Centre for Policy Dialogue on Sunday said that the current situation of balance of payment which entered into the negative territory this year after 2003 was an emerging concern for the country’s economy.
The overall balance situation has become negative after so many years due to the growing trade deficit which could not be compensated, like previous years, with remittance earnings, it said.
The country’s debt servicing liabilities will rise in near-to-medium future with building up of repayment pressure from the growing borrowings in the backdrop of the BoP trends.
The research organisation emphasised a renewed effort to energise export growth through product and market diversification, prevent illicit financial flows, strengthen debt servicing and ensure prudent exchange rate management for improving the BoP situation.
CPD made the recommendation at a press briefing arranged at the BRAC Centre Inn in Dhaka to release its latest report titled ‘the state of Bangladesh economy and upcoming national elections: priorities for electoral debates’.
CPD distinguished fellow Mustafizur Rahman, while presenting the report, said that the government should take a zero-tolerance policy to prevent illicit financial flows particularly through trade-based money laundering.
He also sought special attention of the government to financing the medium-scale enterprises as the sector has a greater role in creating more jobs.
Improvement in education system, skills development through technical and vocational training should get priority to address the youth unemployment issues, he said.
Otherwise, the country will get educated but unemployed youth generation, he added. In the report, CPD also recommended that the government invest more resources on quality education healthcare services.
Raising revenue-gross domestic product and tax-GDP ratio should also get priority to meet the resource requirement for economic and social development of the country, it said.
CPD distinguished fellow Debapriya Bhattacharya, executive director Fahmid Khatun, research director Khondaker Golam Moazzem and senior research fellow Towfiqul Islam Khan spoke, among others, at the briefing.
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