Achieving 7pc growth tough, but achievable : Muhith

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FE Report Finance Minister A M A Muhith Wednesday said it would be difficult to achieve the projected 7.0 per cent economic growth this fiscal year (FY), considering the country's prevailing economic scenario. Yet, it is achievable if proper investment can be made for the development of the country as per the target in the newly-prepared sixth five-year plan (SFYP), he said at its unveiling ceremony. The General Economic Division (GED) of the Planning Commission organised the programme, where among others, Planning Minister A K Khandker and economist Prof Wahiduddin Mahmud were present. "Earlier I said about the difficulty of achieving 7.0 per cent gross domestic product growth, considering the current economic scenario. But I did not say that it is not achievable," Mr Muhith said. A week ago, the finance minister expressed his doubt over attaining the 7.0 per cent economic growth in the current fiscal. Later, Bangladesh Bank Governor Atiur Rahman expressed his confidence about attaining the target. Mr Muhith said: "Since the country's domestic resource mobilisation rate is low, foreign direct investment is unsatisfactory, foreign trade is under pressure ... I had said about the difficulty of realising 7.0 per cent growth." "Bangladesh's economy is in an ideal condition, as our image in the world is good. A message has already gone to the world that Bangladesh is a booming economy. It will support us to attain the targets," the finance minister said. If we can invest Tk 3.0 trillion fund through the public sector, the economy will grow rightly during the five-year implementation period of the country's development guideline, Muhith said. The GED has framed the SFYP, where some Tk 13.47 trillion investment plan has been taken to achieve 8.0 per cent growth and cut the poverty to 22 per cent in its final implementation year. Senior economist Professor Wahiduddin Mahmud said it has been acknowledged through the SFYP that there is no alternative of a medium-term plan for a country even in the era of open market economy. He said: "Accommodating the private sector and open market economy, the public sector has scope to do many things for the growth of the country, which has been reflected at the plan." A K Khandker said the SFYP will assist Bangladesh to go forward for attaining a middle-income country status by the year 2021. The government's highest economic policy-making body - National Economic Council (NEC) - has approved the SFYP in June. The plan targets boosting the country's per capita income to US$1,000 by 2015 and achieving cent per cent literacy rate by the fiscal 2014-15. Out of the required Tk 13.47 trillion investment plan in the SFYP, Tk 12.21 trillion or 90.7 per cent will be mobilised from the domestic sources, and the rest 9.30 per cent or Tk 1.26 trillion from the external sources.