Awami govt set to destroy backbone of Bangladesh economy

[idune]

Banks cannot lend to clients as govt borrows heavily: Abdul Jalil

Tuesday, 26 June 2012

DHAKA, JUNE 25: The mass people of the country are being deprived of bank loans due to excessive borrowings by the government, observed Abdul Jalil, member of advisory committee of Awami League.

“The Bangladesh Bank’s rigid policies are barring certain private banks from performing on their own accord.
As a result, the bank cannot reach out to the general people despite their willingness to do so,” Jalil said.

The veteran politician and banker made the comments while addressing a roundtable meeting on “Present crisis of housing industry and role of financial institutions” at Dhaka Reporters Unity in the city on Monday.

The roundtable meeting was organised by The Daily Amader Orthonity, a Bangla newspaper, while its acting editor Abid Rahman was in the chair.

Terming the housing crisis as a big problem of Bangladesh, Abdul Jalil said, “A major portion of our population is deprived from the basic rights to accommodation.

Even as we speak, thousands of people in Dhaka are homeless and the only place left for them to stay is sidewalks or yards of multi-storied buildings, which is a disgrace to us.”

A former Secretary General of AL, Jalil said: “No government of Bangladesh has succeeded in meeting all the the basic human rights of the people, which are education, health and accommodation, even though the

country has elapsed 41 years after independence.” Criticising the Real Estate and Housing Association of Bangladesh (REHAB), he said, “REHAB’s sole concern is making money.

They do not take any initiative considering the middle or low income people of the society.” Along with the business leaders, he called upon REHAB to build projects for low income citizens.

“Just labelling oneself as civil society or intellectual, one can never develop the country. You (civil society and intellectuals) need to think and work for the betterment of the general people as they look up to you,” Jalil mentioned.

Among others, Kamrul Hasan Nasim, president of Gorba Bangladesh, Prof Dr Shaheda, and Khondkar Faridul Akbor, managing director of Islamic Television, spoke at the meeting.


Banks cannot lend to clients as govt borrows heavily: Abdul Jalil

 

[baldFish]

as if the banks lend to clients, if you are an sme, they will make you go through hell to get a million taka loan approved, if you are a corporate chor, they will open up a billion taka credit line for you

 

[idune]

Economy faces BoP disequilibrium: UO

Staff Correspondent

The country’s economy is experiencing disequilibrium in the balance of payments due to internal economic imbalances and mismanagement of different policies taken by the government and global financial crisis, said Unnayan Onneshan on Saturday.
The BoP slipped into deficit for the first time in a decade resulting in heightened risks to Bangladesh’s external position, said the think-tank in its June issue of ‘Bangladesh Economic Update’.

Referring to the ongoing three-year reform programme agreed between the government and the International Monetary Fund to stave off the BoP pressure under the latter’s extended credit facility, the Unnayan Onneshan said that the aggregate demand would drop because of use of instruments such as depreciation of local currency and cut in import demand and supply of investible funds to the entrepreneurs.

The research organisation, in this connection, cited the central bank’s recent steps in allowing the local currency for depreciating significantly against the foreign currencies and putting in place contractionary monetary policy to restrict credit to the private sector and import of goods and services.

The restrictive monetary targets, agreed in the Memorandum of Economic and Financial Policies with the IMF, the research organisation claimed, have also in effect reduced the fiscal space of the government, demonstrated in the recently approved national budget for the financial year 2012-2013.

The prescription of shrinking import in the upcoming financial years would not only reduce the import of capital machinery and intermediate goods, prerequisite for the expansion of productive sector, but also would result into contraction in export which would widen trade deficit further, said the think-tank.

Under the existing business scenario, terms of trade may decrease to 70.71 per cent in FY 2011-12. In comparison, in FY 2010-11, terms of trade was 72.37 per cent which was 52 percentage points higher than that of FY 2009-10 and the export price index and the import price index increased by 7.31 per cent and 6.74 per cent respectively.

