Local market development will ease post-LDC challenges, say business leaders

Highlights:

• Pharmaceutical exports doubled during Covid-19: Bapi Secretary General SM Shafiuzzaman
• CMSMEs still deprived of loan from stimulus package: NASCIB President Mirza Nurul Ghani Shovon
• Bond facility will be considered for bicycle industry: Md Masud Sadiq, member (VAT Policy), NBR
• Bangladesh Bank to float a Tk500 crore re-financing scheme for tourism industry: Dr Md Habibur Rahman, executive director (Research), BB
• No government cash incentives to export sector after LDC graduation: Commerce Secretary
• Post-LDC Bangladesh to face compliance, barding, IPR, duty-related challenges: DCCI President Rizwan Rahman

Local market development, modernisation and automation of tax, VAT and duty structure will ease Bangladesh's challenges after it graduates from the Least Developed Country (LDC) status, business leaders told a virtual discussion on Saturday.

They said development of the supply chain ecosystem, attraction of new investment, use of technology, human resource development, and low-cost financing are also important for post-LDC competitiveness.

The dialogue styled "Local Market Development: Preparedness for the post-LDC era" was organised by Dhaka Chamber of Commerce & Industry (DCCI), according to a press statement.

Commerce Secretary Tapan Kanti Ghosh was the chief guest at the programme.

Speaking at the discussion, DCCI President Rizwan Rahman said after LDC graduation, Bangladesh will face many challenges including compliance, barding, IPR, International Support Measures, etc.

"Based on our present economic situation, development of the local market is also equally important besides the export market. As the total market scenario will be changed after graduation, development of local businesses, boosting local manufacturing capacity, increasing product quality are also very important," he said.

He also requested the Bangladesh Bank to extend the moratorium period of loans.

Commerce Secretary Ghosh said ensuring low cost financing, ease of doing business, efficiency in port and customs and skill development are some of the major issues for the post-LDC period.

"After LDC graduation, the government will not be able to give any cash incentives directly to the export sector, however the government will try to facilitate the private sector in another way," he said.

Dr Md Habibur Rahman, executive director (Research), Bangladesh Bank said the central bank, BSEC, Ministry of Finance, Ministry of Commerce, NBR and all related regulators have to play an equal role to become competitive after LDC graduation.

"In the latest monetary policy interest rate has been cut drastically. Therefore, the private sector will get access to low cost funds in the system as there is enough liquidity in the banks," he said.

Bangladesh Bank will soon float another re-financing scheme of Tk500 core for the survival of the tourism industry, he informed.

Ahsan Khan Chowdhury, chairman & CEO, Pran-RFL Group, in his speech emphasised the need to identify the existing bottlenecks and solve the problems in the domestic market immediately, in order to create more companies like Pran or Walton.

He also requested a bonded warehouse facility for all export oriented sectors including the bicycle industry. 

Md Masud Sadiq, member (VAT Policy), National Board of Revenue, echoed the proposition of bond system automation and monitoring.

"Bond facility will be considered for the bicycle industry," he said.  

Mirza Nurul Ghani Shovon, president, National Association of Small Cottage industries of Bangladesh (NASCIB) said CMSMEs are still deprived of loans from the stimulus package. He also emphasised on training for small entrepreneurs.

"Human Resource Development Fund has been created but still it is not operational. Our export is still quite satisfactory. We have to utilise our local market of 180 million people," he said.

Dr M Abu Eusuf, executive director, Research and Policy Integration for Development (RAPID) said as we may lose few preferential treatments after LDC graduation, it is imperative to focus on local market development.

SM Shafiuzzaman, secretary general, Bangladesh Association of Pharmaceutical Industries said Bangladesh exports pharmaceutical products to almost 151 countries. During the Covid times Bangladesh's pharmaceutical export did not decline rather doubled.

"Even after LDC graduation, we will be able to keep our market as the quality of Bangladeshi pharmaceutical products is quite satisfactory," he said.