Special Correspondent :
Economists and business leaders on Friday expressed the view that terrorist attacks in Dhaka and Sholakia might erode investors’ confidence leading to an adverse impact on Bangladesh’s foreign direct foreign investment (FDI) and export trade.
They said that such adverse impact on FDI and export could be detrimental to the country’s gross domestic products (GDP) growth and garment industry, the largest contributor of its export basket.
“The deadly terror attack in Dhaka on July 1 that killed 20 people, most of them foreigners, in the most damaging of a series of attacks targeting foreigners and minorities in last few years, heightening security concern in the minds of the foreign investors and buyers,” Dr AB Mirza Azizul Islam, a leading economist of the country, told The New Nation on Friday.
He said, investors and buyers are closely watching the Bangladesh situation after the recent terror attacks. The development partners and diplomatic community working in
Dhaka have also taken the issue very seriously. “Officials of the development partners and buyers have already cancelled their scheduled visits to Dhaka indicating that they want to avoid Bangladesh right now due to security concern. A prolong situation will have a negative impact both on our investment and exports,” he noted.
“The Dhaka terror attack has seriously dented image of the country. The deadly terror attack happened at the time when an uncertainty was prevailing in the country’s political arena making the foreign investors shaky hitting the overall investment. The terror attack added salt to the wounds in the investment and thereby eroded confidence of the foreign investors and buyers,” Dr Salehuddin Ahmed, former Bangladesh Bank (BB) governor told The New Nation yesterday.
He said, “A sense of insecurity prevails in the minds of foreign investors as well as local public, adversely affecting the foreign trade and investment. Only proactive and stringent government measures to uproot terrorism and militancy can improve law and order situation in the country. This will help regain confidence of the investors”.
When asked, Dr Salehuddin Ahmed said, the impact of terrorism and militancy in various countries has been evident through reduced economic growth due to loss of foreign and local investment, fall of foreign trade and higher government expenditure for actions against counter-terrorism.
“Bangladesh also needs to device a comprehensive strategy adopting stringent security measures and engaging all concerned to successfully tackle the growing threat of militancy and terrorism so that its growth prospects remain unhurt,” he said.
“The recent terror attacks can have lasting effects on economic development of Bangladesh. Foreign investment and exports are apprehended to bear the brunt of such incidents immediately,” Mahmudur Rahman Sumon, Secretary General of Bangladesh-Greece Chamber of Commerce and Industry (BGCCI) told The New Nation on Friday.
Referring to Dhaka terror attack, he said, countries which lost their citizens in that deadly incident were from Japan, Italy and India–all important partners of Bangladesh’s development.
Japan is the largest bilateral donor for Bangladesh. Recently, Japan signed its 37th Official Development Assistance (ODA) Loan Package for Bangladesh, which amounts to US$1.65 billion.
Besides, about 230 Japanese companies have invested in Bangladesh, mostly in export processing zones; the investment amount is equivalent to US$250 million.
“Tragically, the seven Japanese who were killed during the Dhaka terror attack were working for Bangladesh’s metro-rail development project. Such a tragic incident forced many Japanese potential investors and buyers to cancel their visit to Dhaka amid security concern.
Even, the planned visit of Japan International Cooperation Agency president Shinichi Kitaoka to Bangladesh has been ‘postponed’ as Japan wants to take more time to see ‘convincingly improvement’ in security environment here, creating an uncertainty over the Tokyo-Dhaka bilateral trade and investment,” said Sumon.
Mahmudur Rahman also mentioned that the Western fashion retailers are also reviewing their ties with the local garment exporters following the attack. “The incident will definitely have impact on exports when our major apparel importers from the EU and the US remain wary to visit Bangladesh due to security concerns.”
“If the western buyers may not come to Bangladesh, we fear a deep slump in our business in future,” he said.
The BGCCI leader urged the government to work hard in bringing back the confidence of foreign investors and buyers, development partners and the foreign community ensuring security for them.
“Such a measure could help dispel possible negative impacts of the recent terror attacks in Bangladesh,” he said.
