New Year: Time to build future on sacrifices

Celebration of a New Year is at the same time the swansong of the year that was and welcoming the year that has begun. So, one would like to ask which events left significant impacts on public life in the past year. Apart from the political event of the fall of Sheikh Hasina's authoritarian regime at the height of a student-led popular uprising on August 5 that jolted public life heavily, the day-to-day experience of the common people was more of the same. For there was no respite from the ever-escalating prices of basic commodities, while the ordinary consumers' woes worsened further by the double whammy of stagnant income whose real value was constantly eroding, thanks to the falling value of Bangladesh Taka (BDT) against US dollar due to volatility of the foreign exchange market.

Another macroeconomic indicator, the inflation rate, on the other hand, hovered between 9.0 per cent and 11.66 per cent in the outgoing year despite a contractionary monetary policy pursued by the central bank, the Bangladesh (BB). The foreign exchange reserves also remained under stress, while the pressure on external account continued as export performance was not enough to enhance the inflow of US dollars up to the expected level. Private investment did not pick up in the past year as import of raw materials and capital machinery for the industry was lower than usual. This production slowdown in turn negatively affected the prospects of employment generation in the country. And as the domestic demand declined due to erosion of the common consumers' purchasing power, it contributed to stultifying industrial growth. Add to it the drop in the growth of private credit as the tightening policy made fund costlier.

The banking sector crisis fuelled by the destruction of the financial sector through rampant looting of banks by Sheikh Hasina's henchmen and crony oligarchs persisted throughout the better part of the past year. Also, let us not forget about the non-performing loans (NPLs), a pernicious burden on the economy that has been holding back its growth surged further to a multi-year high at around 17 per cent of the total outstanding loan in September last year. Amid so many not-so-reassuring pieces of news, there is also the positive one of the increase in the foreign remittance inflow following the August 5's political changeover. And, amid various factors including July uprising, floods and tighter monetary policies, according to the multilateral lending agency (IMF)'s estimate, the economic growth in FY25 will be 3.8 per cent, lowest in 5 years since FY2020. At the same time, it (IMF) predicted that the annual inflation in 2025 would be around 11 per cent. However, the inflation rate might finally decline to 5 per cent in FY26, it was hoped. Against this backdrop, the primary task before the interim government that took power on August 8 following Hasina's ouster and flight to India, would be to make all-out efforts to address the persisting economic woes in 2025. Most importantly, the ordinary public, who made supreme sacrifices to replace the old oppressive order with the present one, is looking up to the incumbent interim government to address at least the issue of runaway price hike of essentials and bring it down to their relief.

The August revolution that brought the interim government would lose its relevance, if it fails to deliver. The average person is watching as so far the performance of the interim government could not make its mark. Even so, people are eagerly waiting to see the interim government succeed and celebrate the revolution.

Happy New Year.