In view of Bangladesh's foreign reserve crisis, the Centre for Policy Dialogue (CPD) recently urged the central bank to establish a dedicated local currency conversion channel for renewable energy investors, ensuring timely conversion of returns from BDT to USD.
The private think tank also called upon the government to continue pursuing China's proposed loan assistance of US$ 5 billion in Chinese currency to mitigate foreign reserve pressures and further strengthen investor confidence.
CPD made the call at a dialogue titled "Overseas Investment in the Renewable Energy Sector: How to Attract Chinese Investment in Bangladesh?" at a hotel in the city.
Md Abdur Rahman Khan, chairman of the National Board of Revenue (NBR), attended the event as the special guest while Chowdhury Liakat Ali, director (SFD), Sustainable Finance Department, Bangladesh Bank, attended as the guest of honor.
Dr Fahmida Khatun, executive director of CPD, chaired the session while Dr Khondaker Golam Moazzem, research director of CPD, delivered the keynote presentation.
In his speech, Moazzem said Bangladesh should ensure tax incentives, subsidies, and a favorable regulatory environment for green bond markets and venture capital investments to attract foreign investment from different countries, especially from China.
"Tax incentives, subsidies, and a favorable regulatory environment for green bond markets and venture capital investments must be provided. Simplifying administrative processes and reducing bureaucratic barriers to lower the cost of accessing finance will make the investment environment more attractive," he added.
He suggested that Bangladesh Bank and local private banks should establish state-backed green banks or dedicated renewable energy funds to offer lower-cost financing and accelerate renewable energy projects.
