Govt may reorder export strategy, create emergency fund
Wednesday, 22 October 2008
Naim-Ul-Karim
Bangladesh, fearing the fallout of global economic hurricane, may consider reordering its export strategy and creating an 'emergency fund' to prop up the country's export-oriented sectors.
They said the commerce ministry has been entrusted with task of 'reordering' the country's export strategy, making it timely to help exporters weather the economic woes.
An official, involved in drafting the strategy, told the Financial Express that the ministry has convened a high-level meeting early next month to share ideas on how to better the strategy.
"It's a crucial exercise. And we'll be exchanging views with chamber leaders, top exporters, think tanks and experts to determine the next course of action," he said.
Official said the commerce ministry accelerated the move after chief adviser Dr. Fakhruddin Ahmed on Monday called upon all stakeholders to sit together and set strategies to protect the country's exports from any shocks of the global financial crisis.
"Please sit together, discuss all details and strike upon the appropriate strategy," Dr Ahmed told the inaugural ceremony of the launch of 'Knitwear Exposition 2008' in the city.
Officials said the commerce ministry will dispatch the draft strategy paper to the top policy makers, detailing the possible threats to the economy and measures that could be effective in staving off any major crisis.
An official of the commerce ministry said Tuesday the strategy is being set keeping both challenges and potentials of the economy in mind.
He said the ministry has already had a meeting with business leaders and think tanks as part of the exercise for preparing the strategy.
He noted that the ministry is outlining advantages and disadvantages of the Bangladesh economy stemming from the worst global financial crisis since the Great Depression of 1930s.
On the advantages, the official said some experts opined that the global financial crisis will otherwise benefit Bangladesh.
"The other side of the coin is that Bangladesh may not be affected rather it will create a new opportunity for our exports as because the consumers will go for low-priced commodities like that the country exports," says a working paper to be circulated in November meeting.
An official said they will also suggest the government top brass to form a committee headed by vice chairman of the Export Promotion Bureau (EPB) to monitor the situation as unfolds and recommend steps needed to withstand the possible crisis.
"We will also suggest in the working paper that Bangladesh Bank will monitor the situation and if necessary will go for making amendments to the foreign exchange policy," he added.
The draft working paper said investment in Bangladesh may go down as US, one of the leading financers of multilateral agencies, is now beset with financial crisis.
Bangladesh, fearing the fallout of global economic hurricane, may consider reordering its export strategy and creating an 'emergency fund' to prop up the country's export-oriented sectors.
They said the commerce ministry has been entrusted with task of 'reordering' the country's export strategy, making it timely to help exporters weather the economic woes.
An official, involved in drafting the strategy, told the Financial Express that the ministry has convened a high-level meeting early next month to share ideas on how to better the strategy.
"It's a crucial exercise. And we'll be exchanging views with chamber leaders, top exporters, think tanks and experts to determine the next course of action," he said.
Official said the commerce ministry accelerated the move after chief adviser Dr. Fakhruddin Ahmed on Monday called upon all stakeholders to sit together and set strategies to protect the country's exports from any shocks of the global financial crisis.
"Please sit together, discuss all details and strike upon the appropriate strategy," Dr Ahmed told the inaugural ceremony of the launch of 'Knitwear Exposition 2008' in the city.
Officials said the commerce ministry will dispatch the draft strategy paper to the top policy makers, detailing the possible threats to the economy and measures that could be effective in staving off any major crisis.
An official of the commerce ministry said Tuesday the strategy is being set keeping both challenges and potentials of the economy in mind.
He said the ministry has already had a meeting with business leaders and think tanks as part of the exercise for preparing the strategy.
He noted that the ministry is outlining advantages and disadvantages of the Bangladesh economy stemming from the worst global financial crisis since the Great Depression of 1930s.
On the advantages, the official said some experts opined that the global financial crisis will otherwise benefit Bangladesh.
"The other side of the coin is that Bangladesh may not be affected rather it will create a new opportunity for our exports as because the consumers will go for low-priced commodities like that the country exports," says a working paper to be circulated in November meeting.
An official said they will also suggest the government top brass to form a committee headed by vice chairman of the Export Promotion Bureau (EPB) to monitor the situation as unfolds and recommend steps needed to withstand the possible crisis.
"We will also suggest in the working paper that Bangladesh Bank will monitor the situation and if necessary will go for making amendments to the foreign exchange policy," he added.
The draft working paper said investment in Bangladesh may go down as US, one of the leading financers of multilateral agencies, is now beset with financial crisis.