7pc growth achievable: ICAB

The 7 percent GDP growth that the government has targeted for next fiscal year is achievable provided there is good governance and an investment-friendly environment, said the Institute of Chartered Accountants of Bangladesh.

The growth target is not impossible to achieve as many macroeconomic fundamentals such as export, remittance and industrial output are on the rise, said Masih Malik Chowdhury, president of ICAB.

But the government needs to keep an investment-friendly climate and check corruption by ensuring good governance, he said at a post-budget discussion organised by the institute at Cirdap auditorium yesterday.

Some 60,000 audit reports are submitted to the Registrar of Joint Stock Companies and Firms (RJSCF) every year, but the participating members of ICAB account for about 13,500 of them, he said.

Chowdhury subsequently called for initiatives to get to the bottom of the matter.

“It should be known how the remaining audit reports are submitted to the RJSCF,” he said, while suggesting the National Board of Revenue team up with them to investigate the matter.

“It will be the primary step to increase revenue collection,” the ICAB president added.

AF Nesaruddin, vice-president of ICAB, said foreign direct investment is not increasing as the tax rate is not attractive to the investors. He urged the government to cut corporate tax for non-listed companies.

Humayun Kabir, a former president of ICAB, said it is important to establish transparency and accountability in every sector -- as trade is increasingly becoming integrated with the globe -- to attract foreign investment.

Syful Islam, another former president, said participation from all sectors is the key to implementing the budget properly, as the government alone cannot do it.

He said the budget has given proper attention to every sector.

Abbas Uddin Khan, another former president, said the quality of development spending has to be raised. Otherwise, there might be a backlog of projects as in previous years. 

Shahadat Hossain, a councillor of ICAB, said the government's bank borrowing target might not have any impact on private sector credit growth.