The country’s GDP growth is estimated to reach 10% in 2021 as Finance Minister AMA Muhith yesterday spelt out a strategy to transform Bangladesh into a middle income country by this time.
In continuation of the government’s past strategy, it would attach priority to the power, gas and port development, he said placing the budget for the next fiscal year in parliament.
“We will increase power generation from the present 10,000 MW to 24,000 MW and ensure that the real supply does not fall below 80% of actual generation,” he said.
The government has expected to increase the share of industrial sector in the national growth from 25% to 40% attaching high priority to small and medium enterprises and taking necessary steps to improve the skills of workers to increase industrial productivity.
To attract private investment for infrastructure development, the government would encourage implementation of projects through Public Private Partnership initiative as 34 projects involving Tk11,138 crore under six sectors had already been approved in principle and advisers/consultants had been engaged for 33 projects.
“In fact, this is the first step towards project implementation,” said Muhith, hoping that the legislation on PPP would be laid before the parliament shortly.
The government would create investment-friendly environment and continue essential institutional reforms in an attempt to bring down the cost of doing business. Effective measures would be taken to reduce interest rates with a view to increasing private sector credit flow that would eventually boost investment.
The scarcity of land is a major impediment to the development of industrial sector. Special allocation had, therefore, been proposed in the budget for the next fiscal year for land acquisition for big projects.
A number of measures, including stimulus packages, would be taken for readymade garment, pharmaceuticals, shipbuilding, leather and IT sectors to add further momentum to export sector. Steps would be taken for product and market diversification in export sector.
“We will continue providing incentives for agricultural sector and take initiative to increase milk, meat and egg production,” said the minister.
The government would take measures to develop the skills of workers and continue with the process of generating employment and increasing remittances by exporting skilled manpower. A fund of Tk50 crore would be created to implement the commitment for skills development.
Steps would also be taken to make sectors like rural infrastructure, rural housing, sanitation, land and water, fisheries and livestock, rural electrification and rural non-agricultural small and medium enterprises (SMEs) more dynamic in future.
