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Corrective financial measures needed to boost our Economy: DCCI President

Bangladesh has fared somewhat better than many of its peers in weathering the geoeconomic crisis and challenges. Although Moody's Investors Service has forecasted Bangladesh's credit rating and the country's long-term outlook to be stable, certain measures are needed to boost the economy in light of our LDC graduation in 2026.

The economy is facing certain challenges pertaining to inflation and it is of utmost importance that inflation is tamed at whatever costs necessary, especially food inflation. Contractionary monetary policies should be coupled with fiscal policies in order to ensuring that prices of goods are kept at a minimum level.

Another challenge is the stabilization of the foreign exchange market. President of Dhaka Chamber Barrister Md. Sameer Sattar feels that it is of utmost importance to take appropriate strict measures in this regard. Having a market-driven USD rate is important to ensure that remittances from abroad, especially from migrant workers, are received through official banking channels. The Government must also prioritize export market diversification so that export earnings are generated from multiple markets as opposed to our traditional markets.

Barrister Sattar feels that the Government should ensure effective steps for revenue generation. Tax offices should be opened in various parts of Bangladesh and a proper mapping should be kept in place for the performance of the tax offices, especially outside Dhaka and Chittagong. The informal sector should be brought strictly within the tax net to increase revenue. In this connection, the Government may consider strengthening the resources of the NBR and increasing its capacity to ensure continuous revenue collection activities outside Dhaka and Chittagong. The Government may consider going for full automation in practice to increase its revenue collection.

Barrister Sattar also stressed structural reforms in the banking sector to ensure good governance to keep a check on the increasing NPLs and recovery of the defaulted loans. If the financial sector, the lifeline of the economy, runs smoothly, this will, in turn, generate diverse economic opportunities and potentials with positive multiplier effects across the economy in the years to come.

Published on: 2023-12-18