FE Report

Speakers at a discussion meeting Wednesday laid emphasis on proper policy support to ensure the use of public private partnership (PPP) concept as an effective tool for country's development.

"The PPP is a good initiative. But to reap the benefit out of it, sufficient policy measures should be put in place," said president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Huq.

Otherwise, he said, the concept would face the setback at the very beginning. He was speaking at a post-budget discussion organized by the Economic Reporters Forum (ERF) at the National Press Club in the city.

Former Commerce and Industries Minister and Awami League lawmaker Tofail Ahmed was the chief guest at the function, which was chaired by ERF President Nazmul Ahsan.

"The PPP would bring out a positive impact on the country's overall balance of payments if implemented properly," said BRAC Bank Chairman Muhammad A. (Rumee) Ali. It would also boost investment in the country, he said.

"Whatever the finance minister has proposed in the budget is in line with the pledges we made in the party's electoral manifesto," said Tofail Ahmed.

He said the PPP would help develop the country's overall economy.

Mr Tofail, who is also the chairman of the Parliamentary Standing Committee on Industries Ministry, said the budget is aimed at protecting the domestic industry. There are, however, scopes for making necessary changes in the budget, he added.

Pointing to the proposed provision in the budget for legalising the undisclosed money, he said the successive governments in the past practiced the same method without ensuring proper investment of the undisclosed money.

"This time we have made it mandatory that the money should be invested in productive sectors," he said.

Unlike the previous years, the present government would make half-yearly review of the budget implementation, said Tofail

Speaking on the occasion the FBCCI president stressed on generation of adequate power to help boost the pace of indsutrialisation.

He said the government must extract coal to use the same for electricity generation in the backdrop of dwindling gas reserve.

"We are not interested about the coal policy. What we want is the use of coal reserves for power generation," he said.

The FBCCI chief criticised a section of people who are opposing the extraction of coal.

Many of the developed countries, including the USA and China, generate around 50-80 per cent of their electricity out of coal, he added.

He also said that the businessmen are also opposed to the legalisation of money gained through criminal activities, including drug smuggling and militancy.

Legalising the undisclosed money would help generate employment and boost national economy, he added.

"This year's budget is the most talked-about one in the country's history. This is because of the presence of a democratic environment," said Ali.

He demanded reduction of corporate tax on banks in the budget.

The former deputy governor of the Bangladesh Bank also underscored the necessity for capital adequacy of the banks.

He also criticised the government for not mentioning any specific measures in the budget to help augment remittance income.

The allocation in the energy sector was also not demand-driven, he added.

Real Estate and Housing Association of Bangladesh (REHAB) President Tanveerul Huq had all praise for the budget. He said the budget has fulfilled the expectations of the people.

A section of the society, including the middle-class, owns large amounts of undisclosed money and the budgetary measure would help bring the same in the formal economy, he said.

"Only the real-estate sector deserves the benefit of the provision for legalising the undisclosed money as it meets one of the basic needs", he said

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fazlul Huq cautioned against negative effects of opportunity to whiten black money.

Dhaka Stock Exchange (DSE) President Md Rakibur Rahman felt that the budget had infused a new dynamism into the capital market.

"Many investors have rushed in to the stock market, augmenting its turnover to around Tk 7.0 billion a day, he said.

The prime bourse chief urged the government to offload shares of the state-owned entities.

"If supply side is not augmented, there is a fear of stock price bubble," he cautioned.

Syed Nsim Manzur of Apex Group stressed on increased connectivity and infrastructure development to turn the concept of digital Bangladesh into a reality.