Finance Adviser on price hike: Alternative market system under active consideration

An alternative marketing channel, promoted by the government, will surface soon as the government is actively mulling over it in view of failure of the prevailing free market mechanism to ensure price-comfort of people.

Disclosing the government plan yesterday Finance Adviser Dr AB Mirza Azizul Islam said that “we are thinking whether the alternative marketing channel will be made by public sector or private sector. If any private institution or NGO takes the enterprise, we are ready to help it.”

The Finance Adiviser was addressing a post-budget discussion meeting organized by Economic Reporters Forum (ERF) at CIRDAP auditorium in the city. ERF president Jakaria Kajal chaired the discussion meeting.

Dr Aziz said: “Free market economy doesn’t mean free for all. Regulatory arrangement for the market economy is necessary and we are going to that direction.”
But, he said, “the regulation can be done either with mandatory base principle or with market base Principle. There will be adverse impact on the market if the law-enforcing agencies are deployed to bring down the prices.”

He, however, hinted that Trading Corporation of Bangladesh (TCB) would not be their choice as there is lack of skill in addition to weakness. Admitting the Planning Commission tradition to delay in approving a project, he said the government is actively considering to reducing the approval time.

The post-budget discussion had a mini-parliamentarian mood, as its organizer invited senior political leaders and veteran ex-parliamentarians along with the Finance Adviser facilitating constructive criticism and debate on the budget.

Dr Aziz said that he would try to accommodate the suggestions made by political leaders and different quarters into the proposed budget for 2007-08 fiscal.

“I have my own opinion and logical point of view on the proposed budgetary measures. But I would like to consider the different opinions made by you with due respect and will try to bring possible changes accordingly,” the adviser told the veteran politicians of the country at the discussion.

“We have received a total of 1808 suggestions through internet, media and post. Some necessary changes will must be brought on the basis of these suggestions,” said Dr Aziz, who presented the national budget through radio-TV in absence of parliament and swinging of politics in state of emergency.

The politicians suggested introducing an alternative market mechanism to maintain market stability and criticized the budget for introducing import duty on capital machinery and raw materials of industry, computer parts, foreign assistance dependency and inflation-prone fiscal measures.

Awami League Presidium Member and former Commerce and Industries Minister Tofail Ahmed said that the caretaker government should protect the local industries and withdraw the proposed duty on raw materials and capital machinery. “Otherwise the country will again turn into a foreign market,” he feared.

Former Agriculture Minister and BNP vice-chairman MK Anwar said, “the problem of price inflation was not properly addressed in the budget. Market price and electricity sector should draw more attention.”

Workers’ Party president and former lawmaker Rashed Khan Menon suggested reviving the jute sector. He termed the proposed budget as traditional one and criticized the government for over praising the World Bank in the budget speech. He emphasized re-introducing the rationing system and involving TCB to control price-rise.

Jatiya Party leader and an ex-lawmaker GM Kader suggested more budgetary support to the farmers helping them to cope with their production cost.

Former Awami League lawmakers Col (retd) Faruq Khan and Dr Abdur Razzak, former BNP lawmaker Zahir Uddin Swapan and assistant secretary general of Jamaat-e-Islami Muhammad Kamaruzzaman also took part in the discussion.