Govt gives utmost priority to restraining inflation: Dr Shamsul Alam

State Minister for Planning Dr Shamsul Alam on Sunday said that the government is giving utmost priority to controlling inflation in the country and it is taking necessary measures to this end.

“The trend of inflation whatever you’re witnessing now is mainly import-based while the inflation has increased mainly because of the hike in the import cost,” he said.

The state minister said this while addressing a launch event on “Realising Development Aspirations with Domestic Resource Mobilization Amidst Macroeconomic Challenges” as a special guest held at a city hotel, reports Bangladesh Sangbad Sangstha.

Dr Mashiur Rahman, adviser to the prime minister for economic affairs, spoke at the event as chief guest.

Presided over by PRI Chairman Dr Zaidi Sattar, bKash founder and chief executive officer Kamal Quadir, ACI managing director Dr Arif Dowla, FNF, Bangladesh country representative Dr Nazmul Hossain, Foreign, Commonwealth and Development Office (FCDO), Bangladesh, Development Director Matt Cannell spoke, among others, at the event.

PRI Chairman Dr Zaidi Sattar, Director Dr MA Razzaque and Director Dr Bazlul Haque Khondker presented three separate key-note papers.

The state minister said in order to curb inflation, the government has reduced duty on import of essential items side by side the import procedures of agricultural items has been simplified.

Besides, he said, necessary steps are being taken to make the exchange rate of foreign currencies stable .

Dr Alam also said that the government has been trying its best to reduce the Non Performing Loans in the country as well as boosting the foreign currency reserve.

Dr Mashiur Rahman said that the main objective behind providing incentives on remittance is to facilitate the expatriate Bangladeshis. Through this, the government is trying to give social safety to a community, he said, adding that the government would have to go for a uniform exchange rate for the sake of sound economic management in future.

Dr Zaidi Sattar in his presentation said that it becomes risky when the deficit on the current account balance of a country goes over 3 percent of GDP. 

He informed that the deficit of current account balance in the country reached 4 percent in the last fiscal year.

The renowned economist also opined that if the deficit of current account balance could not be contained within 3 percent in the next three to four years, then it would become dangerous for the proper economic management.

He proposed fixing uniform exchange rate as well as undertaking necessary steps for boosting export and remittance.

Dr MA Razzaque noted that Bangladesh is still lagging behind other countries in South Asia in terms of tax to GDP ratio. 

“But, such a scenario needs to be changed to become a developed country, especially when there is a need to boost revenue collection or domestic resource mobilisation to deal with the current economic situation.”