Six months have passed since the government, but the business situation in the country has not improved. Domestic and foreign investors are waiting in the hope of when political uncertainty will be overcome. Until the political government comes, no one wants to invest in new investment. Especially foreign investors are also hesitant. In the midst of such a situation, business entrepreneurs have been facing new problems in the field of trade and commerce due to the lack of VAT and the continuation of the government's policy. Analyzing the data of the government data shows that there is no new domestic investment in the private sector. Again, direct foreign investment (FDI) has dropped drastically in the country.
According to data from the Department of Economic Relations (ERD), the promise of Bangladesh's loan from development partners has decreased by 6.7 percent in the first half of the current fiscal year (in the first 6 months, July-December). That is, during July-December, Bangladesh Development Allies received a promise of $ 2.2 billion-which was $ 1.8 billion in the same period of the last fiscal year. In addition, the first 6 months of the current fiscal year – 5 percent less than the same period of the last fiscal year.
According to ERD data, Bangladesh's development partners have discounted $ 1.8 billion, which was $ 1.8 billion in the same period of the last fiscal year.
And Bangladesh Bank data says-July-September of the fiscal year 2021-27 has received 5 percent less foreign investment in the quarter. From July to September of the current fiscal year, foreign investment (FDI) has dropped to $ 1.3 million. In the same period of the previous year, that is, in July-September of the fiscal year 2021-27, the investment was $ 9.5 million.
July-September of the fiscal year 2021-27 is the largest investment from the UK. Then came from South Korea and China.
Meanwhile, according to the recent report titled 'FDI Hitmap' of the Bangladesh Investment Development Authority (BIDA), there is a shortage of campaigns to encourage structural investment for domestic industries.
Not only that, the cost of production in the garment sector has already increased by 5 percent. Bank interest rates have also increased by 3-5 percent, which has increased economic pressure for industrial factories. Besides, it has been proposed to increase the price of gas, which will increase the cost of the garment and textile industries in the industry.
Traders say the inadequacy of gas supply has reduced production in many industrial factories, especially in the industrial areas of Gazipur, Mymensingh, Narayanganj and Savar. Due to the gas crisis here, production has decreased by 3-5 percent.
In this economic distress, foreign investment has decreased. Analysts say domestic and foreign investors are limited to observing the situation. Investors are now adopting waiting policies to see where the political change goes. Economists say that if political and economic uncertainty is not resolved quickly, Bangladesh can lose the opportunity to invest in foreign investment. This can damage the country's long -term economic goals and growth.
Of course, economists have said the need to increase foreign investment to mobilize the economy over the past few years, but the confidence of investors has been destroyed for the last two to three years. Especially in July-September, the country's confidence has decreased further due to instability in the country.
In this regard, Bangladesh China Chamber of Commerce and Industry Secretary General Al Mamun Mridha told the Bangla Tribune, “The vast unstable political situation is the main reason for the decline of foreign investment. Besides, foreign investment is also decreasing due to the increase in interest rates and lack of gas supply in industries. '
Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said the macroeconomic stability is essential for the improvement of foreign investment. “The current environment is not favorable to investing due to lack of macroeconomic stability and policy uncertainty,” he said.
Major General Abul Kalam Mohammad Ziaur Rahman, the executive chairman of Beppa, told a press conference on Monday (January 26th) that the amount of investment in EPZs has dropped by about 22 percent in the last six months due to global and internal various countries.
At the press conference, the member of Beppa. Ashraful Kabir said that in the various challenges in 2021, there were 20 new investment agreements with Beppa. “The total proposed investment of these companies is $ 10 million,” he said.
According to the press conference, investment from six countries has come so far in Beppzer EPZs. Most came from China. A total of 5 Chinese companies have investment in EPZ. Then it has invested 5 in South Korea, 20 in Japan, 3 in India, 3 in the United States, 3 in the United States and 1 in Sri Lanka.
At present, a total of 8 industries are operating in eight EPZs and Bepps economic zones. Of these, hundreds of foreign -owned companies, jointly owned companies 1 and 100 percent domestic institutions.
