President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Md Jashim Uddin said domestic industries will be fallen in difficulties if the current interest rate of lending is increased.
He said this while speaking in ‘ERF’s Dialogue’ as the chief guest, organized by Economic Reporters' Forum (ERF), at its auditorium in the capital on Saturday.
He said that the interest rate of bank loans cannot be increased to the sake of expanding investment and keep all the industries running in the country. If the interest rate is raised many of those will lose the capacity to operate and produce.
Jashim said the capacity of the bank needs to be increased by reducing the additional expenses. Expenditure should be reduced in other areas of the bank, including reduced expensive branches.
In this context, the FBCCI president also said the US has increased interest rates to strengthen the dollar. Their formula will not be implemented in Bangladesh. Policies should be adopted keeping in mind the industry of the country.
He also urged to solve the energy crisis by encouraging the use of coal in power generation.
“We have to use our own coal. In addition to increasing investment in industry, environment-friendly energy cooperation will be needed for the development of the country,” he said.
Bangladesh is the ninth consumer market in the world; he said that foreign investment will come to the country around this market, and cooperation should be increased to sustain existing investments and new investments.
Jashim Uddin said that the government is taking more tax than what it is giving subsidy on gas. 47 percent tax on LNG and Tk24 per liter on diesel. By reducing this tax rate, the new reasonable price can be fixed by adjusting the excess price.
Jashim said, no need to borrow from the International Monetary Fund (IMF) by sacrificing the country’s dignity.
“The condition of Bangladesh is not so bad that the loan has to be taken on any condition from the IMF, initiatives to increase to hike lending rate will impact to increase production costs as well as raise a burden to the customers,” he added.
ERF General Secretary SM Rashidul Islam moderated the program. ERF Vice President M Shafiqul Alam presided over the dialogue. More than a hundred members of ERF were present on the occasion.
