Investment freeze follows political shake-up
Staff Reporter :
The state of investment and development projects in the country is currently in poor shape, as many bank owners and industrialists have gone “traceless,” and there has been a decline in government expenditure on projects initiated by the previous government for political objectives, said Planning Adviser Wahid Uddin Mahmud on Monday.
He also noted that this scenario was expected after a major political change in the country.
The Adviser made these remarks while speaking to journalists after the National Economic Council Executive Committee (ECNEC) meeting.
He emphasized that the effects of the decline in both private and public sector investments are being felt even in rural areas, where people are reporting that their businesses are not doing well.
“The previous regime undertook less important projects. We are now approving projects based on current needs and context,” he stated.
The disbursement of loans from banks to the private sector has also slowed, as many industry leaders and bank owners have become untraceable, he added.
He noted that the private sector, which is a key driver of the economy, has been hindered by these circumstances.
“After such a major political shift, this was not unexpected. It is normal that the situation would unfold this way,” the Adviser explained.
Regarding public sector investment, he stated that all ongoing and proposed government projects are now being scrutinized.
“So far, we have found that many projects were undertaken due to political considerations. Some were not properly implemented, and in some cases, the planning was flawed.
For instance, a road was built in a particular location to benefit an influential person rather than to meet traffic demands.
These issues must be addressed. Ongoing projects can be revised,” he said.
He further mentioned that unnecessary or politically motivated projects are not being allocated funds.
Meanwhile, the ECNEC on Monday approved the construction of a Tk 11,560.77 crore rail-road bridge over the Karnaphuli River, which is a significant infrastructure project.
The bridge, located in the Kalurghat area, will enable uninterrupted transport between Chattogram and Cox’s Bazar, improving both vehicular and rail connectivity in the region.
The project was approved during the 3rd ECNEC meeting of the current fiscal year (FY25), chaired by Chief Adviser Professor Dr. Muhammad Yunus at his office in the capital. It was one of four projects approved in the meeting, with a collective estimated cost of Tk 24,412.94 crore.
Planning and Education Adviser Dr. Wahiduddin Mahmud, who briefed journalists after the meeting, highlighted the need to replace the aging Kalurghat Bridge.
The existing bridge is in poor condition, limiting train speeds to just 10 kilometers per hour. The new bridge will not only enhance local connectivity but also help develop Cox’s Bazar into a premier tourist destination, he said.
Dr. Wahiduddin also emphasized that the new bridge would support the growing importance of the Matarbari coal-based power plant and the surrounding economic zone. The project is scheduled for completion by December 2030.
Of the total cost of Tk 11,560.77 crore, Tk 4,435.62 crore will be funded by the government of Bangladesh, while the remaining Tk 7,125.15 crore will be sourced from the Economic Development Cooperation Fund (EDCF) and the Economic Development Promotion Facility (EDPF) of Korea.
Officials from the Ministry of Railways noted that the new bridge would boost trade and commerce by creating an efficient connection with the Dohazari-Cox’s Bazar rail line, which is part of a broader plan to connect Bangladesh to the Trans-Asian Railway network, linking it with China, India, and Myanmar.
The project includes the construction of a 700-meter bridge, a 6.20-kilometer viaduct, a 2.40-kilometer road viaduct, 4.54 kilometers of embankments, and the installation of 11.44 kilometers of rail track.
The new bridge will also benefit industries located in Chattogram, which handles 70 percent of the country’s imports and exports.
Improved transport links will facilitate the movement of goods to and from Chattogram Port, and support the region’s export processing zones and special economic zones.
In addition to the rail-road bridge, ECNEC also approved the second revision of the Matarbari Port Development Project, increasing its cost by Tk 6,573.96 crore.
Other approved projects include the second revision of the SASEC Road Connectivity Project-2 (Elenga-Hatikamrul-Rangpur Highway Four Lane Upgradation) with an additional Tk 376.99 crore, and the Resilient Urban and Territorial Development Project (REUTDP), valued at Tk 5,901.22 crore.