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M A Khaleque

  • Economist

Retired General Manager, Bangladesh Development Bank Limited and Writer on Economics

Contractionary monetary policy alone can’t solve inflation woes
Contractionary monetary policy
Economics

Contractionary monetary policy alone can’t solve inflation woes

The Bangladesh Bank announced the second monetary policy of the current fiscal year on February 10, 2025. This was the second monetary policy for the fiscal year 2024-25 and the first policy under the interim government. There was considerable anticipation regarding the announced policy, and many experts had expected it to be contractionary in nature. Indeed, the policy can be described as contractionary in terms of its characteristics, as it focuses more on controlling the existing high inflation rather than achieving high growth.

No more delays in the name of reforms—Control inflation
No more delays in the name of reforms—Control inflation
Economics

No more delays in the name of reforms—Control inflation

The leaders of the top four business organizations in the country have expressed their concerns regarding the government's initiative to increase gas prices in a joint letter addressed to the Energy Adviser. They have warned that raising gas prices at this moment will severely impact industries, leading to a sharp rise in production costs. As a result, Bangladeshi products may lose their competitive edge in the international market.

Private sector investment key to sustainable development
Private sector investment key to sustainable development
Economics

Private sector investment key to sustainable development

Every nation strives to achieve rapid and sustainable development. The core responsibility of any government is to ensure the optimal use of limited resources to maximize public welfare and elevate the country to the peak of development. A government that fulfills this responsibility effectively and brings development to all sectors of society is considered a government committed to public welfare. Many people believe that simply achieving economic development will fulfill the primary goal of development, but this belief is not entirely accurate. Development is a comprehensive concept, not limited to just economic progress. While economic development is an important indicator, it is not the sole measure of overall development. In other words, without achieving positive progress in other development indicators alongside economic growth, it cannot be considered balanced development. Economic growth is crucial, but it is not the only criterion for developmen

State action needed to harness demographic dividend
demographic dividend
Economics

State action needed to harness demographic dividend

In the 1980s, the then military dictator General HM Ershad described uncontrolled population growth as the "number one national problem." Although his statement created a stir at the time, it was a completely misleading comment. Population growth, whether planned or unplanned, can never be the number one national problem for a country. Population is an irreplaceable resource. The progress of the world cannot be imagined without it. If population is systematically trained and transformed into a skilled and productive workforce, it becomes the nation's greatest asset. However, if population growth is unmanaged, it becomes a burden for the country. The responsibility of turning the population into human capital lies solely with the state. The state cannot escape the blame for its failure to do so.

Second half-yearly monetary policy faces challenges
Bangladesh bank
Economics

Second half-yearly monetary policy faces challenges

Five months have passed since the interim government took office, but there has been little sign of success in the economic sphere during this period. The interim government has been focusing more on addressing political crises rather than economic issues. The formulation of the new monetary policy is nearing completion. The Bangladesh Bank has started discussions on the proposed monetary policy with stakeholders. If everything goes as planned, this policy will be approved in the Bangladesh Bank board meeting on January 22, and then it will be published. This will be the second monetary policy of the current fiscal year and the first of the interim government. This will also be the first monetary policy under the new governor of Bangladesh Bank, Dr. Ahsan H Monsur. Since taking office, the new governor has taken several practical steps, including initiatives to make the foreign exchange rate and bank lending interest rates market-based. However, these steps should have been taken earlier. The previous governor failed to take effective actions in these areas, which led to a sluggish and downward-moving economy. Among all the recent monetary policies issued by Bangladesh Bank, none has been as challenging as the proposed policy.

Excessive foreign debt erodes financial independence
Bangladesh Bank
Economics

Excessive foreign debt erodes financial independence

In the 1970s, an American development economist visited Bangladesh. At one point, he gave a speech to the faculty members of Dhaka University. The economics department’s professors were notably present at this event. During his address, the American economist presented his views on why Bangladesh’s economic development was not progressing to the desired level. The professors in attendance listened intently to his words. At that moment, a young economics professor from Dhaka University stood up and said to the American economist, "The reason we are unable to achieve the desired level of development is because you are intervening in our economy in various ways." After a brief pause, the American economist replied to the young professor, saying, "If 80 percent of the funds for your country's development activities come from us, whose economy is it? If you were able to finance your development from domestic sources, we would not need to offer any advice." Hearing this, the young professor remained silent and sat down.