As the second wave of Covid-19 has started affecting Europe and America, emerging economies like Bangladesh will also struggle and have to tackle a number of economic effects of the pandemic, ICC Bangladesh President Mahbubur Rahman said on Monday.
In order to attain the desired level of gross domestic product (GDP) growth, he recommended focusing on ensuring healthcare services, sustainable exports, inflow of remittances, foreign direct investments and protecting smaller enterprises.
“Bangladesh recorded one of the fastest growth rates in the world in the past few years with a stable economic performance that has helped to reduce poverty and social inequalities,” Mahbubur Rahman observed, while presenting the Executive Board report at the ICC Bangladesh 25th Annual Council held virtually.
Referring to an ILO report, he mentioned that Bangladesh is now faced with twin challenges of battling the pandemic and its economic fallout.
In this context, he cautioned, economic risks are not limited to short term impacts, but they may also cause future productivity losses in terms of labour and capital.
“The economic crisis is likely to trigger a series of corporate and household debt defaults turning into a financial crisis,” reads the ICC Bangladesh report.
Mahbubur Rahman pointed out that many small and medium enterprises (SMEs), which generates 30 per cent of total national employment, have been suffering setbacks in terms of production, marketing and sales. “The high cost of doing business is affecting the SMEs,” he added.
The ICCB President emphasised that in order to maintain sustainable growth and to keep the supply chains functional and cost effective, it is very important to save MSMEs (micro, small and medium enterprises). In Bangladesh there are around 7.8 million enterprises and 90 percent of them are micro (including cottage) enterprises.
He also expressed apprehensions that Bangladesh's graduation from the status of least developed country (LDC) by 2024 would lead to loss of trade preference in major export destinations and loss of other preferences. “So, Bangladesh must focus on FTAs (free trade agreements) with major trading countries,” Mr Rahman mentioned.
The report the business leader presented explained that the pandemic has created a massive economic contraction in many parts of the globe and this crisis will follow a path similar to the last crisis. “The crisis will hit lower-income households and countries harder than their wealthier counterparts,” the report observed.
The International Chamber of Commerce (ICC) is collaborating as a trusted business advisor with many global bodies to help overcome the current crisis.
The ICC headquarters also released a call to action encouraging governments to ensure that stimulus efforts flow rapidly into the real economy and provide direct and immediate support to MSMEs and their workers to ensure their continued operations.
The report mentioned that countries around the world are implementing economic and fiscal policy stimuli, including emergency tax measures to support their economies during the under 19 pandemic.
In this respect, the ICC has highlighted a number of key tax measures that the governments can take to “Save Our SMEs” and relieve cash flow stress during the crisis.
The council approved the Auditor’s Report of 2019 and appointed the Auditor for the year 2020.
The Annual Council paid tribute to business icon Latfiur Rahman, founding member and vice president of ICCB and a number of personalities including former ICCB Executive Board member Waliur Rahman Bhuiyan, eminent lawyer Barrister Rafique-Ul Huq, renowned educationist and wife of Apex Group Chairman Syed Manzur Elahi Mrs Niloufer Nanzur and national professors Jamilur Reza Choudhury and Anisuzzaman.
The Council was attended, among others, by ICCB Vice President Rokia A Rahman, Apex Group Chairman Syed Manzur Elahi, DCCI President Shams Mahmud, CCCI President Mahbubul Alam, BIA President Sheikh Kabir Hossain, NCCI President Tareq Rahman, ICCB Board members ASM Quasem, Aftab ul Islam, AK Azad, Abdul Hai Sarker, Md. Fazlul Hoque, Kutubuddin Ahmed, Mir Nasir Hossain, Mohammad Hatem, Simeen Rahman and Tapan Chowdhury, ICCB Secretary General Ataur Rahman, and Bangladesh International Arbitration Centre CEO Muhammad A (Rumee) Ali.
Also present there were ICCB members Managing Director (MD) at First Security Islami Bank Syed Waseque Md. Ali, MD and CEO of Mutual Trust Bank Syed Mahbubur Rahman, MD and CEO of Pubali Bank Md Abdul Halim Chowdhury, MD of Shahjalal Islami Bank Muhammed Shahidul Islam, MD and CEO of Islami Bank Bangladesh Md. Mahbub-ul-Alam, MD of BASIC Bank Md Rafiqul Alam, MD of Mercantile Bank Md. Quamrul Islam Chowdhury, MD of United Insurance Company Khawza Manzer Nadeem, MD of Eastern Insurance Company Mohammad Haroon Patwary, MD of IPDC Finance Mominul Islam, MD of AK Khan Telecom Ltd Abul Kasem Khan, MD of DBL Ceramics Ltd Mohammed Abdul Jabbar, MD and CEO of ETBL Securities & Exchange Ltd Rizwan-Ur Rahman, MD of The Merchants Limited Mohd Arshad Ali, MD of SS Shipping & Trading Ltd Mohammad Shahjahan Khan, Advisor to the Board of Tyser Risk Management Bangladesh Limited (TRMBL) Anis A Khan, CEO and MD of Unilever Bangladesh Limited Kedar Lele, MD (In-charge) at Dhaka Stock Exchange Ltd Kazi Sanaul Hoq, MD of Summit Alliance Port Limited Syed Ali Jowher Rizvi, MD of National Housing Finance and Investments Limited Md. Khalilur Rahman, MD of Duncan Brothers (Bangladesh) Limited Imran Ahmed, Vice Chairman of Eastlamd Insurance Company Ltd. Gulam Rahman and Chief Executive Officer of AK Khan & Company Ltd KAM Majedur Rahman.
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