Economics
Due to why printing money cause inflation
In a speech to the nation, Interim Government Chief Adviser Dr. Muhammad Yunus stated that the people of the country are suffering from inflation due to the 'fascist' government's decision to print and release an additional Tk 600 billion for looting. Controlling this inflation is one of the interim government's main objectives. The Governor of Bangladesh Bank has also blamed this Tk 600 billion for the inflation and rising prices. The liquidity crisis in the banking sector has become so severe that several banks are now forced to collect deposits at interest rates above 12%. Due to the instability in the country and the banking sector, investment has stagnated, with some banks opting to invest in government treasury bills and bonds. Not only banks, but private individuals are also making significant investments in these government bills and bonds at high interest rates. The uncertainty in the industrial sector and high-interest rates have caused a crash in the stock market.
Oversight alone won't strengthen weak banks
Upon taking office, Bangladesh Bank Governor Ahsan H Mansur commented that ten banks in the country are in a state of bankruptcy. He made this remark during a press briefing with journalists. He has also assured that efforts will be made to rescue these banks. However, he has questioned the necessity of weak banks that are not recognized internationally and mentioned plans to merge these weak banks.
Why Fixing Retail Prices of Commodities Fails to Address Market Issues in Bangladesh
In Bangladesh, government efforts to fix the retail prices of essential commodities often fall short of achieving long-term price stability. Despite the apparent simplicity of setting price caps to make essential goods more affordable, this approach overlooks the intricate economic and structural challenges in the country’s commodity markets. Understanding the underlying factors, from supply chain inefficiencies to regulatory shortcomings, sheds light on why fixing prices is not a sustainable solution for managing the retail price of commoditie
Revisiting loan account rescheduling essential
According to a recent newspaper report citing reliable sources, the banking sector has regularized two and a half lakh crores taka of defaulted loans over the past five years through rescheduling. Notably, on the eve of the last national parliament elections, 93 thousand crores were regularized in just a few months. This trend of converting significant amounts of defaulted loans into regular loans is concerning.
Khorshed Alam appointed new acting president of BCCCI
Mohd Khorshed Alam has assumed the position of acting President of the Bangladesh China Chambers of Commerce and Industry (BCCCI).
Change of MDs of state-owned banks, when is the policy overhaul?
The Financial Institutions Division under the Ministry of Finance on September 19 issued a circular cancelling the contract-based appointments of Managing Directors and Chief Executive Officers (MDs and CEOs) at six state-owned banks: Sonali, Rupali, Agrani, Janata, BASIC, and BDBL. This unprecedented decision marks the first time in Bangladesh's banking history that so many MD appointments have been revoked simultaneously, sparking intense debate within the sector.
Reforming non-bank financial institutions a long overdue
The economy of Bangladesh is currently under stress. High inflation, depleting foreign reserves and sluggish growth have eroded public confidence. Amid these issues, Bangladesh Bank has recently formed a six-member taskforce to conduct reform works in the banking sector.
Strategies that Chinese companies may adopt in Bangladesh’s political endeavour
The recent political upheaval in Bangladesh, resulting in a change of government through a student-public movement, has undoubtedly disrupted the established relationships and networks that Chinese companies had built over the last 15 years. While this shift presents challenges, it also offers opportunities for Chinese businesses to reassess their strategies and align with the new administration’s goals. Here are some constructive steps Chinese companies and the Chinese embassy can take to overcome these challenges:
Unlocking deep sea energy potential needed
Gas is one of Bangladesh's most valuable natural resources, and the country has a great deal to be proud of in this regard. Due to its unique geological conditions, Bangladesh is rich in gas resources. Without this abundance of natural gas, our development efforts might have faltered, and progress could have been significantly slower. In fact, Bangladesh is one of the leading countries globally in terms of successful gas exploration. Our success is evident in the fact that out of every five wells drilled, three yield gas. This high success rate is likely because drilling began only after extensive testing confirmed the high probability of finding gas.
Close all loopholes for tax evaders despite their ability to pay
At the current stage of our country's economy, achieving revenue targets necessitates the introduction of a "push factor." No matter the cost, there must be a strong effort to elevate revenue collection to the desired level. A significant number of people who are eligible to pay taxes have yet to be included in the tax network. On the other hand, efforts are being made to bring into the tax and customs framework sectors that should be taxed but currently aren't. In both cases, there is a need to move forward with a refined and reformed plan to create or implement a taxpayer-friendly and automated incentive-based system. In other words, for those who are capable of paying taxes but aren't, we must encourage them while simultaneously closing all loopholes that allow tax evasion. Effective measures must be taken to remove any obstacles or complexities that exist in the tax payment and collection processes.
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