UNB, Dhaka :Centre for Policy Dialogue (CPD) on Saturday said Bangladesh needs to regain momentum in private investment through reforming financial institutions and removing political uncertainties if it wants to take the GDP growth to ‘Super Bangla Growth’ rate of 8 percent from the existing 6 percent.The civil society think tank said the reform of the country’s financial institutions is essentials to boost private investment and check money laundering, especially siphoning off.”The GDP growth has remained stuck at 6 percent for years. The 6 percent growth rate can be called as ‘Bangla Growth’. If we want to go to hit ‘Super Bangla Growth’…8 percent, we’ve to increase private investment,” CPD distinguished fellow Dr Debapriya Bhattacharya told a press briefing on State of the Bangladesh Economy in FY 2014-15 at Cirdap auditorium.Dr Debapriya said attaining 8 percent growth is challenging one but not impossible. To achieve the target, the rate of private investment should be raised to 25 percent from the existing 18 percent.He said, the private investment has remained stagnant since the January-5 parliamentary elections despite a peaceful political environment, stable economy and stable international market. The CPD fellow said political uncertainty still looms large in the new calendar year, and the room for political coexistence and freedom of expression are shrinking day by day.”On one hand, there’s no growth in private investment and siphoning off money on the other. In 2012, $ 1.8 billion was siphoned off from Bangladesh,” he said.Speaking at the function, CPD Executive Director Prof Mustafizur Rahman said though a peaceful environment was restored after the January-5 elections, the uncertainty is still there in investors’ minds and that has to be removed. “We need to be careful so that the country doesn’t slip into political turmoil again. We need a political consensus and environment of inclusiveness,” he said.About the reform of financial institutions, Prof Mustafizur Rahman said, “Our institutional capacity couldn’t catch up with the pace of economic development.”He said, Bangladesh thinks only about the remittance inflow, but it is not aware about remittance outflow. “Bangladesh is the fifth highest remittance source of India according to an Indian study. If the institutional capacity doesn’t improve, the economy will be facing various challenges because of its size and depth.”The CPD assessment report titled ‘State of the Bangladesh Economy in FY 2014-15’ said a conducive political environment that generates confidence among entrepreneurs, and inclusive politics that ensures predictabilities and business-friendly environment, will be the key determining factor for stimulating private sector investment and regaining the growth momentum as the economy enters the second half of 2014-’15 fiscal year.The report observed that the Bangladesh economy experienced relative macroeconomic stability in the 2014 FY, but the much-needed investment acceleration to spur GDP growth rate to a higher trajectory remained wanting.
