PM orders establishment of new economic zones to create employment

The 8th Five-Year Plan was approved with a target of

• increasing the total GDP growth rate to 8.51%
• creating more than 1.13 crore jobs at home and abroad
• reducing the poverty rate to 15.6%

The new five-year plan sets an investment target of Tk64.96 lakh crore, of which

• more than 81% will come from the private sector
• 88.5% of the total investment will be raised from the domestic sector

In order to implement this plan

• revenue collection has to be increased from 9.4% to 14.08% of GDP
• domestic investment must be increased from 31.75% to 36.99% of GDP

It aims to increase power generation to 30,000 MW to meet 100% electrification and industrialisation demand. 

The average life expectancy of people at the end of the plan will be 74 years

Prime Minister Sheikh Hasina has ordered that suitable employment opportunities be created for the youth, in Bangladesh, to reduce their dependence on foreigners for employment.

She has directed the officials concerned to establish more new economic zones outside the existing ones in the country.

The prime minister gave the directive at a meeting of the National Economic Council (NEC) on Tuesday while approving the 8th Five-Year Plan for implementation from the current fiscal year to Fiscal Year 2024-2025.

Sheikh Hasina presided over the meeting, held at the NEC Conference Room in the capital, via a video conference call.

The new five-year plan was approved with a target of increasing the total GDP growth rate to 8.51%, creating more than 1.13 crore jobs at home and abroad and reducing the poverty rate to 15.6% in the next five years.

In order to implement this plan, the government's revenue collection will have to be increased from 9.4% of GDP, which it was last year, to 14.08% of it and domestic investment from 31.75% of GDP to 36.99% of it.

Planning Minister MA Mannan presented the details of the plan at a press conference after the meeting. Dr Shamsul Alam, member of the General Economics Division of the Planning Commission, answered journalists' questions at that time.

The planning minister said Prime Minister Sheikh Hasina informed them that more economic zones will be set up outside the existing and in-process economic zones.

Highlighting the prime minister's order, he said many people are going abroad. An environment will be created to keep the youth in the country. A policy of creating employment within the country will be undertaken for them.

The planning minister further said the prime minister has directed them to take initiatives to protect arable land. She suggested formulating a union based land use plan for this purpose.

Quoting the prime minister, the planning minister said, "Make land-based planning for all unions, so that houses are not built haphazardly."

According to sources at the Planning Commission, there was a target of creating 1.29 crore jobs under the 7th Five-Year Plan, but 95 lakh jobs have been created.

In contrast to the target of creating 1.09 crore jobs in the country, only 60 lakh jobs were created in Bangladesh. However, despite the target of sending 20 lakh workers abroad, 35 lakh people have been sent abroad for work in five years.

Although more people went abroad than expected, the number of jobs, overall, created in Bangladesh is 34 lakh less than the target.

The new five-year plan sets an investment target of Tk64.96 lakh crore over the next five years, of which more than 81% will come from the private sector. Besides, 88.5% of the total investment will be raised from the domestic sector.

The planning minister said a large chunk of investment came from abroad in the post-independence period. The plan has been formulated prioritising domestic resources due to an increase in economic capacity.

He added that more than four-fifths of the economy is now in the hands of the private sector. However, the government is controlling policy issues. The private sector is doing business with full independence from within the government policy.

The planning minister said in light of the government's development vision and election manifesto, priority has been given to the policy continuity of the long-term plans in the 8th Five-Year Plan.

In addition, the Sustainable Development Goals (SDGs) have been included in this plan. The necessity of continuing the efforts to achieve these goals has been seriously considered.

Dr Shamsul Alam said during the implementation of the 8th Five-Year Plan, the average annual GDP growth will be achieved at an 8% rate on average, and at 8.51% percent in the last financial year of the plan.

Dr. Alam added that by 2025, the tax-to-GDP ratio will be increased from the current 8.90% to 12.30%. A continuation of efforts to further reform the revenue law plus modernise and strengthen the tax administration has been recommended in this plan to increase revenue and reduce reliance on trade tariffs.

Moreover, emphasis has been placed on the necessary funding for the implementation of projects through public-private partnership.

A target has been set to reduce the poverty rate to 15.6% and the extreme poverty rate to 7.4% in the last year of implementation of the plan.

The average life expectancy of people in the country at the end of the plan will be 74 years.

The plan aims to increase power generation to 30,000 MW to meet the 100% electrification and industrialisation demand.