Govt taking positive steps to revive economy

The government’s first six months may not be enough to make a comprehensive assessment of its performance, but several initiatives to facilitate business, support the private sector and revive economic activity are encouraging, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem.

“We believe six months is not enough time to evaluate a government. However, the new government has taken several initiatives to make business operations easier, support the private sector and restore momentum in the economy,” Hatem said.

He said several measures taken by Bangladesh Bank to support the private sector were important. In particular, he welcomed the incentive package for reopening sick, partially closed and closed factories through refinancing facilities.

He also appreciated the government’s decision to allow partially export-oriented exporters and exporters without bonded warehouse facilities to import raw materials duty-free against bank guarantees.

“This will be very helpful for our exporters and will make it easier for them to operate their businesses,” the BKMEA president said.

Hatem also noted that some positive changes had been made in tax policy, saying such measures would help create a more business- and investment-friendly environment.

However, he identified gas and power shortages as the biggest challenges facing the industrial sector at present.

“These problems cannot be solved in the short term because the government inherited these challenges from the previous government. Nevertheless, the Prime Minister and the Energy Minister have taken several immediate short-term initiatives to address them,” he said.

According to Hatem, the government has also sought recommendations from business organisations and business leaders on how to resolve the energy crisis.

He said the government had given assurances of a long-term solution to the energy crisis, while the Finance Minister and the Commerce Minister were also working sincerely on the issue.

The government has imported some LNG from the international spot market as part of its efforts to ease the crisis, he said.

However, Hatem noted that there was no “shortcut” to resolving the LNG crisis. Establishing a new floating storage and regasification unit (FSRU) could take around two years, he said.

As part of its long-term plan, the government has decided to establish another FSRU, and Hatem expressed hope that the gas crisis could be resolved within the next two years.

Regarding the banking sector, the BKMEA president said that although Bangladesh Bank had taken several measures, the problems facing the sector had yet to be fully resolved.

He also pointed to some deterioration in the overall law and order situation during the period.

Overall, however, Hatem said the government was making its best efforts to address the challenges facing the economy and industry.

“We hope the government will be able to resolve these problems in the long run,” he said.