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Professor Dr Mustafizur Rahman, distinguished fellow of the Center for Policy Dialogue (CPD), has expressed concern over inflow of foreign direct investment (FDI) in Bangladesh due to the current tension between India and Pakistan.
If a war breaks out, India's military spending will rise, potentially affecting Bangladesh's existing trade and tariff privileges in India, he said, addressing a debate competition in the city's FDC premises on Saturday.
Debate for Democracy organised the event The Shadow Parliament on "Prospects and Challenges of Foreign Investment", presided over by DfD Chairperson Hassan Ahmed Chowdhury Kiron.
Professor Mustafiz stressed the need for holding the general election within the promised timeframe to overcome political uncertainties that affect investment inflow.
Although the recent investment summit has created potential for foreign investment, actual commitments were not very significant, he said.
"The hope expressed at the summit to elevate Bangladesh to Singapore's level within the next 10 years is practically unrealistic," he added.
In the past, many unrealistic investment figures were presented. Although the Seventh Five-Year Plan projected US$33 billion in FDI, the actual inflow was only $11 billion during the FYP period.
Vietnam currently has $360 billion in FDI, whereas Bangladesh has only $22 billion.
In his speech, Mr. Kiron said Bangladesh's economy is now passing through a transitional period.
About the investment summit, Mr Kiron said that similar lofty stories were told, often based on false or manipulated data, during the past Awami League government, portraying Bangladesh as an ideal state like Thailand or Singapore which was unrealistic.
A similar optimism has been reiterated at the recent investment summit, he added.
"To reach Singapore's level in 10 years, Bangladesh would require an annual GDP growth rate of 33%. According to the World Bank, the current GDP growth rate is only 3.3%. We must realise that investment commitments and ground reality are not the same."
Returns on assets from investment in Bangladesh are much lower compared to other countries, he said, adding that in this regard, Bangladesh lags behind India, Nepal, Bhutan, Sri Lanka, and Pakistan.
In the Shadow Parliament, Eden Mohila College debaters beat the team from Dhaka College.
The judges were Professor Abu Muhammad Rais, Dr. S.M. Morshed, journalist Mainul Alam, journalist Doulot Akter Mala, and journalist Zakir Hossain. After the competition, the participating teams were awarded with trophies, crests, and certificates.
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