The commercial banks arc expected to step up their lending programmes to activate the country's economy. Finance Minister Saifur Rahman has said, reports UNB.

The banks have now got substantial liquidity ... there should not be any problem in expanding lending, ” he told a group ol senior journalists during an informal exchange of views on Wednesday.

He said as part of their efforts to expand lending operation. some banks have already reduced Interest rates to encourage commercial borrowers.

Rahman said the Sonali and Janata banks have already an-

nounced cut in their lending rates while other banks are expected to follow them.

The Finance Minister said banks have been asked to provide liquidity support to the agriculture sector. "We are encouraging the agro-sector.'' He said free import of fertilizers, pesticides and seeds will be allowed In the private sector.

He said banks have been asked to "be creative and pro-motfonar in their approach and competitive in their operation.

On the investment situation, Saifur Rahman said in recent months more than Tk.5OO crores had either been invested or in the process of

Investment in the industrial sector, Nearly 55 per cent of It was going for rehabilitating the closed or sick industries.

"I am hopeful of a good private investment in the coming months," Rahman said optimistically, adding that environment for investment was important.

He underlined the need for co-operational politics instead of confrontational politics" to bolster private investment. He also stressed the need for good labour-management relations and a quiet labour front for promoting Investment.

Rahman said It was not fair to blame the Finance Ministry for any setback In the economy

whose over-all Improvement is dependent on a number of other ministries.

Rahman said there has been "substantial Improvement" in the power sector which was in bad shapes as a result of system loss and other problems.

He said despite the World Bank restrictions on credit for the power sector, some development programmes in the sector will go ahead with the help of internal resources to the tune of Tk.300 crore.

Replying to a question. Rahman said tied conditionalities imposed by the donors sometimes hampered procurement of materials and implementation of projects.