Trade deficit has widened at a staggering rate. During July-April of FY 2011-12, export earnings were $19.54 billion which was 8.19 per cent higher than that of the same period of the previous fiscal year.

During the period, import payments were $26.88 billion which were 8.65 per cent higher than that of the corresponding period of the previous financial year because of the higher growth rate of fuel imports for the higher demand of quick rental power generation.

As a consequence, trade deficit during July-April of FY 2011-12 increased by 9.87 per cent and reached at $7.34 billion against $6.68 billion in the same period of the previous financial year.

Depreciation of local currency may create the importable goods expensive and the exportable goods cheaper.
During the last few months of the last financial year that ended on Saturday, depreciation of taka against dollar was increasing at a staggering rate, which ultimately increased the trade deficit. In December 2011, depreciation was 6.09 per cent and it was 3.07 per cent in January 2012.

‘The slower rate of current account surplus was mainly due to the increase in deficits of trade and primary income,’ said Unnayan Onneshan. During July-April of FY 2011-12, current account surplus was $509 million which is 35.37 per cent lower than that of the same period of the previous fiscal year (2010-11).

In the meantime, a larger deficit in trade and primary income increased by 9.87 per cent and 19 per cent respectively over that of July-April 2010-11. During July-April of FY 2011-12, capital account was in surplus at $429 million, which is 2.27 per cent lower than that of the same period of the previous fiscal year.

In FY 2010-11, capital transfer was $600 million which was 22.95 per cent higher than that of FY 2009-10. Under the business as usual scenario, the Unnayan Onneshan stated it might reach $ 631 million in FY 2012-13.
In spite of a capital account surplus of $ 429 million, a financial account deficit of $934 million and a large negative errors and omissions contribute to the overall account balance deficits of $ 106 million during July-April of FY 2011-12 against a deficit of $502 million during July-April of FY 2010-11.

For the first time in a decade, the overall balance of payments slipped to a deficit in FY 2010-11 and might drive down further in the upcoming fiscal years, cautioned Unnayan Onneshan.


New Age | Newspaper

 

[idune]

Oil may tank economy, again

Wed, Jul 4th, 2012 12:02 am BdST

Reazul Bashar
bdnews24.com Senior Correspondent

Dhaka, July 3 (bdnews24.com) – The government is going to import more fuel oil this fiscal even though the economy took a hit for the import in the previous fiscal.

Abu Bakar Siddique, Chairman of the state-run oil supply company Bangladesh Petroleum Corporation (BPC), told bdnews24.com that they had imported 5.3 million metric tonnes of crude and refined fuel oil in the 2011-12 fiscal.

"The target has been set at 5.9 million metric tonnes in the current fiscal," he said.

He said the import of fuel oil rose to cope with the increased demand in the power sector, the BPC chief said that some 17 percent of the fuel oil imported in the last fiscal was spent on power generation.

Former Finance Adviser to a caretaker government A B Mirza Azizul Islam said purchase of this huge amount of fuel oil would put massive strains on the foreign currency reserve and a drag on the economy.

But the scenario was quite different in the last two years.

The BPC imported 3.8 million metric tonnes of fuel oil in the 2009-10 fiscal, of which 5.72 percent was used by power plants. In the 2010-11 fiscal, 4.5 million metric tonnes fuel oil was imported and 8.12 percent of it was spent to produce power.

The government has already hinted at increasing furnace oil-based power generation in the next year.

The overall contribution of liquid fuels in power generation in 2011 was 11 percent, according to the 'Strategic Development Proposal for the Power and Energy Sectors' placed in Parliament by the Ministry of Finance.


The government has set the target of furnace oil-based power generation at 17 percent for 2012 and 21.6 percent for 2013.


To deal with the soaring demand for power, the government set up 24 furnace oil-based rental and peaking power plants soon after it took the office in January in 2009. The previous caretaker government had taken initiatives to set up 19 power plants, most of which were furnace-oil based.

