Our honorable finance Minister said "the GDP rate would grow by 6.”I disagree it

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Offline ashiqbest012

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Our honorable finance Minister (Abul Maal Abdul Muhith) has placed the national budget in parliament on June 2010 and said that “the government would emphasis reducing the cost of doing business by ensuring administrative reforms and making utility services easily available” and also said  â€œthe GDP rate  would grow by 6”.

I disagree with his statement. Reason is given below
Foreign investment is declining in the country. According to Bangladesh Bank, foreign investment has gone down by 63 percent in the current year in nine months. Foreign investment is not increasing because of power shortage and political unrest. Public investment has been decreasing during the last five years as the government could not implement properly the Annual Development Program (ADP).

The stagnation in investment during the caretaker government still continues because investment is picking up to desired level, new industries are not being set up. As a result, employment is not increasing. Many industrial units are being stopped because of power sector.

Private investment remained subdued because of weak public sector response with regard to investment in power and infrastructure. The CPD report said low levels of private investment were mainly due to an absence of a congenial investment environment rather than availability of funds.

To create investment friendly environment, the government allocated TK 2.5 billion for implementing the projects under PPP. But the money could not be spent because of a failure to formulate policy.

Foreign direct investment was dismally low. In July-March, it fell by 50.9 percent, according to Bangladesh Bank.
According to World Bank, the estimated demand supply gap of electricity is currently a third of demand (2000mw) at peak hours. Shortage of gas accounts for nearly half of this gap. Maintaining growth at its recent 6 percent average over the medium term will thus be a challenge to Bangladesh, given the current infrastructure and energy deficit.
The country’s GDP growth has been estimated at just 5.5 percent by World Bank which is lowest in seven years. The Bangladesh Bureau of Statistics produced an estimate of only 5.54 percent growth for the current fiscal.

Bangladesh is experiencing an interesting situation. The economy is growing, although at a lower rate while investment remains static. This is growth without any remarkable rise in investment. This trend may not sustainable in the long run. To reverse this trend, load shedding must go. The budget does not say anything specifically about load shedding.
Name: Ashiq Hossain
ID: 121-14-696 & 083-11-558
Faculty of Business & Economics
Daffodil International University