Atiur bins worries about investment situation

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FE Report
Bangladesh Bank (BB) Governor Dr. Atiur Rahman said Monday there were 'worries' about the country's investment situation, but hoped that the next budget would have some policies to give it a boost.
"There remains a worry over the investment situation. It is a cumulative effect … Hopefully, necessary policies would be there in the next budget for enhancing investment in the country," the Governor said.
Besides, the central bank will take all necessary steps to help facilitate the country's investment growth, Dr. Atiur said.
He was speaking at the inaugural session of a daylong workshop on 'Budget Reporting', organised by the Economic Reporters Forum (ERF) at the National Press Club in the city, with the ERF President Nazmul Ahsan in the chair.
"The BB will take quick decision on the investment-related projects so that the growth of foreign direct investment (FDI) is not hampered," said the BB Governor.
The central bank has just launched a Tk 2.0-billion re-financing fund for the promotion of solar and renewable energy in the country, he mentioned.
Dr Atiur further said he will pay a visit to the UK next month, where he would talk to Bangladeshi expatriates there so that they were encouraged to invest in Bangladesh's Export Processing Zone (EPZs).
He, emphasised on prioritising the Bangladeshi expatriates' investment in the country's EPZs.
Responding to a query, the BB governor said the country's GDP (gross domestic product) growth may register a fall in the next fiscal year due to the ongoing global recession.
But, he said, if the private credit and agriculture sector maintain a positive growth, then there would be a better growth prospect for the country's GDP, he observed.
Investments in the country's small and medium enterprise (SME) and agriculture sector are on the increase while the country's foreign remittance is expected to grow by more than 20 per cent this fiscal.
About the upcoming budget, the BB governor underlined the need for widening the government's tax net.
"There is an enormous scope to widen the government's tax net as the people's sources of income have increased," he said.
The Governor also suggested that steps should be taken on experimental basis for widening tax net in the areas, where the people's incomes are relatively high.
He also said the central bank has already taken steps including bringing about automation in all the systems including the credit information bureau (CIB) reports and inter-bank transactions.
The existing backlog of information availability from the CIB is expected to be removed by the next couple of month, he added.
The Governor also assured the banks of the central bank's support to their pro-poor and environmental-friendly investments.
He also reiterated that all the banks should have their own risk management units to help tackle their investment and other business-related risks.
The inaugural session was followed by five working sessions, largely participated by the ERF members.
Former adviser to the caretaker government Dr. Shoaib Ahmed Chowdhury, the Financial Express (FE) Editor and former ERF president Moazzem Hossain, Deputy Secretary of Finance Ministry Mohammed Muslim Chowdhury, Director General of the National Board of Revenue's (NBR) Central Intelligence Cell Aminur Rahman and former NBR member Mohammed Shahabuddin Ahmed were the resource persons of the working sessions.