Inflation, exchange rate stability should get priority: experts

The government should focus more on taming inflation, stabilising exchange rate and increasing forex reserve in the upcoming national budget for 2024-25 fiscal year, experts said today.

Besides, tightening of the monetary policy, tax collection reforms, broadening of the social safety net as well as ensuring food security and healthcare services should get priority, they said.

They spoke at a pre-budget discussion organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at Pan Pacific Sonargaon Dhaka.

The main goal should be bringing back economic stability, Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said at the event.

For economic stability, the country would face three challenges: rising inflation, unstable exchange market and depleting foreign currency reserves, he said.

Inflation increased in Bangladesh at a time when it reduced worldwide, he said.

"Why did we fail to tame inflation? Because, we did not adopt policies what other countries did to control it."

Efforts should be taken to increase supply and stock of essential goods in order to fight inflation, said Mohammed Farashuddin, former Bangladesh Bank governor.

"The interference of middlemen, dishonest officials and mill owners should be stopped in the supply chain of products. Inflation can be reduced if monitoring is strengthened for three to four months."

A cut in interest rates will not be enough to control the inflation, he added.

Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industry, stressed the need for reforming the tax collection system to stop harassment of businesses.

To give a boost to tax collection, the National Single Window should be launched soon, he said.

"We don't want any incentive now. We want logistics policy support."

The government is giving utmost importance to reducing inflation, increasing reserves and remittances in the next budget, said Waseqa Ayesha Khan, state minister for finance.

Steps will also be taken to increase export earnings and ensure investment-friendly environment and uninterrupted power and fuel supply, she said.

In the upcoming budget, priority will be given to IT-based budget management, development of infrastructure and technology, human resource and steps to give more incentives to the agricultural sector.