Dhaka: General Economics Division (GED) Member of the Planning Commission, Dr. Monzur Hossain, highlighted the stability in Bangladesh’s macro economy, citing foreign reserves reaching US$30 billion. He shared this during a seminar organized by the Dhaka Chamber of Commerce and Industry (DCCI) at the DCCI auditorium.
According to Bangladesh Sangbad Sangstha, Dr. Monzur expressed concern over inflation, particularly due to rising rice prices, and emphasized the need to control these prices to significantly reduce inflation. He underscored the importance of maintaining an investment-friendly environment alongside inflation control.
Dr. Monzur advocated for boosting private sector credit flow and suggested that foreign exchange rates should be more market-driven. He reiterated the government’s positive outlook on LDC graduation but stressed the need for stronger preparedness and productivity enhancement, alongside restructuring the banking sector and focusing on sustainable economic transformation.
Dr. Mustafizur Rahman from the Centre for Policy Dialogue (CPD) noted that while inflation has declined, high overall price levels continue to erode consumers’ purchasing power. He called for extending facilities enjoyed by the RMG sector to other export sectors and emphasized anti-corruption measures and improved digitalization to increase the tax-to-GDP ratio.
Dr. AK Enamul Haque of the Bangladesh Institute of Development Studies (BIDS) mentioned the economy’s relative resilience amid strong headwinds but pointed out the need for long-term sustainability. He stressed fighting corruption beyond mere transfers and highlighted the mismatch between import and export growth, along with weak agricultural growth.
Mahmud Salahuddin Naser from Bangladesh Bank (BB) addressed the tight monetary policy and the central bank’s efforts to ensure a conducive environment for private sector investment. He noted that lending rates might be reduced as inflation decreases and pointed out energy shortages as additional hindrances to investment.
Nawshad Mustafa, also from BB, discussed the unfavorable investment climate due to various challenges but emphasized collaborative efforts to create a better environment. He advocated for digital loan disbursements and SME development.
Md. Rabiul Islam from the Asian Development Bank (ADB) stressed enhancing trade connectivity and reducing transport costs, along with greater use of man-made fibers in RMG and adherence to standards in other sectors.
DCCI President Taskeen Ahmed highlighted the need for additional preparation time for LDC graduation, noting global economic slowdowns and the need for a robust transition strategy. He called for more competitive corporate tax rates, stability in the banking sector, and measures to accelerate exports.
Taskeen Ahmed also noted the reduction in US tariffs on Bangladeshi products and suggested further tariff cuts to boost export competitiveness. He recommended a focus on high-quality production, strategic planning, and ensuring ESG compliance to enhance export capabilities.
Members of the DCCI Board of Directors and relevant stakeholders participated in the seminar, contributing to the discussion on Bangladesh’s economic future.