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Chattogram-Cox’s Bazar rail line to open this year: Railways Minister
Mentioning that the work on Chattogram-Dohazari-Cox's Bazar train route is going on in full swing, Railways Minister Md Nurul Islam Sujon says the rail line will open within this year.
Talking to UNB the minister says they are working to complete the project between June and July of this year.
“Hopefully, we can finish the work by this time. And if the work is not completed in June for any reason, it may take one or two more months. Even then we will be able to travel to Cox's Bazar by train within this year,” he says.
The minister says that 80 percent of the construction work of Dohazari-Cox's Bazar project has been completed, and the remaining 20 percent will be finished by this time.
When completed, the 100-km new railway line from Dohazari to Cox’s Bazar will ensure a 'pleasant and comfortable' journey, the minister says.
Besides, it will bring a revolutionary change in overall economy and boost tourism in Cox's Bazar, he says.
READ: Dhaka underground metro rail: Inauguration of construction work on February 2
The railway minister says that the services will run with high-quality coaches for tourists in Cox's Bazar. A new project has been taken to implement this, and 54 coaches will be purchased under this project, which is designed with wide windows.
“Travelers will get a chance to enjoy the natural scenario very easily,” he says.
According to the project, there are eight stations along the 100-km railway including at Satkania, Lohagara, Chakaria, Dulahazara, Eidgaon, Ramu and Cox's Bazar Sadar.
To facilitate this, three big bridges have been constructed on Sangu, Matamuhuri and Bakkhali rivers. Besides, 43 small bridges, 201 culverts and 144 level crossings have been constructed on the railway. A flyover is being constructed in Keochia area of Satkania, and two highway crossings in Ramu and Cox's Bazar areas. An overpass of 50 metres and three underpasses are being constructed for the movement of elephants and other wildlife.
Mofizur Rahman, director of the project, said that more than 50-km of the railway line is now visible. Most of the construction of bridges and culverts has been completed. The remaining ones will be finished in the next few months.
READ: Chattogram also to have metro rail service: Quader
As of last December, the progress of the project is 80 percent. The project deadline is June 2024.
“However, we are trying to complete the work by June-October 2023,” the official added.
He also said that a spectacular iconic railway station is being constructed on 29 acres of land in the Hajipara area of Jhelongja Union, seven kilometers east-north of Cox's Bazar Sadar. The station is being modeled after a beach oyster. The area of the six-storey station building is 1,82,000 square feet. Three platforms of 650 metres in length and 12 meters in width are being constructed near the iconic building.
Besides, a railway residential area has been built next to it. Eight buildings are nearing completion. Apart from residential hotels, the station also has facilities like canteen, lockers and car parking. Tourists can leave their luggage in the station lockers and spend the day at the beach. At least 46,000 people can travel through this station a day, the project director added.
“A direct railway connection with Cox’s Bazar will change fortunes in the beach town as tourists always want to reach their destinations without hazards for their perfect vacation,” he said.
READ: Metro rail operates upon electrical & mechanical system installed by L&T
On April 3, 2011, Prime Minister Sheikh Hasina laid the foundation stone for the construction of the railway between Dohazari-Ramu-Cox's Bazar and Ramu-Ghumdhum.
No filmmaker should experience what I did: Farooki
After getting the clearance for his much-anticipated film ‘Shonibar Bikel’ (Saturday Afternoon) from Bangladesh Film Censor Board on Saturday afternoon, acclaimed filmmaker Mostofa Sarwar Farooki said that he is thankful but does not want any filmmaker to experience what he had to endure film for the last four years.
“I feel relieved to get this news finally after all these years. At the same time, I just want to say that whatever I have gone through for this film - I don’t want any filmmaker to go through those,” Farooki told UNB on Saturday.
