Ensure energy, power supply to keep industrial production running: FBCCI

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, urged the government to ensure adequate supply of power and energy to industries through optimal utilization of financial allocations.

It also called for keeping the coal-based power plants in operation, and expanding use of renewable energy in order to provide an uninterrupted energy supply to factories.

The FBCCI president Md Jasim Uddin made this call in a press conference organized on the proposed budget for the fiscal year 2023-2024, at the conference hall of the federation's own premises in Motijheel on Saturday.

At the same time, he also called for the withdrawal of VAT on raw materials with an emphasis on renewable energy.

FBCCI President said, "Industrial production should be kept active to ensure revenue generation for the government. So, there is no alternative to an affordable and uninterrupted energy supply."

He urged that the government should be more strategic in allocating financial resources to the power and energy sector with special importance.

In the proposed budget, the government will borrow Tk1.55 lakh crore from internal sources to meet the budget deficit. Out of this, Tk1.32 lakh crore will be borrowed from the banking sector.

FBCCI President Jasim pointed out that this borrowing will create a barrier to the flow of credit to the private sector.

In such a situation, he requested the government to consider the cost of funds and obtain financing from foreign sources at the lowest possible interest rate, instead of the banking sector, reports UNB.