• Saturday, Nov 17, 2018
  • Last Update : 02:05 am

Budget FY19: Investment will be 33.54% of GDP

  • Published at 02:22 pm June 7th, 2018
  • Last updated at 02:24 pm June 7th, 2018
web-investment-gdp-bigstock-edited-07-06-2018-1528359239484.jpg
Bigstock

Of the total, private investment will be 25.15 % of GDP, while 8.39% will come from public investment

Finance Minister AMA Muhith has proposed scaling up total investment to 33.54% of total GDP in the next fiscal year to achieve the country’s economic targets.

The minister made the announcement in proposing a budget on Thursday to parliament, of Tk4,64,573 crore for fiscal year 2018-19, the last year of the incumbent government’s term.

Of the total, private investment will be 25.15% of GDP while 8.39% will come from public investment.

Muhith also set a GDP growth target of 7.8% for the economy in the budget.

“We are seriously reviewing the fact that despite building an investment friendly infrastructure, development of the energy sector, necessary facilities and support for setting up industry, simplifying the rules and regulations, foreign direct investment and private investment did not pick up as expected,” he said.

“We have taken steps to identify the obstacles and are taking actions for their removal. I firmly believe that with the ushering in of a stable and advanced economy after 2015, we will be able to promote further investment while attracting more foreign investment.”

The minister said: “One of the pre-conditions for rapid economic development is increased investment. We are gradually increasing public investment.”

“However, the purpose of this investment is to create an investment supporting environment for the private sector. Availability of electricity, gas, and water connections, timely processing of investment proposals, availability of undisputed land etc. play crucial role in attracting private investment.”

By making these services easily available to investors, the Bangladesh Economic Zones Act was enacted in 2010 to establish economic zones in potential areas to expand and develop export oriented industries and attract foreign investment.

Following suit, the Bangladesh Economic Zone Authority (BEZA) was also established by the Prime Minister’s Office in 2011 and the Private Economic Zone Policy 2015 was formulated.

“Our mission is to establish 100 economic zones on 30,000 hectares of land by 2030,” Muhith said on Thursday.

He said the establishment of 76 economic zones has been approved so far and Prime Minister Sheikh Hasina inaugurated 10 of them, where foreign and local investors have started setting up industries.

Saying development work at another 26 economic zones was underway, the minister said each of these zones was being made environment friendly with green afforestation, following the prime minister’s directives.

“I hope, after the establishment of the economic zones, export earnings will increase by an additional $40 billion and 10 million more jobs will be created.”