For the last four years, Mostofa Sarwar Farooki’s 8th directorial film Shonibar Bikel - a Bangladeshi-German-Russian co-production, a political thriller inspired by the 2016 Holey Artisan massacre in Gulshan shot almost entirely in a single take, was stuck and denied the censor certificate from Bangladesh Film Censor Board. It features an ensemble cast of Nusrat Imrose Tisha, Zahid Hasan, Mamunur Rashid, Iresh Zaker, Nader Chowdhury, Gousul Alam Shaon, Indian-Bengali film actor-director Parambrata Chatterjee and Palestinian actor Eyad Hourani in the lead characters, and received multiple awards at different festivals across the world since being ready for its theatrical release in 2019.
Read: ‘Shonibar Bikel’ gets censor clearance on a Saturday afternoon
Despite the filmmaker claiming several times that the film was fictionalised based on the incident and not direct documentation of the event, Information and Broadcasting Minister Dr Hasan Mahmud previously stated that the Bangladesh Film Censor Board did not grant the film its censorship as the board's members at the time considered a number of factors, including the internal security and external reputation of the nation. He also stated that the film did not properly highlight the contribution of members of the police, RAB and army during the 2016 Holy Artisan attack.
“Unfortunately, it has been banned in Bangladesh on the grounds it could “damage the country’s reputation” and incite religious hatred. The only thing this Bangladesh-Germany co-prod could do to the country’s reputation is improving it, and its plea for religious tolerance is nothing short of touching. While the body of the film is shot in a single, excited take, it opens with a series of shots emphasizing the deceptive stillness of Dhaka on a lazy Saturday morning,” The Hollywood Reporter reviewed the film in May 2019.
Although Farooki and Shonibar Bikel continued fighting for its approval and censor certificate, Bollywood, in the meantime, moved forward with the movie ‘Faraaz’. The Hansal Mehta directorial is based on the same incident and is scheduled to have its theatres release in India on February 3, and the film narrates a more direct reflection of the actual event than ‘Shonibar Bikel’, many audiences and film observers opined after the release of its theatrical trailer.
Read: Holey Artisan victim's mother vows to fight release of Bollywood film on tragedy
When Shonibar Bikel's clearance was not granted before ‘Faraaz’, Farooki and numerous other acclaimed and renowned artists, cultural personalities and filmmakers expressed dissatisfaction with the media and demanded justice for the film.
The filmmaker and associates raised their united voice in two major events in the past year against the ‘unnecessary censorship’ and injustice against the film - first at a unique press conference on August titled “Golpo Bolar Swadhinata Chai” at the Dhaka Reporters Unity in the capital, and also at the maiden edition of the daylong summit on December 30 titled ‘FAB Fest 2022’, organised by Film Alliance Bangladesh, a think-tank comprising stakeholders in the film industry and media professionals of the country.
Finally, when the release date of ‘Faraaz’ was announced and the trailer of the film got released on the T-Series YouTube channel last week, a united outrage cast over the social media platforms and many urged the censor board to rewatch and review the decision.
Read More: Holey Artisan Victim Faraaz's Heroism is Now on the Silver Screen
The members of the appeal board - consisting of actress and lawmaker Suborna Mustafa, Jatiya Press Club general secretary and former censor board vice chairman Shyamal Dutta, eminent silver screen actress Sucharita and former Additional Secretary Nurul Karim, saw the film on Saturday, before announcing that there are now no obligations to theatrically release the film.
According to Shyamal Dutta, since the film is not an exact adaptation of the events of Holey Artisan, there is no obstacle to its release. There is no need to add or modify any scenes; the events of this film have nothing to do with the events that took place in Holey Artisan. This is not a direct depiction of the events of Holy Artisan, and the appeal board suggested the director make such a declaration before realising the film.
“How does it feel to watch everyone else sprint while you remain still? I felt so useless for a very long time! Although I have no idea how it appears from the outside - but I can tell from the inside, there are no lonely people like artists. The feeling that engulfed me, along with my own worthlessness on ‘Shonibar Bikel’ for the past four years, was loneliness,” Farooki said, as his last theatrical work was the late Indian actor Irrfan Khan starrer 2017 film ‘Doob’ (No Bed of Roses), which was the Bangladeshi entry for the Best Foreign Language Film at the 91st Academy Awards.
