Bangladesh to cut dependency on imported products alongside increasing exports to tackle any crisis

Prime Minister Sheikh Hasina reiterated her call to the countrymen to boost food production for their own, urging them to cut dependency on imported products alongside increasing exports to tackle any crisis. "Dependency on imported products has to be cut down and we all should try it," she said. The premier made this call while delivering her valedictory speech at the 20th session of the 11th Parliament.

Laying importance on intensifying production, she told the Parliament that her government has been trying to increase the export for earning foreign currency.

"Our (the government) only endeavour is to keep the country's people well and healthy," she said.

Mentioning that the country now has storage of 15,73,485 metric tonne of food grains, the prime minister said there is nothing to worry about. Besides, discussions are ongoing to import another 5.30 lakh metric tonne of rice from India, Myanmar, Cambodia and Vietnam while a few agreements have also been done already to this end, she informed.

In addition, works on importing 6.50 lakh of wheat are going on, she said, adding that imported rice and wheat have already started to arrive in the country from Ukraine and adjacent regions as Russia lifted the ban on export.

"But, it will take some time as a few more ships are waiting to arrive at our ports," she said. Sheikh Hasina noted the good news is that Aman crops in the country are growing well and the production is expected to exceed 163 lakh metric tonne beyond the target of 149.58 lakh metric tonne although flood and cyclone hit the country.

She revealed that the government is taking measures to collect the rice from farmers by increasing Tk2. Similarly, the country is able to yield Aus crop beyond the target while Boro production will also exceed the target, she added.

"Actually, we are laying emphasis on food production," she said, referring to her call to the people since the Covid-19 pandemic to produce food whatever they can in every inch of land. "Produce whatever you can and collect your food," she reiterated, saying that the crisis is the outcome of war and sanction. "I made this call (to the countrymen for food production) as a precautionary measure", she added.

The premier said that they will not leave any inch of land uncultivated in the upcoming Robi season. She, however, again made her call to the countrymen to exercise austerity alongside saving. The head of the government asked the Members of the Parliament to go to their constituency and make aware the people so that they do not waste. "We can overcome this crisis easily if we practice austerity and stop wastage," she added.

The Prime Minister said Bangladesh still has a good reserve of foreign currencies which is enough to meet up the five-month import expenditures.

"The forex reserve was $35.72 billion on 3 November 2022. Still, it is possible to import goods for five months with our reserve of foreign currencies. But the forex to meet up three-month import expenditures is enough according to the international standards," she told the Parliament. Sheikh Hasina said everyone now talks about the reserve and everyone has become an expert on it. But the reserve was only $2.12 billion in 1996 but her government raised it to nearly $4 billion in 2001, she added.

She said the Awami League government, assuming power again in 2009, found a forex reserve of $5.35 billion on 6 January 2009, which was raised to $17.47 billion on 8 January 2014, $32.09 billion on 7 January 2019, $36.04 billion on 30 June 2020 and $46.39 billion on 30 June 2021. She continued that the forex reserve went up to nearly US$ 48 billion during Covid-19 as the import of goods declined sharply and the capital machinery was not imported during the pandemic.

But, when the Covid restrictions were withdrawn, the imports of goods normally increased and so, the forex reserve declined, she added. She, however, stressed the need for reducing the import of luxurious goods and the imposition of high taxes on the import of less necessary products. Besides, Sheikh Hasina, in her speech, focused on the government's steps taken to ensure enough stock of foods, to ease the dollar crisis, lessen import expenditures and expand food-friendly programmes including OMS.

She also highlighted subsidies to different sectors, expansion of the social safety net, export growth, the dengue outbreak, and the number of the government's loans and foreign debts. Regarding the dengue outbreak, the prime minister called upon the country's people to keep their houses and adjacent areas clean to prevent the mosquito-based disease.

Mentioning that the government is taking necessary measures to kill mosquitoes, she said "everyone in their house has to protect themselves by their own." The Aedes mosquito lays its eggs on the walls of water-filled containers and others for its proliferation, she said adding everyone has to make their house clean.

Regarding the present situation, the prime minister said now Bangladesh is also facing the consequences of the global economic crisis caused by the Russia-Ukrain war, sanctions and counter-sanctions following the Covid-19 pandemic. "Bangladesh is not isolated from it. Bangladesh is to suffer its consequences," she said.

She said inflation has hit dire records in almost all countries across the world. The continuous rise in the value of the dollar against different currencies deepened the crisis further, she added.

About the subsidy, the premier said the government needs to provide additional subsidies to different sectors including electricity, energy, food imports, and food-friendly programmes due to the crisis. The total demand for the subsidy has increased by Taka 105,105 crore, she said.

Talking about the food, she said there is nothing to be worried about as there is a stock of 1,573,485 tonne of food grains right now. Besides, the government has taken steps to import more food. Sheikh Hasina said now 29% of families in the country were brought under the social safety net and different food-friendly programmes were strengthened and OMS (Open Market Sale) scheme was taken up to Upazilas. "We've taken preparation to provide a larger amount of essentials to the poor through OMS," she said.

"We've been working for the people of the country. We're making our best efforts so that the people of the country remain well," she said.

The head of government said the export earnings and remittance inflow witnessed positive growth of 7% and 2% respectively during the July-October period of the current fiscal year, while the LoC (letter of credit) opened for import declined by 11.7%.

She said the government has taken special eyes so that there would be no dollar crisis in the country from January 2023. About the foreign debt, Sheikh Hasina said the total loan of the government is only 36% of the GDP and its foreign debt is only 13.5% of the GDP. "After the formation of the Awami League government, we (Bangladesh) never failed to repay loans or loan defaulters and will not be a failure in future," she said.

"We've been trying our best to keep our economy vibrant," said the Prime Minister. Later, the 20th session of the current parliament, which lasted for six sittings, was prorogued. Speaker Dr Shirin Sharmin Chaudhury read out the prorogation order of the President for the session that started on October 30 last.