May 22, 2013 | 04:29 AM (BD Time)

22 May, 2013 Wednesday

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Efficient infrastructure, capping inflation a must to sustain growth

Staff Reporter

The  International Chamber of Commerce- Bangladesh (ICCB) on Saturdaysuggested ensuring  efficientinfrastructure and pursuance of drastic measures for containing inflation  to achieve budgetary goals and seven percent economic growth.

It made the suggestion in areport presented at its 17th annual general council  at the auditorium of Dhaka Chamber of Commerce and Industry(DCCI).

ICCB vice president LatifurRahman, ICCB members ASM Quasem, Mahbub Jamil R Maksud Khan, Waliur RahmanBhuiyan, Aftab-ul-Islam; DCCI president Asif Ibrahim, former BKMEA president, MFazlul Hoque, Rokeya A Rahman, BKMEA vice president M Hatem, M Arshad Ali, AbuAlam Chowdhury, Ghulam Rahman, Naser A Chowdhury, Dr M Zahir and seniorofficials of banks, insurance companies, national and multinational companiesattended the Council.

ICCB president Mahbubur Rahmanpresented the annual council report, said a press release.

Mahbubur Rahman said there havebeen some challenges to overcome for achieving these goals. The country has todevelop its communications sector and update its port facilities , he added. Hesaid the country's economy was under pressure during 2011 due to increasedimport of fuel and fertilisers, skyrocketing inflation, rise in budget deficit,government borrowing on a large scale, increase in subsidies, fall in foreignaid and currency reserve, declining export earnings and depreciation of thecurrency.

 "To achieving the current year's target of seven percent GDPgrowth, keeping inflation rate at a tolerable limit is a prerequisite," hestressed.

Despite all hurdles, the ICCB inits report hoped that Bangladesh can emerge as the 'second China' in the next15 years as the country marches ahead to become a global leader in areas suchas readymade garments, medicine and shipbuilding.

According to a study conducted byMcKinsey & Company, Bangladesh's RMG exports will double by 2015 and nearlytriple in next 10 years, as well as create employment opportunities foradditional 3.5 million workers by 2020 in RMG sector alone.

Industry experts said the targetmight be achieved by exploring new markets in Asia, Latin America and Africa.Besides, there are bright prospects of increased export earnings frompharmaceuticals, shipbuilding, leather goods, jute and  increased manpower export.

According to a report of UK Tradeand Investment Department, the Bangladesh economy will come under some strongunfavorable pressures due to high inflation and heavy borrowings by thegovernment from the banking sector, leading to a vicious downward spiral.

The report highlighted the needfor a bailout package by the government for the worst hit commercial banks dueto their huge losses for investing in the stock market.