STAR BUSINESS REPORT

The government has formed a taskforce to oversee its deregulation drive and will launch a dashboard from the first week of next month to monitor the progress of project implementation in every ministry, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

Running a business in Bangladesh is not possible without deregulation, the minister said at a discussion on the proposed national budget organised by the Centre for Policy Dialogue (CPD) at Lakeshore Hotel in Dhaka.

“Those who will create barriers in deregulation, we will show them the way out, as we are working for the country, for the people. We are an elected government,” he said.

He noted that project preparation alone currently takes more than one and a half years, with implementation taking considerably longer still, driving up project costs, the burden of which is ultimately borne by ordinary people.

To keep such delays in check, the government is rolling out dashboards in each ministry that will track implementation progress on a daily basis, said Khosru, who is also the planning minister.

As part of broader institutional reform, the government will also separate the National Board of Revenue’s (NBR) policy formulation and tax collection functions, he said. The policy formulation wing will be under a panel of experts, while a panel of bureaucrats will handle implementation.

He added that the traditional system of Letters of Credit will also be revised, as LC-related delays slow down trade and raise the cost of doing business.

Responding to criticism from various quarters over the budget’s size and targeted revenue mobilisation, the minister said the government would issue bonds to help finance the budget and reduce reliance on bank borrowing, in order to free up funds for the private sector.

He said he was hopeful these reforms would help raise the tax-to-GDP ratio.

Khosru also mentioned that the government has worked to make the Family Card programme transparent, with safeguards against political interference, to ensure intended beneficiaries receive the benefits.

He identified gas, electricity and reliable internet connectivity as major challenges, saying the government has been working to address them.

The minister projected that it may take around two years to stabilise the current fragile economy, with signs of broader prosperity expected to follow from the fourth and fifth years.

He also said the government has allocated Tk 800 crore for the creative economy, to provide loans for developing theatres and the sports economy and to support singers, bringing them into mainstream economic activity.

CPD FLAGS IMPLEMENTATION RISKS

Presenting the keynote paper at the event, CPD Executive Director Fahmida Khatun said the budget relies on optimistic assumptions and that its success will depend heavily on the quality of execution.