Gener

alpur
pose:Toi
nfor
m.

Speci
fi
cpur
pose:Toi
nfor
m audi
encet
heaboutr
easonsf
orwhyour
economycol
l
apsedi
nlast8y
ear
s.

Cent
ralI
dea:Economy i
sav
eryi
mpor
tanti
ssue f
orany count
ry'
s
devel
opment.Accordi
ng t
oI MF,The mar ketBased & middl
ei ncome
st
economyofBangladeshisoneoft hefastestgrowi
ngand41 l argest
economi
esinthewor l
d.Atpresent
,ourGDPgr owthr
atei
s7.1%. Butf or
somereasonoureconomyarecoll
apsed.

ECONOMI
CALCOLLAPSEOFBANGLADESH
Atthebegi
nningofmyspeech,Iwanttotal
kaboutaneconomi
coutcome.
I
nourcount ry,whenachil
di sborn,hegr owsupwithhisdebtof80
thousandt
aka.Whatki
ndofeconomicsit
uati
oniti
s!!

Themar ket
-based&mi ddl
ei ncomeeconomyofBangl adeshisoneofthe
fast
estgrowingand41stl argesteconomiesi nthewor ldwitharateof
7.1%.
Inthedecadesince2004,Bangl
adeshav er
agedaGDPgr owthof6.
5%,
thathas been lar
gely dr
iven by i
ts exports ofr eadymade garments,
remit
tancesandthedomest icagri
cul
turalsector
,textil
es,jut
eandleat
her
goods,phar
maceutical
s.

Forsomer eason,oureconomyal socol

lapsedi
nlast8y ears.Thoseare
pol
iti
calinstabi
li
ty,economicalcorr
upt
ion,Bank loan defaul
ters,Tax
col
lecti
on fai
lur
e,Disquali
ficati
on ofbudgetimpl
ementation and Poor
i
nfr
astruct
ure.

Pol
i
ticali
nst
abi
l
ity
:Pol
i
ticalst
abi
l
ityr
anki
ng i
s Bangl
adesh 172nd
posi
ti
onwi
thani
ndexof-
1.15.Thi
sindi
cat
est
hatBangl
adeshi
smost
ly
affectedwi thpoli
ticalinst abil
it
yt hatisempi ri
cal
lyaffectstheeconomic
growt hofBangl adesh.Pol it
icalinstabi
li
tyhasv ar
iousf or
mssuchasci vi
l
war ,socialunrest
,har t
als,st ri
keet c.Thesetypesofact i
vi
ti
esoccuratthe
ti
meoft ransit
ionofgov er nancewhent hereisthediff
erenceofsuggesti
ng
di
fferentsol ut
ion.Smalli ndust r
iesar emost l
yaf f
ectedbyt hesepolit
ical
i
nst abil
i
ties.The r elati
onshi p bet ween economic gr owth and pol
it
ical
st
abi
l
ity ar
e mor
e compl
ex t
han i
s wi
del esumed. Ec
y pr onomi
cal
cor
rupt
ion:I
nsomecor
rupt
ion,wecant
alkaboutt
heRuppurnucl
ear
powerpl ant
. Thereport
scl aimedthateachpill
owwasboughtf orTk5,957,
andthecostofcar ryi
ngi ttoanapar tmentwasTk760.Anel ectr
icstove
carr
yingcostf rom thegroundfloort othet
oponecostTk6, 650.Thepr i
ce
ofanelect r
icironwasTk4, 154andt hecarr
yingcostTk2,
945.Actuall
yfor
corr
uption,Nopr oj
ectiseconomi call
ysustainabl
e,i
tiscr
eat i
ngf or
eign
debtonly.

Insharemar ket
,thosemonkswhohadcommi tt
edsel fmakebankr uptcy
duetodebtof700t o1000coresaf ew yearsago;t heyhav erepai
dt hei
r
l
oant othebanki ntwoyear
sandowni ngmor ethanTk10bi ll
i
on.Fort he
sharemarketscandal,
30to40thousandcr or
eswentabr oadandt heshare
marketwentdownt o10per
centfrom 62per cent.
Butourfinancemi ni
ster
tol
dthatthesearemafia,wecannotspeak.Whatadi sgraceforacountry.

