Nov 20
Muhith stresses need for more foreign assistance PDF Print E-mail

Finance Minister AMA Muhith yesterday told parliament that foreign assistance still can play a vital role in Bangladesh's socioeconomic development.

“We have no intention to reduce foreign assistance. Rather, we want to go for big projects by taking foreign assistance. But, we are not a foreign assistance-dependent country,” he said.

The percentage of foreign assistance at present is insignificant: it is 1.5 percent of the total gross domestic product, according to the finance minister.

Bangladesh mainly takes Official Development Assistance from multilateral organisations or countries, which are soft loans or grants.

And to ensure that the foreign loans do not put pressure on the economy, the government looks to get soft foreign assistance, keeping aside the loans with tough conditions, he said.

 

 

Foreign assistance is used for infrastructure and socioeconomic development and eradication of poverty under the government's annual development programme.  “To establish Bangladesh as a middle-income country, we need to invest massively in infrastructure and socioeconomic sectors, including power, energy, bridges, rail and roads.”

In fiscal 2016-17, the foreign assistance quotient was estimated to be Tk 44,463 crore.

Of the total amount, Tk 40,000 crore will come as project assistance in ADP and Tk 316 crore as food assistance.

The amount of non-ADP project assistance was estimated at Tk 4,147 crore for the same period.

Replying to another query, he informed the house that the GDP growth rate this fiscal year is 7.05 percent, up from last year's 6.55 percent.

The per capita income in fiscal 2015-16 has been raised to $1,466, up 11.4 percent year-on-year.

Source - The Daily Star

Last Updated on Monday, 13 June 2016 13:01