Better system of trade financing should be introduced: Muhith
Sunday, 9 September 2012
FE Report
Finance Minister AMA Muhith Saturday said lack of coordination among ministries and agencies affects business activities.
He also said there is need for fixation of the country's trade volume target at 70 per cent of GDP (gross domestic product) in the next five years.
The finance minister was speaking as chief guest at a consultative workshop on comprehensive trade policy of Bangladesh organised by the Ministry of Commerce at a local hotel in the city.
Commerce secretary Ghulam Hossain was moderator of the programme.
Commerce minister Ghulam Muhammed Quader, charge de affaires of the delegation of the European Union to Bangladesh Andrew Barnard, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) AK Azad attended the programme as special guests.
Mahbubur Rahman, president of International Chamber of Commerce, Bangladesh (ICC,B), director of Bangladesh Garment Manufacturers and Exporters
Association (BGMEA) Arshad Jamil (Dipu) and senior research fellow of the Centre for Policy Dialogue (CPD) Dr Khondaker Golam Moazzem were panel discussants.
Director General of WTO Cell of the ministry of commerce Amitava Chakraborty, member of the Bangladesh Tariff Commission Dr Mostafa Abid Khan and key expert in trade policy Christopher Broxholme presented three separate papers on the issue.
Mr Muhith, however, said coordination is very much important in the formulation of a medium-term trade policy having long-term targets.
He said there is a need for giving more attention to attracting FDI (foreign direct investment), PPP (Public-Private-Partnership) and SMEs in the comprehensive trade policy.
He said manufacturing sector is very important in international trade, besides agriculture and industry.
He said standarisation of products should be kept in mind while finalising the policy.
He said thrust sectors should not enjoy facility for an indefinite period. "They should be fixed in two or three-year timeframe."
Mr Muhith said Bangladesh should introduce a better system of trade financing and the issue is important in the context of present situation.
Speaking as special guest, commerce minister GM Quader said there is a real governance problem in the country compared to other developing countries.
He said: "We're giving priority to trade as an engine of growth to generate more income, increase per capita income and overall growth of the country."
Speaking at the programme, FBCCI president AK Azad said if Bangladesh can formulate a comprehensive trade policy and implement that it will create huge employment opportunities in the country.
He said BoI has one-stop service, adding: "It is in paper."
He also underscored the need for tapping the huge export potentialities and said the export volume of around US$ 24 billion is insignificant compared to countries like Indonesia, Malaysia and Singapore.
The government should be more dynamic to provide proper services instead of harassing the business people.
International Chamber of Commerce-Bangladesh (ICC-B) president Mahbubur Rahman said it would be very much important for the government on how to coordinate several ministries under the proposed trade policy.
"Unless it is backed by law, it would be of no use to us," he added.
ICC, B chief said trade policy is a new concept in the country.
He said: "During Pakistan era, even in last 40 years, I did not hear about it."
Mr Mahbubur Rahman said BoI (board of Investment) has the authority to order for a new telephone line to promote the business.
"If BoI's issues any letter to provide new connection, the BTRC will not follow it," he added.
He also said Boi's order to give new power connection to promote business activities will also be ignored by the power authority.
He said there is fiscal incentive to promote manufacturing or other sectors.
"If anyone invests on the basis of available opportunity, in the middle of his project, he might get a SRO regarding the withdrawal of such facility."
Another panel discussant Khondoker Golam Moazzem of the centre for Policy Dialogue (CPD) said there is need for incorporation of future tariff issue.
He said relationships among the ministries should be incorporated in the comprehensive trade policy.
Bangladesh should promote its strategic trade policy where the use of tariffs would be a very important tool.
Commerce secretary Ghulum Hossain in his welcome address said Bangladesh has been pursuing open economy for long adding: "There is a debate over whether we are in right path or not."
He said Bangladesh will become a middle income earning country by 2021 adding: "Are we pursuing right path to achieve that target."
Mr Hussain said trade plays important role not only in exports and imports but help create employment and alleviate poverty.
He said there is a debate over whether the trade policy will be a vision or law.
In an open discussion session, former commerce secretary Sohel Ahmed Chowdhury said comprehensive trade policy should not be confined to the vision 2021.
"This is political issue of the present government. So the next government will not care about the policy."
He said trade policy should be for longer term instead of confining it within 2021 target.
Speaking at the programme, chief executive officer of the Bangladesh International Arbitration Centre Dr Toufiq Ali said: "Pick one or two specific issues in the policy."
He said: "Try to coordinate" Dr Toufiq Ali, also a former permanent representative to WTO, said that the proposed trade policy should consider industrial policy and how to deal with it.
Bangladesh Tariff Commission chairman Md Shahab Ullah said the new trade plicy should be named as integrated trade policy instead of the comprehensive trade policy.
Director General of WTO Cell of the Ministry of Commerce Amitava Chakraborty, Bangladesh Tariff Commission member Mostafa Abid Khan and Trade Policy key expert Christopher Broxholme made separate presentations on the CTP at the workshop.
Chief executive officer of the Bangladesh Foreign Trade Institute Dr Md Mozibur Rahman summed up the programme.
