Businesses call for immediate ADP implementation
Tuesday, 21 July 2009
FE Report
Businessmen have urged the government to start implementation of the Annual Development Programme (ADP) immediately to boost investment, particularly in private sector.
"The government should start implementation of the ADP immediately which will boost up the private investment as well," former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mir Nasir Hossain told the FE Monday.
The observation came after the announcement of new monetary policy by the Bangladesh Bank (BB) aiming to boost investment maintaining easy credit condition to offset impact of global recession on the economy.
Hossain, who is also chairman of the Eastern Bank Limited, said the pressure on excess liquidity in the banking system will not ease without promoting investment in deferent sectors.
"Excess liquidity is a burden for the banks," he said, adding that multi-dimensional problems would be created if the pressure on excess liquidity continues.
The BB's latest monetary policy is aimed at "facilitating economic growth through more investments in the real sectors like agricultural and small and medium enterprises (SMEs)."
The business leaders question how to increase investments in different sectors without enhancing the private sector credit growth during fiscal 2009-2010 (FY10).
They said the issue regarding matching up the private sector credit growth with investment is not clear.
Under the new monetary programme, credit to the private sector will grow at 16.70 per cent in FY'10 from an estimated 15.00 per cent of the just concluded fiscal year.
The central bank had set the private sector credit growth at 18.50 per cent by the end of June this year.
The central bank governor, however, said the BB would use its bulging foreign exchange reserve to boost investment if needed.
The BB unveiled its half-yearly monetary policy Sunday aiming to achieve six per cent economic growth in the current fiscal while keeping inflationary pressure under control.
President of the Bangladesh Garment Manufactures and Exporters Association (BGMEA) Abdus Salam Murshedy sees that the projected economic growth would not be achieved without solving infrastructural inadequacies particularly gas, water and electricity.
"The government should take a crash programme to develop infrastructural facilities for achieving economic growth by the end of this fiscal," the BGMEA chief added.
Bankers urged the central bank governor that the BB should take measures relating to bank interest rates, charges and fees through consultation with them.
Businessmen have urged the government to start implementation of the Annual Development Programme (ADP) immediately to boost investment, particularly in private sector.
"The government should start implementation of the ADP immediately which will boost up the private investment as well," former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mir Nasir Hossain told the FE Monday.
The observation came after the announcement of new monetary policy by the Bangladesh Bank (BB) aiming to boost investment maintaining easy credit condition to offset impact of global recession on the economy.
Hossain, who is also chairman of the Eastern Bank Limited, said the pressure on excess liquidity in the banking system will not ease without promoting investment in deferent sectors.
"Excess liquidity is a burden for the banks," he said, adding that multi-dimensional problems would be created if the pressure on excess liquidity continues.
The BB's latest monetary policy is aimed at "facilitating economic growth through more investments in the real sectors like agricultural and small and medium enterprises (SMEs)."
The business leaders question how to increase investments in different sectors without enhancing the private sector credit growth during fiscal 2009-2010 (FY10).
They said the issue regarding matching up the private sector credit growth with investment is not clear.
Under the new monetary programme, credit to the private sector will grow at 16.70 per cent in FY'10 from an estimated 15.00 per cent of the just concluded fiscal year.
The central bank had set the private sector credit growth at 18.50 per cent by the end of June this year.
The central bank governor, however, said the BB would use its bulging foreign exchange reserve to boost investment if needed.
The BB unveiled its half-yearly monetary policy Sunday aiming to achieve six per cent economic growth in the current fiscal while keeping inflationary pressure under control.
President of the Bangladesh Garment Manufactures and Exporters Association (BGMEA) Abdus Salam Murshedy sees that the projected economic growth would not be achieved without solving infrastructural inadequacies particularly gas, water and electricity.
"The government should take a crash programme to develop infrastructural facilities for achieving economic growth by the end of this fiscal," the BGMEA chief added.
Bankers urged the central bank governor that the BB should take measures relating to bank interest rates, charges and fees through consultation with them.