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Speakers at a webinar today called upon the government for taking a good number of policy measures including signing of Free Trade Agreement (FTA) and Preferential Trade Agreement (PTA) with potential countries to ensure sustainable development of the plastic sector in the post-LDC era.
They also demanded of the government to simplify duty structure on importing plastic raw materials, modernization of respective policies, encouraging uses of bio-plastic, increasing negotiation skills, protecting domestic market, product diversification, ensuring development of plastic waste management system.
Besides, they also advocated for ensuring technological advancement, enhancing accredited world class testing lab facilities, innovative product designing, ensuring business friendly environment to attract FDI, central bonded warehouse facility, tax incentives, coordination among government agencies, easy access to finance and investment on research and development to further flourish this plastic sector.
Speakers put emphasis on these issues at a webinar on “Sustainable export growth in post-LDC world: strategies for the plastic sector” organised by Dhaka Chamber of Commerce and Industry (DCCI) today, said a press release here.
Principal Secretary to the Prime Minister Dr. Ahmad Kaikaus joined the webinar as the chief guest with DCCI President Rizwan Rahman in the chair. FBCCI President Md. Jashim Uddin joined the event as special guest.
Dr. Ahmad Kaikaus said the existing connection between the public and private sector is very strong than ever that leads Bangladesh to a new height. In order to identify various prospects and challenges in the plastic sector, he suggested forming a national taskforce combining public and private sector participation.
He also called upon for a better plastic waste management solution. “We should have our own certification agency and for establishing that PPP model can be a best option. For certification, we are now spending a lot of money. In a modern world, we cannot avoid using plastics rather we should go for hundred percent recycling to minimize pollution.”
The Principal Secretary also assured the private sector that the government is very much committed to reform any policy at any time that hinders trade and investment.
FBCCI President said that in the plastic sector there are many challenges, but the entrepreneurs of this sector are very resilient to overcome these.
“We need world class accredited testing lab, proper policy support with intellectual property rights (IPR) policy and innovation in design and development,” he added.
Jashim also called upon the government to declare this plastic sector as a green industry. In order to facilitate 100 percent recycling, he suggested for an extensive collection mechanism/system under the guidance of city corporations.
He also demanded for an equal corporate tax rate for all exporters. At present the rate is 30 percent for the plastic industry. Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), presented the keynote paper.
He highlighted that the total export of plastic sector including direct and deemed was more than US$1 billion in FY2020-21. The domestic market size of this sector is of US$3 billion. The sector itself creates 1.5 million employments.
Shamim said plastic is the eighth largest export earning sector (including direct and deemed export) in Bangladesh which has been expanding 4.5 percent per annum.
He recommended for reforming import-export policies highlighting the needs of LDC graduation side by side stressed on the importance of attracting foreign investors as they are very keen to come, patent registration and IPR ecosystem, innovative product design, skills development and investment for research and development.
He also requested to withdraw five percent supplementary duty on plastic sector. Dr. Md. Shahidul Islam, member (Customs) of NBR, emphasized on re-using single-used plastic items to reduce pollution and costing. He also stressed on more value addition, diversification, quality assurance of products and establishing own innovative design houses.
DCCI President in his opening remarks said plastic sector witnessed a rapid commercialization and became an important export item of Bangladesh.
He said export of plastic goods contributes 0.33 percent to the GDP. Around 5,110 companies are operational in plastic sector and 98 percent of them are SMEs.
Rizwan said since many preferences will not exist in the post-LDC era, FTA and PTAs can be signed with the potential countries. On the other hand, an enabling tariff regime is needed to support raw material import in the post-LDC time.
Ahsan Khan Chowdhury, CEO of PRAN RFL Group and Dr. Ijaz Hossain, retired professor of chemical engineering in BUET, also spoke, among others, at the webinar.
(BSS)
