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Industrial policy-2010 being placed in cabinet meeting Monday

Sohel Rahman Staff correspondent |
Update: 2010-09-03 23:54:48
Industrial policy-2010 being placed in cabinet meeting Monday

DHAKA: With the focus on privatization of the losing public concerns, at last the ‘Industrial Policy-2010’ is going to be placed in the cabinet meeting Monday for approval.

Earlier on August 3, the cabinet committee on economic affairs finalized the draft of the policy in a meeting with Finance Minister Abul Mal Abdul Muhith in the chair.

The preliminary draft of the policy had mentioned that on the basis of feasibility, the loss-incurring state-owned enterprises would be transformed into profitable concerns.

It also stated that reemployment of the existing manpower would be ensured.

But, in the final draft, the initiative for turning profitable the losing SOEs has been cut down though it retains the provision for alternative employment.    

Besides, the final draft mentions the need for formulating separate law for the sick industries, which are a pain in the neck of the economic sector.

According to the draft, the government would not give any more assistance for the industries which have been lying sick for over 15 years.

The first draft had recommended encouraging the banking sector to take ‘package programme’ aiming to prevent bankruptcy and rehabilitate the bankrupt businesses.

But now there has been a slight policy shift towards encouraging `advanced programme` in the final draft.

The initial draft had suggested restricting business syndication to protect consumer’s interest, but the final draft cut out the term ‘syndication’.

It says comprehensive steps have been taken to protect consumer interests with the advice of the ministries concerned and others.

Besides, giving priorities to local industries, special stimulus package and duty waiver are provided in the final policy draft.

Similarly, export-oriented trade, initiating trade under Public-Private Partnership (PPP), encouraging new entrepreneurs into establishing agriculture and labour-intensive industries would get priority in the final draft of the policy.

The draft of the policy was published on April last year. But the government ordered having inter-ministry recommendations against complaint about not involving commerce and other ministries in drafting the policy.

After having the recommendation the draft was sent to the committee for economic affairs.

A committee headed by the chairman of the Board of Investment was formed for checking and modifying the draft on February 18 this year. The draft was referred from the higher meetings several times for modification.

Finally, Finance Minister AMA Muhith dismissed as ‘personal opinion’ of Industries Minister Dilip Barua a controversy over the privatization issue and finalized the draft.

BDST: 1647 HRS, SEPTEMBER 04, 2010

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