Inflationary pressure may sustain for some more time in the country and will depend on the Russia-Ukraine war and the international market situation, said the speakers.
They told it while speaking at a discussion titled “New challenges in the economy of Bangladesh” organized by the Economic Reporters Forum (ERF) in the capital on Sunday.
Minister of State for Planning Shamsul Alam, was the chief guest and said that the increase in the fuel oil prices is fueling inflation and it is true that people are suffering.
“There was no option without increasing the price. However, various initiatives have been taken,” he added saying that inflation is expected to moderate by October.
Regarding coal-based power generation, he said, the country has high-quality coal reserves but they imported coal because of the response of the people.
“There were fears that coal mining could give away agricultural land, leading to collapse and creating mining areas as lakes in many countries. Bangladesh did not want to take that risk,” he added.
Mohammad Hatem, executive president of the BKMEA said that the purchase orders are decreasing which leads to reduce the production of big factories.
“The cost of production has also increased but buyers are reluctant to pay more and the government has given less time to repay the incentive loan,” he added saying that this has created pressure on the manufacturers.
Moreover, the policy of NBR is against the manufacturers in various fields including bond licenses, HS code, and many more.
“The law has regulated oppression and torture against businessmen. However, addressing the challenges, the export sector of Bangladesh will continue to grow positively,” he added.
Moreover, businesses strongly recommended increasing the ease of doing business and to simplify the business regulations to increase the competitiveness of the country.
Ahsan H Mansur, executive director of the PRI, Barrister Nihad Kabir, chairperson of BUILD, and Abul Kashem Khan, director of the FBCCI, also spoke at the event.
Sharmin Rinvi, president of the ERF, presided over the event while SM Rashidul Islam, general secretary of the ERF moderated the event.