Economists, businessmen and bankers have advised to separate the looted money from the country’s banking sector and benami loans from the total amount of defaulted loans. They said that benami loans should be stopped. The economy will not move forward if the burden of such debt is placed on everyone else.
Speakers said these things at the round table meeting organized by Prothom Alo on ‘Economy: Challenges of the New Government’ on Saturday. A former state minister, five economists, two businessmen and a former banker attended the meeting held at Prothom Alo office. Prothom Alo Head of Online Shaukat Hossain moderated the event.
The president of Bangladesh Textile Mills Association (BTMA) in the round table meeting. Ali Khokon said, bad debt is being talked about in the discussion of defaulted loans. But you must distinguish bad debt from bad debt. Why should we traders take the burden of benami loans? Will we take the responsibility of Hallmark, Basic Bank and PK Halder? Did Bangladesh Bank sleep? The benami loan should be taken out and then the actual defaulted loan should be discussed.
Businessman md. In support of Ali Khokon’s statement, Trust Bank’s former managing director (MD) Farooq Moinuddin said that it is necessary to separate benami loans from defaulted loans.
In the round table meeting, the speakers mentioned inflation as one of the main challenges facing the new government. Apart from this, they suggested eliminating the energy and power sector crisis, preventing money laundering, emphasizing on increasing expatriate income and reserves and ensuring good governance and transparency.
In the meeting, Executive Director of Policy Research Institute Ahsan H. Mansoor said that the new government should take some steps in the short term. In this, quick steps should be taken to restore stability in inflation and overall economy. Inflation should be reduced by raising interest rates further. If the interest rate increases, the stability of the dollar exchange rate will also return. Bank’s liquidity crisis will also be resolved. Outgoing money will return to the bank. Besides, confidence should be restored among the depositors. What is going on in the Islamic banks should be stopped.
Former State Minister for Planning Shamsul Alam considers the target of bringing down the inflation rate to 7 and a half percent by next June as ‘too much hope’. He said, I don’t think this goal will be achieved. The ongoing inflation in the country came first with imports, ie it was exogenous. Later inflation increased due to increase in cost of production. Cost of production, once increased, cannot be reduced overnight. As a result inflation cannot be controlled only by interest rate. Besides increasing the interest rate, he suggested to increase the supply of products in the market and reduce the cost of production.
Shamsul Alam also said that the security of capital and security of individuals is low in the country. Because of this, capital is being smuggled on the one hand. On the other hand, talent is also being trafficked.
Fahmida Khatun, executive director of the Center for Policy Dialogue (CPD), said effective fiscal policy will be needed along with monetary policy to control inflation. Expenditure should be reduced in various sectors including expensive projects. Market management should be improved. Otherwise inflation will not come down and monetary policy will not be effective.
Apex Footwear Managing Director Syed Nasim Manzoor said that the cost of doing business has increased several times in the current economic situation. He said that supply cost, fuel cost, wages, service cost etc. all costs have increased. So where is the place to cut costs in business? How will inflation be reduced?
Syed Nasim Manzoor has suggested rationalization of tax rates and reduction of fuel costs to overcome this situation. He said the National Board of Revenue (NBR) is getting 30 percent more revenue due to the rise in dollar value. If inflation is to be reduced, tax-rates need to be rationalized. Apart from this, he suggested to reduce the cost of energy in coordination with the world market.
Economist and former professor of economics department of Jahangirnagar University Anu Muhammad mentioned three problems behind the current economic crisis. He said, the first problem is transparency; Second, the problem of accountability and third, the failure of institutions. Every decision is being made in the country, policy is being made, who is making it, how it is being made, in whose interest – there is no transparency in these matters. They are much like the country’s traffic signal system. When the light is green, the vehicle is stopped. And when it’s red, the car moves.
Anu Muhammad said that the current crisis is created, it is said that one of the reasons behind it is the energy and power sector. It has been said that whatever is done cannot be questioned; Can’t go to court. Apart from this, no question can be asked about the agreements being made.
Referring to the licensing of banks, Anu Muhammad said, experts have said many times, even people close to the government have said that there is no need for so many banks. Still the license was granted. After that the banking sector has been crushed. Bangladesh Bank’s decisions are being taken in the back rather than in the front. The decision has been taken even sitting in the hotel. It can be seen that everything is happening for the benefit of some group. All those groups are getting tax benefits, money laundering benefits.
Rashed Al Mahmud Titumir, a teacher of Dhaka University’s Department of Development Studies and Chairperson of Development Research, said that without transparency in data or statistics, proper policies cannot be formulated. If a discussion or decision is made on the basis of a fabricated story, the story has no foundation. Misinformation and misinformation must be distinguished.
Rashed Al Mahmud Titumir said, if there is no transparency in data or statistics, the right policy cannot be formulated. If a discussion or decision is made on the basis of a fabricated story, the story has no foundation. Misinformation and misinformation must be distinguished.
Rashed Al Mahmoud Titumir also said that this imbalance of macroeconomics is due to structural reasons. This is due to the monopolization of the wealthy and policy makers. Until this is acknowledged, the discussion will not proceed.
Mashroor Riaz, chairman of research institute Policy Exchange, said that the current government is not new in a sense, nor is the challenge new. As a result, quick and effective action should be taken on the crises. First of all, political will is needed for this. Opportunities for benami loans and money laundering should be stopped, initiatives may be taken to consolidate bad banks and the business environment should be simplified and improved.
According to the prothomalo