President of Dhaka Chamber of Commerce & Industry (DCCI) Ashraf Ahmed on Saturday said that the law and order situation must be restored and confidence returned to keep production lines running and exports flowing.
He said this while speaking at a seminar on “Bi-annual economic state and future outlook of Bangladesh economy (January-June FY2023-24): private sector perspective” organized by DCCI on Saturday in the capital.
Regarding the central bank’s current strategy of higher interest rates and tighter liquidity management, he suggested that the strategy should be reversed as soon as inflation comes under control.
Ahmed expected the balance-of-payment issues to be resolved soon, with the expectation that the export level could be maintained. The trend of devaluation of taka will come down once the US dollar rate falls, which could help cut energy prices as well.
“Energy supply is crucial to maintain the momentum of the growing export trend,” he pointed out.
The DCCI president said the biggest challenges in running industries over the past six months have been the shortage of bank funds and the supply of gas and electricity, or more like their shortages.
"We are still facing gas and electricity problems. If we cannot resolve the issues of labour unrest and energy shortages, and if we cannot run factories uninterruptedly, it will have a major impact on exports," Ashraf said.
Dr Khan Ahmed Sayeed Murshid, Economist and Former Director General of Bangladesh Institute of Development Studies (BIDS) said that everything happens so fast in this world and we have no alternative but to respond quickly.
With economic challenges, a few non-economic challenges are also very crucial that need to be resolved soon. He underscored the importance of broad-based inclusive growth ensuring fundamental food security, power and energy security, security of education, and skill development.
Dr. Mohammad Abu Eusuf, Professor, Department of Development Studies, University of Dhaka, said maintaining the macroeconomic stability is now more crucial for the sake of overall economic development.
"We have to have actual realistic data of the number of populations, GDP size and other statistical components to research the actual scenario of the economy," Dr Eusuf said.
He termed three ‘Rs’ as the most important markers right now for the economy: RMG, remittances, and rice production.
Dr Md. Salim Al Mamun, Director (Research), at the Chief Economist's Unit of Bangladesh Bank said that a holistic approach has been taken for the reforms in the financial sector.
The growth in the service sector did not see much hike recently but it should be qualitative, he added.