Bida for adequate policy for NPL resolution
The Bangladesh Investment Development Authority (Bida) will recommend formulating adequate policy measures for non-performing loan (NPL) resolution and NPL market creation to the government as it would lead to more foreign direct investment.
Bida's intention was disclosed at a post-workshop on the "International Investment Summit 2021", organised by Bida at Radisson Blu Dhaka Water Garden on Monday.
Bida will also recommend relevant entities to further liberalise the foreign exchange system to encourage foreign commercial borrowing and meet the demand for industrial financing.
The organisation emphasised modernisation of the bankruptcy law for business restructuring and post-Covid-19 recovery. It would also recommend extensive reforms in the financial sector to allow foreign investors to invest in banking and insurance services.
At the workshop, Commerce Minister Tipu Munshi said this edition of the International Investment Summit has successfully showcased Bangladesh's strengths and opportunities for investment. The country brought home around $3 billion worth of investment commitments from the event.
"We have to work together as a team to realise the full potential of investment," he said.
Munshi went on to say that the local economy has already taken off and just needs a more sustained inflow of foreign direct investment.
Salman F Rahman, private industry and investment adviser to the prime minister, said Bangladesh has built a solid foundation to support the growth of its economic activities as both foreign and local investment are given the highest priority by the government.
For example, the country's apex investment promotion agency, Bida, employs an open door policy for investors from all corners of the globe.
Bangladesh is often described as the land of untapped opportunities characterised by a stunning economic record. It also has a highly adaptive and competitive workforce, and potential industry sectors that were showcased at the summit, he added.
Ahmed Kaikaus, principal secretary to the Prime Minister's Office, said like other countries in the world, Bangladesh also has investment challenges which the government is quick to address.
"The strength of Bangladesh is that we adapt and for this reason, even amid the ongoing coronavirus our gross domestic product grew 6.94 per cent," he said.
That means the country is resilient and that it can absorb shocks before rebounding quickly, Kaikaus added.
Nuzhat Anwar, acting country manager of the International Finance Corporation, said it was important to inform about the investment opportunities and their benefits in Bangladesh.
"I think we are on the right track," she said. Md Ariful Islam, director of the international investment wing at Bida, presented the keynote at the workshop.
Md Sirajul Islam, executive chairman of Bida, virtually joined the event due to illness. Bida Director Islam outlined 24 investment environment reform recommendations received through the International Investment Summit and Bida's plans for implementing them.
He also briefed on the pledges of top representatives of the governments of India, China, Japan, Saudi Arabia and the UK for investment cooperation, and Bida's steps to attract foreign investment from specific destinations.
The workshop highlighted investment agreements while more than $3 billion worth of memorandums of understanding were received at the summit.
The International Investment Summit-2021 covered 11 prosperous sectors, such as garments and textiles, electrical, electronics manufacturing, plastics, leather and leather goods, agribusiness, healthcare and pharmaceuticals, capital markets, financial services, transportation, and logistics.
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