President of Dhaka Chamber of Commerce and Industry (DCCI) Barrister Md. Sameer Sattar said on Sunday that a contractionary Monetary Policy Statements (MPS) will help to revive the financial and private sectors. The MPS primarily aims to curb inflation by reducing the aggregate demand in the economy, continuing supply-side interventions and a stable and favourable business environment, he said in response to the declared Monetary Policy for the first half of the fiscal year 2023-24 (July-December 2023) by the Bangladesh Bank. The repo and reverse repo have been adjusted to 6.5% and 4.5% respectively to control inflation by reducing the money supply. However, the effectiveness of these instruments of controlling inflation is yet to be seen. Because reverse repo was raised earlier but inflation did not decline as expected. Read: NBR-private sector partnership crucial to achieve high revenue target: DCCI President MPS showed that the lending rate cap of 9% has been lifted. However, the lending rate will be determined based on a new policy termed as “Short-Term Moving Average Rate (SMART)”. As a result, the interest rate on bank loans may reach double-digit which may trigger manifold challenges for the survival of businesses in the current volatile geo-economic situation as well as provoking inflation. Lifting the cap of lending rate and introducing the SMART policy may also increase the cost of doing business for CMSMEs. The public sector credit growth has been set at 43% for July-December of FY24, which was 40% in January-June of FY23. On the other hand, the private sector credit growth has been set at 10.9% for July-December of FY24, which was 11% in January-June of FY23. It is apparent that private sector credit growth has slowed down due to the current geo-economic uncertainty. Read: DCCI urges industrialists to setup factories in EZs for uninterrupted power supply DCCI President believes that the target set for public sector credit may limit the scope for private sector borrowing. “To reduce public sector borrowing, efficiency and good governance must be ensured by adjustment in government spending through austerity measures, rationalization of government expenses and prioritization of development projects,” he said. He also underscored enhancing tax revenue to reduce the public sector borrowing from the banking sector. Regarding exchange rate stability, Barrister Sattar agrees that a unified exchange rate will stabilize the market. However, strong monitoring should be in place by the Bangladesh Bank so that it is properly maintained. Read: Bangladesh economy is growing to offset global challenges: Speakers tell DCCI seminar Reduction of ERQ encashment limit to 50% and increase of interest of EDF to 4.5% are necessary moves to mitigate the foreign exchange challenges. To enhance remittance inflow in the country, Bangladesh Bank needs to be very stringent to discourage the informal channel of inward remittance like Hundi. Barrister Sattar was hoping for solid recommendations from the Bangladesh Bank to deal with Non-Performing Loans (NPLs). This is because maintaining low NPLs and ensuring good governance in banks and financial institutions are critical for maintaining financial sector stability. "We hail Bangladesh Bank and the Government of Bangladesh for the formation of a committee to review the existing Bank Company Act 1991 to propose effective resolution to the growing NPLs,” he said. Since growing NPLs is limiting the private sector credit and in turn, stalling private sector growth, Barrister Sattar feels that stern measures for quick loan recovery should be brought into place. In connection, he said, Bangladesh Bank can identify and pinpoint the exact reasons, focusing on habitual defaulters, and start engaging with various institutions and stakeholders in order to work towards reducing the current backlog in recovery cases along with quick reforms to introduce ADRs in an effective manner.

