Yunus govt faces 4 key challenges

Zarif Mahmud: After the collapse of the Awami League government in the student uprising, the true picture of the country’s economy is becoming visible one by one. The work of reforming the state has been going on since the government led by Nobel-winning economist Dr. Muhammad Yunus took charge of the interim government on August 8. The weakness of the economy has become a big challenge in front of the Yunus government. Among these, mainly four sectors are seen as major challenges by this government of students.
The Interim Government has prepared a white paper rich in data and pictures of the existing economic situation of the country and announced the major challenges ahead to consolidate the economy.
Dr. Yunus government faces four challenges

1. Structural reforms address long-standing problems besides reviving the economy.
2. Capacity building of regulatory institutions and prevention of corruption.
3. To restore stability in banking and financial sector. Reform of tax and customs policy.
4. Attract foreign investment.

The interim government says that the economy of Bangladesh has been facing multidimensional challenges for the last one and a half decades. The economic situation has become very fragile due to extreme economic mismanagement, corruption, money-laundering and inefficient domestic and foreign borrowing activities by the previous government.
Besides, Sheikh Hasina’s government left a debt of Tk 18.36 trillion during the collapse. The debt status as of last December is equal to the total allocation of three budgets of Bangladesh.
Dr. The Yunus government says that the previous government resorted to domestic and foreign borrowing instead of trying to raise revenue by collecting taxes from domestic sources to cover the budget deficit. In the Seventh Five Year Plan, the tax collection as a percentage of GDP was targeted to be brought down to 14 percent, but in the last six-seven years, the ratio has come down from 11 percent to 8 percent. This is only one aspect of economic mismanagement.
As a result of overall corruption, free scope for money laundering, market syndicates, the daily life of the common man becomes unbearable.
Quoting data from the Bangladesh Bureau of Statistics (BBS), the interim government said that overall inflation was around 12 percent in July. Food inflation is even higher, exceeding 14 percent. During the last period of the previous government, the economy of Bangladesh has suffered a lot. The present interim government has to take over the responsibility of running the state in the unprecedented fragile situation of the economy caused by the total mismanagement of the previous government.
It is informed that the government needs to have a comprehensive picture of the country’s economic condition at the beginning when the interim government takes over. For this purpose, the idea of preparing a white paper rich in data and pictures of the existing economic condition of the country has been given.
According to the concept paper, the proposed white paper will have an overall picture of the country’s existing economy, as well as reflection on the government’s strategic steps in economic matters, implementation of SDGs and transition from LDC. It has also been informed that necessary consultation and exchange of views will be done with various stakeholders during the preparation of the white paper.
The issues proposed to be covered in the proposed White Paper are-
Public Finance Management, Inflation and Food Management, External Balance in Import-Export, Demand for Energy and Power, Supply, Pricing, Cost and Purchase Contracts, Private Investment, Employment at Home and Abroad.
It has also been informed that the country’s eminent personalities and distinguished economist Dr. to prepare the proposed white paper. A committee headed by Devapriya Bhattacharya may be formed. He may nominate the required number of members of the Committee in consultation with the Principal Adviser.
Committee outline as it may be
“ Committee members will serve unpaid.
“ Any suitable building in the Planning Commission complex may be considered as the office of the Committee.
“ The General Economics Department of the Planning Commission may provide secretarial support to the Committee.
“All Ministries/Departments/Departments/Organizations of the Government will provide all kinds of cooperation including supply of necessary information as per the needs of the proposed committee.
“ The proposed committee called the white paper formulation committee on the current economic situation of Bangladesh will hand over the report with recommendations to the chief adviser of the interim government within the next 90 days.