Interim govt to focus on use of foreign funds

The interim government will focus more on using foreign funds and implementing human resource development projects rather than spending money on building infrastructure.
The decision came at a meeting of the Executive Committee of the National Economic Council (Ecnec), chaired by Chief Adviser Muhammad Yunus at his Tejgaon office yesterday.
After the meeting, Planning Adviser Wahiduddin Mahmud shared the government’s vision with journalists at the Planning Commission in the capital’s Sher-e-Bangla Nagar.
He said the interim government will take a careful approach in revising the development budget set by the ousted Awami League government.
The Ecnec yesterday approved four projects, including two new ones, worth Tk 1,222 crore.
“There are large amounts of foreign loans in the pipeline which are underutilised. We will put emphasis on utilising the loans,” said Wahiduddin.
He said the government has assessed the $1 billion projects funded by World Bank and those projects are now almost at a standstill.
The government can use this fund as budget support by December, said the planning adviser, quoting the World Bank officials.
Wahiduddin said the government will focus on implementing the foreign-funded projects.
He said the country has made significant progress in infrastructure development over the last few years, but its investment in human resource, particularly in education and training, remains insufficient.
“We need to take some new initiatives promptly in these areas.”
The Ecnec yesterday approved the revised project titled “Bakhrabad-Meghnaghat-Haripur Gas Transmission Pipeline”. It will ensure smooth supply of gas to the power plants.
The government has also taken up a new project titled Two Exploratory Wells (Sundalpur South-1 and Jamalur-1) worth Tk 588 crore.
This project will help increase the overall domestic gas production by the local companies instead of foreign firms. It will also reduce reliance on the import of liquefied natural gas, said the planning adviser.
About downsizing the annual development programme (ADP), Wahiduddin said he cannot assume the figure right now as the government is still not sure about the possible sources of funding to meet the budgetary expenditure.
He expressed concern about the domestic revenue collection during the recent political unrest.
The adviser, however, said he was satisfied with the foreign lenders’ commitments.
“All the development partners, including the USAID, are showing their keen interest in funding the government’s new development projects.”
The bilateral and multilateral donors have also vowed to continue providing loans for the existing projects and new projects, he added.
Regarding new development projects, he said the government will proceed cautiously by assessing the potential funding sources, and the revised ADP size would be determined after approximately five months.
The planning adviser vowed to stop wastage and misuse of funds and curbing corruption in the development projects. He said the government is also pursuing a plan to contain inflation.
About the formulation and implementation of projects, he said the ministries concerned will be empowered further so that the government can hold them accountable.
The government will announce a circular in this regard.
Wahiduddin also announced that his government has postponed the steps to adopt the nine-five-year plan.
“Once the next political government takes office, it will devise plans as per its will and philosophy.”
The five-year plan is a political document which portrays the party’s vision. “We won’t take any major political decision.”
The Ecnec yesterday approved a Tk 400 crore new project titled “Sustainable Social Services Delivery in Chattogram Hill Tracts (2nd Phase)”. It also gave the go-ahead to another revision project namely “Tottho Apa: Empowering Women Through ICT Towards Digital Bangladesh Project.”