Not gloomy, but it is challenging

Finance Adviser Dr Salehuddin Ahmed said Thursday that the economic situation in Bangladesh is not gloomy, but it is in a challenging position.

At the same time, he acknowledged that the gross domestic product (GDP) growth may slow down to 3.8 per cent at the end of this fiscal year as projected by the International Monetary Fund (IMF).

Additionally, he admitted that the point-to-point inflation rate could reach 11 per cent by fiscal year-end. "We don't want to manipulate statistics like in the past," Mr Ahmed told newsmen at his secretariat office.

The finance adviser expressed the hope that the central bank will bring down the inflation rate to 8.0 per cent by December.

When asked if the proposed dearness allowance for public sector employees will fuel inflation, he answered in the negative.

"The private sector employees are not starving," he said in response to another query.

About the next budget, he said, "We want to place an implementable budget. We don't want to exert tax pressure on the public improperly."

At the finance adviser's office, Power and Energy Adviser Muhammad Fouzul Kabir Khan told newsmen that the IMF requested the government to raise electricity price to lower subsidy expenses.

"But we said that people are under pressure due to high commodity prices. We won't raise price," he said referring to his talks with the IMF officials. "Instead, we told them that that we'll cut expenditure in the power sector," he said.

Mr Khan said industrial consumers will have to provide at least the procurement price for gas. "The BERC will fix a new price for the new customers."

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