'1.2mn people lost job, another 1.2mn at risk'

Already 1.2 million people have lost jobs arcoss the country due to contractionary monetary policies, and business leaders warn that an additional 1.2 million people could become unemployed over the next six months.

The warning came at a seminar on LDC graduation organised by International Convention City Bashundhara (ICCB) in Dhaka on Tuesday (Janaury 27).

Speakers at the event noted that interest rates have never fallen below double digits and emphasised the need to enhance skills to mitigate the impact of Bangladesh’s graduation from the Least Developed Country (LDC) status. The country is set to transition to a developing nation in November this year, a milestone expected to boost economic growth, poverty reduction, and human resource development.

However, this will also reduce duty-free benefits, make foreign concessional loans harder to obtain, and create new challenges in the banking and financial sectors.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said that poor governance has led to a rise in non-performing loans (NPLs), stressing the importance of proper regulatory implementation to safeguard banks.

Former FBCCI president A. Azad added that strict monetary policy has already cost 1.2 million jobs and could push another 1.2 million into unemployment if current trends continue.

Bangladesh Bank Governor Ahsan H. Mansur said reducing interest rates and controlling inflation requires cutting NPLs and restoring good governance in the banking sector. He also criticised the silence of business organisations regarding past incidents of bank fraud and money laundering.