Finance ministry needs to work with commerce ministry to control price hike: Finance minister

The finance ministry alone cannot control the price hike of commodities and will need to work in coordination with the commerce ministry to bring them down, the newly-appointed Finance Minister Abul Hassan Mahmood Ali said.

"The Ministry of Finance alone cannot control the prices of goods, we will work in coordination with the Ministry of Commerce. Time is needed to control commodity prices during Ramadan. Not all crises will disappear overnight," the minister said while speaking to journalists at the secretariat on Sunday (14 January).

He also deemed money laundering and the Bangladeshi currency losing its value as two challenges.

"Let's see what can be done in this regard, there are challenges, give us some time," he added. 

Earlier in the day, the newly appointed Finance Minister Abul Hassan Mahmood Ali stepped into his office with pressing economic and financial challenges demanding immediate attention.

To bring the new finance minister up to speed, a joint briefing was prepared by the ministry's four divisions — Finance, Financial Institutions, Internal Resources, and Economic Relations.

Despite Bangladesh's economic growth over the past 15 years, the new minister faces significant challenges ahead.

These include tackling money laundering, recovering huge non-performing loans, enhancing revenue generation, and ensuring transparency in project expenditures.

Abul Hassan Mahmood Ali already informed the finance division officials that he plans to be at the office early in the day.

Utilising information and feedback, the minister intends to formulate necessary plans to steer the economy back on track.

The Finance Division's briefing for the minister will highlight the challenges hindering control over inflation, declining foreign exchange reserves, and maintaining exchange rate stability.

An official from the macroeconomic department of the Finance Division told The Business Standard that Finance Division Secretary Md Khairuzzaman Mozumder will provide the minister with a comprehensive briefing on the apparent challenges and weaknesses of the economy and the context in which the current situation has unfolded.

"The finance division will brief the minister on its strategies to tame inflation, and provide information regarding the factors contributing to the budget deficit, as well as updates on the exchange rate and foreign currency," said the official.

The Financial Institutions Division will present the initiatives to amend various laws in banking reform and the current trend of default loans. 

The banking secretary will brief the new minister about the time-bound action plan signed by the Bangladesh Bank with the banks to bring down the non-performing loans of the state-owned banks under 10% by 2026.

eholders to gather insights from as many perspectives as possible."