NEC approves 2nd PRSP
Friday, 24 October 2008
FE Report
The National Economic Council (NEC) Thursday approved the second Poverty Reduction Strategy Paper (PRSP) with emphasis on promotion of the country's private and agriculture sectors.
The second PRSP, spanning three years from FY09, has been adopted by NEC, government's highest economic policy-making body, at a meeting in Dhaka targeting 7.2 per cent growth in its final implementation until FY2011.
The document focuses on climate change adaptation, rising food prices in the global market and the impact of a changed political scenario, the second PRSP committee chief Ismail Hossain told newsmen Thursday after the NEC meeting.
The NEC meeting was chaired by the chief adviser Dr. Fakhruddin Ahmed.
The first strategy paper, which expired in June 2007, was adopted in July 2005 by the BNP-led four-party alliance government. Later the government prepared an extended PRSP for FY08.
Agriculture sector got increased focus in the second PRSP as it has undertaken a set of policies for augmenting local production aiming to ensuring food security in the aftermath of soaring food prices across the globe, a planning ministry official told the FE.
He said a fund totalling Tk 3190.44 billion would be required to implement the PRSP aiming to achieve targeted 6.7, 7.0 and 7.2 per cent GDP growth in next three years FY09, FY10 and FY11 respectively.
Of the total, the government will be able to mobilise Tk 2559.50 billion from the internal resources and there will be a funding gap of some Tk 630.94 billion (US$9.01 billion) for implementing it.
The official said the government has only one option to meet the large gap and that was to seek overseas financial support.
The poverty reduction document, singling the private sector out as the main driver of growth, has targeted a Tk 4508.5 billion (US$65.7 billion) investment from the sector over the three-year implementation period.
The PRSP-the government's main development plan - set the ambitious target after the planning ministry said some 80 per cent of the country's Gross Domestic Products (GDP) and 90 per cent of the employment are now generated by the private sector.
"The strategy paper has set a substantial target as we expect it to make at least 82 percent of the total projected investment in the three years. We believe the sectors will continue to grow at a hefty pace despite some bottlenecks," the official added.
The PRSP in its medium term macroeconomic framework (MTMF) projected public sector investment of TK 964.9 billion or just 18 per cent of the total investment projected in the three years to FY11.
The official said in the PRSP the government would stress adopting private-sector-friendly policies.
The National Economic Council (NEC) Thursday approved the second Poverty Reduction Strategy Paper (PRSP) with emphasis on promotion of the country's private and agriculture sectors.
The second PRSP, spanning three years from FY09, has been adopted by NEC, government's highest economic policy-making body, at a meeting in Dhaka targeting 7.2 per cent growth in its final implementation until FY2011.
The document focuses on climate change adaptation, rising food prices in the global market and the impact of a changed political scenario, the second PRSP committee chief Ismail Hossain told newsmen Thursday after the NEC meeting.
The NEC meeting was chaired by the chief adviser Dr. Fakhruddin Ahmed.
The first strategy paper, which expired in June 2007, was adopted in July 2005 by the BNP-led four-party alliance government. Later the government prepared an extended PRSP for FY08.
Agriculture sector got increased focus in the second PRSP as it has undertaken a set of policies for augmenting local production aiming to ensuring food security in the aftermath of soaring food prices across the globe, a planning ministry official told the FE.
He said a fund totalling Tk 3190.44 billion would be required to implement the PRSP aiming to achieve targeted 6.7, 7.0 and 7.2 per cent GDP growth in next three years FY09, FY10 and FY11 respectively.
Of the total, the government will be able to mobilise Tk 2559.50 billion from the internal resources and there will be a funding gap of some Tk 630.94 billion (US$9.01 billion) for implementing it.
The official said the government has only one option to meet the large gap and that was to seek overseas financial support.
The poverty reduction document, singling the private sector out as the main driver of growth, has targeted a Tk 4508.5 billion (US$65.7 billion) investment from the sector over the three-year implementation period.
The PRSP-the government's main development plan - set the ambitious target after the planning ministry said some 80 per cent of the country's Gross Domestic Products (GDP) and 90 per cent of the employment are now generated by the private sector.
"The strategy paper has set a substantial target as we expect it to make at least 82 percent of the total projected investment in the three years. We believe the sectors will continue to grow at a hefty pace despite some bottlenecks," the official added.
The PRSP in its medium term macroeconomic framework (MTMF) projected public sector investment of TK 964.9 billion or just 18 per cent of the total investment projected in the three years to FY11.
The official said in the PRSP the government would stress adopting private-sector-friendly policies.