The country鈥檚 business leaders on Tuesday urged the government to maintain enhanced law and order situation and make reforms in the banking sector and tax administration to restore a favourable business environment.
They also requested measures to address global apparel buyers鈥� concerns in order to restore their confidence in continuing to source from the country.
The demands were made during a meeting where an International Chamber of Commerce Bangladesh delegation, led by its president Mahbubur Rahman, met with finance and commerce adviser Salehuddin Ahmed at the Economic Relations Division office in the capital Dhaka.
Business leaders suggested reforms in trade bodies and the energy sector, extending the graduation timeline, and enhancing capacity building for Bangladesh missions to pursue economic diplomacy and identify new export markets.
During the meeting, Salehuddin urged businesspeople to prioritise national interests instead of personal gain.
Following the meeting, ICCB vice-president AK Azad said that the top three global apparel buyers 鈥� H&M, M&S and Inditex 鈥� expressed concerns during the meeting about the current law and order situation, delays in sample collection from airports and congestion at the Chattogram port.
He said that the buyers called for improvements in the law and order situation and the appointment of a designated person whom buyers feeling insecure could contact with.
Otherwise, buyers might consider alternative sourcing options, Azad said.
He said that while there were numerous claims of economic growth and increased per capita income, these often did not reflect the reality in rural areas outside Dhaka.
The adviser criticised past financial mismanagement, including taking unnecessary projects and inflating costs to provide illegal benefits.
鈥業 have urged the business community to operate honestly and transparently. If they do so, we will offer full support. There will be no tolerance for under-the-table dealings,鈥� Salehuddin told reporters after the meeting.
He also stressed the need for creating a more conducive and easier business environment to encourage private sector investment.
The meeting was attended by commerce secretary Md Salim Uddin, Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem, BGMEA president Khandaker Rafiqul Islam, Mir Group managing director Mir Nasir Uddin, Square Textiles managing director Tapan Chowdhury and Marks & Spencer country director Swapna Bhowmik.
The Bangladesh Garment Manufacturers and Exporters Association in a separate meeting with the adviser made several demands, including the provision of soft loans to recover from the losses incurred due to operational disruptions caused by recent student-led protests, general strikes and severe flooding.
The RMG sector leaders also demanded relaxing the provision for the payment of loan instalment within the six months after the due date instead of three months.
Recently, the Bangladesh Bank issued a circular stating that lenders would consider a loan overdue if a borrower fails to make an instalment payment within three months of the repayment due date.
鈥榃e have requested a one-month soft loan as cash flow assistance to pay workers鈥� wages, as factory operations were significantly disrupted for 15 to 16 days during the protests, and shipments were halted for four to five days due to the ongoing floods,鈥� BGMEA president Khandoker Rafiqul Islam told reporters following the meeting.
He said that the trade body sought Tk聽1,800- Tk聽1,900 crore as a one-month soft loan, repayable within a year.
The BGMEA president said if the government provided the support, the export sector would rebound quickly.
BGMEA vice-presidents Abdullah Hill Rakib, Asif Ashraf and Miran Ali, among others, were present in the meeting.
Asked about the loan assistance demand, the commerce adviser said that Bangladesh Bank would take necessary measures to address the issue.
According to meeting sources, the BGMEA also requested measures to protect factory operations during ongoing bank reforms, protection from external pressures related to textile waste disposal and priority access to the export development fund through scheduled banks to enhance the RMG industry鈥簊 export performance.
At a separate meeting with the representatives from edible oil and sugar refining companies, the commerce adviser stressed the government鈥檚 commitment to facilitating the opening of letters of credit and reducing LC margins.
Salehuddin urged the companies to avoid price increases and unethical practices, highlighting the importance of business cooperation in achieving the goal of the government to maintain a stable supply chain at reasonable prices.
At the meeting, businesses urged for a revision and reduction of the current VAT and tax rates.
Representatives from Deshbandhu Group, Meghna Group, S Alam Group, TK Group and City Group participated in the meeting.