Experts at a seminar on Thursday blamed that the current tariff structure on import of light engineering products is counter-productive for the growth of the local light engineering sector.
They said that recognizing light engineering sector as a high-priority sector in the Industrial Policy 2022 to provide sufficient incentives to ensure substantial growth of the sector.
Dhaka Chamber of Commerce & Industry (DCCI) organised the Seminar on “Import Substitute Industry in Bangladesh: Perspective of Light Engineering Sector” at DCCI auditorium.
Planning Minister M A Mannan attended the seminar as the Chief Guest while Zakia Sultana, Secretary, Ministry of Industries was present as the Special Guest. DCCI President Barrister Md. Sameer Sattar chaired the seminar.
Planning Minister M A Mannan said that in the light engineering sector if Korea, Taiwan, Malaysia, China could make success then Bangladesh will also be succeeded in future and we are in the right track.
He agreed that there are challenges but the private sector of Bangladesh is resilient enough to overcome these challenges and from the government all possible policy support will be given, he assured.
DCCI President, while addressing, said to meet the target of private investment to 27.35% of GDP by FY 2025, development of the light engineering sector is crucial as it will strengthen local value and supply chain in many allied industries.
"Light Engineering sector, if given right policy support, can serve as the backward linkage industry to many mainstream local industries like food, leather and footwear, electronics, agro-processing and pharmaceuticals industries", he added.
Zakia Sultana, Secretary, Ministry of Industries, said that Bangladesh’s light engineering sector is still import based. The light engineering sector is an untapped sector and it has great prospects of creating a large backward linkage industry ensuring diversified industrial base. "The light engineering industry development policy 2022 has already indicated a comprehensive action plan for 2022-2027. She also said that the entrepreneurs of this sector should be incentivized to mitigate import reliance", she said.
Additional Managing Director, Walton S.M. Shoyeb Hossain Nobel presented the keynote paper.
He highlighted that the light engineering sector of Bangladesh is generating revenue of 20,000crore taka and contributes about 3% to the GDP and it is increasing at 10% every year. The world market is of about USD 45 billion. In the panel discussion session, President of Bangladesh Steel Manufacturers Association Manwar Hossain said that now we have to focus on other promising sectors other than RMG.
Director, Meghna Group Muhammad Mushtaque Ahmed Tanvir said that there is a demand of 5 million bicycles in the European market. At present we need investment in the local manufacturing of mold and dies because it costs huge for import.
