The New Nation - Internet Edition

Staff Reporter

Top level business leaders and economists have observed that a sort of stagnation in the country's economy is still prevailing mainly because of lack of confidence among businessmen.

Speaking at the opening ceremony of new building of Bangladesh Economic Association (BEA) at the city's Eskaton Garden Road yesterday morning, they suggested the government to take necessary steps for reducing the gap with the private sector for overcoming the economic stagnation.

The opening ceremony was attended by noted economists, researchers, and entrepreneurs of the private sector.

BEA President Dr Quazi Kholiquzzaman Ahmed presi-ded over the function.

Eminent economists Prof Nurul Islam, Prof Rehman Sobhan, Dr Abul

Barakat and BIDS Director General Dr Kazi Shahabuddin, among others, addressed the function. While speaking at the opening ceremony, industrialist Syed Manzur Elahi said reduction in import of capital machinery proved that businrssmen were not interested about making new investments.

"Import of capital machinery has gone down substantially. Businessmen are not opening L/Cs due to lack of confidence although there is a liquidity of Tk 11,000 crore with banking system. The government should take initiative to start dialogues with the private sector.

"There is a gap between government and private sector which must be brought down to restore business confidence," he said.

Manzur Elahi, however, appreciated the government steps to improve the situation as the government has formed a Better Business Forum and Regulatory Reforms Commission in this regard.

"The steps are good, but implementation of the decisions is important," he told reporters after the function, adding that the government knows well how to deal with the situation.

He stressed the need for increased interaction between the government and the private sector as a tool to reduce the gap.

Manzur Elahi, however, expressed the hope that the situation would change positively with the efforts of the Bangladesh Bank and the government.

According to Bangladesh Bank figures, the excess liquidity of the banking system stood at around Tk 14,000 crore in June this year, but declined to around Tk 11,000 crore by now.

Dr Barakat said the inauguration of the new BEA building is a good news when the country is passing through a frustrating situation.