ICC Bangladesh approves avoidance of firm loans and reduction of imports of luxury goods

By on June 4, 2022 0

BICE President, Mahbubur Rahman, attends the 27th Annual Board of the Chamber in Dhaka today, when the report of the BICE Board of Directors was presented. Photo: BICC

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BICE President, Mahbubur Rahman, attends the 27th Annual Board of the Chamber in Dhaka today, when the report of the BICE Board of Directors was presented. Photo: BICC

ICC Bangladesh has strongly supported the recent recommendation by the Ministry of Finance to avoid firm loans and discourage the import of luxury goods to reduce the pressure on declining foreign exchange reserves.

The ruling chamber also endorsed recent austerity and regulatory measures taken by the government and the Bangladesh Bank aimed at curbing non-essential imports, suspending the implementation of import-intensive projects.

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“We believe this will send a positive signal to the market and the economy and curb inflation,” ICCB Chairman Mahbubur Rahman said.

He spoke during the presentation of the report of BICE’s board of directors during its 27th annual council which was held in Dhaka today.

The ICCB also supports the companies’ demand not to increase electricity and gas tariffs, fuel prices as well as to reduce corporate taxes in the next budget, as these will be useful in containing the inflation, said the president of the ICCB.

The report mentions that over the past two years, the pandemic has played a major role in shaping the global economy. Many sectors have found themselves in difficulty and are still in difficulty and the countries dependent on these sectors are now quietly trying to recover.

Despite the strong economic recovery in 2021, the financial difficulties are not over and could still cause an economic slowdown, according to the chamber.

In addition, many countries are facing growing debt, high inflation and a burning issue of the moment, geopolitical tensions, all of which play a major role, he said.

The world economy is about to be sent down another unpredictable course by the Russian-Ukrainian war.

This war is a major humanitarian crisis affecting millions of people and a severe economic shock of uncertain duration and magnitude.

The magnitude of the economic impact of the war is highly uncertain and will depend in part on the duration of the war and political responses, but it is clear that the war will result in a substantial short-term slowdown in global growth and significantly stronger growth. inflationary pressures, the report adds.

The Board report observed that the Russian invasion of Ukraine poses the most serious risk to the economic prospects of developing Asia.

The war is already affecting economies in the region through sharp increases in commodity prices such as oil and has increased instability in global financial markets.

Covid-19 continues to impact many parts of developing Asia, with some economies experiencing new outbreaks.

Bangladesh’s 50-year journey since its independence in 1971 has been formidable and for many it is a ‘land of impossible achievement’.

Bangladesh’s dominant narrative has been one of an economic miracle, and the country’s impressive scorecard builds on its success in achieving a consistently high rate of economic growth and impressive performance in which concerns various development indicators, including those relating to the Millennium Development Goals (MDGs), declared the President of BICE.

Success in economic growth led to Bangladesh’s dual graduation – graduation from a low-income country to a lower-middle-income country in 2015, according to the World Bank criterion and eligibility for graduation from group of least developed countries to a developing country status in 2018, according to United Nations criteria, the report adds.

According to the World Economic Forum since its founding in 1971, Bangladesh has emerged from crushing poverty to be proclaimed by the World Bank in 2020 as “a model of poverty reduction”, Rahman said.

It achieved the highest cumulative GDP growth in the world from 2010 to 2020 and is now on track to become a developed country by 2041, he said.

Bangladesh, like other countries, faces the daunting challenge of fully recovering from the Covid-19 pandemic, which has limited economic activities and reversed some of the gains made over the past decade.

“We must remember that worldwide, trade is a key tool of development that has led to globalization. Various research institutions and senior economists citing post-graduation challenges, apprehend serious obstacles to its uplift, if the Bangladesh fails to devise smooth transition strategies to deal with the challenges posed by this transition.

Three major economic challenges, all linked to each other, as observed by experts include a persistent higher inflation rate, the upward trend in the exchange rate and a worsening liquidity crisis in the banking sector.

Apart from these challenges, the Russian-Ukrainian war will also affect the economy of Bangladesh. Bangladesh is already feeling the heat of the Russian-Ukrainian war in many ways.

If the war continues for a longer period, the impact will intensify. The country is feeling the impact through reduced exports and increased import bills.

As an oil-importing country, Bangladesh is already feeling the pressure of high import payments, the report warned.

The board approved the 2021 auditor’s report and appointed the auditor for the year 2022, the BICC press release said.