Inflation may affect sustainable pandemic recovery in Bangladesh: CPD

The think tank suggested use of strategic food stocks, an open market system and the strengthening of social safety net programmes, particularly programmes for food distribution and cash transfer.

CPD made the observations in its Independent Review of Bangladesh's Development (IRBD) report, titled ‘State of the Bangladesh Economy in FY21-22’, reports a news agency. CPD executive director Fahmida Khatun presented the paper at a press briefing in Dhaka.

Fahmida said Bangladesh's economy is under pressure because of the emergent challenges caused due to both external and domestic factors and proactive measures by the policymakers both in the immediate and medium terms are needed to overcome those.

Coordination between the monetary policy and fiscal policy is needed, particularly in the upcoming budget to keep commodity prices under control, she added.

She said policymakers will have to come out of growth obsession and focus on the quality of growth in terms of distribution of the benefits of growth more equally.

The CPD said the National Board of Revenue (NBR) should consider removal of the advance income tax, advance tax and regulatory duty on all imported essential food items.

The think tank pointed out that the role of the Bangladesh Competition Commission should be strengthened, particularly in the case of the essential consumer goods market.

"Private sector corporations should consider a higher salary increment in 2022, as a 5 per cent increment of salary in the face of double-digit price hikes is compelling workers to seriously compromise their standard of living," the think tank said.

It also recommended increasing the minimum wages in all industries so that workers earning minimum wages may at least afford basic food.

Fibre2Fashion News Desk (DS)