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Experts at a seminar on Sunday laid emphasis on sustainable policy reforms and a long-term roadmap to achieve a trillion-dollar economy.
They made the observation at the seminar on “Bi-annual economic state and future outlook of Bangladesh economy: private sector perspective,” held at DCCI in Dhaka city, said a press release.
Dr Mashiur Rahman, economic affairs adviser to the prime minister, attended the seminar as the chief guest, while Ashraf Ahmed, president of Dhaka Chamber of Commerce and Industry (DCCI), presented the keynote paper in the seminar.
Mashiur Rahman said that Bangladesh’s economy has experienced fundamental changes during the last decade.
“During this period, the private sector has also flourished remarkably,” he added.
He also said policies should be formed considering the problems and prospects of the private sector.
Consistent policies will expedite private sector investment as well as foster foreign direct investment, he added.
He also laid emphasis on export diversification and value addition to export products.
The adviser termed the pharmaceutical and light engineering sectors as the most potential sectors for Bangladesh.
He later said that Bangladesh has to functionalise the API Park as soon as possible.
He also agreed that reforms are needed in the taxation system, as there are still some problems and challenges.
“We should also tap the benefits and huge potential of the blue economy,” he added.
Ashraf Ahmed said the long-term growth target of achieving a trillion-dollar smart economy requires concerted efforts to reduce the cost of doing business, improve ease of doing business, improve regulatory efficiency, install appropriate infrastructure, ensure energy security, improve logistics, and finally ensure access to finance for the private sector.
He highlighted that Bangladesh needs to put emphasis on product as well as market diversification.
He said that private sector investment is targeted in FY2024 at 27.4 per cent of GDP while it was 21.8 per cent in FY2023.
Required policies, considering the LDC graduation, will expedite private sector investment, he added.
To facilitate the private sector more, he requested lower corporate tax, complete automation of the taxation system, increasing the tax net, and reform of the SD and VAT Act.
As NPL (non-performing loan) has an impact on increasing some intermediary costs for the private sector, that is why he suggested reducing it.