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Business Conference on “Private Sector Outlook; Expectations and Priorities”
Reducing the cost of doing business, improving the law and order situation, ensuring energy security, ensuring uninterrupted production in industries and factories, good governance, automation and optimization of revenue management and supportive trade policy support are sought by the business community at a conference on "Private Sector Outlook; Expectations and Priorities" organized by Dhaka Chamber of Commerce & Industry (DCCI) at a city hotel on 30November, 2024.
Dr. Salehuddin Ahmed, Finance Adviser to the Government and the Commerce Adviser to the government Sk. Bashir Uddin attended the conference as the chief guest and special guest respectively.
Ashraf Ahmed, President of Dhaka Chamber of Commerce & Industry (DCCI), in his welcome speech said there is a need to reduce the government expenditure, improve market management, increase the vigilance of law enforcement agencies to prevent extortion in the management of goods, besides gradually reducing the policy interest rate and interest rate at the beginning of the next year to curb inflation. To keep the currency market stable, he suggested to keep the exchange rate of US dollar close to the prevailing rate in the market. He also recommended to ensure easy access of low-cost credit flow to the CMSMEs. Ashraf Ahmed also underscored the importance of effective automation in the business registration and renewal process along with the reformation of overall customs system to make the business process easier. He said also said uninterrupted gas and electricity supply to industries and factories is mandatory in order to continue the production of products to be competitive in the international market. If the law and order situation does not improve, it will be difficult for us to conduct business activities further, therefore he sought government’s intervention to resolve this issue with utmost priority.
Dr. Salehuddin Ahmed, Finance Adviser to the government said the kind of corruption that has taken place in the last 15 years, especially in the economic sector, is unimaginable and has spread to every corner of the society. He said deposits of mass people have been taken away from the banks, which is rare in Bangladesh, but the interim government has continued its efforts of transferring them, but it may take some time. He said inflation is a major challenge right at this moment for the country. However, this situation will be resolved through reserve stability and a satisfactory level of interest rates. He said the private sector has reservation regarding the NBR, but all the regulations need to be business-friendly. The Adviser said the process of automation of NBR is underway, few are done and the rest will be done step by step. Process of separating the role of tax collecting and tax administration in the National Board of Revenue is underway. However, for the greater interest of the country it should be ensured that the credit flow to the private sector is continued, especially the SME sector.
Commerce Adviser Sk. Bashir Uddin said the private sector needs to coordinate with the government to improve the law and order situation and hoped that the existing situation will improve soon. He said that there are several trade organizations for the same or similar product. He expressed the view that there is no alternative to increasing our capacity to expand our trade in the international market apart from the post-LDC transition period. He also insisted on series of dialogues on when it will be logical to graduate. But we have to graduate at a point of time, no doubt, he added. Moreover, after the graduation, we will lose several incentives and advantages. He later emphasized the trade liberalization and formulation of supportive policies for the sub-sectors of business. To improve quality of life of the people, it will increase government’s spending and for a sustainable government’s spending we have focus on tax collection, he said.
Managing Director and Chairman of Incepta Pharmaceuticals Limited Abdul Muktadir said that although Bangladesh has gone through a difficult time recently, some good initiatives have also been taken, which will benefit us in the long run. He said instability in industries is not desirable in any way, so there should be a roadmap with a definite time frame for the development of the law and order situation. "We are suffering due to high import duty rates on various products and small traders are facing a difficult situation," he said. He mentioned that we have a number of coal-based power plants and if we can operate them seamlessly with coal that would help consumption of gas to produce power and subsequently allow us to give more gas to our industries.
Managing Director and CEO of PRAN RFL Ahsan Khan Chowdhury said if the law and order situation improves in the country, business will also improve. He mentioned that both production and employment will be disrupted if LCs are not opened according to the needs of the businessmen. In addition he underscored the need of using technology for the overall development of agricultural sector. He also proposed for issuance of partial bonds. He also opined that considering the prevailing situation, it is necessary to provide reduction in the interest rate of the loan.
President of Association of Bankers, Bangladesh (ABB) Selim R. F. Hossain said the government has not yet taken effective initiatives to improve the law and order situation, but it is necessary to control it immediately. However, the government has done well on the economic front. Contractionary monetary policy alone is not enough to control inflation, but strict vigilance must be ensured in market management, including stopping extortion in the supply chain ecosystem. He later called for the appointment of more courts and judges to solve the litigation crisis in the financial sector.
President of Bangladesh Association of Banks (BAB) Abdul Hai Sarkar said: "We have to improve the law and order situation in the industrial zones as well as ensure the safety of the entrepreneurs. "We all have to work together to bring the country back to its track. He said industrial development is not possible without ensuring the supply of electricity.
President of FICCI Javed Akhtar said that reliability, consistency and competence are essential in attracting foreign investment. Considering the current situation regarding the LDC transition, he called upon the concerned attention of all for taking decisions according to the ability of the country.
BTMA President Showkat Aziz Russell said that Bangladesh is lagging behind in waste management. We see plastic products or bottles are as waste and hazardous for the environment, but if we have the proper technology to transform this waste into valuable asset then country will be benefitted a lot. He stressed on reducing the cost of doing business, especially corruption. He also said that since long we are not focusing on our own gas exploration, if we could, that would help us getting low-cost gas for our industries. At present we have to buy high-cost gas that makes us difficult to be competitive in the international market, he added.
President of BKMEA Mohammad Hatem said zero-tolerance policy should be adopted by the government to improve the law and order situation in the industrial area. He also suggested to defer our LDC graduation as the country is not ready for this upliftment right at this moment since the businesses are going through the survival time. He also said that the LDC graduation target set earlier was fixed based on misguiding data. He also pointed out that our imports are continuously decreasing, as well as the value addition of manufactured products has decreased significantly. He also said that if industries do not get adequate gas supply, we will not be able to produce fabrics. Later, he urged all trade bodies and associations to keep out of politics and focus on only trade and investment.
Bank Asia Chairman Romo Rouf Chowdhury, DCCI former presidents Hossain Khaled and Rizwan Rahman also spoke on the occasion. Speakers emphasized preventing harassment of businessmen, stopping the creation of pocket associations only to attract votes, and not raising the holding tax.
DCCI Senior Vice President Malik Talha Ismail Bari, Vice President Md. Junaed Ibna Ali, members of the board of directors, former presidents and representatives of the private sector also attended the meeting. The conference was supported by Guardian Life Insurance Limtied.
Published on: 2024-11-30