Economy taking off, but Dhaka traffic is terrible: Japan envoy

Bangladesh's economy is taking off showing its resilience, but the traffic jams in the city remain a problem, said Ito Naoki, ambassador of Japan to Bangladesh.

Given the Bangladesh economy's performance, Japanese investors were looking to expand their business here, the ambassador said, but expressed disappointment over the traffic jams.

"Dhaka traffic is very, very bad; terrible," he said while inaugurating the EBL Business Desk at the bank's head office in the city on Thursday.

"On the business front, I think the important thing is that we are going to have a commercial opening of MRT Line-6, the country's first metro rail system, before the end of next year.

"I do really hope that even just line-6 will ease the traffic situation here in Dhaka," he said.

Referring to a survey by the Japan External Trade Organization (JETRO), he said over 60% of Japanese companies operating in Bangladesh are looking towards expanding operations within two years.

He said Bangladesh had shown a rare example of resilience in bouncing back from the coronavirus pandemic and the World Bank has forecast 6 plus GDP growth in 2022.

"So, this economy is a really promising economy. In that sense, I think the establishment of today's Japan desk is very, very timely."

He said the Japanese special economic zone at Araihazar will be opening by the end of next year and it will be ready to help Japanese companies, investment, and manufacturing which could further progress the business partnership between the two countries.

"I think the corona pandemic doesn't seem to impact the economy in 2022. Now, the World Bank says that this fiscal year, Bangladesh will record 6.54% GDP growth. It is really amazingly high," he said.

"And the Standard Chartered Bank and IMF said, in 2026, the per capita income of Bangladesh will be $3,000. So, this is a really amazing landmark," the ambassador said, adding, "all that will guarantee the huge expansion of the domestic consumption market."

He said Japan had financed Biman's purchase of the new 787 aircraft.

"So, one expectation I have for next year is, of course, Biman will resume direct flights between Tokyo and Dhaka."

Managing Director and CEO of EBL Ali Reza Iftekhar said Japan believes in improving regional connectivity through infrastructure development. Japan has brought the same philosophy to help transform Bangladesh's infrastructure landscape and contribute to its growth journey.

The EBL CEO also said the mega projects now being implemented with the financial and technical assistance of Japan, and when completed, will surely change the global image of Bangladesh.

The EBL Japan Desk will be a one-stop banking service designed for Japanese companies and individual customers.

Seefat Jahan, focal point of EBL Japan Desk and senior manager of Communications and External Affairs, informed the audience about the email address ([email protected]) of the desk for all sorts of queries about banking products and services specially designed for Japanese companies and individual customers.

Earlier, Deputy Managing Director and Head of Corporate Banking of EBL Ahmed Shaheen gave a presentation on the products and services designed for Japanese companies.

Country Representative of JETRO Yuji Ando and representatives of several Japanese companies attended the programme.