Investors seek clarity on law and order, energy supply

Local and foreign investors have sought to know from policymakers in the interim government about their steps to address the current law and order situation and the lack of reliable energy for industry.

Additionally, they identified five key challenges to investment in Bangladesh – corruption, economic performance, lack of consultation with stakeholders, policy inconsistency, and limited access to resources.

During a webinar titled "State of the Investment Climate in Bangladesh", organised by the Bangladesh Investment Development Authority (Bida) yesterday, investors further expressed concerns about exchange rate volatility, high inflation, asset recovery, and banking reform.

Lutfey Siddiqi, special envoy of the chief adviser on international affairs, and Ashik Chowdhury, executive chairman of both Bida and the Bangladesh Economic Zones Authority, addressed questions from the investors.

Ashik Chowdhury said, "After taking charge, I held meetings with 235 chief executive officers (CEOs). The concerns they raised included economic performance, lack of consultation, policy continuity, access to resources, and corruption."

Lutfey Siddiqi emphasised the government's ongoing initiatives to improve law and order and address the crisis in the power and energy sector.

He said, "Businesses are concerned about law and order, and we are working to address these issues."

Additionally, he outlined recent government efforts to tackle the ongoing challenges in the energy sector, while also considering tax breaks to encourage investment in renewable energy.

Furthermore, he noted the frustration expressed by investors and related parties regarding these issues.

They responded to questions from the audience and discussed critical economic indicators, recent government steps to improve the investment landscape, and key initiatives driving Bangladesh's economic progress.

Business leaders, investors, non-resident Bangladeshis, and other key stakeholders participated in the webinar.

While answering the question, Lutfey Siddiqui said, "What the government is doing to improve the ease of doing business is that we will work to make the services of the government offices faster. There are complaints that the speed of work is slow. It is very important to know how much time is required to complete a task."

"We need local and foreign investment," he added.  

He also stressed human rights and labour rights and said, "We will follow the International Labour Organisation's (ILO) conventions, which Bangladesh ratified."

He termed the recent statements suggesting that the purchase orders for clothes from Bangladesh are shifting as "sweeping comments," emphasising that any remarks should be based on facts.

Bida Executive Chairman Ashik Chowdhury said investors seek policy consistency and accurate information about the availability of resources.

"We do not want to make any false promises in these matters. Investors will be clearly informed about which economic zones will be completed within a certain timeframe," he added.

"In addition, investors are concerned about corruption," he said. "To address this, we are moving towards conducting operations entirely in a digital manner. We are committed to removing all barriers to trade and improving the investment environment with transparency and accountability."

Zaved Akhter, president of the Foreign Investors Chamber of Commerce and Industry, referred to the Bida executive chairman and the chief adviser's special envoy, saying, "They have experience serving the private sector. As a result, they will better understand the problems faced by the private sector."

"However, how to collaborate with the bureaucracy is important," he said, after participating in the webinar, in a conversation with The Business Standard at the end of the event.