Better business climate sought for LDC graduation: ICAB webinar

Speakers at a webinar on Monday stressed the need to focus on improving the business climate and trade facilitation system to ensure Bangladesh’s smooth and sustainable graduation from LDC status by 2026.

They also laid emphasis on the need to upgrade hard and soft business infrastructure; encouraging linkage industries and establishment of special economic zones and active pharmaceutical ingredient (API) parks.

Speakers gave their recommendations at a webinar titled – LDC graduation: Challenges and Opportunities – organised by the Institute of Chartered Accountants of Bangladesh (ICAB).

Addressing the webinar as the chief guest, Planning Minister MA Mannan said, “Our LDC graduation will bring a mixed set of new realities and the country will lose a wide variety of preferences and privileges in global trade.”

“As the duty-free benefits under the WTO regime will no longer effective, our exports will face new challenges,” he said, adding that tariffs on Bangladesh’s products in major international markets and debt servicing liabilities will increase due to cessation of concessional finance into the country.

ICAB Chief Executive Officer Shubhashish Bose presented the keynote paper of the webinar.

Shubhashish said though Bangladesh will face many challenges, graduation from the LDC status would be a recognition of efforts of the government in making real developments to the economy and living standards of the people.

“Bangladesh has developed significantly in trade-related capacity and adaptability. Even withdrawal of GSP by the US though made a jolt, but could not make any big difference,” he said.

Bangladesh is considering FTAs with a number of developing countries, which might open up additional opportunities for the country and help minimise negative impacts on exports, he added.

The ICAB CEO also mentioned that diversifying products and markets are an ongoing process. There is an agenda to add more items to some 744 products that we are currently exporting.

Improving business climate and trade facilitation system is on the cards to make business more cost-efficient, he said.

“Upgrading the hard and soft business infrastructure is in progress for making trade more competitive, encouraging the linkage industries as a part of the policy to further the supply and value chain. In this regard, the establishment of Special Economic Zones and the Active Pharmaceutical Ingredient Park may be termed as visionary moves towards the future,” ICAB CEO said in the paper.

Sharifa Khan, member (secretary) of Planning Commission, was present at the webinar as special guest. Mostafa Abid Khan, member of Bangladesh Tariff Commission (BTC); Ali Hussain Akber Ali, chairman of BSRM Group; Syed Nasim Manzur, managing director of Apex Group; and Monzur Ahmed, adviser of FBCCI, were panel speakers at the event.

“As a least developed country, Bangladesh used to enjoy many concessions and privileges. Those privileges helped the country to a great extent to reach where it is now,” ICAB President Mahmudul Hasan Khusru said while delivering the welcome address.

“For instance, after graduation, soft loan windows of the multilateral donors will be closed down permanently; this will increase cost of foreign loans,” he added.