The Asian Development Bank (ADB) has identified a huge subsidy on energy products, unrest in garment industry, power crisis and possible political instability centering the next general elections as major challenges facing the country. On Sunday the ADB released Bangladesh Quarterly Economic Update that suggested the government to withdraw all kinds of energy subsidy gradually to allow the national economy and individual consumers to adapt to higher energy prices.
In another development the US Ambassador in Dhaka Patricia Butenis said on Sunday that the suspension of Tata's investment proposal, taking discriminatory measures against foreign freight forwarders and PDB's move to unilaterally change contracts with power producers will discourage potential foreign investors.
Butenis was speaking as guest of honor at the monthly luncheon meeting of the Foreign Investors' Chamber of Commerce & Industry (FICCI) in Dhaka. Referring to Tata's investment proposal in Bangladesh, she said few investors can afford to wait years for governments to make decisions on their proposals.