Abu Sajjad :
High corporate tax is hindering the flow of Foreign Direct Investment (FDI) in the country. Low corporate tax can encourage the foreign investors to invest more in various potential sectors including manufacturing, tourism, Roads and Highways and infrastructure, said Dr Nazneen Ahmed, Senior Research Fellow of the Bangladesh Institute of Development Studies (BIDS) yesterday.
She made the observation while addressing a seminar on ‘State of the Economy’ at Sagor-Runi Milonayoton of Dhaka Reporters’ Unity in the city, orgnised by the Board of Investment (BoI).
In the last year, country received only $ 1.6 billion FDI but country needs over $5 to $6
billion FDI per year for becoming a middle-income country by 2021.
She said the private sector credit growth declined in the recent time due to diversion of bank deposit to high interest government saving certificates in one hand, and high lending rate offered by financial institutions (FIs), pulling down industrial growth on the other.
She pointed out that declining term loan of banks and a rise in the sale of savings certificates immensely affected the private sector’s growth.
Lack of good governance and political unrest are also affected the business community to invest in large scale projects which is not good for boosting the economy, she said. “The increasing of FDI flow and private sector development can ensure a sustainable economic growth”, she also added.
She underscored the need for co-ordination among various regulatory authorities and financial institutions for attracting more FDI. “More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives also needed for attracting more inflow of investment in the country”, she said.
Addressing as the chief guest, Dr Toufiq-e-Elahi Chowdhury, Adviser to Prime Minister for Power, Energy and Mineral Resources said, Bangladesh has proved to be resilient and an attractive FDI destination even in the thick of severe global economic downturn and political unrest of the country due to investment friendly atmosphere and policies of the present government.
Considering the need for generating more power for attaining sustainable economic growth, he said only 45 percent people used the electricity in 2009 but at present above 70 percent people are using electricity.
He said that the government is sincerely active to explore and utilise all prospects and opportunities for economic growth overcoming various types of obstacles. He emphasized the need for positive mindset in this respect. He urged the media and experts to highlight the positive steps undertaken by the government and help upheld the image of the country so that foreign investors get attracted to invest more in the country.
Dr Biru Paksha Paul, Chief Economist of Bangladesh Bank made presentation on Bangladesh economy and said comparative analysis based on time-frame where he said infrastructure, energy, institutional reforms and social peace are needed to make economic growth faster.
Md Kaikobad, Executive Director of Dhaka Transport Co-Ordination Authority presented a paper on ‘Strategic Transport Plan in Dhaka’ highlighting the salient features of the city’s transport plan under implementation and its future impact.
Farhana Pervin, Assistant Director of BoI, Mohammed Nurul Amin, Director of Dhaka Mass Rapid Transit Development Project and Mohammad Haroonur Rashid, Ex-Chairman of Security Exchange Commission among others addressed the seminar. Dr SA Samad, Executive Chairman of the Board of Investment presided over the seminar.
High corporate tax is hindering the flow of Foreign Direct Investment (FDI) in the country. Low corporate tax can encourage the foreign investors to invest more in various potential sectors including manufacturing, tourism, Roads and Highways and infrastructure, said Dr Nazneen Ahmed, Senior Research Fellow of the Bangladesh Institute of Development Studies (BIDS) yesterday.
She made the observation while addressing a seminar on ‘State of the Economy’ at Sagor-Runi Milonayoton of Dhaka Reporters’ Unity in the city, orgnised by the Board of Investment (BoI).
In the last year, country received only $ 1.6 billion FDI but country needs over $5 to $6
billion FDI per year for becoming a middle-income country by 2021.
She said the private sector credit growth declined in the recent time due to diversion of bank deposit to high interest government saving certificates in one hand, and high lending rate offered by financial institutions (FIs), pulling down industrial growth on the other.
She pointed out that declining term loan of banks and a rise in the sale of savings certificates immensely affected the private sector’s growth.
Lack of good governance and political unrest are also affected the business community to invest in large scale projects which is not good for boosting the economy, she said. “The increasing of FDI flow and private sector development can ensure a sustainable economic growth”, she also added.
She underscored the need for co-ordination among various regulatory authorities and financial institutions for attracting more FDI. “More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives also needed for attracting more inflow of investment in the country”, she said.
Addressing as the chief guest, Dr Toufiq-e-Elahi Chowdhury, Adviser to Prime Minister for Power, Energy and Mineral Resources said, Bangladesh has proved to be resilient and an attractive FDI destination even in the thick of severe global economic downturn and political unrest of the country due to investment friendly atmosphere and policies of the present government.
Considering the need for generating more power for attaining sustainable economic growth, he said only 45 percent people used the electricity in 2009 but at present above 70 percent people are using electricity.
He said that the government is sincerely active to explore and utilise all prospects and opportunities for economic growth overcoming various types of obstacles. He emphasized the need for positive mindset in this respect. He urged the media and experts to highlight the positive steps undertaken by the government and help upheld the image of the country so that foreign investors get attracted to invest more in the country.
Dr Biru Paksha Paul, Chief Economist of Bangladesh Bank made presentation on Bangladesh economy and said comparative analysis based on time-frame where he said infrastructure, energy, institutional reforms and social peace are needed to make economic growth faster.
Md Kaikobad, Executive Director of Dhaka Transport Co-Ordination Authority presented a paper on ‘Strategic Transport Plan in Dhaka’ highlighting the salient features of the city’s transport plan under implementation and its future impact.
Farhana Pervin, Assistant Director of BoI, Mohammed Nurul Amin, Director of Dhaka Mass Rapid Transit Development Project and Mohammad Haroonur Rashid, Ex-Chairman of Security Exchange Commission among others addressed the seminar. Dr SA Samad, Executive Chairman of the Board of Investment presided over the seminar.
