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Violence casts a shadow on economy: Muhith

Star Business Report
The current spell of deadly violence casts a shadow on the economy which has performed well in the last six years defying global financial crisis, and unrest and strikes at home, Finance Minister AMA Muhith said yesterday.
"Bangladesh is a strange country as it has achieved a 6-plus percent GDP growth on an average in the last six years overcoming impacts of unrest and strikes, among other problems."
He said per capita income, exports, imports and foreign currency reserves have all grown in the last six years while poverty rate fell sharply.
"Unlike in other countries, inequality
has come down in Bangladesh along with poverty rate," he said.
He made the comments while unveiling a report on the country's macroeconomic situation in the last six years at his secretariat office in the capital. On Thursday, he presented the report to the prime minister.
"2014 was a good year for the country thanks to the government's macroeconomic management. I was personally hopeful that 2015 would be wonderful for us."
" Now I can't make any forecast given the current deadly activities going on across the country," he said.
He said foreign currency reserves were $3.4 billion in 2005-06, which now have risen to over $22.5 billion.
Muhith said the foreign currency reserves increased not only because of the sharp rises in exports income and remittance flows, it is also the reflection of the deep confidence in the economy.
At the press briefing, officials presented updated information of various economic indicators in the current fiscal year.
Finance Secretary Mahbub Ahmed said non-development expenditure stood at Tk 76,898 crore in the first six months of 2014-15, which was Tk 76,854 crore in the same period a year ago.
"The expenditure is consistent in all areas," he said, adding that subsidy spending stood at Tk 4,403 crore in the first half of the fiscal year.
Mohammad Mejbahuddin, secretary of the Economic Relations Division, said both commitment and disbursement of foreign aid have increased.
Between July and January, development partners committed $1.8 billion, which was $1.1 billion in the same period a year ago, he said.
The secretary said $1.51 billion was disbursed in the first half of the fiscal year, higher from $1.3 billion in the same period a year ago.
The government plans to disburse $3.3 billion in 2014-15. "We are hopeful that the target will be achieved," he said.
Md Nojibur Rahman, chairman of the National Board of Revenue, and M Aslam Alam, secretary of the Banking Division, were also present.