Boosting production, supply, monitoring syndicates to tame inflation: Salehuddin

The government is monitoring syndicates to control inflation, in addition to increasing production and supply, Financial and Planning Adviser Salehuddin Ahmed said today (15 August).

"Urgent steps are being taken to keep inflation at a manageable level. However, prices won't drop overnight, nor will they take decades. We aim to reduce inflation within a reasonable timeframe," he told journalists after a meeting at the Secretariat focused on reviewing the inflation and food supply situation and bringing inflation to a tolerable level.

Ahsan H Mansur, who took charge of the Bangladesh Bank as its new governor on Wednesday, said inflation is expected to decrease in the next four to five months.

Emerging from the meeting, the finance adviser further said, "We will take swift action to control inflation, but it won't slow down as quickly as reining in a horse."

"The prices of goods are already coming down. I've heard that vegetable prices are decreasing for various reasons. We hope that with the steps we are taking, inflation will reduce to a more bearable level. The authorities concerned will take immediate action," he added.

"Prices won't drop overnight, nor will they take decades. We aim to reduce inflation within a reasonable timeframe"

Adviser Salehuddin Ahmed

Salehuddin also mentioned that he has instructed secretaries to avoid spending time praising him and to provide honest information, whether good or bad.

"There are many legal issues involved in appointing a governor. We resolved them in three days. I quickly spoke with the chief adviser, discussed it in the cabinet, and consulted with the president. Such approvals would not have been given at any other time; it would have taken at least three months to decide on the appointment," he said.

In response to concerns about whether other corruption issues, including those involving former top official of the National Board of Revenue Matiur Rahman, might be covered up due to recent violence, the financial adviser stated that nothing will be overlooked.

"Nothing will be covered up. We will continue addressing these issues," he affirmed. "We will not waste money. Don't worry. We will implement what we set out to do. We will achieve as much as we can."

During the meeting, Bangladesh Bank Governor Ahsan H Mansur said, "The reserve crisis will not be resolved overnight. However, the supply of dollars in the market will not be reduced to unreasonable levels. I will discuss with development partners how to increase the reserve."

He added, "The foreign exchange supply cannot be reduced to unreasonable levels, as this would erode market confidence. We will ensure adequate supply to support imports while maintaining reserves at a satisfactory level. However, we must also meet our due payments."

He noted that, while the government must proceed cautiously, it continues to make progress.

"We will consult with our development partners on how to further increase the reserve. Overall, we will make the effort, and hopefully, we will begin to see positive results in a few months," he hoped.

When asked about the formation of a banking commission, he responded, "It was not discussed today, but we will definitely address it. Reforming the banking sector is essential. The government will determine the approach. The Bangladesh Bank will collaborate with the government and consult stakeholders to develop a roadmap."

He added, "Banking sector reforms might involve mergers, re-capitalisation, or policy changes. These are potential options, and we need to assess how and where they will be implemented on a case-by-case basis."

Finance Secretary Khairuzzaman Mozumder, Commerce Secretary Selim Uddin, Bangladesh Trade and Tariff Commission Chairman Ahmed Munirus Saleheen, Industries Secretary Zakia Sultana, Food Secretary Ismail Hossain, and central bank deputy governors Habibur Rahman and Nurun Nahar, were present at the meeting.