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Domino effect of chaos in Sri Lanka-Pakistan will also be on Bangladesh?
- 12:37 PM August 9, 2022
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Abhishek Tiwari | Edited by: Samarth Saraswat
Aug 09, 2022 | 5:59 PM
When the strength on any one object affects the surrounding things, then that process is called Domino Effect. Is the Domino Effect affected by countries in the Indian subcontinent too?. The economic condition of 4 countries of the Indian subcontinent- Sri Lanka, Pakistan, Bangladesh and Nepal is not very good. Anarchy spread due to the economic crisis in Sri Lanka. People took to the streets and people fiercely erupted on the government imrats. The condition of Pakistan is not hidden from anyone, which is buried under the debt of China and internal institutions. Now in such a situation, the question is whether the chaos of chaos in Sri Lanka will also be on Bangladesh and Bangladesh, facing tremendous inflation, will also have situations like Sri Lanka?
Bangladesh broke down from Pakistan to become a new country in 1971 . Facing all the troubles, Bangladesh became the identity of a better democratic country in the 21st century. Fertile land and trading ports strengthened the economy of Bangladesh. Due to the work force, Bangladesh's GDP reached a good level. But the situation changed over time. Bangladesh, who has become very rich due to jute and textile at one time, is getting caught in economic crisis due to some mistakes.
Bangladesh has seen a tremendous bounce in inflation in the past. According to the report of Bangladesh Bureau of Statics, inflation in Bangladesh increased to 7.56 percent in 2022, which broke the records of the last 9 years. Due to this, the prices of daily use objects increased. 18.54 percent of the population of Bangladesh is below the poverty line, which is having a tremendous impact of increasing inflation. Along with this, the lower middle class is also in its grip. Experts believe that there is resentment among people due to inflation, whose effect can be seen on the roads. There is resentment among people after the rise in oil prices and people have taken to the streets.
Any country depends on its deposited foreign currency to buy products from the world. According to the data of July 2022, Bangladesh's Forex Riserv has been lifted at $ 39 billion. Which can be used to repay the import bill of 5 months. If it is not corrected in the coming time, then more loans may have to be taken, due to which inflation will increase further. The increasing difference between export and import bills is also responsible for Bangladesh's poor condition. 85 percent of the export amount comes from textile and clothes exports. Due to Corona, it has had a lot of impact on it. At the same time, Bangladesh is dependent on other countries for cotton, machines and crude oil. After independence, Bangladesh did not pay attention to other areas except the textile industry. As of March 2022, Bangladesh's trade deficit was $ 18 billion while the current financial account deficit was $ 10 billion.
Bangladesh is still completely dependent on crude oil for energy. In the coming 10 years, Bangladesh's dependence on Fosil sources like coal is going to double. It is clear that this will reduce power or a tremendous rise in prices. In both circumstances, its bright effect on the industry will increase. Bangladesh can be black out at any time due to the rise in the prices of Fosil fuel in the international market.
In August 2017, the price of one dollar was 78 Bangladeshi Taka which fell to 94 strips in August 2022. The weakening of the international market will make Taka import more expensive, due to which both inflation and debt will increase. Bangladesh has reduced money sources, due to which foreign debt increased. The situation in Sri Lanka was also like this. But Sri Lanka used the debt not on infrastructure and for Fribes, which later became expensive for Sri Lanka. The condition is similar in Bangladesh too. Bangladesh's foreign debt increased by 24 per cent to $ 90.79 billion in 2021 as compared to 2020.Read more: Tejashwi, Nitish and Lalan Singh reached Raj Bhavan in the same vehicle, claimed to form government