PM cautions about global recession, calls again for austerity, saving

Prime Minister Sheikh Hasina on Tuesday emphasised the need for increasing food production to counter the effects of the recession.

Briefing reporters after a meeting of the Executive Committee of the National Economic Council (Ecnec), Planning Minister MA Mannan said the PM had once again cautioned people to be careful, keeping the global situation in mind.

He said the government would increase support for agriculture to increase production. Allowances, seeds, fertilisers and water will all be made available alongside providing marketing assistance.

The internal market system should be kept functioning, he said, adding that the transport sector, too, would need stability.

Apart from this, Mannan also said inflation would be strictly controlled while food collection would be increased.

Development projects would also be carefully evaluated before they are given the green light.

The planning minister said economic distress might persist in 2023 as various international institutions and economists have predicted a recession.

As the global economic climate was headed towards uncertainty, the premier was focused on ensuring austerity in different aspects.

With regard to controlling inflation, Mannan said certain policy decisions on VAT, import duty and concessional benefits might be taken.

On the other hand, the government would also maintain liaison with traders to secure a supply of products to the market and ensure that no hoarding took place.

The planning minister said inflation in the UK had reached 10%, with their chancellor of the exchequer estimating it to reach 13% by next year. Inflation in the US has exceeded 10%.

Compared to them, he said, Bangladesh's inflation was 9.1%.

While the rate had increased in August to 9.52%, it had decreased in September, he said.

Mannan also highlighted the PM's initiative of distributing low cost rice to 1 crore families, which had a positive impact on the market.

He, however, stressed that the government alone could not tackle inflation, as global prices had an effect on the domestic market.

"If the ship fare increases, the price of products will increase. If oil and gas have to be imported at higher prices, inflation will also increase. If evil people hoard goods, inflation will increase. We have to control this hoarding," he said.

On rice collection, he said although the government had opened up rice imports, importers did not have to bring any as the country had sufficient stocks of the staple.

Mannan also said a report on the current economic situation of the country was presented to the PM at the beginning of the Ecnec meeting.

According to the report, disruptions in production and transportation would leave the fragile economy vulnerable to the ravages of the recession. Thus, those had to be maintained.

He said the prime minister had agreed to this analysis, adding that the report stressed the need for ensuring peace in society.

At the meeting, Sheikh Hasina again emphasised the need to prevent wastage.

She directed the members of the Planning Commission to also be careful in making sure that there was no wastage in any development project.

In this context, the premier said all projects had to be taken up on the basis of sound policies and not to maintain relationships with any person.

She also directed that all unnecessary expenditure be curtailed and the main spending go towards the core of any project.

Projects that were not required at present could not be sanctioned.

Welfare projects should be taken up and implementation should be expedited at the same time.

The planning minister said, "We are going through bad times. We are a small but emerging economy. Our growth was picking up nicely. But because of the big economies that control the world's market economy, the world is at risk. A small economy like ours is not responsible for this. But emerging economies like ours are the most affected."