Macroeconomy remains stable
Staff Reporter :
Finance Adviser Dr. Salehuddin Ahmed stated on Sunday that Bangladesh’s macroeconomy remains stable, despite not being fully recovered.
Speaking at a views-exchange meeting on “The Role of Remittance in Bangladesh’s Economy” at the Bangladesh Secretariat, he acknowledged past challenges in the current and financial accounts, but credited strong remittance inflows and export earnings for the recent positive shift.
The event was organised by the Bangladesh Secretariat Reporters Forum (BSRF) and Taptap Send, with BSRF President Fasih Uddin Mahtab presiding and General Secretary Masudul Haque moderating. Taptap Send Coordinator Mahmud Monir also spoke at the event.
Dr. Salehuddin highlighted the contradiction in economic debates, where some advocate for increased revenue mobilisation while simultaneously pushing for reduced taxes and VAT. He noted that the country’s tax-GDP ratio remains low.
However, remittance inflows have now exceeded $2 billion monthly, with more expatriates opting for official banking channels over informal methods like Hundi.
He pointed out that most Bangladeshi expatriates work in low-tier jobs, unlike Indians, Sri Lankans, and Pakistanis, who secure managerial roles due to better education and language skills. He stressed the need for skill development programmes to enable higher earnings for Bangladeshis abroad.
Despite their significant contributions, many expatriates fail to invest their earnings productively, often spending on non-viable assets like village properties without considering returns. He emphasised the need for transparent processes to send more skilled workers abroad to improve their financial security.
Dr. Salehuddin acknowledged past policy failures and underscored the interim government’s efforts to establish a foundation for future reforms.
While some long-term reforms require political decisions by successive governments, his administration aims to address financial and banking sector challenges, including reducing Non-Performing Loans (NPLs).
On VAT, he stated that while some reductions have been implemented, overall cuts could impact revenue generation. He reassured that essential sectors like health, education, and social safety would not face budget reductions.
Addressing financial stability, he mentioned support from international lenders, including $500 million from the Islamic Development Bank for fertiliser imports and additional aid expected from the ADB, World Bank, and IMF.
He affirmed that Bangladesh has never defaulted on loan payments and aims to maintain financial credibility.
Dr. Salehuddin also noted efforts to enhance the Universal Pension Scheme and acknowledged that while economic recovery is ongoing, significant improvements have been made.
Taptap Send Coordinator Mahmud Monir explained that their mobile app facilitates secure remittance transfers from countries like the USA, Canada, Europe, Australia, and the UAE to Bangladesh and other regions in Asia, Africa, and Latin America.