But the authorities were compelled to suspend production in most of the power plants as the prices of furnace oil shot up.

The government also plans to set up 27 more power plants of the same category with a capacity of 2,545 megawatts from the beginning of this year to September 2014 to shot rolling power cuts.

Chairman of the Power Development Board (PDB) A S M Alamgir told bdnews24.com that the demand for liquid fuel oil to operate the power plants would increase in the current fiscal.

"This time our plan is to ensure maximum power generation. The demand for fuel oil will usually increase in the power plants. So, initiatives have been taken to raise electricity tariff to meet the soaring fuel oil price," he added.

"The import of fuel oil has increased mainly to run the rental and quick rental power plants, which has a direct negative impact on the foreign currency reserve," he said.

"The imports have increased from the last year. The import costs have also increased due to fuel oil though the import of capital machinery and industrial raw materials have come down. If the imports go further up, it will push the inflation higher as the exchange rate will put a huge pressure on foreign exchange reserve."

The government imported goods worth $29.55 billion between July and April in the last fiscal, of which $4 billion was spent on fuel oil. Though there was a 62.62 percent growth on fuel oil and energy exports during the period, the import of capital machinery, raw materials and food items witnessed a declining growth.

Mirza Aziz said the hope for a healthy growth in export and remittance inflow which is necessary to build a forex reserve to import such a huge amount of fuel oil was very little.

Meanwhile, the government has raised the amount of subsidies in the power and energy sectors.

According to the Bangladesh Economic Survey (BES) 2012 published by the Ministry, financial losses of the loss-making state-owned enterprises was estimated at Tk 168.8 billion. The statistics show that the BPC alone counted Tk 160.71 billion in losses

Finance Minister AMA Muhith has said fuel prices will be adjusted to cut subsidy.

Oil may tank economy, again | Business | bdnews24.com

 

[idune]

DSE closes below 4000 mark

Tue, Jul 10th, 2012 3:14 pm BdST


Dhaka, Jul 10 (bdnews24.com ) — The key index of the Dhaka Stock Exchange closed below 4000 mark on Tuesday triggering protests by retail investors.

The DGEN closed at 3988.99 points shedding 156 points or 3.76 percent down on the week's third business day.

Shares and mutual funds worth around Tk 1.85 billion changed hands with prices of 13 issues gaining, 243 declining and 11 remaining unchanged.

On Feb 8, the DSE key index had plummeted below the 4000 mark.

The retail investors started demonstration in front of the DSE around 12:30pm protesting against the price fall. They chanted slogans against the Prime Minister, Finance Minister, Securities and Exchange Commission (SEC) Chairman and DSE President.

The demonstrators demanded that the authorities should close the transaction server to halt the downtrend.

The benchmark index of the premiere bourse lost 6.27 percent or 282 points last week.


DSE closes below 4000 mark | Business | bdnews24.com

 

[idune]

DSE loses Tk 378.46b in market cap over 6 months

Mohammad Mufazzal

The Dhaka Stock Exchange (DSE) has lost over Tk 378.46 billion in market capitalisation over the last six months, as all the measures taken to support the market, including announcement of a 'stimulus' package, somewhat failed to check the continuous downward trend of share prices.

According to experts and affected investors, the 'fruitless' measures taken over the months in the name of market stabilisation, have ultimately created price distortion in the market without containing the flagging trend.

After Tuesday's trading session, the market capitalisation of the DSE stood at Tk 2,279.08 billion, Tk 378.46 billion or 14.24 per cent lower than that of January 01, 2012.

At the same time, the average daily turnover also declined by 72.35 per cent to over Tk 1.85 billion and the DSE General Index (DGEN) shed 25 per cent or 1,248 points over the same period.

