The Centre for Policy Dialogue has raised questions over the stated GDP growth figures on the basis of the ailing banking system, the comatose share market, declining expatriate labour travel and overall corruption. This in spite of the world rating agencies dubbing Bangladesh as a growing economy faster than even India. And yet despite our impressive statistics our diplomacy has failed to attract investment such as that from Saudi Arabia.
On the contrary, that country has stated intent to invest $ 100 billion in India mostly in the energy sector. The Saudis have also assured India of making up any shortages in fuel that may arise, should India cave in to US pressure to stop imports from Iran. Currently they do so under a caveat inserted in the US sanctions based on existing agreements. India doesn't import anywhere near what it imports from the United States but has still come under the now infamous 'America First' sanctions that Mr. Trump has imposed on her for all the bonhomie and frequent visits by the Indian Prime Minister Narendra Modi. All of this coming with India in an economic slump with growth at its lowest in five years and unemployment at an all time high.
In all of her visits to foreign countries from wooing expatriates in Europe to the Azerbaijanis, Prime Minister Sheikh Hasina has invited investments. It is a common feature of President Abdul Hamid when receiving credentials from newly appointed ambassadors to request foreign investment in the country. The rest has to be left to the diplomats, relevant foreign missions and ministries to implement and follow through. During her official visit to the United Kingdom recently, the Prime Minister addressed a bunch of our diplomats in Europe emphasising the same message. It is a mystery why with extremely friendly investment climate investors aren't being able to be attracted.
While businessmen are being exhorted to find new export markets, few are taking up the invitation of the special economic zones' offers. On the contrary, the departure of Glaxo Smith Kline and Sanofi's pharmaceutical wings are sending the wrong messages. Kohinoor Group has
announced a small expansion of their business but the bigger business houses seem reluctant to invest even in the tax holiday environment of semi-urban areas.
The Saudis have also come to the aid of a cash-strapped Pakistan but given this remains the largest destination of labour from Bangladesh one would have expected a favourable response from them. On the contrary, labourers in their hordes are being sent back and women workers are returning either in coffins or with gruesome tales of neglect. Energy continues to be a major focus area for Bangladesh.
Power generation has improved significantly with the introduction of quick rental power plants but these are proving to be too expensive for many. The country's coal resources are being planned to be out to use even though the world is turning its back on the mineral. Saudi Arabia's drive to reduce its dependence on oil has been furthered by the decision to enlist on stock exchanges shares of the state-owned Aramco. It provides an opportunity of reverse investment that Bangladesh can probably afford, given the robust foreign exchange reserves that continues to grow. Not many countries are expanding industries these days focusing more on becoming lean and mean. With competitors such as Vietnam and Cambodia emerging as more favoured investment destinations Bangladesh will have to change tack and provide grounds for the investment environment that today's world is demanding.
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