President of Dhaka Chambe/ of Commerce and Industry (DCCI) Mahbubur Rahman on Wednesday stressed the need for effective protection including import restrictions to help local industries grow.

At a meeting with Charles Draper. Senior Economist and a member of the visiting World Bank (WB) appraisal team, at the DCCI office, the chamber President pleaded strongly for continuation of existing fiscal incentives and facilities for the industrial sector.

The two sides had extensive discussions on industrial development Issues In the context of the WB s Industrial Sector Credit programme and the forthcoming Industrial Policy of the government, says DCCI press release.

The Bank official explained its policy for Industrial development programme in court tries like Bangladesh. He ob-

served that the industrial sector would perform better if the policy as recommended by the Bank, was followed.

DCCI said in It press release that the discussions between Its President and the WB official centred on the views of the Bank about provisions of fiscal incentives under the forthcoming industrial policy. The Bank has raised objections to such provisions.

Mahbubur Rahman told the WB official that fiscal Incentives and facilities like lower rates of interest on credits for supporting export-oriented industrial activities, special fund allocation for setting up new industries and mainte nance of concessional duty for import of capital machinery for less and least developed areas werr needed to promote Industrial development in Bangladesh.

Such concessions in their existing forms, he stressed.

should remain without any disruptions for at least up to 1995. Only thereafter the recommendations of the Bank might be taken up for phasewise implementation. Withdrawal of any existing incentives will not only adversely affect private sector Invest ments but also cause embarrassment to the new political government, he added

The DCCI President observed that any blanket import liboralisation would be fatal for most industries in Bangladesh at this stage of its economic development.

Responding to the DCCI President's suggestions, the Bank official Indicated that some adjustments might be possible in different forms without affecting the basic framework of financial sector reforms which were earlier agreed upon between the government and the Bank, the press release added.