The New Nation - Internet Edition

BUSINESS REPORT

Bangladesh Chamber of Industries (BCI) has said that investors are showing no interest for investment though an investment-friendly situation is prevailing in the country.

"Industrialisation may face retardation due to lack of investment in the existing situation. Industrial production is being hampered for want of power supply and that is why industries are facing difficulties to fulfill production targets," said BCI Vice-President Shamsur Rahman at a meeting with Special Assistant to Chief Adviser Mahbub Jamil at the Ministry of Industries at Motijheel in the city on Wednesday.

The meeting elaborately discussed the recent political situation, industry, trade and commerce.

BCI Directors AM Badruzzaman Khan Khasru, Md Rajjab Sharif, Obaidur Rahman, Md Abdul Tahid Majumder, Enayet Ullah Siddiqui, M Nasir and Priti Chakraborty spoke on the occasion.

Shamsur Rahman pointed out that the main problem of industrialisation is to mobilise capital. "Banks and financial institutions do not disburse capital in time showing various terms and conditions. On the other hand, entrepreneurs have been expressing negative attitude towards investment due to high bank interest rate, weak management of the loan giving financial institutions, critical procedure of loan management and above all, lack of capital," he said.

The BCI Vice-President said at present, banks approve project loans at 60:40 ratio. "But, we think that project loan should be approved at 80:20 ratio for the sake of industrialization. It means that banks will give 80 per cent and entrepreneurs will provide 20 per cent," he said.

He called for reducing bank interest rate at a reasonable level as existed in the neighbouring countries.

Shamsur Rahman said the investors are not expressing any interest to investment though an investment-friendly situation is prevailing in the country.

"Industrialization may face retardation due to lack of investment in the existing situation," he said.

The BCI leader observed that industrial production is being hampered for want of adequate power supply and that is why the industries cannot fulfill the production targets.

"But, industrialisation is the driving force of economic development. Our prime goal is to reduce unemployment and to bring economic stability through industrialization. But the industrialization is being hindered in various ways. So it is necessary to diversify and strengthen the industrial sector for meeting the challenges ahead in the world," he said.

He noted that adequate investment is a must for setting up more industry and ensuring quality products. Special incentives have to be given to special sector for expedition of industrialization and tax holiday facilities have to be allowed if any entrepreneur sets up industry at a certain area, he added.

The BCI leader said that there should be a reasonable difference of duty between finished products and basic raw materials. They proposed to reduce the duty of basic raw materials from 10% to 5%.

He urged the Special Assistant to declare the industrial sector out of load shedding for smooth economic activities and demanded to exempt the minimum rate of power.

Shamsur Rahman also demanded for port development and new deep seaport, control prices of the essentials and illegal syndicate business immediately.

He expressed heartfelt thanks to the Special Assistant for giving his valuable time and welcomed the steps taken by the Caretaker Government for steps to hold a free, fair and neutral election.

In his speech, Mahbub Jamil said that caretaker government has taken various steps to bring the country in a real shape. He supported BCI's demand put by the delegation members. He further said that now the country is in gas crisis. To meet the demand, exploration work has been expedited. 1000 MW electricity will be added to the national grid within coming December, he added.

He further said that the situation would not improve if corruption persisted. "We should hate crimes and criminals," he suggested.

Mahbub Jamil also said that the good industrialists should be rewarded for their good work.

The meeting was attended, among others, by BCI Directors Omar Farooque Bhuiyan, Shamim Ahmed, Shahidul Islam Niru, Delower Hossain Raja, ZJAS Siddique, KM Zakir Hussain and Jahangir Alam.