Business Report :
The biggest challenges in running industries over the past six months have been the shortage of bank funds, alongside gas and electricity supply, said Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI).
“We are still facing gas and electricity problems. If we cannot resolve the issues of labour unrest and energy shortages, and if we cannot keep factories running continuously for at least four hours a day, it will have a major impact on exports,” he said at a seminar organised by the DCCI titled “Bi-economic State and Future Outlook of Bangladesh Economy – Private Sector Perspective” held today (28 September).
“Production in MSMEs [Micro, Small, and Medium Enterprises] is also declining. If we fail to stabilise this situation, it will not only affect exports but also have a significant impact on employment.”
He noted that the crisis is not limited to the readymade garment sector, but was also severe in non-RMG sectors.
“We are already hearing that gas reserves are depleting. However, if the nuclear power plant comes into the grid by the end of this year, there could be a positive change. There is an urgent need for alternative measures to overcome this situation,” added the DCCI president.
He further said the labour unrest was initially confined to Ashulia, but it was now spreading beyond that area.
If confidence in changing the situation cannot be restored, it will affect investments, he warned, adding private sector investment growth had remained around 24% over the past three to four years.
In his address, Ahmed also highlighted that the interim government had already proposed some financial reforms.
“If these are properly implemented, they will have a positive effect on the economy, though it may take time. If the government can increase tax revenue, it will improve the ability to repay global debts, for which revenue collection needs to be emphasised,” he said.
“Bangladesh Bank has been trying to control inflation by increasing the policy rate, but the effects of this measure will take three to six months to be felt. Additionally, while reforms are being discussed for 10 to 12 weak banks, care must be taken to ensure that these reforms do not negatively impact the entire banking sector.”