Red tape, graft block FDI: GM Quader

GM Quader, commerce minister, speaks at a monthly luncheon meeting of the American Chamber of Commerce in Bangladesh (AmCham), at Ruposhi Bangla Hotel in Dhaka yesterday. Aftab ul Islam, AmCham president, and Dan W Mozena, US ambassador to Bangladesh, were also present. Photo: AMCHAM

Bangladesh needs to rid itself of bureaucratic red tape and corruption to attract foreign investors, the commerce minister said yesterday.
"Infrastructure bottleneck is not the biggest challenge. We have problems in the areas of bureaucracy and corruption," said GM Quader.
"There would be no compromise on corruption on the part of my ministry. No such cases will go unchallenged. I can say that no file will get stuck in the bureaucratic process," he said.
The minister was speaking at the monthly meeting of the American Chamber of Commerce in Bangladesh (AmCham) on "Doing Business in Bangladesh: Opportunities and Challenges" at Ruposhi Bangla Hotel in the city.
Bangladesh attracted $913.32 million in foreign direct investment in 2010, up by 30 percent compared to 2009, according to a recent World Investment Report of the United Nations.
But the FDI inflow has been stagnant below $1 billion for a long time due largely to inadequate supply of gas and electricity, a lack of bargaining capacity and scarcity of land.
The minister said the government is open to FDI and offers various incentives to the investors.
AmCham President Aftab ul Islam said Bangladesh needs substantial amount of investment, both local and foreign, to promote economic development to create employment and cut poverty.
"For various reasons, necessary investment has not taken place. The projected 7 percent GDP growth has become uncertain with the current macroeconomic challenges and sluggish investment."
Islam said Bangladesh currently faces a double-digit inflation although it had enjoyed macroeconomic stability for a sustained period.
"Today, our fiscal management is also facing challenges amid inadequate revenue resources, decline in aid absorption and accelerated bank borrowing by the government."
Islam said: "Some innovative attempts are needed to coordinate efficiently among monetary, fiscal and exchange rate policies."
He said the country has enormous potential and opportunities to take off. "But the real challenge lies in having appropriate leadership at every level to chart the course of the nation's voyage towards prosperity."
US Ambassador to Bangladesh Dan W Mozena and AmCham Executive Director A Gafur also spoke.