Economic and political situation will worsen if govt fails to address them: Economists (Bangladesh)

The govt is failing to assure the foreign investors of providing adequate power and gas supply, the investors have been losing their interest

Friday August 22 2008 23:00:14 PM BDT

The country's recession-ridden economy and political uncertainty may worsen further if the government fails to address them properly, eminent economists have apprehended. According to them, the economic slide will further intensify if government and political(The Bangladesh Today)parties fail to reach an understanding on holding a free, fair and impartial election. Following the latest political crisis in the country, foreign countries are not showing their interest to invest in the country. The economists emphasised the need for foreign direct investment and ensuring their security. Talking to The Bangladesh Today on Friday, eminent economists Muzaffer Ahmed and Abu Ahmed said the government should take immediate steps to bridge the gap with the political parties in order to create congenial atmosphere and earn confidence of both people and foreign investors.Muzaffer Ahmed said that the country needs an investment friendly atmosphere. But the present situation is not like that. The flow of investment will be enhanced only after a political government is formed and political unrest is removed. He also said that due to falling investment, the country's GDP rate and employment opportunities have declined. On the other hand rate of inflation, poverty and underdevelopment are increasing. Abu Ahmed said this political environment as well as the global economy are the big reasons for scanty investing here as the present global economy is on down slide. He also said that holding of a fair election and forming a representative government can make an atmosphere for huge investment in the country. He also said that the prospective investors instead of making investment are sitting idle taking off their hands and doubling up their legs. The economists apprehended that if this trend continues, it will hit the country's export sector badly. According to the Planning Ministry, the implementation of the Annual Development Project of current fiscal year is yet to be started in full swing. On the other hand, economic trend is now moving at a snail's pace compared to the previous year. Apart from this, as the industrial sector is facing manifold problems, the investors are expressing their unwillingness to invest in various sectors and they don't want to take the risk. As a result, no initiative has yet been taken to set up big industries. Simultaneously, as the government is failing to assure the foreign investors of providing adequate power and gas supply, the investors have been losing their interest.Top business tycoons of the country said that it is needed to create more employment opportunities by increasing local and foreign investment to eradicate poverty from the country.