Staff Reporter :
The country’s economy is facing a challenging period, with both public and private investments slowing down significantly over the past few months.
Private sector investment has reached a low point, as many industry and bank owners are absent from their areas. As a result, the revival of private industries and efforts to restore normal lending activities in the banking sector have been sluggish.
In a recent briefing following an ECNEC meeting, Planning Adviser to the Interim Government Dr. Wahiduddin Mahmud acknowledged the slow pace of industrial production and lending activities in the banking sector. He emphasized that private sector investment is vital for the economy, stating, “When this sector faces obstacles, the entire economy suffers.” Dr. Mahmud also noted that such investment challenges are common after a significant political transition. Public sector investment, executed through the development budget, is also under review. The interim government is reassessing development projects approved by the previous Awami League government, with many deemed politically motivated or poorly implemented. As a result, some projects are being amended or halted.
Dr. Mahmud cautioned that a slowdown in both private and public investments would impact the overall money flow in the economy, with rural businesses already reporting sluggish trade due to reduced investments.
The Annual Development Programme (ADP) for the fiscal year 2024-25, approved by the previous government, includes a budget of Tk 265,000 crore for 1,321 projects. The transport and communication sector received the largest allocation of Tk 70,687.75 crore (26.67 per cent), followed by the power and energy sector at Tk 40,752 crore (15.38 per cent), and education at Tk 31,529 crore (11.36 per cent).
To curb inflation, Bangladesh Bank raised its key policy rate (repo rate) by 50 basis points, bringing it to 9.50 per cent. According to the Bangladesh Bureau of Statistics, inflation fell to 9.92 per cent in September from 10.49 per cent in August, with both food and non-food inflation showing a downward trend. Rural and urban inflation also declined during this period.