Interim Govt's Economic Recovery Called 'Miracle' by Press Secy

Shafiqul Alam, the Press Secretary to the Chief Adviser, praised the interim government for its remarkable turnaround of Bangladesh's economy, calling the recovery from a "fragile" state a "miracle." Speaking at the Development Journalist Forum of Bangladesh (DJFB) Talk held at the NEC Conference Room in Sher-e-Bangla Nagar, Alam outlined the significant progress made over the last six months following the removal of the Awami League government.

"When we took over, we inherited an economy on the verge of collapse, a situation that could have spiraled into disaster," Alam stated. "In just six months, we've managed to revive it — I truly call this a miracle."

The Press Secretary emphasized the importance of energy as the driving force behind economic growth, explaining that without a stable energy sector, a nation's economy cannot function efficiently. He criticized the previous government for hastily attempting to address energy issues, resulting in what he called "serious looting and plundering." According to Alam, the energy system under the Awami League was designed in a way that allowed for massive corruption, particularly through unsustainable capacity charges.

Alam further pointed to the taxation system under the former regime, where the tax-to-GDP ratio was a mere 7.3 percent. This ratio was far below that of advanced economies, which often range from 12 to 20 percent. "With such low tax revenues, how can development projects be sustained?" he asked. He accused the Awami League of mismanaging funds, with projects seeing up to 70 percent increases in costs due to political influences, creating opportunities for financial mismanagement.

Referring to findings from the White Paper, Alam revealed that around $234 billion had been illicitly sent abroad under the previous regime. "Had these funds remained in the country, they could have been reinvested, creating jobs and boosting the economy," he said.

Describing the economic situation inherited by the interim government as "TB-affected," Alam explained that the priority was to "treat the disease" before focusing on recovery. He described the last six months as a process of healing, adding that, thanks to reform efforts, the economy was "regaining its strength."

Highlighting positive signs of recovery, Alam noted that inflation had been on the decline for two consecutive months. "We anticipate that by June, inflation will be around 7 percent, which will bring much-needed relief to the people," he stated. He also pointed out that commodity prices were falling, contributing to a stable exchange rate and overall economic stability.

Alam lambasted the previous government's handling of macroeconomic stability, particularly the disastrous policy of maintaining the same deposit and lending rates at 9 percent, which he claimed undermined the economy. He accused the previous regime of "daylight robbery" in the banking sector, pointing to large-scale financial mismanagement.

Despite the challenges, Alam expressed confidence in the interim government’s ability to restore economic growth. He credited recent labor sector reforms, improvements in the efficiency of the Chattogram Port, and initiatives to modernize the energy sector as key factors in the recovery process. “We are also exploring solar power, the Bangladesh-India-Bhutan-Nepal SA Electricity Grid, and tapping into hydropower potential,” he added.

Addressing the country's high unemployment rate, Alam stressed the importance of Foreign Direct Investment (FDI) to create jobs. He noted that the interim government had already reversed policies that had prevented foreign companies from repatriating profits during the previous regime. "We are sending the right signals to global investors," he said, adding that foreign investors now see Bangladesh as a country that is committed to fighting corruption and improving its business climate.

"We are confident that by digitalizing government operations, improving port efficiency, and ensuring energy stability, Bangladesh will become a top performer in the global economy," Alam stated.

Regarding law and order, Alam mentioned that the government had implemented nine measures to address the issue, with promising results expected in the near future. He also assured that the Central Bank Governor had issued strong directives to restore discipline in the banking sector, ensuring that depositors' interests would be protected.

In response to another question, Alam highlighted the government’s ongoing focus on agriculture, emphasizing measures aimed at achieving food self-sufficiency. "The interim government is committed to supporting agriculture, ensuring food security, and improving the livelihoods of our people," he concluded.