A 12-member business delegation from Dhaka Chamber of Commerce and Industry (DCCI) led by the Chamber’s President Barrister Md. Sameer Sattar left Dhaka on Sunday to join the BIMSTEC Business Conclave in Kolkata.  The Conclave will be held on June 13-15 in Kolkata, India.  Also Read: BIMSTEC chief urges member states to boost trade within the region Indian Chamber of Commerce and Industry (ICC) in collaboration with the Ministry of External Affairs, Government of India, is organizing this mega conclave with the theme “Quantum leap in business cooperation for shared prosperity and growth”.  The BIMSTEC region brings together 1.67 billion people and a combined GDP of around USD 2.88 trillion which offers a huge market to the investors and traders.  In spite of close proximity and historical linkages, the region has not witnessed major flow of FDI among BIMSTEC countries.  The conclave aims to chart out an actionable agenda to augment intra-regional trade and investment in this region as well as strengthen the value chains for mutual benefits through deeper economic engagement of the BIMSTEC countries, according to DCCI. Also Read: Dhaka seeks Member States' greater commitments to implement BIMSTEC FTA soon The inaugural session of the 3-day conclave will highlight the ‘25th glorious anniversary of BIMSTEC- towards a peaceful, prosperous and sustainable Bay of Bengal region’.  In addition, to steer the objective of the event, various interactive and high-level topical plenary sessions will be held focusing on trade and investment opportunities, agriculture, food security, infrastructure, logistics and connectivity, advancement of healthcare, sustainable tourism, women entrepreneurship, demographic dividend, textile, finance, digital connectivity, climate change and regional business cooperation. DCCI delegation will join some discussion sessions.  Also Read: Bangladesh for speedy implementation of BIMSTEC Free Trade Area The DCCI delegation during their visit will also attend the B2B meetings and exhibition to explore wide-ranging cross-border trade and investment opportunities to make this trip successful.    

Speakers in a discussion said that the role of Bangladesh Accreditation Board (BAB) is crucial in attaining high export target of $100 billion by 2025-26. They said this in a discussion meeting on the occasion of International Accreditation Day-2023 jointly organized by Dhaka Chamber of Commerce and Industry (DCCI) and Bangladesh Accreditation Board (BAB) at DCCI auditorium on Sunday. Also Read: NBR-private sector partnership crucial to achieve high revenue target: DCCI President Industries Minister Nurul Majid Mahmud Humayun, MP was present here as the chief guest while Industries Secretary Zakia Sultana and DCCI President Barrister Md. Sameer Sattar were present as special guests. Director General (Additional Secretary) of BAB Md. Monwarul Islam chaired the program.  Also Read: Target $100 bn export earnings by 2026: Commerce Minister Nurul Majid said that the motto of this year’s accreditation day is “Accreditation: Supporting the Future of Global Trade” which is a very timely selection. He said, “if we can maintain the quality of products and services, we can grab the international market easily. For the sake of the country and to create confidence in our products in the global competitive market, BAB is working relentlessly to create awareness.” DCCI President Barrister Md. Sameer Sattar said that in the international market Bangladesh’s total trade was $141.42 billion. Bangladesh is gradually progressing to an export oriented country from import dependent country. In the last fiscal year, Bangladesh’s export was more than $52.08 billion. And for this export accreditation is a very important tool. To show the quality of specific products, there is a need for internationally accredited certificates and these certificates play a pivotal role in boosting exports, he said. Also Read: Bangladesh’s apparel export to cross $100 bn by 2030: experts Accredited products or services can enter into any MRA “Mutual Recognition Arrangement” country easily. At present Accreditation is not an auxiliary but it is now a must for world trade. BAB has taken initiative to get the membership of International Accreditation Forum (IAF), said Monwarul Islam, DG of BAB.  

