The New Nation - Internet Edition

Last year's deficit in food due to flood and cyclone and as its resultant factor high rise in import has not only brought suffering for the people but also has cast a long shadow on the economy whose bite will have to be endured for quite a length of time.

Due to good harvest of Irri-Boro the immediate suffering of the middle and poorer section of the people has been alleviated. But the economic managers soon after the cooling down of the surge when sat for taking a balance sheet has now discovered that the current account situation is not in a good shape.

The coffer appears to be almost empty while generally the surplus is 1(one) billion dollars. The term current account is not quite understood by the common man, that it is the fund from which the government meet their day-to-day expenditure and the central bank maintains this fund for and on behalf of the government.

Due to the great topsy turvy in the economy when the current account bowl has been found to be either empty or at its bottom the government has thought of moving for a recourse. We appreciate this alertness and the contemplated move. But regarding this move or for a formula of solution the easier or evasive path shall not bring a happy ending. The government is contemplating to approach the International Monetary Fund (IMF) for a refill of its coffer. For an immediate solution there is no alternative to it. But along with that longer and positive solution must be thought of.

There has always been a deficit in our trade. But in long term count it was moderate-only about 2.3 billion dollars annually. But this year it has been more than doubled ($4.26 billion) for apparent reasons. Further gap is apprehended which may rise to 6 billion dollars in monetary terms.

Utmost care should be taken so that the apprehended gap does not take place. Special efforts need to be put to ready-made garments manufacturing and frozen food sectors and their exports which are the number one and number three items of export respectively.

Equal or more emphasis should be put to manpower export by integrated efforts of the ministries so that the earnings of our nationals from abroad increase at an optimal level. This is not a task of the central bank and it does not depend on its shrewd economic calculations either. Central bank's job begins after the money is earned.

The jerk the economy has recently undergone, and as aftermath it is now shivering, shall not always be of the same type and magnitude. If nature does not befall on us with the past scourge and if we can nurture our agriculture properly the food deficit factor shall wither. This year financing of the import of foodgrains, other food items and petroleum, and their unusual escalation of price in the international market have battered our economy. From July 2007 to March 2008 the country had to pay off export bill of $14.644 billion which is nearly $3 billion excess than the corresponding earlier period. During the ensuing financial year we may not need to pay of import bill on account of food. That is an anticipated positive point. But must we bear in mind that price of fuel and other items including industrial raw materials and spares may further rise. We hence, in taking preparation to face the situation, need to consider this point on a basis of priority.

Finally, one can optimistically note that proper awareness and preparation from well ahead of time can relieve us from danger.