The Centre for Policy Dialogue (CPD) has warned that proposed hikes in gas prices could worsen inflation, particularly impacting non-food items. The warning comes as consumer prices have remained above 9% for the past 24 months, eroding purchasing power, especially for low-income households.
Last month, the Bangladesh Energy Regulatory Commission (BERC) proposed raising gas prices for new industries to Tk 75.72 per cubic meter, up from the current Tk 30, sparking widespread opposition.
CPD’s Executive Director, Fahmida Khatun, cautioned that prolonged high inflation over the last three years has caused significant hardship, and further price hikes could aggravate the situation. She also noted that global economic uncertainties, including the tariff war, could add to inflationary pressures.
The CPD expressed concern that the Bangladesh Bank’s target of keeping inflation within 7-8% by June 2025 may be difficult to achieve if these dynamics persist.
During a media briefing, the CPD also shared recommendations for the fiscal year (FY) 2025-26, emphasizing that the upcoming national budget is crucial, as it is being formulated by the interim government amid a challenging economic environment. The country is facing high inflation, slow revenue collection, sluggish budget implementation, a banking liquidity crisis, and declining foreign exchange reserves.
The CPD stressed that restoring macroeconomic stability should be the top priority for policymakers, with targeted interventions needed to control inflation, stabilize the exchange rate, and ensure fiscal discipline.
Khatun urged that the budget should focus on protecting vulnerable groups and supporting economic recovery. She added that the FY26 budget, likely the only one from the current interim government, presents a unique opportunity to move beyond traditional approaches, implement corrective measures, and lay the foundation for long-term reforms in resource mobilization and public finance management.
A key first step, according to CPD, would be developing a credible and well-structured fiscal framework.
