The industrial sector is uncertain in the increase of gas prices by 5 percent. Traders said small factories, especially at high risk. They say that it is a discriminatory decision to increase the price of gas for the new factory between the high interest rate, high inflation and political uncertainty. The new entrepreneurs will be in unequal competition. New investment will be discouraged.
Bangladesh Energy Regulatory Commission (BERC) has increased the price of gas for the new industry last Sunday. Besides, the old factories will also have to pay the extra price of gas for the additional use of the approved load.
When the government is taking various steps to attract investment in the country, the decision to increase the price of gas for new industries or new investors is a reversible behavior, said leaders of the Foreign Investors Chamber of Commerce and Industry (FICI). They said that such decisions will ruin the confidence of potential investors, risk future investment and destroy the achievement through positive steps like the Investment Summit.
Ficky President Javed Akhtar said, “This dual-principle does not just violate the policy of fair competition; Rather, the competitive market uncertainly creating equal opportunities for everyone. The model of different prices that the BERC announced is unprecedented. We demand the government to reconsider the decision by considering the demand for fuel and the proper management.
The textile sector of the country is fighting various problems including dollar crisis, bank interest rates up to 5 percent, abnormal cash incentive against exports and depreciation of money. The Bangladesh Textile Mills Association (BTMA) fears that the gas price rise crisis will increase.
BTMA president Shawkat Aziz Russell said the increase in gas prices will be more difficult for the textile sector that has been in different problems for a long time. As a result of this government's decision, one factory will be closed after another.
The Dhaka Chamber of Commerce and Industry (DCCI), another business organization of businessmen, believes that it is undoubtedly a major challenge for the industrial sector of Bangladesh without confirming the supply of continuous gas in the country's industrial sector. Leaders of the organization say the export -oriented industry, especially gas -so -based RMG, ceramic and steel production will be the most affected. Will weaken their competitive position. Apart from this, the cost of business will increase as the cost of setting up a new industry will also decrease.
Dhaka Chamber President Taskin Ahmed said the decision would result in high damage to small and medium industries, as they were not able to pay extra costs. Timely policies and support are needed to ensure sustainable growth in the industrial sector. Besides, a long -term agreement is needed with exporting countries to keep the fuel prices fixed.
SK Masudul Alam, founding chairman of the Bangladesh Steel Manufacturer Association, said, “At present, the utility sector costs Tk. 3,000 per tonne of steel, which is the majority of which is gas. Now the price has been increased by 5 percent. Another 5 percent VAT will be associated with it. In all, we cost 5 percent for gas. '
Masudul Alam also said that in each factory there is a demand for more gas than the government's fixed load. So the impact of this gas rise will be on all new factories.
Private investment rate in proportion to GPD (gross domestic product) in Bangladesh was lower than the need. The concern is that the rate has been decreasing for years. In the fiscal year 2021-22, the rate of private investment in the proportion of GDP was 25.22 percent, which has dropped to 26.5 percent in the fiscal year 2021-22.
Data from the Ministry of Finance says that in the first six months of the current fiscal year (2021-27), foreign investment of US $ 20 million has arrived in the first six months, which was $ 10 million in the same period of the last fiscal year.
Economists say the rate of new employment creation decreases if investment does not increase enough. It affects the income of the people, increases the number of unemployed.
