The Dhaka Chamber of Commerce and Industry (DCCI) has urged the government to enhance market monitoring to curb inflation and enforce stricter laws to dismantle illegal syndicates.

The chamber also recommended further austerity measures to rein in public expenditure, citing concerns over revenue generation.

DCCI president Taskeen Ahmed made these remarks while presenting the keynote at a seminar titled “Bi-annual Economic State and Future Outlook of Bangladesh Economy: Private Sector Perspective (July-December 2024)” in the capital on Saturday.

He also said that private sector growth experienced an alarming decline, declining by almost 25 per cent to 7.3 per cent in July-December of the current fiscal year.

‘Private sector growth was 9.8 per cent at the end of June 2024 and by December, it had declined to 7.3 per cent,’ he added, urging to increase the credit flow to double digits in the private sector.

He also suggested strong vigilance to reduce non-performing loans, good governance and transparency in the financial sector, and reducing the interest rate on loans to restore entrepreneurs’ confidence.

He also demanded that safety and security and strict law and order be ensured to sustain the growth of the private sector and the uninterrupted supply of electricity and gas.

In a speech, panel discussant M Masrur Reaz, chairman of the Policy Exchange of Bangladesh, said that due to the central bank’s delay in taking necessary measures and printing extra money, coupled with several other national and international factors back in 2022, inflation has gone high.

He also said that if the reserve increases to $25-$27 billion within the current fiscal year, imports in the industrial sector and supply side will improve as well.

He suggested strengthening the capacity of the Bangladesh Competition Commission and other government agencies to contain inflation and price manipulation.

He also said that if the government can ensure an uninterrupted energy supply and control industrial unrest, the exports will increase by $5-$7 billion more.

Chief guest Md Abdur Rahim Khan, additional secretary (export), Ministry of Commerce, said that $40 billion in revenue in an almost $500 billion economy is frustrating.

‘We do not see full automation of all government services and proper implementation of the National Single Window which is a concern for all of us,’ he added, saying that it is possible to reduce the cost of trade by 10 per cent to 15 per cent if the logistics policy and trade facilitation agreement of WTO is fully implemented.

He also said that increased revenue generation and attracting export-oriented foreign direct investment can reduce the investment gap.

Mohammad Abu Eusuf, Professor at the Department of Development Studies at the University of Dhaka, said that the government should not declare a traditional budget with a huge deficit for the next fiscal year.

The government has to take loans from the banking sector to balance the deficit budget, which negatively impacts private sector credit flow.

Bangladesh Bank’s executive director (research), Sayera Younus, expressed her hope that inflation will fall below 7 per cent by 2026 and credit flow to the private sector will increase to double digits by next year.

At the event, participants from government offices, academicians, business leaders, and experts also spoke.