United News of Bangladesh

The Bangladesh government has imposed a seasonal fishing ban in the Bay of Bengal and riverine water bodies to protect marine biodiversity, ensure safe breeding and sustain fish stocks. According to a media release issued by the Ministry of Fisheries and Livestock, fishing by any vessel will remain prohibited from April 15 to June 11. This annual restriction aims to support the reproduction and conservation of marine species. 2-month fishing ban in Padma-Meghna to start March 1 While the ban is vital for marine conservation—particularly for species like Hilsa—it poses economic challenges for coastal fishing communities.

Dr Debapriya Bhattacharya, the chief of the committee on White Paper on the state of Bangladesh's economy, has cautioned that the pro-reform sentiment in Bangladesh may wane if the interim government does not accelerate its reform agenda. “That means the people who are now in favour of reforms at one stage might step aside from the balanced reforms due to the economic insecurity,” he said on Saturday. Speaking at a symposium titled ‘White Paper and Thereafter: Economic Management, Reforms and National Budget’ at the Bangabandhu International Conference Centre (BICC), Dr Debapriya stressed the urgent need to stabilise the economy. He outlined the importance of addressing growth trends, employment, poverty alleviation, and social security. “Currently, a confrontation is creating in our country centering election and reforms,” said Dr Debapriya, a distinguished fellow at the Centre for Policy Dialogue (CPD) and convener of the Citizen’s Platform for SDGs. He called for wide-ranging discussions on the upcoming budget, pointing to slowing growth, a lack of private sector investment, and employment challenges as pressing issues. “Specially, the growth rate is slowing down, no investment in the personal sector and problem in employment is there,” he said. Dr Debapriya criticised the interim government, led by Nobel Laureate Professor Muhammad Yunus, for not presenting a clear economic manifesto. He argued that this lack of a cohesive policy framework made it difficult to evaluate the While acknowledging isolated steps taken by the administration, he highlighted the absence of a comprehensive plan to build a balanced and inclusive economic system. “We need clarity on how the government plans to address issues such as LDC graduation and provide mid-term support to those lagging behind,” he said. The economist also pointed out that the interim government was operating under a budget formulated by the previous Awami League government. “This government has not placed a revised budget, rendering all indicators linked to the previous one irrelevant,” he observed. Debapriya slams 'inconsiderate' VAT hike by interim govt Dr Debapriya also criticised the lack of transparency regarding development projects. “Without a published policy for scrutinising these projects, it becomes challenging to assess their impact and feasibility,” he added. Debapriya alleged the corruption in Aman paddy collection is still going on like the previous Awami League tenure. “In Aman paddy procurement there was corruption in the previous time which is still exist,” he said. He said the country saw a record amount of Aman production, thanks to the farmers’ efforts.“But till now we do not see any success in collection,” he added. He also alleged that the farmers are being deprived of fair price like the past times. UN reappoints Dr Debapriya to Committee for Development Policy  

Business leaders have raised serious concerns to the Bangladesh Bank Governor over the proposed hike in gas prices, along with a host of other economic challenges that are increasingly hindering operations. “The high interest rates on bank loans, energy shortages, escalating fuel prices, the withdrawal of export incentives, increased taxes, and mounting pressure to raise workers' wages have created an unfavourable environment for doing business. Such an atmosphere leaves no room for sustainable operations,” said Anwar-ul Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), after the meeting with the Governor. The industry representatives voiced their grievances and called for the introduction of an exit policy that would allow businesses to close with dignity if the situation does not improve. Key Concerns Raised by Business Leaders One of the primary issues highlighted was the rising cost of borrowing. Business owners argue that high interest rates are stifling growth and limiting their ability to expand or reinvest. They said this financial strain is exacerbated by the ongoing energy crisis and the soaring prices of gas, which significantly increase production costs and undermine the competitiveness of Bangladeshi products in global markets. According to them, the withdrawal of export incentives has dealt a severe blow to exporters, who are already grappling with fluctuating international demand and rising input costs. Increased taxation and the pressure to enhance wages and benefits for workers have further intensified the financial burdens on businesses. Govt's VAT, SD hike on 100+ products suicidal: DCCI In light of these challenges, the business leaders have demanded the introduction of an exit policy that would enable struggling businesses to close without reputational damage. “If we cannot operate profitably and with dignity, we must be allowed to exit gracefully. The government must consider this seriously,” Chowdhury emphasised. The business community has urged the government and Bangladesh Bank to take immediate action to address these issues. They proposed several reforms, including lowering interest rates, ensuring a stable and affordable energy supply, reinstating export incentives, and adopting more business-friendly tax policies. Failure to act on these concerns, business leaders warned, could lead to a significant slowdown in industrial activity, resulting in widespread job losses and detrimental impacts on the national economy.

Sanjay Malhotra, a seasoned civil servant and former revenue secretary, assumed the role of India's central bank governor on Wednesday, stepping into the position as the nation grapples with slowing economic growth and soaring inflation. Malhotra begins a three-year tenure at the helm of the Reserve Bank of India (RBI), taking over from Shaktikanta Das, who concluded an extended six-year term. India's economic growth decelerated to 5.4% in the latest quarter, marking the slowest pace in nearly two years, while inflation surged to 6.2% in October—well above the RBI's 4% target. The spike in inflation has been largely driven by a steep rise in vegetable prices. An editorial in The Indian Express noted, “Malhotra faces the challenge of navigating the RBI through a period of global and domestic uncertainty, with increasing calls to ease policy rates to support growth.” Despite rising food prices, the central bank under Das held interest rates steady at 6.5% last Friday, a level maintained since February 2023. However, it lowered the cash reserve ratio for banks from 4.5% to 4%, aiming to ease monetary conditions and bolster growth. Read: X accounts, several Indian media spread propaganda against Bangladesh: Rumor Scanner Economists anticipate that inflationary pressures may ease in the coming months, potentially paving the way for a rate cut in the spring. “Structural weaknesses in India’s economy, including weak job growth and low wages, are restraining demand as urban consumer spending slows,” Shumita Deveshwar of TS Lombard highlighted in a recent report. The RBI has also revised its economic growth forecast for the current fiscal year (April-March) to 6.6%, down from an earlier projection of 7.2%. The downgrade reflects a slowdown in key industries such as mining, petroleum products, iron and steel, and cement. Nonetheless, the central bank expressed optimism for an industrial recovery, supported by increased government spending post-monsoon. “Supply chain pressures eased in October-November, falling below historical averages. Meanwhile, the services sector remains robust,” the RBI stated. Source: With inputs from agencies