Staff Correspondent
Experts at a meeting stressed on ensuring equal distribution of benefits of the economic growth among all in order to maintain long-term continuation of the growth.
They also termed reduction of inequality as a big challenge in the way of Bangladesh’s development.
The remarks were made in the Annual Council International Chamber of Commerce and Industries, Bangladesh (ICCB) held in city on Tuesday.
ICC Bangladesh President Mahbubur Rahman presented the Executive Board Report on the occasion.
He pointed out that the lack of Regulatory Predictability Businesses faces regulatory uncertainty on various fronts. Regulatory predictability matters because it makes property rights insecure, thereby constraining investment.
"This leads to uncertainty for businesses like medium-size firms seem to bear the brunt more than large or small firms and with inconsistencies in policy implementation, it can adversely affect employment growth", he added.
Mahbub said Bangladesh’s regulatory system needs establishment of a technical regulatory oversight body at the center of government to oversee, lead and report on regulatory reforms.
Attaining the targets depends on how quickly Bangladesh can resolve the challenges. Experts suggest that foreign and local investments to be increased and the activities of Economic Zones should start immediately.
In order to become an upper middle-income country by 2031 and achieve high-income country status by 2041, Bangladesh will require huge investments in physical capital, human capital, and innovation enabled by reforms in areas such as financial sector, business regulation, and to address the infrastructure gap, the Council Report added.
In the development update, the World Bank has noted that private sector investments in Bangladesh remain weak. Initiatives are needed to address several challenges, particularly in boosting private sector investment and diversifying exports.
ICCB President further mentioned that in the development update, the WB expressed concern over the rise of non-performing loans (NPLs). Direct lending, poor risk management, and weak corporate governance lead to the rise in NPLs. The practice of loan rescheduling and write-offs also increased, creating further stress on banks.
To bring stability and discipline to the financial sector, Bangladesh has to ensure Bangladesh Bank’s autonomy on regulation, integrate risk-based supervision in the central bank’s supervisory framework, tighten rescheduling guidelines and stop ad-hoc rescheduling, said Mahbubur Rahman.
The Council adopted the Executive Board Report & Audited Financial Statements of ICC Bangladesh for the year 2018.
ICCB Vice President Rokia A. Rahman; DCCI President Osama Taseer; Bangladesh Insurance Association President Sheikh Kabir Hossain; BKMEA former 1st Vice President Mohammad Hatem; FICCI Vice President Francois de Maricourt; ICCB Board Members : Aftab ul Islam; A. K Azad; Tapan Chowdhury; Anwar-Ul-Alam Chowdhury (Parvez); Kutubuddin Ahmed; Md. Fazlul Hoque; ICCB Members : Anis A. Khan, Managing Director & CEO, Mutual Trust Bank Ltd.; Rahel Ahmed, Managing Director & CEO, Prime Bank Ltd.; attended the meeting among others.
