Measures taken to relieve pressure on forex: PM

Prime Minister Sheikh Hasina said her government has taken a number of measures such as discouraging unnecessary imports and encouraging remittance inflow to relieve pressure on reserves.

PM, in the parliament, said this in reply to a question of ruling Awami League MP Shahiduzzaman Sarker.

With Speaker Shirin Sharmin Chaudhury in the chair, the question-answer session of prime minister was tabled.

In a scripted answer, Sheikh Hasina said that the foreign exchange reserve was 32.94 billion dollars in the 2017-18 fiscal.

She said that due to inflationary pressures and post-Covid demand growth, imports have increased in the 2021-2022 financial year, creating some pressure on the trade balance.

"As a result, although foreign exchange reserves reached an all-time high of $48.06 billion in August 2022, it subsequently began to decline to cope with this pressure," she added.

The Leader of the House said the rate of decline in reserves increases when the central bank starts using foreign exchange reserves to maintain the value of taka against the US dollar in order to control inflation.

"According to the latest statistics dated May 31, the amount of reserves is 29.87 billion dollars--with the help of which the import expenses of more than four months can be met," she said.

In reply to another query of ruling AL MP Noor Uddin Chowdhury, the prime minister said that the success of her government in implementing the promises of the communication sector is now universally recognised and appreciated.

In her speech, the PM highlighted various projects and future plans in the communication sector.

She said the Ministry of Road Transport and Bridge has taken various plans for the development of the communication system of the country.

These include — the construction of 40km-long Dhaka East-West Elevated Expressway, construction of 258km subway in Dhaka city, construction of 86km long Dhaka Inner Elevated Circular Road in the city, and construction of 2.25km long bridge over Meghna river on Bhulta-Araihajar-Bancharampur-Nabinagar road in Dhaka and Brahmanbaria districts.

The future plans also include construction of 10.49km-long bridge over Tentulia and Kalabadar rivers on Barishal-Bhola road and construction of 1.59km-long bridge over Ariyal Kha river on Rahmatpur-Babuganj-Muladi Hijla-Mehendiganj road in Barisal district.

In response to a question from another AL MP Mahfuzur Rahman, Prime Minister Sheikh Hasina said that about 55,000 hectares of unused land have already been brought under cultivation.

Highlighting the various steps taken by the government in the agriculture sector, the prime minister said that as a result of the adoption and implementation of the government's agriculture-friendly policies, the production of rice, maize, potatoes, vegetables, fruits, and other crops is continuously increasing.

Bangladesh has risen to the third position in rice production in the world. Besides, Bangladesh is in the top countries in producing 22 agricultural products.

She said the government is continuing to put emphasis on the increased production in agriculture sector to deal with the current crisis.