Persistent Inflation Pushes Up To 10 Million Below Poverty Line In Bangladesh: Report

(MENAFN- IANS) New Delhi, Oct 22 (IANS) Persistent inflation has pushed 8 million to 10 million people in Bangladesh below the poverty line, a new report has said, citing Prime Minister's adviser on finance and planning Rashed Al Mahmud Titumir.

The report from the Cyprus-based publication Traders Union said strain on household finances deepened as their savings are getting depleted and they are taking on debt to cope with rising costs.

Titumir told a meeting that the government inherited a fragile economy marked by high inflation, rising unemployment and weak private‐sector investment, adding that the country is passing through a critical transition.

The weak purchasing power of low- and middle-income groups is also compounding unemployment and energy insecurity, the report noted.

He said youth unemployment, particularly among the educated, is a major concern and that recent Middle East tensions have further raised fuel prices and economic pressure.

Titumir alleged that cronyism and patronage weakened the economic system adding that nearly $40 billion is required to repair the banking sector. Further, he stressed the need to overhaul education, build a skilled workforce to address joblessness, saying the government plans to allocate 2 per cent of GDP to education.

Citing a World Bank report, the advisor highlighted the government's family‐card and farmer‐card initiatives as measures recognised by the IMF and World Bank to help reduce poverty.

He also flagged misleading information and distorted gross domestic product data circulating on social media.

Titumir said the previous administration failed to "expand solar energy, explore domestic gas resources and ensure sustainable energy security, arguing that stronger energy policy is necessary to attract investment and create jobs."

He highlighted Bangladesh's need to develop renewable energy and reduce dependence on imported fuel.

Nearly 47.42 per cent of households across Bangladesh, majority in rural areas, have fallen into debt as living expenses skyrocketed amidst stagnant earnings, another report had said, using data from a special survey by the Bangladesh Bureau of Statistics (BBS).

-IANS

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