Peter Clasen, chairman of OAV-German Asia-Pacific Business Association, told a luncheon of Bangladesh-German Chamber of Commerce and Industry (BGCCI) at Dhaka Sheraton Hotel ruling and opposition politicians appear "unaware of the harm they do to the image of Bangladesh abroad by the way they sometimes act in domestic politics".

Clasen, who has over 50 years of links with the local business community, said the image of Bangladesh in Germany and in the German business community "especially ... is heavily affected, with your country being reported to be one of the worst places to do business [in]".

"Such reputation is doing gross injustice to your country," Clasen told the luncheon.

Privatisation Commission Chairman Enam Ahmed Chowdhury, German Ambassador in Dhaka Dietrich Andreas and BGCCI President Peter E Albrich also spoke.

Long-term planning and reliability are the most important prerequisites for convincing new potential partners in Germany, Clasen told the Bangladeshi businesspersons.

On privatisation of the state-owned enterprises (SoEs), the German business leader said a new owner of a privatised SoE does not get adequate cooperation from the government when it comes to getting credits from the financial institutions and hassle-free utility connections.

He said foreign investors want assurance of regular power supply at reasonable rates for investment. "The government should fulfil the goal of bringing the entire country under power supply network by 2020 to meet the investors' need," Clasen observed.

Diversification and upgradation of the textile industry are required for sustenance after the phase-out of multi-fibre agreement in 2005, he suggested.

Clasen said the container handling capacity of Chittagong Port is absolutely inadequate. The port labour is highly indisciplined and presence of unions at the port is fuelling strikes, he added.

German Ambassador Andreas said time has come to do away with the practice of complaining of corruption and so on in Bangladesh.

According to Andreas, exports to Germany from Bangladesh increased 17 percent in first nine months of 2003 while Germany's export to Bangladesh went up 2 percent during the same time.

BGCCI President and also Managing Director of Siemens Bangladesh Ltd. Peter E Albrich said Bangladesh's economic growth rate is quite impressive.