Business leaders call for delaying LDC graduation by 3-6 years

Business leaders have called for a delay of 3 to 6 years in Bangladesh's graduation from the Least Developed Country (LDC) status, arguing that the country will lose its global market competitiveness if the transition comes too soon.

Given the current state of Bangladesh's industrial and economic situation Bangladesh should have sufficient time to better prepare for the challenges ahead, they said at a meeting organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Dhaka today (7 December).

According to a press release issued by BGMEA, the primary focus of the meeting was on the challenges facing all industrial sectors, with particular emphasis on the garment industry. 

The participants discussed pressing issues such as safety and security in industrial areas, the ongoing shortage of gas supply, and banking-related difficulties affecting businesses.

One of the key points of discussion was the safety issue of factories across, according to the release. 

The business leaders cited the recent attack on the deputy managing director of Mahmud Denim as an example, which has raised deep concerns across the industrial sector. 

They said if such incidents continue, it could severely discourage entrepreneurs from operating factories and, in turn, impact the broader business, trade, and investment climate in Bangladesh. This would be detrimental to the country's economy and is therefore not a scenario any stakeholder desires.

They strongly urged the government to take immediate action to facilitate economic growth, maintain a stable law-and-order situation in industrial areas, and ensure the safety and security of all factories, including those in the garment sector. 

According to the release, the business leaders emphasised that maintaining a secure environment is essential for safeguarding employment opportunities and sustaining economic development.

The meeting also discussed concerns regarding a new policy by Bangladesh Bank on defaulted loans, which business leaders said might impact the private sector. 

They argued that the policy, set to take effect in April 2024, could disrupt investment and negatively affect employment in the country. 

The business community agreed to conduct a sector-wise study to assess the potential impact of the policy on various industries.

Attendees at the meeting include Tapan Chowdhury, adviser to the former caretaker government and MD of Square Pharmaceuticals; Md Hafizur Rahman, FBCCI administrator; Ardashir Kabir, BEF president; Anwar Ul Alam Chowdhury (Parvez), BCI president; Mohammad Hatem, BKMEA president; Showkat Aziz Russell, BTMA president; Kamran T Rahman, MCCI president; Md Shahriar, BGAPMEA president; Osama Taseer, former DCCI president; Shams Mahmud, BGMEA Support Committee member; Abrar H Sayem, BAYLA president; and Hasin Arman, 1st Vice President of BAYLA.