Staff Reporter :
Bangladesh’s business community has called for a series of policy reforms aimed at strengthening the country’s economic resilience and sustainability.
These recommendations were presented during a pre-budget discussion organized by the Dhaka Chamber of Commerce and Industry (DCCI) at a city hotel on Sunday.
Representatives from various businesses urged the government to prioritize tackling non-performing loans (NPLs), increasing foreign currency reserves, and stimulating credit flow to the private sector.
These measures, they argued, are crucial for fostering a more robust and sustainable economy.
Another key demand centered on ensuring uninterrupted access to power and energy at competitive prices for the industrial sector.
A reliable and affordable energy supply is considered essential for promoting industrial growth and competitiveness.
The DCCI conference also addressed the issue of bank mergers. They cautioned against enforcing mergers between weak and strong banks, suggesting a more strategic approach to ensure the stability of the financial sector.
DCCI President Ashraf Ahmed emphasized the importance of policy reforms for a sustainable financial sector.
He identified key areas such as reducing non-performing loans (NPLs), increasing foreign currency reserves, and boosting credit flow to the private sector. Additionally, he stressed the need for a stable liquidity situation.
Aftab ul Islam, representing the American Chamber of Commerce in Bangladesh, highlighted concerns surrounding the proposed bank mergers.
He expressed anxieties regarding potential problems if weak banks are merged with stronger institutions.
Dr. Aminul Islam, General Secretary of the Bangladesh Economic Association, echoed these concerns, acknowledging the public’s fear surrounding the mergers.
Lawmaker A.K. Azad shifted the focus to skill development and technological adoption. He emphasized the urgency of addressing youth unemployment, stating that over two crore young people currently lack jobs.
Azad, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), also called for empowering the central bank to ensure strong governance within the financial sector.
Signaling a focus on private sector growth, Finance Minister Abul Hasan Mahmud Ali expressed optimism about maintaining Bangladesh’s economic momentum.
“The upcoming budget will be encouraging for the private sector,” Ali declared. “They are instrumental in our nation’s development, and we are firmly committed to facilitating their operations.”
The Minister emphasized the government’s willingness to consider “rational recommendations” from the private sector. This openness suggests potential policy reforms within the next budget that could benefit businesses.
Meanwhile, the Dhaka Chamber of Commerce and Industry (DCCI) presented a keynote paper outlining the country’s infrastructure needs. Their analysis indicates a requirement of $245 billion by 2030 and a staggering $1 trillion by 2041 to transform Bangladesh into a developed nation.
The DCCI paper further highlights the economic benefits of investing in logistics infrastructure. They estimate a return of $0.05 to $0.25 for every dollar invested in this sector.
The paper outlines ambitious targets for Bangladesh’s future. To achieve developed nation status by 2041, the DCCI forecasts a $2.5 trillion economy, a per capita income of $12,650, and export figures reaching $350 billion.
Additionally, they emphasize the need for a rising investment-to-GDP ratio, growing from 36% in 2030 to 40% by 2041.”A one-dollar investment in the logistics infrastructure sector can give a return of $0.05 to $0.25 in the economy,” it said.
In a paper, the chamber said the size of the economy would have to be $2.5 trillion to become a developed nation by 2041. Besides, per capita income will have to be $12,650 and exports should rise to $350 billion.
The investment-to-GDP ratio will have to increase from 36 per cent in 2030 to 40 per cent in 2041, it said.
The DCCI called for ensuring good governance in the financial sector, implementing arbitration laws and giving responsibility to asset management companies to reduce bad loans.
