Big investment target set for next fiscal year
Al Amin :
The government has set a big investment target of 33.8 per cent of GDP in the next fiscal year (2023-24) amid the slowed economy caused by Russia-Ukraine war, according to the Finance Ministry.
Out of this, the private investment target is 27.4 per cent and the rest 6.4 per cent is by government, the ministry sources said.
The investment target was 31.5 per cent in the current fiscal year. Of this, 24.9 per cent was by the private entrepreneurs and 6.6 per cent by the government.
According to the Bangladesh Bank data, Foreign Direct Investment (FDI) has been increased by 20 per cent in last one year in the country, even in the ongoing economic crisis.
Economists opined that the investment-friendly environment has created in the country centering the Padma Bridge, Metrorail and economic zones and it has impacted on the foreign investment.
Terming the uprising trend in FDI a positive for the country, they think that the investment would increase further, if the world economic situation turns to normal.
Ahsan H Mansur, Executive Director of the Policy Research Institute (PRI), told The New Nation, “Investment in the country has remained stagnant for last few years and the ratio is between 30 and 31 per cent of GDP. So, stability in dollar market is required to achieve the investment target.”
As per the BB data, FDI increased to 20.18 per cent or $3.47 billion in the country in 2022 from $2.89 billion that was in the previous year.
The FDI stock in the country increased in the reinvested income sector, but equity capital and inter-company debt decreased in 2022. In the last year, the reinvested income was $2.514 billion, which was $1.562 billion in the previous year.
On the other hand, equity capital income was $1.02 billion which was $1.06 billion in the previous year, the BB data showed.
Md Jashim Uddin, President of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI), said that the country’s investment and production sectors must be strengthened to face the ongoing globalization challenges.
“Hopefully, the government will place a pro-industry and investment-friendly budget this time,” he added.
Besides, lessening the cost of doing business, infrastructural development, protection of investment, increase in ports capacity, ensuring pro-investment currency and duty system, reduce in transportation cost and special attention on ensuring uninterrupted electricity and energy supply are required to strengthen the country’s position in the global competitiveness index, he said.
“We expected that specific direction will remain on these issues in the upcoming proposed budget to be placed in the Parliament on June 1,” he added.
