Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Friday, June 22, 2018 06:02:05 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Economist opines

Pol stability a must to achieve growth

Share your thought
Post a comment »
Read all () »

Continuation of the existing political stability over the next five to 10 years, lower interest rate and ensuring the security of lives and assets are a must to accelerate private investments which is essential for achieving a higher
economic growth, said a leading economist here on Sunday. "The most important precondition is not only the current political stability but also an assurance that the stability will continue for at least five to 10 years," Dr AB Mirza Azizul Islam, a former finance adviser to a caretaker government, told a post-budget discussion in the city.
He said, nobody will go for private investment as long as there is an 'uncertainty' over the political climate.
"In an ultimate analysis, the objective is to accelerate (GDP) growth, and to do that we've to accelerate private investment. I'm sure whether the budget will address all the concerns and determinants related to private investment," Aziz said.
Reducing the rate of corruption, improving the efficiency of the administration to avert delay in project implementation and lowering lending interest rate which is on the rise will have to be ensured to boost investment for achieving a higher economic growth, he said. Metropolitan Chamber of Commerce and Industry (MCCI) in collaboration with Policy Research Institute (PRI) arranged the discussion titled 'Budget 2014-2015: Views of the Business Community' at its auditorium in the city. State Minister for Finance MA Mannan, MP spoke as the chief guest at the programme held with MCCI President Rokia Afzal Rahman in the chair. PRI Executive Director Dr Ahsan H Mansur and MCCI committee member Adeeb H Khan made two presentations at the discussion.
PRI Chairman Dr Zaidi Sattar, MCCI Vice President Anis A Khan, Managing Director of AK Khan & Co Ltd Salahuddin Kasem Khan and former MCCI President M Anis Ud Dowla also spoke on the occasion.  Business leaders and prominent personalities, including UNB Chairman Amanullah Khan, were present. Mirza Aziz said the country has witnessed a rise in total investment-GDP (gross domestic product) ratio but it has been drivenby public, not private investment.
"To accelerate growth, private investment to GDP ratio has to go up substantially. To achieve a 7.3-percent GDP growth will require 33 percent of investment to GDP ratio," he said.
Explaining the determinants of boosting private investment, he said well-developed and relatively inexpensive infrastructures are an important determinant. "The budget has tried to address the problem through increased allocation for transport, energy and power."
Mirza Aziz, however, mentioned that the increased power generation has come through rental power plants which are very expensive. "We don't see any mention about the use of domestic coal in the budget statements. There's a paradox. We're going for coal-based power generation, but not using our own coals," he said.
He mentioned that delays in implementing large projects now have become a usual feature, and this is also a matter of concern. Mirza Aziz also said fiscal incentives or tax benefits will encourage private sector investment but it is not enough to boost investment. "Fiscal incentives play a role, but it plays relatively a minor role if other determinants don't work properly," said the former finance adviser.
He said, an easy access to credit with a lower interest rate on lending are a must for increasing investment. "If the interest rate isn't reduced, investment won't increase which will ultimately hamper the economic growth." Mirza Aziz also said this is not an encouraging situation for investors if the sense of insecurity over lives and property is not removed. Speaking as the chief guest, MA Mannan said the lack of confidence is the major barrier, and the government is trying to boost investors' confidence to increase private investment. "We think we're in the right direction."
He said, the government this time focused on a number of areas in the proposed budget which had remained uncovered in the past. "This can be done only by a government which is sensitive towards people's needs." The State Minister said their objective is to ensure people's welfare, and sought cooperation from all in implementing the budget.
About criticisms by the Centre for Policy Dialogue (CPD) over 7.3 percent GDP target, he said, "We can't say for sure the 7.3 percent will be achieved or you (CPD) can't say achieving the 7.3 percent growth is impossible." Mannan assured that he would convey the recommendations of the discussants to the Finance Minister for reconsideration. Rokia Afzal said, the size of this year's budget is amply big and MCCI supports that. "We look forward to a period of stability and economic prosperity."
She urged the government to take appropriate measures for the capacity building of the administrative system enabling it to implement the budget. Zaidi Sattar said, "At the end of the day, we're all consumers who have to bear the burnt of tariffs through higher prices. However, pre-budget consultations were not held with consumers.

Add Rate

News Archive

Inside The New Nation

Editorial »

Addressing the causes of people`s displacement is the real option for tackling the refugee crisis

LIKE many other countries, World Refugee Day was observed in the country on Wednesday at a time when the world's third largest refugee group Rohingya is living in the overcrowded camps in Cox's Bazar. The UNHCR reported that 68.5 million people are living in different refugee camps across the world. ...

