The government has completed one month in office. One month is by no means sufficient to evaluate a government’s performance. It usually takes more than a month just to fully understand its activities.
Still, we have seen that within this first month, the current government has initiated several measures in line with its electoral commitments. These include the family card programme, canal excavation initiatives, and efforts to waive interest for farmers.
The government faces multiple challenges. Even so, based on the initiatives taken within this one month, it can be said that the start is not bad. Among these programmes, the canal excavation initiative is particularly promising. If implemented properly, I believe it could yield significant benefits for the agricultural sector in the future.
Irrigation has now become a major challenge in farming. Many agricultural regions are facing a shortage of groundwater, while rivers have dried up. In such a situation, restoring water flow through canal excavation could open up new possibilities for agriculture.
The family card initiative is also commendable. However, given the current state of the overall economy, I am concerned about how such a large amount of funding will be arranged if the programme is fully implemented.
Even if the funds can be arranged, I am uncertain whether the economy has the capacity to sustain such high levels of expenditure. Therefore, I believe that to continue this programme, the government must coordinate various social safety net projects to prevent waste.
At the same time, inefficiencies and waste in other sectors of public expenditure must also be addressed. Otherwise, the family card programme could place additional pressure on the economy.
The Middle East crisis has now emerged as a major challenge for the new government. If this crisis persists, it will impact import-export trade, foreign transactions, and remittance inflows.
We are already witnessing signs of a fuel crisis due to the situation in the Middle East. However, from the beginning, the government has shown considerable efforts to address this issue.
It has taken necessary steps in a timely manner, which is certainly a positive aspect. We also see that the government is attentive to both the export sector and remittances.
Relevant officials and departments have maintained close communication with entrepreneurs, business leaders, and stakeholders. This indicates that the government is aware of potential risks and is taking them seriously.
As exporters, we are observing that due to the Middle East crisis, purchase orders from foreign buyers have already declined. Buyers are now adopting a wait-and-see approach.
At the same time, prices of various chemicals used in export industries have risen by 10 to 20 per cent in the global market, while export prices have not increased.
If the prices of other raw materials continue to rise in this way, the export sector will inevitably feel the strain. The government must begin considering strategies now to manage this impact.
Even before completing a full month in office, the Eid celebration is at the door. Typically, we see various problems arise before Eid regarding workers’ wages and bonuses, especially in the garment sector. However, so far this year, we have not observed any major issues.
Soon after assuming office, the government arranged additional loans for garment factory owners. It also released a significant portion of long-pending cash incentives owed by the government.
As a result, owners in the garment and export sectors have received substantial funds, which has helped them pay workers’ wages and bonuses.
In conclusion, my advice to the government is to closely monitor the Middle East situation. It should consult economists, experts, and stakeholders and take advance preparations to ensure that the already fragile economy does not face further shocks.
* AK Azad: Former President of the FBCCI and Managing Director of Ha-Meem Group.