In need of continued policy supports for investment promotion
Saturday, 27 December 2008
Muntazir Zaidi
THE Board of Investments (BOI), according to earlier reports in the media, received 1,217 project proposals, including around 953 for textile and apparel industries, in the first 10 months of this calendar year. Of such proposals, 643 are for textiles, 177, chemicals and 133, service sectors.
According to industry people, most of the industrial units in the chemical and services category are for backward and forward linkages of the apparel sector.
The proposals for 264 units are for engineering, agro-packaging, food, glass and other industrial categories.
The proposals, particularly those relating to the broad textile sector, reflect a growing demand among international buyers to outsource apparels from Bangladesh, according to the Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
But more registration with the BoI does not mean that all the proposals would be implemented. But the trend shows the strength and competitiveness of Bangladesh in the apparel sector.
For the industrial development of the country, the fast growing backward linkage industries is a positive indicator, according to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president. But, as also noted in media reports, the persistent energy and power crisis might impede the pace of the new industrial investment.
The BoI statistics also points to how the country is becoming more dependent on the textile and apparel sector alone.
Apparently, it seems that formation of Better Business Forum and Regulatory Reforms Commission as well as adoption of some pro-active policy measures for trade facilitation at customs and port have led to a greater confidence among the country's businesses in the prevailing investment climate. In this context, a policy shift to promote 'less gas-consuming' industries, to encourage investment in infrastructure and focus on services sector, particularly information technology to overcome gas and electricity crisis and other infrastructural bottlenecks in setting up industries, will be needed to help sustain this confidence.
Now the question arises whether the would-be elected government would pursue and continue the policies aiming at encouraging and promoting new investment activities in the priority sectors of the national economy. The election manifestos of major political parties, now contending for power through the election, do suggest that they are aware of the imperatives. But the taste of the pudding lies in its eating. The people would like to see what the next elected government does sooner than later to redeem the electoral pledges.
THE Board of Investments (BOI), according to earlier reports in the media, received 1,217 project proposals, including around 953 for textile and apparel industries, in the first 10 months of this calendar year. Of such proposals, 643 are for textiles, 177, chemicals and 133, service sectors.
According to industry people, most of the industrial units in the chemical and services category are for backward and forward linkages of the apparel sector.
The proposals for 264 units are for engineering, agro-packaging, food, glass and other industrial categories.
The proposals, particularly those relating to the broad textile sector, reflect a growing demand among international buyers to outsource apparels from Bangladesh, according to the Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
But more registration with the BoI does not mean that all the proposals would be implemented. But the trend shows the strength and competitiveness of Bangladesh in the apparel sector.
For the industrial development of the country, the fast growing backward linkage industries is a positive indicator, according to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president. But, as also noted in media reports, the persistent energy and power crisis might impede the pace of the new industrial investment.
The BoI statistics also points to how the country is becoming more dependent on the textile and apparel sector alone.
Apparently, it seems that formation of Better Business Forum and Regulatory Reforms Commission as well as adoption of some pro-active policy measures for trade facilitation at customs and port have led to a greater confidence among the country's businesses in the prevailing investment climate. In this context, a policy shift to promote 'less gas-consuming' industries, to encourage investment in infrastructure and focus on services sector, particularly information technology to overcome gas and electricity crisis and other infrastructural bottlenecks in setting up industries, will be needed to help sustain this confidence.
Now the question arises whether the would-be elected government would pursue and continue the policies aiming at encouraging and promoting new investment activities in the priority sectors of the national economy. The election manifestos of major political parties, now contending for power through the election, do suggest that they are aware of the imperatives. But the taste of the pudding lies in its eating. The people would like to see what the next elected government does sooner than later to redeem the electoral pledges.