Business Desk : dhakamirror.com
Business leaders on Saturday sought better business climate in the country and said that issues like law and order situation, rising interest rates and other macroeconomic challenges must be addressed as these factors have impacted the economy negatively.
Speaking at a seminar titled ‘Current state of the economy and outlook of Bangladesh’ organised by the Dhaka Chamber of Commerce and Industry in the capital Dhaka, they warned that if the situation does not improve, the overall economic environment would suffer further deterioration.
DCCI president Ashraf Ahmed said that the interim government must address obstacles to exports and improve the business climate.
‘Labour disputes, especially in key industries like readymade garments, have disrupted production, tarnishing Bangladesh’s global image and resulting in missed international market opportunities,’ said Ashraf.
He also pointed out that banks’ inability to disburse necessary funds had left many industries struggling to pay their workers.
Inflation will remain high unless there is a business-friendly environment where investments and operations can thrive, he added.
Former Federation of Bangladesh Chambers of Commerce and Industry president Mir Nasir Hossain echoed Ashraf, stating that labour unrests severely damaged Bangladesh’s reputation on the global market.
Regarding interest rates for the manufacturing sector, he said that the real effective interest rate was too high, making it difficult for local businesses to compete internationally.
Nasir also pointed out that despite the emergence of a growing middle-income class, the tax net has not expanded accordingly, which he described as unacceptable.
He further said that lack of an uninterrupted gas supply was causing significant challenges for manufacturing industries and called for stronger onshore and offshore gas exploration efforts.
Syed Nasim Manzur, president of the Leather Goods and Footwear Manufacturers & Exporters Association, expressed that the business community now feels increasingly insecure due to labour unrest and vandalism.
Consumer spending, both in food and services, has fallen drastically, he said.
He also criticised the double-digit interest rates on industrial loans, saying that the rates are not sustainable for competing on global markets.
‘Foreign direct investment is crucial for Bangladesh, but with low confidence, it’s stagnant. We need reforms and better governance to restore investor trust,’ he said.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that better relations between factory owners, workers and labour leaders could mitigate unrests.
M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, criticised lack of timely policy interventions, which he said had exacerbated the country’s macroeconomic crisis.
He added that while the banking sector had seen some reforms, other areas of governance remained neglected.
Shams Mahmud, managing director of Shasha Denims Limited, highlighted the disruption in the Ashulia region due to the resent labour unrests.
‘If the law and order situation does not stabilise soon, we risk losing international buyers, who may shift their orders to competitors,’ he warned.
He urged that wage issues and other grievances be resolved through dialogue.
Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, expressed frustration that labour unrests were hindering the business community’s primary goal of creating employment.
He emphasised the need for the full reinstatement of law enforcement capabilities and suggested a reward system for good borrowers to reduce non-performing loans.
He also called for the removal of LC restrictions, arguing that industries must continue to operate to generate employment.
Syed Mohammad Kamal, country manager for Mastercard Bangladesh, noted that digital spending had sharply declined since July-August due to political turmoil, floods and unrests in hilly areas.
He recommended incentivising digital payments to promote economic activities.
– Input from New Age was used in this article.
