Stalemate in investments due to instability, chaos: Planning adviser

The adviser for education and planning ministries, Wahiduddin Mahmud, has said there has been a type of stagnation in economic activities, while high inflation is disrupting lives.

Speaking to reporters after an Executive Committee of the National Economic Council (ECNEC) meeting on Monday, the adviser highlighted the challenges posed by high inflation, dwindling purchasing power, and reduced economic activity.

He said the inflation rate is high. It is undeniable that prices are beyond the reach of common people, and it is disrupting the people’s regular lives.

“If economic activities are not initiated, it would create trouble. Sales in rural shops are declining, while people’s incomes and expenditures have shrunk,” he noted.

The meeting, held in the NEC conference room, was presided over by chief advisor Dr Muhammad Yunus.

Wahiduddin Mahmud said lack of fresh investments and implementation of the annual development programme (ADP) may lead to an economic recession. “There has been a stalemate in private investments, due to political unrest and chaos. It has become tough to maintain the current production level. Meanwhile, workers have been protesting with various demands.”

A confidence deficit developed in the business community following the inception of the interim government. Also, inflation has been above 10 per cent due to high commodity prices. It is inflicting hardships on the people, he added.

The planning adviser said they, after taking office, took a decision to pass projects through rigorous scrutiny. It reduced the project flow.

Also, project implementations have been sluggish. Only 8 per cent of the ADP has been implemented in the first four months of the 2024-25 fiscal year.

“Now, it has been decided to take initiatives to implement the priority projects as soon as possible. Allocations will be made in the revised ADP accordingly,” he added.

Wahiddun Mahmud revealed that the director of the Matarbari project fled following the political changeover. He even sold off different government properties before leaving. “Therefore, I can say for sure that the project director was involved in corruption. Directors of many projects have been traceless since the change in power.”

He also assured that the education and health sectors would receive greater allocations in the upcoming budget. “Allocations will not just focus on infrastructure but also prioritise educational equipment and research.”

The ECNEC approved five projects in the meeting. Those are – expansion and capacity building of the eastern grid network, capacity building of universities in Bangladesh to promote youth entrepreneurship, modern waste and spilled oil management at Mongla Port, development of sewage system in Chattogram, and emergency multi-sector Rohingya crisis response project.