Middle-income status to be a \\\'castle in the air\\\' without 10pc GDP growth: Muhith

FE Report | Published: February 28, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Finance Minister Abul Maal A Muhith Thursday called for a significant increase in both local and foreign investment in the country to help attain a 10 per cent GDP growth for becoming a middle-income country.
Mr Muhith was speaking as the chief guest at an inaugural session of the country's largest information technology (IT) market at the Jamuna Future Park (JFP) in the city. Marking the IT market launching, he also inaugurated a 10-day exhibition on computers and cell phones titled 'BCS ICT World 2014' at the level 4 of the JFP.
The opening session was addressed, among others, by Zunaid Ahmed Palak, State Minister for Post, Telecommunications and Technology Ministry, Advocate Salma Islam MP, K Shamshi Tabrez, managing director of the Dutch-Bangla Bank Ltd, Nurul Islam Babul, Jamuna Group Chairman, and Mustafa Jabbar, president of the Bangladesh Computer Samity (BCS).
The largest IT market in the country started under the initiative of the BCS.
The exhibition will remain open from 10am to 8pm. Entry fee is Tk 20. Showing own ID cards, the students can enter exhibition without any fee. Anybody also can get such advantage by registering at www.bcsictworld.com.bd and bringing its print copy, officials said.
Calling for a rise in investment in the country, Mr Muhith said, if investment is not increased, our target to achieve 10 per cent GDP will remain as a 'castle in the air'.
"Currently, we-- private and public sectors-- are jointly contributing about 25-26 per cent to the GDP. If the GDP-investment ratio doesn't rise to at least 32 per cent, we cannot reach even near our target of becoming middle-income country, let alone achieve it," he said.
"To make more development like that of Indonesia and South Korea, we have to make 40 per cent investment to the country's GDP," the Finance Minister said.
"So, our main goal should be to increase our investment, because it is linked to national development and the country's dignity and progress in different other sectors," he continued.
He further said lack of investment is the main barrier to poverty alleviation and social upliftment in the country. "We have to give attention to investment."
Thanks to investment, a good development happened in the recent past in the capital market, which started in 1965. It was not flourished till 1988, he pointed out.
"This year, we can say, we have created a capital market. After the 2010 debacle, stability has been prevailing at the capital market since the last three years."
The concerned policy, law and rules reached a level that "we really created a capital market. Creation of the capital market means we have widely opened the way of investment," he said.
Apart from the government investment, the private investment is also being injected through banks, though work of the banks is not business.
In the prevailing poverty situation in the country, "we will not be able to provide necessary investment. That's why, foreign direct investment (FDI) is very much needed in our country," Mr Muhith said.
One of the major targets of the incumbent government is how to increase investment, he added.
Terming the Jamuna Future Park as an outcome of innovative concept and thinking, the Finance Minister said that the area occupying the JFP and the Bashundhara city was developed as settled area.
Mr Muhith assured taking an initiative from the government to build a dedicated expressway to smoothly go to the area from a main point of the Dhaka city like Sonargaon intersection.
"The Rajuk will be responsible for the task and the Bashundhara and the Jamuna Groups also need to jointly participate in this respect," he said.
About a request from Mr Palak to withdraw VAT on internet usage and tax on cell phone raw materials for the sake of building a strong mobile phone industry in the country, the Finance Minister said, "It's not possible through an announcement here. In this respect, we have to wait till the next budget."
Mr Palak assured spread of the information technology across the country rapidly and vowed to create 1,000 more freelancers by next year.
Mr Babul thanked chief, special and other guests for attending the programme, and requested the minister to give gas connection to the JFP. Mr Muhith termed the request as rational but could not assure giving gas connection shortly.