Gas and electricity prices: Take FBCCI's concerns into cognizance
Leaders of various business organisations, including the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI), held a press conference on Saturday and put a number of proposals before the government to overcome the economic crisis. These include not raising gas and electricity prices at the moment, keeping inflation at a tolerable level, and restoring transparency and accountability in the power sector.
A hike in gas and electricity price will result in increasing production costs of the product. They claim that due to the Russia-Ukraine war, prices of all essential commodities, including food, have risen worldwide. In this situation, if the price of gas and electricity increases, the inflation will shoot up to an unbearable level which will further intensify the crisis of public life.
This concern was resonated by business leaders at a roundtable discussion on 'Economic Challenges and Budget' organised by Prothom Alo on the same day. Economists and traders there have expressed concern over inflation, citing that reining in the inflation should be the top priority in the next budget. The scope of social safety net programmes also needs to be widened so that the low income people do not feel the pressure of inflation.
Corona and Ukraine-Russia war situations have pushed up the price of raw materials, shipping and transportation costs in the international market. It is also affecting our economy. The business leaders fear if the price of gas and electricity goes up amid the impact of corona, the industrial sector will face serious problems. Businesses will close down.
The recommendations made by the president of FBCCI for the development of the energy and power sector include complete reforms in the overall management of the energy and power sector, urgent removal of irregularities, waste, illegal connections and closure of inefficient power plants.
No matter how much government policymakers assure us that 'everything is fine', the country's economy is facing multiple crises. As the value of dollar rises, the prices of imported goods will naturally rise. On the other hand, although there is some improvement in export earnings, remittance inflow is declining. Meanwhile, untimely floods in the Sylhet region also have brought in fresh woes. When a large area of Sunamganj was inundated by the floods a month ago, the farmers were forced to harvest unripened paddy.
This government has achieved a lot of success in the power sector. But traders agree with experts that the energy sector has become import-dependent rather than self-sufficient. Business leaders have also questioned the rationale for delaying the large power projects and keeping the rental and quick rental power plants running. Many feel that the delay in launching the big power plants is aimed at benefiting the business of rental and quick rental plants. The people must have the right to ask the ministry of energy for an explanation.
We also think that the concerns and demands of FBCCI are reasonable. When the prices of almost all food items are going up, we have to look for other sources of revenue rather than increasing the price of gas and electricity. If necessary, spending in unproductive sectors should be further reduced. The government will also have to seriously consider whether it is sufficient to impose a ban on the travel of government officials abroad or to impose restrictions on the import of luxury goods.