Inflation Fully Resolving Without Elected Government Is Difficult: Economic Advisor

Staff Reporter

Economic Advisor Salehuddin Ahmed stated that achieving a complete resolution to inflation is challenging without an elected government. He attributed widespread extortion as a significant factor in the failure to control inflation effectively. Ahmed shared these remarks during an interview with BBC Bangla on Sunday, February 2.

Ahmed explained that extortion is carried out by both former perpetrators and individuals attempting to gain political footholds, in addition to local-level extortionists who remain active.

He identified inflation as a “legacy problem,” noting, “The current state of inflation hasn’t been seen in the past two to three years. Large-scale earnings occurred, and significant amounts were spent. Mega-projects worth billions are another issue because their returns and output take time to materialize. Bridges were built, but they haven’t yet impacted supply chains significantly. Simultaneously, remittances have declined.”

Ahmed added, “We haven’t completely failed to control inflation—some progress has been made. While food inflation has increased, non-food inflation has decreased slightly. Overall, inflation has risen, but we are trying to stabilize supply as much as possible.”

The advisor emphasized that supply chains have broken down due to the involvement of intermediaries. “For instance, transporting a truckload of goods from Mahasthangarh to Dhaka should cost 5,000 taka. Due to extortion, the cost rises to 12,000 taka. Extortion remains rampant.”

On the question of addressing extortion, Ahmed responded, “Political governments have the advantage of political arms, which we lack. You understand the limitations. A consumer rights protection law or a single magistrate cannot manage this issue alone.”

Regarding political challenges, Ahmed noted, “Political parties focus on elections and aim for power. Major parties with grassroots workers make it more difficult for interim governments to maintain control. Additionally, natural disasters, such as floods in Comilla and heavy rainfall in Sherpur and Mymensingh, have also contributed to the problem. That’s why inflation remains high.”

When asked if the issue could be resolved, Ahmed said, “We are trying and hope to bring inflation below 8% by June. However, reducing it to an ideal level of 5-6% is nearly impossible.”

Addressing syndicates, Ahmed remarked, “We are trying to break syndicates. Currently, we must rely on a few government agencies, which are insufficient. Market control through TCB cards or interventions by deputy commissioners and UNOs isn’t sustainable—they come once and leave. Police, too, are less active than before. Ultimately, public awareness is crucial.”