Businessmen apprise US delegation of dollar crisis, law and order

Voicing concerns about ongoing unrest in the industrial sector and the overall law and order situation, business leaders said increased communication between the government and the business community is essential to restore normalcy in trade and commerce.

Local heads of various American companies operating in Bangladesh expressed this sentiment to a visiting US government delegation.

Assistant Secretary for International Finance at the US Department of the Treasury, Brent Neiman, led the US delegation.

The meeting took place on Saturday morning at the residence of the US ambassador in Gulshan, Dhaka.

The nearly two-and-a-half-hour discussion covered a range of topics including Bangladesh's economic conditions, investment climate, banking and financial sectors, and law and order.

The meeting also addressed concerns related to the profits and dues owed by American business entities to the government.

Representatives from several major American companies, including Chevron, MetLife, Microsoft, Coca-Cola, Citibank NA, Mastercard, and General Electric (GE), participated in the meeting. Also present were members of the visiting delegation, including Helen LaFave, Charge d’Affaires at the US embassy in Dhaka.

According to multiple business representatives who attended the meeting, concerns were raised about various aspects of business operations in Bangladesh. Most expressed apprehensions about the current law and order situation.

They highlighted the absence of business representatives in the interim government and stressed the need for enhanced communication between the government and the business community.

President of the American Chamber of Commerce (AmCham) and managing director of Expeditors Bangladesh, Syed Ershad Ahmed, told Prothom Alo that the US delegation was primarily interested in understanding the business environment in Bangladesh.

They sought to identify existing problems and explore potential solutions, as well as to assess whether conditions for business have improved under the current circumstances, he added.

Ahmed noted that many business leaders highlighted improvements in customs procedures since the interim government assumed office, though they also pointed out the need for further improvements in law and order.

Specifically, they advocated for the activation of industrial police and better handling of cargo at ports. Additionally, the issue of a dollar shortage was discussed.

During the meeting, US business representatives identified issues such as foreign transaction imbalances and shortcomings in governance within the banking sector as obstacles to business.

They also pointed to disparities and harassment within the tax system as barriers to investment and commerce.

The US delegation was informed that Bangladesh’s tax system disproportionately burdens those who comply with all regulations, leading to increased tax pressures on multinational companies adhering to the law. As a result, there is a call for reform in the tax system and improved coordination among government departments to boost both domestic and foreign investment.

The delegation was also apprised of the difficulties faced by MetLife, an American insurance company, which has been unable to remit its profits to the US for over four years.

Additionally, the delegation was briefed on Chevron’s outstanding dues owed by the government. Meta, the parent company of Facebook and WhatsApp, also highlighted issues related to remitting profits from Bangladesh, noting that such situations send the wrong message to foreign investors.

According to multiple sources, since 2019, MetLife has been unable to transfer its profits due to the dollar shortage and other issues, resulting in substantial amounts of money being trapped in Bangladesh.

Similarly, Chevron has faced long-standing delays in receiving its dues from the government.

Following the meeting, a photo was shared on the US embassy’s official Facebook page. The post highlighted that American companies in sectors ranging from energy security to data centers and transportation are making positive contributions to Bangladesh's economy. It emphasized that proper economic reforms could unlock potential for US private sector involvement in advancing Bangladesh's development through trade and investment.