The New Nation - Internet Edition

Staff Reporter

Finance Adviser Dr Mirza Azizul Islam Thursday refused to accept that the business community is still suffering from lack of confidence to the detriment of economy.

"I don't believe that there was lack of confidence and that still prevails," he told reporters Thursday at his Planning Ministry office after a meeting with US executive director of Asian Development Bank (ADB) Curtis S Chin.

Pointing to the major economic indicators Dr Aziz said the economic indicators of first five months of the current fiscal year reflected a good sign of the economy. It does not manifest the business community still lacking confidence, he said.

"We have made some reforms in various institutions and some other institutions like Bangladesh Better Business Forum and Regulatory Reform Commission set up to make the environment more conducive for the business people," he added.

The Adviser further said industrial term lending increased 42 percent during the first five months of the year. Credit to the private sector and agriculture sector has jumped.

He, however, admitted that import of capital goods declined during the period. "We can explain that domestically produced instruments might have replaced the imported ones," he said.

Dr Aziz said that import during the first five months increased by 17 percent with 16.4 percent rise in industrial raw materials. Remittance flow increased by 20.5 percent and agricultural credit by 20 percent.

He also said nationalized commercial banks (NCBs) have already disbursed Tk 1300 crore for agriculture during the period, which is the highest ever.

Replying to another question the Adviser said call money rate increased in the recent times. "How can you say idle money is lying in banks and confidence is lacking in business community," he posed a counter question.

About his meeting with US executive director of ADB, Dr Aziz said they have discussed present situation of the country, priorities of the government and role of ADB in the context of the situation.

"He (Curtis S Chin) appreciated the government's move towards good governance and priority list to establish a sustainable economy in the country," he said.

The ADB official stressed the need for promoting entrepreneurship to have a sustainable economy.

The government has to ensure strong atmosphere, better infrastructure including physical and good governance for the private entrepreneurs, he said.

ADB country director Hua Du was also present during the meeting.