Monday, 8 August, 2022
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Plan properly to face challenges

Plan properly to face challenges

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The current surge of price hike of almost every daily necessary commodity has been standing the toughest challenge for the fixed-income and poor people to survive since managing two square meals have become really a difficult job for many of them. From import-dependent products to local produce, the price of everything is souring up. The current situation is actually not only generating problems at the individual level but also the national level. Therefore, working out some ways immediately is the only way to keep the national economy vibrant. However, the government measures taken to tackle the current economic crises seem inadequate. So, effective and innovative plans should be taken to tackle the situation.

According to experts, import restrictions, austerity measures, power rationing, suspending implementation of less priority projects aimed at checking macroeconomic pressure turned complicated due to the Russia-Ukraine war. Therefore, to overcome the situation there is no alternative to suitable reforms for higher revenue generation, export diversification, reducing inequality, curbing bad loans, checking capital flight and ensuring good governance for restoring macroeconomic stability.

To recover from foreign exchange deficit the government must focus on manpower export market diversification and skilled manpower export as incentive is not enough to increase inflow of remittance. On the other hand, dollar selling by the central bank is not a solution to foreign exchange crisis. Cautionary measures on luxury goods import and limit cut to keep money in the Nostro Account is needed to overcome the crisis. Moreover, to conquer the power shortage-related problems, investment in exploring natural gas and coal should be increased as we have become very much dependent on oil-based power plants, which is creating a risk for the supply and prices of energy products.    

The government have to be careful in consideration of options so that a majority of people could reap benefits amid the current crisis which might linger over the end. The crisis facing the world is not short-term in nature and it will not be easy to get rid of the crisis soon. So, effective and innovative short-, medium- and long-term action plans are obligatory.