Robust framework, conducive environment crucial to attract FDI: Experts

Experts and investors at a roundtable on Monday highlighted the need for a robust regulatory framework and a conducive environment to attract more foreign direct investment (FDI) in Bangladesh.

They stressed the importance of policy consistency, political stability, and an improved online One-Stop Service (OSS).

The event, titled “Driving a Sustainable FDI Ecosystem for Long-term Growth,” was organised by the American Chamber of Commerce in Bangladesh (AmCham) at The Westin Dhaka.

Speakers included Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, as the chief guest, and Lutfey Siddiqi, special envoy on International Affairs to the Chief Adviser, as the special guest. Peter D Haas, strategic adviser to Excelerate Energy and former US ambassador to Bangladesh, also participated.

Muhammad Fouzul Kabir Khan pointed to Bangladesh’s current demand for 4,000 mmcfd of gas, with a supply gap of 1,000 mmcfd, as an investment opportunity in the energy sector. He shared plans to launch tenders for 40 renewable energy projects soon and encouraged foreign investment, stating, “If you invest in Bangladesh, we all will benefit.”

Energy expert Professor M Tamim also emphasised the need for FDI in both offshore and onshore sectors to address economic challenges, highlighting Bangladesh’s vast investment potential.

Peter D Haas underscored the strong partnership between the USA and Bangladesh, noting significant US investments in energy and stressing the importance of financial security for investors.

Lutfey Siddiqi called for a focus on improving the business ecosystem to attract more FDI, while A Gafur, director of Abdul Monem Economic Zone Ltd, pointed out that Bangladesh received only $3 billion in FDI in 2023 compared to Malaysia’s $40 billion.

He attributed this gap to issues like policy inconsistency, political instability, and inefficiencies in NBR and OSS, urging action to address these barriers.