IFC urged to increase financial support to Bangladesh
FE Report | Wednesday, 9 March 2011
FE Report
Leading local business leaders have urged the visiting International Finance Corporation (IFC) officials to increase their financial support to Bangladesh as the country has many potential fields. They said textiles, ready-made garments, jute, shoes and home textiles of the country have tremendous potential. The business leaders were speaking at a discussion meeting on 'Investment Opportunities in Bangladesh' at the conference room of the FBCCI (Federation of the Bangladesh Chambers of Commerce and Industry) in the city Tuesday. FBCCI president AK Azad moderated the meeting while South Asian Director of IFC Thomas Davonport, Beximco Deputy Chairman Salman F Rahman and Managing Director of Square Pharmaceuticals Tapan Chowdhury participated in the programme. However, local business leaders said the Washington-based IFC is not properly treating Bangladesh. Salman F Rahman said Bangladesh has many potential sectors including textiles. He said: "IFC is behaving with Bangladesh like a step-mother." Salman also said Bangladesh needs financial assistance to develop its economy. He said Bangladesh has proved wrong a study relating to textile and spinning mills conducted by the World Bank, saying: "The WB study said the textile industry will not survive in Bangladesh as it lacks comparative advantages." He said Bangladesh's textile sector is growing tremendously as many international businesses are shifting their orders towards the country, considering Bangladesh-made products competitive. Local businessmen said around two million people in the country require jobs every year, and IFC can facilitate investment for employment generation in the country. Thomas Davonport said IFC expects commercial returns from its investment. He said IFC has invested in many areas in India and Pakistan, considering that the two countries' economic advancement is better than that of Bangladesh. "We see significant opportunities in Bangladesh's infrastructure, power and telecom sectors. IFC can concentrate on those. We are keen to invest in agro-based industries in Bangladesh," said the IFC director. The IFC director said it has increased its manpower in Bangladesh and is launching an active advisory programme in the country. He said climate change, bio-gas and solar energy are among the key areas that need further IFC investment, said the IFC director. Davonport said it is keen to invest in the financial sector also. IFC invests more or less 900 million US dollars in India annually and US$600 million in Pakistan but only US$120 million in Bangladesh. Addressing the meeting, AK Azad said the 50 per cent of country's GDP's comes from the service sector, 30 per cent, from industries and 20 per cent, from the agriculture sector. Former BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) president Fazlul Hoque said the country's textile sector witnessed more then 40 per cent growth during the last seven months, despite various obstacles. He said IFC should provide funding support for setting up a special economic zone to ready made garment sector. FBCCI director MA Momen said IFC should come forward to invest in FBCCI's training and research cell. IFC's terms and conditions have to be customised to help small and medium enterprises (SME), said Abdur Razzaque, another FBCCI director. Reacting to local business leaders' comments, Thomas Davonport said, "We are less satisfied with our investment programmes in Bangladesh but IFC is considering introduction of an advisory programme only in Bangladesh."
Leading local business leaders have urged the visiting International Finance Corporation (IFC) officials to increase their financial support to Bangladesh as the country has many potential fields. They said textiles, ready-made garments, jute, shoes and home textiles of the country have tremendous potential. The business leaders were speaking at a discussion meeting on 'Investment Opportunities in Bangladesh' at the conference room of the FBCCI (Federation of the Bangladesh Chambers of Commerce and Industry) in the city Tuesday. FBCCI president AK Azad moderated the meeting while South Asian Director of IFC Thomas Davonport, Beximco Deputy Chairman Salman F Rahman and Managing Director of Square Pharmaceuticals Tapan Chowdhury participated in the programme. However, local business leaders said the Washington-based IFC is not properly treating Bangladesh. Salman F Rahman said Bangladesh has many potential sectors including textiles. He said: "IFC is behaving with Bangladesh like a step-mother." Salman also said Bangladesh needs financial assistance to develop its economy. He said Bangladesh has proved wrong a study relating to textile and spinning mills conducted by the World Bank, saying: "The WB study said the textile industry will not survive in Bangladesh as it lacks comparative advantages." He said Bangladesh's textile sector is growing tremendously as many international businesses are shifting their orders towards the country, considering Bangladesh-made products competitive. Local businessmen said around two million people in the country require jobs every year, and IFC can facilitate investment for employment generation in the country. Thomas Davonport said IFC expects commercial returns from its investment. He said IFC has invested in many areas in India and Pakistan, considering that the two countries' economic advancement is better than that of Bangladesh. "We see significant opportunities in Bangladesh's infrastructure, power and telecom sectors. IFC can concentrate on those. We are keen to invest in agro-based industries in Bangladesh," said the IFC director. The IFC director said it has increased its manpower in Bangladesh and is launching an active advisory programme in the country. He said climate change, bio-gas and solar energy are among the key areas that need further IFC investment, said the IFC director. Davonport said it is keen to invest in the financial sector also. IFC invests more or less 900 million US dollars in India annually and US$600 million in Pakistan but only US$120 million in Bangladesh. Addressing the meeting, AK Azad said the 50 per cent of country's GDP's comes from the service sector, 30 per cent, from industries and 20 per cent, from the agriculture sector. Former BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) president Fazlul Hoque said the country's textile sector witnessed more then 40 per cent growth during the last seven months, despite various obstacles. He said IFC should provide funding support for setting up a special economic zone to ready made garment sector. FBCCI director MA Momen said IFC should come forward to invest in FBCCI's training and research cell. IFC's terms and conditions have to be customised to help small and medium enterprises (SME), said Abdur Razzaque, another FBCCI director. Reacting to local business leaders' comments, Thomas Davonport said, "We are less satisfied with our investment programmes in Bangladesh but IFC is considering introduction of an advisory programme only in Bangladesh."