Bangladesh economy at a crossroads

GBDESK//

Bangladesh’s economy is in its worst state in recent history, and the situation may worsen if the policymakers do not address the problems by employing the appropriate policy tools, the Centre for Policy Dialogue (CPD) said yesterday.

High inflation, slowing remittance and exports, falling forex reserves, lack of good governance, lax policy implementation, and inability to make necessary reforms are mainly responsible for the current economic crisis, the think-tank said.

“Bangladesh’s economy is at a crossroads and going through the most difficult time in recent history,” said Fahmida Khatun, executive director of CPD.

She made the remarks while presenting a review of the “State of the Bangladesh Economy in FY2022-23” at a press briefing at the CPD office in the capital’s Dhanmondi.

Fahmida said many policies are now drawn up to protect the interests of influential groups and the policymakers should not do so.

Considering the current economic situation and the next budget to be presented on June 1, there is no doubt that the primary task of the policymakers should be restoration of macroeconomic stability, she said.

The policymakers should set targets for the macroeconomic framework for the upcoming fiscal year taking into consideration the current realities, said the CPD executive director.

“Mistakes committed during the preparation of the FY2022-23 budget — that is setting the targets for the macroeconomic correlates in an unrealistic manner — must not be repeated.”