The year 2009 has been a very difficult year economically for the world at large and although Bangladesh remained far beyond the epicenter of the global financial crisis foreign direct investment in the country during the period is presumed to have fallen to some extent, if not dramatically. Dr. S A Samad, Executive Chairman of Board of Investment (BOI), however, would not agree, arguing that actual FDI statistics for 2009 are not yet available. In this regard he points out that FDI in 2008 was the highest ever ($1.08b).

During the caretaker regime BOI in its role as a facilitator of investment was inconspicuous but now with the new chairman at the helm the image is beginning to change. The vibrancy of the apex body is being felt through its different activities aimed at creating a congenial climate for investment.

It may sound a bit hyperbolic that the investment regime in Bangladesh is "the most attractive, liberal and transparent in South Asia" but Samad has his reasons. "At BOI, fully documented application for registration gets approval within a week. Now we have weekly approvals meeting." Moreover, BOI is in the process of simplifying rules and regulations to ease doing business. "We are working to install an online registration system very soon. Hon'ble Prime Minister has approved One Stop Service for BOI. For augmenting BOI activities the One Stop Cell has been re-organized recently and is going to be equipped with requisite officials from relevant departments and agencies." BOI is also strengthening its research capability to develop a comprehensive system for assessing relatively complex proposals.

"The present Awami League government has earmarked Foreign Investment as a priority for development of the country," Samad continues. "The Hon'ble Prime minister in all her overseas visits placed FDI promotion as one of her topmost agenda items."

But results of these initiatives are not visible yet. "You have to appreciate that implementation of any FDI project begins after a considerable time for feasibilities (6-12 months)," Samad quips. "Govt has opened up the economy and made it investment friendly. We are hopeful that the results will be seen soon."

The present government is laying emphasis on promoting infrastructure projects, which is essential for supporting industrial growth, asserts the executive chairman. "You have seen the PPP initiative and Taka 2500 crore is earmarked in this year's budget for implementation of the PPP projects."

BOI is expecting more investment in the power, energy, transportation and infrastructure sectors, besides the manufacturing sector. "Tourism is a new area for FDI. Interestingly, for the first time, we have seen interest from Japan for manufacturing."

"Govt. has given utmost priority to power generation projects. To attract FDI in this sector competitive fiscal incentives have been offered. Government is now continuing an overseas road show (London, Singapore and New York) to attract FDI in the 11 Power projects with a capacity of 4,000 MW."

According to Samad, other than power, sectors such as ICT, pharmaceuticals, agro-processing, ship building, apparels & textiles, human resources developments and tourism are very attractive and important, as far as FDI is concerned, because they contribute to growth.

Bangladesh is a promising and investor friendly country, Samad observes. "We hope this decade of change will transform Bangladesh into a prosperous nation."

The former Principal Secretary concludes by saying, "By 2021 Bangladesh is likely to become a middle income country. FDI has been identified as a major contributory variable to this process of transformation of a peasant economy into an industrial one. The present democratic government is committed to equitable and inclusive growth."