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Inflation, low revenue growth, major macroeconomic concerns

Experts tell MCCI seminar


Published : 14 May 2024 08:55 PM

Experts at a discussion meeting on Tuesday identified  four major macroeconomic concerns in Bangladesh like import surge leading to reserve losses, the depreciation of the Taka, persistent inflation, and low domestic revenue growth because of external shocks. 

Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) hosted the discussion titled “Stabilizing the Macroeconomy of Bangladesh: Issues and Challenges” at its Gulshan office. 

Dr. Sadiq Ahmed, Vice Chairman, Policy Research Institute, delivered the keynote presentation and lead an open discussion. The event was moderated by Farooq Ahmed, Secretary-General and C.E.O., MCCI. 

During his welcome remarks, the MCCI President, Kamran T. Rahman, stressed that stakeholders and policymakers must have a comprehensive understanding of how multiple factors collectively shape economic dynamics. 

He believed this knowledge helped create strategies for economic stability and growth. Discussions such as this event could help private sector representatives enhance their knowledge and realign their strategies, he opined.

In his keynote presentation, Dr. Sadiq Ahmed identified Bangladesh’s four major macroeconomic concerns: import surge leading to reserve losses, the depreciation of the Taka, persistent inflation, and low domestic revenue growth because of external shocks. 

He stated these factors were impeding the growth of Bangladesh’s GDP and its overall progress and development. As Bangladesh had one of the lowest tax/GDP ratios in the world, Dr. Sadiq advocated a focused, medium-term tax reform program. 

Later, he also discussed and elaborated on effective ways to tackle the inflationary, balance of payments, and budgetary challenges that the countrywas facing. 

Other issues that came up during the open discussion include the challenges of non-performing and distressed loans, tax leakages, fiscal, banking, and trade reforms, and the need for a transparent and easily understandable tax policy. 

The event ended with a vote of thanks from MCCI. Representatives from MCCI member firms and the media attended the event.