Businessmen see energy crisis as biggest setback to investment

A survey has found that 65 percent of businessmen think the energy crunch is the biggest setback to investment.
Forty-eight percent of the businessmen say it is the increased cost of raw materials that constraints investment.
The findings of the Business Confidence Survey (January-March) conducted by International Finance Corporation (IFC) and Bangladesh Investment Climate Fund were revealed at a seminar at Dhaka Chamber of Commerce and Industry (DCCI) yesterday.
The survey was conducted among 1,512 companies: 70 percent of them were in the manufacturing sector and 30 percent in the services sector.
Of the surveyed companies, 62 percent were small, 24 percent medium and 14 percent large, said Aminur Rahman, investment officer of IFC.
Of the companies, 43 percent are based in Dhaka, 23 percent in Chittagong, 4 percent in Chittagong, 9 percent in Khulna, 18 percent in Rajshahi and 4 percent in Barisal.
Commerce Minister Faruk Khan, speaking as chief guest, said 1,500 megawatts (MW) of electricity would be added to the national grid by March as the government has taken a series of steps to improve the power situation.
Moderating the seminar, former caretaker government adviser Hossain Zillur Rahman said a slowdown in manpower exports to the Middle East is a matter of concern for Bangladesh.
“It is true that inward remittances increased, but the migration of new workers to major destinations declined,” he said.
According to the survey, foreign direct investment (FDI) is in decline, because investors are low on confidence about Bangladesh.
Not so, said Abu Reza Khan, executive member of the Board of Investment.
han said he has been receiving a lot of proposals from Chinese and Japanese entrepreneurs for investing in the textile sector.
Mujibur Rahman, chairman of the Bangladesh Tariff Commission, said the survey was incomplete and “suitable only for students”.
Mahbubur Rahman, president of International Chamber of Commerce-Bangladesh (ICCB), said the foreign investors would come to Bangladesh in greater numbers, if local entrepreneurs invested more.
Asif Ibrahim, a director of DCCI, said the FDI inflow reached an alarming stage.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association, asked the government to fast-track the coal policy to meet the power crisis and reduce dependency on gas as a major source of electricity.
Jamal Uddin Ahmed, president of the Institute of Chartered Accountants of Bangladesh, suggested the government set up special economic zones and amend the old Securities and Exchange Commission law.
Abul Kasem Khan, DCCI president, Akter Mahmud of IFC, and Selina Quader, vice-president of Bangladesh Women Chamber of Commerce and Industry also spoke.

Courtesy of The Daily Star