Energy, dollar crises hurting exports, industrialisation: Business leaders

Exports and industrialisation in the country are facing a decline because of the severe shortage of electricity and gas, and the ongoing dollar crisis, business leaders have said.

Speaking at a programme arranged on Sunday to distribute CIP (commercially important person) cards among 180 businessmen for the year 2021, FBCCI President Jashim Uddin called upon the government to prioritise and implement necessary initiatives to achieve the country's export target.

During the event held at Hotel Pan Pacific Sonargaon in the capital, Jashim Uddin, the leader of the country's apex trade body, requested Commerce Minister Tipu Munshi to address the power and gas crises, but the minister did not mention this issue in his speech.

Highlighting the importance of resolving the energy crisis, Jashim Uddin urged the commerce minister to prioritise the supply of gas to factories.

He emphasised that it is the government's responsibility to address this crisis promptly to prevent a further decline in exports, which have already experienced a slight decrease. Resolving these issues would contribute to achieving the export target, he added. 

The industrial sector aims to raise the country's annual export volume to $100 billion in 2026, which was a little more than $52 billion in FY2021-22.

Expressing concern over the decrease in industrialisation due to the crisis of gas, electricity, and dollar, the FBCCI president stated that factories are facing low production capacity.

As the chief guest at the event, Commerce Minister Tipu Munshi acknowledged the significant role played by traders in creating employment opportunities in the country. He recognised the high contribution of businessmen in lifting the nation above the poverty line.

The commerce minister expressed optimism for future business growth and emphasised the potential for expansion in the export sector.

Sheikh Nasir Uddin, chairman of Akiz Jute Mills Limited, who spoke at the event on behalf of the CIPs, acknowledged the privileges associated with the CIP rank, such as priority treatment at various locations, including airports.

He shared his ambition to increase the annual jute export from $2 billion to $5-10 billion and revealed plans to manufacture jute-based products such as shoes in the future. 

Akiz owns 40% of the country's jute business.

AHM Ahsan, vice chairman of the Export Development Bureau, identified the country's import dependence on raw materials as a significant challenge for the export trade. He pointed out that this reliance leads to increased lead times and higher costs for importing raw materials.

For the year 2021, the government selected 180 businessmen as Commercially Important Persons (CIPs) for their notable contributions to the country's export sector. These individuals will receive passes and vehicle stickers to enter the Secretariat, as well as invitations to national functions and civic receptions. They will also enjoy priority seat reservations in government vehicles for business travel by air, rail, road, and water, along with access to VIP lounges at the airport.

Additionally, CIPs and their families will receive special medical facilities in government hospitals, and the Ministry of Foreign Affairs will issue a "Letter of Introduction" for them when travelling abroad.

Among the new CIPs, 140 are directly involved in the export sector, including representatives from various categories such as raw jute, jute products, leather and leather products, frozen food, woven clothes (single and group), agricultural products, agro-processed products, light engineering products, pharmaceuticals, handicrafts, home textiles, knitwear, ceramic products, plastic products, textiles, computer software, computer services, data processing, miscellaneous products, and EPZ companies.

The remaining 40 individuals representing various business organisations have been selected as CIPs in the trade category. These include directors from Class A Chamber Group of FBCCI, Class B Association Group, Class C Chamber Group, and Class D Association Group.

The CIP status, specifically for exports, is valid for one year, but it remains in effect until the announcement of the next CIP list. The tenure of Trade Class CIPs will continue until the expiration of their respective Trade Organisation's tenure or until the next CIP announcement, whichever comes first.