As reported by this daily on Saturday the Law Commission has placed a report recommending amending the ‘Arbitration Act, 2001’ in order to shun the loopholes in the existing law. Reportedly, the amendment move to the law has been taken to gain the confidence of domestic and foreign investors that will help boost inflow of Foreign Direct Investment (FDI) in Bangladesh through resolving commercial disputes rapidly.
Foreign direct investment (FDI), the bedrock of Bangladesh’s economic growth, is considered an important motivator of economic development and a principal avenue for the development finance. Over the last 10 years, FDI has been playing an essential role in maintaining the tempo of the current economic development of Bangladesh.
Necessary steps should be taken to ensure
better business facilities alongside market
diversification to garner more FDI
It is good to note that considering the country’s prevailing investment-friendly policies and overall development, foreign companies are showing their zeal to invest in Bangladesh. Therefore, we need to gear up efforts and devise necessary initiatives to attract more foreign investments. Following the other Asian countries which have been able to attract massive FDI, Bangladesh should take immediate steps to develop more infrastructures, build more skilled workforce, improve connectivity and encourage high-tech for a sustainable economic growth.
FDI has immensely contributed to reinforcing foreign reserves, creating new job opportunities and increasing labour skills in recent times. Needless to say, all these are the consequences of the government’s earnest endeavours and various time-befitting policies to attract investors and to create a congenial atmosphere for fuelling the FDI inflow. It is worth mentioning that the incumbent government pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law and duty-free import of raw materials.
Though the FDI has been increasing over the years, experts say that yet there is room for further investment in the coming days, especially in the post-corona era. Hence, necessary steps should be taken to ensure better business facilities alongside market diversification to garner more FDI. Last but not least, business-friendly environment, taxation reform and long-term policy are needed to boost FDI inflow.