Businesses seek alternatives to incentives, subsidies in post-LDC

Business leaders have called for alternative policy support as Bangladesh prepares for graduation from the Least Developed Country (LDC) category, fearing the loss of current export benefits such as cash incentives, subsidies, and the Export Development Fund (EDF).

At a seminar organised by the Dhaka Chamber of Commerce and Industry (DCCI) in Dhaka today (24 May), they urged immediate formulation of coordinated import, export, and national tariff policies to tackle post-graduation challenges. 

The seminar was titled "Import-Export Policies in Bangladesh: Requirements and Challenges upon LDC Graduation". The chief guest was Lutfey Siddique, the chief adviser's special envoy on international affairs.

He said structural reforms of government institutions are essential, noting that the current pace of reform is insufficient. "There's no clear roadmap for the industrial sector, which is frustrating," he said, adding that smooth port operations must be ensured.

Speak against street movements hurting economy, CA Special Envoy Lutfey urges businessmen

Siddique criticised the misuse of business influence for personal gain, urging entrepreneurs to use their power for national interest. "Blocking roads in Dhaka hampers daily earnings of 5 million people. Business leaders must speak out against such actions," he added.

He warned that without discipline and based leadership, the benefits of LDC graduation could be lost.

Anisuzzaman Chowdhury, special Assistant to the chief adviser (finance), announced plans to hold a national dialogue to formulate a coordinated post-LDC strategy. He highlighted the importance of focusing on high-value garments, pharmaceuticals, and light engineering.

National Revenue Board Member Kazi Mostafizur Rahman said a Central Bonded Warehouse system is expected to be launched by July, alongside an Electronic Data Exchange system for faster customs clearance.

Export Promotion Bureau Vice Chairman Anwar Hossain noted that reforms in trade policy, compliance, and private sector preparedness are already underway.

Presenting the keynote paper, Selim Raihan of Dhaka University observed a lack of coordination among import, export, and tariff policies. He recommended reducing import duties, reforming export policy to attract FDI, and eliminating para-tariff barriers.

DCCI President Taskeen Ahmed called for research into why sectors like leather, pharmaceuticals, jute, and agro-processed goods have failed to meet export targets despite strong potential.

Former BKMEA president Fazlur Rahman stressed the need to shift towards high-end production in the post-LDC landscape, warning that subsidy cuts and rising service costs could strain the private sector.

Former BASIS President Syed Almas Kabir proposed establishing five overseas marketing offices to expand IT exports. 

Md Zakir Hossain, managing director of Delta Pharma, called for effective negotiations to extend Bangladesh's access to TRIPS benefits for at least six more years post-graduation.

Fakir Fashion Managing Director Fakir Kamruzzaman Nahid urged policy support to attract investment in man made fibre-based garments.