May 24, 2013 | 04:12 PM (BD Time)
24 May, 2013 Friday
Pol uncertainty threat to economic growth
. Staff Reporter
Analysts on Saturday expressed the view that Bangladesh may not achieve the desired economic growth attached in its 'Sixth Five Year' plan- 2010-21' if an unfavour-able investment climate persists in the country.
The plan has envisaged an average GDP growth of 7.3 per cent for the country per annum.
"A congenial investment climate largely influenced by the political stability coupled with smooth supply of energy. But, we are in serious lack on it," Prof Mustafizur Rahman, Executive Director of Center for Policy Dialogue (CPD) told The New Nation yesterday.
He added: "Confronta-tional politics as well as energy crisis remained major bottlenecks for Bangladesh's growth and both the factors kept on deteriorating in the recent times."
Prof Mustafiz said that it will make the country's investment climate stagnant and the investors will put hold their business decision due to the unfavorable business climate.
He added that the plan has also targeted to raise the investment to 28 per cent plus from the present level of 24 per cent will be a big challenge in the present socio-ecomic context.
"Bangladesh economy has the potential and can grow in line with the projection, once a congenial investment and political atmosphere could be ensured," said Abdus Salam Murshedy, president of Bangladesh Exporters Association (EAB).
He also expressed concern over the rising political tension in the country saying that it will definitely hurt economic growth of the country.
“Bangladesh will also miss the desired industrial growth target attached in its 'Outline Perspective Plan- 2010-21' if such adverse socio-economic condition persists in the country," Murshedy opined.
The plan set a target of increasing contribution of industrial sector to 40 per cent in the Gross Domestic Products (GDP) from the present rate of 28 per cent within the year 2021.
Contribution of employment generation from the sector has also been raised to 25 per cent to the GDP from the present rate of 16 per cent, according to the plan.
The EAB leader noted that if Bangladesh is to increase the share of factory output in its economic activities, it will need to have a congenial business environment and adequate power and gas.
Responding about the recent political turmoil, he said, "We are in grip of serious political crisis and it kept on affecting overall trade, business and investment."
The business leader urged the political parties to refrain from destructive political culture for the betterment of the country.
"Please find an alternative solution instead of enforcing hartals for the sake of the economy," he added.
Art and Culture
Focus on Chittagong
Fashion & Beauty
Food and Drink
Law and Justice
New Nation Supplement
Editor: Mostafa Kamal Majumder, Adviser Editor: A.M. Mufazzal, Printed and Published by Mainul Hosein from the New Nation Printing Press, 1.R.K Mission Road, Dhaka-1203 Phones: New Nation PABX: 7122654, 7114514, 7122655, Fax: 880-2-7122650, 9512775 email: firstname.lastname@example.org, email@example.com for advertisement, firstname.lastname@example.org