Private sector should brace for challenges of LDC graduation

FBCCI president Md Jashim Uddin said Bangladesh's graduation from the Least Developed Country will strengthen the image of the country in the international arena along with creating huge trade and investment opportunities, reports UNB.

The president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) said this at the Annual General Meeting (AGM) of the organisation held at a convention hall in the capital on Wednesday.

Due to Covid-19 Pandemic, the AGM for the session 2020-2021 could not be held as per schedule. As a result, two separate AGMs for sessions 2020-2021 and 2021-2022 were held the same day.

Mr Jashim said, "Bangladesh will lose special trade privileges in several markets, including in Europe, one of the top export destinations of the country, as a result of the LDC graduation. The private sector has to face competition in maintaining the price and product quality. This is why emphasis should be given to research, innovation, and product diversification."

To make sustainable export trading, the government should initiate more bilateral trade agreements, including Free Trade Agreements (FTA), and Preferential Trade Agreements (PTA), he said.

He also emphasized obtaining certificates from various institutions, reducing complexity in its renewal, effective automation, and increasing the capacity of port management to attract more foreign investment.

"The Covid-19 pandemic and the Russia-Ukraine crisis have resulted in an abnormal increase in energy price, food price, agricultural production cost, industrial raw materials, parts, and transportation cost. High inflation is also occurring in currency exchange rates. Rising costs of doing business have made it difficult for local entrepreneurs to survive in the global competition," he added.

In such a situation, he suggested that the private sector should focus on increasing the use of technology in the industry, creating a skilled workforce, increasing efficiency in business management, and increasing the capacity to produce goods at competitive prices.

The FBCCI President urged the District Chambers and Associations to be more proactive to maintain productivity in this ongoing situation.

At the same time, he suggested identifying sector-wise problems and bringing them up at the policy-making level through FBCCI.

FBCCI former president Abdul Matlub Ahmad, former first vice president Mohammad Ali, Monowara Hakim Ali, former vice president Abu Alam Chowdhury, Dewan Sultan Ahmed, Helal Uddin, and others participated in the open discussion.