Economy under stress owing to crisis in banking sector: CPD

The economy has come under pressure owing to crisis in the banking sector, inflationary pressure, soaring import against the backdrop of inadequate export earnings and remittance inflows, said the Centre for Policy Dialogue (CPD) today.

The think-tank said banking sector has been suffering from ‘cronyism’.

Disorderliness, irregularities as well as embezzlement of public funds are going on in collusion with influential persons and their patronages, it said.

“We do not see any prospect of turnaround in the banking sector as the appetite for reforms remains low during the year ahead of election,” said CPD Executive Director Fahmida Khatun at a press briefing at the CIRDAP auditorium in Dhaka.

She said economies of countries such as Indonesia and Argentina suffered for problems in financial sector.

“It needs to be seen if we are going to that direction,” said Fahmida at the event organised by the CPD to present the report under its programme, Independent Review of Bangladesh’s Development for the first fiscal in the fiscal 2017-18.

The report, presented by CPD Research Fellow Towfiqul Islam Khan, said income and wealth inequality has risen despite 6.5 percent average annual economic growth in the years between 2010 and 2016.

The rate of job growth and poverty reduction has declined at a slower pace during the period than between 2005 and 2010. The pace of decline in poverty has not dropped equally throughout all the regions, said Towfiq.