Wecanal sotalkaboutt
heHal lMarkScandl
e.Theloanscam occurr
ed
whenonebr anchofSonaliBankil
l
egal
lygaveout$454mi l
li
on(BD t
aka
3400core)inloans,i
ncl
udingnear
ly$344mi l
li
ontoHall
markGr oup,a
text
il
ebusi
ness.

Airt
elCompanyhasscampedt wothousandcoresharesanddidnotgive
stampdutyof95cor etakatoBangladesh.WehavegivenTk20bi l
li
onin
subsidyt
oourel ectr
ici
typlantfort
heaut oBcompany'scor
rupti
on.I
fwe
wishwecanr epairGhora-salPowerPlantwith10thousandcores.Our
economyhasbeenhost aget oSummitGr oupandOr
ionGroup'sbygivi
ng
2400MW elect
rici
ty.
Taxcol
l
ect
ionf
ail
ure:Thenumberofi
ncomet
axpay
ersi
nthecount
ry
amongf ourcoremi ddl
e-i
ncomepeopl eis21t o22lakh.Outoft hetwo
l
akhsofsal ar
ywor kerscomet othecountr
yearningTk85,000cor e,in
which45per centofouryoungpeopl ear
eunemployed.
Butnoincomet axis
broughtt ot
hem.I ft
heygive20%i ncometaxtheni
tcomest o17thousand
coret aka.Publicincomet axpay erspaybribeofsalar
iedgov ernment
employ eeseveryyearto11t housandcoret
aka.WhyshouldIgiveincome
taxthoughpaybr i
bet ogetmyser vi
ce?

Di
squal
i
ficat
ionofbudgeti
mpl
ement
ati
onandPoori
nfr
ast
ruct
ure:
In2010- 11,thebudgetimplement at
ionrat ewas97per cent,
whi chcurrent
ly
standsat76per cent
.Itisonly30t o40per centoftheannualdev el
opment
program int herest9to10mont hsoft hefiscaly ear.Itdoesnotsayhow
thequal it
yoft hisdevel
opmenti s.Between2010and2016,mor et han40
thousandcor etakawerespenti nr oadr epairandmai ntenancei nthese7
years.Butt hesecondwor str oadi nAsi ai sBangladesh.Whent henewl y
constructed school col l
apses,t he cei li
ng cement of t he hospi t
al
coll
apses, i
njur
edandki l
l
edt hepeopl e,
theni tisnormal t
oaskt hequest i
on,
howeconomi cdevel
opmenti tis!
!

Bankl
oandef
aul
ter
s:I
ntheAsi
aBangl
adeshachi
evet
het
opposi
ti
onf
or
thebankloandef aul
ter
s.Atpresent
,bankdefaul
tloanrat
ehasr eached
12%,whichi
s1l akhtenthousandcore.I
ftheevasi
onloanisaddedtothe
l
oanthenitwil
lbeTk4bi ll
i
on.Alt
houghintheworl
doutsi
deitsamountis
onl
y3.3%.

Now,t hegovernmenti sgoi ngt oborrow mor ethanTk97bi l

li
onint he
budgetdeficit
.Asar esult,
nomor emoneywi llbelef
tforprivatei
nvestment
i
nt hebank.Inflati
onwi llincreaseiftakenfrom BangladeshBank.Ov era
decade,pr
ivat
einvestmenthasr emainedfixedat22per centinourcountry.
Forei
gn tr
ansacti
on r el
ations also negati
ve.We have Thi rt
y five bil
li
on
doll
arsafewday sago, i
tisnowThi rtybil
li
ondollar
s. 

Fi
nanceMi
nist
erAHM Must
afaKamalhassai
dBangl
adeshwoul
dnot
i
mplementbudgetwitht
hebankloanby2030andthecount
rywi
llpr
ovide
l
oantoothercount
ri
es.I
fwecanovercomethesepr
obl
ems,wecancreate
adebtf
reebudget.
Thenitwi
l
ltaket
hereal
i
ty.