GDP posts 2-3pc less growth for graft: Muhith

Finance Minister AMA Muhith today said the country’s GDP posts 2-3 percent less growth due to widespread corruption.

Social disruption, including political unrest, also eats up around 1 percent of growth in the country’s gross domestic product, he said, referring to the prime minister’s recent comments on the issue.

“It’s a serious problem that the corruption prevails in every sector and the cost of corruption is 2 to 3 percent of the GDP,” he said while addressing the special plenary meeting of the Local Consultative Group held at the NEC Conference Room in the capital.

Punitive and detection measures are not adequate enough to deal with the problem, Muhith said, adding that the ICT can be an important instrument in tackling the corruption.

In the meeting, donors also identified the corruption as a major barrier to the country’s development and economic growth. They hoped that the government will take some appropriate measures to reduce the corruption.

Commenting on the 7th five year plan, Muhith said the employment generation target in the next five years is very ambitious, as the unemployment rate is high.