Centre for Policy Dialogue (CPD) has underscored the need for developing human capital to attract more local and foreign investment in the country.
“In order to ensure a breakthrough public and private investment (including FDI), digital and technological development, skill development, innovation, and creativity improvement are essential,” said CPD Research Director Dr. Khondaler Golam Moazzem.
He said this while presenting a report titled “Bangladesh Business Environment 2022: Findings from the Executive Opinion Survey” at its Dhanmondi office today.
CPD Executive Director Fahmida Khatun was also present at the event.
Khondaler Golam Moazzem said a number of technological breakthroughs would be required in the case of energy, digital trade, 3D/4D, agriculture, and health technologies.
“FDI should get priority along with local private investment. Major investment breakthroughs will be required in innovative ideas, competitive infrastructure, legal infrastructure, fiscal space, skill development, and talent hunting,” he added.
Moazzem laid emphasis on the major overhauling of the country’s financial sector.
“Financial sector needs major overhauling which could be initiated as part of complying with the International Monetary Fund’s (IMF) loan conditionality – the amendment of the bank company act, lifting the cap on lending rate to ensure better access to SMEs, transparency in outstanding loans, the effective oversight role of the central bank, Security and Exchange Commission (SEC) and Insurance Development and Regulatory Authority (IDRA),” he added.
He said an inclusive supply chain in major sectors needs to be developed with the assured presence of SMEs in each supply chain segment.
Business-related information needs to be disclosed in an integrated information and data system to review the operations of players in the supply chains, he added.
Fahmida Khatun said, “The current situation is unstable. We have the pressure of inflation on one side, then there is the crisis caused by the Ukraine-Russia war, also there are geopolitical factors for which even big economies are going through recessions.”
“Many international organizations like World Bank, and the IMF have forecast that it will linger till 2024. Many big economies will enter recessions. The whole world is struggling, and people in Bangladesh are also struggling with food prices and fuel inflation. Individuals, as well as businesses, are facing pressure due to this,” she added.
CPD carried out the “Executive Opinion Survey (EOS)” in April-July 2022 in partnership with the World Economic Forum (WEF). The objective of the survey was to appreciate the perception of entrepreneurs and businessmen on the state of business competitiveness and factors and institutions responsible for long-term growth, especially during the post-pandemic period.