Infrastructure development remains a huge challenge to Bangladesh's economic growth, said outgoing Asian Development Bank country director Hua Du Wednesday.

"Despite the vast improvement in infrastructure supports like, power, energy, transport and communications, it is not matching the country's demand," Hua Du said in her speech to a farewell by Bangladesh Garment Manufacturers and Exporters Association.
 
Hua Du is expected to leave Dhaka Monday, ending her five-year stint in Bangladesh.
 
She has been serving as head of the mission since 2005 and will now join the bank's head office in Manila.
 
Speaking on Bangladesh's RMG sector, the outgoing country director said the sector sustained and grew successfully during the post-MFA (Multi-Fibre Arrangement) period despite predictions of a collapse in the industry by many quarters.
 
The MFA governed the world trade in textiles and garments from 1974 through 2004, imposing quotas on the amount developing countries could export to developed countries.
 
"Actually the ADB was the only development partner then who had confidence on the Bangladeshi RMG sector," Hua Du added.
 
She also said the RMG sector has been able to witness higher growth year by year, which led Bangladesh to be the second largest garment exporter in the world.
 
Pointing to the need for huge investments in infrastructure development, Hua Du recommended a public-private partnership initiative in this regard.
 
"Since revenue earnings comprise a very little portion of the country's GDP."
 
Stressing human resource development, the ADB official said the bank had approved a support of $50 million for a skills development programme.
 
"At present, the project is awaiting ECNEC's nod and we hope it would contribute to the training of workers and carve them in line with the market's need," said Hua Du.
 
Terming the current fiscal year's budget as 'pro-poor and business-friendly' Hua Du said the present government's measures would definitely contribute to the country's economic growth.
 
BGMEA president Anwar-Ul-Alam Chowdhury Parvez thanked Hua Du for contributions to the power, infrastructure and human resources development sector during her stay in Bangladesh.
 
On the RMG industry he said, "The sector employs 40 percent of people in the total manufacturing field and it accounts 76 percent of our export earnings."
 
In his speech, Parvez urged the government not to go for contractionary monetary policy. "It should have been more open which was needed for employment generation."
 
On the 'abnormally high' 14 percent interest rate, the BGMEA chief said neighbouring countries such as India and China have a 3 percent interest rate on bank loans.
 
The business leader also focused on necessary steps by the government for the high commodity and fuel prices as 'it creates big pressure on the livelihood of people'.
 
Representatives from World Bank, IMF, WHO, ILO also attended the ceremony.

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