ZCZC
BSS-37
ICCB-ANNUAL COUNCIL
Bangladesh’s stable economic performance helped reducing poverty: ICCB
President
DHAKA, Dec 14, 2020 (BSS) – Bangladesh recorded one of the fastest
growth rates in the world in the past few years with a stable economic
performance that has helped to reduce poverty and social inequalities, said
ICC Bangladesh President Mahbubur Rahman.
Mahbubur said this while addressing the executive board at the 25th
Annual Council of ICC Bangladesh held virtually today.
Quoting ILO Report, Mahbubur said that Bangladesh is now battling both
the pandemic and its economic fallout. “In such a situation, economic risks
are not only limited to short-term, but also extended to major future
productivity losses both through labour and capital.”
The economic crisis is likely to trigger a series of corporate and
household debt defaults turning into a financial crisis as well, mentioned
the ICC Bangladesh Report.
Like most other emerging economies, Bangladesh has to tackle a number of
key issues in order to achieve the desired GDP growth, which includes
healthcare, sustainable export, FDI and remittance flow.
In Bangladesh there are around 7.8 million enterprises and 90 percent of
them are micro (including cottage) enterprises. This sector contributes
around 25 percent to the GDP, amounting to around $79 billion.
“The high cost of doing business affecting the SMEs. Besides, many SMEs
have been suffering tremendous setbacks in terms of production, marketing and
sales. The SME sector generates 30 per cent of the total employment in the
country as well,” said the ICCB President.
He mentioned that Bangladesh’s graduation from the LDC status by 2024
will lead to the loss of trade preference in major export destinations and
loss of other preferences. “So, Bangladesh must focus on FTAs with major
trading countries.”
The Executive Board Report also said the second wave of COVID-19 has
already started in Europe and US which will further prolong the economic
downturn.
Like most other emerging economies, Bangladesh will also be affected and
will have to tackle a number of key issues in order to achieve the desired
GDP growth, which include healthcare, sustainable export, saving MSMEs,
sending back stranded expatriate workers to their workplace to maintain the
remittance inflow and attracting more FDIs.
Besides, in order to maintain sustainable growth and to keep the supply
chain functional and cost effective, it is very much important to save MSMEs
(micro, small and medium enterprises).
The G20, along with the WHO, IMF, World Bank Group, United Nations and
other international organizations, are mobilized to take active steps to
overcome the pandemic, and the International Chamber of Commerce (ICC) is
collaborating as a trusted business advisor with many of these engaged
stakeholders.
The Report mentioned that as part of this campaign, ICC Headquarter has
released a call to action encouraging governments to ensure that stimulus
efforts flow rapidly into the real economy and provide direct and immediate
support to MSMEs and their workers to ensure their continued operation.
Given the cross-border nature of supply chains, such stimulus and
safeguard measures should be taken in a coordinated manner at both the
national and international levels.
Countries around the world are implementing economic and fiscal policy
stimuli, including emergency tax measures to support their economies under
the COVID-19 pandemic. In this respect, ICC has highlighted a number of key
tax measures that the governments can take to “Save Our SMEs” and relieve
cash flow stress during the crisis period.
The Council approved the Auditor’s Report of 2019 and appointed Auditor
for the year 2020.
Prominent business leaders attended the ICCB Annual Council.
BSS/PR/GM/FI/ 1830 hrs