March 25, 2003	Tuesday	Muharram 21, 1424

DHAKA, March 24: The leading chambers and trade associations of Bangladesh have requested the government to reduce bank interest rates, gas and power tariffs and port charges to protect the country’s export sector from possible fallout of the Anglo-American war on Iraq.

The leaders of the trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Dhaka Chamber of Commerce and Industry (DCCI) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the request, when they met Commerce Minister Amir Khasru Mahmood Chowdhury during a discussion with the top officials of the Export Promotion Bureau (EPB) on Saturday. The business leaders proposed that the bank interest rates be reduced by four to five per cent.

The business leaders also urged the minister to withdraw the bank guarantee system for export purposes, release Tk 10 million worth of cash incentives to the exporters of handicrafts, organize inter-ministerial meeting to strengthen the monitoring of frozen food export and simplify customs procedure through arranging a meeting of the EPB and the National Bureau of Revenue (NBR). The chamber leaders also advised that the Bangladesh Bank, the central bank of the country, should take steps to disburse cash incentives to exporters immediately after the issuance of certificate by the audit firms.

The minister reportedly assured the business leaders that he would take up the issues with Prime Minister Begum Khaleda Zia as soon as possible.

Meanwhile, the Dhaka based financial daily, the Financial Express, has reported that the country’s export sector has started bearing the brunt of the Anglo-American strike against Iraq and export orders for 8,728 tons of jute yarns worth about Tk 250 million have already been cancelled. Besides, foreign buyers have asked the local exporters to delay the shipment of 12,500 tons of jute yarns worth about Tk 360 million.

The newspaper has also reported that the export sector has witnessed a dismal performance in the first six months of the current fiscal and the export earnings fell by 6.44 per cent from July to December of 2002-03. The country earned $3,157.60 million against the target of $3,375 million, a fall of $217.40 million compared to the last fiscal. Exports of woven garments, leather goods, textile items, footwear, ceramic tableware, tea, computer software and handicrafts have gone down.

Besides, export of some items witnessed a sharp fall. For example, leather export fell by 28.97 per cent, fabrics by 69.26 per cent, footwear by 30.47 per cent, ceramic tableware 15.57 per cent and bi-cycle by 6.20 per cent.

However, the exports of knitwear, frozen foods, jute goods and raw jute, different agricultural products, petroleum byproducts, electronics, engineering and chemical products have gone up, the Financial Express reported quoting officials of the Export Promotion Bureau.