Investment in the country remained stagnant though business confidence is rising, according to a survey conducted by the Bangladesh Investment Climate Fund (BICF).

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 (DCCI) auditorium yesterday.

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 per cent, medium 7 per cent and large 19 per cent — were surveyed of which 27 per cent were from manufacturing sector and 73 per cent 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. 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.

It indicated that firm performances varies by location as investment decision in Sylhet, Dhaka and Chittagong were negatively influenced while there were positive influences in Khulna, Barisal and Rajshahi.

James Crittle, the head of BICF, IFC advisory services in South Asia, said rising business confidence will create rising business environment and create jobs which will alleviate poverty.

He also underscored the need for improving business environment adding, “High confidence means more investment and more investment, more jobs.”

Panel discussant Aftab ul Islam, chairman of SME Foundation, apprehended that they would not be able to do too much in the 4th quarter as the export growth during the last quarter was barely three and half percent.

Another panelist Dr. Mustafa K Mujeri termed friendly climate and good economic governance as the key to achieve more investment.

Newage Garments Limited chairman and CEO ASM Quasem, banker and economist Mamun Rashid, Anwar Group of Industries managing director Hossain Khaled also took part in the discussion.