Corona has reduced people’s income. There has also been a major negative impact on employment. At such a time, the way the prices of essential commodities are rising in the country is worrying. This is increasing the pressure on people. The Center for Policy Dialogue (CPD), a private research institute, believes that the prices of essential commodities cannot be controlled due to lack of good governance in market management.
The agency said Corona has not yet recovered from the situation. So another incentive package is urgently needed for people living below the poverty line. A family of four needs a total of Tk 8,298 per month including rice, pulses, potatoes, oil and fish. The CPD has proposed to increase the amount of money for the poor people for a longer period of time and announce an incentive package of Tk 6,000 instead of Tk 2,500.
CPD Executive Director Fahmida Khatun presented the main article ‘Bangladesh Economy 2021-22: The First Interim Review’ at her office in Dhanmondi. Among others, Special Fellow Mostafizur Rahman, Research Director Khandaker Golam Moazzem and Senior Research Fellow Taufiqul Islam Khan spoke on the occasion.
Speaking at a press conference on the occasion of the release of the economic progress review report for the first six months of the current fiscal year 2021-22, the CPD further said that the sources of financial management of the government are shrinking. Institutional capacity is also shrinking. Achieving revenue collection targets is becoming difficult. The loan from abroad is going behind the project. There is no money for budget support.
According to the report, the revenue collection rate is good till October of the current financial year. However, in order to achieve the revenue collection target, the NBRK has to collect at least 30 percent, which is difficult to achieve. Although there has been some improvement in the flow of personal loans, the target is much higher. Although government money is spent on annual development programs, foreign loans are not being spent at the desired rate. Worst of all, the four-month ADP implementation rate of the Ministry of Health is only 6 percent.
Regarding the stock market, the CPD said that the new administration has taken several steps regarding the capital market. But that is not enough. Institutional capacity and good governance must be ensured in the capital market. A few road shows will not bring confidence in the minds of investors. The CPD says there are big players in the capital market who are influencing the market.
According to the CPD report, under the government-announced incentive package, 6 per cent was dependent on bank loans. Big entrepreneurs have got this loan. Due to the weakness in the policy, the children have less opportunity to get loans. A large part of the report was about the volatile market for essential commodities. The agency said that in addition to the lack of good governance, rising commodity prices in the international market and the arrival of incentive money in the market are also the reasons for the rise in inflation.
Regarding this, Fahmida Khatun said, the prices of daily necessities are increasing in the market. But according to the government agency BBS, there is no reflection of the price increase. Probably a factor as to why they’re doing so poorly. But in recent times there has been a huge change in the suffering of the people. So the time has come, consumers have to basket new products to price. This is because there is a big difference between the prices of essential commodities in the market and the BBS data. Fahmida Khatun also suggested strengthening the Competition Commission to control the market.