Issuance of Corona bond needed to save economy: GEF
Abu Sazzad: The prompt fund releasing related to annual development program (ADP) is one of the major challenges for the government to gain the ambitious targets of the national budget for the current fiscal year 2020-21 as well as to save people from the ongoing disaster or COVID-19 pandemic.
Different positive and negative media reports published since the last month and most of the topic disclosed higher expectation from the national budget to calculate a rescue mechanism of the people and economy from the ongoing disaster.
Talking to Daily Industry, Global Economist Forum (GEF) President Dr Enyet Karim appreciated the government led by the Prime Minister Sheikh Hasina for declaring such a big budget during the crisis moment. He also praised the government for allowing the investment opportunity of the black money in country’s capital market which has reflected his recommendation to consider the present economic turmoil.
However, the contemporary global economist Dr Enayet Karim earlier recommended several time befitting policies and such black money investment policy is one of the prominent initiatives for revamping the fragile capital market in the country.
Despite taking cautious instance, the prevention of capital flight and ill-gotten resource generation are becoming unstoppable in the society which is definitely a shocking phenomenon for Bangladesh, lamented the GEF president. Considering this, such imitative could help preventing capital flight from the country as well as strengthening the capital market.
Talking on the higher ADP, he said, the government declared over Tk 2.5 trillion ADP depicting the fearless approach of the government to maintain the steady growth and to gain the targeted 8.2 percent gross domestic product (GDP) growth in the ongoing fiscal, but prompt money collection and release will be the major obstacle to implement such big budget and ADP.
Narrating the overcoming mechanism from the ongoing disaster, this time, Enayet Karim recommended for issuing government bond immediately in the name of Corona Bond or any bonds to implement the targets of the budget. “If the government implements the suggested bond policy, it would help tackling the ongoing and post COVID-19 economic crisis. At the same time, it will strengthen country’s capital market.
Prompt fund collection and release are very crucial for the government to implement the current ADP size and issuance of such Corona Bond can be one of the convenient mechanisms to tackle the whole situation as well as to prove the economic capability or stability of Bangladesh.
He reminded the fearless attitude of the Prime Minister Sheikh Hasina for making Padma Bridge by utilizing local resources which has already depicted the economic capability of Bangladesh into the global community.
“Today, the world economy is not patronizing by the veto power countries and such trend has already disappeared for introducing the open economy theory. We just need to change our mindset for resolving any situation through taking the loan from the external resources. We have to think for expanding our trade and manpower export in the global market. We have to think how to increase the existing export income. China is now eager to shift their business in the countries like Bangladesh mainly due to lower labour cost, so, we need to focus to grab such opportunity for attaining a vibrant economy. We need to stand same feeling on India and China to expand our trade and economy, mentioned Enayet Karim.
He has also underscored the need for introducing reward and the penalty system or in his own word like ‘Purosker and tirosker system’ for the ambassadors and ADP implementing agencies to achieve their respective targets.
Meanwhile, the government plans undertake more effective mechanism for releasing the necessary fund to implement the annual development project (ADP)to revamp the economy from the contemporary coronavirus disaster, said Planning Minister MA Mannan.
The government did not undertake any irrational and unrealistic decision to increase the ADP size for the current fiscal. “If the country like the whole world would not facesuch natural disaster, definitely we would undertake initiative to increase higher ADP from the existing trend. The upcoming ADP is slightly higher from the ADP of the outgoing fiscal and we have the capability to manage the development expenditure”.
Country’s economy is witnessing steady growth since the last one decade under the regime of the incumbent government led by the Prime Minister Sheikh Hasina which has created an example in the world in terms of social and economic development.”We achieved tremendous growth in the last one decade which has possible for undertaking time befitting policy implementation including the higher national budget and ADP size”
He expected higher ADP execution from the current fiscal which would help recovering the economic losses from the novel coronavirus as well as to gain over 8 percent GDP growth.
The minister urged all the ADP execution agencies to implement the development activities within the deadline because government is dedicated to release ADP fund immediately.