The government is yet to start the procedures to defer implementation of the less- important development projects in order to curb spending from foreign-currency reserves amid its fast depletion, officials said.
The wing concerned of the Ministry of Finance (MoF) did not receive any directives from the high-ups even three weeks after Finance Minister A H M Mustafa Kamal unveiled his plan in this regard, they added.
Officials concerned are sceptical whether or not the plan would be implemented in this fiscal year (FY), 2021-22, which has less than one month left.
Briefing newsmen after a cabinet meeting on May 11, the finance minister said the less important projects, planned to start now, can be deferred for implementing latter to save foreign currency.
Amid lower inflow of foreign currency and scarcity of the US dollar in the market, the government enhanced required margin for importing all non-essential items and curbed foreign tours of the government employees unless highly necessary.
Besides, higher regulatory duty is imposed on import of luxurious items to discourage bringing those by spending costly foreign currency - at a time when the country as well as the world is facing impacts of the economic crisis emerged from the Russia-Ukraine war.
MoF additional secretary Tahmid Hasnat Khan told the FE on Monday that the plan (to defer the low-priority development projects) may not be implemented in this fiscal.
Asked whether or not the ministry has started the work or prepared a list of the possible projects, whose implementation would be delayed, he answered in the negative.
Mr Khan also said the plan can be implemented by making low fund allocation for the less important projects.
"But, we did not get any directives from the high-ups so far in this regard."
The government might implement the plan from next year or observe the situation further, he added.
The country's foreign currency reserve came down to below US$42 billion this month from $48.1 billion in August last year amid higher spending for importing goods, as the COVID pandemic situation eased globally and demand for finished goods increased.
The fast depletion of the foreign currency reserve forced the government to take these measures.