Football »

Denmark`s Christian Eriksen is congratulated by his teammate Yussuf Yurary Poulsen after scoring the opening goal during the group C match between Denmark and Australia at the World Cup match in Samara, Russia on Thursday. Denmark, Australia match ended 1-1 draw.

Football »

Spain's Diego Costa (right) celebrates with his teammate Isco after scoring his side's opening goal during the group B match between Iran and Spain at the 2018 soccer World Cup at the Kazan Arena in Kazan, Russia, on Wednesday.

Entertainment »

Neetu to ring in her birthday with Rishi Kapoor in Paris

Neetu Kapoor will soon be turning 60 on July 8 and if the latest reports are to be believed, the actress already has special plans. Neetu Kapoor will soon be flying to Paris to ring in her birthday with husband Rishi Kapoor, son Ranbir Kapoor, daughter Riddhima Kapoor Sahni and ...

Entertainment »

Salman to kick-start the shooting schedule of Bharat on July 17

Priyanka Chopra and Salman Khan are ready to be seen together on the big screen after a decade in Bharat. The film also stars Disha Patani and is an adaptation of South Korean film, Ode to My Father. Directed by Ali Abbas Zafar, this project has been in the limelight ...

National »

SYLHET: Leaders of Bangladesh Bar Council, Sylhet District Unit greeting Finance Minister Abul Maal Abdul Muhith MP during his visit in Sylhet recently.

International »

Erdogan seeks new term with greater powers

AP, Ankara :Since he took office in 2003, President Recep Tayyip Erdogan has given a name to each stage in his consolidation of power in Turkey. First he called himself the apprentice; then the journeyman; and latterly the master. Now, he says a new five-year term would elevate him to ...

City »

City-bound passengers returning after celebrating Eid-ul-Fitr with their near and dear ones at their ancestral homes. The snap was taken from Mawaghat on Thursday.

Entertainment »

Race 3 inches towards Rs 200 cr mark

Salman Khan's film Race 3 is unstoppable. The film, which hit screens on June 15, is giving all sorts of reasons for the star cast to celebrate. The Remo D'Souza directorial had already crossed the benchmark of Rs 100 crore at the Indian box office. But interestingly, the Salman fever ...

Editorial »

Unfortunately government has no political leadership to restore peace in Chattogram Hill Tracts

THREE more activists of Parbatya Chattogram Janasanghati Samity (MN Larma) and United People's Democratic Front (Democratic) were shot dead at their homes in Rangamati and Khagrachhari districts between Friday and Sunday. Conflicts between different groups in Chattogram Hill Tracts have led to the death of at least 22 people in ...

Business & Economy »

Shibbir Mahmud, Chairman, Board of Directors of Islamic Finance and Investment Limited, presiding over its 236th meeting at its head office in the city recently. AZM Saleh, Managing Director, Rezakul Haider, Anis Salahuddin Ahmad, Vice-Chairmen, Anwar Hossain Chowdhury, EC Chairman, Md. Jahidur Rahman, Audit Committee Chairman, SM Bakhtiar Alam, Hossain Mahmud, Liaquat Hossain Moghul and KBM Moin Uddin Chisty, Directors of the company were also present.

International »

China-N Korea joint efforts to bring peace, stability in Korean peninsula, hopes Xi

Reuters, Beijing : Chinese President Xi Jinping told visiting North Korean leader Kim Jong Un on Wednesday that with the joint efforts of the two countries, the Korean peninsula will definitely be peaceful and stable, official news agency Xinhua said.Xi made the comments during a meeting at Beijing's Diaoyutai state guest ...

Football »

Putin missed Russia-Egypt match but 'happy' at win

AFP, Moscow :The Kremlin on Wednesday said Vladimir Putin did not watch Russia's surprise win over Egypt in the World Cup because he was on a plane but added that he reacted "very positively, like the whole of our country".  "Unfortunately, he did not watch the match itself. It so ...

City »

BNP Standing Committee Member Barrister Moudud Ahmed speaking at a prèss conference at the party central office in the city's Nayapalton on Wednesday in protest against his confinement by police in Noakhali.

Editorial »

Death of another prosecution witness : Too difficult to accept as an accident

NO sooner had the Eid vacation come to an end but another murder shocked us all. The decapitated body of Sumon Zahid, a witness in a war crimes case and also the son of martyred journalist Selina Parvin was found dead in the capital's Khilgaon the day before yesterday. There ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news