The rich became richer in Bangladesh as their income increased by 64 per cent during the Covid-19 pandemic period between 2019 and 2022.
The study showed the income of higher middle-income groups increased by 25.5 per cent while by 8.8 per cent for lower middle-income groups and 10.2 per cent for the poor and 16 per cent for the ultra-poor.
It has been revealed in a study report of the Bangladesh Institute of Development Studies (BIDS). The disclosure came in the BIDS Research Almanac held on May 17-18 in the capital, Dhaka.
In response to the study report, Prime Minister’s Economic Adviser Dr Mashiur Rahman said despite income inequalities between higher and lower income groups, government service consumption did not widen. He attended the closing ceremony as the chief guest.
He said all the groups are getting access to public services including health, education, electricity, and other sectors.
Regarding employment, Dr Mashiur said employment is not increasing as the academic lessons and employers’ requirements are not matching, so the issue should be resolved by reforming the education system.
The event’s special guest state minister for planning Dr Shamsul Alam said income inequality is getting narrower in rural Bangladesh as an outcome of government policy to generate employment in the rural areas during the Covid-19 pandemic period.
Maximum people in villages are getting pure drinking water, sanitation, healthcare, education, better road communication, and other facilities, he said.
Bangladesh Bank (BB) Governor Abdur Rouf Talukder, also the special guest, said banks are opening letters of credit (LCs) between 1500 to 2500 every day.
He said the central bank is looking into all of these to check over and under-invoicing or trade-based money smuggling.
“The central bank is encouraging sending inward remittance in the banking channel. The BB is working to develop a system so the expatriates from any country could send their remittance from their mobile phone easily through the legal channel,” he added.
The governor said private sector’s foreign loan was $ 17 billion in the last fiscal year, which now stood $14 billion, and the foreign exchange demand soared because of the repayment of these loans.
He said the central bank will go for a single exchange rate soon and work in this regard is progressing.
The Director General of BIDS Dr Binayak Sen moderated the programme. Prominent economists Prof Mustafizur Rahman, distinguished fellow of CPD, Ahsan H. Mansur, Executive Director of PRI, Dr Abdus Sattar Mondol, former VC of Bangladesh Agriculture University, Prof Muhammad Mahboob Ali of Dhaka School of Economics, Abul Kashem Md Mohiuddin, secretary IMED also spoke as panelists.
