UNB, Dhaka :
The National Economic Council (NEC) on Tuesday approved the 7th Five-Year Plan (FY2016-FY2020) aiming to accelerate employment generation and reduce poverty through substantially increasing FDI inflow and maintaining a growth rate of 7.4 percent on average over the five-year period.
The approval was given at a meeting of the NEC held at the NEC conference room with its Chairperson and Prime Minister Sheikh Hasina in the chair.
Briefing reporters after the meeting, Planning Minister AHM Mustafa Kamal said the Prime Minister directed the authorities concerned to frame the next Perspective Plan (FY21-FY40) to be implemented through four five-year plans to materialise the country’s vision to become a developed one by 2041.
During materialisation of the 7th Five-Year Plan, the minister said, fast track projects will be implemented as per schedules to help move the country to a trajectory of higher growth.
The plan also aims to empower people by creating jobs and skill development opportunities, supply credit for SME development and many other ways to people for becoming more productive. It will also emphasise social protection, urban transition and a sustainable development pathway resilient to disaster and climate change.
Member of General Economics Division (GED) of the Planning Commission Prof Dr Shamsul Alam presented the summary of the 7th FYP
(2016-20). The theme of the 7th FYP is ‘Accelerating Growth, Empowering Citizens’. Apart from attaining average growth rate of 7.4 percent over the period, the plan also seeks to raise the GDP growth rate progressively from 6.5 percent in FY2016 to 8 percent by FY 2020.
It is estimated that some 12.9 million additional jobs will be available during the five-year period, including 2 million abroad. Again, the plan seeks to reduce poverty rate from 24.8 percent to 18.6 percent and extreme poverty to around 8.9 percent by FY2020.
Mustafa Kamal stressed that the FDI inflow in Bangladesh needs to be increased from the current level of about 1 percent of GDP to 3 percent for achieving the financing of the investment target of the 7th Five-Year Plan.
He said utmost importance would be given to research and expenditure. Again, public spending on social protection will be increased from 2.02 percent of GDP to 2.3 percent of GDP by FY2020. The 7th FYP will emphasise human resource development, enhancing social equity through inclusive growth and ensuring the sustainability of growth through continued macroeconomic stability and protection of the natural environment.
The other key highlights of the 7th FYP include increasing the contribution of the manufacturing sector to 21 percent of GDP by 2020, substantial improvement of exports to $54 billion, achieving a trade-GDP ratio of 50 percent by FY20, raising total revenue collection from 10.7 percent of GDP to 16.1 percent by FY20, public expenditure to 21.1 percent by FY20, FDI inflow to $ 9.6 billion by FY20, power generation capacity to 23,000 MW by 2020, power coverage to 96 percent, productive forest coverage to 20 percent, and increasing land zoning for sustainable land and increasing earnings from ICT, travel and tourism from $ 1.5 billion to $ 6 billion.
The National Economic Council (NEC) on Tuesday approved the 7th Five-Year Plan (FY2016-FY2020) aiming to accelerate employment generation and reduce poverty through substantially increasing FDI inflow and maintaining a growth rate of 7.4 percent on average over the five-year period.
The approval was given at a meeting of the NEC held at the NEC conference room with its Chairperson and Prime Minister Sheikh Hasina in the chair.
Briefing reporters after the meeting, Planning Minister AHM Mustafa Kamal said the Prime Minister directed the authorities concerned to frame the next Perspective Plan (FY21-FY40) to be implemented through four five-year plans to materialise the country’s vision to become a developed one by 2041.
During materialisation of the 7th Five-Year Plan, the minister said, fast track projects will be implemented as per schedules to help move the country to a trajectory of higher growth.
The plan also aims to empower people by creating jobs and skill development opportunities, supply credit for SME development and many other ways to people for becoming more productive. It will also emphasise social protection, urban transition and a sustainable development pathway resilient to disaster and climate change.
Member of General Economics Division (GED) of the Planning Commission Prof Dr Shamsul Alam presented the summary of the 7th FYP
(2016-20). The theme of the 7th FYP is ‘Accelerating Growth, Empowering Citizens’. Apart from attaining average growth rate of 7.4 percent over the period, the plan also seeks to raise the GDP growth rate progressively from 6.5 percent in FY2016 to 8 percent by FY 2020.
It is estimated that some 12.9 million additional jobs will be available during the five-year period, including 2 million abroad. Again, the plan seeks to reduce poverty rate from 24.8 percent to 18.6 percent and extreme poverty to around 8.9 percent by FY2020.
Mustafa Kamal stressed that the FDI inflow in Bangladesh needs to be increased from the current level of about 1 percent of GDP to 3 percent for achieving the financing of the investment target of the 7th Five-Year Plan.
He said utmost importance would be given to research and expenditure. Again, public spending on social protection will be increased from 2.02 percent of GDP to 2.3 percent of GDP by FY2020. The 7th FYP will emphasise human resource development, enhancing social equity through inclusive growth and ensuring the sustainability of growth through continued macroeconomic stability and protection of the natural environment.
The other key highlights of the 7th FYP include increasing the contribution of the manufacturing sector to 21 percent of GDP by 2020, substantial improvement of exports to $54 billion, achieving a trade-GDP ratio of 50 percent by FY20, raising total revenue collection from 10.7 percent of GDP to 16.1 percent by FY20, public expenditure to 21.1 percent by FY20, FDI inflow to $ 9.6 billion by FY20, power generation capacity to 23,000 MW by 2020, power coverage to 96 percent, productive forest coverage to 20 percent, and increasing land zoning for sustainable land and increasing earnings from ICT, travel and tourism from $ 1.5 billion to $ 6 billion.
