CPD for reducing diesel, kerosene prices

Civil society think tank Centre for Policy dialogue (CPD) yesterday said the apparent macroeconomic stability provides the government additional space to formulate an expansionary budget for FY 2018 for sustainable acceleration of economic growth momentum with enhanced employment opportunity. 

CPD recommended reducing kerosene and diesel prices to provide some relief to investors and consumers, which will have a positive impact both on the economy and society.
“The prevailing macroeconomic stability attributed to restrained budget deficit, sliding inflation amid low level of global commodity prices, declining interest rate, positive balance of payment and stable exchange rate creates opportunity for the government to formulate expansionary national budget,” CPD said.  
The CPD presented its economic analysis on “State of the Bangladesh Economy in FY 2016-17” and its Budget recommendations at a programme held at the BRAC Centre Inn in the capital yesterday.
Research fellow of CPD Towfiquul Islam Khan made the presentation on organization’s economic analysis.
Among others, executive director of CPD Dr Fahmida Khatun, distinguished fellows Dr Debapriya Battacheya and Prof. Mustafizur Rahman addressed the briefing.
However, CPD said that there is lacking of efficiency in implementation of budget.
It also suggested that the government needs to focus on lowering the interest rate of National Savings Bond (NSD) and adjustment of fuel prices and exchange rate to sustain the growth for the next fiscal year. 
Like earlier, it proposed that there is reform required in the banking sector, and public investment towards economic sustainability.
The CPD also recommended curtailing of diesel and kerosene prices.
It argued that the two fuel items - diesel and kerosene - are used mostly by the poorer segment of the society.
“So, it will not bring about so much social and economic benefits if the government makes much profit out of these two fuels,” said the CPD.
Currently, the government-run Bangladesh Petroleum Corporation (BPC) imports fuels and sells them at administered prices and the corporation makes a huge profit, thanks to lower prices of oils internationally.
CPD argued that the poor people will be benefited if the prices of diesel and kerosene are slashed down.
CPD also made five-point recommendations to overcome weaknesses in implementing the national budget.
Curtailing of the diesel and kerosene price is one of the five-point recommendations. The four other recommendations are: devaluing taka for ensuring benefits in the sectors of exports and remittances, reducing the interest rate of savings certificates, controlling the rice price, and forming an independent financial sector reforms commission to remove the weaknesses in the banking sector.
Dr. Debapriya said the macro economic situation is favourable for the government to prepare an expansionary budget for the next fiscal.

CPD for reducing diesel, kerosene prices

Civil society think tank Centre for Policy dialogue (CPD) yesterday said the apparent macroeconomic stability provides the government additional space to formulate an expansionary budget for FY 2018 for sustainable acceleration of economic growth momentum with enhanced employment opportunity. CPD recommended reducing kerosene and diesel prices to provide some relief to investors and consumers, which will have a positive impact both on the economy and society. The prevailing macroeconomic stability attributed to restrained budget deficit, sliding inflation amid low level of global commodity prices, declining interest rate, positive balance of payment and stable exchange rate creates opportunity for the government to formulate expansionary national budget, CPD said. The CPD presented its economic analysis on State of the Bangladesh Economy in FY 2016-17 and its Budget recommendations at a programme held at the BRAC Centre Inn in the capital yesterday. Research fellow of CPD Towfiquul Islam Khan made the presentation on organizations economic analysis. Among others, executive director of CPD Dr Fahmida Khatun, distinguished fellows Dr Debapriya Battacheya and Prof. Mustafizur Rahman addressed the briefing. However, CPD said that there is lacking of efficiency in implementation of budget. It also suggested that the government needs to focus on lowering the interest rate of National Savings Bond (NSD) and adjustment of fuel prices and exchange rate to sustain the growth for the next fiscal year. Like earlier, it proposed that there is reform required in the banking sector, and public investment towards economic sustainability. The CPD also recommended curtailing of diesel and kerosene prices. It argued that the two fuel items - diesel and kerosene - are used mostly by the poorer segment of the society. So, it will not bring about so much social and economic benefits if the government makes much profit out of these two fuels, said the CPD. Currently, the government-run Bangladesh Petroleum Corporation (BPC) imports fuels and sells them at administered prices and the corporation makes a huge profit, thanks to lower prices of oils internationally. CPD argued that the poor people will be benefited if the prices of diesel and kerosene are slashed down. CPD also made five-point recommendations to overcome weaknesses in implementing the national budget. Curtailing of the diesel and kerosene price is one of the five-point recommendations. The four other recommendations are: devaluing taka for ensuring benefits in the sectors of exports and remittances, reducing the interest rate of savings certificates, controlling the rice price, and forming an independent financial sector reforms commission to remove the weaknesses in the banking sector. Dr. Debapriya said the macro economic situation is favourable for the government to prepare an expansionary budget for the next fiscal.