Dhaka Chamber of Commerce and Industry (DCCI) called on the government to provide uninterrupted supply of energy to the local and export-oriented manufacturing industries and improve ease of doing business for attaining sustainable development through public-private partnership (PPP).
Mentioning the global economic downturn due to the Covid-19 pandemic and subsequent Russia-Ukraine war that have hindered Bangladesh's progressive growth, the trade body also recommended accelerating the country's economic recovery in 2023.
In a statement on Sunday, it also urged the government to develop an infrastructural environment conducive to attracting local and foreign investment, export diversification, and facilitate easier access to credit facilities for Cottage, Micro, Small and Medium Enterprises (CMSMEs) and so on.
The trade body also said that the recent increase in energy prices is disrupting the production of energy-intensive industries and they are increasingly falling behind to compete in international trade.
DCCI is of the view that long-term planning should be adopted following a predictable pricing policy in determining the energy price.
In order to ensure energy security, it is necessary to urgently explore new gas fields, strengthen long-term energy supply contracts and find alternative sources of energy import.
Besides, it is necessary to ensure uninterrupted supply of energy to the industries and the government is requested to put emphasis on it as a matter of priority.
Issues such as the ongoing foreign currency crisis and devaluation of the Taka against the US Dollar has challenged the country's financial sector, resulting in some negative impact on the import of energy, industrial raw materials and supply chain for local export-oriented industries.
More emphasis is needed on increasing incentives to increase remittance inflow in order to enhance the foreign exchange reserve.
At the same time, 'currency-swap' may be prioritised to meet necessary import expenditure.
DCCI also believes that in order to mitigate the liquidity crisis in the financial sector, the on-going austerity measures taken by the government should be maintained and project implementation efficiency should be increased ensuring good governance.
Due to the global economic problems and inadequate revenue collection of the government, the government has to borrow more than its target from the local banks in recent times.
As a result, the available credit to the manufacturing private sector may decrease.
It should be noted that if the private sector credit flow is interrupted, local investment and employment retention may decline.
The DCCI feels that in order to achieve higher revenue collection, the government should focus on complete automation of revenue management, necessary reforms of existing revenue laws and increase the avenues for revenue generation.
It also requested the government to ensure that no existing taxpayers are harassed.
In order to continue the existing export growth after the LDC graduation, Bangladesh should take initiatives to sign free trade agreements (FTAs) with potential trade partners and various regional economic blocs.
In this transitional period of LDC graduation, Bangladesh needs to ensure proper readiness and preparation of local businesses.
DCCI also believes that export diversification, infrastructure development, skills development, technological advancement, expediting backward linkage industries, reforms of tax and tariff structure and continued negotiation for ensuring "International Support Measures" even after LDC graduation are important agendas that the government should focus on.
To increase local and foreign investment in the country, there is a need for timely reforms of various laws such as the Companies Act, Arbitration Act, Bankruptcy and Insolvency Act.
The DCCI also called for utilising the technological excellence of the fourth industrial revolution (4IR) to meet the skill needs of local industries and the international market.
Special attention should be given on skilled and high-skilled manpower export.
In this case, there is no alternative but to emphasise and strengthen the industry and academia relationship for best utilisation of the country's demographic dividend in future, added the DCCI.
talhabinhabib@yahoo.com