The New Nation - Internet Edition

Pulack Ghatack

The economy is about to regain its health and inflationary pressure is likely to ease a bit with restoration of a vibrant business environment, as the Government has taken a number of steps, economists and business leaders said.

They, however, suggested the government not to rely on businessmen and to import on its own and supply essential commodities among consumers within affordable rates.

The interim government, in its effort to re-establish confidence among the business community, has started to release top businessmen, who were detained on suspicion of corruption.

The Government also has taken a bold step to build a top-level business forum, titled Better Business Forum, incorporating public and private sector representatives in it ensuring permanent participation of business leaders in the government's policy making process.

Transactions in billion-dollar bank accounts will resume soon, as NBR chairman Abdul Majid has put a broad hint to allow it for smooth functioning of business farms.

Moreover, to strengthen Taka against foreign currencies, the central bank has started to release dollar from its reserve - resultantly appreciation of the local currency will lessen import cost and cool down the import-dependant market.

MA Rouf Chowdhury, a top businessman and director of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has termed all the steps positive to create a 'vibrant business' atmosphere.

Hossain Khaled, President of the Dhaka Chamber of Commerce and Industries (DCCI) said, "The interim government at last has understood that business community is the driving engine of the economy and we hail its steps."

Rouf Chowdhury, however, suggested the government to import substantial amount of commodities to meet the demand of the local market and to ensure affordable prices to the consumers.

"Prices of some items are very high in the international market, businessmen will not be able to supply those at affordable price to commoners in the domestic market," he said.

"To offer people comfort, substantial import by the Government is a must," said the leading importer of the country.

Noted economist Dr Atiur Rahman also suggested the government to go for large-scale import, especially of food items. "The government can create a rich buffer stock of food in stead of maintaining a huge foreign exchange reserve," he suggested.

He also suggested the government to amend the Public Procurement Regulation (PPR), which is hindering frequent import of food items.

Executive Director of the Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman said Government's steps might work as an immediate relief in the economy and suggested to address fundamental problems of the economy which are 'graver'.

"Appreciation of Taka was a reality. But, I think, the government will not do it extensively, for it may hurt export and remittance earnings," he said.

The chief of the independent economic think-tank also expressed suspicion, whether the less import cost will benefit the retail market.