Home ›› 06 Nov 2022 ›› Front
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the government not to increase the bank interest rate from the existing 9 per cent as the country is going through a tough time.
FBCCI President Md Jashim Uddin made the call at an event at the Economic Reporters’ Forum (ERF) in Dhaka on Saturday.
“Domestic industries will face more difficulties if the current interest rate on loans goes up. Gas and electricity must be supplied properly to agriculture and manufacturing sectors to achieve the targets,” he said.
He said Bangladesh Bank set a gap of Tk 1 between the selling and buying rates of one US dollar for banks to restore stability in the foreign exchange market. “But some banks have made abnormal profits while selling US dollars in the absence of accountability.
“Many have moved to dollar business from the share market too. The government needs to bring discipline in the banking sector quickly.”
“Banks should also provide 35-40 per cent of the loans to micro, small and medium businesses because they contribute a major share to keep our economy running. But banks tend to provide loans only to big businesses, many of whom are loan defaulters,” he added.
Alleging that money is being laundered abroad through under-in-voice and over-in-voice, Jashim urged the government to catch the people responsible and bring them to book.
He said the authorities should solve the ongoing energy crisis by encouraging the use of coal in power generation. “We must use our coal. Apart from increasing investment in industry, environment-friendly energy cooperation will be needed for the country’s development.”
“Now, if we don’t get gas and electricity, it will be impossible to supply the goods to foreign buyers as per their orders. If buyers leave us once, we won’t be able to get them back.
“Under the circumstances, businesses are ready to pay higher prices if uninterrupted gas supply to the industry can be ensured,” he said.
The apex trade body chief also said that the government needs to rationalise the power tariff since load-shedding is still happening after the electricity prices were increased.
Responding to a question on the loan from International Monetary Fund (IMF), he said, “The IMF gives loans against various conditions. The same conditions cannot be applied to the US, India and Bangladesh. We must negotiate efficiently to not let that happen.
“We need the loan from the IMF to meet the foreign exchange deficit but that doesn’t mean we will take the loan by compromising our dignity.”
To gain developed country status by 2041 and attract more foreign direct investment, Jashim urged the government to establish an improved tax structure. “We need to widen the tax net by setting up NBR offices at the upazila level.”
He added that Saudi Arabia is setting up new economic cities but Bangladesh is failing to send enough manpower due to a lack of skilled workers like India and other countries have. “The amount of remittance our low-skilled workers have sent massively supported us to withstand the impacts of the Covid-19 pandemic.
“But we are losing the chance to earn more remittance as we are lagging in sending skilled manpower. We must emphasise creating skilled manpower to meet the demand of the job market abroad.”
Jashim also recommended reducing the gap between industry and academia to create skilled manpower and utilising the river ways to reduce cost and improve ports’ logistics to compete with global counterparts. ERF General Secretary SM Rashidul Islam moderated Saturday’s event while Vice President M Shafiqul Alam presided over it.
