Budget offers no solutions to industries’ challenges: BCI

The national budget for the upcoming fiscal year did not offer solutions to the multiple challenges facing the industrial sector, said the Bangladesh Chamber of Industries (BCI) yesterday.

It said industries have been seriously impacted by the fallout of the coronavirus pandemic and the war between Russia and Ukraine. But no direction came from the proposed budget for 2023-24 on how they would tackle the situation, it said in a press release.

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Though the finance minister said the government is focusing on attracting foreign direct investments, creating jobs and developing import-substitute sectors, there was no clear direction in the budget, especially for micro, cottage and small enterprises, the chamber said.

Around 45 per cent of micro, cottage, and small enterprises in Bangladesh have gone out of business due to the impacts of the pandemic and the war, it said.

Medium and large companies are also witnessing lower growth because of high inflationary pressure, the dollar shortage, and the energy crisis.

"But there is no direction in the proposed budget on how industries can move out of the current predicament and return to their usual growth trajectory," the chamber said. 

The BCI urged the government to focus more on local industries and import-substitute industries so that they can continue to create jobs.

Owing to a spike in the prices of energy and the shortage of electricity, industries are running at 50 per cent of their capacity. So, the government should focus on ensuring the energy supply, it added.