Bangladesh’s Finance Minister Salehuddin Ahmed tells CGTN’s Natalie Carney the country is committed to private sector-led growth, responding to the IMF’s calls for more economic flexibility.
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00:00From January 2025, things are picking up. Export is higher, export growth is positive,
00:06payment is higher, current account balance is very good, and business people are having
00:12confidence on us because it's a confidence which is very important for the business people.
00:17Now, inflation peaked well above the target of 5 to 6 percent. What immediate and midterm
00:22measures should be taken to bring that inflation down and keep it in check?
00:26The inflation is steadily coming down. Recently, the April figure is only 9.2, so it was 12
00:32something and it was coming down to 9.2, especially food inflation is going down. Our projection
00:38is by the end of June, we'll try to reach at 5, but there are two front of activities. One
00:43on the demand side, where the monetary policy has been tightened, the supply of money. So
00:49the increase in the policy rate of the central bank has been increased so that the credit
00:54flow to the private sector is a little bit limited, import becomes a little bit restricted,
01:01so that there is a kind of a demand managed, so demand is reduced. On the other hand, most
01:05important is supply side factors, where you have to provide supply of the goods and services.
01:10The problem has been, due to this, from August last year to the slab supply chain has been broken.
01:16So we are trying to restore first the order in the market and also supply of goods. And that is the
01:22reason what we have done, we have ensured supply of food items, essential items in the market. And we
01:28have reduced many import duties, so that supply increases. So things are a little bit under control.
01:34The TACA has come under quite a bit of pressure, with the IMF recommending greater exchange rate
01:41flexibility. Now, do you support a market-driven exchange rate and economy?
01:46We do believe in market-driven economy, of course. We believe in private sector-led growth. And the
01:52question is when to do it. We don't say that TACA should not be flexible. We don't want to introduce
01:58volatility again. You see, if the sudden peaks, and if it continues, like Pakistan, it had,
02:05Sri Lanka it had, we don't want to repeat, because our position is much better. So we are
02:10talking to the IMF, and we will definitely agree at what point we will do. And the main
02:15question of the modality is how to control it.
02:18Thank you so much for your time.
02:20Thank you very much.