The New Nation - Internet Edition

The country is experiencing an economic stagnation when the investment climate is going down. It is observed that the devastating flood might exacerbate the hazards as people at the grass root level are becoming jobless. In post-flood rehabilitation expenditures must have positive impact on job creation and overall economic development

Economists suggest to remove uncertainty and generate confidence among the investors as early as possible. They recommend to cut lending rate to ensure proper utilization of the surplus liquidity in the banks.

Bank credit dropped to 192.93 billion taka ($2.8 billion) between July 2006 and April 2007, compared with 290.57 billion taka a year earlier.

Sources in the central bank said private-sector credit dropped to 153.47 billion taka from 157.24 billion taka. Farm credit dropped to about 24 billion taka from 85 billion taka, a year-earlier. Credit extended to state-run enterprises dropped to just 14.12 billion taka in the latest period from 43.39 billion taka, a year-earlier.

The Asian Development Bank (ADB) said a few weeks ago that rising inflation, slow investment and high global oil prices could hinder Bangladesh’s hopes of achieving economic growth of 7 percent in the current fiscal year.

“Unless Bangladesh can contain inflation and increase investment it may not be possible to achieve the targeted economic growth,”

Investment is a must to help substitute import, add to export earnings, increase production, create new employment opportunities to defuse social tensions and contribute significantly to GDP growth.

This is possible only if the government restores the confidence that the business community has lost and relieves them of their fear and insecurity. We feel strongly that the government can take the business community in confidence and motivate them to continue with investment