Recession feared amid sluggish dev spending, investment

Planning Adviser Dr Wahiduddin Mahmud on Monday apprehended that the country might suffer an economic recession if the current situation persisted with no new private investment and almost stagnant public sector development expenditure, reports UNB.

"The private sector investors are not injecting new investment and the public sector development expenditure is not increasing on the other. So, it will create an economic recession," he said.

The Adviser made the statement while briefing reporters regarding the Ecnec meeting at NEC Auditorium.

Chief Adviser Prof Muhammad Yunus chaired the meeting held at the NEC conference room.

The Adviser said that the private sector was not showing any interest in investment and the interest rate has been increased a lot. "As a result the entrepreneurs are not showing any interest regarding new investment," he said.

The adviser said that the interim government has taken a decision in principle that to the end of this fiscal year it will try the projects that have get clearance from the government will be implemented as quick as possible. "If the projects are good and the new project directors have been appointed, we are now at the stage of taking coordination of the principle," he added.

"By this", he said, "We will be able to speed up our project implementation rate. This is urgently needed as currently there is a stagnant situation prevailing in the country in terms of investment from the private sector due to the instability, insecurity and political uncertainty and indiscipline."

He also admitted that to stop wastage, corruption and cut short the unnecessary projects, the annual development programme implementation rate has been slowed down to 8 percent in the first four months of the current fiscal. "This is true that the implementation of the development projects is going on very slowly," he said.

He mentioned that the interim government will scrutinise the projects before giving final nod.

The Planning Adviser said that it is the good scope for the political government to formulate any new project at any time for any constituency.

"But for us, we do not have any constituency, our time is short and obviously we do not have any tendency like that, there is no question about that," Dr Wahiduddin added.

He mentioned that the advisory council will sit again to discuss releasing some innovative new dimensional development projects for human resource development and educational development.

Dr Wahiduddin mentioned that there is a stagnant situation in the economy due to the inflation and price hike of essentials. "There is no scope to deny that," he added.

He put emphasis on expansion of economic activities for the sake of employment.

The adviser said that while political activities of the country will gear up centering the national election the economy will be vibrant as the election related activities will start.

"We are thinking that very soon the spree of election related activities will be started," he said.