Finance Minister M Saifur Rahman on Wednesday said that the recession would gradually subside as development programmes were being geared up In all sectors.

Speaking at an informal meeting with newsmen at the Dhaka Sheraton, he conceded that the government efforts to achieve operational efficiency of the public sector and ensure financial discipline were yet to meet with success.

He said that the government would disinvest the nationalized industries only after making them economically viable through the active cooperation of all parties Involved including the workers, banks and owners.

"This time there will not be any hasty action of disinvost ment ... there is no chance of selling out of at least any jute mill within one-and-a-half year", he said.

"Nobody will put money in loosing ventures, many divested units were closed ear Iler because of the policy ctf selling out loosing units .. wc don't want to repeat the same-mistake," the Finance Minister said.

The Minister said that the recession was caused by a number of factors Including national disasters which affected the progress of the Annual Development Programme (ADP) so far.

He mentioned that the business community became inactive after the fall of the government of former President Ershad to watch the economic environment. The business community wanted to watch the policy and stability of the new government and this stalled the economic activities, he added.

Piling up of unapproved projects at the National

Economic Council during the rule of former President Ershad also contributed to delays In the start of development activities. Under the autocratic regime, projects having the President's mandate were implemented. The present government took two months to approve and streamline hundreds of such projects, the Minister added.

The minister said that comprehensive development programmes are being started in every district and upaztla in sectors like energy, food for work, communications, health, education and agriculture. He said that the agricultural output this year would be a satisfactory 19.5 to 20 million .tonnes.

The Minister said that unlike the autocratic regime the present democratic government was accountable and had to take time in making deci-

sions. In the past few months adjustment of the new government with the administration also took sometime. However, disbursement of funds for development activities has started now and the minister hoped by the middle of January the situation would show signs of change.

The Minister said that the Jute and textile mills need to be stabilized first for disinvestment by curtailing the surplus labour force and reducing capacity of the mills. He said the surplus workers would be compensated adequately under a package. The Minister mentioned that there are now about 32.000 surplus workers In the Jute mills, and 20.000 each in Railway and the Bangladesh Agricultural Development Corporation.

Commenting on the textiles sector the Minister said this sector has scope for expansion provided smuggling was checked and there was better management.

The minister called for rigorously continuing the anti-smuggling drive and said this would help save the textile Industry from ruination. Curbing of cigarette smuggling would help Increase, the revenue re celpts. He said that the antismuggling drive has already shown positive effect on the economy.

Commenting on the labour unrest, Saifur said this would discourage labour Intensive industries tn the future and thus squeeze employment opportunity. At present the labour force was Increasing by five per cent a year. A ten per cent increase in gross domestic product is needed to cope with It

The minister predicted a bright prospect for agriculture this year and said the strikes and barricades by the labourers would affect the farmers In real terms because harvest of vegetable and other perishable goods to markets would continue to be affected.

Ruling out any harsh measure to tackle the workers' unrest, Rahman expressed his government's readiness to discuss with any group to resolve the crisis.

Empahsing the need for upholding democratic values and norms like tolerance, accommodations and dialogue the minister said Intolerance could only erode the people's faith in democratic rule and politics, needed to maintain the state's integrity.

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