The country is in dire need for investment in the industrial and infrastructural sectors. The government has constantly been asking local and foreign entrepreneurs to invest in the country. It is also claimed that an investment-friendly environment has been created. But to no avail; none is responding to the call in a conspicuous manner. The national economy is now passing through a crisis period of investment. A huge amount of money is sitting idle in the vaults of the banks; banks are also ready to sanction loan but none is seeking loan.

According to a news story in a Bangla daily, the amount of idle money has reached Taka 720 billion mark. But as prospective investors do not show interest in taking loan the banks cannot disburse the money. This surplus liquidity has rather turned into a liability for the banks. The situation has reached a near-crisis point when the banks had to slash interest rates to discourage deposit. It was just some days ago that the banks had to count about 15 percent interest to collect money in face of liquidity crisis but now they have reduced interest rates to as low as nine percent. But downward trend does not stop there; along with reducing interest rates against deposit, banks will have to bring down the same against loan. The situation has led to a fall in the profit of the banks which again has relegated the banking sector to a critical juncture. Downfall in import business has also contributed to the crisis. Experts have reportedly termed the situation as the strongest indicator of investment crisis.

The prevailing volatile political situation, severe crises of power and gas and, following several scams in the banking sector recently, overcautious steps of the banks in disbursing loan have been identified as the major reasons behind this accumulation of surplus money and alarming fall in investment. Under the prevailing political uncertainty, entrepreneurs are worried about the safety of whatever investment they have made. Naturally, they are very much cautious about taking further risk. This reluctance to investment has brought industrialisation and generation of employment to a stagnant position.

Business communities cannot be blamed if they shy away from investment under the prevailing situation. It is the political uncertainty that has to be held responsible for sluggish investment trend and the crisis in the banking sector. Political crisis is behind the investment crisis. So, to encourage investment, the political stalemate should first be resolved. But given the uncompromising stanches of the political warriors, solution of the political crisis does not seem to be an easy and immediate possibility.