Currently, Bangladesh is experiencing an unstable economic growth trajectory with slow GDP growth, coupled with challenges like currency devaluation, rising inflation, financial instability, concerns over energy security and disruptions in key export industries that threaten country’s economic stability, speakers opine at a roundtable discussion on Saturday.
Dhaka Chamber of Commerce & Industry (DCCI) organized the discussion on “Current State of the Economy and Outlook of Bangladesh” at DCCI auditorium.
Ashraf Ahmed, President of the chamber presented keynote paper on the occasion.
He said to navigate these challenges, a strategic, coordinated response is essential, opined Ashraf Ahmed. He also suggested that immediate restoration of law-and-order situation is needed, which is very much required for the stability in the current business environment.
He also stressed on faster reforms in the banking governance and suggested to address NPL and liquidity shortage issues that must be prioritized to restore confidence in the financial system.
To combat inflation, he said that the government can pursue supply-side reforms to ensure smooth distribution of essential goods and services. Diversifying the energy mix and new energy supply routes, while improving investment in the energy sector, will be essential to safeguarding industrial productivity, he further told.
Mir Nasir Hossain, Former President, FBCCI said that the recent labour unrest has shattered our image in the global market. He also said that not only the export-oriented industries but the domestic market based industries are also important. Regarding interest rate for manufacturing industries, he said that the real effective rate of interest is too high in Bangladesh and it hampers the entrepreneurs to compete with the international market. Syed Nasim Manzur, President, Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh said that the businessmen now feel unsecured due to labour unrest and vandalism.
Recently the consumption by the consumers either it is food or services, remarkably fall, he said.
He also said that the double-digit rate of interest on industrial loan is not viable for sustaining in the competitive market. Dr. M. Masrur Reaz, Chairman & CEO, Policy Exchange Bangladesh said “we could not take the right policy in right time and this causes the macro-economic crisis in recent past. Confidence level for investment is shattered now, law and order especially disorder in the ‘order’ part, labour unrest, inflation are some of the pressing issues for the macroeconomic challenges for Bangladesh”.
Shams Mahmud, Former President, DCCI & Managing Director, Shasha Denims Limited pointed out the labor unrest in Ashulia region disrupts the production in the factories over there. If the law and order situation does not come into normalcy over there, buyers’ confidence will be hampered and order may shift from Bangladesh to other competitors.
DCCI Senior Vice President Malik Talha Ismail Bari was also present on the occasion.
