DCCI urges Bangladesh govt to defer LDC graduation for 2-3 years

Bangladesh is set to graduate from LDC status in 2026.

An acute shortage of energy in the industrial sector, rising inflation and steep duties on import, high interest rates, procedural complexities in obtaining bank credit and limited access to credit for the private sector still pose a serious challenge to the country's economy, he said at a discussion on the implementation of the Smooth Transition Strategy (STS).

The discussion was jointly organised by Support to Sustainable Graduation Project (SSGP), the government’s economic relations division and DCCI in Dhaka.

The gross domestic product (GDP) growth in the first quarter (Q1) of the current fiscal was only 1.8 per cent, while the manufacturing sector grew by just 1.43 per cent, the DCCI president noted.

For an effective and competitive STS, he recommended developing a roadmap to stabilise the economy, creating a real-time monitoring and evaluation platform, signing economic partnership agreement with key partners and aligning trade, industrial and investment policies, according to domestic media reports.

He stressed the need for skill development in the small and medium enterprises sector and ensuring long-term access to low-cost credit, signing free trade agreements to expand exports to the Middle East and South Asian countries, infrastructure development to attract foreign direct investment, and revision of revenue and related policies.

He also called for formulating and implementing specific policies to boost exports in other sectors with export potential beyond readymade garments. For a comprehensive and implementable STS, the role of private sector is crucial, he noted.

Fibre2Fashion News Desk (DS)