DHAKA: A Center for Policy Dialogue (CPD) research said Gross Domestic Product (GDP) will be increased if the fuel price goes down considering the lower fuel price in the world market.
CPD researcher Dr Toufiqul Islam Khan said that while presenting keynote paper in a press conference ‘Economy of Bangladesh 2015-16, First Interim Review’ organized by CPD at BRAC center in city Sunday morning.
He said 10 percent decrease of fuel price will push 0.3 percent growth of GDP when inflation rate will reduce to 0.2 percent. The researcher also requested government to reduce all kinds of fuel prices.
The report said, after giving loss for 30 years Bangladesh Petroleum Corporation (BPC) saw profit of Tk 5,002-crore last year. This year BPC is expecting profit of Tk 11,000-crore.
However, CPD’s 2015-16 First Interim Review shows that there is a possibility of budget deficiency of Tk 40,000-crore in this fiscal year.
According to the report, reasons behind the deficiency are exceeding target settings, lower import price, lower revenue collection after announcing government incentives and non-implementation of tax acts.
The report further said, among the 26 big projects, 14 didn’t complete within due time (2014-15). The report suggested completion of at least 5-6 projects within next six months will encourage private investments.
Citing the report CPD researcher Toufiqul further said that only 14 percent of the undertaken projects of 2013-14 fiscal year have been completed but the delay costs additional pressure. Taskforces should be formed to accelerate the implementation of these projects.
CPD’s honorary fellow Dr Debapriya Bhattacharya remarked that situation of the last five months may not project anxiety but it did have concerning issues. The registration of investment in foreign lands lessened, revenue collection structure has become weaker and IPO has reduced.
Even private investment has also been decreased despite internal stability of the country and lower price of products in world market, Debapriya added.
CPD executive director Dr Mustafizur Rahman said that a balanced policy for fuel, gas and electricity should be taken soon and the price of diesel, kerosene and furnace oil should be reduced.
Moreover, CPD researcher Dr Khandakar Golam Moazzem said local businesspeople are investing abroad as they think that there is a lack of suitable investment environment in Bangladesh.
The situation will get worse if the money drained out of the country. So Anonymous Asset Declaration Law should be legislated for foreign investment to allow traders to invest abroad transparently.
CPD research directors Fahmida Khatun and Dr Sudip Kanti Boiragi, among others, also spoke at the conference.
BDST: 2028 HRS, JAN 03, 2016
AIK/BD/RR
** GDP to increase if oil price decreases: CPD
