Business revenues drop due to high inflation: BCI

Leaders of the Bangladesh Chamber of Industries (BCI) have said that high inflation in the country has led to a decline in sales revenues across various sectors, while higher interest rates have further exacerbated the situation. 

They made this observation during a meeting with Bangladesh Bank Governor Dr. Ahsan H. Mansur at the central bank headquarters in the city on Sunday. 

The BCI leaders pointed out that no industry is currently able to operate at full capacity, resulting in a production decline of 30-40 percent. 

BCI President Anwar-ul Alam Chowdhury (Pervez) emphasized that as the only national chamber representing the industrial sector, the BCI is working to remove all obstacles hindering the development of local industries. 

The BCI leaders also highlighted that industries are facing challenges in opening letters of credit due to various issues. Furthermore, the proposal to raise gas prices and increase taxes/VAT as per the recommendations of the International Monetary Fund (IMF) would worsen the situation.  

"In the current situation, the challenge is the survival of industrial institutions," said Chowdhury, adding, "We need to sustain our current industries, and if the industry survives, there will be no problem with foreign exchange." 

He also mentioned the absence of an exit policy, stressing the need for such a policy, similar to other countries. 

The BCI president pointed out that it currently takes 9 months to 1 year to receive the benefits after submitting an application for cash incentives for export-oriented industries. As a result, industrial institutions are unable to meet their operational costs on time or pay employee salaries. He suggested reducing the time for providing cash incentives to 2-3 months. 

Chowdhury also noted that the cottage, micro, and small enterprise (CMSE) sector is currently facing the greatest losses. "We must take measures to sustain the CMSE sector," he said. 

He proposed establishing a special fund and offering low-interest loans for the CMSE sector. Additionally, he suggested using a district or cluster as a pilot project and financing it through a digital platform.