PM for availing more foreign funds for project financing

Prime Minister Sheikh Hasina today asked the authorities concerned to emphasise more on availing funding from the foreign sources alongside the local funding to ensure project financing.

She also noted that if the trend on timely implementation of foreign-aided projects increases, then disbursement of foreign loans would increase which would also put an impact on the foreign currency reserves.

The prime minister gave the directive while chairing a meeting of the Executive Committee of the National Economic Council (ECNEC) held today at the NEC Conference room in the city's Sher-e-Bangla Nagar area.

Briefing reporters after the meeting, Planning Minister MA Mannan said that the premier asked the concerned authorities, including the Economic Relations Division, National Board of Revenue (NBR) and the Finance Division to ensure that the government uses more foreign funding and foreign loans to finance development projects which will also enhance the foreign currency reserve.

He also said that development partners like the World Bank, ADB and JICA are ready to extend more supports, including budget support to Bangladesh, but the government would take those as per its necessity and capacity.

State Minister for Planning Dr Shamsul Alam said that more than $50 billion of foreign assistance is in the pipeline.

The planning minister said that a total of 16 projects were approved today in the ECNEC meeting involving an overall estimated cost of Taka 24,362.14 crore. "Of the total project cost, Taka 12,873.11 crore will come from the government of Bangladesh exchequer, Taka 16.15 crore from the organization's own fund and the rest Taka 11,472.88 crore from project assistance.

Of the approved 16 projects, eight are new while eight are revised projects.

Revealing some other directives given by the PM in the meeting, the planning minister said the premier asked all concerned to pay attention to the ways to contain inflation as the common people are suffering from it.

Stressing more on conducting irrigation through solar-powered pumps, the prime minister asked the authorities concerned to ensure cent percent agriculture irrigation through solar-powered pumps gradually.

She also directed the Ministry of Agriculture to increase the height of the solar panels, during their installation, so that cultivation of vegetables including onion, ginger, turmeric and fish farming could take place on the land beneath the solar panels.

Mannan said that the government would give necessary supports, including tax related facilities, if the private sector comes forward to set up solar panels.

Mentioning that people often die from lightning strikes in the Haor region during the rainy season, Mannan said the chairperson of the ECNEC also directed the Ministries of Agriculture and the Disaster Management and Relief to build some sheds in the Haor areas.

Referring to the project on infrastructural development of BCS Tax Academy, he said that the Prime Minister directed the executing agency to use less land during the implementation of the project.

Answering a question, Mannan said that the prime minister is well-aware of the current inflationary situation. "An integrated effort should be in the market. The government in its highest level is very much aware of it," said Mannan.

State Minister for Planning Dr Shamsul Alam said that the government could use foreign funding at its best capacity as the interest rate of it is less than the borrowings from the local market.

He noted that the foreign debt to GDP ratio of Bangladesh is still less than other countries of the world for which the country could take more foreign loans.

At the very outset of the meeting, the ECNEC congratulated the prime minister for her recent successful tour of Switzerland.