DHAKA, June 10, 2024 (BSS) - Federation of Bangladesh Chambers of Commerce 
and Industry (FBCCI) president Mahbubul Alam today said that long-term 
business and industrial policy are needed for stability and growth.

Mahbubul said this while speaking at a discussion hosted by the American 
Chamber of Commerce in Bangladesh (AmCham Bangladesh) titled "Budget and 
Business Outlook" as the chief guest held at a city hotel.

The discussion brought together key figures to analyze the implications of 
the recent national budget for the Bangladeshi business community. 
A panel of experts including, Muhammad Abdul Mazid, former chairman of the 
National Board of Revenue (NBR), Nihad Kabir, former president of the 
Metropolitan Chamber of Commerce Industry (MCCI), Md. Moinul Haq, an AmCham 
EC member, Ashraf Ahmed, president of the Dhaka Chamber of Commerce and 
Industry (DCCI) and Reaz Islam, chief executive officer (CEO) of LR Global 
Bangladesh Asset Management Company spoke at the event.
 
The panel discussion was moderated by Dr. M. Masrur Reaz, chairman of Policy 
Exchange Bangladesh. 

Terming inflation as a major concern, the FBCCI president said, "We must have 
a long-term policy for doing business and run industry. We frequently change 
our policy. There should not be overnight change with an SRO by revenue 
board,"

The panel discussions focused on the budget's potential impact on various 
sectors, providing insights and recommendations for businesses navigating the 
new fiscal landscape. Key areas of focus included sector-specific 
allocations, potential tax changes, and the overall economic climate 
envisioned by the budget. 

Dr. M Masrur Reaz presented a brief overview of the budget, noting its 
contraction nature aimed at reducing government spending, which is seen as 
necessary in the current economic climate. 

He highlighted both positive and negative aspects of the budget in terms of 
containing inflation and foreign exchange demands. 

However, the panelists also raised criticisms, pointing at inadequate 
spending on critical social infrastructure sectors, a reduction in 
allocations for physical infrastructure, including transport and energy, and 
overly optimistic projections for key economic indicators like inflation, GDP 
growth, investment, and tax revenue levels for FY25. 

The budget's high borrowing target of Taka 160,950 crore (64% of total 
budgetary resources) is expected to put pressure on domestic liquidity and 
crowd out the private sector from the banking system. 

The event concluded with a lively question and answer session, allowing 
participants to delve deeper into specific concerns and seek clarification on 
budgetary details, providing valuable context for businesses seeking to adapt 
and thrive under the new fiscal policies. 

Masrur in his short speech also emphasized the need for joint efforts of the 
government, policymakers, and the central bank to control inflation and 
implement effective measures. The speakers also highlighted that the budget 
formulation and implementation should be handled by separate entities.
 
The discussion also addressed challenges such as a declining foreign exchange 
reserve, the balance of payment deficit, energy sector demand-supply 
imbalances, and a struggling banking sector. 

AmCham recommended prioritizing foreign exchange reserves, tax and VAT 
policy, social safety nets, and renewable energy. The event was attended by 
numerous business leaders, foreign dignitaries, media representatives, and 
other guests. 

Rubaba Dowla, AmCham Bangladesh Committee Member and Country Managing 
Director for Bangladesh, Nepal, and Bhutan at Oracle Limited, offered the 
vote of thanks.