Read More: Foreign envoys remember those killed in Holey Artisan attack
Finally relieved with the clearance, Farooki told UNB: “I want to convey my gratitude to the Film Alliance of Bangladesh (FAB) alongside my colleagues and friends from the filmmaking community and most importantly, our audiences. Many people from different sectors of our society raised their voices for the film, and I am immensely grateful to all of them.”
“To receive the film censor board's approval for ‘Shonibar Bikel’ - I had to wait four long years. I sincerely hope that no other filmmaker goes through something similar. The appeal board has yet to send us a formal letter regarding the censorship. We will complete all necessary procedures, include a disclaimer, and submit the letter after receiving it. We want the movie to be out on February 3 or sooner," Farooki said.
Read More: Govt satisfied with Holey Artisan attack verdict: Law Minister.
Dhaka underground metro rail: Inauguration of construction work on February 2
Prime Minister Sheikh Hasina will inaugurate the construction work of the country's first underground metro rail on February 2.
MAN Siddique, managing director of Dhaka Mass Transit Company Limited (DMTCL), said they have completed the preparations for the inauguration of the country’s first underground metro line, MRT Line-1.
The PM will inaugurate the depot of the MRT Line-1 in the Pitalganj area of Rupganj upazila.
“As part of the MRT Line-1 plan, the first rail depot will be constructed at Pitalganj area in Narayanganj,” he said.
Hasina will inaugurate the construction work at an empty plot beside Janata High School.
ABM Amin Ullah Nuri, Secretary of the Road Transport and Highways Division, told UNB that Dhaka Mass Transit Company Limited (DMTCL) will implement the mega project by 2026.
Read: Chattogram also to have metro rail service: Quader
The underground metro line will have two parts: around 19.87 kilometres from Dhaka airport, which includes 16.4 kilometres underground, and around 11.36 kilometres that is elevated from Notun Bazar to Purbachal, he said.
It will take 24 minutes to travel from Dhaka airport to Kamalapur, with breaks at 12 underground stations along the route, and 20 minutes to travel from Notun Bazar to Purbachal, with breaks at seven stations.
The secretary also said that after MRT Line 1 is launched, this route will allow 8 lakh passengers to travel.
MRT Line-1 underground stations will have three floors. The ticket counter and other facilities will be located on the first basement level.
The platform will be on the second level. The ticket counter and platform for the elevated station will be on the third floor. Both the elevated and underground stations will have lifts, stairs and escalators.
The DMTCL signed contracts with Japan's Tokyo Construction Company Limited and Bangladesh’s Max Infrastructure Limited for the project. The project will be implemented in 12 packages.
An agreement was signed with a consulting firm on October 23, 2012, to supervise the construction of MRT Line 1. Another agreement was signed for package CP-1, related to the construction of the depot, on November 23, 2022.
A total of 12.9725 acres of land in Pitalganj and Brahmankhali Mauza of Rupganj Upazila of Narayanganj have been acquired for the construction of the depot and depot access corridor of MRT-1. TK140 crore were given as compensation to the victims.
Exporters worry about losing markets as shrimp adulteration continues unabated
Despite drives by police, Rab and the Fisheries Department in Bagerhat over the past few years to stop adulteration of shrimp, the unscrupulous practices of dishonest traders continue unabated.
Shrimps from Khulna, Bagerhat and Satkhira districts are exported to several countries. Injecting jelly, water, rice starch, and harmful substances into shrimps to increase their weight and earn extra profits are causing concern among exporters and consumers.
Shrimp exporters fear they may lose the overseas markets if shrimp adulteration continues.
Shrimp was once the second-most exported product from Bangladesh but in the last few years it failed to hold up against the growing global competition and currently holds the seventh position among top exported goods from Bangladesh.
Read more: Over 1000 kg shrimps injected with jelly seized in Chandpur
In the last six months (July-December), mobile courts in Bagerhat seized some 1,660 kg of shrimp while traders were injecting jelly-like substances into them.
Executive magistrates and the Bagerhat District Fisheries Office (DFO) conducted 17 mobile court drives in various areas of the district, including Bagerhat Sadar, Fakirhat, Mollahat, Chitalmari, Rampal, and Mongla during the period.
