If the problem could not be resolved soon, Bangladesh’s foreign trade would be in serious trouble.
The country’s ongoing forex reserve crisis has put the shipping sector in debt, as entrepreneurs could not remit money to the mainline operators (MLOs), they said during a dialogue on Sunday.
If the problem could not be resolved soon, Bangladesh’s foreign trade would be in serious trouble, businesses also said.
So far, the local shipping agents owe $150 million to the foreign shipping lines, Iqbal Ali Shimul, vice-chairman of the Bangladesh Shipping Agents’ Association (BSAA), told the dialogue.
“The banks are showing reluctance in opening L/Cs due to the dollar crisis. We need to remit money to the MLOs, but have failed to do it for some days.”
If the situation cannot be handled soon, the supply chain would be seriously disrupted, he warned.
BSAA Chairman Syed Mohammmad Arif said for the last two years, the entrepreneurs involved in shipping business, failed to obtain licences.
Even if a shipping licence-holder dies, then his/her wards need to sit for examination to run businesses with their parent’s licence.
Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, said although the shipping sector is the lifeline of Bangladesh’s economy, the regulatory authorities failed to provide due support to the sector’s entrepreneurs.
Addressing the discussion as the chief guest, State Minister for Shipping Khalid Mahmud Chowdhury said Bangladesh’s economy is still in a good shape, and that is why foreigners are showing interest in investing here.
He mentioned that the country’s shipping sector is gradually expanding, as the number of ships under the local shipping fleets increased to 90 from 61.
He assured that the regulatory authorities would provide due support to the entrepreneurs, and mentioned that the country’s port capacity would be enhanced with efficient management.
Chittagong Port Authority (CPA) Chairman Rear Admiral Mohammad Shahjahan said the Chittagong Port can be turned into a regional shipping hub through trans-shipment.
“We are completely ready to provide trans-shipment facilities to the region,” he said, emphasizing joint efforts in removing bottlenecks of the shipping sector.
BKMEA Executive President Mohammad Hatem said businessmen have to pay up to 2% commission for transacting remittance, which should be reduced to a logical level.
“We want to raise our exports to $100 billion by 2030. But to achieve that target we need to remove the customs-related barriers and enhance the port’s capability,” he noted.
Mahfuzul Huq Shah, former director of the CCCI, said the shipping sector is still being regulated by 100-year-old regulations, which need to be updated.
Nurul Kaium Khan, president of the Bangladesh Inland Container Depot Association, said the reserve crisis is overplayed, because those who need to clarify the issue have kept their mouths shut.
