Govt top brass meet businesses today

FE Team | Published: September 05, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The government top brass will sit with the country's private sector groups today (Wednesday) to discuss whether any steps taken by the interim administration caused "erosion of business confidence."
"We'll try to identify the government steps that might have caused lack of business confidence and take corrective measures," finance and planning adviser Mirza Azizul Islam said Tuesday about the much-talked-about gathering.
Referring to the main objective of the meeting, Islam noted that the government would try to strengthen the private sector's engagement in spurring growth, while also keeping the wheel of economy revolving.
The Ministry of Commerce has organised the meeting at Radisson Hotel in the city to be chaired by finance, planning and commerce adviser Mirza Azizul Islam.
Chief Adviser Fakhruddin Ahmed is expected to attend the meeting as the chief guest while army chief General Moeen U Ahmed has been invited to attend it as the special guest.
The meeting is being organised at a time when the caretaker administration's some steps, including the nationwide anti-graft drive, are said to have caused erosion in the confidence of the business people, resulting in a slump in investment and soaring inflation.
Talking to newsmen after a meeting with a visiting delegation of the International Monetary Fund, Islam said the government wants to maintain the economic growth, but cooperation from the private sector is also crucial.
"We want suggestions as to what more the government can do to bring about a greater intensification of the economic growth," the finance chief pointed out.
He said there is a perception of lack of business confidence, although the macroeconomic indicators show slow growth in one or two sectors like capital machinery import. "It needs to be analysed whether seasonality or lack of business confidence has caused the downturn."
Aziz, a former United Nations economist, said he had an analysis on the macroeconomic indicators like export, import, remittances and private sector credit. "The overall macroeconomic condition does not seem to be alarming."
He said private sector credit growth dropped by 3.0 per cent to 15 per cent in last fiscal year (2006-07) as compared to 18 percent in the previous fiscal.
By contrast, he added, industrial term loans rose to Tk 12.40 billion in FY07 from Tk 9.0 billion in FY06.
Replying to a question on the prices of essentials, the finance adviser said demand has outstripped the supply both in terms of imports and local production.
He argued that the rise in per capita income by 11.10
per cent had stimulated demand by at least 5-6 per cent. In addition, Islam added that the prices of all the items appreciated in the international market.
"The meeting is being organised to restore confidence of the business people and encourage them to invest to help bolster the economy," commerce secretary Feroz Ahmed said in a recent interview.
Chamber leaders, top businessmen, senior corporate executives, leading importers, bankers, economists and members of the civil society have been invited to share their views on a host of critical issues related to the economy with top policy-makers, commerce ministry officials said.
The meeting will take stock of the country's foreign trade, investment, price hike of essentials, inflation, impact of flood and growth against the backdrop of anti-corruption drive, they added.
Some 450 businessmen are expected to gather at the meeting.
President of International Chamber of Commerce, Bangladesh (ICC,B) Mahbubur Rahman, a director of the Federation of Bangladesh of Chambers of Commerce and Industry A Rouf Chowdhury and former president of Bangladesh Garment Manufacturers and Exporters Association Annisul Huq are scheduled to address the meeting on behalf of the business community, it is learnt.