The think-tank stated that the country’s economy has experienced decent growth over the years, but the growth has not resulted in appropriate increases in income, employment generation, and eradication of inequality
The Centre for Policy Dialogue (CPD) has observed a fracture in Bangladesh’s overall macroeconomic stability, raising concerns for the country’s development in the coming days.
The independent think-tank stated that the country’s economy over the years has experienced decent growth, but the growth has not resulted in appropriate increases in income, employment generation, and eradication of inequality.
The CPD made the observations at a press briefing titled “State of the Bangladesh Economy in FY2017-18 (Third Reading)” at the BRAC Centre Inn auditorium in Dhaka on Sunday.
The think-tank as a part of its Independent Review of Bangladesh’s Development (IRBD) program disclosed an assessment report of Bangladesh’s major economic indicators, including revenue mobilization, monetary and banking sector, capital market, and balance of payments.
CPD Distinguished Fellow Debapriya Bhattacharya blamed a lack of good governance for the dire situation of the banking sector.
He also said: “Although there has been concern over the financial sector, the external sector’s balance of payments is creating panic.”
“The external sector has come under pressure in the face of high import payments, and the increasing trend of higher imports indicates that a large sum of money has been siphoned away from the country.”
“We have observed that the present relation of the state with the external world is more problematic compared to the mismatch between the state’s internal income and expenditure,” Debapriya added.
Another Distinguished Fellow Mustafizur Rahman, who presented the keynote paper, said: “Special allocation is needed for the National Revenue Board’s Transfer Pricing Cell in the upcoming 2018-19 fiscal year, while there is a need for a number of reforms and diversified initiatives in many sectors.”
He recommended setting up an Agriculture Costs and Prices Commission, Public Expenditure Review Commission, Local Government (Finance) Commission, Independent Financial Sector Reform Commission, and Independent Statistical Commission.
Since the upcoming budget would be an election-year budget the government may not prioritize implementation of the planned reforms, he said, adding: “Debate and discussion should continue regarding this area in order to reach a consensus.”
Chaired by CPD Executive Director Fahmida Khatun, the event was also attended by CPD Research Directors Khondaker Golam Moazzem and Towfiqul Islam Khan, among others.