Bringing down inflation to 6% to be miracle: Mannan

Planning Minister MA Mannan thinks that bringing down inflation to 6 per cent as proposed in the national budget for the fiscal year 2023-24 will be a miracle.

The price inflation is increasing due to manipulation by traders and extortion on the roads and highways. It is difficult to bring back laundered money from abroad, he added.

The minister made the remarks on Friday at shadow parliament–UCB Public Parliament– debate event on the proposed budget organised by Debate for Democracy in Bangladesh Film Development Corporation (BFDC).

Debate for Democracy Chairman Hassan Ahamed Chowdhury Kiron presided over the event.

Mannan also said, “The target of reducing inflation to 6 per cent in the proposed budget is miraculous, almost impossible. But everyone should try to achieve the goal.”

“Due to the manipulation of a group of traders, the price of goods rises abnormally. Extortion on the roads also leads to higher prices for the consumers, which is not desirable at all,” he added.

In the proposed budget for FY24, the government has set target to bring down inflation to 6 per cent, but in May, the country’s inflation rose to 9.94 per cent, close to two digits, highest in last eleven years.

In the new monetary policy announced on Sunday to tame inflation, Bangladesh has lifted the cap on bank lending rates and raised the policy rate to 6.5 per cent.

The planning minister said that the government is trying to help marginalised people who are suffering due to inflation through providing subsidies.

The government gives subsidies taking the interests of marginalised communities into consideration. However, subsidies cannot be a long-term strategy for a country. As a result, the government has reduced subsidies on some sectors, he added.

While talking about repatriation of laundered money and project expenditure, he said, “It is difficult to bring back laundered money to the country. The money launderers did not smuggle money to bring it back.”

“In approving development projects, there are political and regional pressures that can often not be ignored. Due to these pressures, many times project cost increases,” he informed.

Regarding International Monetary Fund’s (IMF) loan, the planning minister said the organisation has given Bangladesh some advice, not any condition.

“No one is our boss, we are our boss. IMF advised the government to improve Bangladesh's economic situation, but did not impose conditions. The government takes necessary advice, considering the interests of the people of the country.”

Jagannath University debaters won the debate, defeating Green University of Bangladesh.