The apex trade body in its proposals to the government also recommended replenishing the fund annually with 10 percent higher amount until adequate industrial capital and equity can be raised by initial public offerings and bonds.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on behalf of the business community of the country released a set of proposals yesterday to bring in changes in areas like politics, parliament and government, judiciary and industrialisation.

The FBCCI proposals called for cutting interest rate to facilitate new investments. "The interest rate on industrial loans should never be more than 2 percent above the central bank rate," it said.

The apex trade body suggested bringing down the interest rate to 8-10 percent for the SME (small and medium enterprise) sector. In India and Nepal, the rate on general loan is not more than 8-10 percent, it said.

The FBCCI made a 17-point recommendation to boost the industrialisation in Bangladesh and assist industries to survive, thrive and expand as fast as the economy demands.

The apex trade body in the proposals also observed that the nation's industrial infrastructure should be redesigned so that it can focus on a few predetermined industrial sectors which in turn should be fed by related supporting industries.

The money laundering act, company laws, money loan court act, port authority act, banking companies act and telecommunications act should be enforced properly, it suggested.

The industrial policy should be formulated as an enforceable instrument while foreign investment laws should be amended to ensure a minimum 15 to 20 percent local partnership excepting in the export processing zones, the FBCCI recommended.

Besides, bankruptcy laws should be amended to allow debt restructuring and shielding of the company's finances against disturbing pressures of creditors while restructuring takes place.