Reserve loss, inflation, low revenues identified as key challenges for economy: Economist Sadiq Ahmed

Eminent economist Sadiq Ahmed has identified import surge leading to reserve losses, taka's depreciation, persistent inflation, and low domestic revenue growth as major macroeconomic concerns for the country now. 

At a discussion on Tuesday, he said, "These factors were impeding the growth of Bangladesh's GDP and its overall progress and development," citing that the country has one of the lowest tax to GDP ratios in the world. 

Sadiq, also vice-chairman of local think tank Policy Research Institute (PRI), presented the keynote paper at the discussion titled: Stabilising the Macroeconomy of Bangladesh: Issues and Challenges," organised by the Metropolitan Chamber of Commerce and Industry (MCCI). 

He advocated for a focused, medium-term tax reform programme.

MCCI President Kamran T Rahman delivered the welcome remarks at the event moderated by Farooq Ahmed, secretary-general and CEO of the MCCI.

Kamran T Rahman stressed that stakeholders and policymakers must have a comprehensive understanding of how multiple factors collectively shape economic dynamics, said a press release here.

He believed this knowledge helped create strategies for economic stability and growth. "Discussions such as this event could help private sector representatives enhance their knowledge and realign their strategies," he said. 

Later, he also discussed and elaborated on effective ways to tackle the inflationary, balance of payments, and budgetary challenges that the country was facing.

Other issues that came up during the open discussion include the challenges of non-performing and distressed loans, tax leakages, fiscal, banking, and trade reforms, and the need for a transparent and easily understandable tax policy.