Transparency back, employment and investment on back burner

Numerous healing measures taken by the post-uprising government in remedying some daunting challenges on the economic front bear fruit but a pickup in investment and employment eludes aspirations, experts say.

"The government has done good job in bringing transparency in financial and banking sector, reducing the import-driven inflation and in stabilising the external sector," says Dr Mostafizur Rahman, Distinguished Fellow of the Centre for Policy Dialogue (CPD), as the stand-in rulers of Bangladesh complete one year in office.

There is an effort to ensure transparency, accuracy and clarity in fiscal data, which is necessary for making proper policy decision, he notes.

"There were also initiatives in bringing good governance in the banking sector through legal amendments, and we have seen changes in bank boards to ensure discipline," he adds.

Also-the economist goes on counting the positives in this interim government's financials-the government has been active in recovering default loans and laundered assets, and as a result, assets of many launderers were frozen in many countries, which is laudable.

"There is also success in external sector-in boosting foreign-currency reserves and in debt payment."

However, what is frustrating is it fails in spurring a pickup in investment and employment, opines Dr Mostafiz.

Employment generation was a key promise in terms of the spirit of the regime-changing July upsurge as youths remain unemployed but, he feels, it could not be done for a lack of desired investment.

"Even we have not seen any significant steps in the budget to revamp investment and employment-and the budget was formulated in traditional framework," the policy think-tank fellow points out.

Another major matter on the downside is an incomplete drive to reform the revenue sector, he told The Financial Express, adding that in the present context, expanding the direct-tax net and augmenting revenue from it is a must .

"Otherwise, the country's debt would continue to rise," he argues, noting that though the government has initiated move to reform the NBR, it could not reach a "logical conclusion".

However, dwelling on the success of the interim government, the Press Secretary to the Chief Adviser, Shafiqul Alam, has pointed out that a shattered economy has rebounded-food inflation has been halved from 14 per cent, overall inflation dropped to 8.48 per cent (the lowest in 35 months), a record USD30.33 billion in remittances recorded, exports rose by 9.0 per cent and, for the first time in a year, the taka has strengthened against the US dollar.

The banking sector has also stabilised, he said in a statement on the one-year account of the interim government headed by Nobel-laureate microfinance pioneer Prof Muhammad Yunus.

About gains in trade and investment, he said, "Successful trade-tariff negotiations were concluded with the United States (despite some experts claiming that a weak government couldn't manage this), and large-scale foreign direct investment was secured-including USD250 million by the Handa Group in textiles, creating 25,000 jobs".

The FDI inflow has doubled compared to the previous government's tenure. Chinese investors are now entering Bangladesh, he added.

On the dos in migration sector he said, "Visa issuance has resumed with the UAE, and a multiple-entry visa scheme has been launched with Malaysia. Undocumented workers in Gulf countries are being regularised. A new plan is in motion to send 100,000 youths to Japan, and more workers to Italy, South Korea and Serbia-expanding opportunities for overseas Bangladeshis."

He further states that in the last one year the Bay of Bengal has been declared a core national asset for a "blue economy".

"Efficiency at Chattogram Port has increased (handling over 225 containers daily). Coastal development plans have been expanded, and global partnerships have been forged for deep-sea fisheries and industrial projects."

mirmostafiz@yahoo.com