Topic-01

Essay> Private sector investment: Status and suggestions

OR,
Creative writing>
Private sector investment become sluggish. do u agree or not? If agree
show your logic comply your opinion.
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Answer:
The countrys economic growth and development strongly depends on
private sector. Private sector plays a huge role in improving the living
standards of people. The private investment has been stagnant for past
few years in BD.

The figure shows the current scenario of the Private sector investment
in Bangladesh. The major reasons for the stagnant position in private
sector invests are higher interest rate of bank loan, political unrest, lack
of sufficient electricity, gas, sustainable infrastructure, lack of good
governance, lack of transparency in various field etc.
By overcoming these pitfalls, the next budget is likely to envisage a
huge private sector investment in the economy, a gap of above Tk 80,000
crore or nearly 22 per cent growth from the poor investment made in the
outgoing financial year. It will raise the contribution of private sector
investment to gross domestic product to 23.3 per cent in the next 201617 financial year against 21.78 per cent in the revised estimate for the
outgoing 2015-16 financial year, officials concerned said.
The national economy seems to be trapped under a 6.0 per cent growth
due mainly to lack of investment. Investment is not accelerating due to
lack of proper policy and investment promotion strategies, Debapriya
Bhattacharya, a distinguished fellow of Center for Policy Dialogue
(CPD), told The New Nation on recently . He said, Bangladesh targets a
GDP growth of 8 per cent in its Seventh Five Year Plan. If the country
wants to achieve the target, the share of investment in value needs to be
accelerated to 32.5 per cent from current 28 per cent. We cannot
overcome such sluggish investment scenario unless investors are being
facilitated by planned way. A strategic plan with various fiscal
incentives for the investors is a must to gear up the investment scenario
further, he noted. Debapriya Bhattacharya further said the investors
need supportive policies along with congenial political environment for
the security and return of their investment.
Former Bangladesh Bank governor Mohammed Farashuddin at a
workshop of Economic Reporters Forum in the capital said that the

responsibility rested with the government to help boost private sector

investment, as the issue required pro-business and investment-minded
economic policies. He insisted on lowering interest rates by the private
sector banks so that investors could feel encouraged to park their fund
to propel growth in the private sector business and subsequently
contribute to the growth of the national economy.
with Nazirul Islam Nadeem.
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