Cabinet sets guidelines to tackle 2023 crises

Prime Minister Sheikh Hasina – in a cabinet meeting on Monday – discussed three possible crises Bangladesh may face in 2023, and gave a set of directives to overcome the upcoming economic headwinds.

The three crises are – fallout from the US Federal Reserve’s increment in interest rate, the ongoing war between Russia and Ukraine, and China’s loss of harvest due to drought. These factors will impact Bangladesh, as well as the global economic situation and food supply.

Cabinet Secretary Khandker Anwarul Islam made the disclosure at a press briefing at the Secretariat after the cabinet meeting, chaired by Prime Minister Sheikh Hasina.

These key issues were discussed at the regular cabinet meeting during the presentation of the annual reports related to the activities of the ministries and departments for the Fiscal Year 2021-22.

Quoting a report from The Financial Times, Khandker Anwarul Islam mentioned that the cabinet expressed concerns that the next year will be a year of crises, and to overcome the crises, Prime Minister Sheikh Hasina and the Cabinet provided a set of observations and directives.

Prime Minister Sheikh Hasina has directed everyone concerned to increase food production in the country to tackle any critical situation in 2023, he said, adding that at first, the production of food must be increased because problems will remain in the country despite food imports.

He continued, “The ban on grain exports from Russia and Ukraine has been lifted, but as foreign exchange is dipping, the Federal Reserve’s rate hikes are hurting countries that operate on debt or that have high imports, from both sides.”

“We have new varieties of crops, livestock, and fish which will help us increase our total food production.” The already tested varieties will be introduced within the next two or three years, which will double Bangladesh’s harvest in the future.”

Anwarul said the rice varieties BR28, BR29 yield 50 maunds of paddy per acre, but BR59 will yield about 100 maunds of paddy in an acre. “Our scientists invented new varieties of fish, and those varieties would increase fish production in the country,” he said.

He also put an emphasis on high-yielding poultry, saying the “Sonali” poultry is not from Pakistan, it is an invention of Bangladeshi scientists at the Joypurhat research centre.

The cabinet secretary further said, “We discussed issues regarding skill development of the foreign-bound workers, enhancing amenities for them and giving more facilities to the foreign investors.

“Skilled workers should be sent abroad instead of unskilled workers. Then it will be possible for them to work for better salaries and we will make our workers’ skills better as per the host countries’ requirements.”

He then pointed out that some guidelines have been introduced to increase expatriate income [remittances]. The Bangladesh Bank may issue a circular stating that no separate fee will be required for sending remittances.

The government will provide the expatriates with more amenities so that their hard-earned currencies can get home more easily.

The cabinet secretary stated that foreign investment should be increased, and for this, authorities concerned have been asked to see if the investment conditions can be made more flexible.

The Bangladesh Investment Development Authority (BIDA) will have several branches, so that a person would not have to go to the municipality or the city corporation for getting a licence. The central bank will allow [tax free] investments of up to $5 million through BIDA, he added.

“The food stock should always be kept at a comfortable level. Our stock is satisfactory now. The private sector has also been allowed to import 15 lakh tonnes of food”, Khandker Anwarul Islam said.

The cabinet secretary stated, “Tax comfort has been also discussed in the cabinet meeting. Our minister of food and commerce, and state minister for power have discussed some issues related to tax at source. Those have to be paid.

“The National Board of Revenue (NBR) has also been directed to be flexible on certain taxes on food imports. It will be fixed through a satisfactory and comfortable provision after discussion soon, so that the food importers can get a bit more convenience.”