Home ›› 17 Jan 2023 ›› News
The government is considering setting up a separate industrial park under BSCIC for the light engineering sector and providing them with special incentives as the sector shares domestic market worth $12 billion.
It will also take steps to promote grassroots-level entrepreneurs of the sector, get them on board and set specific priorities in line with the light engineering policy, Industries Secretary Zakia Sultana said while speaking at the 8th meeting of the SME Development Working Committee of Business Initiative Leading Development (BUILD) on Monday.
“Our ministry is working to promote the sector following the agenda of SMART Bangladesh. As we have policies in place without aligned action plans, we go nowhere. So, we will be setting out targeted actions that truly facilitate small entrepreneurs and hugely contribute to the employment generation and eventually export, and greening the sector is our top priority,” she added.
Ferdaus Ara Begum, CEO, BUILD, presented an analysis titled “Light Engineering Industry Development Policy 2022” at the meeting, says a press release.
She said, “Only five countries--China, USA, India, Singapore and Japan--import goods of about USD 2.51 trillion, and Bangladesh enjoys market access to all these destinations. If we export at least 1 per cent to these places, we can earn about USD 25 billion from the sector.”
“We have room to update the policy by developing strategy and action plans considering the situation of post-graduation, Made in Bangladesh Campaign for the LE sector,” she added.
She also urged the government to set up a dedicated industrial park and industrial cluster, an e-commerce platform for LE entrepreneurs, re-skilling and up-skilling to create a technologically skilled workforce, enforcement of AI, rationalisation of raw material import duty and encourage TT export, strategy to attract domestic and foreign investment.
She recommended setting year-wise GDP and export target along with a well-defined action plan to implement development strategies for this sector while appreciating the ministry for inclusion of the logistics sector as the high-priority sector and 4IR and ICT in the recent industrial policy formulated by MOI.
Dr Md Mafizur Rahman, MD, SME Foundation said they are currently formulating a cluster development guideline which will help promote the light engineering sector. He emphasised the importance of addressing tax-related issues for importing raw materials and accessories for entrepreneurs.
Mirza Nurul Ghani Shovon, President, NASCIB stressed the need for identifying the specific sub-sectors of the light engineering sector and planning incentives accordingly.
Mohammad Monjurul Islam, Additional Director of Bangladesh Bank, said, “We are very much willing to support the sector during the growing stage, and we will see how they can gain financial benefits under the collateral scheme.”
Manzur Ahmed, Adviser, FBCCI said that all industrial policies would need to be mandatory and in this context, an Industrial Protection Act can be framed where different chapters will be included in other sectors.
Following the recommendation of BUILD study, Abdul Amin, Director of Bangladesh Engineering Industry Owners Association (BEIOA) said, “We need the Subcontracting Act at the earliest and industrial plots at affordable costs for safeguarding the interests of the sector.”
From the private sector, Mahbubul Alam, President, Chittagong Chamber of Commerce and Industry (CCCI), co-chaired the meeting and urged the ministry to keep extending support to the sector that has a huge potential as it contributes 3 per cent to GDP, the release added.
