The price situation remained under pressure throughout the year and deteriorated of late, the report observed, saying in some cases prices of a few essentials rose because of high prices in international market. The government efforts to curb price spiral saw little success due to short-term measures, the report said.

Presenting the report of the Annual Council of ICC Bangladesh, ICC-B President Mahbubur Rahman underlined the need for accelerating the pace of administrative and structural reforms including downsizing of the government for better economic performance and improved investment climate.

The Annual Council of ICC Bangladesh for the year 2003 was held at the conference hall of the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka yesterday.

The ICC-B president said the overall socio-economic environment did not improve in 2003 because of the continuous slide in law and order despite actions by the government.

Mentioning killing and abduction of a good number of businessmen in Dhaka, Chittagong and other parts of the country, he said a sense of insecurity had been prevailing among the members of the business community.

The ICC-B chief mentioned that the privatisation programme under successive governments could not get required momentum on political consideration and the situation is unlikely to improve much further before the next general election.

Rahman said the free-float of taka was the most significant economic event in 2003. Belying all speculations, taka has been stable after the free-float made effective in June last, he said.

The report noted with concern that political environment, which had a direct bearing on the business climate, continued to be confrontational in later part of 2003 with the main opposition party enforcing a number of general strikes.

The present parliament, the report said, like the previous ones, disappointed the people by its performance. "The main opposition party continued its boycott of parliament. It is still abstaining from parliament session and took to the street to voice their grievances instead of the floor of the House," it said.

The report, however, maintained that the overall macro-economic situation in Bangladesh was stable in 2003 with GDP registering a healthy growth.

The report said lack of improvement in governance and systemic corruption continued to be major deterrents to a private sector-led growth in Bangladesh.

On the central bank's effort to improve management efficiency of private commercial banks (PCBs), the report said, "Re-organisation of board of PCBs did not show any significant improvement in operation and management, rather in some cases, it apparently functions under 'remote-control."

Among others, ICCB vice-presidents Latifur Rahman and Samson H Chowdhury, Foreign Investors' Chamber of Commerce and Industry President Mahbub Jamil, former deputy prime minister Jamal Uddin Ahmad, Managing Director of United Insurance Syed Aziz Ahmed, Chairman of National Housing M Haider Chowdhury and MCCI Secretary-General CK Hyder took part in the discussion.

The council was attended by representatives from member organisations of ICC-B including MCCI President Kutubuddin Ahmed, Dhaka Chamber of Commerce and Industry President Fazle RM Hasan, Insurance Association Chairman Nasir A Choudhury, Chittagong Chamber of Commerce and Industry President Amir Humayun Mahmud Chowdhury and First Vice-President of Federation of Bangladesh Chambers of Commerce and Industry Kamaluddin Ahmed. Chief executives of banks, insurance companies, multinationals and industrial houses also attended the council.