Salman F Rahman: Bangladesh gives advice on labor rights their due importance

PM's Adviser for Private Industry and Investment Salman F Rahman details steps government has taken to develop labor sector

Bangladesh considers the recommendations of the United States of America, European Union and the International Labor Organization (ILO) on labor rights with due importance, said Prime Minister's Adviser for Private Industry and Investment Salman F Rahman.

Speaking at the virtual meeting of the US-Bangladesh labor working group on Thursday, Rahman detailed the steps taken by the current government in the labor sector. The Prime Minister's Adviser for Private Industry and Investment and US Under Secretary for Economic Growth, Energy, and the Environment Jose W Fernandez led the Bangladesh and US delegations respectively at the inaugural meeting of the working group.

US team leader Fernandez praised the steps taken to develop the labor sector in Bangladesh and called for the full implementation of the recommendations of the International Labor Organization, said the Ministry of Foreign Affairs.

He pledged to provide necessary cooperation and work together for the further development of the labor sector of Bangladesh. Bangladesh and the US discussed "collaboration and assistance" to Bangladesh as it takes further steps to implement the requirements developed by Bangladesh for its International Labor Organization roadmap and adhere to internationally recognized labor rights.

The objective of the meeting was to support Bangladeshi implementation of commitments to improve labor rights protections and to further economic cooperation between the US and Bangladesh, according to the office of the Spokesperson, US Department of State.

Secretary to the Ministry of Labor and Employment Md Ehsan-E-Elahi, Bangladesh Ambassador to the United States Muhammad Imran, BIDA Executive Chairman Lokman Hossain Miah, Executive Chairman of BEZA Shaikh Yusuf Harun, Executive Chairman of BEPZA Major General Abul Kalam Mohammad Ziaur Rahman, US Ambassador to Bangladesh Peter Haas and high-level representatives from relevant departments joined the meeting.

On the other hand, the US delegation presented its observations on the revision of labor laws and regulations and the registration of trade unions. The representative of the Ministry of Commerce urged the US side to seriously consider the issue of providing duty-free facilities to Bangladeshi products in the United States.

Beximco Ltd finalised €32.5 million expansion plan

Bangladeshi conglomerate Beximco Ltd has finalised a €32.5 million expansion plan for its Knit Fabric Facility ING Bank and Germany's ECA-Euler Hermes are funding the project which is expected to fosters the expansion and upgrading of its vertically integrated Textile Manufacturing Plant. The loan agreement was signed by Anil Kumar Maheshwari, COO, on behalf of Beximco Ltd and Lukas Strauch, director and B Ponsioen, MD on behalf of ING Bank.

This milestone that furthered Beximco's international presence, actualised the import of advanced German and other textile equipment through a German exporter; sourcing competitive equipment financing from ING Bank, with an insurance-backed cover from Germany's Export Credit Agency (ECA).

The deal has aggregated 38 equipment suppliers in a single export contract through their international strategic financial advisor – M/s Blend Financial Services Ltd. On successful financial closure of this Euler Hermes backed transaction, Beximco's Group Director & CEO, Syed Naved Husain said, "This was a very distinctive transaction for us, and it has opened up various avenues for Beximco for its future expansion and growth plans and for the Bangladeshi Textile Industry as a whole towards international financing propelling its global presence to new heights."

Referencing the conglomerate's milestone, Vaibhavi Thakkar, co-founder, and CEO of Blend Financial Services Ltd said, "As a Co-founder & CEO of Blend, we are ecstatic to partner with Beximco in their growth journey that is committed to provide high quality products without compromising its sustainability goals and promoting Bangladesh on an international platform." Blend is well positioned to provide be-spoke solutions by rallying through its network across all the stakeholders, basis the requirement of the company. In this landmark transaction, Blend has cemented its position as an "Environment Conscious Global Advisor" wherein we partner with our clientele by providing a solution that are aligned to its goals & strategy, she further said.

World Bank’s continued support

The World Bank’s new Vice President for South Asia Martin Raiser has reaffirmed the World Bank’s continued support for the country’s green, resilient and inclusive growth. “Bangladesh is a development success story in South Asia, and the World Bank is proud of being a partner in the country's development journey for the past 50 years,” said Raiser.
 
“We remain committed to helping Bangladesh achieve its growth aspirations. This will require timely policy actions to build strong public institutions, improve competitiveness, ensure climate resilience, and strengthen external and fiscal buffers,” he said.

During his tour, Raiser met Finance Minister AHM Mustafa Kamal and commended the government for the rapid post-COVID recovery. They discussed the global economic outlook and the implications for economic policies. “To continue its growth trajectory and enhance macroeconomic stability amid uncertainties and rising inflation, Bangladesh needs to stay the course on the reform priorities set out in its national plans,” he added. During the visit, the World Bank Vice President also met with the Prime Minister’s Private Industry and Investment Adviser Salman F. Rahman, Bangladesh Bank Governor Abdur Rouf Talukder and senior government officials, as well as representatives from the private sector, civil society, and development partners.

