DHAKA, Federation of Bangladesh Chambers of Commerce
and Industry (FBCCI) president Mahbubul Alam today said that long-term
business and industrial policy are needed for stability and growth.
Mahbubul said this while speaking at a discussion hosted by the American
Chamber of Commerce in Bangladesh (AmCham Bangladesh) titled “Budget and
Business Outlook” as the chief guest held at a city hotel.
The discussion brought together key figures to analyze the implications of
the recent national budget for the Bangladeshi business community.
A panel of experts including, Muhammad Abdul Mazid, former chairman of the
National Board of Revenue (NBR), Nihad Kabir, former president of the
Metropolitan Chamber of Commerce Industry (MCCI), Md. Moinul Haq, an AmCham
EC member, Ashraf Ahmed, president of the Dhaka Chamber of Commerce and
Industry (DCCI) and Reaz Islam, chief executive officer (CEO) of LR Global
Bangladesh Asset Management Company spoke at the event.
The panel discussion was moderated by Dr. M. M
asrur Reaz, chairman of Policy
Exchange Bangladesh.
Terming inflation as a major concern, the FBCCI president said, “We must have
a long-term policy for doing business and run industry. We frequently change
our policy. There should not be overnight change with an SRO by revenue
board,”
The panel discussions focused on the budget’s potential impact on various
sectors, providing insights and recommendations for businesses navigating the
new fiscal landscape. Key areas of focus included sector-specific
allocations, potential tax changes, and the overall economic climate
envisioned by the budget.
Dr. M Masrur Reaz presented a brief overview of the budget, noting its
contraction nature aimed at reducing government spending, which is seen as
necessary in the current economic climate.
He highlighted both positive and negative aspects of the budget in terms of
containing inflation and foreign exchange demands.
However, the panelists also raised criticisms, pointing at inadequate
spending on critical
social infrastructure sectors, a reduction in
allocations for physical infrastructure, including transport and energy, and
overly optimistic projections for key economic indicators like inflation, GDP
growth, investment, and tax revenue levels for FY25.
The budget’s high borrowing target of Taka 160,950 crore (64% of total
budgetary resources) is expected to put pressure on domestic liquidity and
crowd out the private sector from the banking system.
The event concluded with a lively question and answer session, allowing
participants to delve deeper into specific concerns and seek clarification on
budgetary details, providing valuable context for businesses seeking to adapt
and thrive under the new fiscal policies.
Masrur in his short speech also emphasized the need for joint efforts of the
government, policymakers, and the central bank to control inflation and
implement effective measures. The speakers also highlighted that the budget
formulation and implementation should be handled by separate
entities.
The discussion also addressed challenges such as a declining foreign exchange
reserve, the balance of payment deficit, energy sector demand-supply
imbalances, and a struggling banking sector.
AmCham recommended prioritizing foreign exchange reserves, tax and VAT
policy, social safety nets, and renewable energy. The event was attended by
numerous business leaders, foreign dignitaries, media representatives, and
other guests.
Rubaba Dowla, AmCham Bangladesh Committee Member and Country Managing
Director for Bangladesh, Nepal, and Bhutan at Oracle Limited, offered the
vote of thanks.
Source: Bangladesh Sangbad Sangstha