Several initiatives of new govt praiseworthy, but there is room for improvement: BKMEA

The new government has taken several initiatives to make business operations easier, support the private sector and restore momentum to the economy, but there is room for improvement in some areas, the knitwear makers said today.

For instance, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said the central bank has taken several initiatives to support the private sector, including an incentive package through refinancing to help restart distressed, partially or fully closed factories.

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Efforts have also been made to ease certain policy-related issues, it said.

The association lauded the government’s decision to allow partially export-oriented exporters and exporters without bonded warehouse facilities to import raw materials duty-free against bank guarantees.

This facility will be very helpful for exporters and make it easier for them to conduct their operations, the trade body believes.

Positive changes have also been made to tax policy, introducing business- and investment-friendly measures, according to a statement released by the association.

However, six months is not enough time to evaluate any government, it said.

The BKMEA said the government inherited some challenges from the previous administration, including shortages of gas and electricity, which cannot be resolved in the short term.

Nevertheless, the association praised the initiatives of the prime minister and the energy minister, as they have taken several immediate short-term initiatives aimed at addressing them.

As part of this effort, they have consulted business associations and business leaders and sought their suggestions on how these problems can be resolved.

They have also made commitments to address the energy crisis in the long term. As part of these initiatives, the finance minister and the commerce minister have also worked sincerely towards resolving these issues.

The trade body said the finance minister also explained at an event last Sunday that there is no shortcut to resolving the crisis related to liquefied natural gas, as it would take approximately two years to install a new floating storage and regasification unit (FSRU).

However, as part of its long-term plan, the government has decided to install another FSRU, and he expressed hope that the gas crisis can be resolved within the next two years.

Although Bangladesh Bank has taken various measures, the problems in the banking sector have yet to be resolved.

Meanwhile, the overall law-and-order situation has deteriorated somewhat during this period.

“Overall, we see that the government is making its utmost efforts to address these challenges. We hope that, in the long run, it will be able to resolve these problems,” BKMEA President Mohammad Hatem said in the statement.