Businesses meet finance adviser, push for banking, taxation reforms

Leading local businesses have suggested actionable steps like reforming the banking sector and tax-revenue administration, and maintaining the law-and-order situation for early return of a congenial business atmosphere.
They also proposed reforms in trade bodies and energy sector, extending the country's graduation timeline, building capacity of Bangladesh missions abroad and pursuing economic diplomacy to identify new export markets.
The businesses sought prompt measures to address global apparel buyers' concern to restore their confidence in outsourcing from here.
The suggestions were made and buyers' concern also aired when an International Chamber of Commerce-Bangladesh (ICCB) delegation, led by ICCB president Mahbubur Rahman, met finance and commerce adviser Dr Salehuddin Ahmed at the latter's ERD office in the capital on Tuesday.
ICC vice-president AK Azad, executive board members Mir Nasir Hossain and Tapan Chowdhury, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Khandoker Rafiqul Islam, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem, among others, were present.
H&M Bangladesh country manager Ziaur Rahman, M&S regional head for Bangladesh and India Shwapna Bhowmick and Inditex Bangladesh country head Javier Carlos Santonja Olcina also attended the event.
Talking to reporters later, adviser Ahmed said, "I have urged the business community to conduct their operations honestly and transparently. If they do so, the government will provide full support."
He emphatically said there would be no tolerance for under-the-table dealings.
If the business community takes one step forward in ethical practices, Mr Ahmed says, the government will take two steps to support them.
"We must create a more conducive and easier business environment. Without this, the private sector won't be encouraged to invest," he said, terming trade and business 'important' not only for income, but also for job creation.
When asked about loan assistance, Mr Ahmed said the Bangladesh Bank would take necessary measures to address this issue.
ICCB vice-president Azad said top three global apparel buyers-H&M, M&S and Inditex-at the meeting raised concern over prevailing law-and-order situation, delays in sample collection from airport and congestion in Chattogram port.
He called for improving law-and-order situation and engaging a spokesperson with whom buyers could contact. Otherwise, buyers might shift to other countries.
According to BKMEA president Mohammad Hatem, they need seven to eight days to collect apparel samples from Dhaka airport, while competing countries collect and send back samples before them.
The business leaders have also requested the interim government to take measures so that the country's graduation time is extended for at least three years to 2029 from 2026.
Talking to the FE, a buyer's representative said the police were yet to be fully back in business, while the industrial police were still missing.
Recently, representatives of at least four brands faced mugging incidents, while travel restrictions for Bangladesh also discouraged foreign buyers to plan trips here.
All these resulted in the loss of buyers' confidence, the representative said, adding: "Usually, buyers come and see products and place business. In many cases, we're losing that opportunity as timeline for apparel is very short."
He suggested that the industrial police should be in place without delay.
In a separate meeting with Mr Ahmed the same day, the Rafiq-led BGMEA made an eight-point demand.
The apparel apex body demanded that the government grant soft loan to recoup the losses caused due to operational disruptions during the recent uprising-induced holidays and severe flood.
"We have sought soft loan for one month as cash-flow assistance to pay workers wages as factories couldn't operate in full swing for 15-16 days during student protests while shipments weren't made for four to five days due to floods," said the BGMEA chief.
Responding to a query, Mr Rafiq said they sought Tk 18-19 billion as soft loan for one month, which would be repaid in one year.
Other demands included reinstating the central bank's regulations for loan default from three to six instalments, and ceasing to delink utility connections at least for next three months to have a breathing space.
BGMEA vice-presidents Abdullah Hill Rakib, Asif Ashraf and Miran Ali, among others, were present there.

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