Economists are sounding the alarm on the widening economic disparity in Bangladesh, drawing parallels to the pre-liberation era of East Pakistan. At a recent pre-budget seminar organized by the Economic Reporters’ Forum, experts highlighted the urgent need for policy changes to address the growing inequalities in the country.
Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, expressed concern over the rising inequality and its negative impact on inclusive development. He pointed out that the country is facing challenges in the education sector, leading to high unemployment rates, especially among National University graduates.
Rahman emphasized the importance of effective tax expenditure and proper utilization of assets to achieve sustainable growth. He criticized the government’s handling of the economy, citing unstable growth and high inflation as key indicators of a fragile economic situation.
Former finance secretary Mahbub Ahmed echoed Rahman’s sentiments, questioning the logic behind the banking sector’s interest rate policies. He emphasized the need for a more balanced approach to resource distribution to address the growing inequality and instability in the economy.
Industry leaders, including Anwar-ul Alam Chowdhury and Shams Mahmud, raised concerns about the impact of energy price hikes on competitiveness and job losses in the export-oriented industries. They called for continued incentives to support these industries post-graduation from the poor-country club.
In response, State Minister for Finance Waseqa Ayesha Khan acknowledged the global nature of the inflation problem and stressed the importance of technical education for employment generation. She assured that the upcoming budget would reflect the realistic scenario of the economy.
As Bangladesh grapples with economic challenges, experts and industry leaders are urging the government to take decisive action to reverse the course of widening disparities and ensure sustainable growth for all citizens.