Business hazards need to be banished to lure investment

Traders, economists blame gas, power shortages, law and order slide for glum scene
Economists and businessmen said yesterday that disruptive gas and power supplies, lack of logistic and infrastructure supports as well as extortion are mainly discouraging the private sector from investing in the country.
Talking to The Independent, economists Kazi Kholiquzzaman and Abu Ahmed and businessman Mir Nasir echoing the same views observed that if the entrepreneurs are not assured of adequate gas and power supplies, logistic and infrastructure support and improved law and order, they would not feel encouraged to invest in the private sector.
At the moment, Petrobangla supplies 1,850 mmcfd to 1900 mmcfd of gas against a demand of more than 2,000 mmcfd to 2,100 mmcfd. On the other hand, Power Development Board (PDB) can supply 3,700 megawatt electricity to 4,200 megawatt against the present official demand of 5,000 megawatt electricity. However, the unofficial demand reaches 5,500 megawatt to 6,000 megawatt at peak hours. As a result, the country’s industrial sectors have long been facing serious setbacks.   
However, Petrobangla sources claimed that the demand hits 2,000 mmcfd to 2,100 mmcfd for only a few hours a day only. On average, the daily demand hovers around 1,650 mmcfd, they added.
On the other hand, PDB officials said due to shortage of gas many gas-fired power plants remain inoperative. If a smooth supply of gas can be ensured to PDB’s power plants, some 500 megawatt to 550 megawatt power can be generated.
Businessman Mir Nasir said the two major energy sources gas and power are urgently needed to expand trade and business.
“But we are not getting gas and power as per our required demand. How and in what way will we expand our business? As we are failing to ensure gas and electricity supplies to our industries, their output has been hampered seriously. And at one stage, many industries and factories have failed to run their operation,” said the former president of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI).
Apart from these, the businessmen are not being encouraged to invest due to deterioration of law and order, he observed.
“The government will have to ensure law and order to run our business. Recently, the garments sector is again becoming restive. If unrest is created in the garments sector again, it would not possible for the industry owners to continue their business,” he pointed out.
He also said adequate infrastructure facilities and an investment-friendly environment will have to be ensured.
“We don’t have sufficient infrastructure and logistic support from the government side,” Mir Nasir said.
Replying to a query about expansion of his own business, the entrepreneur said he suspended expanding his business due to the reasons mentioned.
“Not only me, but many other entrepreneurs too have refrained from expanding their business. If the government doesn’t create an investment-friendly environment, the entrepreneurs will not come up with investments,” the businessman said.
Talking to this reporter, Professor Abu Ahmed said assurance of utilities such as gas and electricity is a prerequisite for any kind of investment. Unfortunately, the country is facing severe handicaps in providing these services, he added.
“How the businessmen will conduct business if the government does not supply them required volumes of gas and power. On the other hand, the businessmen are also not getting logistic support from the government. If this situation continues, it would not be possible for expansion of industry and investment in the country,” he observed.
The economist also observed that rampant extortion has also been frustrating the businessmen. “This should be stopped,” he added.
Replying to a query, Abu Ahmed said although the banks have been facing excess liquidity, businessmen are not showing their interest in borrowing loan from the financial institutions in order to expand business thanks to a lack of confidence.
“Our entrepreneurs have been losing their confidence in the authorities as they have yet to create a congenial environment for doing business in the country,” the economist added.
Kazi Kholiquzzaman said the businessmen are facing many problems including capital and environment.
“The government will have to ensure supply of adequate power and gas, build up confidence and create suitable environment for doing business,” he added.
He said when the banks are experiencing excess liquidity, businessmen are not feeling interested to borrow money from the banks as they have yet to see an environment conducive to running their business.
“The government will have to take initiatives in a bid to encourage businessmen in the country,” Kazi Kholiquzzaman added.

Courtesy of The Independent