Since January 01, 2012, the market continued to decline significantly in most of the trading sessions, and the slight gains of a few days eventually failed to keep the DGEN at a satisfactory level.

Presently, the DGEN is falling sharply almost every day, and small investors, who have been staging demonstrations on a regular basis since December 2010, are getting more and more demoralised.

On the other hand, the institutional investors remain inactive amid the prevailing moribund trend of the market. They are not injecting any significant fund as per their earlier promise to support the market.

"The current situation seems to indicate that presently the government has no time to pay heed to the sufferings of numerous general investors. We are losing hope as the market is operating without any guardian," a small investor told the FE.

Like him many other frustrated investors Tuesday staged demonstration in front of the DSE or were helplessly sitting at brokerage firms.

Yawer Sayeed, managing director of AIMS, said the market cannot be stabilised by creating artificial demand.

"Now where are those people who declared to form market stabilisation funds? Those people created price distortion by announcing formation of such funds," Mr. Sayeed told the FE.

He said the regulator did not punish those people who declared to form stabilisation funds by breaching securities laws.

Mr. Sayeed said no stimulus package can stabilise the market unless policy supports come from all sectors.

Another stock market expert said the SEC also created price distortion in the market by issuing the directive of individually holding minimum two per cent shares by sponsor-directors of the listed companies.

"The securities regulator did not think of the aftermath of the directive. The SEC thought that a demand will be created in the market following mandatory purchase of shares by sponsor-directors."

He said the market was regularly affected due to hearing of the writ petitions, filed challenging the SEC's directive.

"The market never got back its power of natural movement due to disturbances, created by different stakeholders or the securities regulator itself," he added.

DSE loses Tk 378.46b in market cap over 6 months

 

[idune]

Borrowing from non-dealer banks affects credit flow

Friday, 27 July 2012

DHAKA, JULY 26: The central bank’s policy to involve non- PD (non-primary dealer) banks in government securities will create more liquidity crisis and squeeze credit flow further to the private sector which is already hit hard by fund crisis. Entrepreneurs and business leaders Thursday apprehended that the new system, involving the non-PD banks in the government borrowing process, would crowd out private sector investment and slow down the economic growth.

They urged the government to find out other alternatives to lessen its dependence on the bank money.

The Bangladesh Bank (BB) in a circular issued on Tuesday said 25 non-PD banks would have to mandatorily hold 40 per cent of treasury bills (T-bills) and bonds and the rest 60 per cent of the T-bills and T-bonds would be disbursed to the 12 PD banks. The new policy will come into effect from August 1 this year.

The central bank introduced the new policy aimed at shifting the liquidity pressure from the primary dealer (PD) banks to non-PD ones because of growing government borrowing and distributing liquidity pressure among both PD and non-PD banks.A total of 12 leading commercial and three non-banking financing institutions (NBFIs) are working as primary dealers in treasury bills and government bonds while other banks and NBFIs did not require to involve their funds in related operations.

