Foreign investors sought Bangladesh Investment Development Authority (BIDA) a strategy based on best global practices will be needed for opening up the economy.
They also want urgent deferred of VAT and AIT so that investors can continue business.
Samsung C&T Corporation, Marico Limited Bangladesh, A.P. Moller – Maersk, Rahimafrooz (Bangladesh) Ltd., The Himalaya Drug Company, Sans Packaging & Accessories, American & Efird, Huntsman Corporation, Wärtsilä, Sheba.xyz, A.S & Associates, Quattro Fashion and more in a virtual meeting with BIDA officials made those proposals recently.
They pointed out immediate waiver of port demurrages and storing period to be extended with facilitate more bonded warehouses.
“Investors want a clearer definition of affected industries so that banks can follow a uniform criterion. Essential goods must also be defined more clearly” a BIDA official told Business Mirror Saturday.
“Startups, which are hurt badly, urgently need loans without collateral. Backward linkage sectors like accessories must also get stimulus loans for a competitive RMG sector.” Foreing investors argues during the meeting.
The investors further sought government coherent measures to avoid supply disruptions as well swift processing of paperwork in line with subsidy issues.
The BIDA has recommended the government to allow foreign loan as working capital for local entrepreneurs.
Currently a clause of foreign investment law bared loan from international finance sources to use as working capital.
The investment authority also advised the government keeping all investment related fees suspended as well as reduction utilities bill during the pandemic period.
A set of recommendations were forwarded by BIDA to Senior Finance Secretary Abdur Rouf Talukder aiming to offset the negative impacts of Coronavirus pandemic on both local and foreign investment.
Director of BIDA Md Ariful Haque signed the 14 points recommendations paper Thursday also suggests including simplified foreign loan approval procedures, suspension of keeping workers profit participation fund (WPPF) and provisional fund contribution.
Bangladesh, attained total of $1,137 million annual FDI of among which equity represents $432 million (38 percent), reinvested earnings $490 million (43 percent), and intra-company loans $215 million (19 percent).
Sectoral position of FDI consists of power, gas and petroleum 21 percent, followed by manufacturing 37 percent, textile 24 percent and cement 4 percent.
If we look at the year wise trend, it was $666 million in 2007, $1,086 million in 2008, $700 million in 2009, $913 million in 2010 and $1,137 million in 2011.