Militant attacks deterrent to foreign investments, says European Union envoy

European Union Ambassador to Bangladesh Pierre Mayaudon has said militant attacks are a factor behind Bangladesh’s failure to attract foreign investments ‘in a big way’.

Staff Correspondentbdnews24.com
Published : 12 May 2016, 11:37 AM
Updated : 12 May 2016, 04:00 PM

“Bangladesh has many assets for attracting foreign investments that you have eloquently highlighted… but foreign investments are not yet coming to Bangladesh in a big way,” he said on Thursday.

Speaking at a discussion at the commerce ministry, Mayaudon said, “Figures do not always reflect this reality due to some reinvestments by foreign companies already based in Bangladesh.

“But genuine new FDI (foreign director investment) fall short of expectations. Why such a paradox?

He said political uncertainties together with a growing militancy now manifesting itself in ‘savage’ and unpunished assassinations were often cited to explain the stagnation.

Writer Avijit was hacked to death outside the Ekushey Book Fair last year. Several bloggers and online activists and a publisher have been murdered in a similar fashion since then.

Italian national Cesare Tavella was killed in Dhaka, Japanese citizen Kunio Hoshi in Rangpur and several priests in different parts of the country.

Middle East-based militant outfit Islamic State claimed responsibility for several of the attacks. But the government rejected the claim, saying home-grown militants were carrying out the attacks.

The European Union envoy also saw a shortage of infrastructure as a deterrent to investment.

“Shortage of energy and limited infrastructures are also frequently mentioned to explain why foreign investors think twice before coming to Bangladesh,” he said.

Bangladesh has seen stagnation in investment for the past several years.

But the situation was expected to improve this financial year with several big infrastructure projects getting under way.

Bangladesh registered foreign investment amounting to $1.63 billion in the first nine months of the current FY, beginning in July, against $1.34 billion in the previous corresponding period.