Govt forced to keep its hands on triggers 

The government is forced to keep its hands always on triggers to keep the prices of essentials under control, Planning Minister M A Mannan said on Wednesday.
He apparently explained the government’s latest stance to curb rocketing onion prices that yielded an instant result from, what he said, a market having deep distortion in buying and selling prices, and a production system with hardly any fairness.
Speaking as the chief guest at a post-budget discussion, the minister requested his cabinet colleagues in charge of commerce and agriculture to keep their hands always on triggers.
He pointed out that no steps could tame the rocketing prices of onion, but it came down significantly immediately after giving clearance to import.
The Economic Reporters’ Forum (ERF) and the Research and Policy Integration for Development (RAPID) jointly organised the event at the ERF office in the capital.
ERF president Refayet Ullah Mirdha chaired the event, moderated by its general secretary Abul Kashem.   
On the proposed budget, Mr Mannan said the inflation target of 6.0 per cent for the next fiscal year (FY) would be very tough to attain, yet the government will try to keep commodity prices under control.
He admitted that the country is passing through a tough time while the world economy is facing serious ups and downs and the people are in severe stress too.
The government has increased allocations for social safety net programmes and subsidies for agriculture and food, which are good for the people.
Speaking as the special guest, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin expressed concern that the interest rate hike on bank loans would not help contain inflation rather would discourage investment.
“It is not correct that the interest rate hike will help reduce inflation … whenever the interest rates went up, the investment fell,” he added.
Presenting a keynote on the proposed budget, RAPID chairman Dr Abdur Razzaque said the budget was unveiled against the backdrop of a formidable inflationary and foreign exchange reserve pressure.  
He said that strict import control measures in the face of depleting forex reserves have contributed to inflationary pressure further.
The new budget has a high growth target and usual fiscal deficit, but there is no direction for demand management, he added.
Ferdaus Ara Begum, chief executive officer of the Business Initiative Leading Development (BUILD), Dr M Abu Eusuf, executive director, RAPID, Shawkat Hossain Masum, head of online at the Daily Prothom Alo, and Kazi Faisal Bin Seraj, country representative, the Asia Foundation, also spoke at the event.

syful-islam@outlook.com