Against the backdrop of energy crunch and a hostile international tariff and trade regime, the country’s macroeconomic challenges have become more daunting than before. So, the need for addressing the problems facing manufacturing and business sectors is compelling. The series of meetings between Prime Minister Tarique Rahman and the country’s top business leaders that have already started can be considered a positive development. On many of the suggestions, the prime minister has taken instant decisions. Organised by the Bangladesh Investment Development Authority (BIDA), the Saturday’s interactive meeting focused on export diversification, trade facilitation and the ongoing power crunch. Reportedly, decisions have already been taken on 21 of the 28 issues raised by the business community in an earlier such parley. The emphasis put on public-private partnership by the premier in developing key infrastructure can bring about positive changes in the import-export ecosystem.
This certainly refers to investment which has become scarce and the energy crisis makes injection of funds —both local and foreign—a difficult proposition. Due to a lack of gas supply, a large number of factories and industries have been forced either to operate below capacity or suspend operation. In a situation like this, no investor is expected to outlay money in new ventures or in existing ones for their expansion or modernisation. But without investments, diversification of exports is out of question. Energy crisis has hit the industrial sector hard. So, this crisis has to be addressed on a priority basis. Overdependence on imported fossil fuels has led the country into a trade trap and it is so integrally linked to production and export of goods and commodities that maintaining the current export orders has proved impossible. Unless a solution to the energy crisis— preferably on the renewable energy front— is found, achieving the target of US$100 billion in exports will remain elusive.
Again, if efficiency of productive units is raised and lead times in export and import at the ports, particularly the Chattorgram Port, cannot be reduced, the country’s international trade cannot become competitive. Responding to the business community’s demand, the prime minister has ordered 24-hour operation at Chattogram port. However, a review by the Chattogram Customs House (CCH) has found that importers and their clearing and forwarding (C&F) agents are responsible for time lapses, taking 80 per cent of the total port clearance time. Customs automation is thus undermined and its benefits are compromised. Before blaming the port authorities, importers should also be more prompt to get their imports released. Even the most efficient automation arrangement cannot cut the lead time in handling export and import goods if traders themselves make inordinate delay in completing the due process.
Another important demand made by business leaders is establishment of internationally accredited testing laboratories at both seaports and airports. This is important for meeting global quality standards like ISO/IEC 17025 or ISO 15189. These calibration laboratories test export products and medical samples to ensure that they are safe and accurate. Such measures must not wait for implementation because the country’s exports and economy are in a dire need to recover from the sluggish pace. In this context, the reported arrival of about 45 senior executives from 25 leading US companies by the end of next week to explore investment opportunities in Bangladesh is likely to be a positive development. It can open up avenues for foreign direct investment in the country.