Commerce adviser explains comment on ‘rice price rise due to Padma Bridge’

Commerce adviser Sk Bashiruddin has said that large fiscal liabilities created by “unnecessary projects” such as the Padma Bridge, Karnaphuli Tunnel and Payra Port.

He said imprudent spending on these projects, combined with a 46 per cent depreciation of the taka over the past 15 years, forced the government to take large loans from the International Monetary Fund (IMF), the effects of which have ultimately been felt in the prices of daily necessities.

The commerce adviser on Sunday made the remarks at the secretariat while responding to newspersons’ questions about how the Padma Bridge had contributed to higher rice prices.

Earlier, on 19 January, at an event in Netrokona, he had said that the rice prices had increased by Tk 20 per kg due to Padma Bridge.

The comments came after a press briefing held following a meeting of the task force on the prices and market situation of essential food items ahead of Ramadan.

The briefing was attended by the commerce adviser, commerce secretary Mahbubur Rahman, Bangladesh Competition Commission chairperson AHM Ahsan, senior officials of agencies under the Ministry of Commerce, and business representatives.

When asked whether the Padma Bridge was therefore an unnecessary project, Sk Bashiruddin said that in 2008 government debt stood at Tk 2 trillion (200,000 crore), but by the time the Awami League government left office it had risen to nearly Tk 23 trillion (23 lakh crore).

“This means the overall liabilities increased significantly during this period,” he said.

“What was needed was to generate a budget surplus. That did not happen. Debt-financed expenditure did not generate income; instead, it created long-term liabilities.”

Giving examples of what he termed unnecessary projects, the commerce adviser said it had been claimed that the Padma Rail Bridge would generate Tk 14 billion (1,400 crore) in revenue, but actual income stood at only Tk 260 million (26 crore).

“It was also said that the Padma Bridge would increase GDP growth by 2 per cent. That did not happen; rather, growth declined,” he said.

“If this money had been spent on irrigation and fertiliser, and if expenditure had been aligned with actual needs, debt would have been lower and repayment capacity would have increased,” he stated.

The commerce adviser informed the media that imports of essential goods were more than 40 per cent higher this year compared to last year, which should help keep prices more stable ahead of Ramadan.

“In the meeting, we reviewed the current market situation and analysed production and import volumes. Business leaders have assured us that prices will remain under control during the upcoming Ramadan,” he said.

He added that overall market conditions were easing, citing stable gas supply, a stable exchange rate, and the absence of any shortage of US dollars.

Asked why the government was moving ahead with plans to construct luxury flats for ministers amid such market conditions, the commerce adviser said, “I’m not aware that the government has taken any such project.”

Commerce secretary Mahbubur Rahman said that supply conditions for some products were similar to last year, while in some cases supply was slightly lower, but expressed confidence that the market situation would remain favourable during Ramadan.