Investment in the country remained stagnant though business confidence is rising, according to a survey conducted by the Bangladesh Investment Climate Fund.
The summary of the survey was presented at a programme on ‘IFC-BICF Business Confidence Survey Highlights 2009: A Reflection on Business Survey’ at the Dhaka Chamber of Commerce and Industry auditorium Thursday.
It revealed that investment remained stagnant but profit and employment in terms of business confidence index is rising in the current (October-December) quarter.
Some 778 firms representing–small 74%, medium 7% and large 19%–were surveyed of which 27% were from manufacturing sector and 73% from services sector.
Eminent economist Prof Wahiduddin Mahmood said there is stagnation in investment although the foreign reserve is increasing. Confidence is an important factor for business and it has a psychological aspect as well.
‘In terms of performance, there was stagnation in the present and last quarter. The next quarter seems to be psychological turnaround and have better expectations in future,’ he said.
Commerce minister Faruk Khan speaking as chief guest at the function predicted bank interest rate will come down to a single digit by 2014 before they hand over power to the next elected government.
But, he said, the interest on deposits and the level of pension to retired personnel will remain at high.
Khan viewed that things are getting better for the government. It succeeded in protecting country’s economy from the impacts of the global meltdown.
He informed that they are working on infrastructure and also to improve the situation of gas and power supply. ‘We have been pressing hard. Yesterday (Wednesday) a power plant of 150MW was approved.’
About the traffic jam which is causing wastage of lot of time and energy, the minister said the government has taken steps to introduce elevated highway, monorail, tube, deep sea port projects.
He also said that the political commitment of the government is very clear. Extortionists are not part of the government.
The government is absolutely against ‘crossfire’ by the law enforcers, he added.

Aminur Rahman, investment policy officer of BICF, presented the highlights of the survey.