BD needs investment hike to attain targeted growth
FE Report | Thursday, 10 March 2011
FE Report
World Bank lead economist in Bangladesh Sanjay Kathuria said Wednesday the country needs to raise its investment to 32 per cent of the gross domestic product (GDP) to achieve the level of growth the government aims for the coming years. Mr. Kathuria said Bangladesh has so far increased domestic investment to 27 per cent of its GDP but still needs to pump in more to attain seven per cent annual growth the present government has targetted from 2011-12 fiscal year. He appreciated Bangladesh's macro-economic performance despite facing big constraints such as rickety infrastructure, acute crisis of gas and power and lack of skilled human resources. The WB lead economist praised the government's successes in the energy sector, especially in setting up power plants through public-private partnership (PPP). He was speaking at a dialogue between the World Bank officials including its South Asian director Ernesto May and the leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the chamber building in Dhaka. Mr. May stressed on frequent dialogues with Bangladeshi business people, saying the talks can find possible areas of cooperation, which can boost the economy. "This kind of dialogue will help make a better sense about the country. We can find possible areas of cooperation through continuous dialogue," May told the FBCCI leaders in the city. The FBCCI held the meeting with the visiting WB team to discuss the present state of private investment scenario, impacts of inflation, monetary policy and tax reforms at its conference room. FBCCI president AK Azad chaired the meeting. May said the development lender is closely engaged with Bangladesh and would expand its investment covering more areas to spur the country's economic growth and reduce poverty. FBCCI leaders, however, asked the Washington-based bank to scale up its investment for the Public Private Partnership (PPP) ventures, especially in sectors which have high growth potentials and can create millions of jobs. They sought large-scale WB fund for infrastructure, connectivity, special economic zones and industrial parks to boost Bangladesh economy. FBCCI directors briefed the delegation about the challenges they are facing and the potentials they have in their respective sectors. Giving a brief overview of the country's current economic situation, AK Azad said Bangladesh needs at least US$ 28 billion investment to achieve 8.0 per cent GDP growth by 2013. He said the FBCCI represents 285 associations and 68 chambers across the country and urged the WB to extend support to industrial associations in rural districts.
World Bank lead economist in Bangladesh Sanjay Kathuria said Wednesday the country needs to raise its investment to 32 per cent of the gross domestic product (GDP) to achieve the level of growth the government aims for the coming years. Mr. Kathuria said Bangladesh has so far increased domestic investment to 27 per cent of its GDP but still needs to pump in more to attain seven per cent annual growth the present government has targetted from 2011-12 fiscal year. He appreciated Bangladesh's macro-economic performance despite facing big constraints such as rickety infrastructure, acute crisis of gas and power and lack of skilled human resources. The WB lead economist praised the government's successes in the energy sector, especially in setting up power plants through public-private partnership (PPP). He was speaking at a dialogue between the World Bank officials including its South Asian director Ernesto May and the leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the chamber building in Dhaka. Mr. May stressed on frequent dialogues with Bangladeshi business people, saying the talks can find possible areas of cooperation, which can boost the economy. "This kind of dialogue will help make a better sense about the country. We can find possible areas of cooperation through continuous dialogue," May told the FBCCI leaders in the city. The FBCCI held the meeting with the visiting WB team to discuss the present state of private investment scenario, impacts of inflation, monetary policy and tax reforms at its conference room. FBCCI president AK Azad chaired the meeting. May said the development lender is closely engaged with Bangladesh and would expand its investment covering more areas to spur the country's economic growth and reduce poverty. FBCCI leaders, however, asked the Washington-based bank to scale up its investment for the Public Private Partnership (PPP) ventures, especially in sectors which have high growth potentials and can create millions of jobs. They sought large-scale WB fund for infrastructure, connectivity, special economic zones and industrial parks to boost Bangladesh economy. FBCCI directors briefed the delegation about the challenges they are facing and the potentials they have in their respective sectors. Giving a brief overview of the country's current economic situation, AK Azad said Bangladesh needs at least US$ 28 billion investment to achieve 8.0 per cent GDP growth by 2013. He said the FBCCI represents 285 associations and 68 chambers across the country and urged the WB to extend support to industrial associations in rural districts.