The Chief Advisor's Press Secretary, Shafiqul Alam, has strongly defended the recent hike in duties and taxes on more than a hundred goods and services, asserting that the move is crucial for stabilizing the fragile economy inherited from the previous administration.

Alam emphasised that concerns over the government's popularity are secondary; instead, the focus remains on securing the nation's financial health.

He expressed confidence that these measures would lead to improved financial stability, a stable exchange rate for the taka against the dollar, and better control over inflation. Amid high inflation, he said the interim government raised taxes, duties, and VAT on more than 100 goods and services, including essential items such as medicines, LPG, and mobile SIM cards.

At a regular press conference at the Chief Advisor's office at Dhaka’s Foreign Service Academy on Sunday, he explained to journalists the plan to increase VAT, taxes, and gas prices.

Many had raised concerns about the potential impact of the VAT increase on citizens' livelihoods and its effect on new investments. Press Secretary Shafiqul Alam stated, "Macroeconomic stability is essential."

He emphasised that to achieve this, the tax-to-GDP ratio must be increased, as the current model is no longer sustainable. "The revenue shortfall over the past five months has reached Tk 420 billion," he noted. "We have assembled the best team of economists and financial advisors to revise our plans."

Regarding the gas price hike, Alam explained, "Fuel constitutes a very small part of factory costs. Its increase aligns with global market trends. This adjustment will enhance the competitiveness of Bangladeshi factories on the global stage."

Addressing concerns about the potential public backlash over VAT increases, the press secretary said, "The government is primarily focused on ensuring the country's financial health remains robust." He urged journalists to help explain these decisions to the public, emphasizing the importance of understanding their long-term benefits.

Alam underscored the importance of addressing the realities of the fragile economy rather than focusing on populist measures. "It’s difficult to pinpoint where the waste has occurred," he said. "For example, a railway line was constructed, but it only operates one train per day. Similarly, the tunnel built was unnecessary, yet millions are being spent on it daily."

He further explained the connection between financial stability and the national currency, stating, "Improved financial health helps control inflation."

Alam also clarified the role of loans from the International Monetary Fund (IMF): "IMF loans are not the solution to everything, but maintaining a positive relationship with the IMF provides expert guidance on achieving macroeconomic stability. This is globally recognized." He added that IMF support also facilitates assistance from organizations like the World Bank, ADB, and JICA, which plays a crucial role in attracting private investment.

"Foreign companies carefully review IMF reports before investing. A positive review from the IMF ensures a more stable exchange market."

Alam emphasised that the decision to increase duties, taxes, and VAT was made by experienced economists. "For gas, the focus is on ensuring a steady supply to producers. Many are looking to expand their factories due to a surge in orders. More details on this will be provided by the Ministry of Power, Energy, and Mineral Resources."

He emphasized that to achieve this, the tax-to-GDP ratio must be increased, as the current model is no longer sustainable. "The revenue shortfall over the past five months has reached Tk 420 billion," he noted. "We have assembled the best team of economists and financial advisors to revise our plans."

Regarding the gas price hike, Alam explained, "Fuel constitutes a very small part of factory costs. Its increase aligns with global market trends. This adjustment will enhance the competitiveness of Bangladeshi factories on the global stage."

Addressing concerns about the potential public backlash over VAT increases, the press secretary said, "The government is primarily focused on ensuring the country's financial health remains robust." He urged journalists to help explain these decisions to the public, emphasizing the importance of understanding their long-term benefits.

Alam underscored the importance of addressing the realities of the fragile economy rather than focusing on populist measures. "It’s difficult to pinpoint where the waste has occurred," he said. "For example, a railway line was constructed, but it only operates one train per day. Similarly, the tunnel built was unnecessary, yet millions are being spent on it daily."

He further explained the connection between financial stability and the national currency, stating, "Improved financial health helps control inflation."

Alam also clarified the role of loans from the International Monetary Fund (IMF): "IMF loans are not the solution to everything, but maintaining a positive relationship with the IMF provides expert guidance on achieving macroeconomic stability. This is globally recognized." He added that IMF support also facilitates assistance from organizations like the World Bank, ADB, and JICA, which plays a crucial role in attracting private investment.

"Foreign companies carefully review IMF reports before investing. A positive review from the IMF ensures a more stable exchange market."

Alam emphasized that the decision to increase duties, taxes, and VAT was made by experienced economists. "For gas, the focus is on ensuring a steady supply to producers. Many are looking to expand their factories due to a surge in orders. More details on this will be provided by the Ministry of Power, Energy, and Mineral Resources."

 "Macroeconomic stability is essential." He emphasized that to achieve this, the tax-to-GDP ratio must be increased, as the current model is no longer sustainable. "The revenue shortfall over the past five months has reached Tk 420 billion," he noted. "We have assembled the best team of economists and financial advisors to revise our plans."

Regarding the gas price hike, Alam explained,  "Fuel constitutes a very small part of factory costs. Its increase aligns with global market trends. This adjustment will enhance the competitiveness of Bangladeshi factories on the global stage."

He urged journalists to help explain these decisions to the public, emphasizing the importance of understanding their long-term benefits. Macroeconomic Stability Alam underscored the importance of addressing the realities of the fragile economy rather than focusing on populist measures. "It’s difficult to pinpoint where the waste has occurred," he said.

"For example, a railway line was constructed, but it only operates one train per day. Similarly, the tunnel built was unnecessary, yet millions are being spent on it daily." He further explained the connection between financial stability and the national currency, stating, "Improved financial health helps control inflation." Alam also clarified the role of loans from the International Monetary Fund (IMF):

"IMF loans are not the solution to everything, but maintaining a positive relationship with the IMF provides expert guidance on achieving macroeconomic stability. This is globally recognized."

He added that IMF support also facilitates assistance from organizations like the World Bank, ADB, and JICA, which plays a crucial role in attracting private investment. "Foreign companies carefully review IMF reports before investing. A positive review from the IMF ensures a more stable exchange market." Alam emphasised that the decision to increase duties, taxes, and VAT was made by experienced economists.

"For gas, the focus is on ensuring a steady supply to producers. Many are looking to expand their factories due to a surge in orders. More details on this will be provided by the Ministry of Power, Energy, and Mineral Resources."