Ensuring a strong coordination among economic policies and indicators is a must for keeping the economy stable, businessman and BNP politician Abdul Awal Mintoo said on Monday.
Macroeconomic indicators, including inflation, are changing constantly and they are connected as well as inseparable, he said.
"Therefore, when the government wants to achieve a goal with a specific indicator, such as quick gross domestic product (GDP) growth or containing inflation, all other indicators should also be taken into consideration," said Mintoo, a former president of the Federation of Bangladesh Chambers of Commerce and Industry.
He came up with the remarks while discussing the country's overall economic situation at a session titled "Current Business and Economic Scenarios: The Way Forward" and organised by the Economic Reporters' Forum at its office in the city's Paltan area.
Mintoo said whenever a synergy is missing between economic policies and indicators, it affects the overall economy, while investments are also deterred.
The current private sector credit growth remains stunted at around 8 per cent only, which indicates a downtrend in investment, he also said. "This is affecting employment generation, and the country faces trouble with a huge number of unemployed people."
Underscoring the need for economic stability in the country, he said GDP growth without employment generation creates long-term negative impacts on the economy, adding there was a practice of showing exaggerated economic data during the last regime.
"An analysis of the country's current economic status reveals that the last government turned autocracy, arbitrary rule, partisanship, and giving undue facilities to party members into state rules and regulations," said Mintoo, adding such practices led to the collapse of institutions and regulatory bodies.
All these - the market system and economy - are connected, though there is a common notion that the economy is separate from other matters, he said.
He also criticised the Bangladesh Bank, saying it changed its role to a party organisation in the last one decade through different means, including undue preparation and implementation of monetary policy.
"The last government showed flawed data in different economic indicators that made the country's real economic status questionable to stakeholders at home and abroad," said Mintoo, chairman of National Bank.
For mostly political reasons, the previous government also borrowed from foreign sources beyond what is standard for a country, he noted. "The government violated economic policies to show off economic development."
According to him, a democratic government is crucial for ensuring a country's desired economic progress.
"Now we need a regular government, which will be accountable to the people," Mintoo said, adding a government of the people adopts infrastructure development projects keeping citizens' demands in mind.
The Karnaphuli tunnel project is an example of abusing public money by the previous government, which did not have people's consent, he said.
Highlighting the need for restoring democracy in the country, he said a free and fair election - at least announcing a roadmap to hold such an election - is essential.
Responding to a question, Mintoo said he does not support the closure of any productive business because an organisation is not responsible. "The people who are responsible for irregularities and corruption should be brought to book, not businesses."
He feared a further increase in default loans as a number of businesses are struggling to repay their loans. "This is because they cannot run their operations smoothly as the law and order situation is not fully in favour."
Speaking about freezing bank accounts of businessmen, he said the agencies concerned should follow the due process to do so, if required. When asked about becoming an influential person like Salman F Rahman, he said, "I will never become a dervish. I even had more power than him."
Mintoo also said he never had business relations with the government, adding businesses remained independent.
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