Metropolitan Chamber of Commerce and Industry on Thursday urged the government to take measures to achieve and maintain political stability for creating investment-friendly climate to get higher economic growth and foreign investments.
The chamber made the call in its July-September quarterly report titled ‘Review of Economic Situation of Bangladesh’ published on Thursday.
The MCCI report issued by its secretary general Farooq Ahmed mentioned that infrastructure deficits and gas and power supply problems were now undermining the performance of all productive sectors of the economy.
The government should adopt adequate steps to overcome these problems, the report said adding that these issues along with political stability were so crucial for achieving higher economic growth.
It also mentioned that the overall economic situation was positive as indicated by steady improvements in the major economic indicators.
The economy is progressing well despite the presence of some risk factors including marginal growth in remittances, slower growth in the export receipts, and a lower rate of investment specially FDI, the quarterly review of MCCI said.
Inflation was under control, the exchange rate remained stable, and foreign exchange reserves rose to a comfortable level, it mentioned.
About the manpower export, the MCCI report said that the country’s overall manpower export as well as female workers jobs in the international markets declined in July-September of FY19 compared with that in the previous quarter.
Only 1,63,391 workers from Bangladesh entered the international markets with jobs in the July-September quarter against 1,87,801 manpower export in the previous quarter.
Some 16,292 female workers entered the international markets with jobs in Q1 of FY19 as against 28,135 in Q4 of FY18.
The net foreign direct investment increased by $15 million or 7.46 per cent to $216 million from $201 million in the corresponding two months of FY18, the MCCI report said, adding that FDI inflow in Bangladesh was low compared with that in many countries at similar level of development.
Bangladesh’s low labour costs are generally believed to be attractive to foreign investors, but yet they hesitate to make fresh investments in the country because of underdeveloped infrastructure, shortage of power and energy, lack of consistency in policy and regulatory framework, scarcity of industrial lands, corruption, and political uncertainty.
Revenue collection by National Board of Revenue in July-August of FY19 fell short by Tk 7,260 crore or 20.41 per cent of its target of Tk 35,577 crore mainly due to the negative growth in the collection of value-added tax and customs duties, the report said.
The implementation rate of Annual Development Programme in the quarter under review was lower than that in the same period of the previous fiscal year both in terms of percentage and volume.
According to the IMED data, 57 ministries and divisions could spend Tk 149.27 billion or 8.25 per cent of the total allocation of Tk 1,808.69 billion in July-September of FY19.
The report mentioned that the agriculture sector performed well at 4.19 per cent in FY18 against 2.97 per cent growth in FY17 due to favourable natural factors and strong official policy and the industrial sector grew by 12.06 per cent in FY18 against the 1.84 per cent growth in the previous fiscal year.
Private sector credit registered 14.95 per cent growth in the 12-month period between August 2017 and August 2018 compared with 17.84 per cent growth in the previous one year.

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