The government, however, finalised a draft on the comprehensive trade policy mentioning vision, objectives and its content.
Finance Minister AMA Muhith Saturday said lack of coordination among ministries and agencies affects business activities.
He also said there is need for fixation of the country's trade volume target at 70 per cent of GDP (gross domestic product) in the next five years.
The finance minister was speaking as chief guest at a consultative workshop on comprehensive trade policy of Bangladesh organised by the Ministry of Commerce at a local hotel in the city.
Commerce secretary Ghulam Hossain was moderator of the programme.
Commerce minister Ghulam Muhammed Quader, charge de affaires of the delegation of the European Union to Bangladesh Andrew Barnard, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) AK Azad attended the programme as special guests.
Mahbubur Rahman, president of International Chamber of Commerce, Bangladesh (ICC,B), director of Bangladesh Garment Manufacturers and Exporters
Association (BGMEA) Arshad Jamil (Dipu) and senior research fellow of the Centre for Policy Dialogue (CPD) Dr Khondaker Golam Moazzem were panel discussants.
Director General of WTO Cell of the ministry of commerce Amitava Chakraborty, member of the Bangladesh Tariff Commission Dr Mostafa Abid Khan and key expert in trade policy Christopher Broxholme presented three separate papers on the issue.
Mr Muhith, however, said coordination is very much important in the formulation of a medium-term trade policy having long-term targets.
He said there is a need for giving more attention to attracting FDI (foreign direct investment), PPP (Public-Private-Partnership) and SMEs in the comprehensive trade policy.
He said manufacturing sector is very important in international trade, besides agriculture and industry.
He said standarisation of products should be kept in mind while finalising the policy.
He said thrust sectors should not enjoy facility for an indefinite period. "They should be fixed in two or three-year timeframe."
Mr Muhith said Bangladesh should introduce a better system of trade financing and the issue is important in the context of present situation.
Speaking as special guest, commerce minister GM Quader said there is a real governance problem in the country compared to other developing countries.
He said: "We're giving priority to trade as an engine of growth to generate more income, increase per capita income and overall growth of the country."
Speaking at the programme, FBCCI president AK Azad said if Bangladesh can formulate a comprehensive trade policy and implement that it will create huge employment opportunities in the country.
He said BoI has one-stop service, adding: "It is in paper."
He also underscored the need for tapping the huge export potentialities and said the export volume of around US$ 24 billion is insignificant compared to countries like Indonesia, Malaysia and Singapore.
The government should be more dynamic to provide proper services instead of harassing the business people.
International Chamber of Commerce-Bangladesh (ICC-B) president Mahbubur Rahman said it would be very much important for the government on how to coordinate several ministries under the proposed trade policy.
"Unless it is backed by law, it would be of no use to us," he added.
ICC, B chief said trade policy is a new concept in the country.
He said: "During Pakistan era, even in last 40 years, I did not hear about it."
Mr Mahbubur Rahman said BoI (board of Investment) has the authority to order for a new telephone line to promote the business.
"If BoI's issues any letter to provide new connection, the BTRC will not follow it," he added.
He also said Boi's order to give new power connection to promote business activities will also be ignored by the power authority.
He said there is fiscal incentive to promote manufacturing or other sectors.
"If anyone invests on the basis of available opportunity, in the middle of his project, he might get a SRO regarding the withdrawal of such facility."
Another panel discussant Khondoker Golam Moazzem of the centre for Policy Dialogue (CPD) said there is need for incorporation of future tariff issue.
He said relationships among the ministries should be incorporated in the comprehensive trade policy.
Bangladesh should promote its strategic trade policy where the use of tariffs would be a very important tool.
Commerce secretary Ghulum Hossain in his welcome address said Bangladesh has been pursuing open economy for long adding: "There is a debate over whether we are in right path or not."
He said Bangladesh will become a middle income earning country by 2021 adding: "Are we pursuing right path to achieve that target."
Mr Hussain said trade plays important role not only in exports and imports but help create employment and alleviate poverty.
He said there is a debate over whether the trade policy will be a vision or law.
In an open discussion session, former commerce secretary Sohel Ahmed Chowdhury said comprehensive trade policy should not be confined to the vision 2021.
"This is political issue of the present government. So the next government will not care about the policy."
He said trade policy should be for longer term instead of confining it within 2021 target.
Speaking at the programme, chief executive officer of the Bangladesh International Arbitration Centre Dr Toufiq Ali said: "Pick one or two specific issues in the policy."
He said: "Try to coordinate" Dr Toufiq Ali, also a former permanent representative to WTO, said that the proposed trade policy should consider industrial policy and how to deal with it.
Bangladesh Tariff Commission chairman Md Shahab Ullah said the new trade plicy should be named as integrated trade policy instead of the comprehensive trade policy.
Director General of WTO Cell of the Ministry of Commerce Amitava Chakraborty, Bangladesh Tariff Commission member Mostafa Abid Khan and Trade Policy key expert Christopher Broxholme made separate presentations on the CTP at the workshop.
Chief executive officer of the Bangladesh Foreign Trade Institute Dr Md Mozibur Rahman summed up the programme.
The government, however, finalised a draft on the comprehensive trade policy mentioning vision, objectives and its content.