Dhaka: The National Economic Council (NEC) on Tuesday approved the 7^th Five-Year Plan (FY2016-FY2020) aiming to accelerate employment generation and reduce poverty through substantially increasing FDI inflow and maintaining a growth rate of 7.4 percent on average over the five-year period.

The approval was given at a meeting of the NEC held at the NEC conference room with its Chairperson and Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting, Planning Minister AHM Mustafa Kamal said the Prime Minister directed the authorities concerned to frame the next Perspective Plan (FY21-FY40) to be implemented through four five-year plans to materialise the country’s vision to become a developed one by 2041.

During materialisation of the 7^th Five-Year Plan, the minister said, fast track projects will be implemented as per schedules to help move the country to a trajectory of higher growth.

The plan also aims to empower people by creating jobs and skill development opportunities, supply credit for SME development and many other ways to people for becoming more productive. It will also emphasise social protection, urban transition and a sustainable development pathway resilient to disaster and climate change.

Member of General Economics Division (GED) of the Planning Commission Dr Shamsul Alam presented the summary of the 7^th FYP (2016-20). The theme of the 7^th FYP is ‘Accelerating Growth, Empowering Citizens’.

Apart from attaining average growth rate of 7.4 percent over the period, the plan also seeks to raise the GDP growth rate progressively from 6.5 percent in FY2016 to 8 percent by FY 2020.

It is estimated that some 12.9 million additional jobs will be available during the five-year period, including 2 million abroad.  Again, the plan seeks to reduce poverty rate from 24.8 percent to 18.6 percent and extreme poverty to around 8.9 percent by FY2020.

Mustafa Kamal stressed that the FDI inflow in Bangladesh needs to be increased from the current level of about 1 percent of GDP to 3 percent for achieving the financing of the investment target of the 7^th Five-Year Plan.

He said utmost importance would be given to research and expenditure. Again, public spending on social protection will be increased from 2.02 percent of GDP to 2.3 percent of GDP by FY2020.

The 7^th FYP will emphasise human resource development, enhancing social equity through inclusive growth and ensuring the sustainability of growth through continued macroeconomic stability and protection of the natural environment.

The other key highlights of the 7^th FYP include increasing the contribution of the manufacturing sector to 21 percent of GDP by 2020, substantial improvement of exports to $54 billion, achieving a trade-GDP ratio of 50 percent by FY20, raising total revenue collection from 10.7 percent of GDP to 16.1 percent by FY20, public expenditure to 21.1 percent by FY20, FDI inflow to $ 9.6 billion by

FY20, power generation capacity to 23,000 MW by 2020, power coverage to 96 percent, productive forest coverage to 20 percent, and increasing land zoning for sustainable land and increasing earnings from ICT, travel and tourism from $ 1.5 billion to $ 6 billion.

According to the summary of the 7^th FYP, Bangladesh will require an investment of Tk 31,903 billion to implement it in a bid to boost its economic growth to 8.0 percent in its terminal year (FY) of 2020.

The plan document said some Tk 28,851 billion or 90.4 percent of the total required investment is projected to come from domestic resources while Tk 3,052 billion or 9.6 percent from external sources.

According to the 7^th FYP, Bangladesh’s economy will grow at 7.0 percent rate in the current FY2016, 7.2 percent in FY2017, 7.4 percent in FY2018, 7.6 percent in FY2019 and 8.0 percent in FY2020.

The plan also aims to contain inflation at 6.2 percent in the current FY16, 6 percent in FY17, 5.8 percent in FY18, 5.7 percent in FY19 and 5.5 percent in FY20.

It also eyes to raise the gross domestic investment to 30.1 percent of GDP in FY16, 31 percent in FY17, 31.8 percent in FY18, 32.7 percent in FY 19 and 34.4 percent of GDP in FY20.

Besides, the national savings is expected to rise to 29.1 percent of GDP in FY16, 29.7 percent in FY17, 30.2 percent in FY18, 30.7 percent in FY19 and 32.1 percent of GDP in FY20.

Asked about the huge target of creating big labour market abroad, the Planning Minister said the government is hopeful that there would be more penetration in the labour market abroad during this 7^th FYP period compared to the 6^th FYP period.

About the growth projection of the World Bank regarding Bangladesh, AHM Mustafa Kamal said since there is possibility of uncertainty or instability here like other countries, the average growth projections have been kept at 7.4 percent. “Otherwise, it would have been kept higher.”

​In order to monitor and evaluate the implementation of 7^th FYP, the DED Division will incorporate 88 index-based Development Results Framework. Under this result framework, GED will publish a mid-term and final evaluation report.

State Minister for Finance and Planning MA Mannan was, among others, present at the briefing.