Economic indicators show signs of recovery

Various economic indicators of the country are improving as the banking sector has already seen the return of discipline, Chief Adviser Prof Muhammad Yunus said yesterday.

Now, the biggest challenge for the government is inflation, he said in his address to the nation marking the Independence Day and the upcoming Eid-ul-Fitr festival.

The chief adviser's comments come as inflation, a measure of changes in the prices of a basket of goods and services purchased by consumers, has remained above 9 percent for two consecutive years.

However, in the past three months until February, inflation eased. In February, it dropped to 9.32 percent -- the lowest in 22 months -- from 9.94 percent in January.

The chief adviser said the government has decided to dissolve the NBR and form two separate bodies: one for policymaking and another for implementation

Yunus expressed hope that inflation would fall below 8 percent by June this year.

In his address, the chief adviser also mentioned various steps his government has taken to revive the economy, restore confidence in the banking sector, bring back laundered money from abroad and implement reforms.

He said that, based on recommendations from the advisory committee on revenue reforms, the government has decided to dissolve the National Board of Revenue and form two separate bodies: the National Revenue Policy Board for policymaking and the National Revenue Collection Department for implementation.

"This will prevent favouritism in tax evasion, ensuring that no preferred individuals evade billions in revenue. I hope future governments will maintain this policy," he said.

Yunus said the deposed Sheikh Hasina government had left behind a shattered economy. The interim government has since undertaken various initiatives to restore economic stability.

"Our expatriate brothers and sisters have provided relief to the country's devastated economy," he said, adding that remittance inflows had increased consistently.

In February, remittances hit a record high, rising nearly 25 percent to $2.5 billion.

Yunus termed migrant workers "remittance warriors" and said, "It is our responsibility to simplify procedural issues for them and ensure that embassies function properly, so they do not face difficulties. We are also working to ensure they can exercise their voting rights in the next election."

Since assuming the office in early August last year, the government has increased exports by 13 percent, said the chief adviser. 

He said container handling rose by 7 percent in January. Meanwhile, the Bangladesh Investment Development Authority (Bida) has begun addressing common investor concerns, such as licensing requirements and repatriation laws.

Bida is hosting a four-day international investment summit in Dhaka in April, where many renowned investors will participate.

During the fugitive government's rule, Yunus said banks had been seized like "occupied territories".

"Depositors' money was turned into their personal wealth."

He said restoring public confidence in the banking sector was one of the interim government's primary tasks.

"Confidence in the banking system has been re-established, leading to the return of discipline in the economy. This is one of the significant achievements of the interim government."

The chief adviser said $234 billion had been laundered abroad during the previous government's 15-year rule.

"The ways this money was smuggled out are shocking. One of the most astounding methods was through payments for children studying abroad."

One individual officially transferred $33.3 million for a single semester's expenses, he added.

"The extent of money laundering was beyond imagination. When looting becomes institutionalised, such things become possible. Efforts to bring these money launderers to justice have already been intensified internationally."

Yunus said the interim government has been regularly meeting with top global investors who are highly interested in investing in Bangladesh under the current administration. "We expect to see new foreign investments very soon."