A serious crisis is waiting for the Bangladeshi economy unless the political situation improves as the economy is not proceeding so smoothly as desired since the caretaker government took office late in October, economists and bankers predicted.

They said in 20 days after the caretaker administration took over on Oct. 29 headed by Professor Iajuddin Ahmed, who is also the president of the country, an unstable economic situation is being noticed.

They said revenue earnings fell far short of the targeted level whereas the administration is running taking loan from banks far more than any administration in the past.

Meanwhile, the price of the U.S. dollar compared to Bangladesh currency taka is going up almost everyday and importers are facing problems in opening L/C (letter of credit) and this situation was promoted by the non-stop blockade by former main opposition Awami League (AL) that enforced the shutdown for three days starting on Oct. 29 and again for four days from Nov. 12.

The AL-led 14-party leftist political combine enforced the blockade to force caretaker head and president Iajuddin Ahmed to reconstitute the country's Election Commission removing its head MA Aziz for holding a credible election in January next.

The combine has threatened to shut the country again from Monday unless Aziz is sacked and the president shows his neutrality.

In Bangladesh a neutral non-party caretaker government supervises the general elections in line with the constitution, Iajuddin Ahmed became chief adviser of the caretaker government as AL and former ruling BNP failed to search a consensus on the person for the post.

The economists and bankers said the export-import trade of the country has suffered a serious loss due to the blockade as there was no traffic movement in the country.

Abu Ahmed, who teaches economics in the Dhaka University, told Xinhua Saturday the caretaker government borrowed 6 billion taka ( about 85.71 million U.S. dollars) in 20 days and that this was due to sharp fall of revenue earnings.

The revenue earnings growth in the four months (July-October) was targeted at 21 percent while the growth recorded only 9 percent during the period.

National Revenue Board (NBR) sources said the revenue growth further fell in November following the political turmoil.

Moreover, they said, since the country's premier sea port in southeastern Chittagong and all the land port were closed, the import duty also saw a sharp fall.

Meanwhile, the price of the U.S. dollar is jumping almost everyday since the caretaker administration took office and on Thursday one dollar was sold for 74 taka.

Abu Ahmed said if the dollar price rises unusually, the central bank can take effective measures.

A source in Bangladesh Bank, the central bank, said Bangladeshi immigrants had remitted 220 million U.S. dollars in two weeks. The source who asked not to be named said the inflow of remittance might further fall in November, aggravating the crisis.

Meanwhile, exporters said the export items of a huge quantity piled up at factories following the blockade. The exporters were very concerned because of the threat of the 14-party combine to launch a new round of blockade from Monday.

Mir Nasir Hossain, president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), the apex body of the business community, said they cannot run their factories smoothly since the end of October.

Moreover, the sea port is shut for which they suffered a huge loss. If the situation continues further, the economy of Bangladesh will be crippled, he added.

Source: Xinhua