The National Economic Council has approved the country's Sixth Five-Year Plan (2011-15) giving priority to education, employment generation and industrialisation and projecting an 8 per cent GDP growth at the terminal year of 2015.
The planning commission has prepared the plan with an outlay of Tk 13.47 trillion setting the objective of reducing the poverty level to 22 per cent from existing 31.5 per cent.
The plan was approved at an NEC meeting with its chairperson and the prime minister, Sheikh Hasina, in the chair at the planning commission.
Of the total outlay, Tk 12215.3 billion (90.7 per cent) will be arranged from domestic resources and the rest Tk 1254.1 billion (9.3 per cent) will be tapped from development partners.
Much of the investment will be undertaken by the private sector, accounting for Tk 10393.6 billion or 77.2 per cent of the total investment under the plan, much of that harnessed from domestic sources.
The external financing for private investment, primarily in the form of foreign direct investment is expected to grow, but it will still remain very small in relative term at about 4 per cent, said the planners.
Briefing reporters after the meeting the planning minister, AK Khandker, said that the adopted SFYP is an indicative plan and it will be implemented under the Perspective Plan. On completion of the SFYP, the 7th Five Year Plan would be undertaken.
General Economics Division member of the Planning Commission Professor Shamsul Alam, Planning Division secretary M Monzur Hossain and GED division chief Fakhrul Ahsan were present at the briefing.
Khandker hoped that they would be able to achieve the targets of the Perspective Plan by 2021 through entering into a middle income country by 2021 as also reducing the poverty rate to 15 per cent.
Answering to a question, the planning minister expressed hope that once the foreign aid dependency of the country would come to a zero level. 'The foreign aid dependency will gradually decline and we'll be self reliant.'
Shamsul Alam said 8 per cent GDP growth by 2015 is achievable as the current base year is 1995-96 which will be upgraded to 2005-06 incorporating many new sectors.
He also said that the previous Poverty Reduction Strategy Paper (PRSP) was imposed on the government by the development partners.
According to the SFYP, the public sector investment, much of it through the Annual Development Programme, will amount to Tk 3.1 trillion at constant 2010-11 prices, accounting for about 22.8 per cent of the total investment in the economy.
The plan projects an increase in the revenue to 14.6 per cent of GDP by FY 2015 from the existing 10.9 per cent. Much of the revenue gain will come from the NBR taxes.
To achieve 8 per cent growth by 2015, the government will emphasise manufacturing and organised services as the investment ratio to GDP will be increased by 8 per cent by the end of the plan period to 32.5 per cent from existing around 24.7 per cent.
Under the plan a total of 16 core targets have been set for economic growth, employment, poverty reduction, human resources development, gender balance and environmental protection.
If the targets are achieved, the socio- economic environment of the country will transform it from a low-income economy to the first stages of the middle- income country.
The SFYP will increase the manufacturing sector's GDP share to 25 per cent from 17 per cent and employment share to 15 per cent by 2015 by emphasising labour-intensive export and high demand domestic production.
The plan would focus on removing the infrastructure constraints through investment in power and transport, ensuring better efficiency and demand management, and through energy trade with neighbours.
Cabinet members, PM's advisers and senior officials attended the NEC meeting.
Source : New Age
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