THE over enthusiasm for many Bangladeshi businessmen for investing money abroad is not a new phenomenon. It was once again echoed by a number of businessmen during the pre-budget discussion recently.
However, according to Bangladesh Bank sources, as of now, it has granted permission to only five local companies to invest abroad based on the criterion of the exporter retention quota since capital accounts are not yet convertible in Bangladesh. The amount invested abroad by the five companies would not even surpass $10 million, while the rest unknown billions deposited with foreign banks in various countries was siphoned off illegally.
The point, however, is to dig deeper inside the businessmen who are so keen to invest abroad? And, why such unending eagerness, when illicit capital flight from Bangladesh is shooting up at highly disproportionate rate every year.
To place a recent statistics before our readers, illegal capital flight from Bangladesh surged 33.78 percent year-on-year to $9.66 billion in 2013 through corruption in trade invoicing and other transfer channels. Moreover, according to the Swiss Central Bank – Bangladeshi citizens’ deposits with various Swiss banks rose to 36.02 percent year-on-year to Tk 4,283 crore (506 million Swiss francs) in the year 2014 alone. To add more, last year’s leaked Panama Papers also put some well-known political and corporate leaders under the spotlight after their names cropped up in connection to offshore entities bearing roots in Bangladesh.
Nevertheless, in the face of such colossal amounts of capital flight abroad, mainly illegally, it’s time to encourage them to invest domestically while refraining them from channeling money via illegitimate means. It wouldn’t have happened, if the government would have ensured a business-friendly investment environment in the country by implementing strict financial regulatory measures.
Also it may sound sarcastic but has a logic – if so many dubious businessmen can reportedly siphon-off such huge cash abroad what’s the reason for the argument on investing money in foreign lands via legal channels?
Importance of investing for establishing business entities in domestic sector is not only for making profits and getting richer, but is in fact more – it creates job opportunities for the jobless, helps in rolling the economy while making it bigger. It also makes the supply chain even stronger aiding small scale traders and raw material suppliers etc.. But most importantly it is the businessmen’s patriotic obligation to invest at home for the greater financial benefit of the country. That said – the illicit trade outflow from Bangladesh – between the years 2005 and 2014 – stood at some $75 billion and the lion’s share of it was in some way invested in innumerable foreign companies.
The country’s economy and job market would have benefited – if at least half of illegally laundered money was invested at home. And also the government should understand by now that despite all its efforts for keeping capital accounts non-convertible, it is actually failing to prevent the illicit financial out-flows from Bangladesh.
In the face of this menacing truth, we expect our businessmen to realize that profits coupled with a series of citizens’ obligation is what the people expects from them. One possible reason for trafficking profits or money abroad is – if the money is illegally made or it is black-money, it can only go through illegal channel.
If they are reluctant to invest at home, it’s up to the government’s concerned authorities to investigate and find out to duly address the causes behind such undesired reluctance.
However, according to Bangladesh Bank sources, as of now, it has granted permission to only five local companies to invest abroad based on the criterion of the exporter retention quota since capital accounts are not yet convertible in Bangladesh. The amount invested abroad by the five companies would not even surpass $10 million, while the rest unknown billions deposited with foreign banks in various countries was siphoned off illegally.
The point, however, is to dig deeper inside the businessmen who are so keen to invest abroad? And, why such unending eagerness, when illicit capital flight from Bangladesh is shooting up at highly disproportionate rate every year.
To place a recent statistics before our readers, illegal capital flight from Bangladesh surged 33.78 percent year-on-year to $9.66 billion in 2013 through corruption in trade invoicing and other transfer channels. Moreover, according to the Swiss Central Bank – Bangladeshi citizens’ deposits with various Swiss banks rose to 36.02 percent year-on-year to Tk 4,283 crore (506 million Swiss francs) in the year 2014 alone. To add more, last year’s leaked Panama Papers also put some well-known political and corporate leaders under the spotlight after their names cropped up in connection to offshore entities bearing roots in Bangladesh.
Nevertheless, in the face of such colossal amounts of capital flight abroad, mainly illegally, it’s time to encourage them to invest domestically while refraining them from channeling money via illegitimate means. It wouldn’t have happened, if the government would have ensured a business-friendly investment environment in the country by implementing strict financial regulatory measures.
Also it may sound sarcastic but has a logic – if so many dubious businessmen can reportedly siphon-off such huge cash abroad what’s the reason for the argument on investing money in foreign lands via legal channels?
Importance of investing for establishing business entities in domestic sector is not only for making profits and getting richer, but is in fact more – it creates job opportunities for the jobless, helps in rolling the economy while making it bigger. It also makes the supply chain even stronger aiding small scale traders and raw material suppliers etc.. But most importantly it is the businessmen’s patriotic obligation to invest at home for the greater financial benefit of the country. That said – the illicit trade outflow from Bangladesh – between the years 2005 and 2014 – stood at some $75 billion and the lion’s share of it was in some way invested in innumerable foreign companies.
The country’s economy and job market would have benefited – if at least half of illegally laundered money was invested at home. And also the government should understand by now that despite all its efforts for keeping capital accounts non-convertible, it is actually failing to prevent the illicit financial out-flows from Bangladesh.
In the face of this menacing truth, we expect our businessmen to realize that profits coupled with a series of citizens’ obligation is what the people expects from them. One possible reason for trafficking profits or money abroad is – if the money is illegally made or it is black-money, it can only go through illegal channel.
If they are reluctant to invest at home, it’s up to the government’s concerned authorities to investigate and find out to duly address the causes behind such undesired reluctance.
