Dhaka: Finance Adviser Dr Salehuddin Ahmed today stated that the country’s macroeconomy is now in a stable state, though not completely. “Our capacity, macroeconomic stability, and balance are more or less stable, although the current account balance and financial account were negative a few months back,” he said. Dr Salehuddin made these remarks at a views-exchange meeting on ‘The role of remittance in Bangladesh’s economy,’ held at the media center in Bangladesh Secretariat.
According to Bangladesh Sangbad Sangstha, the Finance Adviser highlighted that due to a good inflow of remittances and export earnings, the current account balance and financial account are now showing positive signs, contributing to the restoration of stability in the macroeconomy. The meeting was jointly organized by the Bangladesh Secretariat Reporters Forum (BSRF) and Taptap Send.
The session was presided over by BSRF president Fasih Uddin Mahtab, with its general secretary Masudul Haque moderating the event. Taptap Send coordinator Mahmud Monir also spoke at the meeting. Dr Salehuddin noted the dual approach of many economists in the country, who advocate for increased revenue mobilization while simultaneously calling for reduced taxes and VAT. He pointed out that the tax-GDP ratio in Bangladesh remains very low.
The Finance Adviser highlighted the significant remittances received, amounting to more than $2 billion monthly. He emphasized that confidence among expatriates has been restored, with the majority now opting to send money through official banking channels rather than informal ones. Dr Salehuddin also addressed the skill gap among Bangladeshi expatriates, many of whom are unskilled and employed in low-tier jobs compared to their counterparts from countries like India, Sri Lanka, and Pakistan.
He stressed the importance of providing necessary training to job seekers aiming to work abroad. This, he suggested, would enhance their earning potential and contribute positively to the economy. Dr Salehuddin further highlighted the challenge of expatriates not utilizing their earnings productively, often spending on non-productive ventures like constructing buildings without considering sound financial returns.
Dr Salehuddin also called for the transparent deployment of skilled workers abroad to ensure they lead decent lives. He acknowledged past policy failures and efforts to rectify them, expressing the interim government’s intent to leave a positive legacy for future administrations, despite not being able to implement all reforms.
He addressed the issue of VAT, explaining that while reductions have been made on some items, further reductions could impede revenue generation. Dr Salehuddin assured that allocations for crucial sectors like health, education, and social safety nets would not be reduced, emphasizing the government’s commitment to these areas.
The Finance Adviser expressed satisfaction with the government’s performance, citing positive feedback from development partners. He mentioned a $500 million offer from the IsDB for fertilizer imports and financial support from the ADB and World Bank. Dr Salehuddin underscored the importance of resources, particularly in light of debt service liabilities, and reaffirmed Bangladesh’s commitment to avoiding loan defaults.
In conclusion, Dr Salehuddin expressed optimism about the macroeconomy’s state and the government’s efforts to build a welfare-oriented and equitable state. He outlined short-term goals to address issues in the financial and banking sectors, particularly focusing on reducing default loans and non-performing loans.
Taptap Send Coordinator Mahmud Monir explained that their mobile app service facilitates secure and fast money transfers from the USA, Europe, Canada, Australia, and UAE to Bangladesh and various countries in Africa, Asia, and Latin America.