Saturday, 27 July 2024

M A Khaleque

Economist
Sat, 23 Sep 23

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

Will high inflation come under control anytime soon?

Economics

Mon, 15 Jul 24

Will high inflation come under control anytime soon?

The current national budget has given special importance to controlling high inflation. Despite efforts over the past one and a half years, inflation remains unmanageable. The budget has set a target to bring down the inflation rate to 6.5% within the current fiscal year. However, most economists in the country believe this target is unattainable given the current state of the economy. They predict that even if inflation does not rise further, it is unlikely to fall below 9% anytime soon. Finance Minister Abul Hassan Mahmud Ali mentioned in a post-budget press conference that inflation would decrease within the next six months, but did not specify how this target would be achieved. A new monetary policy for the first six months of the current fiscal year is expected to be announced soon, and it is certain that controlling high inflation will be a priority. However, it is unlikely that inflation can be brought to a tolerable level through monetary policy alone.

Money laundering threatens to render development meaningless

Economics

Wed, 3 Jul 24

Money laundering threatens to render development meaningless

Former State Minister for Planning, eminent economist Dr. Shamsul Alam expressed his concern over money laundering while delivering a keynote speech at a seminar organized by the Bangladesh Agricultural Economists Association on June 20. The seminar's theme was "Bangladesh's Economy in the Global Context: Growth, Inflation, Food, and Nutrition." Dr. Shamsul Alam stated that each year, 7 to 8 billion US dollars are being laundered from Bangladesh. He identified money laundering as a significant reason behind the ongoing foreign currency reserve crisis in the country. The former State Minister also mentioned that money laundering is creating complex problems for the country's economy.

Monetary policy should focus on enhancing tax collection

Economics

Thu, 27 Jun 24

Monetary policy should focus on enhancing tax collection

The first six-month monetary policy for the upcoming financial year (2024-2025) is scheduled to be announced in the first fortnight of July. Bangladesh Bank has nearly completed the preliminary work for formulating this policy. However, there is still uncertainty regarding the specific characteristics of the proposed monetary policy.

Deep concern surrounds foreign investment climate

Economics

Tue, 18 Jun 24

Deep concern surrounds foreign investment climate

The Foreign Investors Chamber of Commerce and Industries (FICCI), an organisation of foreign investors operating in Bangladesh, expressed concern about the future of foreign investment in the country during a post-budget press conference. They emphasised that investment, whether local or foreign, is a long-term activity, and thus, policy consistency is crucial to attract and retain investment. Frequent policy changes can spook both local and foreign investors. In particular, foreign investors seek policy continuity for the safety of their capital, as withdrawing investment from a country or region is not a simple process.

Opportunity to convert black money into white money, for whose benefit?

Economics

Tue, 11 Jun 24

Opportunity to convert black money into white money, for whose benefit?

Finance Minister Abul Hasan Mahmud Ali has presented a budget proposal for the upcoming fiscal year (2024-2025) with a total size of 7 lakh 97 thousand crore taka. Of this, revenue is 5 lakh 41 thousand crore taka, and the expenditure is 2 lakh 56 thousand crore taka. This means there will be a deficit of 2 lakh 56 thousand crore taka in the budget. To cover the budget deficit, loans totaling 2 lakh 51 thousand 6oo crore Taka will be obtained from various domestic and foreign sources. Of this, 90 thousand 700 crore Taka will come from foreign loans. Additionally, it is expected that 4 thousand 400 crore Taka will be received as grants to help cover the budget deficit. Due to the failure to collect the desired level of revenue from domestic sources, Bangladesh is increasingly becoming dependent on foreign loans. Currently, Bangladesh's tax-to-GDP ratio is 7.6%, which is the lowest among South Asian countries.

Economic slowdown after demographic dividend: Are we prepared?

Economics

Mon, 3 Jun 24

Economic slowdown after demographic dividend: Are we prepared?

There is no alternative to a skilled workforce for the economic development of any country. The more skilled and trained the labor force, the brighter the prospects for the country's economic development. No matter how advanced mechanical power becomes, if the person operating the machine is unskilled and immature, development cannot be achieved. If the workforce is adequately trained and skilled, it can become the greatest asset for a country. Conversely, if that workforce is untrained and unskilled, it can be considered a liability for the nation. The total workforce of a country can generally be divided into four categories: children, youth, adults, and the elderly. Typically, individuals under the age of 18 are considered children. Those between 18 and 35 are considered youth, those between 35 and 60 are considered adults, and those above 60 are considered elderly. Among them, the 18 to 60 age group is known as the working-age population.