No fallout for macroeconomy from Ukraine crisis: Kamal

FE Team | Published: March 29, 2022 00:07:11

Finance Minister AHM Mustafa Kamal on Monday told Parliament that the Russia-Ukraine crisis does not right now threaten the country's macroeconomic stability, even though it generally affects the economy, reports UNB.
"The Russia-Ukraine military crisis is going to hit Bangladesh's economy in the short and medium terms. What will be its impact in the long run depends how long the war and the evolving crisis prolong," he said replying to a question from Awami League MP Shafiul Islam (Dhaka-10).
Earlier in the afternoon the 17th session of the House opened with Speaker Shirin Sharmin Chaudhury in the chair.
"At this moment, it seems that the crisis will have an impact on the economy of Bangladesh, but it will not put the stability of the country's macro-economy at a great risk," the finance minister said in his scripted answer.
He said Russia's military operation in Ukraine and the economic sanctions imposed by the western countries on Russia and its ally Belarus will have an adverse impact on the global economy.
Mustafa Kamal said the crisis has destabilised the furnace oil and natural gas markets. "The Russia-Ukraine crisis has affected Bangladesh as well," he added.
He said the ongoing military crisis and sanctions would inevitably lead to a rise in prices of natural gas, crude oil, fertilisers, wheat, nickel, aluminum and important raw materials for electrical products and related finished goods.
He said this price-hike will definitely push up global inflation. The rise in oil and gas prices could lead to higher inflation in the country as food, consumer goods, industrial raw materials and international transport costs increase, he went on.
This crisis could also complicate payments for Bangladesh's garment exports to Russia, said the finance minister.
FE Report adds: Some parliament members from Bangladesh Nationalist Party (BNP) came down heavily on the government on Monday during the parliament session for the soaring prices of essential commodities.
On a point of order, Jatiya Party Secretary-General Mujibul Haque Chunnu slammed the government over the price rises, saying: Why rice prices have gone up so high in the market?"
He went on: " … it seems there is no government in the country as the government has no control on the market."
BNP lawmakers Harunur Rashid and Rumeen Farhana were bitterly critical about the prevailing price spiral of essential commodities and other.
However, refuting their remarks, Information Minister Dr Hasan Mahmud said prices of essential items, including onions, have come down recently following distribution of 10 million VGF cards for the poor.