The Bangladesh Bank will convert the existing SME policy into MSME (Micro, Small and Medium Enterprises) in the next year with a view to bring micro enterprises under the same guideline.
The current Small and Medium Enterprise policy does not have any specific room for the thousands of micro enterprises operating across the country.
‘We’ll take the SME policy towards an MSME policy next year, and an MSME expert has already been appointed,’ Bangladesh Bank governor Atiur Rahman said
on Thursday at an executive seminar on ‘Micro, Small and Medium Enterprise for a Prosperous Bangladesh’ at the BB conference hall.
He said the MSME would become popular to the people; even it
may spread like ‘wild-
fire’ among the targeted people if credits are provided to them at an interest rate of 2 per cent, reports United News of Bangladesh.
‘We’ll propose keeping a special allocation in the budget for this purpose,’ he said.
Atiur said that the new policy was being formulated in line with the trend in other countries where all the enterprises, except big ones, are under the same policy guideline, adds Bangladesh Sangbad Sangstha.
Referring to the experience of Japan and Korea, Rahman said Bangladesh also required bringing in the micro enterprises on the same scale of attention for fostering inclusive growth.
Former BB governor M Farashuddin said the MSME policy should be very clear so this sector can grow without any barriers.
He said concentration should be given on agriculture to minimise discrimination, eradicate poverty and generate employment opportunities through setting up micro, small and medium enterprises in villages.
Farashuddin suggested keeping mandatory one semester for all college and university students which they would spend in villages through engaging them in productive activities with the farmers, adds United News of Bangladesh.
‘It’ll help them to get a feel about the country, development and to face the challenges that are ahead for development,’ he said.
The former central bank boss does not think that reduction of bank interest can bring development; rather he thinks the population will have to be converted into resources instead of considering it as burden. ‘Vocational training is a must to serve the purpose.’
He stressed cooperation between actors to raise GDP growth into double digits, after being stranded below 6 per cent for a long time.
Farashuddin criticised the governments for not taking any steps to decentralise the head offices of banks.
Deputy governors and senior officials of Bangladesh Bank were present.