An unseen presence: Fear of tiger attack grips 6 villages along Sundarbans
The residents of six villages near the Sundarbans are literally living in fear for their lives as a hundred footprints of two tigers were spotted in Sonatala village of Bagerhat’s Sharonkhola.
Two tigers left the Sundarbans and crossed the Bhola river and entered the village early hours of Thursday (January 12) and roamed over an area of about one kilometer of Sonatala village, said Divisional Forest Officer (DFO) of Sundarbans East Division Muhammad Belayet Hossain.
Later, the forest department, Village Tiger Response Team (VTRT), Community Patrolling Group (CPG) and villagers searched various areas throughout the day in search of the tigers. However, no tiger was found in that village till Thursday evening, he added.
Read more: Tiger census: Installation of cameras begins in Sundarbans
The two tigers went back to the forest after roaming different places in that village, claimed the Forest Department after tracing all the footprints the tigers left on the ground. However, villagers were advised to stay on alert, and have just spent an anxious weekend remaining vigilant.
With this, tigers have left the Sundarbans and entered the locality more than 50 times in the last 15 years. During this time, both man and tiger have lost their lives due to counter-attacks.
Villagers demanded effective measures to prevent tigers from entering the locality.
Harun Bhadda of Sonatala village said that he woke up early in the morning and saw hundreds of the unmistakable imprints of the tiger's paw around his house. Ever since seeing them, his entire family has been gripped by fear of tigers.
Read More: Panic after tiger strays into Satkhira village
In Sonatala village, the Bhola River has almost filled up with silt and has only two to two-and-a-half feet of water. In the Tajur Gate area under the Bhola camp of the Sharonkhola range of the Sundarbans East Division, countless tiger footprints were spotted on the river bed.
BB set to announce new monetary policy
Bangladesh Bank (BB) is going to announce a new monetary policy on Sunday in line with the advice of the International Monetary Fund (IMF).
Bangladesh requested the IMF for a loan of $4.5 billion last July, and the global lending agency agreed to give it to Bangladesh subject to conditions.
Before lending, the IMF gave several conditions for reforming Bangladesh’s financial sector including setting a monetary policy for every quarter of a fiscal year.
In line with the IMF conditions, the central bank has decided to announce a monetary policy twice in a year, which was announced for a single time during a fiscal year under former Bangladesh Bank Governor Fazle Kabir.
The BB announced the new monetary policy for the remaining period of the current fiscal year, which will be very challenging as inflation and liquidity crisis are mounting, experts say.
Former BB Governor Dr Atiur Rahman told UNB that the economic situation is changing frequently due to variables and volatile geopolitical situations and financial conditions involving Russia-Ukraine war.
Read: Target trade-based capital flight, not genuine consumption through imports: Economists
The central bank’s decision to return to the announcement of the monetary policy twice a fiscal year is a good initiative, he said. However, it should be kept under close watch to readjust the policy instruments as the market conditions are so unstable, he said.
Dr Atiur said curbing demand for goods and services and increasing supply lines are necessary tools for controlling inflation. This is a challenging job given the fast changing external and domestic financial conditions, he said.
The central bank should remain cautious about the multiplier effects of creating more reserve money as the private credit growth and public borrowing level have already reached their targeted limits, he said.
Indeed, containing inflation should remain the top objective of the upcoming monetary policy as the low and middle income groups of people are in troubled water due to this, said Dr Atiur, who also teaches at the Dhaka University.
Former IMF official and economist Dr Ahsan H. Mansur told UNB that the monetary policy cannot bring any impact as the interest rate cap is fixed at maximum 9 percent.
Policy interest rate rising will bring a little change in the economy while lending interest rate is a big tool of monetary policy to control money supply and reducing consumption’s demand.
With the fixed interest rate, the monetary policy cannot make any change in the economy, he said.
Read: Bangladesh Bank raises dollar exchange rate by Tk 1 to Tk 100
Mansur said that the central bank is bringing high power money (HPM) in the market, which will have multiple impacts, and the exchange rate of domestic currency (taka) will also fall then.
