Businessmen in Dhaka urged on Wednesday the government to prepare investment-friendly development plan for the country to attract more local and foreign investments for graduating Bangladesh into a middle-income country by 2021.
They have suggested giving priority to development of infrastructure in the Seventh Five-Year Plan (Seventh FYP), lowering of bank interest rate, diversification of export, removal of energy shortage and development of skilled manpower.
Presided over by Planning Minister AHM Mustafa Kamal, the businessmen gave their suggestions at a consultation meeting at the NEC conference room aimed at giving inputs to formulation of the Seventh FYP to be implemented between the financial year (FY) 2015-16 and FY2019-20.
The government aims to raise Bangladesh's economic growth to 10 per cent and cut poverty below 15 per cent by 2021.
The General Economics Division (GED) of the Planning Commission has started work on the Seventh FYP a couple of months ago. Before giving the final shape to the 7th FYP, the government will take opinions from different professional groups including economists, academics, entrepreneurs and journalists.
Director of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Obaidur Rahman in the meeting said: "Higher interest rate is the key obstacle to investment here. There is no country in the world with 7.0 per cent spread in the banks."
If the government wants to graduate the country to a middle- income one, it must need to reduce the interest rate to a single digit, cutting the spread to a tolerable level.
Echoing the same voice, Chairman of the Bangladesh Finished Leather, Leather-goods and Footwear Exporters Association M Abu Taher said the government should take action to reduce the bank interest rate to facilitate more investments.
He said there is no alternative to developing infrastructure for boosting private investment, which is the driving force for quality economic growth.
To woo investment, the country must remove infrastructure bottlenecks, he said.
Stressing the need for diversification of exportable products, he said the leather industry that has bright prospect in the US$220 billion global market is the alternative to RMG industry. He sought the government's support to help flourish the leather industry to earn more foreign exchange.
Planning Minister AHM Mustafa Kamal said most of the commercial banks are overburdened with non-performing loans which force them to charge higher interest rates.
"Some of the businessmen in the country borrow from the banks and do not repay in time. So, the banks are affected. Then they charge higher rates from the clients to make profit overcoming the high operating costs," he said.
He urged the businessmen to make more investments in the country. "You can also go for joint-venture investment here with foreign companies. The government would provide lands and other facilities if you can bring good investment proposals," Mr Kamal said.
A vice president of the Bangladesh Cargo Vessel Owners Association sought the government's quick steps for setting up a deep seaport.
"The Chittagong port is overburdened. If Bangladesh does not set up a deep seaport, its foreign trade will be affected resulting in adverse impact on higher economic growth," he said.
Assistant General Secretary of the Bangladesh Association of Software and Information Services (BASIS) Mustafizur Rahman Sohel said the government should frame the 7th FYP laying emphasis on human resources development in the IT sector.
He said they have the capacity to boost software export where more skilled manpower is essential.
GED Member Professor Shamsul Alam, members of the Planning Commission and high officials of the Commission were also present at the consultation meeting in Dhaka.
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