Abu Sazzad :
The achievement of seven per cent Gross Domestic Product (GDP) growth for the fiscal 2015-16 seems impossible without sufficient investment in the private sector from both local and foreign sources, said economists.
Diversification of export basket; improvement in investment climate by improving power supply, port operations and regulations and access to long-term finance for achieving the growth projection are the major challenges, said Economist and former Adviser to the Caretaker Government Mirza Azizul Islam.
As per the latest information of the United Nations Conference on Trade and
Development (UNCTAD), Bangladesh received $1.6 billion in 2014, but country needs about $5.4 billion to fulfil the dream of getting middle-income status by 2021, said Mirza Azizul Islam.
More radical economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives are required for attracting more inflow of investment in the country”, said the economist.
FDI inflows remain below one per cent of GDP because of low investment.
On the other hand, the government has planned to borrow from banking sector near about 30,000 crore to meet the budget deficit, which would definitely hinder the private sector growth, claimed the economist.
Former Bangladesh Bank Governor Dr Salahuddin Ahmed is of the opinion that country can become a middle-income country by 2021 if it raises its GDP growth a little more to a sustained 7.5 percent a year.
Achieving a 7.5 percent growth per year could be challenging, but not totally impossible, he said.
Keeping inflation within expected level, more local and foreign investment could help achieve the GDP target, said the former governor.
Economist Mamun-Ur-Rashid said, country needs to utilize its labour and capital to improve productivity and investment rate by more than five percentage point.
GDP growth in China has been nine on average since 1975, while in South Korea and Thailand, it has been eight per cent growth for last two decades, he pointed.
The actual economic growth in the FY2013-14 finally stood at 6.06 per cent against the provisional estimation of 6.12 per cent, the data revealed by the Planning Ministry.
The achievement of seven per cent Gross Domestic Product (GDP) growth for the fiscal 2015-16 seems impossible without sufficient investment in the private sector from both local and foreign sources, said economists.
Diversification of export basket; improvement in investment climate by improving power supply, port operations and regulations and access to long-term finance for achieving the growth projection are the major challenges, said Economist and former Adviser to the Caretaker Government Mirza Azizul Islam.
As per the latest information of the United Nations Conference on Trade and
Development (UNCTAD), Bangladesh received $1.6 billion in 2014, but country needs about $5.4 billion to fulfil the dream of getting middle-income status by 2021, said Mirza Azizul Islam.
More radical economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives are required for attracting more inflow of investment in the country”, said the economist.
FDI inflows remain below one per cent of GDP because of low investment.
On the other hand, the government has planned to borrow from banking sector near about 30,000 crore to meet the budget deficit, which would definitely hinder the private sector growth, claimed the economist.
Former Bangladesh Bank Governor Dr Salahuddin Ahmed is of the opinion that country can become a middle-income country by 2021 if it raises its GDP growth a little more to a sustained 7.5 percent a year.
Achieving a 7.5 percent growth per year could be challenging, but not totally impossible, he said.
Keeping inflation within expected level, more local and foreign investment could help achieve the GDP target, said the former governor.
Economist Mamun-Ur-Rashid said, country needs to utilize its labour and capital to improve productivity and investment rate by more than five percentage point.
GDP growth in China has been nine on average since 1975, while in South Korea and Thailand, it has been eight per cent growth for last two decades, he pointed.
The actual economic growth in the FY2013-14 finally stood at 6.06 per cent against the provisional estimation of 6.12 per cent, the data revealed by the Planning Ministry.
