June 12, 2022 9:30:51 PM
Planning Minister MA Mannan said that the economy is currently facing difficult challenges and social stability is essential in such a situation to implement a budget regardless of its size.
Bangladesh Bank and the National Board of Revenue are working under pressure to control inflation and keep the fortunes of the fixed-income and low-income segments stable, he said.
Mannan said this while speaking as a keynote guest at the post-budget discussion organized by the American Chamber of Commerce in Bangladesh (AmCham), which was held at a hotel in Banani on Sunday.
Former Advisor to an AB Interim Government Mirza Azizul Islam, Ahsan H. Mansur, Executive Director, Policy Research Institute of Bangladesh (PRI), and Masrur Reaz, President of Policy Exchange, Bangladesh spoke on the occasion, reports UNB.
Mirza Aziz said the size of the budget is acceptable but the allocation in different sectors needs to be revised given the current economic challenges.
He also called for the reform of the NBR and the bond market, both of which need modernization and reform to attract investment as well as foreign direct investment.
Ahsan H Mansur delivered a keynote address on the various aspects of the proposed budget and illustrated that two major issues have arisen: a sharply widened trade account deficit due to increased imports resulting in an unstable foreign exchange market, and pressures inflationary.
The global price shock in the aftermath of the pandemic due to the ongoing Russian-Ukrainian war has led to a drop in workers’ remittances after the reopening of international travel and a widening gap between the curb market and the interbank “exchange rate” he added.
Slow and inadequate exchange rate flexibility and inability to use monetary policy given interest rate caps on lending and deposit rates, act as constraints on policy, he said. .