A thriving private sector is the backbone of any successful economy
It is undeniable that the Bangladesh economy of today would not have been made possible without the contribution of our vibrant and booming private sector.
Our continuous economic upturn over the last two decades can be attributed to our young and creative entrepreneurs, as much as it can be to the government.
Having said that, the environment for investment -- especially with regards to the private sector -- can be improved. As it stands, credit flow for private businesses is woefully inadequate, somewhere between 9% and 10% -- the biggest reason why private sector investment has yet to be at a level that can be considered satisfactory.
Even though GDP growth has achieved consistent growth, private investment has remained utterly stagnant, usually staying within the 22% to 23% of GDP.
This needs to change.
Given our country’s ambitious economic goals, if we fail to prioritize our private sector appropriately, it could drastically slow down our growth trajectory. To that end, the percentage of credit flow to the private sector needs to be increased without any hesitation, while also cutting down lending rates to single-digits.
It also does little to help matters knowing that the banking sector is undergoing a period of crisis at the moment, but any faults lie within itself.
It is never a good idea to prop up loss-making SOBs -- which have decades of non-performing loans to their names -- yet the government keeps bailing them out, regardless.
A thriving private sector is the backbone of any successful economy.