Credit burden won’t be risky for Bangladesh: World Bank
World Bank Dhaka office Lead Economist Dr. Zahid Hussain said, the economic advancement of Bangladesh is continuing on the highway of middle income countries and is also expanding rapidly. To attain the achievement deficit in the revenue sector has increased. It may also increase in future. But due to increase of deficit the burden of credit for Bangladesh will not turn risky or unbearable.
A report was published on Bangladesh’s development at World Bank Dhaka office at Agargaon in the capital on Tuesday. There he said these.
World Bank Country Director Qimiao Fan, Executive Director of Policy Research Institute (PRI) Ahsan H Mansur, Executive Chairman of PPRC and economist Dr. Hossain Zillur Rahman and others were present in the program.
While presenting the report Dr. Zahid said, recently World Bank and International Monetary Fund have performed a sustainability analysis, which showed that the loan of Bangladesh taken from internal sources and outside the world against the proportion of GDP, possibly may not turn risky.
But there is risk if the export market is slowed down, specially in Europe and USA. Besides, the initiatives that are taken for economic development, if obstacle is created there, then the advancement will fall into risk.
The report said, the economic advancement of Bangladesh is continuing on the highway of middle income countries and is also expanding rapidly. But some reforms are needed in this regard. As well as stability is needed. For this purpose short, mid and long term reforms are needed.
Of these challenges some steps should be taken such as, keeping inflation under control, proper management for monetary exchange rate, turning interest rates market based, development of revenue collection and dexterity over use of revenue in government expenditure.
Besides, there are some big challenges remaining. Of those there are- diversification of export, increase of investment in private sector in proportion with GDP, increase of efficiency in power production and use.
Of the long term challenges there are- human resource development, city management, ensuring everybody’s participation to attain economic growth and protecting the environment.
Zahid Hussain said, the size of Bangladesh’s economy is expanding. Industry and growth of construction sector are working as the power house of this expansion. But there are some pressure created in macroeconomic sector.
Bangladesh has to face the pressures. Such as, inflation in non-food commodities, increase of deficit in the current sector, increase of bank interest rate due to liquidity crisis and increase of deficit in revenue sector.
He said, though private sector investment is stagnant in proportion with GDP but it is increasing slightly. It may be hoped that this will increase in future. Government expenditure will increase in some big projects in infrastructure sector. Pressure may be created in budget for capital deficit in banking sector specially in nationalized banks due to loan default and Rohingya issue.
Bangladesh moved forward in export and remittance in last year. He hoped that it will continue in the current year and said, if these happen then continuity of growth will be maintained. In the near future the pressures that remain in macroeconomics will not prevail.