Stakeholders Meeting on “Overseas Investment by Bangladeshi Entrepreneurs”
Dr. Mashiur Rahman, Hon’ble Adviser (Economic Affairs) to the Prime Minister spoke as the Chief Guest in IBFB Stakeholders Meeting on “Overseas Investment by Bangladeshi Entrepreneurs” held on Monday, 04 May 2015 at the Daily Star Seminar Hall in Dhaka. Dr. A. K. Fazlul Haque Shah, Professor, Dhaka University (2nd from left) presented the Keynote Paper. Mr. Hafizur Rahman Khan, President, IBFB (3rd from left); Mr. Mahmudul Islam Chowdhury, Founding President (2nd from right), Mr. Md. Omar Shafayat Kausar, Vice President (right) of IBFB, Dr. Md. Ismail Hossain, Asst. Prof. of Dhaka University (left) are also seen.
International Business Forum of Bangladesh (IBFB) organized a Stakeholders Meeting on “Overseas Investment by Bangladeshi Entrepreneurs” on Monday, 04 May 2015 at the A.S. Mahmud Seminar Hall (3rd Floor) of the Daily Star Building in Dhaka. Dr. Mashiur Rahman, Hon’ble Adviser (Economic Affairs) to the Prime Minister was present as the Chief Guest in the meeting. Mr. Hafizur Rahman Khan,President, IBFB chaired the Stakeholders Meeting, where Dr. A. K. Fazlul Haque Shah, Professor, Dhaka University presented the Keynote Paper. Mr. Mahmudul Islam Chowdhury, Founding President, Mr. Md. Omar Shafayat Kausar, Vice President and Mr. Md. Abdus Salam, Executive Director of IBFB were also present on the Dias.
The Govt. should allow Bangladeshi entrepreneurs to invest abroad, eminent business leaders opined in the Stakeholders Meeting of IBFB
It was discussed in the meeting that overseas investment by Bangladeshi entrepreneurs is not allowed from the inception of Bangladesh, which is contrary to the government policy of pursuing free market economy. As per Foreign Exchange Regulation Act 1947, no resident or entity is entitled to make payment including FDI to an overseas individual or entity without the prior approval of the Bangladesh Bank. According to the estimates of UNCTAD (2014) the outflow of FDI from Bangladesh is very negligible compared to the inflow. Bangladesh experienced significant growth in FDI inflows among the South Asian countries: from $1.3 billion in 2012 to about $1.6 billion in 2013, whereas its FDI outflow was only below $0.1 billion. It was ranked 85th among the ranked 93 countries according to Stock of Foreign Direct Investment- abroad, 2015 country ranking (CIA World Factbook, 2015). In terms of FDI outflow from South Asian countries, Bangladesh is lagging far behind compared to its other neighboring counterparts.
It was mentioned in the meeting that since overseas investment is not allowed at present, money is regularly being transferred to other countries through informal money transfer system (IMTS) which is locally known as Hawala, Hundi, Fei Ch’ien, Phoe Kuan, Black Market Peso Exchange in different regions of the world. As mentioned in the Keynote Paper, during the period 2002 to 2012 Bangladesh lost more than US$12 billion in the form of illicit financial outflow (GFI, 2013). Money is transferred from Bangladesh to Malaysia, Canada, India, Singapore, UAE, Thailand, Australia, Hong Kong, Switzerland, the USA and the UK. As such, IBFB strongly believes, as mentioned in the meeting, that allowing overseas investment will not only give a boost up to Bangladesh economy, but also have plenty of long term positive impacts such as increase in Govt. revenue, reduce money laundering etc. However, it was also mentioned that overseas investment may have certain demerits such as short-term effects on the source of capital account of the balance of payment, unemployment problem, negative effect on foreign exchange reserves etc.
Dr. Mashiur Rahman, while addressing as the Chief Guest, agreed with IBFB’s proposal for overseas investment. He said, local entrepreneurs should be allowed to invest outside to expand their footprint internationally and to exploit the economies of scale. Although there may have some short-term negative effects, but there will also be a flow of income back to Bangladesh which will have long term positive impact on our national economy. He opined, investment in broader geographical area produces more return than operating in a small market.
Dr. Mashiur Rahman said business operation in a large market enables an enterprise to produce a variety of goods, increase productivity and keep the production costs lower. He suggested that Bangladeshi entrepreneurs have the strength and expertise to operate in global market. He however said that the entrepreneurs would have to invest their taxed income overseas and if the money is not taxed, the government will realize tax on the untaxed money to be invested abroad.
Being agreed with overseas investment, Mr. Suhel Ahmed Chowdhury, former Commerce Secretary, said “We cannot live in a shell for a long time. This is the right time to take the step”.
Mr. M. Anis Ud Dowla, Chairman of ACI Group also said our local entrepreneurs deserve a leeway to explore business opportunities in other countries. However, he opined that overseas investment must have to be properly regulated and there should be a return of income to the home country.
Mr. Syed Nasim Manzur, President of Metropolitan Chamber of Commerce & Industry (MCCI) said the corporate sector of Bangladesh is now ready to invest outside. By allowing our entrepreneurs to invest abroad will not only give them access to global markets, skills and talents, it will also help Bangladeshi talents to grow by working abroad.
Mr. Daniel Keen, Economic and Commercial Officer of U.S. Embassy in Bangladesh opined that investment is not a one-way road and no country can succeed today without being globally integrated.
Among others, Dr. Matiur Rahman, former Secretary to the Govt., Mr. Faruq Ahmed Siddiqi, former Secretary and former Chairman of Security Exchange Commission, Mr. Md. Rezaul Ahsan, Joint Secretary, Finance Division, Ministry of Finance, Md. Nasir Uddin Ahmed, Joint Secretary, Bank & Financial Inst. Division, Ministry of Finance, Mr. Sukamal Sinha Chowdhury, Bangladesh Bank, Mr. A. N. M. Abul Kashem, General Manager, Bangladesh Bank, Mr. Jagonnat Chandra Ghosh, Bangladesh Bank, Mr. Nabhash Chandra Mandal, Executive Member of Board of Investment, Mr. Md. Shahidul Islam, 2ndSecretary of NBR, Mr. Salah Uddin Ahmed, 2nd Secretary of NBR, Mrs. Hosneara Begum, Deputy Managing Director, Janata Bank Ltd., Mr. Sayeed M. Bayzid, Royal Norwegian Embassy, Mr. M. S. Siddiqui, Director of IBFB, Ms. Lutfunnisa Saudia Khan, Director of IBFB, Mr. Arunangshu Dutta,former banker etc. participated in the meeting.