Bangladesh's State Minister for Power, Energy and Mineral Resources has urged the businessmen to stop the use of illegal gas connections. “Whenever we visit a factory, we find that if there is a legal gas connection, there are three more illegal connections bypassing the main one”, he told a seminar at Dhaka Chamber of Commerce and Industry (DCCI) where a good number of leading entrepreneurs representing different sectors including textile and readymade garments were present. “Please stop these illegal gas connections. Your illegal connections actually deprive other industries of getting their right to using gas”, he told the businessmen. He also said,”I don’t want to publish the list of those industries. The Names  of many large and leading industries are there. They are very much influential.” Read more: BGMEA wants illegal gas connections to be snapped The DCCI organised a seminar titled: “Stakeholders’ Dialogue on Energy Strategy: Towards a Predictable Future” with its president Barrister Md Sameer Sattar. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hasan, energy expert and Dhaka University Professor Badrul Imam, former FBCCI president Shafiul Islam Mohiuddin, Summit Power director Faisal Karim Khan, Pran RFL Group chairman Ahsan Khan Chowdhury, and Foreign Investors Chamber of Commerce and Industry (FICCI) president Naser Ezaz Bijoy spoke on the occasion. Making a presentation on the current scenario and the government’s future plan Nasrul said the government is planning to build a land-based LNG terminal at the Matarbari deep sea port within 4 years at a cost of $4 billion. “It will help ensure energy security, especially in the import of gas from abroad. If this land-based terminal is built, there will be no need to remove the terminal to the deep sea during any storm,”he said. Read more: Govt moves to setting power, gas prices based on international market: Nasrul Secondly, large ships will be able to arrive in the port with 18 meter water depth which will reduce the transportation cost, he added. The seminar witnessed a debate between the state minister and Professor Badrul Imam on the issue of gas exploration across the country for finding more gas. Nasrul said that he is confused whether there is no gas in the country or any more gas in the country. Responding to this remarks, Prof Badul Imam said there is nothing to be confused with availability of gas in the country as many international research groups including USGS proved their scientific research and data that still the country has a reserve of between 32 and 42 Trillion Cubic Feet (TCF) of gas. Read more: Petrobangla initiates move to end foreign company’s monopoly in pre-paid gas metering system "Recent finding of gas in Bhola also proves the presence of more gas in the country,”said Dr Imam. Nasrul Hamid also said that the government will not allow industries to be developed without any specific industrial zone to ensure the planned supply of gas and electricity. He said that the government will allow the private sector to come into the energy business so that any enterprise can import gas and supply to any industry with its own choice at their negotiated rate. He reiterated the government plan to set the prices of power, gas and petroleum fuels on the basis of international market price. Read more: No downward adjustment in power, gas tariffs until stability in fuel price: Tawfiq Elahi “We’re working on it to come out of the current trend of subsidy provision for the energy sector,”he said. He, however, said there is no plan of the government to raise gas or power prices before the coming budget.  FICCI president Naser Ezaz Bijoy said transparency is needed to fix the energy prices. Former DCCI president Sabur Khan said the illegal gas consumers should be brought under law. Read more: ACC acquits 5, inc. recent minister's son in illegal gas connections case

Dhaka Chamber of Commerce & Industry (DCCI) on Sunday requested Bangladesh Bank to extend support for Bangabazar fire victims, noting that thousands of small and micro businesses of Bangabazar clothing market have lost their shops with all belongings and valuables in the devastating fire that damaged the entire market on April 4. As a result, it said, most of the traders and their allied dependents have become helpless and crippled with massive loans taken to buy stock ahead of Eid.Considering the tragedy, it is important to bring these traders within the purview of financial assistance in order for their quick rehabilitation, said the chamber body. DCCI President Barrister Md. Sameer Sattar urged the Bangladesh Bank for intervention by issuing relevant directives and guidelines to both commercial banks and non-banking financial institutions (NBFIs) so that they can come forward to support the fire victims. He has put forward some key recommendations on the broader spectrum which includes – waiver/reduction of interest on loans taken by these traders; providing interest free special term-loan or credit to the fire victims/business owners with low interest rate; deferring payment of loan installments; not classifying any such fire victims as loan defaulters during this time and bringing the fire victim traders under any relevant and existing refinancing schemes of the Government with easy terms and conditions. These fiscal benefits may be allowed subject to creating a database of the fire victims and actual need assessment of these victims, he said. The DCCI President believes that if Bangladesh Bank judiciously considers these proposals or recommendations for the victims, this will assist with the rapid rehabilitation of the affected businesses, also facilitating the livelihood of their employees.  

