Pay rise may put pressure on pvt sector: DCCI

FE Report | Published: December 25, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The proposed pay hike for government servants might put pressure on private sector for wage enhancement, the chief of a leading trade body said Wednesday.
He also feared another adversity from the political front.
"This (pay hike) will create pressure on the entrepreneurs in the private sector," said Hossain Khaled, president of the Dhaka Chamber of Commerce and Industry (DCCI) at a meet-the-press programme in its conference room.
In his exhaustive speech, the chamber chief also focused on the political issues -- as the situation is again taking in boiling heat.
He said the business community does not want to see any further political disturbance in the coming days in view of its worst impact on the economy.
Political disturbances cut the country's economic growth equivalent to 2.0 per cent of the GDP, the business-body chief told the press meet.
He said the entrepreneurs never want to see a situation faced in the later part of 2013.
"We urge both the ruling and opposition political parties to help the business community get rid of political disturbances," he said.
The trade body's clarion call came, incidentally, at a time when the rival politicians are again taking a stance for street confrontation.
Responding to a query, the DCCI chief said they will continue dialogue with political parties so that destructive political programmes are not taken.
"Our enterprising capacity is very good and we'll have to tackle the political problems. We've to move on," the chamber leader told the journalists.
He, however, said the private sector does not bother about the pay hike rather they want to enhance productivity and efficiency in their establishments.
Mr Hossain Khaled was of the view that the pay-hike proposal in the public sector is time-befitting in the context of rise in the prices of essentials on the domestic market.
"But, the government should not overlook the issue of inflation as many may raise the prices of essential kitchen items much ahead of implementing the new pay scale announced last Sunday," said the DCCI president, who is now in the third term for 2015.
The chamber feels the need of amending the VAT Act 2012.
"We do not want any act that will hurt business, we want its amendment," Mr Khaled said.
He said, "This is the time to accelerate the growth if we want to become a strong economy by 2030."
Mr. Khaled noted that Bangladesh is lagging far behind its potential growth due to political disturbance and other obstructions prevailing in the overall business environment.
"We've grown 6.0 per cent in GDP on average over the last one decade. It is supposed to be 10 per cent at this moment, though 6.0 per cent growth is very good in comparison with other countries," he said.
He sees boosting investment for higher economic growth still as a big challenge.
The government should take all necessary steps to attract domestic and foreign investment for packing further pace in the growth, the business leader said dwelling at length on the macroeconomic scenario.
The DCCI president said there is no alternative to raising investment to spur the economic growth.
Expressing frustration over the poor supply of power and gas, he said supply of power should be given to restore confidence among the investors.
The DCCI president was critical of the existing excessive interest on credits. He sees this as one of the key barriers to fresh investment.
He urged the government to bring down the bank rates to single digit apart from simplifying the loan-disbursement process.
The DCCI president pleaded for scrapping the commission system in non-life business as it squeezes the profitability of the insurance firms.
"The insurance authority scraped it few years back. We want the Authority should do it again for the interest of insurance firms and the shareholders," he said.
DCCI directors and former DCCI president M Sabur Khan were among others present at the press meet.
jasimharoon@yahoo.com