A government-formed taskforce to reframe development strategies for the economy is likely to submit its first report this week with focus on some key aspects, including containing inflation and bridging digital divide.
The 12-member taskforce formed on September 10, 2024, headed by Dr KAS Murshid, would work in the next two years to redesign economic strategies for Bangladesh.
It is likely to place a proposal on building a buffer stock of diesel, fertilizer and other essential commodities to help people not to face any sudden shock on price escalation.
Chief of the taskforce Dr KAS Murshid, former director-general of the Bangladesh Institute of Development Studies (BIDS), says there is no short-term remedy on containing inflation, 10.89 per cent in December 2024, overnight in the existing situation.
"If we had established some countervailing power, we could have built reserves for key products such as diesel and fertilizers, enhancing both energy and food security," he adds.
Major problems are to ensure efficiencies on supply side, especially for rice, edible oils, energy, urea fertilizer, diesel, etc, he points out.
A policy could be framed to build the buffer stock focusing on food and energy security, suggests.
"We are focusing on low-hanging fruits -- initiatives that can deliver short-term results," says Dr Murshid.
Some of their recommendations have been prepared in a manner to enable the interim government complete within its tenure while some could be initiated for completion for the next political government.
Involving youth and citizens' group is important to carry out the reforms, he said, preferring some sort of activism to pursue the next government.
"We have held several consultations with youths and citizens groups. It was missing dimensions," he added.
Another aspect is behavioral changes where awareness campaign is needed.
During each of the consultations, investors have expressed concern, in some cases agony, due to policy inconstancies of the government, he said.
Services provided by the National Board of Revenue (NBR), including obtaining different permissions, also observed as one of the major hindrances by the foreign and local investors.
Iqbal Chowdhury, first Bangladeshi Chief Executive Officer (CEO) of LafargeHolcim Bangladesh Limited, demanded a long term policy strategy including direct and indirect taxation to give a holistic view to investors including foreign investors.
"Unfortunately, we see lack of willingness to address the issue in a systematic manner. This time, government did not even consult the changes with industries and trade bodies," he said.
"Any changes need to be properly consulted along with impact assessment to avoid misunderstanding amongst the industry and the consumer," he said.
Increasing duty and tax will enhance more leakage and evasion due to lack of proper infrastructure to detect the transactions, he added.
Dr Murshid said there will be some specific recommendations on immediate reforms of the entities providing public services.
For this, adoption of technology or ICT technology thrust is important.
Cost of ICT, mobile talk-time, internet has been increased with the recent hike in VAT and Supplementary Duty (SD).
Dr Murshid feels that the prices of technology must go down.
"I hope it would be a shortsighted step. Though not logical, but there might be some reason or reality. I expect it would be fixed in the next budget," he says.
A significant emphasis is being placed on technology, which influences every sector and is critical in the emerging global landscape.
Energy is addressed in a dedicated chapter in the taskforce report.
"We must also prioritize renewable energy. Solar power presents a promising avenue, despite misconceptions about land availability," he notes.
Many lands, including tea estates, could be utilized for solar projects.
Tea-estate owners have expressed willingness to utilize such lands for solar energy, provided they receive approval, he said.
"Wind energy also holds potential but is limited to coastal areas and remains costly. Hydropower, in contrast, is currently unfeasible domestically or through imports from Nepal or other countries, mainly due to geopolitical constraints with India. Liberalizing policies in the future could change this."
Taskforce member on (digital economy) Fahim Mashroor, CEO of bdjobs.com, says the taskforce's focus spans key areas of the economy, including foreign investment, unemployment, agriculture, health, and the digital economy.
"To date, we have conducted 25 to 30 consultations, engaging both public and private sector representatives. However, we currently have no plans to hold a media consultation."
The taskforce has covered some new areas such as the blue economy and social campaigns.
The focus of the report spans multiple sectors and subsectors, including agriculture, industry, manufacturing, and cross-cutting themes like economic governance and institutional governance, which are given the highest priority.
"Additionally, gender and education aspects are integral to our analysis."
Other members of the taskforce are former World Bank official Akhtar Mahmood, Professor of Dhaka University's Economics department Dr Selim Raihan, former head of the research department of Commonwealth Secretariat Dr Abdur Razzaque, Professor of Yale University's Economics Department Dr Mushfiq Mobarak, Professor of BUET Dr Shamsul Haque, Professor of Dhaka University's Economics department Dr Rumana Huque, former president of MCCI Syed Nasim Manzur, Research Director of BIDS Dr Monzur Hossain, Executive Director of CPD Dr Fahmida Khatun and former Member (Secretary) of General Economics Division of the Planning Commission Dr Md Kawser Ahmed.
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