Staff Reporter :
Planning Adviser Dr Wahiduddin Mahmud expressed concern yesterday that the country may face an economic recession if the current situation persists, characterised by a lack of new private investment and stagnant public development expenditure.
“On one hand, private investors are not injecting new capital, and on the other, public development expenditure is not increasing.
This combination could lead to an economic recession,” he said while addressing reporters following the Executive Committee of the National Economic Council (ECNEC) meeting at the NEC Auditorium. The meeting was chaired by Chief Adviser Prof Muhammad Yunus.
Dr Mahmud noted that the private sector is showing little interest in investment, partly due to the recent hike in interest rates. “As a result, entrepreneurs are not inclined to make new investments,” he said.
He added that the interim government has decided, in principle, to accelerate the implementation of projects approved by the government by the end of this fiscal year. “If the projects are viable and new project directors are appointed, we are now at the stage of taking coordination on the principle,” he explained.
“This will enable us to speed up project implementation, which is urgently needed, given the current stagnation in private sector investment due to instability, insecurity, political uncertainty, and indiscipline.”
The adviser acknowledged that the implementation rate of the annual development programme has slowed down to 8 percent in the first four months of the fiscal year due to efforts to prevent wastage, corruption, and unnecessary projects. “The implementation of development projects is certainly progressing very slowly,” he admitted.
Dr Mahmud mentioned that the interim government would scrutinise all projects before granting final approval. He also noted that while a political government could initiate new projects for any constituency, the interim government does not have constituencies, and its time is limited, meaning such initiatives are not a priority.
However, he mentioned that the advisory council would reconvene to discuss the possibility of releasing innovative new projects for human resource development and educational advancements.
Dr Mahmud further stated that the current economic stagnation is also due to inflation and the rising prices of essentials. “There is no denying this,” he said. He stressed the need to expand economic activities to create employment opportunities.
He concluded by expressing optimism that while political activities will intensify around the upcoming national elections, this would likely rejuvenate the economy. “We believe that election-related activities will soon kick off, which will help bring vibrancy to the economy,” he said.
