Dhaka: Costly mega projects taken during the Awami League government, including the Padma Bridge, Padma Rail Bridge, Karnaphuli Tunnel, and Payra Port, have had adverse impacts on the market, contributing to economic instability, Commerce Adviser Sk Bashir Uddin reiterated on Sunday.
According to United News of Bangladesh, Bashir Uddin highlighted the economic repercussions of these large-scale projects during a press conference at his ministry. He pointed out that the projected toll collection from the Padma Rail Bridge was Tk 1,400 crore, but only Tk 26 crore has been realized so far. The anticipated GDP increase of 2 percent due to the Padma Bridge has not materialized; instead, GDP has declined. Further, he questioned the viability of the Payra Port, given its draft of only four meters, and likened the Karnaphuli Tunnel to a similar dilemma.
The adviser criticized the investment in these projects, stating that thousands of crores of taka have been spent over the last one and a half decades on what he described as unnecessary and poorly planned projects. These projects, he argued, failed to generate sustainable income, leading to an increased debt burden and currency depreciation.
Bashir Uddin urged a re-evaluation of the returns from such investments, suggesting that funds would have been better spent on sectors like irrigation and fertilization, which could have improved Bangladesh’s debt repayment capacity. He noted that foreign debt rose from Tk 2 lakh crore when the Awami League assumed power in 2008 to Tk 23 lakh crore by 2025.
He also highlighted a 46 percent depreciation in currency value over the past one and a half decades and criticized what he described as an organized spree of looting that has damaged the banking sector. This situation, he said, forced Bangladesh to seek loans from the International Monetary Fund, loans that were not sought by the interim government but by the Awami League government.
The adviser assured that the interim government is committed to halting unnecessary project spending and has already canceled hundreds of projects involving thousands of crores of taka. Projects with substantial expenditure already incurred are being continued out of necessity, while those with minimal expenditure have been scrapped.
Bashir Uddin also expressed concerns about the cost escalation of the Rooppur Nuclear Power Plant, attributing an increase of Tk 26,000 crore mainly to currency depreciation. When asked about a Tk 786 crore project for constructing three new buildings for future ministers, he stated he was unaware of the matter and hence could not comment.
He concluded by emphasizing the need for project spending to align strictly with realistic income sources.