Dhaka: Prime Minister sheikh hasina said on Tuesday Bangladesh Will never get caught in an economic crisis like Sri Lanka because his government was pursuing the development of the country in a planned manner.
Addressing an event of his ruling Awami League here, beautiful lady He said that his government took every development project keeping in mind their economic return and national budgets were prepared in a planned manner as well as to avoid economic calamities and facilitate smooth development.
“Bangladesh will never be built” Sri LankaIt will not happen,” Hasina said. “We think in a practical way before taking up any development project (and therefore) the country will continue to move forward to overcome all global challenges.”
The premier, however, said that as Bangladesh began to overcome COVID-19, the impact of the Russo-Ukraine war exacerbated the situation, which made his government four-pronged development projects in terms of budget allocation considering their economic returns. Inspired to classify into sections.
“We don’t eat ghee by borrowing money,” Hasina said, adding that Bangladesh is paying off all debts very carefully.
Sri Lanka has been witness to one of the worst economic crises since its independence in 1948. They have also defaulted on international loans.
In an apparent reference to China, he said that “the amount of our debt is not so high that we should fall into someone’s debt trap”.
His remarks came days after global rating agency Standard & Poor’s (S&P) warned Bangladesh that further depreciation of its currency would add to domestic inflationary pressures, and make external debt servicing costs more expensive.
Financial analysts also predict that inflationary pressures will continue to hurt people in the coming days, while the main opposition outside parliament is the former prime minister’s Bangladesh Nationalist Party (BNP). Khaleda Zia There were fears that the government’s “incompetence” could lead to a Sri Lanka-like crisis.
Bangladesh further liberalized its trading system in June 2022 and has since maintained a nominal exchange rate. TakaThe local currency has declined nearly 10 per cent against the US dollar, marking a marked change in the country’s foreign exchange dynamics.
S&P said the measure weakened Bangladesh’s external profile following a significant increase in its current account deficit due to increased domestic demand and higher commodity prices.
“These trends have driven net outflows of foreign exchange from the economy, resulting in a decline in reserves and depreciation pressure against the Taka,” it said.
Executive Director of the financial think-tank Policy Research Institute (PRI), Dr. Ehsan H Mansoori It said earlier this week that monetary policy was not working well to contain inflationary pressures.
However, S&P said Bangladesh’s economy picked up in 2022 and the underlying momentum remains good, adding that the country’s apparel sector continued to see a strong pick-up as the global economy normalised, accounting for 12.3 percent of manufacturing activity. Expanded. outgoing financial year.
“The sector’s recovery is supported by strong domestic demand conditions, a durable recovery in Bangladesh’s labor market conditions,” the rating agency said.
“The outlook remains stable (and) the stable outlook reflects our expectation that Bangladesh’s solid growth prospects and policy adjustments will manage risks associated with a challenging external scenario over the next 12 months,” it noted.
The agency also said that Bangladesh’s economic recovery is in good shape, and “we forecast real GDP growth to average 7.0 per year over the next three years.”
Dr Habibur Rahman, Chief Economist of Bangladesh Bank, said the central bank has taken several steps to contain inflation to stabilize the exchange rate, while “efforts to control inflation through supply-side reforms without raising the interest rate”. are continuing”.
Hopefully, he said, the US dollar exchange rate against the taka will come down soon and other sectors will also improve.
State Planning Minister Dr Shamsul Alam, himself an economist, said that the fact cannot be denied that people are now suffering due to inflation, mainly due to rise in fuel prices “but, the government has Several steps have been taken and there is expectation that there will be inflationary pressure. Come down by October”.
Addressing an event of his ruling Awami League here, beautiful lady He said that his government took every development project keeping in mind their economic return and national budgets were prepared in a planned manner as well as to avoid economic calamities and facilitate smooth development.
“Bangladesh will never be built” Sri LankaIt will not happen,” Hasina said. “We think in a practical way before taking up any development project (and therefore) the country will continue to move forward to overcome all global challenges.”
The premier, however, said that as Bangladesh began to overcome COVID-19, the impact of the Russo-Ukraine war exacerbated the situation, which made his government four-pronged development projects in terms of budget allocation considering their economic returns. Inspired to classify into sections.
“We don’t eat ghee by borrowing money,” Hasina said, adding that Bangladesh is paying off all debts very carefully.
Sri Lanka has been witness to one of the worst economic crises since its independence in 1948. They have also defaulted on international loans.
In an apparent reference to China, he said that “the amount of our debt is not so high that we should fall into someone’s debt trap”.
His remarks came days after global rating agency Standard & Poor’s (S&P) warned Bangladesh that further depreciation of its currency would add to domestic inflationary pressures, and make external debt servicing costs more expensive.
Financial analysts also predict that inflationary pressures will continue to hurt people in the coming days, while the main opposition outside parliament is the former prime minister’s Bangladesh Nationalist Party (BNP). Khaleda Zia There were fears that the government’s “incompetence” could lead to a Sri Lanka-like crisis.
Bangladesh further liberalized its trading system in June 2022 and has since maintained a nominal exchange rate. TakaThe local currency has declined nearly 10 per cent against the US dollar, marking a marked change in the country’s foreign exchange dynamics.
S&P said the measure weakened Bangladesh’s external profile following a significant increase in its current account deficit due to increased domestic demand and higher commodity prices.
“These trends have driven net outflows of foreign exchange from the economy, resulting in a decline in reserves and depreciation pressure against the Taka,” it said.
Executive Director of the financial think-tank Policy Research Institute (PRI), Dr. Ehsan H Mansoori It said earlier this week that monetary policy was not working well to contain inflationary pressures.
However, S&P said Bangladesh’s economy picked up in 2022 and the underlying momentum remains good, adding that the country’s apparel sector continued to see a strong pick-up as the global economy normalised, accounting for 12.3 percent of manufacturing activity. Expanded. outgoing financial year.
“The sector’s recovery is supported by strong domestic demand conditions, a durable recovery in Bangladesh’s labor market conditions,” the rating agency said.
“The outlook remains stable (and) the stable outlook reflects our expectation that Bangladesh’s solid growth prospects and policy adjustments will manage risks associated with a challenging external scenario over the next 12 months,” it noted.
The agency also said that Bangladesh’s economic recovery is in good shape, and “we forecast real GDP growth to average 7.0 per year over the next three years.”
Dr Habibur Rahman, Chief Economist of Bangladesh Bank, said the central bank has taken several steps to contain inflation to stabilize the exchange rate, while “efforts to control inflation through supply-side reforms without raising the interest rate”. are continuing”.
Hopefully, he said, the US dollar exchange rate against the taka will come down soon and other sectors will also improve.
State Planning Minister Dr Shamsul Alam, himself an economist, said that the fact cannot be denied that people are now suffering due to inflation, mainly due to rise in fuel prices “but, the government has Several steps have been taken and there is expectation that there will be inflationary pressure. Come down by October”.