Investment needed to attain middle-income status: MCCI

Speakers at a discussion here on Sunday said the private investment in the country needs to have a major boost for the fulfillment of the national goal to achieve the middle-income status by 2021. They also observed that the political uncertainties will continue to pull the investment-GDP ratio of the economy back.
The discussion on the budget bill for fiscal 2013-14 was organised by Metropolitan Chamber of Commerce and Industry (MCCI) at its office.
In his keynote presentation, Policy and Research Institute executive director Ahsan H Mansur pointed out that on the third year of the Sixth Five Year Plan (SFYP), the investment level still remains at about 26 percent, compared to the target of 29 percent of the GDP in fiscal 2012-13.
“The shortfall in the GDP growths with the SFYP targets over the last three years virtually mirrors the images of the shortfall in private investment relative to investment target,” he said.
“The growth performance is hard hit by the political turmoil and associated general strikes in the country resulting in low business confidence. And the constant decline in investment and domestic demand are reflected on the decline in GDP growth,” he said.
Speaking on the occasion, BNP chairperson’s advisor Osman Farruk said compared to the targets of the SFYP, the economy is at a ‘growth slippage’.
He noted that despite good macro-economic management since the 90s, the growth of the economy has not been dynamic and up to the potential.
“We reached a 5.9 percent GDP growth in 1990. So, there’s no scope for indulging in complacency over a 6 percent GDP growth in recent years. The investment-GDP ratio during the time period has only increased from 19 to 26,” he said.
Industries Minister Dilip Barua on Sunday said all the political parties should reach a consensus on certain issues, including the peaceful transfer of power, for the sake of the country’s economic progress.The discussion was held with MCCI president Rokeya Afzal Rahman in the chair. (Source: UNB)

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