Muhith expresses concern over slow investment

UNB, Dhaka

The government has been cautioned of a possibility that the private sector might try to turn projects under public-private partnership (PPP) into Publicly Financed Private Projects (PFPP).Speakers at a roundtable here on Wednesday raised the concern along with other budget implementation issues while the government is busy formulating a guideline for the PPP.Addressing the meeting, Finance Minister AMA Muhith dispelled the concerns over implementation of Annual Development Programme (ADP), PPP, revenue targets and deficit financing.He, however, expressed concern over slow investment and infrastructure bottlenecks as the downside risks of development.Centre for Policy Dialogue (CPD) organized the roundtable titled "Delivering on Budget FY2009-10: A set of Implementation Issues" at the CIRDAP auditorium.Former Finance Adviser Dr Mirza Azizul Islam, senior bureaucrats, former bureaucrats, economists, academics, civil society members and representatives from private sector took part in the discussion, moderated by CPD chairperson Prof Rehman Sobhan.CPD distinguished fellow Dr Debapriya Bhattacharya presented the keynote paper discussing issues relating to budget implementation from the macroeconomic perspective. CPD reminded that implementation of the budget remains dependent on the overall state of good developmental governance of the country.The Finance Minister expressed concern over the stagnant investment scenario and wondered as to why investment is not taking place in the country although the "fear factors" have been removed by now."There are some uncertainties over the global recession and poor energy and power situation," he, however, said.In response to an apprehension over releasing the stimulus funds, he said Bangladesh Bank would soon make available the data in this regard. He added that the government would review the budget after six months and reallocate the funds, if necessary.Muhith said the government would also review the Poverty Reduction Strategy Paper (PRSP) for three years keeping in mind the goals of the 5-year plan now under preparation."The biggest task now is inspiring the administration and the people to help implement the budget."