Task force to tackle recession’s
effects by this month
Muhith at last acknowledges pinch of
global downturn
Staff Correspondent

The government will form a taskforce to tackle the adverse effects of the global recession on Bangladesh’s economy, said finance minister Abul Maal Abdul Muhith on Sunday, finally admitting that the country is feeling the pinch of the worldwide financial crisis.
The impacts of the recession are becoming visible. Various sectors — raw jute, jute goods, frozen items, knitwear and woven clothes industries — have been affected,’ he said after a delegation of the Bangladesh Knitwear Manufacturers and Exporters Association called on him at the finance ministry.
When asked about the functioning of the taskforce on the global recession in conformity with the ruling party’s pre-polls pledge, Muhith mentioned that the first meeting of the taskforce — basically a political committee to be led by the custodian of the national exchequer — would be held by the end of this month or early next month.
Currently there is a technical/bureaucratic committee headed by the finance secretary to suggest ways and means to overcome the negative effects of the global financial meltdown.
Clearing the prevalent confusion over the question of devaluation of the taka against the US dollar, Muhith said such a move was unlikely in a floating exchange rate regime.
He also felt that the impact of the recession would be temporary due to reserve fund liquidity in the global economy. ‘So we have nothing to be scared of,’ he assured the media.
The BKMEA’s president, Fazlul Haque, said exports had suffered from negative growth in the first half of the current fiscal year but there are signs of early recovery.
He added that the BKMEA had demanded increase in the cash incentive, instead of devaluation of the taka, to enable exporters to overcome the challenge of the recession.
Muhith assured the businessmen that the government would look into such issues after thoroughly reviewing the situation.