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Speakers at a webinar on Saturday urged the government to rationalise the current tariff structure and incentive policy and formulate a sustainable trade policy for the sake of the country’s economic development.
They emphasised the expansion of trade, policy reforms, skill development, improving backward linkage industry, financial inclusion, utilising capital market for long term financing, access to finance for small and cottage industry, and product diversification.
The observations came at the webinar on “Bi-annual economic state and future stance of Bangladesh economy: private sector perspective” organised by the Dhaka Chamber of Commerce & Industry (DCCI).
As the chief guest, Planning Minister MA Mannan said that the private sector is in the driving seat of stimulating the economy. The government collaborates with the private sector, which will take Bangladesh to a new destination.
“For policy reforms, tax reforms or tariff structure reforms, the government will continue its collaboration with the private sector for framing a better policy regime. We are focusing on better living, better values of life, more freedom, more democracy and independence of people,” he said.
DCCI President Rizwan Rahman termed skill development a critical factor in the future and called for industry-academia collaboration to blend emerging industry skills and redesign the education curricula based on market demand.
Presenting keynote papers, Rizwan said the poverty rate rose by 9 per cent to 29.5 per cent and 30 per cent. Around 2.26 million people have lost jobs. The economy, trade and investment are going through a very challenging time.
He said flexible terms and conditions for repayment and collateral in the monetary policy would help boost private sector credit demand. Private Investment to GDP ratio targeted to 25 per cent in FY2021-22.
He recommended improving country competitiveness, cluster development of backward linkage industry, expanding the ADR system, and capital market-led long-term financing to accelerate private investment.
“Bangladesh will graduate from LDC status in 2026. [We] have only five years to prepare. It is estimated that the country may lose $4-6 billion in export earnings after LDC graduation,” Rizwan said.
He suggested full automation of tax, VAT, customs assessment, return and credit to boost internal revenue generation. “The government needs to create flexible regulations to bring the informal sector into the mainstream,” he added.
Former Bangladesh Bank governor Mohammed Farashuddin said the private sector was doing better. He stressed increasing the current Tax-GDP ratio, which is only 10 per cent.
Chairman of Policy Research Institute Zaidi Sattar said growth is dependent on macroeconomic development, export performance and trade development. He advocated for a sustainable trade policy with equal treatment.
Director-General of Bangladesh Institute of Development Studies Dr Binayak Sen said, “We do not have up-to-date poverty, employment or human development data. Lack of data affects the quality of policy formulation. We need a systematic and coordinated database.”
Dhaka University Professor Mohammad Abdul Momen urged strengthening G2G diplomacy to avail GSP+ facilities even after LDC graduation.
Country Economist of UNDP Bangladesh Dr Nazneen Ahmed urged for public-private collaboration, nexus of government planning, improving trade negotiation skills, climate negotiating skills and green financing mechanism of Banks.
