Experts at a webinar on Sunday suggested to create an alternative source of financing for private sector development, side by side long term vibrant, innovative and structured infrastructure finance and development of bond market.
They made the call at the webinar on "Bridging the infrastructure gap through credit solutions in Bangladesh" jointly organized by Ministry of Commerce and Dhaka Chamber of Commerce and Industry (DCCI) under the Bangladesh Trade and Investment Summit 2021, said a press release.
Chief Guest of the session Salman Fazlur Rahman, Private Industry and Investment Adviser to the Prime Minister, said that government's main job is to play a role of facilitator for the private sector to act properly.
The present government has opened up almost all the sectors like power, airlines, televisions, mobile, banking, insurance, universities to be operated by the infrastructure, he added.
He said "The per capita income of Bangladesh increased to US$2,227. For long term sustainable infrastructure financing, we need to think of more strategies to go the next level."
However, he said infrastructure financing has been improved in Bangladesh.
"All kinds of financing have been improved in Bangladesh, he added. But what we need is to create a vibrant structured bond market in our country," he said.
Special Guest Md Nojibur Rahman, Chairman, Capital Market Stabilisation Fund and former Principal Secretary to the Prime Minister, said that the boom of infrastructure development in Bangladesh is going on.
"We need capital and long term finance. Domestic finance is not enough for that. Guarantco is doing well in this regard. Bangladesh Bank and regulatory bodies are very supportive now and this is a positive sign for the private sector," he added.
DCCI President Rizwan Rahman said Infrastructure is critical enabler of compounding industrialization and economic development.
Substantial investment in infrastructure is needed to accelerate trade and economic growth, he added.
To improve infrastructural competitiveness, he said, investment is being made in wide-ranging infrastructure projects though they are relatively inadequate.
"Our infrastructure development has been heavily reliant on public sector financing which hovers around 4 percent to GDP whereas most of our neighboring economies maintain it within 5 percent to 10 percent. Lack of long-term and alternative financing solutions holds back the private sector role in the infrastructure development," he added.