[High powered money or powerful money refers to that currency that has been issued by the central bank]
While the exchange rate will fall, inflation would go up and liabilities of external payment would definitely increase, he said.
The new monetary policy will be announced as per the IMF's wishes. As a part of lending, a team of IMF held a series of meetings in Dhaka from October 26 to November 9.
The IMF team led by Rahul Anand (Bangladesh’s mission chief) met with the Bangladesh Bank, the Ministry of Finance, the Energy Division, BBS, the planning ministry, BSEC, NBR, and BERC to know the latest economic situation.
As part of this, the IMF DMD Antoinette Monsio Sayeh is arriving in Dhaka to review the update and finalize the loan deal with Bangladesh.
The BB is announcing monetary policy during her Dhaka visit starting on January 14.
A team led by Bangladesh Bank Governor Abdur Rauf Talukder met with the IMF on the side-lines of the World Bank-IMF annual meeting in Washington last October. After the meeting, the governor told reporters that Bangladesh will get the loan from the IMF.
Target trade-based capital flight, not genuine consumption through imports: Economists
An upward trend in imports once again amid calls for austerity from the highest levels of Bangladesh government has raised concern among economists as to whether truly effective steps are being taken to check trade-based capital flight, particularly through the practise of over-invoicing by the country’s importers.
The government has been looking to shore up its dwindling reserves of foreign exchange by cutting down imports of non-essential and luxury items, as well as tightening the process for issuing LCs by banks on behalf of importers, during which over-invoicing occurs.
Both Bangladesh Bank and the government took a number of measures to curb import payments, which hit a record high of $82.5 billion in FY22, that ended last June 30. The central bank has asked banks to impose a 100 percent margin on the opening of LCs for non-essential items, meaning that importers have to make a full import payment in advance.
Read: Bangladesh Bank raises dollar exchange rate by Tk 1 to Tk 100
The results were mixed, with only a slight cooling down in imports noticeable in the first quarter of the current fiscal (July to September 2022), clocking $19.3 billion. With exports too slowing somewhat to $10.8 billion in the same period, the country’s trade deficit had already ballooned to $7.5 billion in the first three months of the year - sustaining the pressure on the reserves.
Subsequent data from the Export Promotion Bureau have shown that exports bounced back strongly in the second quarter, breaking records in November and December. But now import data, which from Bangladesh Bank tends to be a month behind the export numbers from EPB, has shown that imports too have kept performing robustly.
After continuing to hover above the $6 billion mark in October, the country’s imports crossed the $7 billion mark once again in November 2022, clocking $7.03 billion, up 14.2 percent from the previous month.
Read: Exporters to get slightly higher rate of Tk 102 for one US dollar
Acknowledging the need for austerity to check superficial spending, economist and former caretaker government advisor Dr. A.B.M Mirza Azizul Islam was keen not to see rising imports as a negative per se, since it also signals strong demand in the economy and the people’s purchasing power. Consumption can be a driver of growth.
"This is a good aspect of increasing imports. It is natural that imports will increase when the economy grows. Imports will increase, investment in the country will increase. The economy will move forward,” he told UNB.
“The problem is our imports had increased abnormally. It came down in various steps. Now there is an increasing trend again. But our reserves are dwindling. In this situation, there will be more pressure on reserves,” he said.
Read: Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
So the government has to stay on the path of austerity, it should continue for some more time. After getting loans from the IMF, World Bank and ADB, things can be thought of differently, Mirza Aziz said.
Former governor of the central bank, Dr Salehuddin Ahmed, opined much the same, encouraging increased domestic resource mobilisation while following the path of austerity.
He also suggested strongly to verify the LCs against goods arriving via containers to stop trade-based money laundering, the real menace that needs to be targeted.
Read More: Bangladesh reassures Chinese FM of one-China policy, seeks better trade relations
As the global economy started to normalise in the post-pandemic period, Bangladesh witnessed galloping import demand outshine record exports in the 2021-22 fiscal. The $82.5 billion import figure was itself a record, up 36 percent year-on-year and leading to a record trade deficit as well.
