The $1.18bn soft loan package announced by Japan is a welcome vote of confidence in the future of Bangladesh.
When taken with growing private sector investment from Japan, it is a further indicator of the longstanding friendly relations shared by our nations.
The government must ensure that these funds are utilised efficiently to boost long-term economic development and opportunities. There are too many instances of land remaining idle or unproductive in existing industrial parks and EPZs because of poor communication and power links around the country.
As a consequence, many industries are forced to cluster around Dhaka where land is expensive and there is less space to build modern factories. It also holds back rural and regional development, preventing the country from making efficient use of its land area.
Improved communication and highway links are needed to overcome the challenges businesses currently face in efficiently transporting goods and raw materials, and to incentivise businesses to invest and spread development around the nation.
The new package can help as it is intended to help finance projects to develop various city corporation areas in the areas of energy, natural gas, electricity and infrastructure development.
It is vital the government shows long term vision by putting renewed emphasis on building efficient transport links to allow EPZs to serve as export corridors. New industrial parks and better communications are needed not only to help the crucial RMG sector to modernise further, but also to attract other industries and investment for future growth.
