Home
+
Published : 12 Sep 2024, 02:48 AM
Chief Advisor Muhammad Yunus has outlined several reform initiatives undertaken by his administration in its first month in office.
In a televised speech on Wednesday evening, Yunus detailed the measures taken to tackle pressing issues.
These efforts include recovering embezzled and smuggled funds, restoring discipline in the financial sector, and reforming the banking sector.
Yunus also highlighted measures to ease inflation pressures on the public, balance import-export dynamics, and stabilise foreign currency exchange rates.
The Yunus-led advisory council was sworn in at Bangabhaban on Aug 8, following the resignation of Sheikh Hasina on Aug 5 and her escape to India, which ended the Awami League's 15-year rule.
The chief advisor mentioned the initiatives to establish a banking commission and restructure bank boards to restore discipline in the financial sector.
“Significant changes have been made in the banking sector over the past month. We have managed to establish rules and regulations in this sector. However, much work remains. We have focused on the main tasks in the first month, with many more tasks ahead," he said.
To address the foreign currency deficit and stabilise the exchange rate, the Bangladeshi currency has been aligned with market rates against the US dollar.
Yunus said budget support has been sought from development partners.
Requests for an additional $3 billion from the International Monetary Fund, or IMF, $1 billion from the World Bank and $1 billion from Japan International Cooperation Agency, or JICA, have been made.
He highlighted the initiative to cancel the 'unethical' provision for whitening black money.
However, Yunus did not comment on the ongoing provisions for legalising untaxed money through land and property investments.
In addition, he said metro services resumed on Aug 25 at all stations except Mirpur-10 and Kazipara, following a 37-day suspension due to disruptions from the Anti-discrimination Student Movement.
CAUSE OF INFLATION: ‘PRINTING MONEY’
In recent years, Bangladesh has experienced persistently high inflation rates.
For FY 2022-23 and 2023-24, inflation consistently remained above 9 percent, sometimes even reaching double digits.
This trend has continued into the current fiscal year.
Despite a slight decrease from July’s record high, inflation in August still remains in double digits, with the overall rate standing at 10.49 percent, down from 11.66 percent in July.
Yunus said, “The fascist government’s decision to print money worth Tk 60 billion for embezzlement has caused the people of the country to suffer inflation.”
He highlighted that controlling this unprecedented inflation is a primary goal of the interim government.
“To tackle inflation, the policy interest rate has been raised to 9 percent,” said Yunus.
In addition, to protect members of the public from inflation, the government has maintained the supply of essential goods at affordable prices through programmes like Open Market Sale, or OMS, and the food-friendly programme, he added.
For the current fiscal year, Tk 58 billion has been allocated for rice and wheat imports, Tk 89 billion for domestic procurement, and Tk 73.6 billion for three food subsidy programmes.
“Meetings with stakeholders are ongoing to identify additional measures to control inflation,” said Yunus.
NORMAL SUPPLY OF ESSENTIALS
Violence and chaos surrounding the Anti-discrimination Student Movement, coupled with the ousting of the previous government, disrupted the supply of goods for most of July and August.
The situation was further exacerbated by sudden flooding.
The chief adviser said, “Meetings have been held with traders, industrialists, and business associations to ensure the normal supply of essential goods. Measures are being taken based on their feedback.”
“Existing stock and shortages have been assessed and future demand reviewed. Steps have been taken to boost local production, remove complexities in the import process and address issues in transport systems, ports, and major markets. Relevant ministries and departments have been given the necessary instructions.
“For this reason, meetings and discussions have been held with major companies producing oil, sugar, eggs, and meat,” he added.
Yunus continued, "Necessary instructions have been given to the NBR to reduce existing duty rates in order to further lower the prices of essential items such as onions and potatoes.
“The NBR has already issued an SRO (Statutory Regulatory Order), reducing import duties on onions, potatoes, and certain pesticides, and in some cases, withdrawing regulatory duties.”
He mentioned that reduced-price essentials, including 5 kg of rice, 2 kg of soybean oil, and 2 kg of lentils per month, are being provided to 10 million low-income families through the Trading Corporation of Bangladesh, or TCB.
“This initiative will be maintained in the days ahead,” he added.
REDUCTION IN DEVELOPMENT EXPENSES
Yunus said the government has taken steps to reduce both operational and development expenditures rationally.
He also mentioned that steps have been taken to ensure the supply of foreign currency for importing fertilisers needed for agricultural production.
In addition, initiatives have been undertaken to ensure that genuine farmers have access to agricultural loans, with an increase in the loan amounts, he added.
The advisor said, "Discussions are ongoing with the Russian Federation regarding the advance payment and outstanding dues for the Rooppur Nuclear Power Plant project."
The Ministry of Housing and Public Works has initiated the drafting of the Barishal, Rangpur and Mymensingh Development Authorities Act.
Efforts are under way to finalise the roadmap for the development of the Purbachal New Town project and satellite cities around Dhaka.
An initiative to cancel illegally allocated plots and flats has also been undertaken.
Yunus said efforts are under way to utilise the $48 billion in foreign aid currently in the pipeline. “Plans have been made to stop embezzlement under the guise of mega projects and increase allocations for health and education.”
“To reduce pressure on foreign currency reserves, requests have been made to lower interest rates and extend the repayment periods for loans from Russia and China.
“Efforts are being made to strengthen relationships with all development partners,” he added.
ENERGY SECTOR REFORMS
Yunus said that since the government took office, all negotiations, project selections and procurement activities under the Quick Enhancement of Electricity and Energy Supply Act have been temporarily suspended to meet public expectations.
He said, “Over the past fifteen years, billions of taka have been embezzled using this law. The boards of companies under the Ministry of Power, Energy and Mineral Resources have been restructured to ensure greater transparency and accountability.”
He also mentioned efforts to include student representatives with expertise in engineering, geology and accounting.
A committee comprising experts has been formed to enhance capacity, efficiency and accountability in the sector.
In addition, to keep fuel prices manageable according to public expectations, octane and petrol prices have been reduced by Tk 6, while diesel and kerosene prices have been cut by Tk 1.25.
RESOLVING DATA DISCREPANCIES
Concerns have been raised about discrepancies in economic data, including inflation rates and Gross Domestic Product, or GDP figures, as well as inconsistencies between data from different government departments.
Recent differences between the export earnings data from the Bangladesh Bank and the Export Promotion Bureau have further highlighted issues with data reliability.
The chief advisor said, “Instructions have been given to publish accurate figures for all economic indicators and statistics. Directives have been issued to ensure the accurate collection, estimation, and publication of GDP, inflation and other key data.”
Yunus said efforts are under way to resolve discrepancies between the NBR and the finance ministry regarding revenue data.
“Instructions have been given for the accurate determination and disclosure of export earnings.”
To identify fake freedom fighters, particularly those who were under twelve and a half years old during the Liberation War, steps have been taken to file a leave to appeal in the Supreme Court for their removal from the list.
Necessary measures have also been initiated to recover the occupied immovable properties under the Freedom Fighters Welfare Trust.
In addition, plans are under way for the automation of the NBR and the Securities and Exchange Commission has been restructured to restore normalcy to the capital market.
