Centre for Policy Dialogue (CPD) has proposed the government to reduce diesel and kerosene prices in order to lower production and transportation costs in agricultural sector.
It said cultivation, transportation, and processing costs go up if diesel price is hiked.
The CPD also pointed out that 'changes' are visible in the post-Covid economy, but the economic recovery activities have not been sustainable.
It has urged the government to announce new incentive package to keep the country's economy fully activated.
Besides, the CPD proposed the government to calculate the real demand of rice in the country.
"Production of rice has gone up. Import has also gone up. But, there is no impact of it on rice prices in the market. The prices of this common staple have been rising day by day. Now, time has come to determine the real demand of rice in the country," said the CPD.
CPD's Executive Director Dr Fahmida Khatun read out a report of the first six months' eceonomic progress of the current fiscal year of 2021-2022 at its office at Dhanmondi in the capital on Thursday.
Honorary Fellow Professor Dr Mustafizur Rahman, Senior Research Fellow Towfiqul Islam Khan and Research Director Khandker Golam Moazzem were present at the press conference and replied to the queries of journalists.
Dr Fahmida Khatun said some economic indicators like export earnings and revenue collections are positive, while some economic indicators like remittance, investment, providing incentives to small entrepreneurs, inflation, balance of payment, and implementation of annual development programmes (ADP) are negative. Beyond these, prices of some essentials in international market have been showing upward trend. As a result, a sort of challenge is prevailing in macro-economy.
The CPD's Executive Director said the government may increase the prices of fertlisers due to unusual price hike in international market. If it is done, the government's subsidies will increase manifold.
Besides, the government may feel the necessity of increasing gas price.
Though the ready-made garment export has increased, the apparel prices in international market have not increased. As a result, ready-made garment exporters are facing pressure.
The CPD also pointed out that though the revenue collection till October this year was good, it was far from the target. In the first four months of 2021-22 fiscal year, the revenue collection witnessed 16 per cent growth. But, in order to achieve the revenue earning target set in the national budget, growth in revenue collection should be more than 30 per cent.
Numerous small entrepreneurs who have been affected by corona pandemic should be given ongoing incentive package, said the CPD.
"The incentive packages announced by the government for the Covid affected entrepreneurs have been received by big entrepreneurs and loan defaulters, but many of the small-and-medium entrepreneurs have not received any incentive package. Though the Bangladesh Bank directed the banks to provide incentive facilities to the affected entrepreneurs, the banks have not yet made any definition of the affected entrepreneurs. As a result, the banks have been determining the affected clients in their own ways," it said.
SZA
