FE REPORT
Optimal economic performance, policy continuity, and access to resources are essential for improving the investment climate in Bangladesh.
Additionally, better coordination and consultation among stakeholders, along with efforts to combat corruption, are crucial.
Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA), highlighted these issues during a webinar titled 'State of Investment Climate' hosted by BIDA on Wednesday.
Mr Chowdhury discussed various aspects of the current economic situation and investment climate in Bangladesh at the virtual event attended by various stakeholders, including non-resident Bangladeshis (NRBs).
Lutfey Siddiqi, a special envoy on international affairs to Chief Adviser Prof Muhammad Yunus, attended the event as a guest of honour.
In his presentation, Mr Chowdhury noted that foreign direct investment (FDI) in Bangladesh remained much lower than in other countries.
In 2023, the FDI in Bangladesh was around $3.0 billion, accounting for only 0.7 per cent of the country's GDP, he said.
According to the presentation, the major sectors attracting foreign direct investment (FDI) include textiles, gas and petroleum, banking, and power.
Highlighting key issues such as corruption that deter the investment climate, Mr. Chowdhury said, "We are looking at a national single window, which is going live in the first quarter of 2025,"
This initiative aims to eliminate the scope for human interaction and the associated rent-seeking behaviour, he added. In response to questions, Lutfey Siddiqi identified imbalances in international trade and budgetary allocations as two major challenges facing the country.
"It is a reality that we are dealing with twin deficits. We have external imbalance as well as budgetary imbalances," he said, adding that these issues are likely to persist for some time. Printing money is not a viable solution in this regard, he said.
The only way forward is to increase investments -- both local and foreign, he added.
Mr. Siddiqi also underscored the importance of structural reforms, the establishment of responsible businesses, an indigenous model of development, and the role of non-resident Bangladeshis (NRBs) in addressing these challenges.
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