DCCI fears fallouts from BB monetary policy

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FE Report
The Dhaka Chamber of Commerce and Industry (DCCI) Sunday expressed the fear that the Bangladesh Bank (BB)-announced monetary policy would further increase the cost of doing business as the bank loans are expected to rise.
The DCCI also expressed the fear that it might further slow down the growth of the private sector.
The DCCI said in a press release, the private sector enterprises, particularly the SMEs, are already under pressure and affected due to frequent power outages, fragile and insufficient infrastructures, administrative bottleneck, political uncertainty, shortage of skilled manpower, increase in energy prices and, above all, lack of access to capital at reasonable interest rate.
Besides, the DCCI press release said, the increase of minimum customs duty on raw materials and machinery from 5 per cent to 10 per cent, in the national budget, has already placed the local manufacturers in a weaker position compared to their counterparts abroad.
It said, ultimately this policy may hinder the achievement of the goals of the Poverty Reduction Strategy Paper (PRSP) and the Millennium Development Goals (MDGs).
DCCI, however, urges the government to adopt a coordinated approach in respect of fiscal, monetary, trade and industrial and energy policies focusing on the strategy of private sector-led industrial development, export promotion, generation of gainful employment and poverty alleviation.
Any further increase in price of fuel, electricity and gas will add fuel to the burning prices of essentials directly, it observed.
The DCCI also suggested that the government should restore the supply chain and distribution channels, remove other supply side constraints, provide adequate agriculture inputs like fertiliser to farmers at reasonable prices strengthening vigilance to stop smuggling, stop system loss of power, gas and petroleum.