Staff Correspondent
Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury (Parvez) on Saturday claimed that the foreign direct investment (FDI) will not come to the country if local businesses are not comfortable doing business here.
He also said that the three matters, like proper energy supply, banking or the financial sector, and human resources, are crucial for the manufacturing sector. But we don't get full support here.
Speaking at a press conference organised by the BCI at its office in the capital's Tejgaon, he said, "We must understand that economic stability is fundamental… The July revolution gave us new hope, but we expected the interim government to take decisive steps to stabilize the economy. Unfortunately, it seems economic concerns have been sidelined, with the government and political leaders preoccupied with other matters."
On the many issues, he said, "We are grappling with numerous challenges, including the shock of taka devaluation, rising energy costs, and high inflation, which have exacerbated unemployment."
BCI President criticized the ousted Awami League government's failure to address systemic issues, such as bank looting, political unrest, and the collapse of institutions, stating that these have left the economy in a fragile state. Anwar stressed that without a functioning economy, no future government will be able to manage the country effectively.
He pointed out that the BCI is uniquely positioned to represent manufacturers across the country.
"With the Federation of Bangladesh Chambers of Commerce and Industry [FBCCI] currently unable to fulfill its role as the apex body, BCI has taken the lead to ensure the wheels of economic activity keep turning," he said. Anwar-Ul-Alam Chowdhury (Parvez) also claimed that the business community has been frustrated over the activities of the interim government amid multiple challenges in the industries of the country.
"We have been facing numerous challenges, including the shock of taka devaluation, rising energy costs, and high inflation, as well as supply chain disruption for long. But we did not see the government take business-friendly policy yet," he said.
He highlighted that the government should protect industries to create employment and boost the country's economy as well as bring foreign direct investment (FDI). Besides, business people don't feel comfortable on current situation of law and order.
"The FDI will not come into the country if local businesses are not comfortable doing business here. Three matters, like proper energy supply, banking or the financial sector, and human resources, are crucial for manufacturing sector. But we don't get full support here," he added.
Anwar-ul Alam stated that the interim government and political parties are concerned over the country's economic and business situation amid critical situation. They are focusing on other issues. As result, business people have to face a lot of challenges.
Anwar-ul Alam, also chairman of Evince Group, claimed that the government's all steps pushes cost of doing business in the country. If inflation is high, demand already decreases, Besides there is no energy supply, again prices are high, meanwhile interest rate is high, L/C opening is difficult, because of Foreign Currency Shortage and due to Bangladesh Bank's Contraction Policy. Meanwhile ADP implementation is only 12.29% in the last five months July-November.
"Due to this, production dropped by 30-40% in some cases like Cement sector 45% again Demand in the market is low. Business operating cost has increased to 30% compared to last two years while dollor devaluation 41.17%, Bank Interest 15-16%. Transport Cost-50%, Freight cost 40-50% increase. And, we see private sector credit growth gradually decreasing like July - 10.13% August-9.86 September - 4.30% October - 8.30% November - 7.66%, Capital Machinery L/C opening drop 25% July-December," he informed.
Replaying questions, the BCI president voiced concerns about the upcoming graduation from the Least Developed Country (LDC) status, warning that it could further increase business costs and push many businesses into a state of existential crisis.
"The government should take steps to defer Bangladesh's graduation from the Least Developed Countries (LDC) category by at least three years. Right now, we are not ready to graduate from LDC. We should give time here," he added.