Rampant inflation, corruption, inequality, money laundering and anarchy in the banking sector have destabilised not only the economy but also the state and society. The country’s past economic achievements are now in jeopardy, and people must unite to change this reality.
Speakers made the remarks at a discussion titled “Reality of Bangladesh Economy: Crisis and Ways of Transition,” organised by the Workers Party of Bangladesh at the city’s National Press Club on Saturday.
Bangladesh Workers Party President Rashed Khan Menon chaired the meeting, while former president of Bangladesh Economic Association and retired professor of Economics at University of Chittagong Muinul Islam presented the keynote.
Muinul said, “Several critical issues are plaguing Bangladesh's economy over the past two years. These include a dangerous decline in foreign exchange reserves, rampant inflation, stagnation in formal remittance inflows due to the hundi system, and a shortage of USD for opening LCs.
“Taka has sharply depreciated, with the USD rising from Tk 87 in 2021 to Tk 127 in May 2024. Additionally, over-invoicing in imports, under-invoicing in exports, massive capital smuggling, and a significant increase in bank loan defaults are compounding our economic challenges.”
He added, “The inaction on corruption and capital flight, coupled with the prioritisation of low-need mega-projects, has exacerbated the situation.”
Despite these severe problems, Muinul believes they are not insurmountable if addressed promptly and effectively.
“Due to mismanagement under the former finance minister, five lakh crore taka worth of bank loans have defaulted while defaulters are granted concessions to hide their names. This mismanagement has allowed a significant defaulter to become an adviser to the Prime Minister, with no progress in recovering defaulted loans over the past five years,” he says.
Muinul calls for an immediate change in government's stance on bad loans, money laundering, the hundi system, and corruption. He emphasises the urgent need for strict action against "willful defaulters" and better management of bad loans.
Rashed Khan Menon said, “This crisis of the country's economy can never be reduced if the corruption and tyranny of politics is not reduced. The people of this country are paying the price of the dollar crisis.
“As a result inflation is happening. People have to pay extra tax. Meanwhile, people's families are not running. Syndicate is the major problem of Bangladesh, it is everywhere. But there is no effort to stop them from the government side.”
He added, “The economic policies we are running are concentrated in the hands of the rich, military-civilian bureaucrats and a handful of businessmen.”
Workers Party Politburo Member Dr Susanta Das also spoke in the discussion meeting among others.
