Budget to create scope for private investment: Muhith
Friday, 24 April 2009
FE Report
The upcoming budget will create opportunity for investment by private investors as the government will bring back their confidence on its policy, said finance minister AMA Muhith on Thursday.
"We have to build the confidence of the businessmen for more investment," he said at a seminar on 'potential impact of global recession on industry: A way to come out', organised by the industry ministry in the city.
The minister said the government does not want to make any industry 'sick' and it will do whatever possible to help the sectors that are affected by the recession.
"Garments and other sectors are very important and we will see that no company turns sick," he said.
The industries, which have remained sick for long, should be given a scope for winding up and resources should not be wasted for reviving them, he added.
About the power crisis, he said the country takes time to build big power plants to generate thousands of megawatt of electricity.
"If necessary, coal powered power plant will be set up, Environmental issue will not deter us from taking such initiative," he added.
No government package will work if the country does not have enough electricity, said adviser to the prime minister Mashiur Rahman.
"Large investment is needed for the development of the power sector," he said.
The main strategy to face the global crisis is to increase domestic demand, but at the same time it should help the export sector, he added.
"Next one year will be very crucial as it is expected that the recession will fade out in late 2010," Mr Mashiur said.
Industry minister Dilip Barua said the government should have a lump-sum allocation for the workers, who are coming back from abroad due to the recession.
"These workers have expertise and they can be used in our industry," he suggested.
The businesses need to use cheap labour to produce good quality low-price products and export them to increase foreign currency earnings, he said.
Naznin Ahmed, a research fellow of Bangladesh Institute of Development Studies, made a presentation on the global recession.
In her presentation she said cash subsidy is an inefficient way to assist a sector.
"If workers lose their jobs the government can help that particular factory instead of announcing a wholesale package for the sector," she said.
Poorer section of the people will the worst hit by the ongoing recession and the government should widen its social safety net programme to protect them, she suggested.
The upcoming budget will create opportunity for investment by private investors as the government will bring back their confidence on its policy, said finance minister AMA Muhith on Thursday.
"We have to build the confidence of the businessmen for more investment," he said at a seminar on 'potential impact of global recession on industry: A way to come out', organised by the industry ministry in the city.
The minister said the government does not want to make any industry 'sick' and it will do whatever possible to help the sectors that are affected by the recession.
"Garments and other sectors are very important and we will see that no company turns sick," he said.
The industries, which have remained sick for long, should be given a scope for winding up and resources should not be wasted for reviving them, he added.
About the power crisis, he said the country takes time to build big power plants to generate thousands of megawatt of electricity.
"If necessary, coal powered power plant will be set up, Environmental issue will not deter us from taking such initiative," he added.
No government package will work if the country does not have enough electricity, said adviser to the prime minister Mashiur Rahman.
"Large investment is needed for the development of the power sector," he said.
The main strategy to face the global crisis is to increase domestic demand, but at the same time it should help the export sector, he added.
"Next one year will be very crucial as it is expected that the recession will fade out in late 2010," Mr Mashiur said.
Industry minister Dilip Barua said the government should have a lump-sum allocation for the workers, who are coming back from abroad due to the recession.
"These workers have expertise and they can be used in our industry," he suggested.
The businesses need to use cheap labour to produce good quality low-price products and export them to increase foreign currency earnings, he said.
Naznin Ahmed, a research fellow of Bangladesh Institute of Development Studies, made a presentation on the global recession.
In her presentation she said cash subsidy is an inefficient way to assist a sector.
"If workers lose their jobs the government can help that particular factory instead of announcing a wholesale package for the sector," she said.
Poorer section of the people will the worst hit by the ongoing recession and the government should widen its social safety net programme to protect them, she suggested.