The pace of development project implementation is expected to remain sluggish throughout the current fiscal year, Planning Adviser Professor Wahiduddin Mahmud said on Monday, citing structural, administrative and political constraints.
Speaking to reporters after the National Economic Council (NEC) meeting that approved the Revised Annual Development Programme (RADP), Prof Mahmud said the slowdown in project execution, initially expected to be short-lived, has persisted into this year.
“The implementation slowdown that we had hoped would be temporary has unfortunately continued,” he said, adding that while the overall quality of projects has improved, total development spending remains constrained.
According to the adviser, the government has prioritised project quality, accountability and transparency, even though these reforms have had a short-term impact on the speed of implementation.
“The focus on better quality and stronger oversight has slowed execution, but these steps are necessary,” he noted.
The NEC approved the revised ADP at Tk2,08,935 crore, around 13 percent lower than the original allocation. Prof Mahmud said the reduction reflects difficulties in implementing ongoing projects and a lack of well-prepared, viable new proposals.
“The lower ADP does not mean development needs have diminished. It reflects a shortage of implementable projects,” he explained.
He identified political uncertainty, weak private investment and high interest rates as major impediments to economic momentum. Limited bank lending to small and medium enterprises has further constrained private sector growth, particularly in areas less supported by remittance inflows, he added.
The planning adviser also acknowledged persistent weaknesses in project management, including shortages of competent project directors, delays and cost overruns.
To address these issues, the NEC has approved the formation of a pool of trained civil servants to be deployed in key planning and project management positions.
In a move to strengthen accountability, all self-financed projects of autonomous bodies and state-owned enterprises costing more than Tk50 crore will now require approval from the Executive Committee of the NEC (Ecnec).
Stricter conditions for new project approvals—such as mandatory progress reports and independent evaluations—have also been introduced.
Prof Mahmud said these measures may initially slow project implementation but are essential to improve project quality and reduce wastage of public money.
He added that the rollout of the electronic public procurement system has also temporarily slowed procurement processes, even as it enhances transparency and competition.