‘Halting system loss can prevent gas price hike’

Staff Reporter Published: 15 January 2025, 05:56 PM
‘Halting system loss can prevent gas price hike’
Economic Reporters Forum organises a seminar titled ‘Investment Opportunities and Challenges’ at its office on Wednesday. – Jago News Photo

Business leaders and stakeholders at a seminar on Wednesday said that stopping the 10 per cent theft in gas supply disguised as "system loss" could negate the need for further gas price hikes. 

They suggested that the interim government is in a unique position to address this issue as it operates without the pressure of electoral considerations.

They emphasised the need for robust governance, streamlined policies, and targeted incentives to boost investment and economic growth. 

They came up with the observations at the seminar titled Investment Opportunities and Challenges organised by the Economic Reporters Forum (ERF) at its office on Wednesday.

ERF President Daulat Akhter Mala presided over the event, with the Chairman of the Investment Development Authority (BIDA), Chowdhury Ashiq Mahmud Bin Harun, as the chief guest.

Gas and VAT hike criticised

AK Azad, former FBCCI president, criticized recent increases in gas prices and VAT, stating,

"Before implementing these policies, the government should have studied their impact on the economy and public life. No discussions were held with business leaders."

He argued that halting the 10% theft in gas supply would eliminate the need for price hikes.

"The interim government, free from vote-based pressure, has the capability to address this issue effectively."

Investment challenges

Azad highlighted declining imports of goods and capital equipment, signalling a drop in overall investment. 

"In this economic climate, the consequences of gas and VAT increases need careful consideration."

Policy and infrastructure concerns

Abul Kashem Khan, former president of the Dhaka Chamber of Commerce and Industry, pointed to frequent policy changes as a barrier to investment.

"Policies are often altered through SROs to benefit specific groups. This lack of continuity hampers sustainable investment."

He called for the dismantling of corrupt systems and greater private sector involvement in policymaking to build a stable investment environment.

Mohammad Iqbal Chowdhury, CEO of Lafarge Holcim Bangladesh, noted procedural bottlenecks for new ventures.

"Securing licenses from 23-27 institutions delays progress. These hurdles must be addressed to attract investors."

Governance and security issues

Hafizur Rahman, FBCCI administrator, highlighted the risks entrepreneurs face: "Bandits dominate the stock market, and extortionists target businesses. Investment cannot thrive amid such uncertainty."

He suggested offering targeted incentives to ease the path for entrepreneurs and small businesses.

FDI and economic zones

BIDA Business Development Head Nahian Rahman Rachi discussed efforts to attract foreign direct investment (FDI), including a new "heatmap" identifying 19 priority sectors based on input from 20 institutions.

BIDA announced plans for an Investment Conference from April 7 to 10 to facilitate dialogue between Bangladeshi and foreign investors. The event will also include visits to economic zones for foreign investors.