Eliminating the 10 percent gas theft disguised as “system loss” could avert the need for gas price hikes, speakers argued at a seminar in Dhaka on Wednesday.
Former FBCCI President AK Azad criticized the government’s decision to raise gas prices and VAT without assessing their economic and social impact or consulting stakeholders.
“If the 10 percent theft labeled as system loss in gas supply is stopped, there would be no need for further price hikes,” Azad said. He also noted that the current interim government, being unelected, is well-positioned to address these issues without voter pressure.
The seminar, titled Investment Prospects and Challenges, was organized by the Economic Reporters’ Forum (ERF) at its Paltan office. ERF President Daulat Akter Mala presided over the event, with Bangladesh Investment Development Authority (BIDA) Chairman Chowdhury Ashiq Mahmud Bin Harun attending as the chief guest.
Other notable speakers included FBCCI Administrator Hafizur Rahman, former DCCI President Abul Kashem Khan, and LafargeHolcim Bangladesh CEO Mohammad Iqbal Chowdhury.
Azad highlighted the adverse impact of rising gas prices and VAT amid slowing investments, declining exports, and reduced imports of capital machinery. “The previous government also promised uninterrupted gas supply in exchange for price hikes but failed to deliver,” he said.
BIDA Chairman Harun assured that the VAT issue would be discussed with the NBR chairman. On gas supply, he stressed the importance of prioritizing industrial needs, citing Malaysia’s policy of allocating 70 percent of domestically produced gas to industries. He suggested handing over inactive state-owned factories to private investors to address the crisis.
Former DCCI President Abul Kashem Khan identified policy inconsistency and frequent changes via SROs as major obstacles to investment growth. He urged institutional reforms to curb corruption and foster a sustainable investment climate.
LafargeHolcim CEO Mohammad Iqbal Chowdhury highlighted the challenges faced by existing investors, including excessive red tape, such as the need for 23-27 licenses for new ventures. He called for improved ease of doing business to attract and retain investment.
FBCCI Administrator Hafizur Rahman expressed concerns about uncertainty in sectors like the stock market and retail, citing malpractice and extortion. He proposed minor tax incentives to reduce financial strain and promote growth.
At the event, BIDA announced plans to host an investment summit from April 7 to 10, aiming to connect Bangladeshi businesses with international investors. Arrangements will also be made for foreign investors to visit various economic zones across the country.
