Govt curbs causing difficulties in capital machinery import: MCCI president

Some businesses are facing difficulties in importing capital machinery due to the government's import control aimed at reducing pressure on dollar reserves, said Md Saiful Islam, president of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI).

"One of our members recently faced trouble while bringing in capital machinery, but we all know the contribution of capital machinery to the economy," he told reporters yesterday at the MCCI office in Dhaka's Motijheel area.

"The Bangladesh Bank wants to improve the demand and supply of the market. To achieve that, import control must be relaxed after it reaches a certain point," he added.

About trading in Indian currency, he said, "There are a lot of complexities. It would not be very easy. For this the central banks of both countries need to settle on a framework. There are many procedures. Besides, it remains to be seen what kind of conditions the Indian side will give."

Saiful Islam also said that we have to wait to see the outcome of trade with China in Chinese currencies.

"We need to see whether the Chinese exporters will take payments in Renminbi (RMB)," he said.

According to the MCCI, after graduation from the Least Developed Country (LDC) status, Bangladesh may experience 8-13% global export erosion due to decreased trade benefits. However, it is possible to maintain competitiveness through trade facilitation; and political and social stability.

MCCI recommended extending the tenure of trade  and other licences to three to five years instead of one year, making Bangladesh Investment Development Authority (Bida) a real one stop service, development of logistics sector including ports.

Citing a World Bank report, the MCCI president said, if the efficiency of internal logistics can be increased by 17%, our trade will increase by 7%.

The MCCI president also said, Western countries will reduce dependence on a single country i.e. China – which is a tailwind for us.

"But we have to focus on internal capacity building including trade facilitation," he said.

Saiful Islam said, "Political unrest affects business. However, in the two and a half years of Covid, although there was instability in other countries of the world, there was stability in Bangladesh and he expressed hope that this stability will remain in the coming days."

MCCI director Adeeb Hossain Khan said, "Major export markets can reduce RMG imports. But since we manufacture basic items, our exports will be robust."

However, the president of the organisation pointed out that the achievement of the target of 11% export growth in the current financial year may be uncertain due to various reasons including the war situation.

MCCI Vice President Habibullah N Karim, Director Goolam Mainuddin, Secretary General Farooq Ahmed spoke in the event among others.