Local market still highly protected: Mirza Aziz

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FE Report
Finance and planning adviser Mirza Azizul Islam Thursday brushed aside the statement made by business leaders relating to further liberalisation of the country's trade on the suggestion of a multilateral donor agency saying that the local market is still highly protected.
"I know that our market is still highly protected………we are not bothered with the claim of businessmen," the finance and planning adviser told reporters after a meeting with visiting International Monetary Fund (IMF) South Asian executive director Adarsha Kishore.
The businessmen said it would be wrong if government takes IMF advice on further liberalisation of trade.
While dilating on the 'Safeguard Body', he said such a body can be formed as per World Trade Organisation (WTO) rules after reviewing the existing protection being enjoyed by local entrepreneurs.
Protection in the form of various duties and taxes accounts for nearly 50 per cent, he said adding that the actual effect of the levies would be much more.
Local trade bodies, however, Wednesday in a strongly worded joint statement protested the government inertia to institute a 'Safeguard Body' following suggestion by the IMF.
The IMF suggested in a recent letter to the finance adviser to liberalise trade further and opposed the government move to institute a 'Safeguard Body' in accordance with the WTO rules, they said.
The local trade bodies criticised the role of the Washington-based multilateral lending agency and its interference in the country's economic management and urged the government to ignore its prescriptions.
IMF South Asian executive director Adarsha Kishore told reporters, formulation of the 'Safeguard Body' will be decided solely by the country and its policy makers.
"The decision will be taken by Bangladesh, not by the IMF," he said.
The IMF official, who also met with the central bank governor on the same day, however, said they have already made their suggestion on the issue.
He also said his discussion with the finance and planning adviser was basically on the pace and quality of reforms which has been executed by the caretaker administration.
The finance and planning adviser said price hike of gas, power and fertiliser is still under consideration of the present government. He said various calculations on the issue are being reviewed.
The leaders of the country's main trade bodies said the IMF advice for upward adjustments in domestic prices of natural gas, if implemented, would be suicidal for the economy.