A clear roadmap for economy is absent

Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD), has raised questions over whether the interim government was ensuring transparency in formulating economic policies and holding dialogues with stakeholders for reforms.

At a pre-budget discussion jointly organised by NTV and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Tuesday, he cited the example of a new ordinance on tax reform that had been issued on May 12.

The ordinance sought to dissolve the National Board of Revenue (NBR) and replace it through the formation of two divisions -- one for policymaking and another for implementation.

This separation was earlier recommended in a white paper on the state of Bangladesh's economy, which was prepared by a panel led by Bhattacharya and submitted to the chief adviser on December 1 last year.

The separation of duties was recommended to avoid a conflict of interest, said Bhattacharya.

However, revenue officials embarked on a massive protest demanding to repeal of the ordinance and the development of the NBR as a separate and specialised institution.

With overseas trade and revenue activities suffering due to the protests, the government backtracked on its decision this week and promised to amend the law.

"When you do not fully follow the reform committee's suggestion and proceed to implement it (the new law) without any discussion, you inevitably face a regrettable consequence," said Bhattacharya, referring to NBR Chairman Abdur Rahman Khan.

"These will be the consequences even if you do the right thing without engaging in dialogue," he said.

He gave another example of how the stock market was now truly in a moribund state and, in a sense, had been sent to the intensive care unit.

If the Bangladesh Securities and Exchange Commission (BSEC) wants to bring about reforms in the stock market without consulting stakeholders, it will not be successful, Bhattacharya said.

"If there is no openness to dialogue, even a right approach can turn into a wrong one," he said.

"You must engage in discussion and give people the opportunity to speak. Otherwise, what has changed after the fall of a dictatorial government?" he questioned.

On the national budget for the upcoming fiscal year, he said he found no difference in the formulation of the fiscal measures.

The interim government has revised it, but there has been no structural change, said Bhattacharya, also a convenor of the Citizen's Platform for SDGs.

"Where are you giving incentives? Where are you granting exemptions? People do not know. The same lack of transparency that existed during the tenure of the previous dictatorial government is being witnessed now," he said.

He added that mega-projects which were undertaken by the last government were overvalued. "Where have you reduced it?" he questioned.

However, Bhattacharya said, the interim government deserves some thanks for a growth trend in foreign exchange reserves, stability in the foreign exchange market, and a gradual easing of inflation.

Nonetheless, a clear roadmap for the economy is absent, he said, adding, "There is no visible discussion on employment generation."

"What is the government's stance on disparity? This government must prove how it is different from the previous one and what it has done differently," he said.

"Will investors go for plans based on just your six-month plan? This government is legal, but it is not elected. What guarantee is there that the future government will continue its policies?" asked Bhattacharya.

Referring to World Bank data, he said, "Some 27 lakh people have become poorer during the interim government's period. Out of this, 18 lakh are women."

Responding to this, Anisuzzaman Chowdhury, special assistant to the chief adviser, said, "Do not go after it. This World Bank praised the previous government and legitimised that government.

"I can give you examples one after another," he said, adding that bringing about reforms during an economic crisis, which Bangladesh is currently facing, was very tough.

On the other hand, those opposing the reforms are well organised, he said, pointing at the NBR officials who staged the protest.

"These are the realities we are facing," said Chowdhury, adding, "Bangladesh's economy was in the ICU. It is no longer in the ICU."

Regarding discussions with stakeholders, he said he was engaging all stock market stakeholders to ensure sustainable reforms.

Abdul Moyeen Khan, a standing committee member of the Bangladesh Nationalist Party, pointed out that the NBR had not held discussions with the business community and political parties ahead of the national budget's formulation.

This was contradicted by NBR Chairman Khan, who said the NBR had indeed held talks with the entire business community and journalists and would try to incorporate their feedback.

"We will try to increase tax revenue, expand the tax net, and reduce non-tariff barriers," he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, Muhammad Abdul Mazid, a former NBR chairman, and Md Hafizur Rahman, administrator of the FBCCI, also spoke at the event.