The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has suggested that the government take necessary steps to stabilise foreign exchange reserve, manage inflation and enhance revenue earnings to overcome the country's emerging socioeconomic challenges following the global conflicting situation, especially in the Middle East.
Besides, ensuring proper supply of electricity and gas, lessening cost of doing business, making efforts to find new markets for exports, promoting economic diversification by revisiting the incentive structure, and protection of small businesses and low-income people are also necessary.
The country's elite business chamber made the suggestion in its 'Review of Economic Situation in Bangladesh for January-March period (Q3) of the fiscal year 2023-24.
Citing experts, the MCCI said the brunt of the conflicting situation in the world especially in the Middle East may have some effect on the country's economy.
"To overcome the situation, the government took quick and decisive measures to address the economic fallout. The government also needs to take more actions to stable foreign exchange reserve, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, reduce the cost of doing business, make efforts to find new markets for exports, promote economic diversification by revisiting the incentive structure, and protect small businesses and low-income people," the leading business chamber said in its review.
The MCCI, however, said the Bangladesh economy has been showing some signs of improvement in the quarter under review (Q3 of FY24).
Mentioning exports and imports as two important drivers of the economy, it said amid the present situation, both the areas had done comparatively better. However, there remained slowdown in external demand, weak remittance inflow, shortfall in revenue collection and slow public expenditure, rise in inflation, depreciation of the Taka, a decline in foreign exchange reserves, unemployment situation and low investment in recent months, it said.
The MCCI, Dhaka has also projected that some economic indicators of the country might see an upward trend in the next two months of the current fiscal year.
The country's export earnings, which are expected to be US$ 4.42 billion for the month of this month (may) while the amount would stand at $4.81 billion in next June. Besides, the country's import value would also increase to $5.32 billion and $5.38 billion in the May and June respectively of the current fiscal, The MCCI projected in its review.
Besides, the volume of inward remittances is expected to stand at $1.12 billion by the end of this month and $2.19 billion in June next.
The trade organization also projected the rate of point-to-point inflation is likely go up marginally to 9.8 per cent from 9.74 per cent in April last while it might reach 9.85 at the end of June next.
© 2024 - All Rights with The Financial Express
