Elected govt needed to revive economy

The sooner the country returns to a democratic process, the better it is for the economy, said top industrialist Ahsan Khan Chowdhury.

"Businesses will do better [under an elected government]," Ahsan Khan Chowdhury, chairman and chief executive director of PRAN-RFL Group, told The Daily Star in an interview recently.

Pran-RFL wants to invest and expand its business but the sprawling conglomerate, whose turnover is to the tune of Tk 30,000 crore, cannot do so without a stable political and economic environment.

"Because, the political and economic situation highly influences such plans. If there is hartal here today or worsening law and order, I cannot do anything even if I want."

Unrest among people will subside under a democratically elected government.

"If we can do so and create a mentality of constructive discussion, our country will advance fast," said Chowdhury, who employs about 145,000 people.

He urged policymakers to improve the law and order situation so that normal business and economic activities run smoothly.

Chowdhury, however, said the interim government must succeed if the country is to move forward.

If the law and order situation returns to normal, entrepreneurs will be able to pay attention to their businesses and focus on investment and job creation needed to rejuvenate the economy, which has been facing headwinds for more than two years because of depleting foreign exchange reserves and high inflation.

Businesspeople should not run after politics, according to Chowdhury, who looks after 32 factories in Bangladesh.

"Let's not waste our time on politics and let the politicians do their job. For me, my business is my politics. My politics is how I can make PRAN-RFL the best company in the world. But political and economic situations influence my decision to do so."

To encourage investment, the government should make rules and procedures easy for investors to comply with, he said, citing the cumbersome process to get trade licences from city corporations and factory and environmental clearance from agencies.

"We need to change our total mindset. We will reap no benefit of establishing a one-stop service window unless we ease the business processes."

Bangladesh is competing with India, Vietnam and Cambodia for foreign investment, so the country needs a competitive edge. So the one-stop service window must be made world-class.

"You see industrialisation is taking place in Dubai even though they do not have any comparative advantage. They have made the business processes so easy that investors from Africa and Europe are going there. But we are failing to attract investors."

Bangladesh can become the best place for business if the processes are eased.

"We can advance quickly if our political mindset, business mindset, and bureaucrats are aligned together."

Employment generation should be the topmost national agenda, Chowdhury said, adding that the PRAN-RFL Group aims to create 100,000 additional employment by investing in the labour-intensive sectors, especially those that would exit from China.

"We have seen that footwear, bag making, small electric appliances and home appliances will be forced to leave China. Our job will be to see how we can take that opportunity."

Chowdhury lauded the role of the banking sector in supporting entrepreneurs.

Organisations such as PRAN-RFL Group might not have grown were it not for the funding from banks.

"Our banking sector has given birth to many entrepreneurs. When we talk about the creation of oligarchs, we should also remember that numerous entrepreneurs have been created because of this sector."

In the '90s, no bank other than the then-Bangladesh Shilpa Bank would provide loans to the industrial sector. Today, every bank finances industries.

"I think PRAN-RFL is the discovery of Bangladesh's banking sector. We have grown and repaid loans timely. No bank in Bangladesh can say it has dues to the PRAN-RFL. We have borrowed, repaid on time; and sought more loans from the banks for doing business and not for buying cars, homes or to siphon money abroad."