DHAKA: Country’s economists Monday suggested the government properly utilize a glut of foreign exchange sent by expatriate Bangladeshis in remittances instead of depending on drip-feed of foreign aid.

They gave the opinion at a discussion titled ‘Joint cooperation strategy: Effectiveness of aid and development’ organized by Aid Accountability Group at the CIRDAP Auditorium in the city.

In his address, Palli Karma Shahayak Foundation (PKSF) Chairman and chief guest of the function Dr. Kholiquzzaman Ahmad informed that only 2 percent of country’s national income comes from foreign loan or financial assistance while minimum 10-11 percent comes from the remittances sent home by the expatriates living abroad.

“We receive foreign aid instead of utilizing expatriates’ remittances,” he regretted. “If it is a necessity, then it must be in favour of national interest.”

The noted economist also suggested all concerned to be alert in signing agreement, apart from taking necessary steps, in utilizing the huge remittance money.

“Those engaged in negotiations with the foreign donor agencies will have to be more skillful and competent,” he said.

Another eminent economist, Prof Anu Mohammad, alleged that cent-percent loan money provided by the donor agencies could not be brought in the country.

He said, “Most of the loan money provided by donor agencies is spent on hiring consultants, airfare and buying machinery, computer and office appliances. Corruption and misuse are the major parts in the process of foreign aid and loans.”
 
Anu Mohammad also informed on an average US$ 1 billion comes in the country annually as foreign loan while the expatriates send remittances worth around US$ 10 billion.

Finance Adviser of the last caretaker government Dr. Mirza AB Azizul Islam, however, said: “The time for ignoring foreign loans in the national budget has not yet come.”

Mirza Aziz, who also once served as alternate executive director of the World Bank, pointed out that still 40 percent of the national budget comes from foreign assistance.

Anisul Islam Mondol, former Finance Secretary Siddiqur Rahman Chowdhury and Nijera Kori chairperson Khushi Kabir were among others who participated in discussion.

BDST: 1529 HRS. SEP 20, 2010