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Vague decisions create hurdles to export: Anwar

By Staff Correspondent
Commerce Minister M K Anwar Saturday urged the private sector to come forward with suggestions and strategies to help the government formulate policies to boost exports. , Exchanging views with members of the metropolitan chamber of Commerce and Industry (MCCI on various problems facing the trade and Industry of the country the minister agreed that vague government decisions often created hurdles to exports.
Earlier, the President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Mosharraf Hossain charged that the Incentives the government has promised In the present export policy are often not materialised.
Anwar agreed to his charges and said that any direction for export promotion should be specific tn the future. He also sought specific suggestions from the private sector to avoid such happenings.
About 100 traders and entrepreneurs exchanged views with the minister for about three hours.
MCCI President. M Morshed Khan emphasised that labour unrest leading to low labour productivity was causing price competitiveness for Bangladeshi products.
He said labour productivity went down by 17 per cent during 1970 to 1986.
Acknowledging the problem, the Minister said "We cannot allow a handful of labourers to hold trade and industry for ransom." He agreed that the labour situation was alarming In respect to productivity.
He further said that the government would not patronise any particular group at the cost of 110 million people.
In response to MCCI's call for exchange rate reform, the minister said that devaluation of the Taka would fall to achieve the desired effect for a heavily Import-dependent country like ours. He suggested seeking alternative ways to boost export.
The entrepreneurs demanded more export Incentives like concessionary rate of Interest and cash subsidies. However, the minister ruled out the subsidy prospect.
Commenting on tariff protection for local Industries, the Minister said that any sueh step would trigger similar steps by other countries which would make oUr market virtually captive.
Commenting on the export performance. Anwar said that 66 per cent of the export target had 'been achieved until February as against 56 per cent In the last fiscal year. He pointed out that this year's target is about 25 per cent higher than last year's.
The entrepreneurs also complained that frequent power failure led to abdut a SO per cent drop tn production In -the industrial Units. They demanded special facilities to use standby generators to combat such situations.