Noted economists recommended focusing on macroeconomic stability, publishing the names of top loan defaulters, and forming a review commission on government expenditures.

The economists presented the recommendations at a pre-budget meeting with Finance Minister Abul Hassan Mahmood Ali at the Padma Guest House in Dhaka on Sunday.

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Expose, punish willful loan defaulters

Prof Rehman Sobhan, a noted economist, said the government should publish the names of top loan defaulters. It also should identify willful defaulters and take necessary steps to punish them.

The country has proper laws and institutions, but the laws are not applied, he said.

Salehuddin Ahmed, former governor of Bangladesh Bank, said the government should reduce expenditures, but first it needs to restore macroeconomic stability.

"If necessary, the government can reduce expenditures on mega-projects, but health and education spending should be increased."

Ahmed recommended forming an expenditure review commission so the government can utilise its limited revenue properly.

Finance Minister Ali said economists praised the government's steps and said they were on the right track.

About publishing the names of top defaulters, the minister replied: "Let's see".

Prof Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, recommended raising direct taxes and reducing indirect tax as the latter disproportionately impacts the poor.

There should be focus on digitisation and governance in the tax administration to reduce corruption, he added.

Rahman further said that the government had taken some correct steps, but they should be implemented properly.

Ahsan H Mansur, executive director of the Policy Research Institute, said a market-based foreign exchange rate would reduce pressure on foreign exchange reserves.

Binayak Sen, director general at the Bangladesh Institute of Development Studies, Prof Abul Barkat, a former chairman of the economics department of the University of Dhaka, Mamun Rashid, managing partner of PricewaterhouseCoopers (PwC) Bangladesh, Fahmida Khatun, executive director of the CPD, and Masuda Yasmeen, chairman of the economics department of the University of Dhaka, were among those present at the event.

The economists said that the contractionary monetary policy was on the right track, adding that the fiscal policy should be similar.