Any hike in bank interest rates now will be a serious setback for the country, as it is passing through a very delicate phase trying to adjust to the post-MFA (multi-fibre arrangement) scenario, a business delegation yesterday told the prime minister.

A new global economic order is emerging, with all countries working hard to improve their market competitiveness, noted the newly elected office bearers and leaders of the Metropolitan Chamber of Commerce and Industry (MCCI) at a meeting with Prime Minister Khaleda Zia at the city's International Conference Centre.

They said Bangladesh's success in addressing the new challenges largely depends on the cost and availability of funds.

In response, Khaleda assured the business magnates of taking all necessary steps in this regard.

The gradual reduction in bank interest rates in the recent years reflects a praiseworthy and timely policy support of the government to businesses, observed the chamber leaders led by MCCI President Kutubuddin Ahmed.

As a result, investment picked up leading to an increased contribution of the manufacturing and services sectors to the GDP, they pointed out. But the recent decision of the Bangladesh Bank to scale up bank interest rates has triggered much frustration in the business community, they reported to the premier.

They said the International Monetary Fund and perhaps also the Bangladesh Bank mistakenly consider that private sector credit has grown at an excessive rate, which might aggravate the inflationary situation. But, according to a central bank analysis, the credit growth has not been excessive at all, they pointed out.

UNB adds: The 14-member MCCI delegation included its Vice-President AKM Rafiqul Islam, Secretary General CK Hyder and members M Shamsul Alam, M Anis Ud Dowla, Steve Banner, M Nurul Islam, Obaidur Rahman Khan, Syed Nasim Manzur and Rokia A Rahman.

Former presidents of the chamber Syed Manzur Elahi, Samson H Chowdhury, Latifur Rahman and Laila Rahman Kabir were also present.

As the chamber leaders discussed a number of business issues, the prime minister reaffirmed to the delegation that hers is a business-friendly government and, at the same time, is aware of the importance of ensuring the welfare of workers and employees.

She urged the industrialists to upgrade safety and security measures and the working condition in their mills and factories. In this context, she requested the authorities to ensure due compensation for the victims of the garment factory building col-lapse at Savar.

She also asked some industrialists to pay their arrears with bill payments for utility services like power, gas and telephone as well as the value-added tax (Vat) so that the government can reinvest more for expanding the utilities.

MCCI leaders termed the recent launching of a world-class hospital in the city by foreign investors a success of the government's policy to attract foreign investment.

They also lauded the government measures that have led to an improved law and order and posted a positive impact on industrial growth.

During the meeting, Khaleda wanted to know about the progress of work on the BGMEA hospital, the foundation stone of which she had laid earlier.

The MCCI leaders invited the prime minister to a function they will organise to celebrate the hundred years of the chamber this year