Excess liquidity shows economy not on right track: Muhith

Excess liquidity shows economy not on right track: Muhith Finance Minister AMA MuhithStar Online Report Finance Minister AMA Muhith today said in Parliament rise of liquidity in the banks shows country’s economy is not running on the right track. “We have to confess that investment is not being made properly due to world economic recession,” Muhith said. “We cannot say that we would be able to get rid of the current situation easily." “However, we hope, the situation may change by the end of this year,” he said. Muhith said the amount of surplus liquidity increased to Tk 347.62 billion in June 2009 from Tk 129.89 billion in June 2008. “Debt flow to private sector has been decreased little due to uncertain investment situation caused by global meltdown. It’s not because of country’s monetary policy,” Muhith said. He said the main obstacles to investment are shortage of power and energy, which are must for investment. “We have taken various measures at government level to deal with the situation,” he added. The finance minister said the investment situation might take positive turn after starting of implementation of the public private partnership. On stimulus package to address the global meltdown, Muhith said the taskforce formed to deal with the prevailing situation would sit on September 16 to review the implementation of the package. He said the government is emphasizing to implement the stimulus package to tackle the impact of global economic recession on country’s economy.