Import policies should be eased to tackle inflation: Experts
“This is a people-friendly budget. Many have criticised the budget [size] saying Bangladesh is bankrupt. But..we are not. Bangladesh is on the right track. We are giving loans,” he also said.
Experts have emphasised the need to ease import policies to combat inflation, citing delays in import decisions and their impact on rising prices in the local market.
"Sometimes it takes 2-3 months to make import decisions, during which the price of goods increases significantly," said former state minister for planning Shamsul Alam at a seminar on "Bangladesh Economy in Global Context: National Budget 2024-2025 on Growth, Inflation, Food, and Nutrition Security."
"When there is a gap in demand and supply, it paves the way for syndication," he said at the event organised by the Bangladesh Agricultural Economists Association at the Bangladesh Agricultural Research Council auditorium in Dhaka on Thursday.
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He added that immediate import decisions can help keep inflation under control.
At the same programme, Finance Minister Abul Hassan Mahmood Ali said revisions to budget proposals are still possible as they are yet to be passed in parliament.
"This is a people-friendly budget. Many have criticised the budget size, saying Bangladesh is bankrupt. But we are not. The World Bank said Bangladesh is on the right track. They continue to extend loans to Bangladesh," he added.
"Agriculture is the main sector of Bangladesh. It will be disastrous if there is no agriculture. Many animals were sacrificed on Eid-ul-Adha. Over one crore animals were sacrificed. All animals are our own. It is also an indicator of the economy," the finance minister said.
Addressing the finance minister, Shamsul Alam highlighted that the interest rates on loans from foreign sources are lower than those from domestic sources, with higher levels of accountability and monitoring.
"Consideration should be given to increasing foreign borrowing to cover the budget deficit. Additionally, money syphoning out of the country must be stopped. You will be immortalised in history if you take the initiative to stop money laundering," he added.
Mohammad Jahangir Alam, a professor in the Agriculture and Marketing Department at Bangladesh Agricultural University, stated in a keynote presentation that the proposed budget allocates Tk17,261 crore for subsidies in the agriculture sector.
"In the past, subsidies have been increased whenever necessary without considering the budget allocation. During the Covid-19 pandemic and wars, when fertiliser prices rose in the international market, substantial subsidies were provided," he said.
State Minister for Commerce Ahasanul Islam announced that the government plans to sell daily necessities at fair prices through the Trading Corporation of Bangladesh in permanent shops starting next year.
To achieve this, the government also intends to increase the number of dealers from 7,500 to 10,000. Currently, goods are sold to 1 crore families at subsidised rates through TCB trucks and designated centres.
The state minister also advocated for using surface water for irrigation, noting that it would reduce production costs.
Sajjadul Hasan, president of the Bangladesh Agricultural Economists Association and chairman of the parliamentary standing committee on the civil aviation and tourism ministry, presided over the seminar.
Professor Mohammad Mizanul Haque Kazal, secretary general of the association, and Jiaoqun Shi, FAO representative in Bangladesh, also addressed the gathering.
