Interim govt to focus on projects of public importance
In response to the ongoing economic crisis, the interim government is expected to cancel projects initiated by the previous government that were politically motivated or aimed at garnering votes. Instead, the focus will shift toward projects of public importance, particularly those related to livelihood improvements, while reducing allocations for large-scale mega projects.
The Planning Commission has already prepared a proposal outlining these changes, which will be presented to Finance and Planning Adviser Saleh Uddin Ahmed. The commission's sources indicate that while the financial crisis has slowed down the implementation of many development projects, mega projects have largely remained unaffected. However, following the recent mass uprising led by students, the future of these projects has become uncertain.
Mohammad Emdad Ullah Mian, Member (Secretary) of the Physical Infrastructure Division of the Planning Commission, emphasised that ongoing projects would be prioritised, with damaged ones slated for renovation. He also noted that social and financial considerations would play a more significant role under the interim government.
Another Planning Commission official, who requested anonymity, mentioned that many politically driven projects are likely to be dropped, and the budget for several mega projects will be reduced. The focus will now be on projects that can deliver quick, tangible benefits to the public.
Analysts suggest that the continuation of mega projects will depend on the interim government's policies. The previous Awami League government had prioritised these projects as symbols of visible development, despite repeated advice from economists, including some in the interim government, to de-emphasize them.
Among the mega projects highlighted in the Annual Development Program (ADP) for the fiscal year 2024-25 are the Rooppur Nuclear Power Project, with an allocation of Tk 10,502 crore, and the Metrorail Line-6 project, with a Tk 1,975 crore allocation. Other significant projects include the Bangabandhu Sheikh Mujib Rail Bridge and the Dohazari-Cox's Bazar-Gundum railway project, both of which involve foreign loans from countries like Japan and China, and institutions like the Asian Development Bank (ADB).
However, due to the financial crisis, ADP implementation has stalled, with only 57.54 per cent of the plan executed in the first 11 months of the 2023-24 fiscal year, leaving 43 per cent of the work to be completed in just one month.
The current ADP includes 1,321 projects, of which 1,133 are investment projects, 87 are technical assistance projects, and 21 are survey projects. Planning Commission officials believe that the interim government may scrap many of these, particularly those approved through political lobbying.
Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (INM), commented that the interim government has limited time but many important tasks.
He advised that ongoing projects should be carefully assessed and continued only if they are genuinely necessary. He also highlighted the challenge of revenue collection as a key consideration for the government.
