People under pressure for increasing cost of living: CPD

Staff Reporter :
The country’s poor and low income group of people, have faced increasing hardship as the cost of living has continued to climb, said the Centre for Policy Dialogue (CPD).
It also said that the prioritising the use of renewable energy and emphasising gas exploration and extraction efforts are required to tackle the ongoing fossil-fuel-based power and energy crisis.
Dr Fahmida Khatun, Executive Director of the CPD, passed her comments in a press briefing on “Slowdown in global economy and challenges for Bangladesh: How to tackle?” at its head office in the city on Thursday.
Dr Fahmida said, “Several necessities whether they are produced locally or imported are more costly in Bangladesh than in South Asian nations. The cost of living is going up and it has become burden for the people. The inflationary situation is now unrestrained. As a result, the economic recovery is hampered.”
The global economy is adversely impacted by a combination of challenges of inflation, intensified economic war between Russia-Ukraine and continuation of adverse impact of Covid-19 pandemic, she said.
So, withdrawal of Advance Income Tax (AIT), Advance Tax (AT) and Regulatory Duty (RD) on all imported essential food items is required to help people manage their livelihood, she suggested.
Fahmida also recommended that the Minimum Wage Board should consider increasing the minimum wages in all industries so that workers earning minimum wages may at least afford basic food.
According to the CPD research, the consumers in Bangladesh have to pay Tk 684 for 1kg beef, highest in the region and substantially above the global average of Tk 549.
A kilogram of beef costs Tk 375 per kg in Pakistan, around half of Bangladesh’s Tk 684. Also, beef costs Tk 580 per kg in India, Tk 465 per kg in Nepal and Tk 545 per kg in Sri Lanka, the report said.
The Global Report on Food Crises 2022 has mentioned the name of Bangladesh as one of the countries which are at risk of facing a food crisis, the report said.
Dr Fahmida also said that out-of-pocket expenditure for health is the highest in Bangladesh.
Regarding the country’s energy and power sector, she said the sector is facing multiple challenges – both short and medium-term in nature.
However, there are chances to reduce the power crisis through some additional power from India.
The CPD’s report noted that the power plants which are currently under construction (3384MW) are unlikely to come into operation due to shortages of energy supply, thus the power generation and supply of crisis is likely to continue unless sufficient fuel supply is ensured.
Even though the power crisis may be eased in the medium term, the long-term tension will continue as the added generation capacity is mainly import-based, putting a huge burden of capacity payment on the shoulder of the Bangladesh Power Development Board (BPDB), the CPD added.
CPD’s Research Director Khondaker Golam Moazzem said, “Food has emerged as a political commodity. It may hamper to import food items from the international markets in the future. No country will want to export food items without ensuring sufficient stocks.”
Even if there are dollars, there may not be enough food products in the world market in the future, he said.