Package to bring positive result in long-run, says BIDS DG
Monday, 20 April 2009
FE Report
The Tk 34.24 billion stimulus package would bring positive result in the long-run, said Bangladesh Institute of Development Studies (BIDS) director general Dr Mustafa Kamal Mujeri in his reaction to the government measures to face the ongoing global crisis.
"An important aspect of the package is that it has focused in the domestic front while prioritising power and agriculture sector," he told the FE.
"The government is trying to off set the negative impact of the global recession on the export sector by increasing competitiveness and reducing cost of production," he added.
If power production goes up, it would decrease the cost of production and eventually exporters could be able to increase their competitiveness, Mr Mujeri said.
He, however, said it is long-process but in the short-run by using resources efficiently and judiciously, power generation can be increased.
"Boro season is almost over and the government can divert gas consumed in fertiliser factories to fuel power plants," he said.
If power generation is increased by 600 to 700 megawatt, it would help the export sector in the short-term, he explained.
The economist felt that it is not possible to increase competitiveness by providing cash incentives only.
"It is true the export sector is slowing down and for revival, it needs to be more competitive," he asserted.
The Tk 34.24 billion stimulus package would bring positive result in the long-run, said Bangladesh Institute of Development Studies (BIDS) director general Dr Mustafa Kamal Mujeri in his reaction to the government measures to face the ongoing global crisis.
"An important aspect of the package is that it has focused in the domestic front while prioritising power and agriculture sector," he told the FE.
"The government is trying to off set the negative impact of the global recession on the export sector by increasing competitiveness and reducing cost of production," he added.
If power production goes up, it would decrease the cost of production and eventually exporters could be able to increase their competitiveness, Mr Mujeri said.
He, however, said it is long-process but in the short-run by using resources efficiently and judiciously, power generation can be increased.
"Boro season is almost over and the government can divert gas consumed in fertiliser factories to fuel power plants," he said.
If power generation is increased by 600 to 700 megawatt, it would help the export sector in the short-term, he explained.
The economist felt that it is not possible to increase competitiveness by providing cash incentives only.
"It is true the export sector is slowing down and for revival, it needs to be more competitive," he asserted.