PM for availing more foreign funds for project financing

Prime Minister Sheikh Hasina on Tuesday asked the authorities concerned to emphasize more on availing funding from the foreign sources alongside the local funding to ensure project financing.

She also noted that if the trend on timely implementation of foreign-aided projects increases, then disbursement of foreign loans would increase which would also put an impact on the foreign currency reserves.

The Prime Minister gave the directive while chairing a meeting of the Executive Committee of the National Economic Council (ECNEC) held today at the NEC Conference Room in the city's Sher-e-Bangla Nagar area.

Briefing reporters after the meeting, Planning Minister MA Mannan said that the premier asked the concerned authorities, including the Economic Relations Division, National Board of Revenue (NBR) and the Finance Division to ensure that the government uses more foreign funding and foreign loans to finance development projects which will also enhance the foreign currency reserve.

He also said that development partners like the World Bank, ADB and JICA are ready to extend more supports, including budget support to Bangladesh, but the government would take those as per its necessity and capacity.

State Minister for Planning Dr Shamsul Alam said that more than $50 billion of foreign assistance is in the pipeline.

The planning minister said that a total of 16 projects were approved today in the ECNEC meeting involving an overall estimated cost of Taka 24,362.14 crore. "Of the total project cost, Taka 12,873.11 crore will come from the government of Bangladesh exchequer, Taka 16.15 crore from the organization's own fund and the rest Taka 11,472.88 crore from project assistance.

Of the approved 16 projects, eight are new while eight are revised projects.

Revealing some other directives given by the Prime Minister in the meeting, the planning minister said that the premier asked all concerned to pay attention to the ways to contain inflation as the common people are suffering from it.

Stressing more on conducting irrigation through solar-powered pumps, the Prime Minister asked the authorities concerned to ensure cent percent agriculture irrigation through solar-powered pumps gradually.

She also directed the Ministry of Agriculture to increase the height of the solar panels, during their installation, so that cultivation of vegetables including onion, ginger, turmeric and fish farming could take place on the land beneath the solar panels.

Mannan said that the government would give necessary supports, including tax related facilities, if the private sector comes forward to set up solar panels.

Mentioning that people often die from lightning strikes in the Haor region during the rainy season, Mannan said the chairperson of the ECNEC also directed the Ministries of Agriculture and the Disaster Management and Relief to build some sheds in the Haor areas.

Referring to the project on infrastructural development of BCS Tax Academy, he said that the Prime Minister directed the executing agency to use less land during the implementation of the project.

Answering to a question, Mannan said that the Prime Minister is well-aware of the current inflationary situation. "An integrated effort should be in the market. The government in its highest level is very much aware of it," said Mannan.

State Minister for Planning Dr Shamsul Alam said that the government could use foreign funding at its best capacity as the interest rate of it is less than the borrowings from the local market.

He noted that the foreign debt to GDP ratio of Bangladesh is still less than other countries of the world for which the country could take more foreign loans.

At the very outset of the meeting, the ECNEC congratulated the Prime Minister for her recent successful tour of Switzerland.

The ECNEC apprised the Prime Minister about the findings of the latest Sample Vital Statistics which had showed that the life expectancy at birth, literacy rate, access to safe water and sanitation has increased.

The planning minister said that the Ashrayan Project has helped the homeless people of the country a lot for which the poverty rate has been coming down in the country.

He asserted that the Planning Commission would continue to give priority to those projects which would be beneficial for the poor section of people.

Touching upon the country's macroeconomic issues, Mannan said that the inward remittance has increased along with the imports and exports while the foreign currency reserve is in a stable state.

With the stable price trend of staple food rice, he hoped that the general point to point inflation would come down in the coming days.

Replying to another question, Planning Division Secretary Satyajit Karmakar said that Bangladesh has never become a defaulter in repayment of principal amount and interest of foreign loans.

/MHK/