Bida Calls for Reforms to Enhance Investment Climate

A white paper on Bangladesh’s economy reveals seven mega projects exceeded initial budgets by Tk 80,569 crore due to poor planning, corruption, and governance failures. The total cost rose from Tk 114,547 crore to Tk 195,116 crore, with common issues including inadequate feasibility studies, inflated land prices, and manipulated procurement processes.

A draft report by the White Paper committee reveals that 23.33% to 40% of the Annual Development Programme (ADP) funds in Bangladesh have been embezzled over the past 15 years. The government spent around $60 billion on ADP, with $14 billion to $25 billion lost to corruption, including political extortion, bribery, and inflated budgets.

Bangladesh lost an average of $14 billion annually to capital flight during the 15-year tenure of the Awami League, according to a draft report by a committee preparing a white paper on the economy. Using government documents, global reports, and scientific methodologies, the 12-member committee highlighted how funds were laundered and suggested strategies to curb the practice.

At a seminar on November 26, 2024, experts highlighted major concerns of Japanese businesses investing in Bangladesh, with over 70% citing risks like underdeveloped legal systems, time-consuming tax procedures, political instability, and unclear government policies. According to the Japan External Trade Organisation (Jetro), 77.1% of businesses identified legal inefficiencies, while 74.7% highlighted administrative challenges.

Bangladesh's private sector is grappling with stagnation due to political instability, uncertainty, and rising interest rates, according to the Planning Adviser of the interim government. He noted that production and job creation are being hindered, with protests in factories compounding the issue.

The interim government plans to accelerate the implementation of ongoing development projects to counter the economic slowdown, said Planning Adviser Prof Wahiduddin Mahmud. Amid political turmoil, labour unrest, high inflation, and expensive loans deterring private investments, the adviser emphasized policy adjustments and swift project execution by fiscal year-end.