Special Correspondent :
Business leaders on Saturday highlighted the call for a balance monetary policy to stimulate private sector investment, which is key to accelerate GDP growth and job creation.
“We need a balance monetary policy aligned with the current macroeconomic condition of the country,” M Shafiul Islam Mohiuddin, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation yesterday.
He said, the private sector credit growth continues to fall in the recent months owing to high trading cost and lack of investors’ confidence. This situation should be improved immediately for promoting investment, growth and jobs.
“The economy needs to grow at least 8.0 per cent per annum to absorb the growing labour force. Boosting private investment is crucial to attain the target,” said Mohiuddin, adding that the growth should be led by export sector and labour incentive manufacturing. “Low cost credit to export-oriented manufacturing units should be ensured for promoting exports and create more jobs. We hope the central bank’s new monetary policy should adopt necessary policy measures in this regard.
Furthermore, the government should promote reforms in the wide range of areas and enhance capacity of its key agencies to promote local and foreign investment,” he added.
Mohiuddin also called upon the central bank authorities to provide soft term loans to SMEs and women entrepreneurs to promote jobs.
“The central bank should also take punitive measures against the loan scammers and corrupt bankers and willful defaulters and intensify its oversight to bring down the banking sector’s non-performing loans,” he said.
“Bangladesh economy in the private sector is that one who needs more support through the government’s fiscal and monetary policies. Both the policies should be framed to promote investment and growth,” Abdus Salam Murshedy, President of the Exporters’ Association of Bangladesh (EAB) told The New Nation.
He said the next monetary policy should be growth friendly and supportive to private sector. “Credit target to the private sector should be fixed considering the demand of the economy.”
Abdus Salam Murshedy, a ruling party lawmaker, also called the central bank to enlarge the size of its Export Development Fund (FDF) considering the growing needs of the country’s exporters. “Once the size of the fund is raised, it can further promote export-oriented industries and jobs.”
Size of the Bangladesh Bank’s EDF fund now stands at US$ 2 billion and 10 export items, including apparel qualifying for soft loans from the fund.
“The central bank should raise the fund to US$ 4 billion so that more export items can get the access for the fund,” said Salam Murshedy.
