Price of electricity
The Finance Minister Mr. A.M.A. Muhith has hinted that price of electricity will be hiked. This has created panic in the industrial sector. The textile sector is already hard hit due to price hike of yarn in the recent months.
The spinners have increased the prices of their products for gas rationing and load-shedding.
The RMG has already started importing fabrics of both shell and pocketing because the prices of locally manufactured fabrics have increased. The price increase of electricity and gas will add fuel to the fire. I heard that one of the country's biggest composite textile industries has been closed down recently due to loss of price competitiveness with imported fabrics.
Sitting out of the country, we do not really visualise the near affects of price hike, but can imagine, if really the FM has seriously meant it, I am sure the textile sector which reportedly earns 80% of country's forex will soon earn nothing and our RMG and Knit Wear factories will have to close down. I have some friends and that is why I could apprehend this fall from hearing from them.
The FM has cited examples of other countries' price levels. While he was talking he must have forgotten the imported cotton, load shedding and gas rationing. He must have also forgotten the bank interest in Bangladesh. Our so-called cheap labour services are eaten by those sheddings road jams. How can a manufacturer in Bangladesh compete with other countries' manufacturers who enjoy the good services of above infrastructure, although they pay a bit extra to their labourers than ours?
The people have started talking that this government is not a business friendly government.
Sudden increase in prices of gas and electricity, while the people are already fed up with load-shedding, will only bolster their belief. We are not economists but as a commoner, I am sure the step will bring slide in popularity of the present government.
May be the Hon'ble Finance Minister has hinted it keeping in mind the implementation of his recently passed Bangladesh's ever biggest budget. Where will he collect all that money from if he does not allow the taxpayers to earn and pay?
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