Bangladesh’s overall inflation has remained stable, with a recent reduction in inflation for non-food items, said Dr Salehuddin Ahmed, the Finance Adviser to the government. He also assured that the impact of increased imports from the United States would not significantly affect consumers.
Dr Ahmed made these remarks during a media briefing after a meeting of the Government Purchase Advisory Committee, held at the Cabinet Division conference room on Tuesday (September 16). He chaired the meeting.
When asked about the potential cost of importing goods from the U.S. compared to Vietnam, Dr Ahmed acknowledged that there would be some increased costs. “For instance, wheat imports will cost more, but the quality will be better,” he said. He also added that efforts are being made to avoid tariffs and reduce the trade deficit, although some additional costs are inevitable.
Addressing concerns over whether these imports would affect consumers, the Finance Adviser firmly stated, “No, consumers will not be affected. We have already made efforts to keep prices manageable for consumers, including providing subsidies through TCB and other initiatives.”
When asked whether inflation would be impacted, Dr Ahmed confirmed, “There has been no impact on inflation yet. The more we import and increase supply, the better. However, the key issue lies in the wholesale and retail markets, which have surpassed the economy’s scope. This situation is rare in other countries, but our overall inflation remains stable, and recently, inflation for non-food items has decreased.”
Responding to concerns raised by economists about the increasing unemployment rate, which could affect the economy, Dr Ahmed downplayed the use of such drastic terminology. “Employment is a significant challenge, but most employment is in the private sector. If business activities slow down, it certainly has an impact, but we are addressing these issues,” he said, adding that the claims of a “horrible” situation were exaggerated for attention.
Regarding the slowdown in business activities, the adviser mentioned, “Business activities were slightly slow in the middle, but now things have improved.”
On the topic of tax collection, Dr Ahmed assured that the government is utilising all available means to ensure effective tax collection. “We have provided assistance to low-income individuals who may find it difficult to complete their tax forms, offering a small fee-based service to help them.”
Regarding political discussions, the Finance Adviser clarified that no political matters were discussed at the meeting. “We only focus on economic issues and try to align the economic aspects of the government’s agenda,” he said.
Dr Ahmed also highlighted decisions made during the meeting, including the approval for setting up several electricity substations in remote areas of the country. He also approved the import of LNG and fertilizers, such as MOP and urea, to further support the economy.
In line with its efforts to narrow the trade surplus of around $6 billion, Bangladesh is eyeing a reciprocal tariff of 15 percent from the U.S. before finalising a deal, resulting in an increase in imports from the USA.
