Tuesday, August 20, 2019 | ePaper

BREAKING NEWS:

Five key challenges lie on new finance minister

  • Print
Special Correspondent :
AHM Mustafa Kamal, the new finance minister, is about to face a number of challenges to keep growth momentum of the national economy intact, analysts say.
"Five key challenges lies on him and he must accomplish to those being a top policy maker of the government finances," economist Dr Debapriya Bhattacharya told The New Nation yesterday.
The challenges are sustaining a high GDP growth, boosting revenue earnings, restoring discipline in the banking sector, reviving the private investment cycle and timely implementation of mega projects.
Dr Debapriya Bhattacharya said the new finance minister is about to face an uphill task in sustaining the 'fairytale' of the country's high GDP growth given the current investment scenario and banking sector crisis.
"He would face a daunting task in reviving private investment cycle and restore discipline in the banking sector unless drastic reform measures put in place," he added.
Dr Debapriya Bhattacharya, a Distinguished Fellow at the Centre for Policy Dialogue (CPD), further said the national economy continue to attain over 7.0 per cent growth in the last couple of years, but the distribution of growth remains uneven in the lower tier of the population due to lack of necessary jobs for youth population.
"Slow job growth has become a big problem for the economy. The new finance minister must take necessary steps to improve the bleak job prospect. Otherwise, the growth will not be sustainable in the long run," he noted.         
Bangladesh has achieved a record 7.86 per cent GDP growth in the 2017-18 fiscal year.  "There are a lot of challenges that the new finance minister has to face. But he should foremost focus on reviving the private investment and clear the banking owes created due to piling stressed loans in banks," economist Dr Zahid Hussain told The New Nation yesterday.
He said accelerating private investment is necessary to sustain economic growth and job creation. So, the new finance minister must reassure investors of credible plans to boost private investment, which remains low in the last few years despite the country achieved a high GDP growth at that period," said Dr Zahid Hussain.
He said the minister should take bold reform measures to restore discipline in the banking sector, which is marred by the rising non-performing loans. Such steps can help clean up the banks' book of accounts as well as improve their financial health and confidence of the investors," said Dr Zahid Hussain
"He (the finance minister) should particularly fix the pile up bad loans at the state-owned banks and capital shortfall of the state lenders. He should uphold the autonomy and independence of the central bank, which is key to restore discipline in the country's banking sector.
Dr Zahid Hussain further said that the minister should be careful about unnecessary public spending and ensure timely disbursement of government funds for timely implementation of development projects. Necessary steps should be taken to boost revenue earnings to finance the ongoing development projects.
"He must therefore help with tough decisions about unaffordable vanity projects," said Dr Zahid Hussain.
At the same time, he will have to work closely with Industries Minister on the restructuring of state-owned enterprises. The precarious financial position of a number of state-owned enterprises is placing a heavy burden on taxpayers. Removing this burden will release resources that can be used to stimulate the domestic economy.
When asked, Dr Zahid Hussain said the new finance minister has a strong financial background and already served as a planning minister successfully.
"Both experiences should help equip him to meet the challenges," he added.

More News For this Category

Kashmir without democracy not acceptable: Amartya

NDTV, New Delhi :Nobel laureate Dr Amartya Sen today vehemently criticised the government's move on Kashmir, saying it not only emphasised majority rule "as opposed to it sustaining the rights

Islam is not a faint-hearted religion for killing unarmed innocent people

Burials are taking place in the Afghan capital, Kabul after a bomb exploded at a wedding hall killing 63 people and wounding more than 180. The Islamic State (IS)

A train runs slowly as a vegetable market set up in close proximity of the railway track at Jurain in the capital despite restrictions to build structures within 50 yards of railway tracks. This photo was taken on Monday.

A train runs slowly as a vegetable market set up in close proximity of the railway track at Jurain in the capital despite restrictions to build structures within 50 yards of railway tracks. This photo was taken on Monday.

Owners fined over Tk 2 lakh

Staff Reporter :Mobile courts have fined owners of nine buildings after Aedes mosquito larvae were found on their buildings' premises.The mobile courts led by Dhaka South City Corporation (DSCC) executive

Plan to provide midday-meal to Pry students

Staff reporter :The Cabinet on Monday approved the government's plan to provide meals to nearly 1.5 crore primary school students in order to increase attendance and reduce the number of

Rickshaw-puller kills passenger for 'hijacking' money in Hili

Staff Reporter  :Rickshaw-puller Raju Orao strangulated a female passenger to death by pressing her head into the mud in a road side water body to 'hijack' money from her possession

88 BD Hajj pilgrims die in Saudi Arabia

Staff Reporter :At least 88 Bangladeshi Hajj pilgrims have died of various reasons in the Kingdom of Saudi Arabia so far. The latest bulletin of Bangladesh Hajj Management Portal under

Indian External Affairs Minister Jaishankar in city

Staff Reporter :External Affairs Minister S Jaishankar arrived in Dhaka on Monday night on a three-day visit to Bangladesh aiming to strengthen the relations between Bangladesh and In dia further.He

Minni's bail hearing adjourned till today

Staff Reporter :The High Court (HC) on Monday adjourned till Tuesday the hearing on a bail petition filed by Aysha Siddika Minni, wife of Rifat Sharif, who was brutally killed

Gold prices go up despite fall in global market

Staff Reporter :The prices of gold increased on Monday by Tk1,167 per bhori, although prices of the precious metal went down in the global market on the day amid strengthening