According to sources, the PD banks and some other ones including the NBFIs are facing liquidity problems to meet their day-to-day demand for funds. To overcome the situation, the dealer banks requested the central bank for immediate operational and policy supports intervention.
A primary dealer is a firm which must buys government securities directly from a government. Such institutions are required to make bids or offers when central bank conducts open market operations, provide information to its open market trading desk, and to participate actively in government treasury securities auctions.
These dealers purchase a vast majority of government treasury securities such as T-bills and T-bonds sold at auction and thus provide fund for government.
“The private sector already hit hard by power and energy crisis will be severely affected due to divert of fund,” said Exporters’ Association of Bangladesh president Abdus Salam Murshedy, adding that involving the non-PD banks to lend the government some funds will seriously hamper the private sector.
In the last monetary policy, the central bank has raised the private sector credit growth by 2.3 percentage points over the previous year's target and set at 18.3 percent. “But the new directive seems to be contradictory to the monetary policy, said Murshedy, also a former president of Bangladesh Garment Manufacturers and Exporters Association, BGMEA.
Jahanagir Alamin, president of Bangladesh Textile Mills Association (BTMA), the apex body of the country’s primary textile mills, also echoed a similar apprehension. “Investment as well as expansion of private sector would certainly be hampered if the government engage even the non-pd banks to collect its fund for deficit financing,” said Jahangir adding “Ultimately we will have to suffer……….”
Due to higher borrowing target from banking source, the banks would fall into a severe liquidity crisis and the interest rate on loan disbursement and deposit collection might be increased, he feared.
The new system, most of the entrepreneurs said, is aimed at higher borrowing target from the banking sources to finance budget deficit. As a result, they said, the banks would fall into a severe liquidity crisis and the interest rate on loan disbursement and deposit collection might be increased.
Under such circumstances, the credit flows to the private sector will minimise and, as a result, the country’s industrialisation process will severely be affected.
Eminent economist Dr. Mirza Azizul Islam, however, said that everything depends on the government’s attitude. “If the government goes for excessive borrowings from banking channels certainly it will create liquidity crisis and squeeze credit flow to the private sector,” said the former adviser to the caretaker government. “In this case, both PD and non-PD banks will be under severe pressure.”
He also termed the new system a balanced policy which he said, aimed at sharing the liquidity pressure between the PD and non-PD banks.


Borrowing from non-dealer banks affects credit flow

 

[idune]

Bangladesh slips in global competitive stakes

Wed, Sep 5th, 2012 8:19 pm BdST

Dhaka, Sep 5 (bdnews24.com)—Bangladesh has slipped 10 places, the second biggest drop in a decade, in Global Competitiveness Index of the World Economic Forum due to perceived weakness in macroeconomic management and financial sector.

Bangladesh ranked 118th among 144 countries while it scored 3.65 on a scale of 7 in the report which was 3.73 last year, according to the GCI report 2012-13 released on Wednesday.

The survey aimed at quantifying the quality of the macroeconomic environment, the state of a country's public institutions and its level of technological readiness.
There is also fear that moderate growth would not be achieved this fiscal year while investment environment is deteriorating, revealed the report.

The Centre for Policy Dialogue in collaboration with the World Economic Forum carried out the survey where 87 local big and medium corporate houses were interviewed. The survey was conducted in Feb-Apr period of 2012 while the reference period is 2011.

According to the World Economic Forum's description, the 3.65 range Bangladesh recorded is low, according to its rating index, when pitched against other countries.

"Our main concern is that not only Bangladesh fell in country ranking but also in absolute number, which shows that the internal competitiveness is deteriorating," said CPD's Distinguished Fellow Debapriya Bhattacharya in the report launching ceremony.

More than 60 percent businesses perceived that growth would not be moderate this fiscal while it was less than 40 percent in the last fiscal year.

"Most of the businesses perceived that investment environment deteriorated and expressed concern over weak macroeconomic management," Bhattacharya said.

The adverse business environment affected the growth of employment opportunity and production as these slowed last year, he said.

Entrepreneurs also mentioned that inflation and increased lending rate pushed the production cost up, he added.

The economist said there was a lack of confidence on the macroeconomic management due to increased public spending and interest rate, fluctuation in currency rate and foreign trade.

"There is a fear that development moment gets a pause as new problematic factors are emerging with existing old problems"

CPD Executive Director Mostafizur Rahman said institutions were getting weaker and it affected the other indicators.

Poor infrastructure, corruption, poor access to fund and weak institutions are the major problems in business environment, the report said.

Senior Research Fellow of CPD Khondaker Golam Moazzem in his presentation of the report said the government should take proper steps to regain its competitive strengths.

"Macroeconomic stability and restoration of discipline in financial sector are a must for development," he stressed.

"Financial sector was at disastrous state as there was deterioration in the performance of the banking sector," he said.

He also blamed weak monitoring and supervision of financial sector for lower competitiveness.

