CA asks businesses to solve problems with govt backup (Bangladesh)

Chief Adviser Fakhruddin Ahmed yesterday asked the business community to take the lead to overcome the problems of high demands on limited resources.Fakhruddin advised the business community to solve the recent labour unrest in the RMG sector on their own initiative while taking a move to lower costs and easier access to finance from the private banks, who have a major stake in the country's banking system.“The government is not the answer to all problems in the market, but it can facilitate solutions to the problems,” he told a dialogue of business community at Hotel Radisson.“It is ultimately the responsibility of the business community to take the lead and solve the problem. That is the best and only way forward for us,” said the chief adviser, assuring government's role of facilitation with as little intrusiveness as possible.Bangladesh Better Business Forum (BBBF) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) co-organised the dialogue, “Public-Private Partnership for Economic Development: Bangladesh Perspective” marking the first anniversary of BBBF.Finance Adviser Mirza Azizul Islam, Army Chief General Moeen U Ahmed, BBBF members ICC,B President Mahbubur Rahman, DCCI President Hossain Khaled and industrialist Laila Kabir took part in the discussion. FBCCI President Annisul Huq gave the address of welcome.The chief adviser said business should be supported by a government that facilitates more and impedes less while does not delay the ability of business activities to quickly meet market demands. “This is a commitment that must be made by any government that is truly for the people.”Replying to a volley of questions from the audience mainly from the businesses, he said the government would continue to give emphasis on law and order situation and maintain it.He, however, called upon the RMG entrepreneurs to consider labour as a production input like their capital and solve the problem of the investment on their own.“The government will maintain the law and order, but we also want that the industry must have to take some responsibility,” he said.On the energy crisis -- the prime concern of the business community -- Fakhruddin said the national coal policy was being discussed in the council of advisers while the first meeting sent back the draft policy for further review.“We'll be able to make a coal policy,” said the chief adviser. “It's a resource. We should use the resource for the benefit of the people and the country.”In response to another question, Fakhruddin expected that progress in BBBF activities would be faster next year than before.The chief adviser also expected that the BBBF would continue even in the regime of next political governments, as the business community wants it as a good interface between the government and the businesses.Amid demand from a woman business leader, Nasrin Awal Mintoo, the BBBF chairman instructed the BBBF secretariat to ensure more women representation in the body.In his speech, Fakhruddin said a better investment climate would make for more and better investments that in turn lead to greater employment, better jobs and better wages, creating a larger domestic market that in turn creates newer demands in the market.“It's for this reason that we must focus not simply on better returns for investors in the short run, but on better returns for all stakeholders involved,” he said.“The government clearly cannot achieve this result alone, and neither can the private sector; but working together we can achieve the objective of a truly more conducive investment climate that supports a high and sustainable growth,” he said.Taking part in the discussion, Finance Adviser AB Mirza Azizul Islam called upon the private sector to use the BBBF in reducing the lending rates on bank loans so they could help their counterpart in the production, as a significant part of the banking system is owned by the private sector.BBBF could also encourage businessmen to comply with the tax obligation to help government reduce dependence on bank borrowings, reduce pressure on the commercial banks and thus contribute to lower interest rate, said the finance adviser. “It can also reduce the dependence on foreign aid.”General Moeen U Ahmed pointed out that endemic corruption in certain sectors was damaging the image of the country, hindering the foreign direct investment.“If we can remove corruption, we can have economic growth at a rate of double digit,” he said. The country has recorded a significant economic growth in the last fiscal year despite having political hiccups, anticorruption drive and natural disasters.