Dr. Yunus seeks businesspersons’ partnership in Bangladesh’s new journey

Chief adviser professor Muhammad Yunus Thursday said his government is committed to improving the business environment in Bangladesh through reforms, seeking businessmen’s partnership in the country’s new voyage.

“No country is perfect. Neither is Bangladesh. But I see an emerging Bangladesh that is committed to upholding freedom and justice. We are firm to improve our business environment through multipronged reforms that we have initiated,” he said.

The chief adviser made the remarks at the US-Bangladesh Industry Roundtable organised by the US-Bangladesh Business Council at the Westin New York Grand Central on Thursday (local time).

“I am here to hear from you and open to suggestions to improve our investment environment. We seek your partnership in this new journey,” he said.

In his remarks, professor Yunus said his interim government has started working on creating an environment where business can flourish, and entrepreneurs can thrive.

Any business needs stability, predictability and a corruption-free environment, so a key priority of his government following restoration of the law-and-order situation is to undertake deeper economic and financial reforms, he said.

A committee comprising experts is working on publishing a white paper that would establish the benchmark of the economy and encourage reforms by the end of December, the chief adviser said.

“Surely you are aware of why it is critical for us to undertake significant economic reforms as corruption and systemic irregularities eroded fiscal and monetary discipline,” he said.

“In around a month’s time, we could significantly reduce revenue shortfalls and make Taka stable. Bangladesh Bank has stopped printing money. Instead, we are using non-inflationary measures to tackle the deficit,” he added.

Turning to different development projects taken by the previous government, he said politically motivated unproductive development projects have been dropped.

“Depending on the stage of implementation, we are evaluating opportunities for cost savings in the remaining work and considering cancellation of non-viable projects,” Yunus said.

“We are charting reform paths to address the inherent weaknesses in the revenue sector. Our reform measures are already acknowledged. Over the past two days, World Bank president, USAID administrator and indeed President Biden acknowledged these and mentioned rolling out critical financial and non-financial support,” he added.  

The chief adviser said the government is resorting to the borrowing windows of institutional and bilateral lenders for quick injection of foreign currency.

“The currency regime has been made more market-driven by introducing crawling peg. The currency market is already showing signs of stability,” he said.

He said the central bank has doubled the deposit insurance, which will protect 90 per cent of the depositors in case of any bankruptcy, while the governor has already formed a task force on banking sector reform, with ADB’s support.

“None of our efforts will succeed if we can’t contain corruption. We have formed a commission to restructure our anti-corruption regime. Such efforts will not sustain unless we have an accountable political system, he added.

“We have, therefore, commenced reforming the electoral system, law enforcement agencies and judiciary and even police. Supporting these changes will require substantive changes in the country’s constitution. We have started working on that as well,” Dr. Yunus reiterated.

He pointed out that the government intends to create a more enabling business and investment environment where innovation can thrive, young professionals can turn into entrepreneurs, and businesses can operate efficiently.

“We are also working on customs digitalisation, strengthening IP, copyright and trademark regime, restructuring the capital market. We are open to suggestions from any of you to improve our business environment,” he said.

Noting that the United States has long been a key economic and development partner for Bangladesh, the chief adviser said the US is Bangladesh’s number one single-country export destination and the top source of our FDI but the trade basket is unusually narrow.

Atul Keshap, president of the US-Bangladesh Business Council, also spoke at the meeting.