Development paradigm pivots from megaprojects to health, edn

Development paradigm now pivots from megaprojects to vital sectors like health and education as Finance and Planning Adviser Dr Salehuddin Ahmed indicated Tuesday and cautioned against lavish spending of public money.
He told development officials that the interim government would not invest in infrastructure development on a large scale further rather invest in health and education sectors.
"The government will not invest in roads and ports like in the previous times. We will invest public funds in development of the poorly treated social sectors, including health and education," he said while briefing journalists after his meeting with Planning Commission (PC) high officials in Dhaka.
He said their interim government would also review the implementation period of the 9th five-year plan (FYP), to be prepared soon, and also align it with the SDGs.
When asked about the struggling economy, the adviser said, "Economy is not bad at all. It is slowed down to some extent. But it has picked up now."
Dr Ahmed said his main agenda is to revive the economy and execute reforms in the financial sector. "I have a plan to reform the financial sector. I will not disclose it to you now."
About the aspired reforms he said: "It is difficult to reform fully within a shorter period. But we will mend and some of the necessary reforms will definitely be done."
He asked the PC officials to ensure best use of public funds and quality of the development projects.
Mr Ahmed made it clear that only those projects which directly benefit the public, and ensure improvement in Bangladesh's business and investment will be entertained.
About the ongoing megaprojects-mostly in communications-infrastructure sector-the former central-bank governor said he would look after the fund release for the big projects by consulting the relevant people in the implementation stages.
Planning secretary, members of the Planning Commission and joint secretary-and above-grade civil servants were present at the first meeting with the newly appointed finance and planning adviser, Dr Ahmed, at the Commission office at Agargaon in Dhaka.
The adviser also sat with the Economic Relations Division (ERD) and a World Bank Group team at his Agargaon office on the day.
He directed the officials not to spend the foreign aid lavishly as the money goes into the debt account of the people.
"You will buy Tk500-rated product at Tk 5,000 under development projects that will not be spared anymore. Be cautious in spending the public funds in a correct way," Mr Ahmed, who holds the nation's purse strings at a critical crossroads, said in a strongly worded note of caution.
He also directed the ERD and PC officials to utilise around US$48-billion equivalent of foreign funds stuck in the pipeline over the years for neglect.
Replying to journalists, Dr Ahmed notes that Bangladesh has never failed in repaying the foreign loans, and he asked the ERD to negotiate with bilateral donors the rescheduling of the debt service, if necessary.
After both the meetings, World Bank Country Director in Bangladesh Abdoulaye Seck said they would come forward with their support to the interim government "based on our priorities and necessities".
Expressing condolences on the life lost during the protests and during the last government, the WB executive said, "Our commitment to Bangladesh, the people of Bangladesh is to support for reforms.
He rolls out the Washington-based global financier's redefined roles in Bangladesh's development financing. "Reforms in the financial, trade and business climate are necessary and it is necessary to ensure private-sector-led job creation for the young people."
About the meet with the finance and planning adviser of the interim government, he said: "We had a very good discussion with the adviser and we convey our new commitment to the longstanding partnership between WB Group and Bangladesh. In last 52 years, WB has a US$42 billion worth of aid commitment to this country. I look forward to a bright future."
Asked about repayment of loans, he said, "Bangladesh is very reliable partner in terms of repaying the loans. Bangladesh shall be proud of it."
Asked about financial-sector reform, Mr Seck said: "It is a critical agenda. You know that WB is supporting many of the reforms in this sector over the periods."
He adds: "The central bank has started policy-based lending and conducted reform in the bank company act. But there are still some remaining issues including-how the bank will deal with non-performing loans (NPLs), and with poor banks. So there are many agenda and we are looking forward to working together."
Actually the financial sector is critical as Bangladesh's aspiration is becoming a developed nation, Mr Ahmed notes about the country's LDC graduation process.
The International Finance Corporation country manager for Bangladesh, Martin Holtmann, said the IFC as a private-sector lending arm of the WB Group, has been working with Bangladesh and its financial sector. "We will continue our support to Bangladesh and its private sector."

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