‘Trade with India will not be affected in long term’ Says Bangladesh

Dhaka: Trade with India will not be affected in the long term due to unrest, despite the decline in trade between the two neighbours, Bangladesh’s top business body chief said late on Monday.

“After the government change (in Bangladesh), we find some downflow trade between the two countries. But I believe this is not for the long term,” Md. Hafizur Rahman, Administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said exclusively to ANI.

“India is the second largest import source of raw materials and other goods for Bangladesh. Bangladesh imports from India around USD 14 billion annually. Major part of import is raw materials. When export declines, import of raw materials also declines”, he added.

Rahman said that Bangladesh would overcome the difficult situation soon.

“Recently, Bangladesh faced such a situation where we saw some decline in the import of raw materials. On the other hand, the previous year, we had imported around USD 83 billion from the global market. Because of the shortage of foreign currency reserves, high exchange rate, and big change in the exchange rate from 85 taka per dollar. Last year, Bangladesh’s imports declined around 20 per cent. It is because of the foreign currency and reserve crisis. I believe within short times, we will overcome,” Rahman, who is also a member of the Bangladesh Competition Commission, said.

“It is a revolutionary change. It has effects for the time being. Now it is calm and quiet. We have the trade relations. Bangladesh’s government is not restricting anything. For our industry, for the people, we want trading relations (with India) in take place all the time,” he added.

Rehman said that despite the political uncertainity Bangladesh’s trade relations remain healthy.

“It is not all about the political uncertainty. As I mentioned that overall imports declined 20 per cent in relation to the previous financial year. When our total import declined 20 per cent, 5 per cent declined with India is a good sign, not a bad sign. It’s not 20 per cent declined, it’s only 5 per cent that means trade relations is very good even in the adverse situation that I mentioned about the exchange rate and foreign currency reserves. Trade relations are very healthy”, Rahman said.

The Bangladesh interim government appointed Md. Hafizur Rahman as the administrator of FBCCI, dissolving the elected executive committee after the August changeover. The new government considered the committee that consisted of the business community was biased to the previous Sheikh Hasina government.

Md. Hafizur Rahman, an additional secretary of government, will conduct an election for the executive committee and oversee the activities of the business organisation for the interim period before handing over the responsibilities to the new committee. (IANS)

Also Read: Bangladesh interim government bans student wing of ex-PM Sheikh Hasina’s party

Also Watch: