Online Desk:  In a seminar organized by the Dhaka Chamber of Commerce & Industry (DCCI) on February, Ashraf Ahmed, President of DCCI, emphasized the need for sustained efforts to achieve a trillion-dollar Smart economy.

Addressing the audience, Ahmed outlined key factors such as reducing the cost of doing business, improving ease of business, regulatory efficiency, infrastructure development, energy security, logistics enhancement, and ensuring private sector access to finance.

President Ashraf Ahmed presented a keynote paper at the seminar, underlining the importance of product and market diversification. He highlighted a targeted private sector investment of 27.4% of GDP in FY2024, an increase from 21.8% in FY2023.

Ahmed urged for policies considering the LDC graduation and proposed lower corporate tax, complete automation of taxation, expanded tax net, and reforms of SD and Vat act.

Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, served as the Chief Guest, emphasizing the fundamental changes in Bangladesh’s economy over the last decade.

He stressed the need for consistent policies to expedite private sector investment and foster foreign direct investment (FDI). Dr. Rahman also highlighted the importance of export diversification, value addition, and identified pharmaceutical and light engineering sectors as potential areas for growth.

Chief Economist of Bangladesh Bank, Dr. Md. Habibur Rahman, discussed global geo-political instability’s impact on essential prices. He announced the introduction of the Crawling Peg system to control the exchange rate and a roadmap to reduce industrial sector Non-Performing Loans (NPL) to 8% within two years. Bangladesh Bank will maintain a contractionary monetary policy until inflation reaches 6%.

Former DCCI President Shams Mahmud emphasized proactive policies for the sustainable future of the RMG sector. He urged the government to ensure affordable energy prices and uninterrupted gas supply for industries. Mahmud also called for expedited development of local import substitute industries post-LDC graduation, a rationalized taxation system, and continued support for CMSMEs.

Dr. Ashikur Rahman, Senior Economist at PRI, highlighted the negative impact of macroeconomic instability on the private sector and stressed the need for decisive action against NPL. He urged attention to the tax-GDP ratio, hovering around 10%, and emphasized skill development and financial sector reforms.

Research Director at PRI, Dr. Mohammad Yunus, pointed out extortion at retail markets as a factor contributing to inflation. He advocated for better coordination among BEZA, BEPZA, and Economic Zones Authority to attract FDI, suggesting the utilization of BSCIC’s industrial plots on a cluster basis.