Inflation pushes 8-10 million people below poverty line: Titumir

Inflation has placed a heavy burden on low- and middle-income people in Bangladesh, with an estimated 8 million to 10 million people falling below the poverty line, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir has said.

Citing a World Bank report, Titumir said the introduction of family cards and farmer cards had been recognised by the International Monetary Fund and the World Bank as a groundbreaking initiative expected to help reduce poverty and ease people's hardship.

He made the remarks while speaking to journalists at the Rajbari Municipality auditorium yesterday at a meeting organised by the Rajbari District Administration.

Rajbari District Council Administrator Abdus Salam Mia was present at the meeting.

Titumir said the country was going through a critical transition, with the current administration inheriting a fragile economy marked by high inflation, rising unemployment and weak private-sector investment.

He said many people had been forced to use up their savings or take on debt to cope with rising prices, while unemployment among young and educated citizens had also become a major concern.

The Middle East crisis had further increased fuel prices, adding pressure on the economy, he said, adding that misleading information and distorted data on gross domestic product (GDP) were also circulating on social media.

Titumir said the previous government had failed to take necessary steps to expand solar energy, explore domestic gas resources and ensure sustainable energy security.

He alleged that cronyism and patronage had weakened the economic system and that around $40 billion would now be needed to repair the banking sector.

Sustainable energy security is essential to attract investment and create jobs, he said.

The adviser added that Bangladesh needed to develop renewable energy and reduce its dependence on imported fuel.

He also stressed the need to reform the education system and develop a skilled workforce to address unemployment, particularly among young and educated people.

He said the government planned to allocate 2% of GDP to education for the first time in Bangladesh's history, with a commitment to gradually raise the allocation to 5% by 2030.

Titumir also emphasised the need to build a healthy population alongside a skilled workforce.

Referring to the development of healthcare infrastructure, he said 20-bed upazila health complexes were established during the tenure of late president Ziaur Rahman and later expanded to 50-bed facilities under former prime minister Khaleda Zia. 

The government is now upgrading upazila-level hospitals to 151-bed facilities, he added.