GDP growth to stay low in FY25: Finance adviser
The country's GDP growth will remain low this fiscal year, Finance Adviser Salehuddin Ahmed said today, amid grim forecasts from international groups including the World Bank and the Asian Development Bank due to various economic challenges.
Speaking at a book launch ceremony in the capital's Banani, he reassured the public, saying, "I have already said that there won't be much growth this year, but there is no need to panic."
He further assured that essential supplies, such as rice and pulses, would not be in short supply, as the government has taken necessary measures to ensure people's livelihoods are secure.
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"The country has returned from the brink of collapse," he said.
I have already said that there won't be much growth this year, but there is no need to panic.
The finance adviser acknowledged that, despite undertaking several reform initiatives, significant progress would be limited. However, he expressed confidence in leaving a lasting impact, particularly in implementing the policy and administrative separation of the National Board of Revenue (NBR).
"Extensive reforms are not feasible as we are being forced to leave by December," he stated.
He further noted that the current economic challenges were inherited, though some stability has been restored. "Many of our efforts may not be immediately visible," he added.
Despite these efforts, the finance adviser expressed dissatisfaction with the banking sector, saying, "Some banks are unable to clear even a Tk1 lakh cheque, despite receiving Tk22,000 crore in support."
He also criticised the reluctance of Bangladeshi businessmen to pay taxes, questioning, "Where will we increase taxes if they refuse to comply?" He noted that, under the previous government, certain business entities were granted tax exemptions without scrutiny.
"Nowhere in the world do businesses make money as quickly as Bangladeshi businessmen," he remarked.
He reiterated that tax administration will be separated from tax policy this year but acknowledged ongoing disputes between the administration cadre and tax and customs cadre officials.
"Regardless, tax policy and administration will be separated by law this year," the finance adviser affirmed. He also revealed plans to rename the NBR but declined to provide further details.
Acknowledging concerns over inadequate policies, he admitted that foreign brands are interested in doing business in Bangladesh but face policy-related challenges. "Despite this, they want to invest here, and we must seize these opportunities," he added.
Regarding LDC graduation, he said, "Our strategy is a smooth transition."
On tackling money laundering, he asserted, "Those who have laundered money can no longer stay at home. Their bank accounts are being frozen – we want to send a strong message." However, he admitted, "It may not be possible to recover all the money."
Sharing a personal example, he said, "One of my relatives is now in jail, and his spine is bent."
Commenting on the revised budget, he remarked, "Not much will change, but you will feel the impact in the next budget." However, he did not disclose any specific details about the planned changes.
Economists and businessmen shared their insights at the launch of "Development and Globalization: International Bangladesh Perspective," a book by Rizwanul Islam, former special adviser for the employment sector at the International Labour Organization (ILO).
Islam highlighted several key topics in his book, stating that while Bangladesh has outpaced India and Nepal in growth, it lags behind in the vulnerability index.
He cautioned that prioritising class interests could lead to the adoption of flawed policies, as seen in Bangladesh's experience in 2023 and 2024.
On the country's future, Islam noted that even with a 6% average GDP growth rate from 2025, it would take 10 years for Bangladesh to become an upper-middle-income country.
He added that reaching high-income status by 2057 would be challenging.
