The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the government to discourage foreign companies from taking part in national infrastructure projects.

"Most projects in the country are being implemented by foreign companies. As Bangladesh becomes a developing country, it needs to increase its reliance on local construction companies," FBCCI President Md Jashim Uddin said yesterday.

The FBCCI will take as many initiatives as possible for local organisations to make progress in this regard, he added.

Uddin was addressing a meeting at the FBCCI office, where the FBCCI Standing Committee for Construction Sector tried to decide how to complete various projects amid the rising price of construction materials. The price of every construction material, including rods, stone, bricks, sand, glass and aluminum products, has risen by over 20 per cent to 25 per cent in the last four to five months, officials said.

The recent price hike has made it impossible to complete the construction work as per the pre-agreed price, they added.

In addition, the government's fiscal policy, including advanced income tax and value-added tax, is often changed after tenders are submitted, according to the committee. The committee members suggested including a price verification clause in government tenders.

They also proposed imposing an interest on payments made 56 days after the deadline.