Businesses yesterday demanded a better investment climate and adequate energy supplies for industries as the government seeks to raise annual exports to $100 billion by 2030 from $48 billion in the immediate past fiscal year.
During the second consultation meeting with Prime Minister Tarique Rahman at his Tejgaon office in Dhaka, business leaders also called for steps to address issues related to the tax regime and regulatory complexities.
They said the energy crisis remains the biggest obstacle to achieving the 2030 export target.
In response, Tarique outlined both short- and long-term measures, assuring business leaders that the government is working to install a Floating Storage and Regasification Unit (FSRU) dedicated to industrial use within the next two years, in addition to the existing two.
FSRUs store liquefied natural gas (LNG), regasify it and feed it into the onshore pipeline network for power plants, industries and households.
The nearly four-hour meeting, which began around 10:00am, was organised by the Bangladesh Investment Development Authority, reports UNB, citing the prime minister’s Deputy Press Secretary Mostafa Zulfiquar Hasan.
Twelve ministers and 15 business leaders from different sectors spoke at the meeting.
The prime minister said the government has identified 10 promising sectors, including garments, pharmaceuticals, electrical and electronic products, motor parts, man-made fibre garments, ceramics and tableware, and leather and leather goods, to help achieve the $100 billion export target by 2030.
He said the country’s economic challenges could be overcome through close cooperation between the government and the business community.
Many issues raised by business leaders during earlier consultations have already been resolved, while the concerns highlighted yesterday will also be addressed, he added.
“We all acknowledge there are many problems. The government has at least demonstrated that it is trying. The government is not yet six months old, but we have already held several meetings with the business community. We are addressing sector-specific challenges one by one.”
The prime minister said another meeting with business leaders would be held within the next two to three months.
“The more we sit together, the better we will understand your problems and the easier it will be to resolve them.”
He said sustained engagement between the government and the private sector could bring meaningful improvements to the economy within four to five years.
Officials informed the meeting that decisions have already been taken on 21 of the 28 issues discussed during the previous consultation, while work on the remaining seven is underway, adds UNB.
THE DECISIONS
The decisions included exploring alternatives to the time-consuming Letter of Credit (LC) system for business transactions and reducing the import duty on solar panels to 2 percent from nearly 35 percent. The 15 percent VAT on solar panel imports, however, will remain unchanged.
The government has also decided to waive all duties on imports of raw materials for sodium-ion and lithium-ion batteries, except customs duties of 1 percent and 15 percent, according to a keynote presentation by the Prime Minister’s Office.
Other decisions include involving private sector representatives in National Board of Revenue policy formulation, simplifying approval of bond licences, expanding bond facilities for all export-oriented industries, extending the tenure of bond licences to five years, and allowing companies to continue using bond facilities during audits.
At the request of business leaders, the government also decided to reduce the gap between the assessment value and customs value of imported goods. The government will also assist businesses in establishing a light engineering hub in Bogura.
Two business leaders who attended the meeting told The Daily Star that the government has already acquired 50 bighas of land near the Active Pharmaceutical Ingredients (API) Industrial Park in Gajaria upazila of Munshiganj to set up a steam generator for the park.
They also urged the government to allow industrial units to buy CNG from filling stations at night, when vehicle demand is lower.
According to them, filling station operators are reluctant to sell CNG to industries during the day because of high demand from vehicles.
Garment sector leaders recently made the same request, citing an acute gas shortage that is disrupting industrial production.
The meeting also discussed Bangladesh’s challenges in graduating from the group of least developed countries (LDCs) and issues related to the Third Terminal of Hazrat Shahjalal International Airport in Dhaka.
