AKM Moinuddin,UNB Staff Writer from Nepal
Kathmandu, Sept 22 (UNB) – Lack of proper connectivity is the major hurdle in boosting trade and investment in the South Asia region, says a leading Indian businessman.
“This region should emerge as a prosperous region. It’s my personal dream. We’re ready to offer things with an open heart,” Vikramjit Singh Sahney told UNB Staff Correspondent AKM Moinuddin on the sidelines of 4th SAARC Business Leaders’ Conclave at Soaltee Crown Plaza Hotel on Thursday.
Vikramjit is set to take over the charge of Saarc Chamber of Commerce and Industry for the next term.
Many of Saarc business leaders believe that India, being a big player in the region, does not play its due role for the development of the region and they openly came with such allegations in the Conclave.
When asked about it, Vikramjit said, “It’s not true. We want to play a proactive role for the development of trade and investment in the region.”
He said free mobility and free trade will have to be ensured for further development. “But I see an only impediment which is visa problem. It should be resolved. We’re so near to each other. We need to enhance physical and mental connectivity.”
As a big brother of the region, Vikramjit said, it is the responsibility of India to play an active role in all the areas.
Earlier, at a discussion on ‘Trade and Investment Opportunities in South Asia and Challenges’, the experts and business leaders urged India to play an active role for the economic growth as well investment in the region.
Senior specialist of World Bank Amer Z Durrani, head of Pakistan Trade Development Authority Mujeeb Khan, Aligarh Muslim University teacher Prof Dr Badar Alam Iqbal, Nepal Urban Development Forum coordinator Om Rajbandary, Executive Director of IPS Sri Lanka Dr Saman Kelegama and Senior Private Sector Development specialist of IFC Paramita Dasgupta spoke at the session held with Center for Policy Dialogue (CPD) chairman Prof Rehman Sobhan in the chair.
Speaking at the function, Rehman Sobhan said, “India, being a big economy in the region, will have to play the key role. This region, especially India, has a big market where countries want duty-free access.”
He also said other countries will have to prepare to enter the Indian market. “…we’re trying to enhance the communication and connectivity within the region.”
Rehman Sobhan said it needs to be sure whether Chittgaong and Mongla ports have infrastructural capacities for allowing Nepal and Bhutan to use the seaports. It takes time at the government-level in implementing any decision. Momentum is needed in this regard.”
Om Rajbhandary of Nepal said SAFTA will have to be implemented timely to enhance trade in the region. “Still, the sensitive list is too big. It needs to be cut down.”
The speakers and participants observed that the South Asian region, which is apparently facing slow growth, will be able to attract bulk foreign investment and give a boost to internal trade within the region if SAFTA is implemented.
They find no alternative other than implementation SAFTA to enhance internal trade in the region and attract more foreign investment in the region from the entire globe and suggested using SAFTA as the means of economic development of the region.
The discussants laid emphasis on the removal of tariff and non-tariff barriers, minimising the sensitive lists of products to ensure investment-friendly environment in the region.
Meanwhile, two more session on creating young leadership and Tourism, Cultural Exchange and Role of Media were also held.
Politicians, business leaders, celebrities, media people, cultural activists were present.
Wednesday, February 8, 2012
Economy under pressure, not in crisis: Atiur ‘Difficult months to give way to a new equilibrium for economy’
Shayan S Khan and AKM Moinuddin; UNB Staff Writers
Dhaka, Feb 6 (UNB) - Bangladesh Bank governor Dr Atiur Rahman on Monday strongly refuted the view expressed in some quarters of the country being mired in a macroeconomic crisis and said there are pressures on the country’s economy but not the crisis.
He invoked Rabindranath Tagore to liken the Bangladesh economy to an autumn sky [shoroter akaash], filled with dark as well as silver clouds.
“Yes, there’re pressures but no crisis of the sort being talked about. We’re taking measures to make sure the silver clouds edge out the dark ones, and they are starting to bear results,” optimistic Dr Rahman told UNB in an interview at his office on Monday.
He revealed that the downward spiral in the exchange rate of the taka against the dollar had been “arrested” in the last two-three days. He and his team expect to see a further easing of the downward trend today.
Styling himself “not your conventional central banker”, the former development economics professor signed off on a note of optimism that a difficult few months would soon give way to “a new equilibrium” for the Bangladesh economy.
“We’ve been going through a correctional phase. This has presented a number of challenges, but we’ve responded with appropriate measures, in conjunction with the government,” he said.
Dr Rahman went on: “As a result, within a couple of months, we can look forward to the exchange rate, the rate of interest, and inflation settling at a new equilibrium.”
The governor attributed the policy of cutting down to non-essential import items (luxury goods) in recent weeks, something he had advised to ease the pressure on the balance of payments while releasing the latest Monetary Policy Statement on Jan 26.
