Political uncertainty increasing economic uncertainty: PRI

The Policy Research Institute (PRI), a private research organisation, at a press briefing on Tuesday said that political uncertainty in the country is increasing economic uncertainty.

“If the political integrities are not right, the economy will not be right,” the PRI said at the press briefing on Domestic Resource Mobilisation from the perspective of IMF and Bangladesh, held at its office in Banani.

Executive Director of PRI Dr Ahsan Mansur, and international trade expert Dr Mohammad A Razzaque, spoke at the press conference on the economic situation.

“During the last two national elections, foreign involvement was not so much. Now there is. This year's election will not be like the other two. There is also uncertainty about the elections. It is not possible to say that I will live in peace even after the election,” Mansur said at the briefing.

Replying to a query, he said, “This is the first time that there is uncertainty in both politics and economics at the same time.”

He said the economy is under pressure due to high inflation, shortfall in revenue collection, dwindling reserves, and the exchange rate.

“The IMF has asked for reforms in these matters. But these reforms are not possible before the elections. So, inflation will remain around 10 per cent. It is not possible to say where the exchange rate will stop,” Dr Mansur said.

Even after the elections, the direction of these reforms is not available to the political leadership. However, to face the challenges of the economy, major reforms must be made, he said.

Dr Mansur also said that there will be no major problem in getting the second tranche of the IMF loan, unless the great powers decide to intervene in the board meeting to approve it.

The IMF's board is expected to rule on disbursement of the tranche at its board meeting on December 9.