Barrister Asaduzzaman Fuad, General Secretary of the Amar Bangladesh Party (AB Party), has warned that the conflicting stance between the government’s expansionary national budget and Bangladesh Bank’s contractionary monetary policy could push the economy into a deeper crisis. He made the remarks in a statement issued on Thursday in response to the central bank’s newly announced monetary policy.

Fuad said the simultaneous adoption of a debt-dependent budget and a strict monetary policy aimed at controlling inflation reflects serious policy incoherence within the government. He argued that this contradiction would harm ordinary citizens, entrepreneurs, and investors. According to him, the government has failed to address fundamental issues such as reducing production costs, breaking market syndicates, curbing corruption, and strengthening supply chains, which are essential to controlling inflation.

He further stated that inflation in Bangladesh is primarily driven by rising costs and supply shortages, which cannot be solved merely by raising interest rates. Fuad urged the government to acknowledge the real economic situation, ensure easier financing for genuine entrepreneurs, and adopt a coordinated, long-term economic plan to stabilize inflation, boost investment, and reduce living costs.