Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed has urged the policymakers to push up private sector credit flow to double digits, improve governance and transparency in the financial sector, and create a business-friendly environment to support overall growth.

He made this call while addressing a seminar on the "Bi-Annual Economic State and Future Outlook of Bangladesh Economy - Private Sector Perspective (July-December 2024)" held at the DCCI auditorium, he also called for a reduction in interest rates, continued policy support to boost local and foreign investment, integrated infrastructure development, better market management to control inflation, and a long-term energy pricing policy for the industrial sector.

Taskeen presented a comprehensive overview of the economic situation during the July-December period of FY25, covering topics such as global economic trends, monetary policy, inflation, private investment, foreign direct investment (FDI), agriculture, industry, services, CMSMEs, energy, logistics, skill development, and the financial sector.

He stressed the importance of curbing public spending through austerity measures, increasing credit flow to the private sector, improving market monitoring to manage inflation, reducing VAT on essential goods, and addressing non-performing loans through strong financial governance. He also proposed increasing VAT on luxury goods while reducing VAT on essentials.

Md. Abdur Rahim Khan, Secretary (Routine Charge) of the Ministry of Commerce, underscored the potential to reduce trade costs by 10-15% with the full implementation of logistics policies and WTO trade facilitation agreements. He described the light engineering industry as a "game-changer" and highlighted the Ministry’s initiative to establish a Technology Centre in Gazipur to support this sector.

Dr M Masrur Reaz, Chairman of Policy Exchange of Bangladesh, acknowledged the central bank's positive initiatives, which have helped reduce inflation. He expressed hope that with increased reserves, industrial imports and supply-side conditions would improve. He also emphasized the need for strengthening market monitoring to control price manipulation.

Dr. Mohammad Abu Eusuf, Professor at Dhaka University, advised against a traditional budget with large deficits for the next fiscal year, warning that borrowing from the banking sector could negatively impact private sector credit flow. He stressed the importance of aligning budget policies with monetary strategies to control inflation.

Dr. Mohammad Yunus, Research Director at BIDS, called for enhanced industry compliance and public-private coordination to meet post-LDC challenges. Dr. Sayera Younus, Executive Director at Bangladesh Bank, reassured that the central bank's timely intervention had stabilized the exchange rate and improved the overall economic outlook.

AHM Jahangir, Additional Secretary of ERD, emphasized the need for a smooth transition strategy as Bangladesh prepares for LDC graduation, urging comprehensive planning from both the public and private sectors.

The seminar also saw participation from DCCI Vice-President Md. Salem Sulaiman and other members of the board of directors.