State Minister for Planning Dr Mohluddln Khan Alamgir struck more of a populist than a pragmatic note with business leaders on Tuesday. Giving a preview of what the Fifth Five-year plan would be like when it is released later this month, Alamgir stated with characteristic aplomb that the private sector would be treated as the engine of growth.

At an annual average GDP growth rate of 7.2 per cent over the next five years, the private sector's share of the total projected resources would be 58 with a relatively diminished role visualised for the public sector. The private sector is to mobilise 20 per cent equity in order that it is eligible for 80 per cent drawal from the country's financial system.

This is a highly generous equity: credit ratio being promised, apparently glossing over the formula in force at present whereby investment proposals are sanctioned. It is strictly done now on the basis of 50 per cent equity participation committed by a private sector entrepreneur.

There is evidently a perceptual difference between the State Minister for Planning and Finance Minister SAMS Kibria on what should be the right equity: credit ratio. The latter has made It plain that a project which did not carry a fifty per cent financial commitment by an entrepreneur hardly merited any serious consideration.

We have been unrelenting in giving full-throated support to the private sector and have even interminably insisted upon the government to curb its unbridled borrowing from the banking system in order that there can be a steady flow of credit to the private sector. At the same time we cannot be oblivious of the Finance Minister's concern over misuse of loans, taken on low equity base, by irresponsible private parties or individuals.

Some business leaders counselled that bank financing to the industrial sector be not suspended during the loan recovery operations. While understanding their concern, we cannot turn a blind eye to the default culture as such. Both sides have points to cross their swords on and it is advisable that they have debates across the table to thrash out their differences.

Why should not the leading representative bodies of the private sector take a role in helping the government recover the long overdue loans? Let's see this fresh approach from them.