Know the Inside Story
The people of Bangladesh have come out on the streets. People have become ‘protesters’ against skyrocketing fuel prices. People have turned to violence. The slowdown in Bangladesh has become such that the Sheikh Hasina government has increased the prices of petrol by 51.7 percent. And diesel has been made 49 percent expensive. Due to which the anger of the general public has broken out and they are protesting and doing violence by taking to the streets. They are now demanding to take back their increased prices.
The situation of recession in Bangladesh is that the IMF ie International Monetary Fund has agreed to give an economic relief package of up to $ 1 billion to the country. But Hasina had demanded a higher amount. Which the IMF has refused to give. The country’s foreign exchange reserves are left for only 4-5 months. Bangladesh Prime Minister Sheikh Hasina has described Russia-Ukraine as the reason behind this slowdown.
How Serious is the Economic Situation
A report by the Atlantic Council about the kind of economic situation in Bangladesh is clear from the picture. Bangladesh has demanded a $4.5 billion relief package from the IMF. Bangladesh wants to get this amount in the next three years. So that he can control the rising import bill. Apart from this, a loan of about $ 2.5-3 billion has also been demanded from the Japanese agency JICA. The report says that the current situation has been created due to high cost large projects, increasing default in the banking sector and misuse of resources in the power sector. It’s too much. Similarly, according to a World Bank report, the cost of road construction is the highest in Bangladesh.
Apart from this, Bangladesh’s foreign exchange reserves have come down from $ 45.7 billion in a year to $ 39.48 billion as of July 27 report. And this has resulted in Bangladesh’s trade deficit reaching $33.3 billion in June 2022.
What was the reason behind the recession ?
In a developing country like Bangladesh, the economy has been devastated due to the economic slowdown. Due to the Russo-Ukraine war, the demand for Bangladeshi cloth in the global market has decreased significantly. Let us tell you that the biggest contribution to the economy of Bangladesh is the business of exporting textiles there. There is a huge demand for Bangladeshi cloth all over the world. In such a situation, due to the Russo-Ukraine war, business has been deeply affected. Which is believed to be one of the main reasons for the slowdown in Bangladesh.
Apart from this, the tourism business of Bangladesh is also the backbone of its economy. But due to Corona, tourism is also facing recession for two-three years. Due to which the revenue of the country has suffered a lot. Let us inform that the inflation rate in Bangladesh had reached 7.56 percent. Which was the highest in the last 9 years. Due to shortage of fuel, Sheikh Hasina’s government has shut down diesel-powered power stations. Due to which after fuel, due to lack of electricity in the country, the public is becoming two thieves. Bangladesh, which is facing recession from all sides, has no other solution than to make fuel costlier to increase revenue. But now due to this wild increase in fuel, the people there have come out to protest on the streets.
We hope Bangladesh Economic Crisis Will be End Soon.Otherwise It will Danger for India Country also.