Bangladesh needs promotional campaigns in Turkiye to attract FDI (foreign direct investment), said Dhaka Chamber of Commerce and Industries (DCCI) President Rizwan Rahman. An 86-member business delegation of the Dhaka Chamber led by its president attended a forum on “Exploring trade and investment opportunities between Bangladesh and Turkiye” in Istanbul organized by Foreign Economic Relations Board of Turkiye (DEIK) on Thursday, according to a press release. Rizwan said Bangladesh is ready to take Turkish investment right at this moment. It needs to be figured out if there are any tariff and non-tariff barriers in terms of exporting to Turkiye, he added. He also stressed on knowledge transfer and technology transfer, research and knowledge sharing. He invited Turkish carpet makers to import quality jute from Bangladesh. He further termed RMG value chain, automotive, leather and footwear, pharmaceutical, plastic and infrastructure as the potential sectors for Turkish entrepreneurs in Bangladesh. Mentioning that export grew by 34.38% till June 2022 despite Covid situation, he said that Bangladesh has a good demographic dividend. The total working age people is 65% in Bangladesh. The Turkiye-Bangladesh Business Council was established in 2011 and the Bangladesh-Turkiye Business Forum was established in 2022. Moreover both the countries are member states of D8 and OIC. He also suggested forming a joint economic commission with an active participation of the private sector. During the meeting Chairman of DEIK/Turkiye-Bangladesh Business Council Onur Ozden said Turkish entrepreneurs are already in operation in Bangladesh and the others are very keen to explore these possibilities further. But the bilateral trade between these two countries should be increased and for that exchange of such business delegations would be the best option. Ambassador of Turkiye in Bangladesh Mostafa Osman Turan said Bangladesh is giving different fiscal and non-fiscal incentives to the foreign investors. B2B in that case plays a vital role for enhancing trade and investment. He also said that at present bilateral trade has crossed USD1.3 billion and it has a potential to grow more. Bangladesh’s market is a large market and Turkish investors may explore this opportunity. Infrastructure development, policy reforms and ease of business registration process will attract Turkish investors in Bangladesh, he added. Ambassador of Bangladesh in Ankara Mosud Mannan said private sectors of both the countries need to play a catalytic role. Despite there being a language barrier between the two countries but still it can be overcome, he added. Bangladesh government will establish 100 economic zones with different lucrative packages and that will foster foreign investors to come and invest in Bangladesh, hoped Mosud. More than 110 companies invited by DEIK joined for an interactive B2B session with the DCCI business delegation members after the business forum. At the end, a memorandum of understanding was signed between Dhaka Chamber of Commerce & Industry and Istanbul Gedik University. DCCI President Rizwan Rahman and President, Board of Trustees, Istanbul Gedik University Hulya Gedik signed the document on behalf of their respective organizations. Mohammad Nore-Alam, Consul General of Bangladesh to Istanbul was also present during the meeting.

The trade and investment opportunities between Bangladesh and Turkiye will see high prospects in future, said Dhaka Chamber of Commerce and Industries (DCCI) President Rizwan Rahman. An 86-member business delegation of Dhaka Chamber of Commerce & Industry (DCCI) is visiting Istanbul of Turkiye to explore new trade and investment opportunities and attended the Turkiye-Bangladesh business forum arranged by the Istanbul Chamber of Commerce on Wednesday, according to après release. Dhaka Chamber President Rizwan said the bilateral trade between Bangladesh and Turkiye was USD 871.55 million in FY2020-21 which is in favour of Bangladesh. “Turkiye is the 23rd largest export destination of Bangladesh. Turkiye is the 29th largest foreign investor in Bangladesh amounting USD30.51 million.” Bangladesh and Turkiye can work and advocate together to form an effective D-8 economic bloc, said Rizwan. He urged Turkiye to transfer state-of-the-art industrial technology. He also urged for capacity building of SMEs, research collaboration, strengthening agro-value chain and knowledge exchange. He later invited Turkish investors to invest in Bangladesh as well as import more from Bangladesh. In welcome note, Burhan Polat, Executive Board Member of the Istanbul Chamber of Commerce, said Bangladesh is one of the important countries in the South Asian region in terms of trade and investment and Bangladesh is maintaining a steady economic growth for the last few decades, he added. Bangladesh in recent times is doing better in the leather, pharmaceutical, RMG and light engineering sector, Burhan said. “Turkish market is one of the potential places for the Bangladeshi entrepreneurs.” To boost bilateral trade he urged to sign trade agreement. He also stressed on enhancing liaison between the private sectors of these two countries. Istanbul Chamber, one the largest trade organizations in the world with more than 6 lakh members, will be happy to extend its full out cooperation to the Bangladeshi investors to explore new investment opportunities in Turkiye, said its Executive Board Member. Later the business delegation members of Dhaka Chamber had an interactive business to business match making with more than 350 Turkish companies of different manufacturing and service sectors after the business forum. After that Rizwan Rahman had a separate meeting with the President of Istanbul Chamber of Commerce Şekib Avdagiç.

