Tuesday, 25 January, 2022

Country badly in need of private investment

Country badly in need of private investment

That the private sector of the economy is crucial for taking a country forward is such a universally recognised truth that it hardly needs to be reemphasised. This pivotal role played by private sector has been surging ahead since the advent of private property in human society. The reason behind the reiteration of the fact is that private sector potentials in Bangladesh are yet to unfurl to the best possible extent. 

Like in every other country, Bangladesh economy also keeps balance and walks on two legs – the public and the private sectors. Those need to be developed in a balanced manner; lopsided growth of one with the other malnourished will have crippling effect on the overall economic foundation of the country and will ultimately lead to its collapse. The relationship between these two is that the public sector works as a facilitator of industrial growth providing private sector with necessary infrastructural bases like power and energy, physical and digital communication network, export-import facilities, and financial and policy support. Creation of investment-friendly environment and setting up of industrial parks and economic zones are parts of such public sector initiatives.

However, public sector investment is neither mainly for profit making, nor can it indulge in commodity production and trading. It is almost an exclusive arena of the private sector. The role of private sector is crucial for an economy. The private sector not only produces things that modern civilisation needs but also generates employment opportunities for the burgeoning workforce. Private sector enterprises such as micro, small and mid-size enterprises serve as engines of industrial growth by generating investable surplus and employing the highest number of workers. Private entrepreneurs should therefore come forward in a big way to utilise the favourable investment climate and help the fast growing national economy go faster.

But only domestic private sector ventures without foreign investment will not create an ideal situation for sustainable growth of the economy. Domestic private sector investment has a limit in a relatively weaker economy. Foreign direct investment is obligatory not only to solve the problem of capital crunch but also to grab latest technology. That is why Bangladesh is making every effort to woo FDI and has turned the country into one of the topmost investment destinations. It is hoped that Prime Minister Sheikh Hasina’s call for FDI will get positive response from global investors.