Dhaka, Bangladesh (BBN) - International Chamber of Commerce-Bangladesh (ICCB) has suggested for taking appropriate policy measures to generate own resources for sustainable economic growth
“….appropriate policy measures and timely implementation of those are needed to generate enough own resources for sustainable growth including increased foreign currency reserve,” the ICCB said in its latest news bulletin released on Sunday.
“We apprehend, international financial institutions and development partners including the World Bank, IMF and ADB may not be able dole out credits and grants due to on-going economic crisis of the developed world,” it noted.
The ICCB also said Bangladesh’s performance has so far been quite resilient to global economic meltdown; achieving 6.7 percent gross domestic product (GDP)in fiscal year (FY)’11 in line with Asian economies. Its macroeconomic performance was better than expected and regionally its performance had been one of the best.
According to just unveiled 6th Five Year Plan, the government plans to attain higher than 7.00 percent GDP, limit inflation within 7.0 percent, create 10 million new jobs as well as bring down poverty to 22 percent from present 31.5 percent during the plan execution period till 2015.
However, the recent economic indicators of Bangladesh are of concern as it may not be able to achieve 7.0 percent GDP.
The Balance of Payments (BOP) situation has deteriorated markedly in recent months. The twin effects of surging import payments for fuel, goods and services as well as slowdown of remittance inflows in recent months have more than offset the large gain in export growth; contributing to a rapid deterioration of BOP situation and outlook.
Besides, the tension in the money market has contributed to a significant depreciation of the exchange rate of Bangladesh Taka (BDT) against the US Dollar and other major currencies; by about 16 percent during last few months.
Amount money market situation, the ICCB said commercial banks are borrowing money from other banks at a high interest rate to meet fund requirement.
Despite some disturbing signs as indicate above, Bangladesh still holds a much better prospect. According to a study conducted by McKinsey & Company, on behalf of the German-Bangladesh Chamber of Commerce, Bangladesh’s RMG exports will double by 2015 and nearly triple in next 10 years as well as create employment opportunities for additional 3.5 million workers by 2020 in RMG sector alone.
According to industry experts, the target can easily be achieved by exploring new markets in growing Asia, Latin America and Africa. Besides, there are bright prospects of increased export earnings from pharmaceuticals, shipbuilding, leather goods, jute etc and also increased manpower export.
BBN/SSR/AD-22Jan12-2:10pm (BST)