Plan mid-term, long-term to cure economic ills: CPD exec director

The country's top think-tank Centre for Policy Dialogue (CPD) recommended taking up mid-term and long-term measures as it thinks the existing economic crisis will not be short-term.
"The ongoing crisis is not short-term in nature, therefore, it may continue for two to three years," said Fahmida Khatun, executive director of the CPD.
Ms Khatun said this at a meeting held at CPD office in the capital's Dhanmondi.
She said the current government's measures are mostly short-term in nature.
"An effective and innovative long-term action plan is to be required to tackle the situation as impact of the crisis may continue for long time," she said while placing presentation on its latest independent review of Bangladesh's Development (IRBD) report titled "Recent Challenges Facing the Bangladesh Economy: A Brief Overview".
According to the International Monetary Fund (IMF), there may be an economic crisis in 2023 as well, and the situation in Sri Lanka has been mentioned as worse, Dr Fahmida said.
Though the position of Bangladesh is somewhat better, it needs to be cautious, and have to take long-term steps, she added.
She said at present macro stability in the medium term should get priority.
"We need to find out effective instruments on austerity measures which would be able to ensure macro stability," she said.
Dr Fahmida Khatun said the measure should include stable forex reserve, inflation management, enhanced revenue generation, ensuring electricity and gas supply for economic activities, and extended social safety net programmes.
Former governor of Bangladesh Bank Dr Salehuddin Ahmed said central bank decisions are taken by vested interest groups.
"Loan re-scheduling without proper monitoring and deferred loan repayment would create a liquidity crisis and discrimination in the business sector," he said.
Criticising the decision of the new governor of the central bank, he said, "The decision is unprecedented."
"What is the point of implementing Basel 1, 2 and 3 if the governor takes decisions in a hotel room," he questioned. He also warned about the bad impact on macroeconomics due to the central bank's policy influenced by the vested group.
The former governor said the biggest problem in the country is governance and it is deteriorating day by day.
The small entrepreneurs have been deprived of stimulus packages, and loans rescheduled and deferred repayment facilities, he said.
Mr Ahmed said the government should take opinion from people while making a decision, unless people will not stand beside the government during a crisis.
Salehuddin said dollar selling by the central bank is not a solution to the forex crisis.
"Cautionary measures on luxury goods import and limit cut to keep money in the Nostro Account are needed to overcome the forex crisis," he said.
Former advisor of caretaker government Hossain Zillur said the country is entering into deep injustice, specially for lower-middle and lower income people.
He said an 'iron triangle' of unilateral development policy, conflict of interest driven economic system and subsequently injustice for low income group continue in the country.
He said a big push with political will and political thought only can change this situation. The former advisor said the new 30 million poor is the result of such a political and social system.
He hears that this situation will be obstructive to achieving sustainable development goals (SDGs).
He said the government should take effective measures to curb the growing inflation before social instability at the grassroots is created. Mr Rahman said in many countries social discrimination and food inflation created instability and famine.
"Early and long-term measures are required to avert any such untoward situation in Bangladesh," he added.

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