Back in office today after his return on Saturday from a trip to India- where apparently other central bankers and economists from the region all had very positive things to say about the Bangladesh economy, some even branding it the “best-placed” under current circumstances in South Asia- the governor also sounded a positive note on inflation, saying he expects food inflation in particular, to decline during the month of February.
Although that would be offset by an increase in non-food inflation spurred by increased fuel prices and electricity rates, Dr Rahman is confident that the overall inflation rate will start witnessing a slowdown in the coming months.
Dr Rahman also expressed his confidence over securing the US$1 billion Extended Credit Facility (ECF) loan from the Washington-based lender - International Monetary Fund (IMF).
“The IMF mission arrives here tomorrow (Tuesday) to finalise the details …things look positive. If we get the loan, it’ll help a lot cut pressures on the Balance of Payments (BoP),” Atiur said.
He brushed off suggestions that availing of the loan would leave economic policymaking beholden to IMF conditions. “This is essentially a budget support for the government.”
“They don’t advise anything that is outside the purview of our own reform agenda. They only want those to be implemented. Anyway the ECF (extended credit facility, the scheme under which the loan would be disbursed) is different from the IMF’s Structural Adjustment Policies of the past, as it doesn’t attach any conditions,” Dr Rahman said.
The continuous price hike of food, fuel, fertilizer and essentials on the international market, food price hike in the internal market, high growth of money supply against the target and depreciation of the Taka were the reasons behind the rising inflation in 2010-2011 fiscal, Atiur said.
“Given that situation, we’ve taken cautious monetary policy. It’s corrective phase. Situation will improve,” he said.
Dhaka, Feb 6 (UNB) - Bangladesh Bank governor Dr Atiur Rahman on Monday strongly refuted the view expressed in some quarters of the country being mired in a macroeconomic crisis and said there are pressures on the country’s economy but not the crisis.
He invoked Rabindranath Tagore to liken the Bangladesh economy to an autumn sky [shoroter akaash], filled with dark as well as silver clouds.
“Yes, there’re pressures but no crisis of the sort being talked about. We’re taking measures to make sure the silver clouds edge out the dark ones, and they are starting to bear results,” optimistic Dr Rahman told UNB in an interview at his office on Monday.
He revealed that the downward spiral in the exchange rate of the taka against the dollar had been “arrested” in the last two-three days. He and his team expect to see a further easing of the downward trend today.
Styling himself “not your conventional central banker”, the former development economics professor signed off on a note of optimism that a difficult few months would soon give way to “a new equilibrium” for the Bangladesh economy.
“We’ve been going through a correctional phase. This has presented a number of challenges, but we’ve responded with appropriate measures, in conjunction with the government,” he said.
Dr Rahman went on: “As a result, within a couple of months, we can look forward to the exchange rate, the rate of interest, and inflation settling at a new equilibrium.”
The governor attributed the policy of cutting down to non-essential import items (luxury goods) in recent weeks, something he had advised to ease the pressure on the balance of payments while releasing the latest Monetary Policy Statement on Jan 26.
Back in office today after his return on Saturday from a trip to India- where apparently other central bankers and economists from the region all had very positive things to say about the Bangladesh economy, some even branding it the “best-placed” under current circumstances in South Asia- the governor also sounded a positive note on inflation, saying he expects food inflation in particular, to decline during the month of February.
Although that would be offset by an increase in non-food inflation spurred by increased fuel prices and electricity rates, Dr Rahman is confident that the overall inflation rate will start witnessing a slowdown in the coming months.
Dr Rahman also expressed his confidence over securing the US$1 billion Extended Credit Facility (ECF) loan from the Washington-based lender - International Monetary Fund (IMF).
“The IMF mission arrives here tomorrow (Tuesday) to finalise the details …things look positive. If we get the loan, it’ll help a lot cut pressures on the Balance of Payments (BoP),” Atiur said.
He brushed off suggestions that availing of the loan would leave economic policymaking beholden to IMF conditions. “This is essentially a budget support for the government.”
“They don’t advise anything that is outside the purview of our own reform agenda. They only want those to be implemented. Anyway the ECF (extended credit facility, the scheme under which the loan would be disbursed) is different from the IMF’s Structural Adjustment Policies of the past, as it doesn’t attach any conditions,” Dr Rahman said.
The continuous price hike of food, fuel, fertilizer and essentials on the international market, food price hike in the internal market, high growth of money supply against the target and depreciation of the Taka were the reasons behind the rising inflation in 2010-2011 fiscal, Atiur said.
“Given that situation, we’ve taken cautious monetary policy. It’s corrective phase. Situation will improve,” he said.
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