LDC transition may not be smoother anymore
Bangladesh will face the inflationary effect of US sanction on Russian oil as the effects will trickle down to the internal economy.
Freight costs will go up as well as raw materials in industries where petro products are used. Fertiliser costs will go up that in other words will force the government to give further subsidies. Otherwise, the spiralling prices of food items and vegetables will skyrocket.
Industries that use electricity and gas will also suffer because of the same issue. Our cost of production will significantly go up.
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This will hurt our exports in terms of competitiveness as our market peers such as Turkey, Pakistan and India have devalued local currencies against US dollar significantly. The coming years are crucial to build a competitive industry due to graduating from LDC status. This will make it harder to have a smooth transition.
Our mega projects may get affected too, as the government has to provide more support to the ongoing schemes now.
Shams Mahmud spoke to TBS Staff Reporter Jasim Uddin over the phone.
