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Prime Minister Sheikh Hasina on Wednesday said the conflicting situation in the Middle East could affect the social, political and economic sectors of Bangladesh like elsewhere in the globe.
“It can be assumed that the conflicting situation in the Middle East will affect the social, political, and economic aspects of Bangladesh as well as the whole world. This conflict may have some effect on the country's economy,” she said.
She made the remarks while responding to a question from Chapainawabganj-1 MP SamilUddin Ahmed Shimulduring the PM’s question-answer session in parliament, reports UNB.
In particular, the prime minister said that due to the instability of the world market, inconsistency in market management and the increase in global fuel prices, there remains the possibility of a rise in inflation slightly.
In addition, she said that the disruption of the commodity supply chain due to the conflicting situation may increase transportation costs related to exports primarily to Iran or neighbouring regions.
“For this, exporters may face tougher competition as the cost of manufacturing and supplying products increases,” she said.
The Leader of the House said that in this situation she has directed all ministries and departments of the government to keep an eye on the ongoing events in the Middle East and determine their course of action.
“I have given instructions to make necessary preparations, especially considering that this conflict might be prolonged as well as its impact over the sectors,” she said.
She, however, admitted that there is uncertainty regarding the magnitude of this conflict and its economic impact.“The government will take necessary measures in this regard,” she said, adding that Bangladesh is against all forms of conflict.
“We believe in the path shown by the Father of the Nation and the principle which is friendship to all, malice to none,” she said.
‘Prices up, but rural people in better shape’
The prime minister on Wednesday also admitted that prices of essentials have increased, but rural people who produce their own foods are not facing much hardship.
“Yes, prices have increased and this affects. Especially those with limited income are suffering. However, there is not much hardship for those in the village who can produce for themselves. There is no outcry from them. Still, our best efforts are on to keep commodity prices under control,” she said.
She said the state-run Trading Corporation of Bangladesh is providing services to the people with their existing manpower.“And we are taking measures keeping in mind that common people do not suffer.”
She mentioned that the government has taken appropriate steps to produce the required products in the country.“We are also importing. No matter how much money it needs, we are spending and also putting pressure on our reserves.”
Replying to another question from Independent MP Abul Kalam from Natore, the prime minister said that the government is continuing all kinds of activities to keep the prices of daily necessities normal. “We have been able to contain abnormal rise in the prices of consumer goods.”
She said that the pressure of imported inflation is felt in the country due to the increase in the prices of some products in the world market such as fuel oil, edible oil, wheat, mustard, various food products, consumer goods and industrial raw materials.
She also said that the recent fall in the exchange rate of the taka is having an adverse effect on domestic inflation.“In this case, the crawling peg based currency exchange policy will soon be adopted to bring stability to the foreign currency exchange rate," she said.
She hoped that this corridor-based system is expected to prevent abnormal fluctuations in foreign exchange rates. As a result, it will also help in controlling inflation.
