains subdued as United States further increased tariffs on certain Chinese imports and China retaliated by raising tariffs on a subset of US imports. Global technology supply chains were threatened by the prospect of US sanctions. Moreover, Brexit related uncertainty continued, and rising geopolitical tensions roiled energy prices. Global growth in 2019 has been forecast to 2.6 percent reflecting the broad-based weakness observed during the first half of the year, including a further deceleration in investment amid rising trade tensions. In particular, global trade growth in 2019 has been revised down a full percentage point, to 2.6 percent-slightly below the pace observed during the 2015-16 trade slowdown, and the weakest since the global financial crisis. Investment and demand for consumer durables have been subdued across advanced and emerging market economies as firms and households continue to hold back on long-term spending. Accordingly, global trade, 25

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