US team to inspect Bangladesh drug, food makers for GMP compliance: Titumir

The US Food and Drug Administration will visit Bangladesh to assess Good Manufacturing Practices (GMP) at local pharmaceutical and food companies, with a view to increasing imports of Bangladeshi products, said Prime Minister's Finance and Planning Adviser Rashed Al Mahmud Titumir.

The US authorities are expected to complete their assessment within a month and open the US market to eligible Bangladeshi food and pharmaceutical companies, he said at a seminar organised jointly by the Economic Reporters' Forum (ERF) and the Centre for Policy Dialogue (CPD) at the ERF auditorium in Dhaka today (2 September).

The adviser, however, did not mention the visit schedule of the US delegation.

Addressing the event "Economic Forecast and Emerging Challenges: Priorities for the Future", National Professor Dr Mahbub Ullah said Bangladeshis already pay substantial amounts through taxes and other mandatory payments.

"People say Bangladeshis pay little tax, but that is not correct. People pay a lot in extortion. Such extortion is also a form of tax as people have to pay it from their income," he said.

On the energy crisis, Titumir said the government has to provide heavy subsidies to import LNG from Qatar at around $11 per unit, while the cost would have been around $4 if domestic gas were available.

The government is committed to ensuring energy security to attract investment, the adviser said, adding that it would establish floating LNG terminals as necessary and land-based LNG terminals would be considered if required.

The government is also working to generate 4,000MW of solar power. Under the plan, ordinary electricity consumers will be encouraged to become power producers, Titumir said.

Solar power generation costs around Tk8 per unit and the government plans to purchase electricity from producers at Tk10.50 per unit after adding a 20% profit and premium, he said.

Asked about financing the new pay structure, Titumir said the government would present the first-quarter revenue collection figures before the media.

"We are taking various measures to increase income tax and VAT and prevent tax evasion."

Calling for a shift from an economy of "plunder" to one focused on development and production, Mahbub Ullah stressed creating an environment to bring back money syphoned abroad for domestic investment.

CPD Distinguished Fellow Dr Fahmida Khatun said foreign exchange reserves and inflation had improved over the past six months, while production, investment, employment and energy remained concerns.

Federation of Bangladesh Chambers of Commerce and Industry Administrator Fazlul Hoque said export growth despite the energy crisis was a success, but exporters had incurred higher costs for diesel, generators and overtime.

He urged urgent operation of coal- and oil-fired power plants to reduce pressure on gas supplies and increase gas availability for industries.

The seminar was chaired by ERF President Doulot Akter Mala and moderated by its General Secretary Abul Kashem.