Govt approves 8th Five Year Plan, setting target of 11.33m new jobs

The National Economic Council (NEC) on Tuesday approved the 8th Five Year Plan (July, 2020-June, 2025), setting a target to attain 8.51 per cent GDP growth in the fiscal 2024-25 along with aiming to achieve various economic and social targets as envisioned under the country’s Second Perspective Plan (2021-2041).

NEC chairperson and prime minister Sheikh Hasina presided over the meeting virtually from her official Gonobhaban residence while ministers, state ministers and others concerned joined the meeting from the NEC conference room and the secretariat.

Like before, General Economics Division (GED) of the planning commission framed the 8th Five Year Plan, which is also the first out of the four five-year plans to be materialised under the Second Perspective Plan (2021-2041).

After the approval, planning minister MA Mannan briefed the newspersons about the plan while senior secretary and GED member Shamsul Alam presented the targets of the 8th Five Year Plan.

MA Mannan said the 8th Five Year Plan is the first of the four five-year plans which is being adopted for the implementation during the period of the second perspective plan (2021-2041).

“The plan will play an important role in achieving the Sustainable Development Goals (SDGs) and the targets of the Delta Plan-2100. Through the implementation of the 8th Five Year Plan, the country will go one step further in building a hunger-poverty free and prosperous Bangladesh,” he added.

The minister further said the government has given special consideration on the implementation of the 8th Five Year Plan based on the experience of the 7th Five Year Plan. The adverse effects caused by COVID-19 on the economy have also taken into consideration, he added.

Around Tk 64,959.8 billion will be required to implement this plan, he said, adding that out of that amount, Tk 12,301.2 billion (18.9 per cent) will be mobilised from the public sector while Tk 52,658.6 billion (81.1 per cent) from the private sector.

Out of the overall estimated amount required for implementing the Plan, MA Mannan said the government is eying to mobilise Tk 57,483.9 billion (88.5 per cent) from the domestic sources while Tk 7,475.9 billion (11.5 per cent) from the foreign sources.

He said targets have been set under the 8th Five Year Plan to attain GDP growth at 8 per cent on average per year which is expected to reach 8.51 per cent in 2025, which is also the last year of the plan.

The government is also eying to generate around 11.33 million employments during this plan period of which the number of overseas employments would be 3.25 million, he added.

Apart from this, he said, around 7.81 million fresh workforces will be added to the labour market during this plan period.

The minister said necessary strategy has been finalised under the plan to lower the poverty rate at 15.6 per cent by 2025.

Mannan said the plan also aims to raise the tax-GDP ratio to 12.30 per cent from the existing 8.90 per cent side by side recommendations are made to make further amendments to the tax law and modernise and strengthen the revenue board to boost the revenue collection as well as to reduce dependency on duty.

He also informed media that the government has set a target to increase the life expectancy to 74 years in 2025 from the existing 72.6 years.

As per the plan, the minister said, 100 per cent population will come under electricity coverage by 2021 and 30,000 MW electricity will be generated at the end of the plan.

GED member Shamsul Alam said the plan aims to increase investment to 36.99 per cent of GDP in fiscal year 2024-25 which was 31.57 per cent of GDP in 2019-20 fiscal.

He also said the government wants to increase private investment from 23.63 per cent of GDP to 27.35 per cent.

He said the private sector would have to play a leading role in growth and employment. “With that in mind, the new plan emphasises ease of doing business to grow private sector investment.”

Shamsul further said this Five Year Plan would also help the government in attaining the targets under the SDGs and the Delta Plan 2100.

The Plan highlighted ensuring quality education, universal health services measures, creating employments for the returned workers and temporary unemployed people due to COVID-19, ensuring equality for both male and female towards entering the labour market, reducing income inequality, ensuring an integrated social safety net programme, facing climate change induced risks, ensuring sustainable urbanisation and ‘Amar Gram Amar Shohor’ initiative.

A panel of economists, headed by the country’s eminent economist Wahiduddin Mahmood, alongside other renowned economists, experts and business leaders, gave necessary directives to frame the “concept note” of the plan in light of the political and economic philosophy of the government.

Later, the National Steering Committee, headed by the planning minister reviewed this concept paper and after completion of 25 background studies based on various sectors and sub-sectors and following consultations with the various stakeholders, this draft plan has been formulated.

The National Steering Committee in its last meeting on 13 December this year recommended for implementing the 8th Five Year Plan. The draft Plan was also placed before the prime minister on 23 December for her appraisal.