Dhaka: Chief Adviser Professor Dr Muhammad Yunus expressed optimism that inflation will decrease to 6 percent by December, highlighting that controlling inflation remains the biggest challenge for his interim government. ‘Due to the fragile economy and floods, food inflation was about 14 percent. Now it has come down to half. We hope that it will come down to 6 percent by December,’ he stated in a televised address marking the July Mass Uprising Day.
According to Bangladesh Sangbad Sangstha, Prof Yunus elaborated that the interim government faced immediate challenges upon taking office, including a severe flood situation in the southern and northern regions that devastated crop production. This initially sparked fears of a surge in prices for daily necessities. However, these fears were mitigated through proactive measures by institutions and authorities, which included monitoring markets and curbing the influence of middlemen. The market has remained stable since the holy month of Ramadan this year.
Prof Yunus noted that overall inflation in the country dropped to 8.48 percent this June, the lowest in 35 months, marking a consistent decline over the past four months. He attributed this trend to the confidence of expatriate Bangladeshis in the interim government, which also contributed to stabilizing the forex market.
Highlighting economic achievements, Prof Yunus reported a record $3033 crore in remittance through banking channels in the last fiscal year, alongside a 9 percent increase in export earnings. This has led to a strengthening of the taka against the dollar. Over the past 11 months, the country has made significant payments amounting to $4 billion in interest and principal to foreign lenders, while foreign exchange reserves continue to rise even after settling previous debts.
The Chief Adviser emphasized initiatives to boost foreign investment, revealing that Taka 10,500 crore in foreign investment was secured in the first quarter of this year, more than double the amount from the same period last year. From October last year, foreign direct investment reached Taka 16,500 crore over six months, doubling the figures from the previous government’s tenure.
Employment generation is a key goal for the interim government. Prof Yunus shared that the Hong Kong-based Handa group plans to invest $250 million in Bangladesh’s textile and ready-made garment sector, creating jobs for 25,000 people. He believes this investment will attract more Chinese companies to the country and open up opportunities for the youth.
Prof Yunus also addressed efforts to recover money laundered over the past 16 years, with foreign law firms engaged in legal proceedings to reclaim assets taken abroad. Some financial assets have already been seized, and continued efforts could yield further positive outcomes.
He advocated for a fundamental shift in economic strategy, emphasizing the potential of the country’s water resources. Prof Yunus proposed developing a ‘water-based economy,’ utilizing resources from the Bay of Bengal, which exceeds the country’s land area. He stressed the importance of considering the Bay as a valuable national asset and exploring its fish and gas resources.
The interim government is reworking the management of Chattogram Port, with the Bangladesh Navy’s Dry Dock Limited now managing the New Mooring Terminal Container. This change has led to handling an additional 225 containers daily. Prof Yunus sees the modern development of this port as benefiting not only Bangladesh’s economy but also those of Nepal, Bhutan, and neighboring regions.
He highlighted the economic potential of the coastal region from Kumira to Teknaf, which could serve as an economic hub in South Asia. Discussions are underway with friendly nations to ensure the sustainable use of sea and coastal resources, with plans to develop industries in fish farming, collection, and processing to create jobs and invigorate the economy.