Govt thinks 6.5% growth possible despite battered economy: Titumir

The government believes it can achieve 6.5 per cent economic growth in the current fiscal year (FY27), despite inheriting what it describes as a battered economy, said Rashed Al Mahmud Titumir, the prime minister’s adviser on finance and planning, yesterday.

He said the government was working to revive economic activity, boost investment and restore confidence to meet the target.

“Steps are being taken to turn the economy around by boosting investment, consumer spending, government expenditure and export earnings,” he said at a press briefing at the National Board of Revenue (NBR) headquarters in Agargaon, Dhaka. NBR Chairman Ahsan Habib was also present.

Titumir was responding to a question about growth forecasts by international financial institutions. In October, the International Monetary Fund (IMF) lowered its growth projection for Bangladesh in FY27 to 3.2 per cent from 4.3 per cent in April.

He said the IMF’s projection was based on the assumption that no reforms would be undertaken.

“The forecast says, ‘if reforms are not undertaken’,” he said, adding that multilateral institutions had recognised the government’s reform programme and offered support at the recent annual meetings of the World Bank and the IMF.

To boost household spending, the government plans to increase remittances and expand its Family Card programme. It also aims to raise exports while monitoring the impact of higher fuel prices.

Titumir said several economic indicators, including the Purchasing Managers’ Index (PMI), pointed to a recovery.

“We are moving towards relief and restoring confidence. All the indicators of an economic recovery, and all the indicators needed to bring the economy out of the Intensive Care Unit (ICU), are showing positive signs,” he said.

On investment, Titumir said Chinese companies had started investing in economic and industrial zones in Chattogram, while Japanese firms had shown interest in setting up manufacturing operations in Bangladesh.

He stressed that increasing private sector credit was essential to revive business activity. Bangladesh Bank has announced a support package, of which one-fifth has already been disbursed.

The government is also reviewing proposals for the Family Card programme to ensure that poor and extremely poor households receive support.

“We are reviewing the proposals to ensure that poor and extremely poor people are included in the programme so that it can inject fresh life into the economy,” he said.

Titumir also called for better implementation of the Annual Development Programme (ADP), saying the fiscal year should be aligned with the economic cycle.

He pointed out that development work often slows during the monsoon, making it difficult to use public funds effectively.

“Development work under the ADP does not take place during the monsoon. If you insist on carrying out the work then, the money will simply be thrown into the water,” he said.

On revenue transparency, Titumir said the NBR would resume publishing revenue statistics regularly from December, addressing concerns over delays.

“You will receive the statistics regularly from December. There will be no deviation from this commitment,” he said, adding that the government was putting the necessary systems in place.

Describing the condition of the economy inherited by the government, Titumir said the damage extended across several sectors.

“We have inherited an economy that has been shattered and left in ruins,” he said.

He estimated that the banking sector alone would require around $40 billion for recovery.

“Similar looting took place in other sectors as well. In other words, they left the economy in intensive care and fled,” he added.

Source: The Daily Star