Finance Minister AMA Muhith emphasised that private sector should also invest in Bangladesh’s infrastructure development, a prerequisite to regional connectivity and expansion of trading activities with neighbours.
“About the infrastructure, the onus also lies on you (businesspeople),” he said at the opening session of an event titled “India–Bangladesh Business Conclave: The Way Forward” in Dhaka yesterday.
“This is an area (infrastructure) where least importance has so far been given by both the private sector and the government. But the government simply cannot do it alone.”
Muhith called on the businesses to develop big infrastructures including roads, railways and waterways under public-private partnership.
“In most places, we find PPP a wonderful model and we also should begin utilising it right now.”
This is for the first time finance minister attached such an importance to the PPP model since being launched in Bangladesh six years ago. The model has appeared unsuccessful so far.
The minister in his budget speech admitted the fact that PPP was yet to take off due to lack of institutional framework.
In the current fiscal year, the government lowered the allocation for PPP initiative to Tk2,000 crore from Tk3,000 crore last fiscal.
“Connectivity is needed for regional cooperation, trade and investment. Most important thing at this moment is connectivity. This is very very urgent,” Muhith stressed.
Assuring of give necessary supports to private sector in infrastructure development, finance minister said, “The government is there to assist you and I think the Indian government will also do the same.”
He said the infrastructure was also needed to facilitate transit, as Bangladesh was declared a transit country by the former Khaleda Zia government. He said the present government “fully support the concept.”
Muhith added: “Perhaps, this is the first wholesale political decision taken by the country that Bangladesh wants to be a transit country.
“But its benefit is yet to be ripped mainly because of transportation difficulties—the easiest means of transportation.”
Indian envoy in Dhaka Pankaj Saran said role of business bodies were critical to improve infrastructure between the two sides and boost bilateral trade and investment.
“India is committed to move Bangladesh forward in all areas, particularly trade and investment,” Pankaj Saran said.
He suggested paying visits by Bangladeshi entrepreneurs to India, exploring business opportunities and holding road shows and dialogues there.
FBCCI President Abdul Matlub Ahmed invited Indian private sector investment in development of infrastructural facilities like power and gas.
He emphasised that Bangladesh needed an investment of about US$10bn in energy sector alone in next five years.
“We definitely need FDI in this area (energy sector), and Indian investors can avail the opportunity.”
FBCCI chief urged the Indian entrepreneurs to make joint-venture investment in manufacturing sector, particularly electronics, electrical machinery, finished jute products, diversified leather products and agro-processed goods, service sector, IT, tourism and health care.
ICC Director General Rajeev Sing said Indian entrepreneurs were very keen to invest in Bangladesh’s energy, education, IT, health and service sectors.
