FBCCI for partial privatisation of SoEs thru' share floatation

---

Jasim Uddin Haroon
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in its observation of the draft Industrial Policy 2009 relating to privatisation of state-owned enterprises (SoEs) suggested partial privatisation through floating of shares that may create an environment for revitalizing loss-making enterprises.
The FBCCI also made observations on other aspects of the policy and prepared a report with their suggestion that would be presented to the government by next week.
The FBCCI board of directors met Saturday to discuss about the recommendations to be made on the draft industrial policy.
On privatisation of the state-owned enterprises (SoEs), FBBCI observation reads: "Refraining from privatizing SoEs may not be appropriate given the fact that loss making industry will continue to be a tax burden to the government bearing in mind that SoE's plays an important role in employment generation."
About the legal status of the policy, FBCCI suggested that in order to implement it properly, the policy could be adopted by parliament to give it the required strength.
FBCCI suggested that infrastructure, waste recycling activities, testing laboratories, technical and vocational institutes, research and development companies and ship building industry should be brought under thrust sector.
The policy proposes to reduce the number of thrust sector from 32 to 18.
The FBCCI wants support and incentives for industries set up in Rajshahi, Khulna, Sylhet and Barisal divisions and three hilly districts for manufacturing products that are not produced in Bangladesh -100 per cent tax exemption for five years may be considered.
FBCCI study said: "In order to protect local industry from unfair competition of imported merchandise, adequate protection through anti-dumping, countervailing and safeguard measures should be ensured."
The apex chamber body said there is need to fix a target for investment every year for reaching the final target set by the policy.
For this, the FBCCI proposed that Bangladesh Bank in consultation with the Board of Investment could declare the annual target for investment and formulate plan of action to fulfill the yearly target.
Regarding participation and development of women entrepreneurships, the FBCCI said women entrepreneurs should be given priority in all programmes.
"Small and medium size entrepreneurs with only women proprietors and with at least 50 per cent women employees should be given tax holiday for 10 years."
While talking to the FE, Obaidur Rahman, a director of the FBCCI said " We want a professional paper which will have legal status and play a positive role in promoting the industrial sector."
He said industrial policy should be pro-growth to keep pace with the neghbouring nations saying: "All are going ahead while we are lagging behind."
However, FBCCI welcomes the establishment of Special Economic Zones (SEZs) and industrial parks (IPs) saying : "The export oriented industries to be set up in SEZs and IPs should be given same facilities as given in the export processing zones.
It also appreciates the proposal to introduce a new and separate SME policy by 2009.