No rise in local investment due to uncertainty, says Muhith

Finance minister Abul Maal Abdul Muhith said Thursday that due to uncertainty the volume of investment from internal sources did not increase despite rise in foreign investment in the country.

He, however, did not elaborate whether that 'uncertainty' is linked to political situation. He said that there was no political uncertainty in the country to hamper investment.  

For what reasons the local investors are waiting for investment, he said, "I don't know".   

Asked why the businessmen

in the country still feel a sense of uncertainty since there were no reports of post election violence/ turmoil, Mr Muhith said, "There is no uncertainty. There is a government in the country. Khaleda Zia's movement is just 'bogus'. The government is doing well".

He told the media after separate meetings with the International Finance Corporation (IFC) and Bangladesh Jute Goods Association (BJGA) at the finance ministry.     

Asked whether the money is being siphoned off from the country, he said that it is difficult to find out. "There were some loopholes. We are taking steps to end this", he added.

During the meeting, the IFC laid emphasis on private sector investment for railway and power sectors in the country.   

The BJGA has called upon the government to implement the Mandatory Jute Packaging Act 2010 for boosting the use of jute goods.  The BJGA has placed a charter of demands to the MoF that include providing incentives for boosting jute goods export, withdrawal of value added tax (VAT) on licence fee, removal of complexities for opening letters of credit (LCs), giving nine per cent interest rate similar to the garment export and awarding Commercially Important Person (CIP) certificates to the members of BJGA.

It also called upon the government to take initiative for boosting jute goods export.   The finance minister assured that the government would consider their demands sincerely.

talhabinhabib@yahoo.com