International Chamber of Commerce Bangladesh president Mahbubur Rahman on Saturday emphasised right policies and timely action for avoiding falling into the ‘middle-income trap’ as he said a number of countries was stuck in the lower-middle-income status and was unable to move up.
‘The country is now at an important juncture. Right policies and timely action are needed in order to avoid falling into the middle-income trap,’ he said while presenting the executive board report at the ICC Bangladesh Annual Council.
The report said that Bangladesh should now be prepared for probable impacts of graduation and that it was high time for the country to formulate effective strategies to face the challenges of graduation as it would gradually lose preferential trade opportunities.
‘The probable impacts of Bangladesh’s loss of preferential facilities in major export destinations will be felt on export, sustainable GDP growth and other socio-economic indicators,’ the report read.
Currently, Bangladesh is enjoying preferential trade facilities in more than 40 countries and economists predict that the country is likely to lose about $2.7 billion in export earnings every year once it graduates from the Least Developed Country bracket, the report added.
The ICCB president said that ensuring political stability, export diversification, efficient infrastructure, access to reliable and affordable power, reform in financial sector and enforcement of laws to reduce cost of doing business were important to achieve 4 per cent plus economic growth.
Mahbubur observed that the influx of Rohingya refugees had put pressure on the economy and overall security of Bangladesh.
ICCB vice-presidents Latifur Rahman and Rokia A Rahman, Dhaka Chamber of Commerce and Industry president Abul Kasem Khan, ICCB board members ASM Quasem, Aftab ul Islam, Md Fazlul Hoque, R Maksud Khan and Tapan Chowdhury, among others, attended the event.
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