Country’s economy faring well: State minister

State Minister for Planning Shamsul Alam has said the country's economy is faring well in all indicators, despite the global economic volatility.

"But some newspapers and foreigners are trying to portray Bangladesh in a negative light. Ahead of the next national elections, they want to establish that the government failed to protect the economy," he told a seminar in Dhaka on Sunday.

At the programme titled "Bi-annual economic state and future outlook of Bangladesh's economy from private sector perspective", the state minister claimed the country's economic condition is not panicking at all.   

"In terms of borrowing from foreign sources, Bangladesh is still in a comfort zone. We should go for foreign loans to expand business and maintain growth. Besides, I think the government should take such loans to ease pressure on the reserve," he added.

Member of Parliament and also a former business leader Shafiul Islam Mohiuddin said despite the global economic situation, Bangladesh's reserve is adequate to cover import bills of next five and half months.

"The ongoing crisis is temporary and the government is managing it efficiently," he commented.

However, the lawmaker was critical of the recent fuel price hike, noting it is hurting everyone.   

Mohhamad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the government should reduce the fuel rates as soon as the international market falls.

He also proposed the authorities to adjust fuel prices quarterly in line with the global rates.

Terming the business community the "engine of growth", he said taxmen should be proactive and help businesses grow hassle-free. He called for taxation automation and withdrawing higher taxation on apparel subcontracting.     

Hatem expressed dissatisfaction over the huge difference between buying and selling prices of the US Dollar by the banks. He said the gap could be maximum Tk1.

Habibur Rahman, chief economist of the Bangladesh Bank, said they always look into best balancing of policy guidelines to control the money circulation in the market.

He said the central bank is mulling currency swap with a few countries such as India and China.  

In the keynote paper, Dhaka chamber President Rizwan Rahman said the government should focus on energy, inflation, food security, logistics and financial sectors.

For improving the forex reserve, he said the currency swap could be considered for low-cost imports.

Dhaka chamber Senior Vice-President Arman Haque gave the welcome remarks on the occasion.