The country’s forex reserves, which peaked at $48.1 billion in August 2021, will soon have halved since then.
At the end of the last trading week on Thursday (Jan. 5), the reserves stood at $33.6 billion, including encumbered reserves. The unencumbered reserves figure would be $24.5 billion, following the next payment to the Asian Clearing Union, $1.12 billion for the November-December period, due this week.
Read More: UK to strengthen trade, investment, digital economy ties with Bangladesh: Indo-Pacific Minister
Metro rail operates upon electrical & mechanical system installed by L&T
The commercial operation of newly opened metro rail continues on Uttara-Agargaon part of the Dhaka Metro Line-6 based on the latest electrical & mechanical (E&M) system commissioned successfully by the Railway Business, Transportation Infrastructure Business of L&T Construction.
In the metro domain, the Integrated E&M Systems works including Overall System Integration was successfully executed by Indian multinational conglomerate company, Larsen & Toubro that is widely known as L&T.
The commercial operation of the Phase-1 (11.4 km) of the Dhaka Metro Line 6 commenced upon achievement of this milestone. This stretch was flagged off by Prime Minister Sheikh Hasina on December 28.
Read more: Fallen sky lanterns of New Year celebration halt metro rail operation for 2 hrs
Felani killing: Parents seek closure as judicial process drags on in India
Yesterday (January 7, 2023) marked the 12th death anniversary of Felani Khatun, whose killing stood out among the at least 1236 Bangladeshis who lost their lives at the hands of the Indian Border Security Force between 2000-2020 (Odhikar).
On January 7, 2011, fifteen-year-old Felani Khatun was gunned down by the BSF when she, along with her father, was returning home from India through Anantapur border along Phulbari upazila of Kurigram.
Felani and her father were not cattle smugglers, the usual victims of India’s trigger happy border guards (although opening fire unless they pose a threat is also illegal under Indian law). In fact, she used to work as a domestic help in New Delhi.
The little girl was obviously unarmed and represented no threat. The image that went viral of her body stuck on the barb-wire border fence, shot in the act of climbing past it, disturbed the conscience of people on both sides of the fence.
Read more: 11 years of Felani Killing: wait for justice gets longer
A case filed against the BSF in an Indian court with the cooperation of Indian human rights activists remains pending in the Indian High Court. Twelve years on, a sense of despondency has gripped the parents of Felani in their search for justice.
Though the judicial proceedings in the case have been delayed due to Covid-19, they still expressed their hope to stop the border killings through the establishment of justice.
Felani's death triggered a huge global outcry as the photo of her body hanging upside down went viral. The BSF men handed over the body a day after her killing.
Following the outcry on both sides of the border, BSF started an internal investigation into the incident and submitted a chargesheet against its constable Amiya Ghosh, who fired the fatal shot. It was the first such instance for a killing in the Bangladesh portion of India’s massive border.
Read more: Border killing: Photo exhibition held on Felani’s home premises
However, a special court constituted by the BSF acquitted Amiya Ghosh of the charge in August 2013.
Later, in the wake of widespread criticism of the acquittal, BSF decided to revive the murder trial. Yet another judicial court upheld the previous verdict and acquitted Amiya Ghosh again in July 2015.
Following this, Felani's father Nurul Islam with the help of the Indian human rights organisation Manabadhikar Suraksha Mancha (Masum) filed a writ petition with the Supreme Court of India.
The Supreme Court bench, headed by the country’s chief justice, show-caused several Indian bodies including the Home Ministry, in this regard.
Read more: Justice eludes Felani’s family
Talking to UNB, Felani’s father, Nurul Islam, said, “My daughter was killed by the BSF member in front of my eyes while crossing the border but I did not get justice in the last 12 years. The date of the trial proceedings was deferred several times. Now, I demand capital punishment for Amiya Ghosh and I hope the governments of the two countries reach an agreement to revive the judicial process and complete it."
Jahanara Begum, mother of Felani, said, "I was in India when my daughter was killed. My soul will not rest until justice is done for my daughter's murder."
