Outgoing 2023 under lens: Economic crisis, political persecution dominate

Anisur Rahman Khan with Al Mamun Harun Ur Rashid :
As the curtains draw on 2023, the year will be remembered as one fraught with challenges for the nation, including inflation, dollar and power crisis, dengue outbreak, and political repression against the opposition.

Amidst the gloom and adversity, Bangladesh also celebrated the inauguration of several mega projects in 2023.

Notable among these were the completion and opening of the Padma Bridge.

The Karnaphuli Tunnel and the Metro Rail were also unveiled, showcasing the government’s commitment to advancing transportation and connectivity despite the myriad challenges.

However, the persistent surge in inflation cast a long shadow over the nation, wreaking havoc on the lives of citizens.

Exorbitant prices of essential commodities, particularly food, left the population grappling with severe hardships.

Despite the government’s repeated commitments to control the price hike of the daily essentials, the prices of daily essentials did not reduce; rather it is still high for the ordinary and poor people.

Power sector: The repercussions of the economic turmoil were exacerbated by a power and electricity crisis that paralysed the nation during the hottest months of the country.

Reports reveal that at least 52 out of the 153 power plants in the country were non-operational in June, attributing the shutdowns to various factors, including fuel shortages and maintenance issues.

The adverse effects of the electricity shortage reverberated throughout the country, impacting daily life and dealing a severe blow to the agricultural sector.

Banking sector: The year has witnessed the revelation of a serious liquidity crisis in the banking sector shaking the confidence of depositors and investors alike.

The drastic fall of the foreign reserves further deepening the economic distress faced by the people.

The banking sector has consistently demonstrated vulnerability, primarily because of a lack of good governance and a dearth of reforms. Regrettably, the government’s commitments to safeguard the banking sector remain unmet.

Excess liquidity in the banking sector has declined from Tk 16.9 billion in October 2022 to BDT 158 billion in October 2023. Excess liquidity as a share of the total liquid assets of the banking sector declined from 41 per cent in October 2022 to 37 per cent in October 2023.

The remittance flow through the legal channels was not satisfactory throughout the year which paralysed the liquidity crisis in the banking sector, resulting in the devaluation of Taka for several times against the dollar rate. The situation of dollar crisis is still high in the banking sector.

Banks are experiencing pressure on their liquidity positions. Since the cost of living has increased, many people are forced to use their savings to make ends meet.

Political landscape: The political landscape was marred by allegations of repression, particularly targeting the Bangladesh Nationalist Party (BNP) and its leaders and workers.

Reports indicate a climate of political turmoil, with the BNP facing undue restrictions and oppressive measures to carry out their political programmes throughout the year as they faced obstructions by the law enforcers and the ruling party.