CPD for balancing trade, controlling import-driven inflation

The Centre for Policy Dialogue (CPD) has said the government should trim the demand for imports to fix the cracking macro-economy caused by trade imbalance.

Besides, the government should also go for import duty adjustment and improvement in market management to address the negative effects of the import driven inflation for the ensuing fiscal 2022-23.

The think tank expressed its views in its independent review of Bangladesh (IRBD) report titled “State of the Bangladesh Economy in FY 21-22,” and recommended the use of strategic food stocks, an open market operation and strengthening of social safety net programmes – especially food distribution and cash transfer programmes.

CPD Executive Director Dr Fahmida Khatun presented the keynote paper at a press briefing at CPD office in Dhaka on Sunday.

She said, “Inflationary pressure will hamper a sustainable and inclusive pandemic recovery, since the real purchasing power of many people will decline, causing further inequality.”

Fahmida said the economy is under tremendous pressure in view of the major 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 and fiscal policy is needed, particularly in view of the upcoming FY 2022-23 budget to keep the commodity prices under control, the CPD said.