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 outlined the government’s vision to 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, involving Tk 1,222 crore.
“Large amounts of foreign loans in the pipeline remain underutilised. We will put emphasis on using these funds,” said Wahiduddin.
He said the government has assessed the $1 billion projects funded by the World Bank and those projects are now almost at a standstill.
The government can utilise this fund for budget support by December, said the planning adviser, quoting World Bank officials.
Wahiduddin said the government will concentrate 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 resources, particularly in education and training, remains insufficient.
“We need to take some new initiatives promptly in these areas.”
The Ecnec yesterday also approved a revised project titled “Bakhrabad-Meghnaghat-Haripur Gas Transmission Pipeline”. It will ensure smooth supply of gas to the power plants.
The government has taken up a Tk 588 crore new project titled”Two Exploratory Wells (Sundalpur South-1 and Jamalur-1)”.
This scheme will help increase the overall domestic gas production by the local companies instead of foreign firms. It will also reduce dependence on imported liquefied natural gas, said the planning adviser.
About downsizing the annual development programme (ADP), Wahiduddin said he cannot give a specific figure right now since the government is still uncertain about potential funding sources for budgetary expenditure.
He voiced concern about the domestic revenue collection during the recent political unrest.
The adviser expressed his satisfaction with the commitments from foreign lenders.
“All development partners, including the USAID, are showing a strong interest in financing the government’s new development projects.”
Both the bilateral and multilateral donors have committed to continuing their loans for the ongoing and new projects, he added.
Regarding new development projects, he said the government will move forward cautiously by evaluating the potential funding sources, and the revised ADP size will be determined in approximately five months.
The planning adviser vowed to stop waste and misuse of funds and curb corruption in the development projects. He said the government is also pursuinga plan to contain inflation.
About taking up and execution of projects, he said the ministries concerned will be empowered further so that the government can hold them accountable. The government will issue a circular in this regard.
Wahiduddin also announced that the government has postponed the steps to adopt the Ninth Five-year Plan.
“Once the next political government takes office, it will devise plans as per its vision and philosophy.”
He said the five-year plan is a political document that portrays a party’s vision. “We won’t take any major political decision.”
The Ecnec yesterday okayed 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 revised project namely “Tottho Apa: Empowering Women Through ICT Towards Digital Bangladesh Project”.