PPP crucial to tackle any economic challenge: DCCI president

Dhaka Chamber of Commerce and Industry (DCCI) President Md Sameer Sattar has said that public-private partnership (PPP) is crucial to tackle any economic challenge.

He also called upon the Bangladesh Bank to assist commercial banks with adequate foreign exchange supply to settle letters of credit (LCs) to ensure the continuous supply of essential commodities during the upcoming month of Ramadan.

Sameer Sattar made the call while the Board of Directors of the DCCI called on Bangladesh Bank Governor Abdur Rouf Talukder at the central bank's head office on 23 January, according to a press release. 

In the discussion, the DCCI president emphasised the need for necessary reforms, like easing the documentary requirements for cottage, micro, small, and medium enterprises (CMSMEs) to access finance and, especially, in relation to the Credit Guaranty Scheme, for the betterment of the CMSME community.

Furthermore, he advocated for easing the documentation process for young and innovative start-ups so that they can easily obtain loans.

He also emphasised the importance of increasing private sector credit growth to accelerate the private sector's contribution to economic recovery in this geoeconomic context.

In addition, Sameer Sattar suggested ensuring good governance to contain the soaring non-performing loans by taking stern measures for quick recovery and focusing on habitual defaulters as well as necessary reforms to regulations in the banking sector.

In his turn, Governor Abdur Rouf Talukder said, "We are facing three major challenges now, and these are the ongoing Russia-Ukraine war, the interest rate hikes by the Federal Reserve, and the recent Covid situation in China. Despite these challenges, our economy is quite stable."

He indicated that the current LC situation may ease within the next couple of months.

He reaffirmed that the Bangladesh Bank has been working tirelessly through relevant policy measures and actions such as lowering the LC margin to ensure a continuous supply of essential commodities in the market during Ramadan.

Given the significance of remittance inflows, the governor mentioned that there have recently been some changes in the process of sending remittances, such as the waiver of required documents and fees by local banks and the use of mobile financial services to bring remittances home.

As a result, he expects that the remittance inflow will increase considerably in the future.

DCCI Senior Vice President SM Golam Faruk Alamgir, Vice President Md Junaed Ibna Ali and members of the Board of Directors were also present in the meeting.