Expressing deep concern over the economic turbulence and worsening law and order, the Bangladesh Chamber of Industries (BCI), a platform of manufacturing sector, has said the country won’t see long-term stability without a democratic transition.
“We had an expectation that the interim government will take forward looking measures without harming to maintain jobs, keep production cost low and cut inflation. But in reality we saw that economic issues have been sidelined,” BCI president Anwar-Ul-Alam Chowdhury told a press conference on Saturday.
“Without a democratic government, no stability will be established in the country. Now, the interim government should do the things that are needed for a smooth democratic transition,” he added.
In reply to a question, the business leader stated that the interim government’s term should be short and it should quickly start the electoral process.
He outlined that the country’s manufacturing sector is now grappling with high inflation coupled with low demand, high energy price and supply crisis, high interest rates, single borrowers limit, LC opening problem, foreign currency shortage, and devaluation of taka, among others.
“On top on that, the sliding law and order situation is more alarming. Police are not functioning,” he said.
He alleged that the government resorted to easy tax collection instead of revising the budget with public expenditure even though NBR’s revenue collection was “not bad.”
“How all the costs of turbulence a business can afford? The IMF prescription won’t work in our economy. Rather, it can have negative impacts on it,” Anwarul remarked.
According to the BCI, the recent hike and energy price and VAT, rising interest rate and curtailing of loan classification period from six months to three months have sent a wave of panic among the local manufacturers.
“When local entrepreneurs fear to make investments, then how will FDI will into the country?” the BCI president questioned.
The trade body also raised concerns about the upcoming graduation from the Least Developed Country (LDC) status, warning that it could further increase business costs and push many businesses into a state of existential crisis.
Given the distressed economic conditions, it suggested that Bangladesh should apply for delaying the LDC graduation process by at least three years.
It also alleged that said the LDC exit proposal was made based on faulty and distorted data prepared by the previous government.
“We strongly urge the government to postpone the LDC graduation by at least three years to allow businesses the time and space to adapt,” Anwar said.
