War, Covid may strain balance of payments

Prime Minister Sheikh Hasina on Wednesday said the COVID-19 pandemic and the Russia-Ukraine war may have a negative impact on country's balance of payments, reports UNB.
She was replying to a tabled question from Jatiya Party MP Mashiur Rahman Ranga during PM's question-answer session.
She also cited the weak growth of world economy, disruption of the supply chain, increase of cost of fuel oil, gas, food products, consumer goods, industrial raw materials and international freight cost in the global market, decline in exports, negative growth of remittances as among the factors behind a possible negative impact on Bangladesh's balance of payment.
Hasina, also the leader of the House, said her government has demonstrated remarkable success in keeping both the budget deficit and debt levels at sustainable and bearable levels for the past 14 years.
She said that it has been possible to keep the budget deficit within five per cent of GDP despite various domestic and international economic problems including the Corona pandemic situation.
The debt and GDP ratio is also at the comfortable level, she added.
She also said that at the end of 2021-22 fiscal year, debt and GDP ratio was 34 per cent, which is well below of the internationally recognised debt status threshold for Bangladesh.
She also highlighted various steps of the government to deal the situation.