disclosure 2024-04-23 20:01:38
The former governor of Bangladesh Bank left questions to the government. Farasuddin Ahmed said, why 12 percent of the export income remains abroad, why is 7 billion dollars being smuggled annually? We can’t figure out why. I will tell Sarkar Bahadur to control it.
Institute of Cost and Management Accountants of Bangladesh (ICMAB) on Tuesday (April 23) organized a pre-round table discussion on the national budget for the financial year 2024-25. Dr. said these things in the speech of the special guest at the Pan Pacific Sonargaon Hotel in Dhaka. Farasuddin Ahmed.
Minister of State for Finance Wasika Ayesha Khan was present as the chief guest. Besides, Executive Director of Policy Research Institute (PRI) also participated in the event as a special guest. Ahsan H Mansoor and FBCCI President Mahbubul Alam.
Dr. Farasuddin Ahmed said, currently 78 percent people are unemployed in the country. Contractionary monetary policy in this situation is suicidal. Because inflation control is not possible through contractionary monetary policy. When the interest rate was 9 percent there was still inflation. To resolve this, stockpiling and supply must be increased. In this case, you have to work with transparency.
The former governor also said, unless there is a single exchange rate, the decline in reserves will not stop. Multiple exchange rates are maintained for the convenience of middlemen. If there is a single exchange rate, there will be no middleman and the direct remitter will get the benefit. This will increase the dollar supply. Moreover, export earnings abroad may be around 5 percent at most. But it exceeded 12 percent. This should be resolved.
In order to meet the budget deficit, instead of borrowing from abroad, he advised taking loans from savings certificates and said that various problems are created if the deficit is met by taking loans from foreign sources or the banking sector. If the government borrows from the bank, the private sector suffers. But borrowing from savings bonds does not hurt inflation.
Ahsan H. Mansoor said that the government’s expenditure will increase in May and June. The pressure of this expenditure will be on the banking sector of the country. But it will be very difficult for banks to take this pressure.
Bangladesh Bank says we will not give loans to the government. Again, the financial sector regulatory body is providing liquidity facilities to commercial banks. It will not work, as the banks are giving loans to the government again, said PRI Executive Director Ahsan H Mansoor. To make the money attractive, the rate of interest should be higher. It needs to be done even if only for a short period of time.
State Minister of Finance Wasika Ayesha Khan said in the chief guest’s speech that the country’s capital market needs to be discussed. Because the private sector does not take money from the capital market. State Minister for Finance Wasika Ayesha Khan said that the pressure on the banking sector should be reduced by taking money from the capital market.
Academicians, researchers, economists, businessmen and experts from various sectors including members of various professional chambers were also present on the occasion.
Mean/MH/MS
