ICCB recommends avoiding outright loans and discouraging the import of luxury goods
The Bangladesh International Chamber of Commerce is organizing the ICCB Annual Board (AGM) 2021 on Saturday. BICE President Mahbubur Rahman chaired the meeting. Among others, BIA Chairman Sheikh Kabir Hossain, Apex Group Chairman Syed Manzur Elahi, ICCB Vice Chairman AK Azad, former Foreign Minister Anisul Islam Mahmud and Square Textiles Chairman Tapan Chowdhury were present. – Press release
The Bangladesh International Chamber of Commerce strongly supports the Ministry of Finance’s recent recommendation to avoid outright loans and discourage the import of luxury goods, as this could reduce the pressure on our dwindling foreign exchange reserves.
ICCB Chairman Mahbubur Rahman while presenting the ICCB Board Report at its 27th Annual Council in Dhaka on June 4, also said that ICCB has also endorsed the recent measures austerity and regulatory measures taken by the government and the Bangladesh Bank aimed at curbing non-essential imports and suspending the implementation of import-intensive projects.
He said they believe that these measures will send a positive signal to the market and the economy as well as the fight against inflation,
The ICCB President also said that his organization also supports companies’ demand not to increase electricity and gas tariffs, fuel prices as well as reduce corporate taxes in the next budget, as this would help contain inflation.
The report mentions that over the past two years, the Covid pandemic has played a major role in shaping the global economy.
“A lot of sectors got into trouble and are still struggling and 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 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,” said a press release quoting the BICE president.
“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 cause a substantial short-term slowdown in global growth and considerably stronger inflationary pressures,” the ICCB report said.
The statement said the board report observed that the Russian invasion of Ukraine posed the most serious risk to the development of Asia’s economic prospects.
“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 surges in cases,’ it read.
“Bangladesh’s 50-year journey since its independence in 1971 has been formidable and for many it is a ‘land of impossible achievement’. The dominant narrative of Bangladesh has been one of an economic miracle. The Dashboard impressive performance of the country rests on its success in achieving a consistently high rate of economic growth and impressive performance on various development indicators, including those related to the Millennium Development Goals,” said said the BICC president in the report.
The success in economic growth led to the double graduation of Bangladesh from a low-income country to a lower-middle-income country in 2015, according to the World Bank criterion and eligibility to move from the group of least developed countries to developing country status. in 2018, according to United Nations criteria, the report adds.
Mahbubur Rahman said Bangladesh had recorded the highest cumulative GDP growth in the world from 2010 to 2020 and was now on track to become a developed country by 2041.
“Three major economic challenges, all linked to each other, as observed by experts include a higher and persistent inflation rate, the upward trend in the exchange rate and a worsening liquidity crisis in the banking sector,” he said in the report.
“Besides these challenges, the Russian-Ukrainian war will also affect Bangladesh’s economy. 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 through high import payments,” the report warned.
The board approved the auditor’s report for 2021 and appointed the auditor for the year 2022.
The board meeting was attended by, among others, Vice President of ICC Bangladesh, AK Azad, Chairman of Apex Group, Syed Manzur Elahi, Former Minister of Foreign Affairs, Lawyer Anisul Islam Mahmud, President of the FBCCI, Md Jashim Uddin, the interim president of the DCCI, Arman Hoque, the president of the MCCI, Md Saiful Islam. , FICCI Chairman Naser Ezaz Bijoy, BIA Chairman Sheikh Kabir Hossain, BTMA Chairman Mohammad Ali Khokon, NCCI Chairman Tahrin Aman and Square Textiles Chairman Tapan Chowdhury.