Pvt sector growth to face biggest challenge this year: DCCI Prez

DCCI President Ashraf Ahmed said the private sector growth will face the biggest challenge this year as the demand for the working capital in the sector has increased by at least 30 to 40 percent following huge depreciation of taka, while the monetary policy has the provision of only 10 per cent credit growth for the private sector.
He made the comment while participating at CMJF Talks on Tuesday at the chief guest. Capital Market Journalists Forum (CMJF) organized the event in its auditorium at Al-Razi Complex, Purana Paltan in the city.
President of the forum Golam Samdani Bhuiyan gave the opening remarks moderated by CMJF General Secretary Abu Ali.
DCCI (Dhaka Chamber of Commerce and Industry) President said private business would face  biggest challenge this year in the backdrop of 10 percent credit growth targeted in the monetary policy, which would be inadequate for loss of value of taka to maintain growth.
He said if this cannot be resolved, the other way is to reduce business cost. This will affect production. Lower production will impact growth. Apart from this, employment will shrink."We are working with the government to increase credit flow. It is possible to keep the economy moving," he said.He said, "By 2030, Bangladesh will be a country of trillion dollar economy. To achieve this goal, the size of the economy should increase two and a half times. A lot needs to be done to overcome this challenge.
The economy has gone through many challenges in last 1-2 years. Inflation has severely impacted. Now we have to do things in 6 years what were supposed to be done in 10 years. Referring to dollar crisis, Ashraf Ahmed said, "Banks do not have enough dollar and import is facing setback. But a decrease in imports has a major impact on production and growth."
He wondered why business capital is not being collected from capital market at a time private sector bank loan is very slow. He said it is very difficult to get a long-term loan. One can raise money for 5 years and 10 years by issuing bonds. He said the market is trying to bring good issuers in bonds market. "We have to increase our investment by bringing good issuers, he said."
The DCCI president said, " It is not true that money laundering takes place because it goes where the returns from investment is high. If one invests in the country, one may get more returns as well."
Ashraf Ahmed said, "Those traders who are involved in money laundering or any other irregularities are responsible only for them. Therefore, the responsibility of any trader does not fall on all traders."