Economy
Bangladesh Adopts Measures to Address Economic Challenges, Sees 18.19% Dip in Imports
In the face of multifaceted economic challenges, Bangladesh experienced a notable 18.19% year-on-year decline in imports, totaling $33.68 billion during the first half of the 2023-24 fiscal year, according to recent Bangladesh Bank (BB) statistics. The settlement of letters of credit (LCs), indicating actual imports, stood at $33,683.51 million in July-December, compared to $41,175.28 million in the corresponding period the previous year. Concurrently, overall import orders, officially termed as the fresh opening of import letters of credit, recorded a 5.33% year-on-year drop to $32,929.31 million in the same period.
The data revealed a strategic effort by Bangladesh to address economic challenges and boost forex reserves, currently around $20 billion. The central bank has implemented policies to discourage imports, aiming to alleviate the trade deficit and enhance forex reserves. In the 2022-23 fiscal year, Bangladesh’s trade deficit decreased by 48.41% year-on-year to $17.16 billion amid reduced imports and shrinking forex reserves.
In response to the economic landscape, the central bank has issued strategic directives in its half-yearly monetary policy, spanning from January to June 2024. The primary focus is on maintaining a vigilant, hawkish approach to monetary policy until inflation rates are effectively brought under control. To address demand-side pressures and ensure adequate funds for priority sectors, the BB has increased its policy rate by 25 basis points to 8%. This marks the ninth consecutive rate hike over the past 20 months, aligning with efforts to manage inflation, which was at 9.93% in October, surpassing the central bank’s target of 6% for the current fiscal year.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
