They’re undecided over future investment
The public announcement favouring peaceful programmes in place of violent blockades and general strikes by the BNP and its allies has not been able to restore confidence fully among the businesspeople. This scribe got the impression while talking to a number of businessmen during last couple of days. Economic activities have already started after the withdrawal of blockades but plans for mid-to-long term investment will suffer as political uncertainty still lingers in the minds of the businesspeople.
Kazi Akram Uddin Ahmed, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said economic activities, especially movement of goods, have started. “But, confidence for big investment is still lacking.”
He said industries simply bled over the last three months on the grounds of restive politics.
Mr Akram said our image abroad has been tarnished over the last three months. “I came to Dhaka yesterday (Thursday) after visiting Myanmar. Businessmen of Yangon have asked me about the latest political developments.”
Aameir Alihussain, a director at the country’s biggest rod-producing company BSRM said: “Our investment will go on but it will definitely be slow in nature.”
“We’re quite okay now. Everything is okay, but how long will it go, ” Mr Aameir asked.
The BNP and its allies will not call strikes and blockades at least for next six months, according to media reports.
Many entrepreneurs at the country’s largest export earning ready-made garment sector said overseas buyers are still confused whether the full-pledged economic activities in Bangladesh will go on unabated.
Anowar-ul-Alam Chowdhury Pervez, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE: “Buyers are proceeding with caution.”
“The foreign buyers are not placing any fresh orders. Rather they are observing the developments,” Mr Pervez said
The RMG that fetches four-fifths of the country’s total export earnings has a potential of a 40 per cent surge in their business this fiscal.
“Our buyers are regularly contacting us but we’re failing to convince them that we are quite okay now,” said Mr Pervez, managing director at the Evince Group, a RMG-to-textile group.
Top executives at the shipping firms said they are not formulating business strategies for the new year 2014 following uncertainty in politics.
“Every year we prepare our business plans, but this year we cannot do that on the grounds of uncertainty in politics,” said Captain AS Chowdhury, chief of Seacon, a feeder service provider. “How will we be assured that the bad situation will not emerge again,” Mr Chowdhury asked.
The country’s economic activities were affected adversely following recurrent shutdowns and blockade programmes since October last.
The movement of goods was stalled largely causing a rise in prices of finished products in the market.
The Bangladesh Bank, like the World Bank, has projected the GDP growth at 5.7 per cent for fiscal year 2014 far below the government’s target.
The country’s central bank also sees risks of a rise in inflation following blockades and shutdowns.
Courtesy of The Financial Express
