Decreasing investment
If we do have
an image crisis at the international level, we have to work on it. Shortages of power, gas and industrial land have to be addressed seriously
According to recent media reports both foreign and local investments in Bangladesh is gradually decreasing. This indeed is an unfortunate development for the nation. Huge foreign and international investments are essential components of growth for any economy. Obviously, this trend of declining interest to invest in this country is far from a positive development. Decreased investment will have an adverse effect on virtually every sector of the economy.
The employment scenario has really deteriorated. Even one and half years ago, the company owners were hunting for workers. But now almost every factory in the industrial zones, i.e. Dhaka, Savar, Ashulia, Narayanganj and Chittagong, hangs the no vacancy signboard up front. The number of unemployed persons will keep increasing because entrepreneurs are not allocating money for new investment.
Moreover, the demand for loans from the banks is also decreasing because of this lack of investment. Every bank has surplus money due to the lack of investment. The banks should lower the interest rates to attract investment.
The factors that are discouraging investment are many. The concerned authorities have to identify these and take the appropriate measures. It is hardly a secret that there exists corruption, red tapism and a lack of coordination among the different ministries. No matter whether it is micro or macro corruption, it needs to be checked in the interest of a healthy investment regime.
People are more or less familiar with the adverse environment of investment but no serious effort has yet been made to overcome impediments to investment. And if we do have an image crisis at the international level, we have to work on it. Shortages of power, gas and industrial land have to be addressed to attract both foreign and local investment. The political situation of the country is relatively calm at present. So it was naturally expected that investment would increase. Unfortunately that has not been the case.
Bangladesh economy has maintained a sustained growth of 6.2 percent during the past six years and now the country is approaching the seven percent growth club. The size of economy has doubled in the last six years. So there are reasons to be hopeful.
We believe that there are lots of opportunities for investment, particularly in energy, power, pharmaceuticals, telecommunications and infrastructure. There is a huge potential to be exploited, but the hindrances need to be addressed in earnest before Bangladesh can expect serious growth of foreign and local investment.
