Ministries and divisions have submitted proposals for revision of 375 projects in the concluding FY24 despite repeated calls for timely implementation of projects to prevent time extension and cost increase.
Officials said that the Implementation, Monitoring and Evaluation Division had already completed scrutiny of 345 proposals by the end of FY24.
The revision proposals on the rest 35 projects were under process, said the division鈥檚 officials, referring to its monthly review meeting held on July 18.
Based on the recommendations of the implementation, monitoring and evaluation division, the Executive Committee of the National Economic Council will review the requests for time extension, or cost increase, or both regarding the projects in its meetings to be held in the current FY25.
The proposals for revision came against 1,638 projects being implemented under the annual development programme of FY24.
The division, however, received around 50 less project revision proposals in FY24 than it did in FY23, said the officials.
In FY23, it received 426 proposals for revision of projects.
Economists said that time and cost overruns reduced economic benefits of the development projects and also caused wastage of funds.
On January 24, the government appointed a committee led by the principal secretary to review projects especially those being implemented under foreign loans.
Timely utilisation of foreign-funded projects is imperative to avoid cost and time escalation, particularly for those linked to overseas debt repayment, said Centre for Policy Dialogue distinguished fellow Mustafizur Rahman.
Projects revision hampered debt sustainability, he said.
The country is under pressure due to growing foreign debt payment, said former World Bank Dhaka office chief economist Zahid Hussain.
The overseas debt repayment hit more than three times higher to Tk 37,307 crore in recently concluded FY24 than the amount paid three years ago.
In FY21, around Tk 12,018 was required to clear the overseas debt payment, according to the Economic Relations Division.
Zahid Hussain said that the government had been tackling the problem of dollar shortages since April 22.
The forex reserves now hovers around $20 billion from $48 billion in August 2021.
Since April 2022, Bangladesh Bank has been maintaining import restrictions while the government has borrowed $4.7 billion from the International Monetary Fund to offset dollar shortages.聽聽聽聽聽聽聽聽聽
Economists said that the dollar crisis had also hampered the implementation of the annual development programme in FY24.
The annual development programme utilisation rate hit a four-year low to 57.54 per cent in the first 11 months of the FY24 as ministries and divisions could spend only Tk 1,46,375 crore during the period.
In FY20, the implementation, monitoring and evaluation division recorded 57.37 per cent annual development programme implementation rate.
