Responsibility inevitably comes with pressure, but it also brings a sense of fulfillment, along with occasional mistakes and setbacks. Despite these challenges, we continue to navigate our duties, especially during this critical period for the nation. Our primary focus is on mitigating financial losses and working toward stabilizing the economy.
In an exclusive interview with a private satellite channel, interim government Economic Advisor Dr. Salehuddin Ahmed shared his insights on the current economic landscape and pressing national issues.
Acknowledging the weight of responsibility, he remarked, "Pressure is always there. From an outsider’s perspective, solutions may seem straightforward, but in practice, it's far more complex. One challenge often triggers another, and oversimplifying problems rarely leads to effective solutions."
When asked about the overall economic situation and inflation, Dr. Salehuddin Ahmed acknowledged that inflation is a major challenge. "It has been ongoing for the past two to three years, but we are now seeing a gradual decline," he noted.
He further explained that people's income and expenses are under strain. Inflation occurs due to various factors, including demand and supply, which are influenced by both domestic and global conditions. As a result, we are experiencing added pressure. Since we took office, this issue has become more apparent because many activities, including banking and trade, were halted for a long period following the July-August unrest, impacting supply chains.
On the other hand, agriculture and other sectors remained relatively stable. Considering this, various measures have been taken to reduce inflation. Although these measures are not entirely sufficient, some progress has been made. However, the biggest challenge is ensuring supply. Several issues have disrupted supply chains, including sudden floods that damaged agriculture in regions like Cumilla and Noakhali, and excessive rainfall in Mymensingh and Munshiganj, which affected vegetable supplies. Fortunately, vegetable availability is now improving.
Dr. Salehuddin Ahmed emphasized that during Ramadan, the truck sales program must not be halted. "We had paused it because market prices were relatively affordable. However, we have decided to resume the program before Ramadan to ensure uninterrupted availability during the holy month," he stated.
When asked if extortion is still a contributing factor, he acknowledged, "Yes, it remains a key issue. However, our buffer stock is stable. Just yesterday, two ships arrived at Chattogram port, and more shipments are expected from Vietnam and Pakistan. We are also importing lentils and wheat, including supplies from Russia."
Regarding public sentiment and expectations, Dr. Salehuddin Ahmed noted, "People are looking for change and relief, but financial pressures are making it difficult. There is a clear strain on household budgets because opportunities for additional income are limited. Business activities, major projects, and employment generation have declined. Additionally, rising energy costs are adding further pressure, prompting us to seek cost-saving measures."
Discussing the industrial sector, he acknowledged that productivity remains inconsistent. While the number of industrial units has increased, growth has not kept pace. Many economists believe this is a concerning trend for the economy. "There are multiple reasons behind this. Historically, Bangladesh has not developed its industrial base significantly. Different sectors have not progressed evenly, and in some cases, production trends have reversed, leading to slower growth in the industry and business sectors. Restoring normalcy in this area is another major challenge for us," he explained.
Dr. Salehuddin Ahmed also addressed issues related to energy infrastructure, productivity disruptions, and banking sector loans and investments. "We have managed to stabilize the power sector to some extent, but gas supply remains a challenge. We are actively working on alternative energy solutions, which may help businesses reduce costs. Additionally, many businesses are struggling to repay loans on time, affecting their ability to secure new financing. We are developing a strategic plan to address these financial challenges. Hopefully, through a structured process, we can achieve economic stability and momentum," he concluded.
BDST: 1450 HRS, FEB 08, 2025
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