Despite the interim government completing six months in power, there have been no apparent measures to bring relief to the public or the business sector, said Dr Fahmida Khatun, executive director of the Center for Policy Dialogue (CPD).
She made the remark during a media briefing on "Bangladesh Economy 2024-25: First Interim Review" highlighting challenges in meeting expectations during a crisis. The event was organised by the CPD at its central office in Dhaka's Dhanmondi on Wednesday.
In her opening remarks, Dr Khatun said that although six months have passed in the current 2024-25 fiscal year, there has been no noticeable excitement or significant movement in the economy. After the formation of the interim government on August 8, following student protests, several sector-specific reform programmes were initiated.
While some economic reforms are visible, no substantial changes or relief have been seen in the lives of the people or the business sector, she added.
She further mentioned that ongoing economic challenges should be addressed by targeting stakeholders, with a three-pronged approach that considers both immediate and medium-term effects. This approach should first focus on alleviating the daily challenges faced by the general people, helping them recover from economic shocks. Secondly, it should address the accumulated challenges over the years.
Thirdly, it should focus on strengthening the fundamentals of the macroeconomy through reform programmes and ensuring their persistence.
Dr Khatun also pointed out the socio-economic setbacks of the current situation. For the first six months of this fiscal year, revenue growth was only 3.7 per cent, compared to more than 17 per cent during the same period in the previous year. If this trend continues, revenue collection needs to increase by 45 per cent in the coming months.
She noted a negative trend in tax collection, highlighting that the government becoming increasingly dependent on supplementary taxes and VAT. However, given the cost of living for ordinary people, increasing VAT and taxes is not acceptable.
“It has a negative impact on low- and fixed-income earners,” she commented.
As of October of the current fiscal year, the implementation of the Annual Development Programme (ADP) stood at 6.1 per cent, compared to 8.9 per cent during the same period last year.
Translated & edited by Fariha Nowshin Chinika
