Next govt to face 16 challenges on economic front

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FE Report
Finance Adviser Mirza Azizul Islam has identified 16 challenges including global financial downturn and requirement of higher investment in energy sector facing the next elected government.
The others challenges are: strengthening of monitoring system for efficient implementation of the annual development programmes, continuation of the social safety-net programmes, mobilising more domestic resources through expanding income tax and VAT and maintaining cautious approach to ensure the budget deficit within the target.
He was briefing journalists on "the sate of Bangladesh's latest economy: achievement and challenges" in Dhaka Wednesday.
The adviser, however, said present status of overall economy and economic indicators during the last two years under the present caretaker government are in good shape.
UNB adds: Dr Mirza said he would have been happy had he been able to pull down the inflation to 3-4 percent and push up the economic growth to 7-8 percent during the last two years of the caretaker government.
He, however, expressed satisfaction over the success that the inflation has been below the level of the neighbouring countries and the GDP declined much less than other countries in view of the current global situation and three natural disasters at home last year.
"The success and failure are relative terms," said the Finance Adviser, replying to a question at a press conference at National Economic Council (NEC) auditorium, marking the release of a document titled "Recent Economic Situation of Bangladesh: Achievement and Challenges".
Bangladesh Bank Governor Dr Salehuddin Ahmed, Finance Secretary Dr Mohammed Tareque, NBR Chairman Muhammad Abdul Mazid, Planning Secretary Jafar Ahmed Chowdhury and ERD Secretary Md. Mosharraf Hossain Bhuiyan were present.
Dr Aziz said the country's economy has got a strong foundation which, he believes, would not plunge below 6 percent level during the current fiscal year despite the global financial crisis.
If the global recession lingers and deepens, he said, the economy would be affected posing 16-point challenges for the economy that will have to be dealt with by the next governments.
Replying to a question, Dr Aziz said the challenges have been recognised in both the election manifestos of the two major political parties while there is no difference between the political parties and the caretaker government on inter-sectoral priority.
"We feel a bit happy that we've not done anything that differs with public representatives," he said.
In a supplementary, the Finance Adviser of the caretaker government said he enjoys facing challenges and, in that sense, economic management of a country like Bangladesh is a challenge.
"I've tried my best as per my conscience and aided by my able colleagues on the dais and who are not. Their cooperation was a great source of enjoyment (and inspiration)," said Dr Aziz, whose days in the caretaker government are dwindling fast as the nation goes to polls.
He would not say the government has locked in a conflict with the International Monetary Fund (IMF), but said there were differences of opinion on issues like contractionary monetary policy.
"The issue has been solved through discussions as they came around our argument against contractionary policy," he added.
Turning down the apprehension that the external sector would suffer a setback due to the global recession, the Finance Adviser said: "There is no reason to be panicked until June next year."
He said the export grew by 27 percent to around US$ 1.3 billion during the July-November period of the current fiscal year compared to the same period the last fiscal year, while remittance inflow increased by 34 percent during July-October period.
Providing the latest information, he said the country received remittance of US$ 768 million in November this year compared to US$ 648 million in the previous month.