• Sunday, Sep 20, 2020
  • Last Update : 01:45 am

Let it flow

  • Published at 12:00 am January 16th, 2020
Economy
Photo: BIGSTOCK

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.

67
65
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail