Budget should have no scope for govt bank borrowing, say businessesStaff Correspondent
Businesses on Thursday urged the finance minister to keep in the next budget a provision that the government would not take loans from local banks.
‘When the government takes loans from local banks, it creates liquidity crisis and that’s why local industries cannot take loans from banks which hamper local industries’, said AK Azad, president of Federation of Bangladesh Chambers of Commerce and Industry.
He was speaking at the inauguration of Bangladesh Furniture and Interior Décor Expo-2012 at Rupashi Bangla Hotel.
Finance minister AMA Muhith, however, said that the budget would have a provision for taking bank loans as there would be deficit in the budget like the previous years.
Azad said when government took loan with 6-7 per cent soft interest rate, the interest rates for local industries went high up to 20 per cent.
He also urged the government to impose high duty on importing luxury items like private car.
He said the government should promote domestic industries by imposing high duty on imports of luxury products.
‘The government should promote local industries which could generate employment,’ he said.
‘It is difficult to prevent deficit budget, though the deficit would not be more than 5 per cent,’ he added.
Muhith said the government would fill the deficit budget with foreign loans and bank loans.
He called upon the opposition parties to stop calling general strikes saying that such strikes affected the national economy.
About giving duty facilities to import raw materials for furniture industry, he said the government would add duty facilities for importing raw materials in the next budget.
The three-day furniture and interior decor expo was jointly initiated by Export Promotion Bureau, Bangladesh Furniture Exporters Association, Bangladesh Handicrafts Manufacturers & Exporters Association, Bangladesh Jute Diversified Product Manufactures & Exporters Association and Bangladesh Furniture Industries Owners Association in collaboration with Jute Diversification Promotion Centre and Katalyst.
Jute product manufacturers and exporters association president Shahedul Islam said international jute products industry was a million dollar market, and so Bangladesh has a great opportunity to tap the market.
Furniture exporters association chairman KM Akhtaruzzaman said furniture industry of the country would provide employment for 50 lakh people in the near future.
He also urged the government to establish an institute to impart training on furniture designing and technology.
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