No crisis in country's economy: Dr Shamsul Alam

State Minister for Planning Dr Shamsul Alam on Sunday said that there is no crisis in the country's economy as Bangladesh is moving ahead in a planned way while there is no weakness in the planning process.

"Bangladesh is under discomfort to some extent due to the global situation, but the country is under no crisis," he said.

The State Minister was speaking at a discussion titled "New Challenges in the economy of Bangladesh" as the chief guest organised by the Economic Reporters' Forum (ERF) held at its auditorium in the capital today.

Chief Economist of Bangladesh Bank Dr. Md. Habibur Rahman, Executive Director of Policy Research Institute (PRI) Dr. Ahsan H. Mansur, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem, Chairperson of Business Initiative Leading Development (BUILD) Nihad Kabir and Director of FBCCI Abul Kashem Khan attended the programme as panelists.

Presided over by ERF President Sharmeen Rinvy, its general secretary SM Rashidul Islam moderated the programme.

Dr Alam alleged that the economists of the country mostly tend to express concerns while they could not see the attainments and possibilities of the country.

"But, the foreign research institutions have highlighted the strength and potentials of the economy of Bangladesh," he added.

Turning to the issue of inflation, Dr Alam said the price hike in fuel oil has slightly instigated the inflation while there is no denying the fact that the people are now suffering. "There was no alternative to raise the fuel oil price. But, the government has taken various steps and hopefully the inflationary pressure will come down by October. Despite that, the inflationary pressure will be there."

Graduation from the LDCs and implementation of the SDGs would go on in the right direction, he said, adding: "But, there might be some degradation in the poverty situation."

Executive Director of PRI Dr Ahsan H Mansur said that the government has been trying to face the challenges of inflation through increasing the supply side, but there has been less production of rice while the cultivation of 'Aman' is not giving much hope due to comparatively lesser rainfall.

The renowned economist also suggested for bringing massive reforms in the revenue system to improve further the situation.

Chief economist of the Central Bank Dr Md Habibur Rahman said that the inflationary pressure would continue as it has been caused totally from imports. "Despite this, the Bangladesh Bank has taken various steps to contain inflation, bringing stability in the exchange rate, ensuring discipline in the financial sector. For this, efforts are on to control inflation through improving the supply side without raising the interest rate."

Noting that the economy of Bangladesh is in the right direction, Habibur said that hopefully the exchange rate of US dollar against Taka would come down soon and there would be improvement in other sectors.

Mohammad Hatem said the production cost has increased while the manufacturers are also not getting the adjusted price of additional expenditure from the buyers. On the other hand, he said the businessmen are felling pressure since the government has given them less timeframe in repaying the loans under the stimulus package.

No matter challenges come, the export earning sectors would continue to maintain their uptrend, he added.

Former President of MCCI Barrister Nihad Kabir said that there is sufficient stock of coal in the country and there is a need to ensure maximum utilization of the country's own natural resources.

"Staying being competitive is the first challenge. Besides, various obstacles are being created in doing business owing to policies and regulations and thus raising the business cost. This is also a challenge," she added.

Nihad said that the common people are now feeling the heat as the price of essentials like rice, fish and chicken has increased in the market which needs to be adjusted in line with the declining trend of fuel oil price in global market.

Former President of DCCI Abul Kashem Khan noted that energy security is very important while there has been a revolution in the country's energy over the years.

"Energy has a big role in the dynamism that has been infused in the country's economy. But, the country is now import-dependent on energy and there is a need to rethink over the issue. There should be a master plan to ensure optimum use of coal and gas in the country so that it could become self reliant on energy within the next 10 to 15 years," he mentioned.