The World Bank Group is preparing its new Country Partnership Framework (CPF) for Bangladesh, which will guide its support to the country from 2023-2027.

'Diversify export basket, lower import to stabilise currency'

Prime Minister's Private Industry and Investment Adviser Salman F Rahman stressed the need for diversifying the export basket and lowering imports to stabilise the currency. He said the austerity measures taken by the government and the central bank to contain the rising trend of import since early this year are paying dividends as import costs have already shrunk to US$6 billion from over $8 billion a month. Mr Rahman was addressing a business luncheon meeting titled 'BMCCI PowerLunch' organised by Bangladesh-Malaysia Chamber of Commerce and Industry on recent macroeconomic issues at a city hotel, said a press release.

He said the import bill used to be $8 billion a month, which came down to $7 billion last month and $6 billion this month. "I believe our issues will be resolved pretty soon." Mr Rahman said the prime minister took proactive initiatives to protect the economy in pandemic times and she did the same when the dollar prices began skyrocketing. Also, Bangladesh Bank has taken initiatives to reduce imports at the right time, he added. "When this government came to power we had about 4,000 MW capacity in electricity, but now it rose to 22,000 MW which reveals our potent energy situation."

Speaking on the occasion, BMCCI President Syed Almas Kabir said 'BMCCI PowerLunch' aimed for macroeconomic analysis which broadly focus on current economic situation and inform the overall health of economy, a comprehensive view of the recent global financial crisis within a framework and the factor concerning monetary and fiscal policy for crisis management. Malaysian High Commissioner to Bangladesh Haznah Md Hashim and acting CEO of Robi Axiata Ltd Riyaaz Rasheed also spoke, among others.

Salman F Rahman urges private sector to curb power consumption

Prime Minister's Adviser for Private Industry and Investment Salman F Rahman called on the private sector to reduce power consumption in a bid to support the government in tackling the ongoing energy crunch. "Private sectors should save electricity wherever they can," he said while addressing a seminar at the capital's Matijheel organised by the Dhaka Chamber of Commerce and Industry (DCCI).

Speaking as the chief guest at the event, he also said the measure will only be temporary. The businessman's request to the private sector comes a few days after the government instructed energy consumption in government offices to be reduced by 25% among other austerity measures to navigate through the crisis.

Government and private sector representatives were also present in the seminar titled 'Export of Pharmaceutical sector upon LDC Graduation: Strategies & Way Forward'.

An abnormal rise in fuel oil price in the international market is hampering fuel oil-based power production in the country. To tackle the situation, the government has taken several measures including closing shops after 8.00pm and daily rotating blackouts with timetables for specific areas.

Diversification of exports

Prime Minister's Private Industry and Investment Adviser Salman F Rahman has emphasized on diversification of exports and reducing imports to stabilize the currency's depreciating trend.

He was speaking at a business luncheon meeting organized by Bangladesh-Malaysia Chamber of Commerce and Industry at a city hotel.

Salman said the austerity measures initiated by the government and the central bank to rein in a bullish trend of import since the beginning of the second half of last fiscal year are paying dividends as import costs have shrunk to $6 billion from over $8 billion a month. "It [imports] used to be $8 billion a month, which came down to $7 billion last month and $6 billion this month. I believe our issues will be resolved pretty soon," he said.

Salman said the prime minister took proactive initiatives to protect the economy in pandemic times and she did the same when the dollar prices began skyrocketing. "Alongside, Bangladesh Bank has taken initiatives to reduce imports at the right time." "When this government came to power, we had about 4 thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation. Though we now have a better situation to attract the FDI and I also admit there is room for development," he says. The policies that make RMG a successful enterprise have to be replicated in other sectors," he added.

New business strategy for Biman

Biman Bangladesh Airlines has drafted a new business strategy with special focus on cutting its ticket prices for domestic routes to maximize revenue and turn itself around in the domestic airways market.

The national flag carrier has also decided to improve passenger services on different routes as per its business policies to restore its strong position in the domestic aviation market. However, the move has irked private aviation operators, who claim the new move will push private airlines into competing on an unhealthy and uneven field, as Biman’s ticket prices would be reduced through using subsidies from the government.

In a recent letter to Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman, the Aviation Operators Association of Bangladesh (AOAB) said eight private airlines have invested thousands of crores in the industry, but many were forced to shut down their operations as they could not survive in the face of Biman's business strategy. Biman Bangladesh Airlines has drafted a new business strategy with a special focus on cutting its ticket price for domestic routes to maximize revenue and turn around its position in the domestic airways market. The national flag carrier has also decided to improve passenger services on different routes as per its business policies, to reinstate its strong position in the domestic aviation market.