The New Nation - Internet Edition

Staff Reporter

The World Bank Vice President for South Asia region Praful C Patel said the next parliamentary election is important for maintaining the economic growth and development in Bangladesh.

"If the smooth transition of power, as per the road map, does not happen than it will hamper the economy and investment," he told the media at a press briefing organised by the international lending agency at a city hotel yesterday.

He said for the last five years Bangladesh has performed well in maintaining its economic growth despite natural disasters.

He also said that smooth transition of power as well as sustainable democracy could move the country forward further for maintaining the present economic growth.

The country is maintaining a steady 6 per cent economic growth despite severe natural disasters. Political stability as well smooth transition of power to the elected government could maintain the present economic growth.

Bangladesh will be a middle-income country by achieving 7 per cent growth within the next decade, if it maintained the present rate of economic growth through political stability, he added.

He said the investment in the human sector development should be continued for keeping the on going progress in health and education sectors.

He laid emphasis on infrastructure development like transport, power and energy sectors.

Mentioning the high food price as a global crisis he said the sharp rise in food prices had caused serious impact on food consumption and nutrition of poor people in the country.

He said the World Bank would continue to provide financial support to Bangladesh in social protection programmes and agriculture.

Replying to a query on the fiscal deficit Praful said, " I think 5 per cent is high fiscal deficit " he said and expressed his reservation on the success of Employment Guarantee Scheme of the Government.

He said the international lending agency would continue to support Bangladesh Government in easing its budget pressure.

On the issue of high fuel price he said the rich people are getting huge benefits from the Government subsidy on fuel. He said it is up to the Bangladesh Government whether to increase the fuel price or not.

Patel reiterated that the World Bank is committed to assist Bangladesh in mitigating climate change and improve natural disaster management.

He said in the coming years the bank will significantly scale up its activity on both adaptation and mitigation of climate change in Bangladesh. This include rehabilitation of recent cyclone affected areas, coastal zone management and building embankment and shelters.

Asked to comment on holding the local government elections before parliamentary polls declared by the government despite strong opposition from main political parties he replied, "It is not my business to comment. It is absolutely the internal matter of Bangladesh,".

He lauded the Government's on going anti corruption drive and reforms in different sectors.