Prime Minister Sheikh Hasina yesterday asked for recommendations from the finance and commerce ministries to tackle a possible economic meltdown that may arise due to the Russia-Ukraine war.
During the regular Cabinet meeting, the premier also hinted that, during this period, the government would implement only the productive and the much-needed projects to ease pressure on the country’s foreign currency reserves.
Sheikh Hasina, chief of the ruling Awami League, opined that initiating new megaprojects and importing luxury products should be suspended for the time being since many countries of the world have been facing inflation due to the war, several members of the Cabinet confirmed to Dhaka Tribune.
The premier on Tuesday said that had the Awami League not been in power now, there would have been trouble on the streets over supplies of essential commodities. She asked people to maintain austerity.
Cabinet meeting with Prime Minister Sheikh Hasina in the chair at the PMO on Thursday, May 19, 2022 PID“On an unscheduled agenda of the meeting, Prime Minister Sheikh Hasina discussed details of the recent price hike across the world. She has suggested measures to keep the country’s economy stable during the ongoing Russia-Ukraine war,” Cabinet Secretary Khandker Anwarul Islam told reporters after the meeting at the Secretariat.
“The prime minister has asked the finance and the commerce ministries to submit proposals to tackle the upcoming economic situation,” the cabinet secretary added.
Seeking anonymity, a central committee leader of the Awami League told Dhaka Tribune recently that the premier had expressed deep concern over the ongoing war during a party meeting.
“She said that if this war lasts for more than two or three years, the economic condition of a lot of countries may turn into a difficult situation,” he said.
“The current economic condition of Bangladesh is still okay. But if the inflation rate increases worldwide, it may also affect Bangladesh and other countries, as Bangladesh is not isolated from the rest of the world,” the leader quoted the prime minister as saying.
The recent directives against foreign trips by government officials and the import of luxury items were issued to keep the country’s foreign exchange reserves strong, said party sources.
The budget for the 2022-23 fiscal year – to be placed in Parliament on June 9 – is also being prepared considering a possible economic downturn.
The prices of fuel and fertilizer may increase sharply worldwide at any time, which may affect Bangladesh. The government is also taking measures in this regard.
When contacted, Dr Shamsul Alam, state minister for planning, said: “The world has been confronted with two unprecedented shocks in recent history – the Covid-19 pandemic and the Russia-Ukraine war. Bangladesh is taking measures to face this situation. Some programs have already been launched while more programs are coming.”
The junior minister said that the government wanted to reduce pressure on foreign currency reserves and keep prices low. “Moreover, we’ll implement the development projects that will help increase production and growth, and decrease unemployment.”
He added that the upcoming budget would be prepared with caution in order for the country to face the challenges the world is facing right now.