The interim government's Finance Adviser Salehuddin Ahmed said that the government’s primary concern was to reduce the price gap between the cost of production and consumption.
He also said the additional cost between the producer and the consumer is unnecessary. There must be individuals in the supply chain who assist in providing goods.
“But those who touch the truck when it arrives in the market and say ‘Give me Tk500’ are not middlemen; they are extortionists. As a result, upon its arrival in the market, a truck carrying onions valued at Tk5 lakh instantly becomes worth Tk7 lakh while it remains stationary,” he added.
On Sunday, he spoke as chief guest at the Annual Conference of International Business Forum Bangladesh (IFBF) in the capital.
The finance adviser also stated that reaching a political compromise is challenging, whereas gaining an extortion compromise is much simpler.
“Even though the government has reduced customs duties, the prices of daily necessities are not coming down in the market. The key reason is the persistence of extortion through mutual agreements among extortionists.
“If you go to any market, you can see two or three types of extortionists. In addition to locals, extortionists are from the previous and future governments. They engage in extortion by making compromises with each other,” he added.
He also said that he has been to Karwan Bazar and observed three distinct categories of extortion, each with a shared understanding.
“Everyone keeps saying, ‘Break the syndicates.’ But I have seen a well-coordinated extortion racket,” he added.
He also highlighted the prevalence of corruption in the country during the previous Awami League government. Corruption occurs in many countries worldwide.
“However, in Bangladesh, the prevalence of theft is so pervasive that it is almost impossible to ignore. In this case, there has been a breakdown in government control. All the institutions have been destroyed. Policymakers, bureaucrats, and businessmen have all broken the rules together,” he added.
Shakib’s stock market manipulation
Shakib Al Hasan, a cricketer for the national team, recently received a fine for manipulating stock trading.
The finance adviser expressed his dismay over the fine, saying it has caused everyone a headache. Everyone is lamenting that such a big player has been fined. But Saleh Uddin said Shakib should have received a fine two years ago.
“Everyone is aware of the manipulation that occurs in the stock market. ICB took the money from the mutual fund and vanished from sight. This is everyone’s money – yours and mine. No action was taken then. Now, whenever we take action, we engage in dialogue. Taking action will inevitably be painful. We can not always perform all operations under anesthesia,” he further stated.
He also said the government has decided to separate tax policy from tax collection activities to ensure the proper functioning of the country’s revenue board.
He said that the move to separate two significant parts of the National Board of Revenue (NBR) has long been discussed, but unfortunately, it has not yet been implemented.
“We have decided in principle to separate the tax policy part from the tax collection. It means people who make tax policy will not be responsible for collecting tax. But it may take some time,” he added.
In his speech as conference speaker, Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD) and head of the White Paper on the State of the Bangladesh Economy, said that the interim government has taken the right reform initiatives and that they must be completed before the elections.
He also said that the politicians are looking for a roadmap for conducting elections. However, how much they can smooth the political path and deepen the reforms will depend on how much economic relief they can provide to the people.
He said that people’s patience will eventually wear thin if economic and law and order situations do not improve, regardless of their support for reforms.
He also said that the interim government's success will depend on how it addresses the liquidity crisis in banks or economic challenges within the next six months or by the time the budget is presented.
“At this point, a coordinated, effective, and confidence-building mid-term plan is essential. Issues such as the customs and tax structure, currency exchange stability, and whether interest rates on loans will decrease or not need to be addressed together in a mid-term plan,” he added.
At the event, he also stressed the importance of strengthening relationships with foreign countries, highlighting the need to focus on countries that have historically provided financial aid, those offering preferential market access, and those from which remittances flow.
He also said that the cost for a worker from Nepal to go abroad is three times lower than that for a worker from Bangladesh. At least 68 who benefitted from overseas businesses were either the wives, sons, or daughters of MPs or ministers with no relation to manpower business.
He added that around $2 billion has been illegally siphoned abroad through hundi as a cost of sending foreign workers.
Reed J Aeschliman, mission director of USAID, also spoke at the event. IBFB President Humayun Rashid marked the opening remarks, and Mahmudul Islam Chowdhury, founding president of IBFB, marked the concluding remarks.