Give govt more time, but take bold economic steps

Renowned economist Prof Abu Ahmed has described the government’s performance during its first six months as “fairly successful”, saying it should be given more time to address the country’s longstanding economic challenges.

Speaking to the Daily Observer on Tuesday, he said six months was not long enough to properly assess the performance of an elected government facing a number of problems inherited from previous administrations.
“The banking sector is collapsing, but this is not the responsibility of the present government. The pressure of foreign debt is also increasing, which is not the present government’s fault,” he said.

He also pointed to shortages in electricity and gas supply, saying these problems had existed before the current government took office.

However, Abu Ahmed urged the government to pay greater attention to these issues.

“The government is already giving attention to these areas. Let us see whether the situation improves. Give them at least another year,” he said.

Asked whether the government could be considered successful after six months, he said, “Fairly successful. I think there has been some improvement, but more needs to be done.”

He stressed the need for “some bold steps” in the economy, suggesting that government-owned factories that are no longer operating effectively should be sold.

He also recommended leasing the management of Chattogram Port to an international operator, such as DP World, or another competent global operator, to improve efficiency.

Similarly, the third terminal at Hazrat Shahjalal International Airport could be leased to a foreign professional management company, he said.

On the capital market, Abu Ahmed said new companies should be brought to the stock market through listing.

“The benefits of direct listing should be considered,” he said, adding that the Bangladesh Securities and Exchange Commission (BSEC) was aware of the issue.
He stressed that tangible results must now become visible.

“Six months have passed talking about these issues. Now the results need to be visible,” he said.

Regarding social initiatives, Abu Ahmed said such programmes could make meaningful progress only if the economy moved upward.

“If the economy remains weak, employment will not increase and social programmes will not make the desired progress. Inflation will also persist,” he added.