Improved efficiency of public institutions and implementation of infrastructure projects would strengthen business competitiveness, he added.

The business houses in their interview mentioned that corruption was widespread and undocumented payment was widely prevalent in 2011.

Switzerland tops the index

The global list has been topped by Switzerland for the fourth consecutive year, followed by Singapore with Finland in the third, which overtook Sweden (4th).

Among the top ten competitive countries, the Netherlands was ranked in the 5th place, followed by Germany (6th), the United States (7th) and United Kingdom (8th), Hong Kong (9th) and Japan (10th).

India's ranking declined by three places to 59th position.

Among the large economies, despite a slight decline in the rankings of three places, China (29th) continues to lead the group.

Of the others, only Brazil (48th) moves up this year, with South Africa (52nd)) and Russia (67th) experiencing small declines in rankings, the report said.

Bangladesh slips in global competitive stakes | Business | bdnews24.com

 

[PlanetSoldier]

Debapriya Bhattacharya said "We are defeating ourselves to ourselves" on this slipping.

 

[eastwatch]

@idune, it is not Awami League or BNP that is or was destroying BD economy, it is your kind of uncouth Jamaati Mullahs who are desparately trying to blow up the economy and the country to prove that an independent BD was a wrong decision. Inshallah, BNP and AL supporters will always fail your ill efforts. Jamaat will be in the gutter in the next election because BNP will keep away from this Party.

AL dicision to try, although there should not be any trial I think, the Razakars like you have created a situation that even BNP will not seek their cooperation in the election. Jamaat will not win even three seats, and BNP will certainly win the majority seats. Once the people's mandate is given in this way, Jamaat will be thrown into the dustbin by the grace of Allah.

 

[Luffy 500]

@idune, it is not Awami League or BNP that is or was destroying BD economy, it is your kind of uncouth Jamaati Mullahs who are desparately trying to blow up the economy and the country to prove that an independent BD was a wrong decision. Inshallah, BNP and AL supporters will always fail your ill efforts. Jamaat will be in the gutter in the next election because BNP will keep away from this Party.

AL dicision to try, although there should not be any trial I think, the Razakars like you have created a situation that even BNP will not seek their cooperation in the election. Jamaat will not win even three seats, and BNP will certainly win the majority seats. Once the people's mandate is given in this way, Jamaat will be thrown into the dustbin by the grace of Allah.

Seems like the Awami malaun from japan is having sleepless nights in fear of JI. Defending BAL after all the disaster they have caused and instead blaming them on the JI, what kind of a shamless hypocrite are you? And why are you calling indune and anyone else Jamati if they point out Awami corruption and dalali. Does you A$$ heart for BAL. Don't try to hide behind BNP flag , as you are right that they will get the majority but they won't spare extremist opportunist Indian maloos like you who always conspire against the state. Have some shame before trying to defend BAL's extremism and corruption like a braindead baffon.

 

[Zabaniyah]

@idune, it is not Awami League or BNP that is or was destroying BD economy, it is your kind of uncouth Jamaati Mullahs who are desparately trying to blow up the economy and the country to prove that an independent BD was a wrong decision. Inshallah, BNP and AL supporters will always fail your ill efforts. Jamaat will be in the gutter in the next election because BNP will keep away from this Party.

AL dicision to try, although there should not be any trial I think, the Razakars like you have created a situation that even BNP will not seek their cooperation in the election. Jamaat will not win even three seats, and BNP will certainly win the majority seats. Once the people's mandate is given in this way, Jamaat will be thrown into the dustbin by the grace of Allah.

What does this post have to do with the topic?

 

[eastwatch]

Borrowing from non-dealer banks affects credit flow

Friday, 27 July 2012

DHAKA, JULY 26: The central bank’s policy to involve non- PD (non-primary dealer) banks in government securities will create more liquidity crisis and squeeze credit flow further to the private sector which is already hit hard by fund crisis. Entrepreneurs and business leaders Thursday apprehended that the new system, involving the non-PD banks in the government borrowing process, would crowd out private sector investment and slow down the economic growth.

