Mega Project: Economists disagree with the World Bank about the fall in debt trap

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Executive Director of Policy Research Institute Dr. Dangra said that excessive foreign debt dependence could be a problem for the country’s economy to implement the mega project. Ahsan H Mansur and Chairman of Power and Participation Research Center (PPRC) said. Hossain Zillur Rahman. According to both of them, the implementation of large-scale foreign credit-based projects could lead to a future debt crisis. For this reason, the expenditure on government expenditure will be increased in the mega project. In addition, it will also see how much financial benefits are available through these projects. They warned about large debt like ‘Debt Trap’ or a debt trap like Sri Lanka, Pakistan.

They said this at a press conference at the World Bank’s Dhaka office on the occasion of the publication of the updated development report of Bangladesh. The World Bank’s Country Director, Chinmaya Fan, expressed disagreement with this at the ceremony. He said foreign debt of Bangladesh is now 4 percent as GDP. It is in the tolerable stage. Apart from this, borrowing and payment are still on a tolerable level. Bangladesh did not go to the Debt Trap stage

The Prime Minister of the World Bank, the chief economist of the World Bank, said the Bangladesh Economic Update. Zahid Hossain. He stressed the need for timely implementation of mega projects to accelerate growth.

Participate in the panel discussion. Ahsan H Mansur said, there are questions about the quality and cost of various mega projects taken by the government. He said, no final account of what kind of economic benefits will come from these mega projects in the future. However, the way the cost of these mega projects is increasing, we will have to think about how logical it is. He said the cost of Padma bridge project could go up to Tk 40-50 billion. Almost all of the mega projects are debt-free. Here’s to increase the cost of government expenditure. We have examples like Sri Lanka who have been trapped by excessive foreign debt.

Hossain Zillur Rahman said, we are funding Padma bridge ourselves. The loan from the World Bank was to be borrowed from the source of the loan. On the other hand, the Padma Bridge rail link project is doing a foreign loan. With the implementation of such mega projects, we should keep a watch on the future of ‘Debt Trap’ like Malaysia, Pakistan and Sri Lanka.

The World Bank said in the updated forecast that if the growth in the domestic demand, increase in private sector investment and the positive trend of exports and remittances, the current fiscal year would be 7 percent. Meanwhile, the GDP growth forecast for the government is 7.8 percent.

On this, Ahsan H Mansur said, GDP growth has been set by the government as 7.8 percent. There are some questions about this, there are many weaknesses here. Export earnings are disappointing over the last few years. How will the growth increase if export growth is less than GDP? He said the remittance in the first two months of the current fiscal year is decreasing, but employment in foreign countries has increased. So where did the money go? Investment in private sector is not growing. Our concern is increasing whether the GDP growth is sustainable. He said, the current accounting deficit is increasing. For this, the reserve will be monitored. He said, fixing the nine-six policies of the bank with interest rates did not come in any way. The interest rate of the bank did not come down to a single digit. And this is not possible. So the government and the Bangladesh Bank have to move away from this position.

Hossain Zillur Rahman said that it is necessary to consider whether the growth will be sustainable. Because of 3.9 crores people still poor in Bangladesh. 55 million children in dungeon Malnutrition is still a big problem. Now a student passed MA in the country is working for Piyan. Then who is going to get this growth? He said, there is a debate over the rate of our growth.

When questioned about the GDP rate, the World Bank’s Country Director, Chinmaya Fan said, focus on the quality of growth rather than the number of growths. I can say that it is possible to go up to 7 percent, it is possible. This is possible through economic stability and reforms. But we need to see this change in the quality of life of the common people. We have to focus on that.