Dhaka, Bangladesh (BBN) – Businessmen urged the government Monday to start implementation of the Annual Development Program (ADP) immediately to boost investment, particularly in private sector.
“The government should start implementation of the ADP immediately which will boost up the private investment as well,” former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s apex trade body, Mir Nasir Hossain told BBN in Dhaka on Monday.
The Bangladesh government set to BDT 305 billion target for implementation of the ADP for fiscal 2009-2010, beginning July 1, 2009.
The observation came after the announcement of new monetary policy by the Bangladesh Bank (BB), the country’s central bank, aiming to boost investment maintaining easy credit condition to offset impact of global recession on the economy.
Mr. Hossain, who is also chairman of the Eastern Bank Limited, said the pressure on excess liquidity in the banking system will not ease without promoting investment in deferent sectors.
“Excess liquidity is a burden for the banks,” he said, adding that multi-dimensional problems would be created if the pressure on excess liquidity continues.
The BB’s latest monetary policy is aimed at “facilitating economic growth through more investments in the real sectors like agricultural and small and medium enterprises (SMEs).”
The central bank of Bangladesh unveiled its half-yearly monetary policy on Sunday aiming to achieve six per cent economic growth in the current fiscal while keeping inflationary pressure under control.
President of the Bangladesh Garment Manufactures and Exporters Association (BGMEA) Abdus Salam Murshedy sees that the projected economic growth would not be achieved without solving infrastructural inadequacies particularly gas, water and electricity.
“The government should take a crash program to develop infrastructural facilities for achieving economic growth by the end of this fiscal,” the BGMEA chief added.
Bankers urged the central bank governor that the BB should take measures relating to bank interest rates, charges and fees through consultation with them.
“It will be better if steps are taken regarding rationalizing interest rates, charges and fees of the banks through further discussion with the stakeholders,” Vice-Chairman of the Association of Bankers, Bangladesh (ABB) Mohammad Nurul Amin said.
The central bank is keeping close watch on market behavior of banks and shall appropriately redress the downward stickiness of lending interest rates by instilling competitive loan pricing practices in the market, the BB said in its monetary policy.
BBN/SS/SI/AD-21 July09-3:46 am (BST)
