Rental power plants help earn $6.5b in exports
Sunday, 24 June 2012
FE Report
Finance Minister AMA Muhith Saturday said that 7.2 per cent economic growth has been targeted for the 2012-13 fiscal year with a view to changing the traditional lengthy trend of growth that exists in the country's economy.
"I want to change the trend of growing at 0.5 percentage point in each five year. For this, we've targeted 7.2 per cent growth in the next fiscal year," Mr Muhith said at a post-budget discussion organised by Economic Reporters Forum held at the National Press Club.
Former planning minister Dr Moyeen Khan, former president of Federation of Bangladesh Chambers of
Commerce and Industry (FBCCI) Annisul Huq and renowned economist Dr Binayak Sen were present at the discussion.
Dr Binayak Sen in his speech said Bangladesh does not need to attain a higher growth rate like 7.2 per cent as it has been growing on an average 0.5 percentage point in each five year.
Mr Muhith, on the other hand, said the provisional gross domestic product (GDP) growth rate estimated by Bangladesh Bureau of Statistics (BBS) for the outgoing fiscal year has some faults as the government entity had failed to calculate domestic demand, agricultural production and investment accurately.
Mr Muhith said the country has attracted 1.1 billion dollars foreign direct investment in the year. "This is the highest in recent years."
Mr Muhith said monetary growth was too high in 2010-11 adding: "This is now 17-18 per cent and this is not lower."
He said: "If you look at the trend, this (money growth) is quite okay."
Mr Muhith said land demarcation for seven economic zones proposed in the budget will be finalised within December.
"We'll give some infrastructure and help in land acquisitions. We'll give some utilities there including rail line," he added.
He said discussions are going on [government and World Bank] on the Padma Bridge.
He said World Bank named some personalities who reportedly wanted bribe in the project.
"I cannot quote their names, we need evidences," he added.
He said the Anti-Corruption Commission (ACC) did not submit any report to the finance ministry relating to Padma Bridge corruption.
Defending the much-talked-about quick rental power plants in the country, Annisul Huq said the economy had to face an adverse economic impact worth Tk 1600 billion if this type of power stations were not installed.
He said the rental power helped country earn US$ 6.5 billion in exports.
He said at least 900,000 people were employed following installation of rental power stations.
He said rice production has been increased to 3.7 million tonnes while potato 400,000 tonnes and wheat 100,000 tonnes.
"If there was no rental power plants, we had to import additional goods worth Tk 100 billion."
Mr Annisul Huq disclosed this data revealed in a study conducted recently.
Speaking at the meeting, Bangladesh Nationalist Party (BNP) standing committee member Dr Moyeen Khan said the country's economy is bleeding because of rental power plants.
He said people want to evade tax as they do not have justification about giving taxes to the national exchequer.
"They (common people) want to know how the government utilises their hard-earned money and what benefit they derive from giving taxes."
"It is very unfortunate that we cannot give any guarantee about fulfillment of these expectations of the people."
Mr Khan said the minimum taxable threshold should be increased to Tk 200,000 considering inflation rate prevailed during the outgoing year.
He said investment remained slow mainly because of deteriorating law and order situation.
"I don't see bright picture of investment following poor law and order situation in the country."
Speaking at the programme, renowned economist Dr Binayak Sen said that attaining 7.2 per cent growth will be difficult for the government adding: "GDP growth of 1.0 per cent in each decade is quite okay which the economy has been attaining since 1980s.
He said the people of middle income group were badly affected by share market crash and higher inflationary pressures.
He said transportation and house rents which increased manifold hit the group adversely.
He said government should form an independent commission to evaluate the annual development programmes comprising representatives of civil societies and media.
ERF president Khawza Mainuddin was moderator at the programme.
Finance Minister AMA Muhith Saturday said that 7.2 per cent economic growth has been targeted for the 2012-13 fiscal year with a view to changing the traditional lengthy trend of growth that exists in the country's economy.
"I want to change the trend of growing at 0.5 percentage point in each five year. For this, we've targeted 7.2 per cent growth in the next fiscal year," Mr Muhith said at a post-budget discussion organised by Economic Reporters Forum held at the National Press Club.
Former planning minister Dr Moyeen Khan, former president of Federation of Bangladesh Chambers of
Commerce and Industry (FBCCI) Annisul Huq and renowned economist Dr Binayak Sen were present at the discussion.
Dr Binayak Sen in his speech said Bangladesh does not need to attain a higher growth rate like 7.2 per cent as it has been growing on an average 0.5 percentage point in each five year.
Mr Muhith, on the other hand, said the provisional gross domestic product (GDP) growth rate estimated by Bangladesh Bureau of Statistics (BBS) for the outgoing fiscal year has some faults as the government entity had failed to calculate domestic demand, agricultural production and investment accurately.
Mr Muhith said the country has attracted 1.1 billion dollars foreign direct investment in the year. "This is the highest in recent years."
Mr Muhith said monetary growth was too high in 2010-11 adding: "This is now 17-18 per cent and this is not lower."
He said: "If you look at the trend, this (money growth) is quite okay."
Mr Muhith said land demarcation for seven economic zones proposed in the budget will be finalised within December.
"We'll give some infrastructure and help in land acquisitions. We'll give some utilities there including rail line," he added.
He said discussions are going on [government and World Bank] on the Padma Bridge.
He said World Bank named some personalities who reportedly wanted bribe in the project.
"I cannot quote their names, we need evidences," he added.
He said the Anti-Corruption Commission (ACC) did not submit any report to the finance ministry relating to Padma Bridge corruption.
Defending the much-talked-about quick rental power plants in the country, Annisul Huq said the economy had to face an adverse economic impact worth Tk 1600 billion if this type of power stations were not installed.
He said the rental power helped country earn US$ 6.5 billion in exports.
He said at least 900,000 people were employed following installation of rental power stations.
He said rice production has been increased to 3.7 million tonnes while potato 400,000 tonnes and wheat 100,000 tonnes.
"If there was no rental power plants, we had to import additional goods worth Tk 100 billion."
Mr Annisul Huq disclosed this data revealed in a study conducted recently.
Speaking at the meeting, Bangladesh Nationalist Party (BNP) standing committee member Dr Moyeen Khan said the country's economy is bleeding because of rental power plants.
He said people want to evade tax as they do not have justification about giving taxes to the national exchequer.
"They (common people) want to know how the government utilises their hard-earned money and what benefit they derive from giving taxes."
"It is very unfortunate that we cannot give any guarantee about fulfillment of these expectations of the people."
Mr Khan said the minimum taxable threshold should be increased to Tk 200,000 considering inflation rate prevailed during the outgoing year.
He said investment remained slow mainly because of deteriorating law and order situation.
"I don't see bright picture of investment following poor law and order situation in the country."
Speaking at the programme, renowned economist Dr Binayak Sen said that attaining 7.2 per cent growth will be difficult for the government adding: "GDP growth of 1.0 per cent in each decade is quite okay which the economy has been attaining since 1980s.
He said the people of middle income group were badly affected by share market crash and higher inflationary pressures.
He said transportation and house rents which increased manifold hit the group adversely.
He said government should form an independent commission to evaluate the annual development programmes comprising representatives of civil societies and media.
ERF president Khawza Mainuddin was moderator at the programme.