In the realm of economic policy, uncertainty hampers progress. The recent unexpected decision by the government to reduce export subsidies has once again highlighted the critical need for a transparent and predictable roadmap for economic policy changes.
Economists and entrepreneurs alike have emphasized that such clarity is not a luxury but a necessity for the private sector to flourish.
Mashiur Rahman, the economic affairs adviser to the prime minister, rightly stressed the importance of long-term planning for investors.
Businesses operate on timelines that extend far beyond immediate quarters; they need stable and consistent policies to make informed decisions about investments, expansions, and resource allocations.
A sudden shift in government strategies, such as the abrupt subsidy cuts, can send shockwaves through industries, disrupting operations and eroding investor confidence.
This approach would provide businesses with a predictable timeline for adjustments, thereby mitigating the adverse impacts of policy changes.
Moreover, incentivizing productivity improvements over mere financial support can foster sustainable growth and resilience within the private sector.
The concerns raised by entrepreneurs regarding the transmission mechanism of monetary policy highlight another area requiring attention.
A coherent monetary policy framework is essential to ensure that the central bank’s actions align with broader economic objectives.
While the adoption of a crawling peg exchange rate system is welcomed, it must be complemented by measures to address currency volatility and liquidity constraints.
The grievances expressed by business leaders concerning challenges in accessing credit, rising production costs, and regulatory pressures further underscore the multifaceted nature of the issues facing the private sector.
A holistic approach, encompassing tax reforms, infrastructure development, and skills enhancement, is needed to create an enabling environment for businesses to thrive.
Insiders’ advocacy for lower corporate taxes, streamlined taxation systems, and improved access to technology resonates with the broader goal of enhancing competitiveness and fostering innovation. Similarly, the emphasis on addressing non-performing loans, enhancing the tax-to-GDP ratio, and strengthening the financial sector reflects recognition of the systemic reforms required to sustain economic growth.
As Bangladesh navigates the complexities of a rapidly evolving global economy, policymakers must prioritize transparency, consistency, and inclusivity in shaping the country’s economic trajectory.
Only through concerted efforts to address the concerns of the private sector and promote an ecosystem conducive to entrepreneurship can Bangladesh realize its full economic potential.
