The government should heed the call made by the Metropolitan Chamber of Commerce and Industry this week to lease or transfer idle and unproductive state-owned land to the private sector as a way to increase investment.
In its dialogue with the industries minister last month, the International Chamber of Commerce Bangladesh made a similar suggestion asking for a new industrial policy to clear the way for leasing out sick and closed-down SOEs to private investors.
While the minister would not go further than promising to encourage new public-private partnerships, it is evident that it is long overdue for the government to review the way it utilises land it either owns directly or controls through state-owned enterprises.
In a review last year, the Privatisation Commission identified 1,288 acres of unused land occupied by 39 major loss-making SOEs as sites where over 250 industrial units could be set up generating upwards of over Tk1,500cr a year for the government.
At a time when Bangladesh needs to create two million jobs a year to make the most of its demographic dividend, it makes no sense for the government to limit the land available for private investment by allowing loss-making SOEs to occupy potentially far more productive sites.
There is a compelling economic case for the government to actively consider leasing or selling more of these lands to help develop much-needed RMG parks and industrial zones.
With its proven track record in creating employment, the private sector can make better use of these underused resources. This would help build investor confidence and be invaluable in attracting FDI.
Bangladesh should not risk the opportunity costs of failing to use such lands more productively.
The government should speed up moves to make better use of state controlled land for the benefit of the economy.