Economists and business leaders on Friday expressed the view that terrorist attacks in Dhaka and Sholakia might erode investors’ confidence leading to an adverse impact on Bangladesh’s foreign direct foreign investment (FDI) and export trade.
They said that such adverse impact on FDI and export could be detrimental to the country’s gross domestic products (GDP) growth and garment industry, the largest contributor of its export basket.
“The deadly terror attack in Dhaka on July 1 that killed 20 people, most of them foreigners, in the most damaging of a series of attacks targeting foreigners and minorities in last few years, heightening security concern in the minds of the foreign investors and buyers,” Dr AB Mirza Azizul Islam, a leading economist of the country, told The New Nation on Friday.
He said, investors and buyers are closely watching the Bangladesh situation after the recent terror attacks. The development partners and diplomatic community working in
Dhaka have also taken the issue very seriously. “Officials of the development partners and buyers have already cancelled their scheduled visits to Dhaka indicating that they want to avoid Bangladesh right now due to security concern. A prolong situation will have a negative impact both on our investment and exports,” he noted.
“The Dhaka terror attack has seriously dented image of the country. The deadly terror attack happened at the time when an uncertainty was prevailing in the country’s political arena making the foreign investors shaky hitting the overall investment. The terror attack added salt to the wounds in the investment and thereby eroded confidence of the foreign investors and buyers,” Dr Salehuddin Ahmed, former Bangladesh Bank (BB) governor told The New Nation yesterday.
He said, “A sense of insecurity prevails in the minds of foreign investors as well as local public, adversely affecting the foreign trade and investment. Only proactive and stringent government measures to uproot terrorism and militancy can improve law and order situation in the country. This will help regain confidence of the investors”.
When asked, Dr Salehuddin Ahmed said, the impact of terrorism and militancy in various countries has been evident through reduced economic growth due to loss of foreign and local investment, fall of foreign trade and higher government expenditure for actions against counter-terrorism.
“Bangladesh also needs to device a comprehensive strategy adopting stringent security measures and engaging all concerned to successfully tackle the growing threat of militancy and terrorism so that its growth prospects remain unhurt,” he said.
“The recent terror attacks can have lasting effects on economic development of Bangladesh. Foreign investment and exports are apprehended to bear the brunt of such incidents immediately,” Mahmudur Rahman Sumon, Secretary General of Bangladesh-Greece Chamber of Commerce and Industry (BGCCI) told The New Nation on Friday.
Referring to Dhaka terror attack, he said, countries which lost their citizens in that deadly incident were from Japan, Italy and India–all important partners of Bangladesh’s development.
Japan is the largest bilateral donor for Bangladesh. Recently, Japan signed its 37th Official Development Assistance (ODA) Loan Package for Bangladesh, which amounts to US$1.65 billion.
Besides, about 230 Japanese companies have invested in Bangladesh, mostly in export processing zones; the investment amount is equivalent to US$250 million.
“Tragically, the seven Japanese who were killed during the Dhaka terror attack were working for Bangladesh’s metro-rail development project. Such a tragic incident forced many Japanese potential investors and buyers to cancel their visit to Dhaka amid security concern.
Even, the planned visit of Japan International Cooperation Agency president Shinichi Kitaoka to Bangladesh has been ‘postponed’ as Japan wants to take more time to see ‘convincingly improvement’ in security environment here, creating an uncertainty over the Tokyo-Dhaka bilateral trade and investment,” said Sumon.
Mahmudur Rahman also mentioned that the Western fashion retailers are also reviewing their ties with the local garment exporters following the attack. “The incident will definitely have impact on exports when our major apparel importers from the EU and the US remain wary to visit Bangladesh due to security concerns.”
“If the western buyers may not come to Bangladesh, we fear a deep slump in our business in future,” he said.
The BGCCI leader urged the government to work hard in bringing back the confidence of foreign investors and buyers, development partners and the foreign community ensuring security for them.
“Such a measure could help dispel possible negative impacts of the recent terror attacks in Bangladesh,” he said.
