Govt initiatives will help resolve dollar crisis soon: Salman F Rahman

The ongoing dollar crisis will be resolved soon as the government has taken various measures toward this end, Prime Minister's Private Industry and Investment Adviser Salman F Rahman said Monday (29 January).

"Two factors can help reduce [dollar] pressure at the moment: increasing remittances and boosting exports. The government has taken steps in this regard," he said in response to queries from journalists at the Bangladesh Investment Development Authority (Bida) headquarters in the capital.

He added, "Although imports have decreased significantly in recent times, the pressure on the dollar persists."

The adviser said it has been decided to increase opportunities in the leather and jute sectors by giving importance to exports from these two sectors, adding, "If other sectors, like the garment industry, are given the same facilities, I believe the export basket will expand."

He said the prime minister has given several instructions on increasing exports. "Exports need to be diversified. In addition, a law has been enacted so that expatriates can keep their dollars in foreign [bank] accounts," he continued.

Despite these measures, RMG products account for 80% of exports. In this situation, when asked if he is satisfied with export diversification, the adviser replied, "I am satisfied and, at the same time, dissatisfied from another point of view."

"We have identified many new export products. For example, flowers, fruits, and agro-processed products have begun to be exported, albeit on a small scale," he said.

Furniture, refrigerators and air conditioners are also being exported now, he said, adding, "We never imagined that Bangladesh could export so much. Our exports have diversified, but the volume is not increasing."

This year, the government has declared handicrafts the "product of the year." He said more opportunities would be given in this sector. When the product of the year is announced, the Ministry of Commerce emphasises the expansion and export of that product. Just as it is done in medicine and leather, the export of medicine is doing well now.

The headline inflation rate in the country has been above 9% for a prolonged period. According to the Bangladesh Bureau of Statistics, overall inflation was 9.42% in December.

In response to a journalist's question, Salman Rahman said the Bangladesh Bank has increased the interest rate, resulting in a partial reduction in inflation. However, the anticipated level of decrease has not yet been achieved.

He pointed out that the prices of some products in the country have unreasonably increased, but many have come down due to government intervention.

The food and commerce ministries, along with other ministries, are investigating the matter, he said, expressing his hope that the prices will decrease.

Regarding the gas crisis, the adviser said the current situation is temporary. He mentioned recent LNG purchases and held out positive news for the future, stating that many new gas discoveries have been made, which is expected to reduce the gas crisis in the days to come.

Salman Rahman, a Member of Parliament representing Dhaka-1 (Dohar-Nawabganj), held a views-exchange meeting with stakeholders on development plans for his constituency earlier in the day.

In Nawabganj, he said land acquisition work for the special economic zone will commence soon, adding, "There are some Khas (government) lands here, and most of them will be acquired."