Dwindling economy

The overall price situation in the country is steadily deteriorating despite some steps taken and the prospect of a very good IRRI-Boro crop. The government decision to revise upward oil and gas prices and introduce the new pay scale for public employees and pay arrears from Jan. 1, 2005 will definitely add fuel to the fire, thus raising the inflation rate from about 7 per cent to around 10 per cent. In fair, according to neutral estimates the rate has already reached the double-digit level. The coming budget with a pro-people (alias pro-election!) bias will only deteriorate the situation. Sale and closure of a number of mills and factories resulting into decline in overall input will also act as a negative factor. It may be noted that all the pleasant stories we know about new foreign investments are only registration data or proposals and nobody knows when these will materialise, uncertainties are likely to deepen following the daily news of border clashes with BSF.

The worst economic scenario is now being reflected by the virtual collapse of the share market with little official support or intervention. The DSE and CSE indices fall almost five days a week, going up very little only once in seven days. This has a lot to do with confidence in the economy governance and overall economic management but the authorities do not seem to take it seriously.

Let's hope sense will prevail and necessary steps will be taken and with immediate effect!