Bangladesh: Consultants slam Yunus-led govt’s ‘mistaken’ financial insurance policies
The financial insurance policies of the present Bangladesh interim authorities led by Muhammad Yunus have come beneath criticism from its personal stakeholders. The director-general of the Bangladesh Institute of Improvement Research and former economist at Bangladesh Financial institution, Mustafa Ok. Mujeri, has said that the present interim authorities is adopting the mistaken insurance policies on the mistaken instances.
“It has been six months for the reason that interim authorities took over. Sadly, there was nearly no success within the monetary sector of the nation presently. The financial system has largely stagnated resulting from some core issues, reminiscent of a excessive inflation fee and a sluggish tempo of monetary progress. There has not been a lot success by way of different issues now we have. Because of this, the financial system is but to bounce again,” said a report revealed in main Bangladesh every day Prothom Alo.
The report additional quoted Mujeri as saying, “There’s a frequent sample of the financial insurance policies adopted to this point by the interim authorities. And that’s adopting the mistaken insurance policies on the mistaken time. The results will not be good within the coming days.”
In keeping with one other report by Bangladesh’s main enterprise every day, The Monetary Specific, the interim authorities of Bangladesh is dealing with formidable macroeconomic challenges, specifically, reining in inflation.
The nation grapples with slowing GDP progress, foreign money devaluation, monetary disaster, and looming debt. Mustafizur Rahman, an economist who has intently adopted Bangladesh’s financial system for many years, mentioned, “It seems that the financial system has fallen right into a vicious cycle.”
He cited the authorities’ pursuit of a contractionary financial coverage, which has elevated the price of funds, inhibiting non-public funding, in response to a number one Bangladesh newspaper, the Each day Star. “The federal government’s resolution to lift value-added tax (VAT) on practically 100 items and providers has stoked inflation and additional eroded the buying energy of extraordinary residents. In the meantime, within the monetary sector, default loans have continued to pile up,” he additional added.
The financial system of Bangladesh has been dealing with extreme challenges amidst the massive unrest within the nation since August 2024. The enterprise sector within the nation is dealing with an enormous liquidity crunch, with quite a few business and industrial institutions shutting down. The entrepreneurs in Bangladesh are dealing with difficulties in importing uncooked supplies to maintain their companies.