The whole world is now facing economic stress, inflation, fuel price hikes and supply chain disruptions and Bangladesh is not an exception, State Minister for Planning Shamsul Alam said Sunday. "Facts and figures show that Bangladesh's economy is on the right track and there is no reason to panic," he added. Shamsul Alam was speaking at the seminar "Bi-annual Economic State and Future Outlook of Bangladesh Economy: Private Sector Perspective" organised by the Dhaka Chamber of Commerce and Industry (DCCI). Bangladesh's manufacturing sector saw a 23 percent growth in the last fiscal year, the state minister said. "Last year Bangladesh sent about one million workers abroad and its positive impact on remittance inflow will be visible soon. Also, the full automation of the taxation system will reduce harassment as well as boost revenue," he added. Read: Bachelet assures UN’s continued efforts to ensure safe Rohingyas to Myanmar Shafiul Islam Mohiuddin, member of parliament and also a former president of the Federation of Bangladesh Chambers of Commerce and Industries, said despite global economic volatility, Bangladesh's reserve is adequate to cover import bills for the next five and half months. "And the ongoing crisis is temporary." Bangladesh Bank Chief Economist Habibur Rahman said they always consider the best balancing of policy guidelines to control the money circulation in the market. "We are also thinking of options for currency swap with a few countries like India and China," he added. Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the government needs to adjust fuel prices quarterly in line with the global rates. DCCI President Rizwan Rahman suggested expediting bilateral and multilateral comprehensive economic partnership agreements with selective countries and revising the import tariff structure. He also called for ensuring a flexible interest rate regime to reduce inflationary pressure and stabilise forex reserves.

A seminar here on Sunday heard complaints that excessive tax and customs harassment of businesspeople are obstructing the growth of Bangladesh’s foreign trade and hurting businesses. The seminar, organized by Dhaka Chamber of Commerce and Industry (DCCI) at its auditorium, reviewed the economy of Bangladesh during the second quarter of the January-June 2022 from the perspective of the private sector. DCCI President Rizwan Rahman gave a presentation on the topic in the seminar. Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the honest businesses involved in export and import of goods and services are mostly harassed at customs and National Board of Revenue. Hatem said they face a number of hurdles in doing honest business. “These are our main obstacles,” he noted. Read: Tackling inflation to protect people’s purchasing power key challenge: DCCI  "We need to call Chattogram Customs, Dhaka Customs and the Commissioner of North-South Customs almost every day to rescue the businesspeople from harassment. Transports and goods are detained on various pretexts. Why do they do it? It’s irritating." He also said customs and NBR instead should pursue the corrupt businesses and detect those who commit crimes. Shamsul Alam, state minister for planning, spoke as the chief guest, while former FBCCI president Shafiul Islam Mohiuddin was the special guest.

The recent fuel price hike and increase in gas price in June will have a domino effect on the entire economy, the Dhaka Chamber of Commerce and Industry (DCCI) said Sunday. The hikes will have an immediate negative impact on transportation, essential commodities and electricity, it added. The cumulative impact of the price hike of fuels will cause inflationary pressure on the economy by raising the operating cost of all energy-dependent businesses and industries. The government Saturday increased the prices of all refined fuel oil products by 42.5 to 52 percent despite the gradual fall in global energy prices. Read: Area-based industries to remain closed a day in a week to save gas, electricity: Nasrul Hamid Diesel is the most-consumed fuel in Bangladesh, accounting for 73 percent of the country's total fuel consumption. More than 90 percent of the transportation sector is dependent on diesel. Also, vehicles that are powered by octane and petrol will have to bear an increased cost, the DCCI said. "This will also push up the domestic freight costs, leading to higher prices of essentials across the country." Another major impact will be on the production cost of agricultural products as diesel is widely used for irrigation purposes. Recurring fuel and fertiliser price hikes will directly impact the production cost of agricultural products and gradually affect food security, the DCCI said. Read: Westerners have put us into the danger: PM’s Energy Advisor Manufacturing industries are already suffering due to electricity rationing as diesel and liquefied natural gas prices went high globally. So, the DCCI suggested framing out a long-term strategy, continuing onshore and offshore gas exploration, pursuing energy mix and cost and energy efficient electricity generation. It also recommended reducing the fuel price as soon as it comes down in the international market considering its negative impact on the economy.