Land scarcity impeding industrialisation process
Monday, 16 July 2012
FE Report
Finance Minister AMA Muhith Sunday said financing by banks in the country's power sector has caused an adverse impact on availability of credit for private sector.
"This is a serious problem for us," Mr Muhith said while inaugurating a two-day-long IGC South Asia Growth Conference 2012 held at a local hotel in the city. International Growth Centre (IGC) in collaboration with Economic Research Group, Dhaka organised the two-day conference.
The finance minister attended the programme as chief guest while noted economist Dr Wahiduddin Mahmud presided over the inaugural session.
Economic affairs adviser to Prime Minister Sheikh Hasina Dr Mashiur Rahman attended it as special guest.
Mr Muhith said domestic credit to private power plants is squeezing investment opportunities for other private sector.
He felt that infrastructure in the country was very much outdated while power crisis had been persisting for many years.
Mr Muhith said non-availability of enough land in the country is also impeding industrialisation adversely.
"We're in great stress in providing lands for industrialisation," he noted.
Mr Muhith said non-availability of high land, poor road conditions and power supply shortage are among the few problems that are hurting the investors.
He said: "We're finding a solution to this through setting up seven economic zones. Necessary rules and guidelines for this are yet to be finalised," Mr Muhith said at the conference.
Policy-makers and local researchers from all the IGC South Asian countries -- Bangladesh, India and Pakistan as well as international researchers from around world-class universities participated in it.
The objective of this IGC event is to generate useful debates on policies that are current priorities in the region.
Mr Muhith said investment flow is poor in Bangladesh adding: "There is tremendous short supply of investment in the country."
He said FDI (foreign direct investment) though was better in 2011 it was still less compared to that flowed into other regional countries.
The finance minister said Bangladesh has given prime importance to the task of addressing problems relating to infrastructure, power and urbanisation.
He said urbanisation is an area where due attention was not given.
He said Bangladesh's economy is changing fast adding: "In just three years the size of the national budget has almost doubled."
Mr Muhith said the national economy is now highly globalised and linked with all major economies.
The finance minister said Bangladesh's poverty level has been halved to 31 per cent from 60 per cent mainly due to special programmes of social safety nets undertaken by successive governments.
Mr Muhith said NGOs (non-government organisations) has made a big contribution to the efforts to improve situation.
Grameen Bank and also Brac played tremendous role in improving the poverty level, he added.
Speaking at the programme, Dr Mashiur Rahman said net loss of agricultural land is an issue of concern.
He said human settlements and setting up of industries are resulting in loss of agricultural land in the country.
He said expansion of industries vertically rather than horizontally is a good solution to problem of shrinkage of farm land.
Mashiur said there is need for finding ways to minimise loss of agricultural land by giving proper attention to the industrialisation and human settlements.
Robin Burgess of London School of Economics, Tony Venables of Oxford University, Mark Rosenzweig of Yale University, Ijaz Nabi of Lahore University of Management Sciences and Dilip Mookherjee of Boston University spoke at the inaugural session.
Finance Minister AMA Muhith Sunday said financing by banks in the country's power sector has caused an adverse impact on availability of credit for private sector.
"This is a serious problem for us," Mr Muhith said while inaugurating a two-day-long IGC South Asia Growth Conference 2012 held at a local hotel in the city. International Growth Centre (IGC) in collaboration with Economic Research Group, Dhaka organised the two-day conference.
The finance minister attended the programme as chief guest while noted economist Dr Wahiduddin Mahmud presided over the inaugural session.
Economic affairs adviser to Prime Minister Sheikh Hasina Dr Mashiur Rahman attended it as special guest.
Mr Muhith said domestic credit to private power plants is squeezing investment opportunities for other private sector.
He felt that infrastructure in the country was very much outdated while power crisis had been persisting for many years.
Mr Muhith said non-availability of enough land in the country is also impeding industrialisation adversely.
"We're in great stress in providing lands for industrialisation," he noted.
Mr Muhith said non-availability of high land, poor road conditions and power supply shortage are among the few problems that are hurting the investors.
He said: "We're finding a solution to this through setting up seven economic zones. Necessary rules and guidelines for this are yet to be finalised," Mr Muhith said at the conference.
Policy-makers and local researchers from all the IGC South Asian countries -- Bangladesh, India and Pakistan as well as international researchers from around world-class universities participated in it.
The objective of this IGC event is to generate useful debates on policies that are current priorities in the region.
Mr Muhith said investment flow is poor in Bangladesh adding: "There is tremendous short supply of investment in the country."
He said FDI (foreign direct investment) though was better in 2011 it was still less compared to that flowed into other regional countries.
The finance minister said Bangladesh has given prime importance to the task of addressing problems relating to infrastructure, power and urbanisation.
He said urbanisation is an area where due attention was not given.
He said Bangladesh's economy is changing fast adding: "In just three years the size of the national budget has almost doubled."
Mr Muhith said the national economy is now highly globalised and linked with all major economies.
The finance minister said Bangladesh's poverty level has been halved to 31 per cent from 60 per cent mainly due to special programmes of social safety nets undertaken by successive governments.
Mr Muhith said NGOs (non-government organisations) has made a big contribution to the efforts to improve situation.
Grameen Bank and also Brac played tremendous role in improving the poverty level, he added.
Speaking at the programme, Dr Mashiur Rahman said net loss of agricultural land is an issue of concern.
He said human settlements and setting up of industries are resulting in loss of agricultural land in the country.
He said expansion of industries vertically rather than horizontally is a good solution to problem of shrinkage of farm land.
Mashiur said there is need for finding ways to minimise loss of agricultural land by giving proper attention to the industrialisation and human settlements.
Robin Burgess of London School of Economics, Tony Venables of Oxford University, Mark Rosenzweig of Yale University, Ijaz Nabi of Lahore University of Management Sciences and Dilip Mookherjee of Boston University spoke at the inaugural session.