"Dialogue is part and parcel of an effective reform process. As such, lifting the ban on politics is absolutely critical as a kick start to positive change in Bangladesh. The arbitrary application of the ban has been a concern, both domestically and internationally," she said.

Geeta Pasi added lifting the ban does not mean ushering back the culture of violent partisan street politics. "It would signal that there is room for a new, constructive political discourse, and help guarantee that this new breeze of reform can permeate the political parties," she said.

The US charge d' affaires was addressing the monthly luncheon meeting of American Chamber of Commerce in Bangladesh (AmCham).

"To back up our calls for a robust political and electoral process, we are providing assistance in a variety of key areas: to increase the capacity of the judiciary, improve local governance, strengthen civil society, and help promote a free and professional media - all essential elements in a functioning democracy," Geeta Pasi said.

She viewed that corruption is an insidious disease that saps a nation of its vitality and promise, and it has no place in a democracy.

The US charge d' affaires said to make a real break with the past, and to earn people's confidence, the government needs to ensure corruption cases are prosecuted fairly, transparently, and without selectivity or political motivation.

"It is crucial that all those accused are accorded the full range of their legal and constitutional rights," Geeta Pasi added.

"This is a time of great opportunity in Bangladesh's history - the political, social and economic investments you make today are the venture capital of a new future for Bangladesh that must include a clear and unwavering focus on democratic values," she said.

The US chargé d' affaires said reports of deaths in custody and allegations of mistreatment of detainees, 'secret' detentions, and other breaches of due process raise concerns both here and abroad.

Citing Petrobangla-Chevron dispute, she said major investment partners of Bangladesh are being treated in a manner inconsistent with international norms and which signals other foreign investors to stay away.

"Bangladesh must respect contracts and international standards for resolving disputes in order to continue to attract foreign investment," Geeta Pasi suggested.

The US chargé d' affaires found that Bangladesh has already proven itself to be a world-class competitor in the readymade garments industry.

The dramatic improvements at Chittagong Port, in terms of pricing, transparency and efficiency are one such example of Bangladesh taking positive steps to control its own economic future, she said.

Geeta Pasi said the US is reviewing a petition from the AFL-CIO, an American labour organisation, requesting that Bangladesh's preferential trade status be curtailed because of inadequate follow-through in implementing the legislation to protect workers' rights.

"Upholding international labour rights standards, then, must be of vital importance to both governments and private businesses," she said.

In his welcome speech, AmCham President Syed Ershad Ahmed urged the government to implement the Foreign Private Investment Promotion and Protection Act properly to ensure a congenial environment for the foreign investors.