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Bangladesh facing major macro-economic challenges

Dr. Sadiq Ahmed tells MCCI event

FE REPORT | May 15, 2024 00:00:00

Depreciation of Taka, persistent higher inflation, and low revenue growth remain major challenges for Bangladesh's economy at present.

Besides, a fall in the forex reserves is the country's another macroeconomic concern.

These were the views expressed by an eminent economist, Dr. Sadiq Ahmed, during his keynote presentation at a discussion titled 'Stabilizing the Macroeconomy of Bangladesh: Issues and Challenges'

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) organised the discussion programme at its office in the city's Gulshan area on Tuesday.

"Bangladesh's four major macroeconomic concerns are import surge leading to reserve losses, the depreciation of the Taka, persistent inflation, and low domestic revenue growth because of external shocks," said Dr. Sadiq Ahmed, Vice Chairman of Policy Research Institute of Bangladesh (PRI).

The factors were impeding the country's overall growth and development, he said.

Referring to Bangladesh having one of the lowest tax-GDP ratios in the world, Dr. Sadiq advocated a focused, medium-term tax reform programme.

He also highlighted effective ways to tackle the inflationary pressure as well as balance of payments and budgetary challenges that the country was facing.

In his speech, MCCI President Kamran T Rahman stressed that stakeholders and policymakers must have a comprehensive understanding of how multiple factors collectively shape economic dynamics.

He said it could help create strategies for economic stability and growth.

Other participants discussed different economic issues including the challenges of non-performing loans, tax leakage, fiscal, banking, and trade reforms, and the need for a transparent and easily understandable tax policy.

Secretary-General and CEO of MCCI Farooq Ahmed moderated the event.

Representatives from the MCCI member firms and other stakeholders also attended the event.

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