Zahid Hussain, former lead economist at World Bank's Dhaka office, said during a discussion on Wednesday that if the scheduled Asian Clearing Union (ACU) payment and IMF's $2 billion loan repayment were taken into consideration, then Bangladesh's current and net forex reserves stood below $18 billion.
Speaking to reporters after the conclusion of the in annual conference of International Business Forum of Bangladesh (IBFB), the economist also warned that in the pace Bangladesh Bank was selling off more than $1 billion a month, the country's reserves risked being depleted, not to mention adversely affecting the currency exchange rate.
The country's reserves has not yet reached an alarming state but it is concerning, he added.
While presenting a keynote on the state of Bangladesh economy, he emphasized policy innovation in view of the current economic scenario.
He expressed dissatisfaction over the existing Gini coefficient, a measure of income inequality. Economic growth will not come as a blessing if the Gini coefficient is not reduced, the former World Bank lead economist said.
In his presentation, he reported 90% of the population made less than $10, bottom 50% less than $4 and the top 1% nearly $110 a day in 2022.
“If 8% average growth is not ensured, there is no possibility of becoming a middle-income country,”Hussain added.
Indian High Commissioner Pranay K Verma emphasized strengthening trade ties between Bangladesh and India for the sake of economic progression.
He also said that the two nations made progress on many fronts over the last decade.
In his speech, he underscored the need for signing the Comprehensive Economic Partnership Agreement (CEPA).
The CEPA deal definitely helps to explore business opportunities to a great extent, Verma said.
Verma also said that private sectors of both nations have options to play constructive roles in taking businesses to a new height.
As Bangladesh is one of largest business partners of India, India is ready to serve business people in Bangladesh on any affairs including Visa facilities. There must be mutual cooperation in seeing balanced trade volume between India and Bangladesh, he added.
IBFB Founding President Mahmudul Islam Chowdhury said that there are many ways to explore mutual businesses.
India has given a lot of support over the decades in respect of trade and business issues, he added.
IBFB President Humayun Rashid chaired the program.