After twelve years, the family is in need of closure, and although the border killings have dropped significantly, the stated objective of both sides to bring them down to zero is still some way off.
Looking at the number killed each year since the turn of the century, it is tempting to suggest that the Felani killing’s aftermath had some restraining effect on BSF jawans freely exercising a shoot-to-kill policy along the 4096-kilometre border with Bangladesh that is conspicuously absent from the standard operating procedure followed for its other international borders with various other countries.
Read More: Border killings not expected: Shahriar Alam
Bangladeshi deaths in BSF firing peaked at 155 in 2006, and remained above one hundred in 2007. Triple figures were nearly breached once again in 2009 (98), and fell to a still very high 74 in 2010. Then right at the start of 2011, Felani was killed. There would be just 30 more such deaths that year.
Although the 50 mark would be crossed again for the first time in ten years in 2020, they have been pulled back again. Although their final figure isn’t in yet, watchdog Ain o Salish Kendra counted ‘at least 16 deaths’ in 2022.
SM Abraham Lincoln, public prosecutor of Kurigram district who has stood by the family through the entire period, said despite the showcause notices, no hearings have been held as yet on the writ petition by a bench of the Indian Supreme Court.
"Even if it is delayed, the friendly relations and peaceful borders between the two countries will be established through justice," he hoped.
Read More: BGB, BSF agree to cut border killings.
Economy offers reasons for optimism, even as chronic problems persist
Economists are hopeful that Bangladesh’s economy will regain the growth momentum while reducing inflation and stabilising the exchange rate in the New Year.
Despite higher inflation and fluctuating currency exchange rate, record defaulted loans, they are optimistic about the overall growth of the domestic economy, which is predicted by the IMF and World Bank to be over 6 percent still in FY23.
Major challenges including capital flight ahead of the national election, persistent loan default culture, and lack of good governance in the banking sector will however remain.
Also read: Bangladesh performing well in 3 major economic indicators, data shows
Former adviser on finance and planning to a caretaker government Dr ABM Mirza Azizul Islam told UNB that Bangladesh’s economy remains in a good position compared to many other Asian countries - including Indonesia and Singapore.
The trade deficit is widening due to the sharp rise in import demand, which should be tackled by discouraging unnecessary imports and increasing domestic agriculture production. Huge import payments have eaten away at the foreign exchange reserve, he said.
Mirza Aziz said the pace of reducing the poverty rate (proportion of population under the poverty line) has slowed down. Inflation over 8 percent is pinching people’s pockets, as it creates an imbalance in the earnings and expenditure of marginal people.
Read More: Keep wheels of economy running amid global crisis: PM urges industrialists
He also suggested cutting additional facilities for loan defaulters as it is not good for the economy and the loan default culture could be reduced if the defaulters face legal action.
Former governor of Bangladesh Bank Dr Atiur Rahman said the economy in the New Year will face both opportunities and challenges, depending mostly on developments in the global economy.
“If the war in Ukraine comes to an end the global supply chains will improve and the shipping and fuel costs will come down. This will have some positive impact in terms of reducing the level of imported inflation with a huge impact on our overall inflation as well,” he said.
Read More: Investment projection spelled out to counter hurdles for growth
“However, we also need to do more on our domestic fronts to reduce this inflation,” Dr Atiur added. Inflation is certainly the biggest problem for middle and low-income people.
On the other hand, if the Fed (US Federal Reserve, America’s central bank) stops tightening its monetary policy, it would have some positive impact on the Taka-Dollar exchange rate. On the whole, the geopolitical tensions will continue to determine the pace of Bangladesh’s economic growth and the level of inflation.
“Yet, we must continue to support agriculture, remittances, and export sectors to contribute positively from within towards better gains of our economic growth. The monetary policy should continue to move towards market-determined conditions to help stabilise inflation from the demand side,” the former governor of Bangladesh Bank said.
Read More: Green Economy in Bangladesh: Prospects and Challenges
On the whole, the challenges will remain, but the economy of Bangladesh may stabilise with a robust foundation if the global situation turns favourable and austerity measures remain in place.