FBCCI calls for smooth energy supply

Uninterrupted supply of energy is the main demand of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), as it has a significant impact on the industrial sector. 

The apex trade body called for more allocation for the energy sector to ensure power supply for enterprises.

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If industries do not get adequate electricity and fuels at fair prices, their production will be hampered, thus the economy will be impacted, said Md Jashim Uddin, president of the FBCCI.

The industries will have to create jobs for the youths joining the job market every year but they will not be able to do so if the energy supplies to their manufacturing units are hampered, he asked.

The government can raise the allocation by partially shifting funds from other sectors which bear relatively low importance, he said.

The government proposed an allocation of Tk 34,819 crore for the energy sector in the national budget for fiscal year 2023-24.

"I know that businesspeople feel the major pain from the energy sector because severe power outages come with huge costs for them," said Jashim.

Apart from the energy sector, the government should give more focus on skills development, he said.

His comments came at a press briefing the FBCCI organised on its premises in Dhaka yesterday to convey its reaction on the proposed national budget for fiscal year 2023-24.

Mostofa Azad Chowdhury Babu, senior vice president of the FBCCI, and Sameer Sattar, president of the Dhaka Chamber of Commerce and Industry (DCCI), were also present.

The FBCCI also demanded withdrawing all types of advance income tax and advance tax on imports as the refunding system of the tax was very complex and it increased the costs of business.

About the challenges in implementation of the proposed budget, Jashim, reading out from a written statement, spoke of taming inflationary pressure, improving balance of payments, stabilising the foreign exchange rate, raising foreign exchange reserves, getting crude oil and ensuring energy supplies.

A journalist asked how much of the crowding out effect the private sector would face if the government borrowed a huge amount from the banking sector.

The FBCCI president said import of raw material was plunging along with capital machineries and if this continued, the private sector would not need credit in the upcoming year.

From July 2022 to April 2023, opening and settlement of letters of credit (LCs) for importing raw materials dropped by around 32 per cent and 9.5 per cent respectively, according to Bangladesh Bank.

In the same period, opening and settlement of LCs for importing capital machinery fell by around 57 per cent and 17 per cent respectively, the data showed.