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Political turmoil puts stress on economy: Muhith

Star Business Report
Finance Minister AMA Muhith yesterday said the economy is under serious pressure due to the continuous shutdowns and blockades called by the opposition.
He said the economic activities, including the development work, have come to a halt. "You can't ask a man to come and join work. He might be hit by a bullet or might be burnt. The situation is similar to that in 1971."
At the request of the Pakistan government a World Bank mission had visited Bangladesh and submitted a report to the headquarters on the situation prevailing at that time, said Muhith, who was a public servant during the Liberation War.
Quoting the report, Muhith said the mission had found deserted cities and a feeling of fear among people with no economic activities.
Based on the World Bank report, the I IS government had stopped aid to Bangladesh, the finance minister said.
"If the blockades can't be resisted, a similar situation will be created in Bangladesh," Muhith said when he was asked whether foreign aid to Bangladesh will stop.
He said the aid flow would not stop completely but would slow down.
The minister said Jamaat-e-Islami has been trying to destroy the country to save the war criminals. "It is very sad that BNP chief Khaleda Zia is acting like the ameer of Jamaat."
Muhith also hinted that the government is thinking of tougher actions to stop the destructive activities by the opposition activists.
The minister said he would issue a statement about the dire straits of the economy in the cabinet meeting today.
The government is still tolerant although the opposition has been carrying out destructive activities, he said. "I wonder whether the government can continue this stance for long."
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He said a discussion between the government and the opposition is still going on to reach a compromise. The government will decide its next course of action after the discussion ends.
Separate pay scale for banks
Muhith said the separate pay scale for the staff of the central bank and four state-owned banks will not be announced during the tenure of the polls-time government.
He said a law has to be amended for announcing the pay scale, which is not possible at the moment.
Muhith, however, said the government would prepare the draft of the amendment and the next elected government would implement it.
About budget
The finance minister said though the expenditure in the development budget was less, the nondevelopment expenditure marked a rise.
He said the major portion of the block allocation in the budget has been spent.
The minister said Tk 600 crore has been spent for additional expenditure due to the nationalisation of non-government primary' school teachers. Around Tk 300 crore has been spent on subsidy for fertiliser.
Grameen Bank issue
Muhith said the polls-time government might issue the rules for electing the directors to Grameen Bank.
The law ministry' has been requested to complete the vetting of the rules. The government will issue the rules once the vetting is completed, he said.
On national election
The finance minister expressed doubt over the possibility of a compromise between the government and the opposition.
I Ie also said, if the opposition does not participate in the election, none will go the polling centres.
"So credibility of the election will be an issue," Muhith said.