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Our economy can overcome the hurdles ahead

  • Published at 11:00 pm January 11th, 2020
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There has been little to address Bangladesh’s problem of tax collection

There is no doubt that Bangladesh has made admirable economic progress, particularly over the past decade or so, and there are big plans for the country moving forward.

Depending on the agency, from the World Bank to ADB to Bangladesh Bank, our growth rate is projected to be in the 7% to 8% range, which is no doubt impressive, and the authorities and the government most certainly deserve recognition and plaudits for their efforts.

However, despite these impressive achievements and projections, there appear to be troubles coming the economy’s way, and the authorities must navigate with caution if they are to avoid these troubles which could hamper the economy in a significant manner.

According to a World Bank report, there has been little to address Bangladesh’s problem of tax collection, and efforts to apply reforms have largely fallen short. 

Despite Bangladesh’s ongoing policy of operating on a fiscal deficit, this lack of revenue collection has the real risk of elevating fiscal deficits beyond the accepted rate as Bangladesh continues pursuing mega-projects in infrastructure and development.

Additionally, the country’s exports have threatened to slow down in recent times as well, and Bangladesh may soon no longer enjoy the myriad benefits it received as a least developed country. 

It is of utmost priority for the government to keep a close eye on our export sector so that if and when these favourable tailored policies do end, we are prepared to deal with them.

Therefore, while we should continue to enjoy a healthy growth rate, there will be obstacles in the not so distant future, and we must be prepared to deal with them to the best of our abilities and ensure Bangladesh’s sustained progress.