Bangladesh's overall inflation has remained relatively stable, with a recent decline in non-food inflation, Finance Adviser Dr Salehuddin Ahmed said on Tuesday (September 16).

He said, “The main issue lies in the wholesale and retail markets, where pricing has deviated from economic fundamentals — a situation less common in other countries.” 

While speaking to reporters following a meeting of the Cabinet Committee on Government Purchase at the Secretariat in Dhaka, the adviser said that inflationary pressure had not intensified despite increased imports. he added.

In response to a question about the impact on consumers, Dr Salehuddin Ahmed said the government continues to provide subsidies through initiatives such as the Trading Corporation of Bangladesh (TCB), ensuring that price fluctuations do not burden the public.

Addressing concerns over rising import tariffs amidst an ongoing visit by a US trade delegation, the adviser said tariff decisions fall under the jurisdiction of the Ministry of Commerce. 

He acknowledged that importing some goods — such as wheat — from countries like the United States may cost more than from Vietnam, but he noted the superior quality of such products. “We aim to avoid excessive tariffs while reducing trade deficits,” he said.

Regarding employment, the adviser admitted that job creation remains a major challenge, particularly as most employment is generated in the private sector. 

He acknowledged that any slowdown in business activities can directly affect employment levels. “Some economists may describe the situation as dire to draw attention, but we are alert to the issue,” he said.

On the business climate, he said, “There was a slowdown in the middle, but things have improved somewhat.”

Turning to tax administration, he said efforts are underway to simplify the tax filing process. “We’ve engaged lawyers to expedite proceedings. Many people struggle to fill out tax forms, so if we can offer this service for a nominal fee, it will benefit everyone,” he explained.

Asked whether political matters were discussed in the procurement meeting, Dr Salehuddin Ahmed replied that the committee does not deal with political issues, although economic topics are occasionally reviewed. “We are trying to consolidate the economic front,” he said.

He also disclosed several decisions made at the joint meeting of the Economic Advisory Council and the Cabinet Committee on Public Purchase. These include approval for establishing new power substations in remote areas, initiatives for LNG imports, and procurement of fertilisers. 

SMS/