FE REPORT
Economists on Saturday stressed the need for boosting private sector confidence by ensuring necessary reforms and good governance to foster sustainable economic growth in the country.
They also emphasised on stability in economic reform while considering the impact of global macroeconomic factors on Bangladesh, including inflation, private investment, and trade.
The economists and trade body leaders were speaking at a seminar titled "Biannual Economic State and Future Outlook of Bangladesh Economy (January-June FY2023-24): Private Sector Perspective".
The Dhaka Chamber of Commerce and Industry (DCCI) organised the event in the city, according to a press release.
Taking part in the discussion, former BIDS Director General Dr KAS Murshid said there is no alternative to ensuring transparency, accountability, and governance to boost the private sector's confidence.
He warned against focusing solely on GDP growth, urging more attention to social sectors such as health, education, and food security.
DCCI President Ashraf Ahmed presented the keynote, highlighting critical economic indicators from January to June this year.
He discussed challenges in sectors such as agriculture, garments, leather, pharmaceuticals, and the CMSMEs (cottage, micro, small, and medium enterprises).
Mr Ahmed also highlighted the post-LDC (Least Developed Country) transition challenges and called for policy reforms to mitigate its financial implications.
He pointed out that while the central bank has implemented measures to control interest and exchange rates, these need reassessment in light of easing inflation.
He also stressed that the key to maintaining exports is ensuring stable energy supplies, boosting production, and easing balance of payment complications.
The DCCI president also urged the government to improve the banking sector performance, especially in managing bad loans, while calling for mid-term policies to create a business-friendly environment.
He also highlighted the difficulties faced by the CMSME sector, which continues to struggle due to high interest rates and a strong exchange rate. He also stressed on easing the contractionary monetary policy if inflation is manageable, and emphasised the importance of increasing credit flow to this sector for overall economic growth.
Mr Ahmed also called for reforms in the logistics and supply chain management system, stressing the need for better storage capacity and modern market management to control inflation.
Dr Abu Yousuf, Executive Director of RAPID, stressed the need for accurate sector-based statistics to formulate effective policies.
He emphasised on tapping the potential of the leather industry, which could yield $10 billion in exports with improved compliance.
Dr Yousuf also pointed out the need for better coordination between monetary policy, budget management, and market regulations.
Bangladesh Bank Director (Research) Dr Md Salim Al Mamun emphasised the importance of maintaining macroeconomic stability, especially in light of recent floods and disruptions in the supply chain. Speakers at the seminar reached a consensus on comprehensive reforms to enhance Bangladesh's economic resilience.
They said that continued reforms in the banking sector, investment in new industries, and improved governance are the key to achieving long-term economic stability, which had been left in a haphazard state during the fascist regime.
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