Economy in 'difficult, stagnant' state; reforms, participatory budget top priorities: Khasru
He acknowledged the recent rise in stock market indices but described it as “cosmetic".
Highlights
- Economy in a "difficult and stagnant" state
- Govt to prioritise structural reforms, participatory budget and capital market overhaul
- Recent stock market rise termed "cosmetic"
- Upcoming budget to ensure a level playing field and end patronage politics
- Efforts underway, including G2G initiatives and international support, to recover laundered funds
- Port inefficiencies at Chattogram blamed for higher goods prices
- Steps underway to speed up cargo clearance
The country's economy is currently in a "difficult and stagnant" condition, marked by rising poverty, declining investment and shrinking employment opportunities, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said today (20 February).
"In a context where poverty is increasing and both investment and employment are declining, structural reforms, a participatory budget and the development of a trust-based capital market will be the top priority of the government," he said while speaking to journalists at his residence in Chattogram's Mehedibag area in the afternoon.
Keep updated, follow The Business Standard's Google news channel
He acknowledged the recent rise in stock market indices but described it as "cosmetic". According to him, the uptick may reflect investor expectations surrounding a democratic government, but such temporary gains would not be enough to revive the market.
"For lasting change, reforms in laws and the regulatory framework are essential," he said, adding that the role of the Bangladesh Securities and Exchange Commission (BSEC) will be strengthened to ensure transparency and a zero-compromise policy.
"The government aims to bring fundamentally strong and profitable companies to the market, attract both local and foreign funds, and restore investor confidence."
On the upcoming national budget, the minister said, "It will not follow a conventional approach. Instead, it will focus on ensuring a level playing field so that all citizens have equal opportunities to participate in economic activities."
"Patronage politics will no longer continue," he said, alleging that special interest groups had long enjoyed benefits at the expense of ordinary people. "The new budget will aim to ensure that the benefits of development reach the broader population while fostering fair competition."
Referring to the country's debt burden and laundered money, Amir Khasru said, "A significant portion of previously borrowed funds had not been used productively and, in some cases, had been misappropriated. As a result, the current government is now facing the responsibility of servicing liabilities tied to assets that do not exist in reality."
He noted that major debt repayments lie ahead and said efforts are underway at the government-to-government level, alongside support from international professional institutions, to recover siphoned-off funds as much as possible.
On Chattogram's development, the minister said projects would continue in the normal course, but transparency and effectiveness would be strictly ensured.
He emphasised that to turn Chattogram into a true commercial capital, investment must increase, port operations need further improvement, and more employment opportunities must be created.
'Ctg Port inefficiencies raising goods cost'
Amir Khasru also said complexities and lack of coordination in operations at Chattogram Port are driving up the cost of goods, affecting industrial production and market prices.
Speaking to journalists after a meeting with the Port Users Forum, the minister said resolving the port's operational problems would speed up cargo clearance and reduce unnecessary expenses.
Representatives from the port, customs, transport workers and other stakeholders attended the meeting.
The minister said the discussion examined each problem area in detail, identifying where delays and additional costs are occurring. "Some immediate solutions were agreed upon, while decisions on other issues involving inter-ministerial coordination will take a few more days."
He noted that various stakeholders surrounding Chattogram Port are operating in isolation, creating a fragmented environment. "Each group has developed its own sphere, and as a result, accountability for specific problems is not always clear," he said.
According to the minister, delays in releasing imported goods, additional charges and procedural complexities are increasing costs. These added expenses are ultimately reflected in industrial production and passed on to consumers through higher market prices.
"The impact is not limited to consumer goods but also affects raw materials used in factories and nearly all imported products. People across the country are bearing this additional cost," he added.
Khasru informed that for the month of Ramadan, the government is giving special priority to speeding up the clearance of essential commodities. "But some deliveries are currently moving slowly, and delays can trigger further price hikes in the market. Faster clearance would help cut the extra costs associated with delays."
The minister further said the government has taken initiatives to ease the economic pressure created by port-related inefficiencies. "Some solutions were reached today, and others will be finalised through further discussions. We hope effective steps can be taken very soon," he said.
He expressed optimism that improved port operations would accelerate cargo handling, lower production costs and help ease price pressure in the market.
Earlier in the morning, the finance minister arrived at Shah Amanat International Airport in Chattogram by air.
