Restoring business confidence biggest of challenges ahead

Listing challenges facing the economy ahead, like high inflation, unemployment, energy shortage and higher US tariffs, Finance Adviser Dr Salehuddin Ahmed says restoring business confidence tops it all.

On the achievements of the post-uprising interim government on the economic front so far, he told reporters Wednesday that the country's economy had been lifted from the edge of an abyss.

"One needs to have vision and acumen to see it instead of watching it from the surface," he says about the economic recovery process.

"There were very precarious challenges before the interim government when it took office and now the country could come to a place of comfort," he adds.

The finance adviser was talking to the newsmen after two meetings of the Advisers' Council Committee on Economic Affairs and Advisers' Council Committee on Government Purchase at Bangladesh Secretariat in the capital.

"But, of course, challenges are there. We have inflation, unemployment, energy, and tariff issues. And the biggest challenge is to restore the confidence of businesspeople and to get trade and commerce moving a little faster, which now has slowed," said Mr Ahmed.

Replying to a query whether inflation has come down to a comfortable level, the Finance Adviser said it would take some more time.

"Inflation is not like that, we pulled the horse by the reins. If you want to ride the horse, you have to pull your head up. Inflation is not like that, we reduced everything in one day. It is decreasing, but non-food inflation is a bit challenging for us."

Regarding budget deficit -- a perennial problem many attribute to lapses and loopholes in revenue-and tax-collection systems -- Mr Ahmed said according to provisional estimation the deficit will be 3.6 per cent which the government wanted to keep within 4.5 per cent.

To a query on reforms, he said some reforms had already been done while mid-term and long-term reforms like implementation of bank resolution, reforms linked to capital market, and amendment of the ordinance on the National Board of Revenue, would take time, preferably to be completed by December next.

The economic pointsman under the interim government of Bangladesh thinks it could have been further better had the United States lowered the reciprocal tariff further. Regarding the 20-percent tariff he said: "This is not bad -- if you compare with other countries, then Bangladesh is not in a bad position."

Asked whether Bangladesh will seek further tariff cut, the adviser indicated that the government would continue negotiation with the US aiming to further lower the tariff rate.

syful-islam@outlook.com