Moody’s ‘stable’ rating to attract FDI: Mahdi

The government expects Bangladesh’s improved economic outlook, reflected in a recent assessment by global credit rating agency Moody’s, to help attract more foreign investment and create employment opportunities, Prime Minister’s Office (PMO) Spokesperson Mahdi Amin said on Wednesday.

Addressing a press conference at the PMO’s Karobi Hall, he also said the government is pursuing a seven-pronged programme covering youth empowerment, education, innovation, social protection, energy, healthcare, infrastructure and institutional governance.

Mahdi, also Prime Minister’s adviser, said the government’s recent initiatives were aimed at addressing immediate challenges while laying the foundation for a more prosperous and knowledge-based Bangladesh.
He said gas supply to industries has improved significantly since Tuesday following the recent disruption in supply.

“The Prime Minister had said that he would make the maximum effort to bring the gas supply situation back to normal as quickly as possible so that industries could resume operations and Bangladesh’s economy could maintain its potential and onward journey,” the PMO spokesperson said.

“Implementation of what the Prime Minister said started within a very short time. Gas flow has increased considerably, and we can see visible improvement in the situation. InshaAllah, this trend will continue in the coming days,” he said.

Mahdi also referred to Moody’s revision of Bangladesh’s sovereign outlook to stable from negative, while retaining the country’s long-term issuer and senior unsecured rating at B2.

He said the development will help strengthen Bangladesh’s international standing and create a more favourable environment for foreign investment and employment.

“We believe this will not only increase foreign investment in Bangladesh but also enhance the country’s international standing and help move forward employment opportunities needed to empower women and young people,” the PMO spokesperson said.

A journalist asked whether Bangladesh’s improved sovereign outlook reflected factors beyond investment and employment, including political stability, democracy and external pressures.

In reply, Mahdi said the rating also reflected the importance of an elected government, policy continuity and a more stable business environment.

He said the government’s pro-business and pro-investment policies, along with greater international engagement, were boosting confidence among investors and business leaders.

Mahdi said inflation and the rate of increase in food prices have declined compared with the same period last year, while the supply of essential food items remained relatively satisfactory.

Referring to fuel prices, he said diesel prices in Bangladesh are relatively lower than in many other countries, particularly neighbouring countries, as the government is providing subsidies to keep the burden on consumers under control.

The spokesperson said the government’s major welfare and reform measures over the past months could broadly be divided into seven areas: youth empowerment, education, information technology and innovation; people’s physical well-being and quality of life; women’s advancement, universal welfare and social protection; environment-friendly energy and climate-resilient industrialisation; modern healthcare, infrastructure and public health; connectivity and traffic management; and institutional governance, public diplomacy and foreign relations.