UNB, Dhaka :
The investment targets for the Sixth Five Year Plan (2011-15) are unlikely be achieved while the slowdown in the investment rate may lead to failure to attain the average GDP growth rate of above 7 percent over the remaining two years of the Plan.
“Though political stability has returned and there’s likely to be a recovery in private investment, on the whole it is clear that the investment targets for the Sixth Plan may not be achieved. The public investment rate is significantly lower than planned,” said the mid-term implementation review of the Sixth
Five-Year Plan (2011-15) of Bangladesh.
General Economics Division (GED) of the Planning Commission conducted the recent implementation review.
On the whole, the review said, the slowdown at the rate of investment may lead to failure to achieve the average GDP growth rate above 7 percent over the remaining two years of the Plan.
It said public investment and overall total investment target was not at par with SFYP targets in FY 2011-13.
Although the total investment as percentage of GDP reached 25.1 percent in FY 11 exceeding the target of 24.7 percent, in the successive years, the total investment as percentage of GDP touched 26.6 percent against the target of 26.8 percent in FY 12 and it notched 26.8 percent against the target of 29.6 percent in FY 13.
About the progress with economic growth, the review noted that the solid growth performance in Bangladesh during the Sixth Five Year Plan so far compares favourably not only by own historical standards, it also looks very good in international and regional comparison.
It said, Bangladesh has been among the fastest growing countries in the world during 2011-13 along with China, India and Indonesia.
“On the whole, average GDP performance in the first three years is a solid (6.4pc), but lower than the Sixth Plan target (7.3pc),” the review said.
Talking to UNB, GED member of the Planning Commission Prof Dr Shamsul Alam said the overall implementation of the Plan is about 86 percent till FY 13, which is the highest ever in the implementation of the other Five-Year plans of Bangladesh.
“So it’s a significant achievement, but I’m not happy as I wanted the GDP growth to reach more than 7.3 percent on average,” he added.
The Planning Commission member said they would try their best to accelerate the growth rate in the Seventh Five Year Plan period and attaining growth rate of more than 8 percent in the first two years of the upcoming Seventh Five Year Plan period.
“We’ll emphasise creating more human resource development, particularly in creating skilled manpower in every sector of the economy, and we’ll try for sending more people abroad for giving a boost to earning remittance,” he said.
On completion of the SFYP period in FY 15, the review also said, the success rate will be higher than any other plan period of the past.
Regarding progress with poverty reduction in line with the Plan target of reducing head-count poverty at 22.5 percent by 2015, the incidence of poverty has been declining on an average at 1.74 percentage points in Bangladesh during 2000 to 2010 as per the HIES data.
“With the trend, the estimated figure of poverty head count in 2013 was 26.2 percent, which is a significant achievement,” said the review.
It noted that prudent macroeconomic management has been the hallmark of Bangladesh’s long-term development as tax to GDP ratio, fiscal deficit, export growth, export to GDP ratio, current account balance, reserve build up and external debt management are all on track in line with Sixth Plan targets reflecting a prudent macroeconomic management.
The review suggested the government to take steps with the following priorities to create a better platform for higher growth supported by higher investment in the Seventh Plan period that includes improving the investment climate by removing the constraints identified by investors, the shortfall in public investment needs to be addressed speedily with a range of measures, including more focused and steady implementation of the tax modernisation plan, proper pricing of electricity and energy and rationalisation of subsidies.
The investment targets for the Sixth Five Year Plan (2011-15) are unlikely be achieved while the slowdown in the investment rate may lead to failure to attain the average GDP growth rate of above 7 percent over the remaining two years of the Plan.
“Though political stability has returned and there’s likely to be a recovery in private investment, on the whole it is clear that the investment targets for the Sixth Plan may not be achieved. The public investment rate is significantly lower than planned,” said the mid-term implementation review of the Sixth
Five-Year Plan (2011-15) of Bangladesh.
General Economics Division (GED) of the Planning Commission conducted the recent implementation review.
On the whole, the review said, the slowdown at the rate of investment may lead to failure to achieve the average GDP growth rate above 7 percent over the remaining two years of the Plan.
It said public investment and overall total investment target was not at par with SFYP targets in FY 2011-13.
Although the total investment as percentage of GDP reached 25.1 percent in FY 11 exceeding the target of 24.7 percent, in the successive years, the total investment as percentage of GDP touched 26.6 percent against the target of 26.8 percent in FY 12 and it notched 26.8 percent against the target of 29.6 percent in FY 13.
About the progress with economic growth, the review noted that the solid growth performance in Bangladesh during the Sixth Five Year Plan so far compares favourably not only by own historical standards, it also looks very good in international and regional comparison.
It said, Bangladesh has been among the fastest growing countries in the world during 2011-13 along with China, India and Indonesia.
“On the whole, average GDP performance in the first three years is a solid (6.4pc), but lower than the Sixth Plan target (7.3pc),” the review said.
Talking to UNB, GED member of the Planning Commission Prof Dr Shamsul Alam said the overall implementation of the Plan is about 86 percent till FY 13, which is the highest ever in the implementation of the other Five-Year plans of Bangladesh.
“So it’s a significant achievement, but I’m not happy as I wanted the GDP growth to reach more than 7.3 percent on average,” he added.
The Planning Commission member said they would try their best to accelerate the growth rate in the Seventh Five Year Plan period and attaining growth rate of more than 8 percent in the first two years of the upcoming Seventh Five Year Plan period.
“We’ll emphasise creating more human resource development, particularly in creating skilled manpower in every sector of the economy, and we’ll try for sending more people abroad for giving a boost to earning remittance,” he said.
On completion of the SFYP period in FY 15, the review also said, the success rate will be higher than any other plan period of the past.
Regarding progress with poverty reduction in line with the Plan target of reducing head-count poverty at 22.5 percent by 2015, the incidence of poverty has been declining on an average at 1.74 percentage points in Bangladesh during 2000 to 2010 as per the HIES data.
“With the trend, the estimated figure of poverty head count in 2013 was 26.2 percent, which is a significant achievement,” said the review.
It noted that prudent macroeconomic management has been the hallmark of Bangladesh’s long-term development as tax to GDP ratio, fiscal deficit, export growth, export to GDP ratio, current account balance, reserve build up and external debt management are all on track in line with Sixth Plan targets reflecting a prudent macroeconomic management.
The review suggested the government to take steps with the following priorities to create a better platform for higher growth supported by higher investment in the Seventh Plan period that includes improving the investment climate by removing the constraints identified by investors, the shortfall in public investment needs to be addressed speedily with a range of measures, including more focused and steady implementation of the tax modernisation plan, proper pricing of electricity and energy and rationalisation of subsidies.