They urged the government to find out other alternatives to lessen its dependence on the bank money.

The Bangladesh Bank (BB) in a circular issued on Tuesday said 25 non-PD banks would have to mandatorily hold 40 per cent of treasury bills (T-bills) and bonds and the rest 60 per cent of the T-bills and T-bonds would be disbursed to the 12 PD banks. The new policy will come into effect from August 1 this year.

I ask all the jamatis why a govt borrowing from the Banks should be used to propagate that AL is destroying economy? Why it is relevant to the current thread? Govt borrowing is a completely different matter. There are tens of newspaper reports in this thread that have no relevance to the present thread.

Borrowing by the govt is done to finance a deficit budget and in a developing country deficit budget becomes necessary. Otherwise, the economic expansion stops. People should understand that if the businesses borrow too much of money from Banks they hoard goods and it creates inflation.

On the other hand, govt borrowing within limits, spreads the wealth because the govt spends the borrowed money for development works. However, I believe there is also an inflationery pressure by this, but it is much less than the private borrowings.

The best way to used private borrowings is to invest in factory building. But, many industrialists are shying away from spending in factory building because the Govt is unable to supply power. It is a legacy of BNP corruption.

 

[Zabaniyah]

On the other hand, govt borrowing within limits, spreads the wealth because the govt spends the borrowed money for development works. However, I believe there is also an inflationery pressure by this, but it is much less than the private borrowings.

The best way to used private borrowings is to invest in factory building. But, many industrialists are shying away from spending in factory building because the Govt is unable to supply power. It is a legacy of BNP corruption.

As for power, it has improved now.

It's true, the government engaged in heavy borrowing from banks to finance this 'quick' rental power plant thingy, which uses imported fossil fuels. It was partly for this reason that the Taka depreciated rapidly over time.

And what's more, there were other cheaper alternatives of power sources such as coal, hydro and wind. But government wanted a fast solution.

Now, there is no money in the banks. And no one is investing or buying which made the economy stagnant. It's hard to sell off property since it's now much harder to find buyers.

It is lack of strategic initiative that contributed to this.

And oh, let's not forget about that Sonali Bank scam. There are clearly people who were involved in the scam, and they openly say "I didn't do it"

 

[idune]

I ask all the jamatis why a govt borrowing from the Banks should be used to propagate that AL is destroying economy? Why it is relevant to the current thread? Govt borrowing is a completely different matter. There are tens of newspaper reports in this thread that have no relevance to the present thread.

Why you shame yourself for something you have no knowledge about? And here are few exposure of Awami looting scheme to shut thug like yourself.

This confession of sorts is in sharp contrast to the government's obdurate reluctance to admit that the oil-driven rental power plants have thrown fiscal discipline out of the window and that government borrowing has crowded out the private sector. These gas-guzzling plants have increased petroleum imports by more than three billion dollars punching a big hole in the balance of payments. This was further aggravated by foreign relations' debacles that have dried up external funds. There has been very little net inflow of foreign resources during this fiscal year. A consequence of this has been the depreciation of the taka.

An automatic adjustment mechanism will be put into effect by the year-end to ensure full pass-through of international fuel prices to domestic prices. Thus the subsidy costs will be shifted to the public.

http://www.thefinancialexpress-bd.com/more.php?news_id=128335&date=2012-05-01

Awami league looters are shifting borrowing burden from govt bank to private bank which will further squeeze fund for private sector investors. That is one reason Bangladesh competitiveness slipped 10 position, steepest in decade. That is how investment, job creation and economy is falling further behind.

This govt borrowing burden was caused by rental power plant scam which were hatched to benefit Awami league party man in the form of subsidy and hefty purchasing rate without any bidding process.