Ecnec approves five projects of Tk 59.16 billion

Private sector investment is facing stagnancy due to political instability, uncertainty, and rising interest rates, said Planning Adviser of the interim government Prof Dr Wahiduddin Mahmud.

Production in the private sector is struggling, with protests in many factories, hindering job creation, he said.

He warned that failure to accelerate public investment may lead to economic recession. "There has been some stagnation in economic activities, with inflation rising. There will be no new employment and rise in wages if economic activities are not expanded."

The adviser made the remarks at a press briefing in the capital on Monday following the meeting of the Executive Committee of the National Economic Council (ECNEC).

Chief Adviser Prof Dr Muhammad Yunus, also chairperson of ECNEC, presided over the meeting at the NEC auditorium.

Dr Wahiduddin Mahmud said that the meeting approved a total of five development projects with an estimated cost of Tk 59.16 billion.

The planning adviser noted that the rate of ADP implementation in the first four months of the current fiscal year dropped below 8 per cent and blamed postponement of allocation for some development projects for the lowest ADP turnout in 15 years.

"The Advisers' Council has decided to expedite ADP implementation based on projects which have been deemed rational and beneficial to the economy. Some new innovative projects focusing on technology, skill development, health and education will be formulated," he said.

He also said that a huge number of project directors have either quitted their responsibilities or escaped due to involvement in widespread corruption. The government will expedite implementation of such projects appointing new project directors, he said.

Of the total Tk 59.16 billion, Tk 10.96 billion will come from the government funds and Tk 47.88 billion from foreign funding.

The approved projects are: Extension and Improvement of Eastern Grid Network under the Ministry of Power, Energy and Mineral Resources, Capacity Building of Universities in Bangladesh to Promote Youth Entrepreneurship Project of the education ministry, Modern Waste and Oil Removal Management Project of Mongla Port by the shipping ministry, Chattogram Sewerage System Development (catchment 2 and 4) project by local government, rural development and cooperatives ministry and Emergency Multi-sector Rohingya Crisis Response (2nd amendment) project by the disaster management and relief ministry.

Additionally, the proposal to extend the duration of two projects without increasing their costs has also been approved.

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